National Town Meeting on National Town Meeting on Demand ResponseDemand Response

Demand ResponseDemand ResponsePolicy OverviewPolicy Overview

Dan DelureyDan DelureyDemand Response Coordinating CommitteeDemand Response Coordinating Committee

June 2, 2008June 2, 2008

Demand – An Evolutionary PerspectiveDemand – An Evolutionary Perspective

ConservationConservation Running out of oilRunning out of oil

Load ManagementLoad Management Curtailment and ControlCurtailment and Control

Efficiency – Phase 1Efficiency – Phase 1 Get the same benefit with less energyGet the same benefit with less energy

Demand Side ManagementDemand Side Management Utility-oriented; IRPUtility-oriented; IRP

Efficiency – Phase 2Efficiency – Phase 2 Beyond the end useBeyond the end use

Efficiency Phase 3Efficiency Phase 3 The Smart Age based on Demand ResponseThe Smart Age based on Demand Response Dynamic EfficiencyDynamic Efficiency Based on communications, information and pricesBased on communications, information and prices Systems approach: Smart Grid, Smart Homes, Smart AppliancesSystems approach: Smart Grid, Smart Homes, Smart Appliances

Demand Response Policy – A HistoryDemand Response Policy – A History PURPA 1978PURPA 1978 Load ControlLoad Control RestructuringRestructuring FERC directives to ISOs/RTOsFERC directives to ISOs/RTOs RTP for large customersRTP for large customers Competitive meteringCompetitive metering Default service pricingDefault service pricing System benefit fundingSystem benefit funding Mega-mandates (CA, Ontario)Mega-mandates (CA, Ontario) Portfolio standardsPortfolio standards EPACT 2005EPACT 2005 FERC/State ActionFERC/State Action Energy Independence Act 2007Energy Independence Act 2007

EPACT 2005 – Smart MeteringEPACT 2005 – Smart Metering

More than the name impliedMore than the name implied Four main provisions,Four main provisions,

• It is the policy of the U.S……..It is the policy of the U.S……..• DOE Report to CongressDOE Report to Congress• FERC Report to CongressFERC Report to Congress• New PURPA RequirementNew PURPA Requirement

States and other jurisdictional bodies must investigate States and other jurisdictional bodies must investigate whether or not to provide time-based pricing and whether or not to provide time-based pricing and advanced meteringadvanced metering

Flexible complianceFlexible compliance All Sectors coveredAll Sectors covered Decide by August 2007Decide by August 2007

EPACT 1252 Proceedings EPACT 1252 Proceedings Status SummaryStatus Summary

States with Open EPACT 1252 Proceedings States with Open EPACT 1252 Proceedings 2727

States with Closed EPACT 1252 Proceedings States with Closed EPACT 1252 Proceedings 1212

States Deciding to Adopt EPACT 1252 States Deciding to Adopt EPACT 1252 22

States Deciding Not to Adopt EPACT 1252 States Deciding Not to Adopt EPACT 1252 1111

States Deferring Decision to Adopt EPACT 1252 States Deferring Decision to Adopt EPACT 1252 4 4

State Decisions on EPACT 1252State Decisions on EPACT 1252

States States Deciding to Deciding to AdoptAdopt

States States Deciding Not Deciding Not to Adoptto Adopt

States States Deferring Deferring DecisionDecision

OhioOhioNew HampshireNew Hampshire

DelawareDelawareFloridaFloridaIdahoIdahoIowa Iowa KentuckyKentuckyNew York New York TennesseeTennesseeUtahUtahVermontVermontVirginiaVirginiaWest VirginiaWest Virginia

Colorado Colorado MarylandMarylandMontanaMontana

States with Open States with Open EPACT 1252 Proceedings EPACT 1252 Proceedings

Alabama Alabama Alaska Alaska Arizona Arizona Arkansas Arkansas ColoradoColorado Delaware Delaware District of Columbia District of Columbia Georgia Georgia Illinois Illinois Indiana Indiana Kansas Kansas Louisiana Louisiana MarylandMaryland MichiganMichigan

MinnesotaMinnesota Missouri Missouri North Carolina North Carolina North Dakota North Dakota New Hampshire New Hampshire New Mexico New Mexico OhioOhio Rhode Island Rhode Island South Carolina South Carolina South Dakota South Dakota Texas Texas Washington Washington

WyomingWyoming

States with Closed States with Closed EPACT 1252 ProceedingsEPACT 1252 Proceedings

FloridaFlorida IdahoIdaho Iowa Iowa KentuckyKentucky MontanaMontana NevadaNevada New YorkNew York TennesseeTennessee UtahUtah VermontVermont VirginiaVirginia West VirginiaWest Virginia

EPACT – Seeing the Forest instead of EPACT – Seeing the Forest instead of the Treesthe Trees

Everyone has been not only made aware but Everyone has been not only made aware but educatededucated

DR and AMI high on the NARUC agendaDR and AMI high on the NARUC agenda States that have issued a “technical No” have States that have issued a “technical No” have

made other movesmade other moves Utilities have begun to view things more Utilities have begun to view things more

opportunisticallyopportunistically Other policy moves have been made, including in Other policy moves have been made, including in

the legislaturesthe legislatures A critical foundation of understanding and A critical foundation of understanding and

discussion has been establisheddiscussion has been established

Maryland Maryland

• The Commission has an AMI/DSM Collaborative, whose work includes a July 2007 The Commission has an AMI/DSM Collaborative, whose work includes a July 2007 report on technical standards for smart meters and on deployment of DSMreport on technical standards for smart meters and on deployment of DSM

• The Commission responded by directing, via a September 2007 Order, utilities to file The Commission responded by directing, via a September 2007 Order, utilities to file “comprehensive energy efficiency, conservation and demand reduction plans” that “comprehensive energy efficiency, conservation and demand reduction plans” that include “aggressive” peak-demand reduction proposals.include “aggressive” peak-demand reduction proposals.

• In April 2007, the Commission approved the plans of Pepco, DP&L, and SMECOIn April 2007, the Commission approved the plans of Pepco, DP&L, and SMECO

• In April 2007, The Commission approved BG&E’s AMI pilot and two demand response In April 2007, The Commission approved BG&E’s AMI pilot and two demand response pilotspilots

• In April 2008, Governor O’Malley signed two bills:In April 2008, Governor O’Malley signed two bills:1.1. ““EmPower MD Energy Efficiency Act”: Sets efficiency and peak-demand reduction portfolio EmPower MD Energy Efficiency Act”: Sets efficiency and peak-demand reduction portfolio

standards; mandates utilities to file DR plans; and directs the Commission to consider standards; mandates utilities to file DR plans; and directs the Commission to consider whether smart meters are “are cost–effective in reducing consumption and peak demand of whether smart meters are “are cost–effective in reducing consumption and peak demand of electricity.” electricity.”

EPACT 1252EPACT 1252::

• In February 2007, the Commission deferred its decision on EPACT 1252. It wrote, “the In February 2007, the Commission deferred its decision on EPACT 1252. It wrote, “the Commission hereby advises its jurisdictional electric utilities that it will not direct the Commission hereby advises its jurisdictional electric utilities that it will not direct the wholesale implementation of the above-mentioned standards at this time. The wholesale implementation of the above-mentioned standards at this time. The Commission will continue to evaluate the standards and other demand response Commission will continue to evaluate the standards and other demand response measures through its work group and any specific utility filings with the Commission. measures through its work group and any specific utility filings with the Commission. It will consider the working group’s efforts and conduct further proceedings in this It will consider the working group’s efforts and conduct further proceedings in this matter, if necessary, within two years of the effective date of [the Energy Policy] Act.” matter, if necessary, within two years of the effective date of [the Energy Policy] Act.”

Michigan Michigan

• The Commission determined that all but two of the qualifying The Commission determined that all but two of the qualifying utilities already offered time-based rates that satisfied EPACT utilities already offered time-based rates that satisfied EPACT 1252—it then opened proceedings specific to the utilities that 1252—it then opened proceedings specific to the utilities that didn’t. In January 2007, the Commission presented to the didn’t. In January 2007, the Commission presented to the Governor its “21Governor its “21stst Century Energy Plan,” which recommends Century Energy Plan,” which recommends DR and AMI. The Commission then created four working groups DR and AMI. The Commission then created four working groups to support the plan—the groups will look at DR and the smart to support the plan—the groups will look at DR and the smart gridgrid

• In June 2007, the Commission opened a proceeding to In June 2007, the Commission opened a proceeding to implement the DR portion of the plan—it also formed a related implement the DR portion of the plan—it also formed a related working group called the Michigan Smart Grid Collaborative, working group called the Michigan Smart Grid Collaborative, which later was tasked with considering PHEVs vis-à-vis the which later was tasked with considering PHEVs vis-à-vis the smart gridsmart grid

• The Michigan Legislature is considering three bills that would The Michigan Legislature is considering three bills that would foster the deployment of demand response and would reduce foster the deployment of demand response and would reduce peak demand.peak demand.

• The Commission determined that all but two of the qualifying The Commission determined that all but two of the qualifying utilities already offered time-based rates that satisfied EPACT utilities already offered time-based rates that satisfied EPACT —then opened proceedings specific to the utilities that didn’t.—then opened proceedings specific to the utilities that didn’t.

New MexicoNew Mexico

• EPACT 1252 Proceeding opened September 2006. EPACT 1252 Proceeding opened September 2006. Commission has held several workshops and solicited Commission has held several workshops and solicited from utilities white papers on AMI and time-based rates. from utilities white papers on AMI and time-based rates.

• Legislation: In February 2007, Governor Richardson Legislation: In February 2007, Governor Richardson signed legislation that directs utilities to include load signed legislation that directs utilities to include load management and energy efficiency programs in their management and energy efficiency programs in their resource portfolio. It also sets a minimum threshold for resource portfolio. It also sets a minimum threshold for action:action:

By 2014, save 5% of total 2005 retail kWh salesBy 2014, save 5% of total 2005 retail kWh sales By 2020, save 10% of total 2005 retail kWh sales.By 2020, save 10% of total 2005 retail kWh sales.

• In January 2008, the Commission opened a proceeding In January 2008, the Commission opened a proceeding to investigate what effect incentives will have to to investigate what effect incentives will have to motivate utilities to deploy energy efficiency and load motivate utilities to deploy energy efficiency and load management. management.

New YorkNew York

• Decision: Declined Adoption of EPACT 1252—Decision: Declined Adoption of EPACT 1252—the Commission determined that it already the Commission determined that it already provides a “time-based metering and provides a “time-based metering and communications standard comparable to communications standard comparable to PURPA.” PURPA.”

• In August 2006, the Commission directed In August 2006, the Commission directed utilities, in response to EPACT 1252, to file AMI utilities, in response to EPACT 1252, to file AMI plans. plans.

• In October 2007, the Commission solicited In October 2007, the Commission solicited comments about the plans. comments about the plans.

• In April 2008, the Commission’s Staff held a In April 2008, the Commission’s Staff held a technical conference.technical conference.

Ohio Ohio

• Decision: Adopted EPACT 1252 in March 2007 and series Decision: Adopted EPACT 1252 in March 2007 and series of workshops held subsequentlyof workshops held subsequently

• In May 2008, Governor Strickland signed Senate Bill 221, In May 2008, Governor Strickland signed Senate Bill 221, mandating a peak-load reduction standard:mandating a peak-load reduction standard:

““Beginning in 2009, an electric distribution utility Beginning in 2009, an electric distribution utility shall implement peak demand reduction programs shall implement peak demand reduction programs designed to achieve a one per cent reduction in peak designed to achieve a one per cent reduction in peak demand in 2009 and an additional seventy-five demand in 2009 and an additional seventy-five hundredths of one per cent reduction each year hundredths of one per cent reduction each year through 2018.” through 2018.”

It requires the Commission to report annually It requires the Commission to report annually verification of peak-demand reductionverification of peak-demand reduction

It sets state policy to “encourage innovation and It sets state policy to “encourage innovation and market access for…demand-side management, time-market access for…demand-side management, time-differentiated pricing, and implementation of differentiated pricing, and implementation of advanced metering infrastructure.”advanced metering infrastructure.”

Pennsylvania Pennsylvania

• In February 2008, the House passed a bill that In February 2008, the House passed a bill that would mandate deployment of smart meters would mandate deployment of smart meters and demand response, set peak-demand and demand response, set peak-demand reduction goals, and establish M&V standards. reduction goals, and establish M&V standards. The bill is now in the Senate.The bill is now in the Senate.

• In March 2008, House of Representatives In March 2008, House of Representatives passed legislation that would allocate $850 passed legislation that would allocate $850 million to Governor Rendell’s Energy million to Governor Rendell’s Energy Independence Fund—$270 million of it is to Independence Fund—$270 million of it is to provide grants and loans for DSM projects. The provide grants and loans for DSM projects. The bill is now in the Senate.bill is now in the Senate.

VirginiaVirginia

• In September 2007, Governor Kaine released his “Virginia In September 2007, Governor Kaine released his “Virginia Energy Plan,” which is to reduce the growth rate of Energy Plan,” which is to reduce the growth rate of consumption by 40% by 2017 and to reduce GHG emission by consumption by 40% by 2017 and to reduce GHG emission by 30% by 2025. It considers DR to be a strategy for efficiency 30% by 2025. It considers DR to be a strategy for efficiency and conservation.and conservation.

• In December 2007, the Commission reported to the Governor In December 2007, the Commission reported to the Governor & General Assembly how to reduce consumption by 10% (of & General Assembly how to reduce consumption by 10% (of 2006 levels) by 2022 via load management, DSM, 2006 levels) by 2022 via load management, DSM, conservation, and efficiency. This report was in response to conservation, and efficiency. This report was in response to legislation enacted in April 2007.legislation enacted in April 2007.

• In May 2008, Governor Kaine signed legislation that renews the In May 2008, Governor Kaine signed legislation that renews the state’s Commission on Electric Utility Restructuring while state’s Commission on Electric Utility Restructuring while renaming it the “Commission on Electric Utility Regulation.” It renaming it the “Commission on Electric Utility Regulation.” It also tasks this Commission with educating retail electricity also tasks this Commission with educating retail electricity consumers about demand response. The new law requires the consumers about demand response. The new law requires the State Corporation Commission to convene a working group to State Corporation Commission to convene a working group to identify “consumer education needs” pertaining to DR, DSM, identify “consumer education needs” pertaining to DR, DSM, efficiency, and conservation.efficiency, and conservation.

Elsewhere in WashingtonElsewhere in Washington

DOEDOE• New Advisory Committee at DOENew Advisory Committee at DOE• Continued support to MADRI, MWDRI and NWDRIContinued support to MADRI, MWDRI and NWDRI• Other technical supportOther technical support

FERCFERC• Individual Decisions on ISO/RTO DRIndividual Decisions on ISO/RTO DR

Ancillary Services and other marketsAncillary Services and other markets Inclusion of Traditional Efficiency as well as DRInclusion of Traditional Efficiency as well as DR

• Rulemaking on DR in Competitive Markets (AD07-07-Rulemaking on DR in Competitive Markets (AD07-07-000)000)

• Technical Conferences on DRTechnical Conferences on DR

EPAEPA• Energy StarEnergy Star• National Action Plan on Energy EfficiencyNational Action Plan on Energy Efficiency

Energy Independence ActEnergy Independence ActTitle XIII – Smart GridTitle XIII – Smart Grid

Section 1301 – Statement of PolicySection 1301 – Statement of Policy Section 1302 – System ReportSection 1302 – System Report Section 1303 – Advisory Committee and Task Section 1303 – Advisory Committee and Task

ForceForce Section 1304 – Technology RD&DSection 1304 – Technology RD&D Section 1305 – Interoperability FrameworkSection 1305 – Interoperability Framework Section 1306 – Federal Matching FundSection 1306 – Federal Matching Fund Section 1307 – State ConsiderationSection 1307 – State Consideration Section 1308 – Study of Effect of Private Wires Section 1308 – Study of Effect of Private Wires

Laws on CHPLaws on CHP Section 1309 – Study of Security AttributesSection 1309 – Study of Security Attributes

Section 1301 – Statement of PolicySection 1301 – Statement of Policy It is the policy….to support….which together It is the policy….to support….which together

characterize a smart grid:characterize a smart grid:• Digital information and controlsDigital information and controls• Dynamic optimization with cyber-securityDynamic optimization with cyber-security• Distributed Resources and DG, including renwewable Distributed Resources and DG, including renwewable

energyenergy• Demand Response and Energy EfficiencyDemand Response and Energy Efficiency• Smart technologies for metering, grid communications Smart technologies for metering, grid communications

and distribution automationand distribution automation• Smart appliances and consumer devicesSmart appliances and consumer devices• Advanced storage and peak-shaving technologies, Advanced storage and peak-shaving technologies,

including PHEVs and thermal-storage A/Cincluding PHEVs and thermal-storage A/C• Information and control options to consumers Information and control options to consumers • Standards for communication and interoperabilityStandards for communication and interoperability• Identification and lowering of barriersIdentification and lowering of barriers

Section 1304 – Technology RD&DSection 1304 – Technology RD&D

Power Grid Digital Information TechnologiesPower Grid Digital Information Technologies• Advanced techniques for measuring peak Advanced techniques for measuring peak

reductions and efficiency savingsreductions and efficiency savings• Investigate means for DR, DG and storage to Investigate means for DR, DG and storage to

provide ancillary servicesprovide ancillary services• WAN measurement and control includingWAN measurement and control including

Data miningData mining VisualizationVisualization Advanced computingAdvanced computing Communications in a highly distributed environmentCommunications in a highly distributed environment

• New reliability techniques, includingNew reliability techniques, including Communications network capabilities in a grid control Communications network capabilities in a grid control

room environmentroom environment

Section 1304 – Technology RD&DSection 1304 – Technology RD&D

Power Grid Digital Information Technologies Power Grid Digital Information Technologies • Identify communications networks capabilities Identify communications networks capabilities

needed to implement advanced technologiesneeded to implement advanced technologies• Investigate feasibility of a transition to time-Investigate feasibility of a transition to time-

based and real-time pricingbased and real-time pricing• Develop algorithms for use in transmission Develop algorithms for use in transmission

software applicationssoftware applications• Promote use of underutilized electric generation Promote use of underutilized electric generation

capacity in replacement of liquid fuels in capacity in replacement of liquid fuels in transportationtransportation

• Interconnection protocols to enable electric Interconnection protocols to enable electric vehicles to help meet peak demandvehicles to help meet peak demand

Section 1304 – Technology RD&DSection 1304 – Technology RD&D Regional Demonstration Initiative Regional Demonstration Initiative

specifically focused on advanced specifically focused on advanced technology for power grid sensing, technology for power grid sensing, communications and power flow control, communications and power flow control, including:including:• Demonstrate benefits of concentrated Demonstrate benefits of concentrated

investmentsinvestments• Facilitate transition to advanced technologiesFacilitate transition to advanced technologies• Facilitate integration of advanced technologies Facilitate integration of advanced technologies

into existing networksinto existing networks• Demonstrate protocols and standards for Demonstrate protocols and standards for

measurement verification of energy and measurement verification of energy and emissions savings from DR and EEemissions savings from DR and EE

• Investigate differences in regulation and best Investigate differences in regulation and best practicespractices

Section 1305 – InteroperabilitySection 1305 – Interoperability Primary responsibility given to National Institute Primary responsibility given to National Institute

of Standards and Technology (NIST) of of Standards and Technology (NIST) of Department of CommerceDepartment of Commerce

Authorization of $5M per year from 2008 to 2012Authorization of $5M per year from 2008 to 2012 Purposes:Purposes:

• Develop framework that includes protocols and model Develop framework that includes protocols and model standards for information management to achieve standards for information management to achieve interoperability of devices and systemsinteroperability of devices and systems

• Alignment of policy, business and technology Alignment of policy, business and technology approaches to enable all electric resources, including approaches to enable all electric resources, including demand resources to contribute to an efficient reliable demand resources to contribute to an efficient reliable electricity networkelectricity network

Input must be solicited from:Input must be solicited from:• DOEDOE• Smart Grid Task Force and Advisory CommitteeSmart Grid Task Force and Advisory Committee• Stakeholders such as GWAC, IEEE and NEROStakeholders such as GWAC, IEEE and NERO

Framework Developed shall be technology-Framework Developed shall be technology-neutral, flexible, uniform and voluntaryneutral, flexible, uniform and voluntary

Section 1305 - InteroperabilitySection 1305 - Interoperability

Framework shall be designedFramework shall be designed• To incorporate all resources, both generation To incorporate all resources, both generation

and demand response and energy efficiencyand demand response and energy efficiency• To be flexible to accommodate regional To be flexible to accommodate regional

differences and technology innovationsdifferences and technology innovations• To consider voluntary standards that To consider voluntary standards that

accommodate appliances and equipment that accommodate appliances and equipment that are manufactured to respond to grid are manufactured to respond to grid emergencies and price signals via curtailment emergencies and price signals via curtailment or load sheddingor load shedding

Framework shall accommodate Framework shall accommodate appropriate manufacturer lead timeappropriate manufacturer lead time

Section 1305 - InteroperabilitySection 1305 - Interoperability TimetableTimetable

• NIST to begin work 60 days post enactmentNIST to begin work 60 days post enactment• Publish report on progress within 1 yearPublish report on progress within 1 year• Further reports as warrantedFurther reports as warranted• Final report when work is judged to have been Final report when work is judged to have been

completed or that a federal role is no longer completed or that a federal role is no longer necessarynecessary

FERCFERC• If sufficient consensus reached, FERC shall If sufficient consensus reached, FERC shall

proceed to rulemaking to apply standards to proceed to rulemaking to apply standards to interstate transmission and regional and interstate transmission and regional and wholesale marketswholesale markets

Section 1307 – State ConsiderationsSection 1307 – State Considerations

Two new “Standards” created under the Two new “Standards” created under the Public Utilities Regulatory Policy Act Public Utilities Regulatory Policy Act (PURPA)(PURPA)

New (17) Smart Grid InvestmentsNew (17) Smart Grid Investments Utilities must consider smart grid investments before Utilities must consider smart grid investments before

proceeding with “traditional” investmentsproceeding with “traditional” investments Utilities are authorized to recover costs of smart grid Utilities are authorized to recover costs of smart grid

investmentsinvestments Utilities are authorized to recover remaining book Utilities are authorized to recover remaining book

value of infrastructure made obsoletevalue of infrastructure made obsolete

Section 1307 – State ConsiderationsSection 1307 – State Considerations

New (18) Smart Grid InformationNew (18) Smart Grid Information• Purchasers shall be provided direct Purchasers shall be provided direct

access, in writing or electronically, to access, in writing or electronically, to information including:information including:

PricesPrices UsageUsage Intervals and ProjectionsIntervals and Projections Sources and emissionsSources and emissions

Section 1307 – State ConsiderationsSection 1307 – State Considerations

The PURPA ConstructThe PURPA Construct• No direct mandate to doNo direct mandate to do• Requirement is to considerRequirement is to consider• Not just State CommissionsNot just State Commissions• Commence a proceeding or set a Commence a proceeding or set a

hearing date within 1 yearhearing date within 1 year• Complete consideration and make Complete consideration and make

determination within 2 yearsdetermination within 2 years

Energy Independence ActEnergy Independence ActTitle V – Efficiency and Demand ResponseTitle V – Efficiency and Demand Response

Two additional PURPA StandardsTwo additional PURPA Standards• Integrated Resource Planning (IRP)Integrated Resource Planning (IRP)

Integrate Efficiency into IRPIntegrate Efficiency into IRP Adopt policy establishing efficiency as a priority Adopt policy establishing efficiency as a priority

resourceresource• Rate Design to Promote Efficiency Investments Rate Design to Promote Efficiency Investments

(Decoupling)(Decoupling) Align utility incentives with energy efficiency (rate Align utility incentives with energy efficiency (rate

design)design) Promote energy efficiency investmentPromote energy efficiency investment Removing throughput incentiveRemoving throughput incentive Adopt rate designs to encourage efficiencyAdopt rate designs to encourage efficiency Offer customers info and services in energy efficiency Offer customers info and services in energy efficiency

and demand responseand demand response

Energy Independence ActEnergy Independence ActTitle V – Efficiency and Demand ResponseTitle V – Efficiency and Demand Response

Section 529 Section 529

Demand Response Assessment and Demand Response Assessment and National Action PlanNational Action Plan• FERC has leadFERC has lead• Assessment of national potential in 5 and 10 Assessment of national potential in 5 and 10

year increments year increments • Assessment completed within 18 monthsAssessment completed within 18 months• $10M per year authorized in 2008 through $10M per year authorized in 2008 through

20102010• Action Plan submitted to Congress within one Action Plan submitted to Congress within one

year of completion of Assessmentyear of completion of Assessment

Energy Independence ActEnergy Independence ActTitle V – Efficiency and Demand ResponseTitle V – Efficiency and Demand Response

Section 529 Section 529 Demand Response Assessment and Demand Response Assessment and National Action PlanNational Action Plan

Action Plan ComponentsAction Plan Components• Technical Assistance needed by StatesTechnical Assistance needed by States• National Communications ProgramNational Communications Program• Development of analytical tools, model Development of analytical tools, model

contracts and other support materialscontracts and other support materials Action Plan ImplementationAction Plan Implementation

• FERC, together with DOE, to seek state FERC, together with DOE, to seek state agreements and submit implementation plan agreements and submit implementation plan to Congressto Congress

Elsewhere in the bill (almost) – TaxesElsewhere in the bill (almost) – Taxes

Accelerated Depreciation for Advanced Metering Accelerated Depreciation for Advanced Metering (aka Qualified Energy Management Devices)(aka Qualified Energy Management Devices)• Permanent Change from 20 years to 5-7 yearsPermanent Change from 20 years to 5-7 years• $1.2 Billion tax benefit$1.2 Billion tax benefit• Utility is taxpayerUtility is taxpayer• Installations after January 1, 2008Installations after January 1, 2008• Device EligibilityDevice Eligibility

Capable of hourly interval measurement and Capable of hourly interval measurement and recordingrecording

Capability to exchange information with customer Capability to exchange information with customer devices in support of time-based rates and demand devices in support of time-based rates and demand responseresponse

Capability to allow providers to provide usage Capability to allow providers to provide usage information to customers electronicallyinformation to customers electronically

Utility must offer net meteringUtility must offer net metering

New Federal Law to ComeNew Federal Law to Come

TaxTax• Accelerated DepreciationAccelerated Depreciation• Investment Tax Credit?Investment Tax Credit?• Reduction Tax Credit?Reduction Tax Credit?

Climate ChangeClimate Change• Role of Efficiency/DRRole of Efficiency/DR• M&VM&V

Thank YouThank You

Dan DelureyDan Delurey

Wedgemere GroupWedgemere Group

Demand Response & Advanced Metering CoalitionDemand Response & Advanced Metering Coalitionwww.dramcoaltiion.orgwww.dramcoaltiion.org

Demand Response Coordinating CommitteeDemand Response Coordinating Committeewww.demandresponsecommittee.orgwww.demandresponsecommittee.org

1615 M Street NW1615 M Street NWSuite 900Suite 900

Washington, DC 20036Washington, DC 20036202.296.1686202.296.1686