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Herbert E. Hirschfeld, P.E. and Joseph S. Lopes Applied Energy Group, Inc. Metering America 2005

Submetering Case Studies with Load Management and Time-Sensitive Pricing. Herbert E. Hirschfeld, P.E. and Joseph S. Lopes Applied Energy Group, Inc. Metering America 2005 April 13, 2005. Background. Residential Electrical Submetering

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Herbert E. Hirschfeld, P.E. and Joseph S. Lopes Applied Energy Group, Inc. Metering America 2005

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  1. Submetering Case Studies with Load Management and Time-Sensitive Pricing Herbert E. Hirschfeld, P.E. and Joseph S. Lopes Applied Energy Group, Inc. Metering America 2005 April 13, 2005

  2. Background • Residential Electrical Submetering • Conversion of master-metered apartment buildings to submetering • Transfers payment responsibility from owners to residents, retains bulk rate • Proven energy savings: 18-26% or more • Allocates energy costs fairly, reduces waste and adversarial issues

  3. Background • Load Management • Control of appliances/end uses by utility or customer to reduce peak demand • Incentives for load reduction available from utility, states, grid operators (ISO) • Time-Sensitive Pricing • Vary prices by time of day, day of week, or utility system conditions (critical peak) • Real-time pricing, time-of-use (TOU)

  4. Submetering as a Catalyst • New submetering technology provides 2-way communications, enabling remote monitoring and control, including: • Load management of key appliances (A/C, Heat) • Interval Meter reading for time-sensitive rates, monitoring of load control events • Other: Monitoring of comfort (temperature), safety (smoke/CO2 detectors, fire/door alarms) • Submetering plus load management and/or time-sensitive pricing means more benefits, small incremental cost = more cost-effective

  5. Case Studies: Enhanced Submetering Waterside Plaza Clinton Hill Apartments New York City rental apartment complex; built early 1970’s; 1470 units, all-electric with heat pump units in each apt. Brooklyn, NY coop apartment complex; built in 1940’s; 1225 units; 66% own, 34% rent; recent electrical upgrade; room A/C’s

  6. Case Study: Waterside Plaza • All-electric rental apartment complex: electric costs a major concern • Dual System installed (1997) • 2 functions enabled with shared PLC communications system: submetering and energy management system (EMS) • Designed to satisfy both owners and tenants: • Housing agency (HPD) wanted EMS with resident override feature (no rent reduction issues); • Owner wanted electrical submetering (requires rent reduction process) • Incentive $ for both EMS and Submetering

  7. Case Study: Waterside Plaza Chronology of System Operation • 1997-1999: EMS shuts off heat pump units at scheduled times energy and cost savings • 1999-2004: After Privatization, Submetering for opt-in units (EMS optional); higher rents for opt-out units (EMS mandatory) • 2004 on: Price-responsive load management • NYSERDA R&D Program incentives for equip. upgrade • Incentives from NY ISO for load control; Voluntary participation by tenants; incentives ($100K for 2004) shared by owner and participating residents

  8. Case Study: Waterside Plaza Comparison of Electric Costs for Submetered vs. Non-Submetered for typical building (#40) Mar ‘04–Feb ‘05 Ave. Submetered tenant bills were 33% less than Non-Submetered for 12 month period; 38% less for winter; 19% less for summer (* app. 180 apts. in each group)

  9. Case Study: Clinton Hill Apartments Chronology of Events • Pre-2001: Master-metered, insufficient electric service (A/C) • 2002: Electrical upgrade, NYS Code requires metering; shareholders opt for submetering; meters installed in basement • 2003-2004: Submetering installed and tested; implemented early 2004 (shareholders only); rental apt. owners await DHCR approval before charging for electric • 2004: NYSERDA Program for Time-Sensitive Pricing applied to submetered residents; shadow period June 2004 – March 2005; full-scale April 2005 (planned); total electric costs allocated to each apartment based on both WHAT and WHEN kWh is used

  10. Case Study: Clinton Hill Apartments Time-Sensitive Pricing • Typical Building Profile vs. Rate Structure (weekdays) • Rates: Peak=3x offpeak; Shoulder=2x offpeak. based on algorithm • Critical Peak rate (6-10pm, red bars on graph) designed to address building peak on 3-5 hottest days per summer month • Building is billed for kWh and peak kW (any hour) • Weekend has 6-10 pm Shoulder peak period (could be billing peak)

  11. Case Study: Clinton Hill ApartmentsBenefits of Submetering Participants (Shareholders) vs. Non-Participants (Renters): • Participants pay for their electricity, so they waste less and use about 35% less than renters • App. 825 apts. are participants vs. 400 non-participants • Participants use less than Non-participants every month

  12. Case Study: Clinton Hill ApartmentsBenefits of Time-Sensitive Pricing Participants vs. Non-Participants: • Participants receive “shadow” bill (what they would pay under TOU rate) Higher rate of savers under TOU for participants (avg. 57%) than for non-participants (avg. (45%)

  13. Case Study Conclusions • Submetering alone saves energy, confirming NYSERDA studies citing 18-26% reduction • Submetering plus load management reduces both peak kW and energy usage (kWh); qualifies building and residents for incentives, including utility and state curtailment programs • Submetering plus Time-Sensitive Pricing also shifts usage, reduces peak on utility system and on building demand • Incremental cost of adding load management and time-sensitive pricing to submetering (with common communications) is small compared to savings potential, improving cost-effectiveness of system

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