preparing small customers for the sacramento …...2010 residential information & controls...

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+ Preparing Small Customers for the Sacramento Smart Grid Karen Herter, Ph.D. Behavior, Energy & Climate Change Conference November 16, 2010

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Page 1: Preparing Small Customers for the Sacramento …...2010 residential information & controls technology review 2010 residential focus group summary For more information Karen@HerterEnergy.com

+Preparing Small Customers for the Sacramento Smart Grid

Karen Herter, Ph.D. Behavior, Energy & Climate Change Conference November 16, 2010

Page 2: Preparing Small Customers for the Sacramento …...2010 residential information & controls technology review 2010 residential focus group summary For more information Karen@HerterEnergy.com

+Acknowledgements

Demand Response Research Center at Lawrence Berkeley National Laboratory

Public Interest Energy Research Program at the California Energy Commission

Sacramento Municipal Utility District

Vendors: RCS Technology, eRadio, Floodgate Entertainment

Research associates: Vikki Wood, Roger Levy, Seth Wayland, Josh Rasin and others

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November 16, 2010Behavior, Energy, and Climate Change Conference

Page 3: Preparing Small Customers for the Sacramento …...2010 residential information & controls technology review 2010 residential focus group summary For more information Karen@HerterEnergy.com

+Background

Sacramento Municipal Utility District (SMUD)Fifth largest municipal utility in the nationCustomer-ownedHighest customer satisfaction in the nation 2007, 2008

Second highest 2009, 2010

Sacramento Smart Grid2009 federal funding $127.5 millionAdvanced metering infrastructure (AMI) planned completion by 2012Research focus: small customers + the smart grid

November 16, 2010Behavior, Energy, and Climate Change Conference

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Page 4: Preparing Small Customers for the Sacramento …...2010 residential information & controls technology review 2010 residential focus group summary For more information Karen@HerterEnergy.com

+Smart Grid Elements

November 16, 2010

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Behavior, Energy, and Climate Change Conference

Page 5: Preparing Small Customers for the Sacramento …...2010 residential information & controls technology review 2010 residential focus group summary For more information Karen@HerterEnergy.com

+Customer Benefits

Information better understand energy useReal-time meter data to customersInformation flow between utility and customers

Incentives opportunities to earn or save $$Time of use and dynamic pricingPayment for load drop during events

Controls better manage energy useUtility-controlled through Smart GridCustomer-controlled independent of Smart Grid

November 16, 2010Behavior, Energy, and Climate Change Conference

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Page 6: Preparing Small Customers for the Sacramento …...2010 residential information & controls technology review 2010 residential focus group summary For more information Karen@HerterEnergy.com

+Existing Systems(not Smart Grid)

Monitor energy use – site or appliance

Display electricity prices

Estimate energy costs

Notify customers of utility price or event signals

Centralize customer control of appliance activity

Automate response to utility price or event signals

November 16, 2010Behavior, Energy, and Climate Change Conference

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Page 7: Preparing Small Customers for the Sacramento …...2010 residential information & controls technology review 2010 residential focus group summary For more information Karen@HerterEnergy.com

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Lessons Learned (so far)

November 16, 2010

Behavior, Energy, and Climate Change Conference 7

Page 8: Preparing Small Customers for the Sacramento …...2010 residential information & controls technology review 2010 residential focus group summary For more information Karen@HerterEnergy.com

+1. Customers want personalized advice

Include energy assessments in the list of benefits for joining other utility programs

Offer simple, inexpensive on-site energy assessments

Use the opportunity to recruit for EE and DR programs

November 16, 2010Behavior, Energy, and Climate Change Conference

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Page 9: Preparing Small Customers for the Sacramento …...2010 residential information & controls technology review 2010 residential focus group summary For more information Karen@HerterEnergy.com

+2. Jury still out on real-time meter data usefulness to customers

November 16, 2010Behavior, Energy, and Climate Change Conference

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Page 10: Preparing Small Customers for the Sacramento …...2010 residential information & controls technology review 2010 residential focus group summary For more information Karen@HerterEnergy.com

+2. Jury still out on real-time meter data usefulness to customers

Literature shows mixed results

Customers say they want appliance-level info

2009 simulation game researchNo change in scores for site-level data Statistically significant change in scores for appliance-level data

What to do?Appliance sub-meteringLoad disaggregation

November 16, 2010Behavior, Energy, and Climate Change Conference

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Page 11: Preparing Small Customers for the Sacramento …...2010 residential information & controls technology review 2010 residential focus group summary For more information Karen@HerterEnergy.com

+2. Jury still out on real-time meter data usefulness to customers

November 16, 2010Behavior, Energy, and Climate Change Conference

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Page 12: Preparing Small Customers for the Sacramento …...2010 residential information & controls technology review 2010 residential focus group summary For more information Karen@HerterEnergy.com

+2. Jury still out on real-time meter data usefulness to customers

Literature shows mixed results

Customers say they want appliance-level info

2009 simulation game researchReal-time meter data: No change in energy scores

Appliance-level data: Statistically significant change

What to do?Appliance sub-metering

Load disaggregation

November 16, 2010Behavior, Energy, and Climate Change Conference

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Page 13: Preparing Small Customers for the Sacramento …...2010 residential information & controls technology review 2010 residential focus group summary For more information Karen@HerterEnergy.com

+2. Jury still out on real-time meter data usefulness to customers

Literature shows mixed results

Customers say they want appliance-level info

2009 simulation game researchNo change in scores for site-level data Statistically significant change in scores for appliance-level data

What to do?Appliance sub-meteringLoad disaggregation

November 16, 2010Behavior, Energy, and Climate Change Conference

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Page 14: Preparing Small Customers for the Sacramento …...2010 residential information & controls technology review 2010 residential focus group summary For more information Karen@HerterEnergy.com

+2. Jury still out on real-time meter data usefulness to customers

Literature shows mixed results

Customers say they want appliance-level info

2009 simulation game researchNo change in scores for site-level data Statistically significant change in scores for appliance-level data

What to do?Appliance sub-meteringLoad disaggregation

November 16, 2010Behavior, Energy, and Climate Change Conference

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Page 15: Preparing Small Customers for the Sacramento …...2010 residential information & controls technology review 2010 residential focus group summary For more information Karen@HerterEnergy.com

+2. Jury still out on real-time meter data usefulness to customers

Literature shows mixed results

Customers say they want appliance-level info

2009 simulation game researchNo change in scores for site-level data Statistically significant change in scores for appliance-level data

What to do?Appliance sub-metering – costs are fallingLoad disaggregation – research is progressing

November 16, 2010Behavior, Energy, and Climate Change Conference

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Page 16: Preparing Small Customers for the Sacramento …...2010 residential information & controls technology review 2010 residential focus group summary For more information Karen@HerterEnergy.com

+3. One size does not fit all

Focus groups findingsSplit opinions on who should manage loads

Split opinions on technology form factors, features, financing (MTKD?)

What to do? Offer a portfolio of mix-and-match energy management tools + incentives

Efficiency measures + rebates

Customer-controlled automation + dynamic pricing

Utility-controlled automation + payments

November 16, 2010Behavior, Energy, and Climate Change Conference

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Page 17: Preparing Small Customers for the Sacramento …...2010 residential information & controls technology review 2010 residential focus group summary For more information Karen@HerterEnergy.com

+4. Customers want estimated bill impacts

Offer tools with “what-if” scenariosConservation and load shifting behavior

Efficiency investments

Rates

November 16, 2010Behavior, Energy, and Climate Change Conference

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Page 18: Preparing Small Customers for the Sacramento …...2010 residential information & controls technology review 2010 residential focus group summary For more information Karen@HerterEnergy.com

+5. Presentation of Tier + TOU rates …is complex

November 16, 2010Behavior, Energy, and Climate Change Conference

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Page 19: Preparing Small Customers for the Sacramento …...2010 residential information & controls technology review 2010 residential focus group summary For more information Karen@HerterEnergy.com

+5. Presentation of Tier + TOU rates …is complex

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Page 20: Preparing Small Customers for the Sacramento …...2010 residential information & controls technology review 2010 residential focus group summary For more information Karen@HerterEnergy.com

+5. Presentation of Tier + TOU rates …is complex

November 16, 2010Behavior, Energy, and Climate Change Conference

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Page 21: Preparing Small Customers for the Sacramento …...2010 residential information & controls technology review 2010 residential focus group summary For more information Karen@HerterEnergy.com

+5. Presentation of Tier + TOU rates …is complex

November 16, 2010Behavior, Energy, and Climate Change Conference

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?$

0.1

0.2

0.3

Time

(Frankenrate)

Page 22: Preparing Small Customers for the Sacramento …...2010 residential information & controls technology review 2010 residential focus group summary For more information Karen@HerterEnergy.com

+5. Presentation of Tier + TOU rates …is complex

Battle of the billsList all prices?

2 tiers x 3 TOU = 6 pricesList deltas relative to old rate?

Need to understand old rate to understand newList deltas relative to new rate?

TOU delta relative to tiersTier delta relative to TOU prices

How to mesh bill presentation with new real-time information display?

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Page 23: Preparing Small Customers for the Sacramento …...2010 residential information & controls technology review 2010 residential focus group summary For more information Karen@HerterEnergy.com

+6. Customers want automation –but many are wary of utility control

Time-of-use ratesProgrammable thermostats

Timers

Dynamic pricing or load controlCommunicating thermostats

Switches

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Page 24: Preparing Small Customers for the Sacramento …...2010 residential information & controls technology review 2010 residential focus group summary For more information Karen@HerterEnergy.com

+7. Customers want assurance of privacy and security

Inform customers of cyber-security plans

Limit data collection to the essentialsLeave appliance-level data in the home unless customers specifically request or allow otherwise

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Page 25: Preparing Small Customers for the Sacramento …...2010 residential information & controls technology review 2010 residential focus group summary For more information Karen@HerterEnergy.com

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Field Studies

November 16, 2010

25Behavior, Energy, and Climate Change Conference

Page 26: Preparing Small Customers for the Sacramento …...2010 residential information & controls technology review 2010 residential focus group summary For more information Karen@HerterEnergy.com

+Small Customer Pricing Studies

November 16, 2010Behavior, Energy, and Climate Change Conference

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Ontario, California, Puget Sound, Florida, Australia, Illinois, Missouri, New Jersey, Maryland, Connecticut, Washington DC

TOU TOU+ controls

CPP CPP+ controls

Information?

Page 27: Preparing Small Customers for the Sacramento …...2010 residential information & controls technology review 2010 residential focus group summary For more information Karen@HerterEnergy.com

+Small Business Study (2008)

Targeted: Offices, Retail, and Restaurants

OfferedCritical Peak Pricing (CPP) or Air Conditioning ControlPersonalized energy efficiency adviceProgrammable thermostats with FM reception

EventsThermostat notified by digital FM (RDS-UMC)Personal notification by phone, e-mail, text12 summer events, 4-7 pmMax temperatures: 88-107 °F

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November 16, 2010

Page 28: Preparing Small Customers for the Sacramento …...2010 residential information & controls technology review 2010 residential focus group summary For more information Karen@HerterEnergy.com

+Small Business Information

Personalized energy advice

Business-specific advice & rebates

Placards:

November 16, 2010Behavior, Energy, and Climate Change Conference

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Page 29: Preparing Small Customers for the Sacramento …...2010 residential information & controls technology review 2010 residential focus group summary For more information Karen@HerterEnergy.com

+Small Business Incentive

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November 16, 2010Behavior, Energy, and Climate Change Conference

Page 30: Preparing Small Customers for the Sacramento …...2010 residential information & controls technology review 2010 residential focus group summary For more information Karen@HerterEnergy.com

+Small Business Controls

November 16, 2010Behavior, Energy, and Climate Change Conference

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Page 31: Preparing Small Customers for the Sacramento …...2010 residential information & controls technology review 2010 residential focus group summary For more information Karen@HerterEnergy.com

+Small Business Savings Results

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*Results of 7 participants on the 2°ACC program not included

Business Type N

Demand ResponseSavings 

Energy EfficiencySavings 

Monthly Bill Savings 

(% 2008 baseline) (% 2007 baseline) (% 2007 GSN Bill)

Office 34 28% 31% 38%

Retail 28 15% 18% 38%

Restaurant 9 3% 10% 21%

All 71 14% 20% 25%

November 16, 2010Behavior, Energy, and Climate Change Conference

Page 32: Preparing Small Customers for the Sacramento …...2010 residential information & controls technology review 2010 residential focus group summary For more information Karen@HerterEnergy.com

+Residential Field Study (2011)

300 residential customersInformation: in-person, site-level, appliance-levelIncentive: critical peak pricingControls: thermostat

Residential energy management systemsProvide real-time energy information

Site and appliance-levelRespond to Internet price signal (OpenADR)Allow automation of HVAC, 220V and 110V appliances

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November 16, 2010Behavior, Energy, and Climate Change Conference

Page 33: Preparing Small Customers for the Sacramento …...2010 residential information & controls technology review 2010 residential focus group summary For more information Karen@HerterEnergy.com

+Residential Information

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November 16, 2010Behavior, Energy, and Climate Change Conference

Page 34: Preparing Small Customers for the Sacramento …...2010 residential information & controls technology review 2010 residential focus group summary For more information Karen@HerterEnergy.com

+Residential Incentive

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November 16, 2010

2 tiers + 2 standard TOU prices + 1 critical peak price =

Behavior, Energy, and Climate Change Conference

Page 35: Preparing Small Customers for the Sacramento …...2010 residential information & controls technology review 2010 residential focus group summary For more information Karen@HerterEnergy.com

+Residential Controls

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November 16, 2010Behavior, Energy, and Climate Change Conference

Page 36: Preparing Small Customers for the Sacramento …...2010 residential information & controls technology review 2010 residential focus group summary For more information Karen@HerterEnergy.com

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Thank you!

Information in this presentation based on:2008 small commercial focus group summary

2008 small commercial field study

2009 OpenADR FM broadcast technology demonstration

2009 simulation gaming research study

2010 residential information & controls technology review

2010 residential focus group summary

For more [email protected]

November 16, 2010Behavior, Energy, and Climate Change Conference

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