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DSMTF Initial Charter

Demand-Side Management Influence on Reliability NERC Demand-Side Management Task Force (DSMTF) Rick Voytas, Chair November 2007 Presented To The U.S. Demand Response Coordinating Committeee National Town Hall Meeting Washington, D.C. June 3, 2008. DSMTF Initial Charter.

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DSMTF Initial Charter

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  1. Demand-Side ManagementInfluence on ReliabilityNERCDemand-Side Management Task Force (DSMTF)Rick Voytas, Chair November 2007Presented To The U.S. Demand Response Coordinating CommitteeeNational Town Hall MeetingWashington, D.C.June 3, 2008

  2. DSMTF Initial Charter • Review Current Data Collection methods. • Review Energy Efficiency influence on reliability • Evaluate existing DSM reliability performance metrics. • Discussion and summary of the above tasks integrated into a White Paper for review by the • Resource Issues Subcommittee • Operating & Planning Committee at their December 3-4, 2007 • NOTE: Subsequent NERC task force formed to delve into data collection metrics

  3. DSM & NERC’s Data Collection Demand Side Management (DSM) Demand Response Energy Efficiency Dispatchable Non-Dispatchable Controllable Economic Time-Sensitive Pricing Energy-Voluntary Time-of-Use Capacity Ancillary Energy-Price Critical Peak Pricing Demand Bidding & Buyback Direct Load Control Spinning Reserves Emergency Real Time Pricing NERC Currently Collects Data Interruptible Demand Non-Spin Reserves System Peak Response Transmission Tariff Critical Peak Pricing w/Control Regulation Phase 2 Areas of Interest Load as a Capacity Resource Phase 1 Areas of Interest

  4. NERC Definition Of Reliability

  5. Reliability Discussion Continued - Avoided Capacity Concept

  6. Avoided Capacity Capacity Equivalence • What is Capacity Equivalence (CE)? Capacity Equivalence is the true capacity value of a program (DSM, DR, wind, hydro, etc) Bottom line: 1 MW of DSM ≠ 1 MW of Gas ≠ 1 MW of Coal Generation • Why? The calculation of the amount of reserve MW at time of system peak may not provide an indication of the capacity, or load relief, that will be available throughout the entire year to meet customer requirements. • Two important properties: • Determined at system level with adjustments for reserve margin and distribution losses • Varies according to the pattern of load relief afforded by the potential program

  7. Avoided Capacity Capacity Equivalence Example using a DSM program that relies on AC reduction: short reserves! short capacity!

  8. Avoided Capacity Reserve Margin • History of Reserve Margin • Earlier years of utility, “percentage reserve” evolved as the means for communicating the “reliability” of a utility system • “Percentage reserve” at system peak established an amount of capacity in MW that would be available to the system at peak and throughout the year • Problem: The amount of capacity actually available at any point in time would be reduced due to random forced outages and scheduled maintenance • In 1978, many reliability councils adopt Loss Of Load Probability (LOLP) methodology • Most reliability councils adopted the industry standard of .1 day per year (LOLP = .1) .1 day/year = 1 day in 10 years = one day in 2500 workdays • Using a LOLP =.1, minimum reserve margins can be calculated

  9. NERC Historical On-Going Metrics and Data Requirements

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