Load Response Program Simplification for Efficient Implementation
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Learn the reasons for the simplification of the program, proposed modifications, and examples illustrating the process. Understand why seeding the program and socializing installation costs can enhance effectiveness.
Load Response Program Simplification for Efficient Implementation
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Presentation Transcript
LOAD RESPONSE PROGRAM Robert Burke February 13, 2001
Agenda • Why Simplification was necessary • complexity of original proposal • proposed modifications • Example • After the summer • “Seeding” the program
Why Simplification? • Original proposal included reallocation of the interrupted load to multiple suppliers • Determination of individual monthly peak load effected • Within Market Settlement System, this reallocation results in changes to “Load” • Lost revenue calculation and debits/credits • Lost revenue verification and auditability
Proposed Modifications • Processed outside of the Market Settlement System • Eliminate reallocation • Eliminate lost revenue • Payments for interruption made to Participant that signed up customer • Cost allocated to Electric Load
ExamplePrior to Interruption New Type 6 1 MW L.A.F.I. Signed by Comp. X Load Asset 10 MW Comp. A 50% - 5MW Comp. B 30% - 3MW Comp. C 20% - 2MW
ExampleAfter Interruption New Type 6 1 MW L.A.F.I. Signed by Comp. X Load Asset 9 MW Comp. A 50% - 4.5MW Comp. B 30% - 2.7MW Comp. C 20% - 1.8MW 1MW interruption determined by ISO
Seeding the Program • ISO proposed that the installation costs for the first 1,000 sites be socialized • Consistent with the installation of RIGs