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Demand Response Overview and Insights from Xcel Energy's Collaborative Dialogue

This document presents key insights from the July 2007 dialogue on demand response (DR) strategies conducted by Xcel Energy and associates. It outlines various retail load management tariffs, highlighting potential savings of up to 60% on demand charges for customers participating in DR programs. The summary details the control options available, notification procedures, and specific programs for residential and commercial customers. Emphasis is placed on the integration of DR resources into utility planning and the dynamics of value propositions related to demand response within the evolving energy landscape.

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Demand Response Overview and Insights from Xcel Energy's Collaborative Dialogue

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  1. NARUC/FERC Collaborative Dialogue on Demand Response July 15, 2007 Deb Sundin Xcel Energy

  2. Xcel Energy Service Territory Northern States Power Company- Minnesota Northern States Power Company- Wisconsin Public Service Company of Colorado 3.3 Million Combined Electric and Gas Customers in 8 States Southwestern Public Service

  3. Xcel Energy DR Summary

  4. Xcel Energy DR: NSP System • Historic retail load management business tariffs. • Majority of controllable load from peak control tariff. • Can save up to 60% on demand charges, paid throughout the year. • Options for Maximum annual hours of control are 300, 150 and 80 hours per year. One-hour notice typical. • $8/ kW or $10/ kW penalties are charged for violating control periods. • Direct load control • Primarily residential cycled air conditioning. • Average 10-15 days of control June through September. • Customers receive a bill discount for participating and are not notified prior to control.

  5. MN Summer System Peak Day

  6. Xcel Energy DR: NSP System • Built over the last 30 years. • Built to control NSP’s system peak load. • DR resources are actively integrated into utility’s resource planning process – avoids significant amounts of generation • Discounts based on avoided cost of CT at time of development.

  7. Xcel Energy DR: PSCO System • Interruptible Service Option Credit • Strict qualifications requirements limit free riders. Must have 500 kW of controllable load during each summer month. • Up to 67% savings on demand charges paid throughout the year. • Control periods may occur at any time for Economic, Capacity, Contingency or Reliability reasons. • Options for maximum annual hours of control are 200, 160, 80 and 40 hours. Notice options of <10 Minutes, 1 hour or 8 hours. • Direct load control • Residential cycled air conditioning units. • Average 10-15 days of control June through August. • Customers receive a bill discount for participating and are not notified prior to control.

  8. Xcel Energy DR: PSCO System • C&I customers previously on interruptible tariffs received discounts, but infrequently called to control • Redesigned program to provide customers options that conformed to utility’s economic / reliability needs • Interruptible Service Option Credit (ISOC)

  9. NSP Retail DR Programs vs. Future MISO Wholesale DR Efforts • MISO is currently looking at wholesale DR. • Developing an emergency program • Value propositions of DR are dynamic and can be impacted by: • Capacity vs. energy • Plant deferral economics vs. near term price mitigation • Control response time (5 minutes – 2 hours) • End-use customer control requirements vs. customer payment • Where existing resources are substantial (e.g. Minnesota), should be careful not to erode resource built over decades • Ultimately, goal must be to ensure that customers receive least cost (long run) resources, consistent with other priorities (e.g. environment, reliability, etc.)

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