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MA DPU Electric Grid Modernization Working Group Reports From Subcommittees

MA DPU Electric Grid Modernization Working Group Reports From Subcommittees. Steering Committee Meeting #3 March 12, 2013 Dr. Jonathan Raab, Raab Associates. Customer-Facing Subcommittee Mtg. #2 Agenda (2/26/13). Alternative Metering Scenarios, Functions, Costs for Massachusetts

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MA DPU Electric Grid Modernization Working Group Reports From Subcommittees

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  1. MA DPU Electric Grid Modernization Working GroupReports From Subcommittees Steering Committee Meeting #3March 12, 2013 Dr. Jonathan Raab, Raab Associates

  2. Customer-Facing Subcommittee Mtg. #2 Agenda (2/26/13) • Alternative Metering Scenarios, Functions, Costs for Massachusetts • Review utilities’ current metering infrastructure and practices • Presentation/Discussion of Subcommittee’s working group on scenarios, functions & costs • Time-Varying Rate Options & Consumer Protections around Time‑ Varying Rates and Metering • Rick Weston, Principal, Regulatory Assistance Project (RAP) • Barbara Alexander, Consumer Affairs Consultant • Principles and Regulatory Policies for Time‑Varying Rates and Advanced Metering • What principles/recommendations should be considered around time‑varying rates and advanced metering, including any recommended consumer protections?

  3. Meter Age & Planning Assumptions

  4. Time-Varying and Dynamic Rate DesignA RAP Global Series Report Massachusetts Grid Modernization Workgroup Boston,26 February 2013 Frederick Weston 魏雷克

  5. Risk-Reward Trade-Off

  6. Peak Reductions with or without Enabling Technology

  7. Questions Still to be Answered • Customer rate preferences • In absence of mass deployments, preferences and willingness to opt out (or opt in) are not well understood • Impact of CPP versus PTR • Conservation impacts of time-varying rates • Fuel-switching impacts • Impacts of information on peak demand • Does, and if so how does, more (non-price) information about one’s demand as it relates to system peak demand affect behavior?

  8. Time-Varying Rate Design Criteria • Short peak period • Strong price signal and opportunity for significant savings • Rates should reflect system costs • Simplicity is important • Rates should account for the “hedging” premium

  9. THE NEED FOR ESSENTIAL CONSUMER PROTECTIONS: WHITE PAPER ON SMART METER AND DYNAMIC PRICING Barbara R. Alexander Consumer Affairs Consultant 83 Wedgewood Dr. Winthrop, ME 04364 (207) 395-4143 E-mail: barbalex@ctel.net Note: Ms. Alexander is a consultant to the Attorney General, but this presentation should not be interpreted as the views of any client

  10. NASUCA et al RECOMMENDATIONS • SMART METER PROPOSALS MUST BE COST-EFFECTIVE AND UTILITIES MUST SHARE THE RISKS ASSOCIATED WITH THE NEW TECHNOLOGIES AND THE BENEFITS USED TO JUSTIFY THE INVESTMENT • TIME OF USE OR DYNAMIC PRICING MUST NOT BE MANDATORY; CONSUMERS SHOULD BE ALLOWED TO OPT-IN TO ADDITIONAL DYNAMIC PRICING RATE OPTIONS. MA Grid Modernization Collaborative

  11. NASUCA et al RECOMMENDATIONS • REGULATORS SHOULD ASSESS ALTERNATIVES TO SMART METERS TO REACH THE LOAD MANAGEMENT GOALS, PARTICULARLY DIRECT LOAD CONTROL PROGRAMS • SMART METER INVESTMENTS SHOULD NOT RESULT IN REDUCED LEVELS OF CONSMER PROTECTIONS, ESPECIALLY RELATING TO THE IMPLEMENTATION OF REMOTE DISCONNECTION, AND TRADITIONAL BILLING AND DISPUTE RIGHTS SHOULD BE RETAINED MA Grid Modernization Collaborative

  12. SUMMARY AND CONCLUSIONS • These principles or recommendations are no substitute for fact-based analysis of costs and benefits for any consideration for smart meter deployment; • Policies should not be adopted without a firm understanding of costs and benefits: • Very expensive: bill impacts are important part of decision • Consider purpose and cheaper alternatives • Document benefits; avoid aspirational conclusions • Allocate risks fairly • Link cost recovery to performance of promises • Don’t force customers to eat spinach! MA Grid Modernization Collaborative

  13. Subcommittee Brainstormed Principles/Recommendations • Over 30 potential principles/recommendations suggested by Subcommittee members • Sorting into at least 3 categories—TVR, Meters, Cross-Cutting Grid Modernization • Starting list for Members to work from • Next steps?

  14. Grid-Facing Subcommittee Mtg. #2 Draft Agenda (2/28/13) • Potential Grid Modernization Functionality & Enablers for Massachusetts • Subcommittee’s working group presents draft matrix • Regulatory Options for Grid Modernization • Review/discuss straw proposals from Subcommittee’s working group members Note: Both of these work products will be presented in detail in today’s Steering Committee so not reviewed here.

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