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Load Impact Evaluation of SDG&E’s Default Residential PTR Program Effects of Estimation with Control Group Steve Braithwait Christensen Associates Energy Consulting 2014 IEPEC - Berlin September 2014 September 2014 1

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Page 1: Load Impact Evaluation of SDG&E’s · September 2014 3 Features of SDG&E PTR in 2012 SDG&E automatically enrolled all eligible residential customers (1.2 million) in peak-time rebate

Load Impact Evaluation of SDG&E’s Default Residential PTR Program –Effects of Estimation with Control

Group

Steve Braithwait

Christensen Associates Energy Consulting

2014 IEPEC - Berlin

September 2014

September 2014 1

Page 2: Load Impact Evaluation of SDG&E’s · September 2014 3 Features of SDG&E PTR in 2012 SDG&E automatically enrolled all eligible residential customers (1.2 million) in peak-time rebate

September 2014 2

Overview

Evaluating demand response (DR) programs differs from EE evaluation Limited numbers of events (e.g., 6 – 10)

Allows treatment-only analysis using hourly data on non-event days to estimate counterfactual reference loads for measuring load reductions

Can also use treatment/control group approach– Experimental if part of design

– Quasi-experimental matching if after the fact

Page 3: Load Impact Evaluation of SDG&E’s · September 2014 3 Features of SDG&E PTR in 2012 SDG&E automatically enrolled all eligible residential customers (1.2 million) in peak-time rebate

September 2014 3

Features of SDG&E PTR in 2012

SDG&E automatically enrolled all eligible residential customers (1.2 million) in peak-time rebate (PTR)

Bill credits for reducing usage below baseline levelduring 11 a.m. to 6 p.m. on event days

Customers encouraged to sign up to receive event notification, or Alerts (email/text)

Seven events called, including two Saturdays

Page 4: Load Impact Evaluation of SDG&E’s · September 2014 3 Features of SDG&E PTR in 2012 SDG&E automatically enrolled all eligible residential customers (1.2 million) in peak-time rebate

September 2014 4

Target Population and Analysis Samples

Population

Analysis

Samples

Summer Saver (excluded) 23,998 -

SDEC (excluding SS) 4,633 4,631

Opt-in Alert 41,243 13,745

Remaining Population 1,154,144 29,692

Total (Excluding SS) 1,200,020 48,068

PTR Subgroup

Page 5: Load Impact Evaluation of SDG&E’s · September 2014 3 Features of SDG&E PTR in 2012 SDG&E automatically enrolled all eligible residential customers (1.2 million) in peak-time rebate

September 2014 5

Original Study Methodology

Designed & selected stratified random samples from: 41,000 Opt-in alert and 1.1 million non-alert population

Customer-level regression analysis to hourly Smart Meter data (i.e., treatment-only approach): 14,000 Opt-in Alert; 30,000 non-alert population

Page 6: Load Impact Evaluation of SDG&E’s · September 2014 3 Features of SDG&E PTR in 2012 SDG&E automatically enrolled all eligible residential customers (1.2 million) in peak-time rebate

September 2014 6

Key Findings from Original Study

Opt-in Alert customers reduced usage by small but statistically significant amounts (5%)

No significant load impacts for non-notified(non-Alert) customers

Estimated load impacts for Opt-in Alert varied considerably across events

Page 7: Load Impact Evaluation of SDG&E’s · September 2014 3 Features of SDG&E PTR in 2012 SDG&E automatically enrolled all eligible residential customers (1.2 million) in peak-time rebate

September 2014 7

Estimated % Load Impacts, by Event: Opt-in Alert – Coastal & Inland

Page 8: Load Impact Evaluation of SDG&E’s · September 2014 3 Features of SDG&E PTR in 2012 SDG&E automatically enrolled all eligible residential customers (1.2 million) in peak-time rebate

Objectives of Study Update

SDG&E interested in testing whether a treatment and control group approach would improve impact estimation

Leveraged on two factors: Finding of no response for non-alert customers

Availability of an existing sample from the non-alert population

September 2014 8

Page 9: Load Impact Evaluation of SDG&E’s · September 2014 3 Features of SDG&E PTR in 2012 SDG&E automatically enrolled all eligible residential customers (1.2 million) in peak-time rebate

Approach in Study Update

Select a matched control group from non-alert sample Match each Opt-in Alert customer to most-similar non-

alert customer

Based on ZIP code and previous-year usage patterns

Apply fixed-effects regression to treatment and control group customers Daily observations on event-window usage

Difference-in-differences approach: [Control – Treatment usage on event days] – [Control – Treatment usage on non-event days]

September 2014 9

Page 10: Load Impact Evaluation of SDG&E’s · September 2014 3 Features of SDG&E PTR in 2012 SDG&E automatically enrolled all eligible residential customers (1.2 million) in peak-time rebate

Estimated % Load Impacts for AverageEvent, by Analysis Approach

September 2014 10

Page 11: Load Impact Evaluation of SDG&E’s · September 2014 3 Features of SDG&E PTR in 2012 SDG&E automatically enrolled all eligible residential customers (1.2 million) in peak-time rebate

Estimated % Load Impacts by Eventby Climate Zone & Approach

September 2014 11

Page 12: Load Impact Evaluation of SDG&E’s · September 2014 3 Features of SDG&E PTR in 2012 SDG&E automatically enrolled all eligible residential customers (1.2 million) in peak-time rebate

Difference Between Control and Treatment Loads – August 14 Event

September 2014 12

Page 13: Load Impact Evaluation of SDG&E’s · September 2014 3 Features of SDG&E PTR in 2012 SDG&E automatically enrolled all eligible residential customers (1.2 million) in peak-time rebate

September 2014 13

Conclusions

Treatment/control approach produced larger & more consistent load impact estimates Generic finding, or due to weather issues in SD?

Source of control group for default PTR?

As of 2014, CA utilities restricting bill credits to customers who request event notification Largely due to baseline inaccuracy

Implies future source of control group customers

Page 14: Load Impact Evaluation of SDG&E’s · September 2014 3 Features of SDG&E PTR in 2012 SDG&E automatically enrolled all eligible residential customers (1.2 million) in peak-time rebate

September 2014 14

Questions?

Contact – Steve Braithwait, Christensen Associates Energy ConsultingMadison, Wisconsin [email protected] 608-231-2266