bge’s smart energy pricing the national town meeting on demand response and smart grid
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BGE’s Smart Energy Pricing The National Town Meeting on Demand Response and Smart Grid. Cheryl Hindes Director -- Load Analysis and Settlement July 14, 2009. BGE’s 2008 Smart Energy Pricing (SEP) Pilot featured Peak Time Rebate and Critical Peak Pricing. - PowerPoint PPT PresentationTRANSCRIPT
BGE’s Smart Energy Pricing The National Town Meeting on Demand Response and Smart Grid
Cheryl Hindes Director -- Load Analysis and SettlementJuly 14, 2009
BGE®, A Constellation Energy Company
BGE’s 2008 Smart Energy Pricing (SEP) Pilot featured Peak Time Rebate and Critical Peak Pricing
Pilot of 1,375 residential customers in Summer 2008: 1,021 participants, 354 control group
Pilot included Dynamic Peak Pricing (DPP or CPP) and Peak Time Rebate (PTR)
Customers were given day ahead notification of critical peak event by their choice of methods
E-mail, telephone call, text message (up to 5 of each)
Certain had the Ambient Energy Orb, signaling prices by color code and pulsing light
Sample of customers had ‘enabling technology’ (ET = smart A/C switch)
Very favorable customer satisfaction results confirm customers’ interest
Key findings of impact assessment conducted by The Brattle Group:
Price elasticities for DPP and PTR were not statistically different
On average customers save
22 – 37% at peak conditions* (*PJM definition: hour ending 17:00 with WTHI of 83.1)
18 – 33% during 50 critical hours
1
BGE®, A Constellation Energy Company
Dynamic Peak Pricing: Weekdays (excluding Holidays)
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
Rat
e ($
/kW
h)
Hour of Day
Current Rate
Critical Peak
New Rate
2
Pilot Pricing All – in Rate*
Critical $1.30425Peak $0.14425Off-Peak $0.09425
* Includes generation,
transmission and delivery
$1.30
$0.14
$0.09
BGE®, A Constellation Energy Company
Peak Time Rebate: Weekdays (excluding Holidays)
A Mirror Image of the DPP Rate
- Schedule R summer rates are $0.14 / kWh for all summer hours
- Up to 12 critical peak days will be called by 6 p.m. the prior day
- Customers who use less during the critical period (2 – 7 p.m.) on any critical peak day will receive a rebate. Two levels being tested:
– $1.75/kWh
– $1.16/kWh
3
BGE®, A Constellation Energy Company
Smart Energy Pricing Pilot Design
Group TotalPTR Low Rebate
PTR High Rebate
Dynamic Peak Pricing
Control Group
Without Enabling Technology 675 125 125 125 300
With Orb Technology 250 125 125 0 0
With Orb and AC Switch Technologies 375 125 125 125 0
Total 1300 375 375 250 300
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BGE’s SEP Pilot: 1,300 accounts, a statistically significant sample
BGE®, A Constellation Energy Company
Summer 2008 PilotSmart Energy Pricing - Peak Demand Reductions *
6
Orb & Switch
OrbOnly
No Tech
Orb & Switch
*Peak demand reductions are defined for HE 17:00 for THI of 83.1 degrees
Low Rebate$1.16 / kWh
High Rebate$1.75 / kWh
DPP TariffNo Tech
Orb &Switch
Orb &Switch
Orb &Switch
No Tech
No Tech
OrbOnly
OrbOnly
BGE®, A Constellation Energy Company
Summer 2008 Pilot Average Energy Savings over Critical Events **
7
Low Rebate$1.16 / kWh
** Critical events are the first 10 (of 12) called events during 2008 pilot from HE15:00 to HE19:00
High Rebate$1.75 / kWh
-20.1%
-32.5%
-17.8%
-23.0%
-28.5%
-20.9%
-26.8%
-32.9%
-40%
-35%
-30%
-25%
-20%
-15%
-10%
-5%
0%Impact
% C
han
ge in
Cri
tica
l Pea
k D
eman
d
DPP DPP_ET_ORB PTRL PTRL_ORB
PTRL_ET_ORB PTRH PTRH_ORB PTRH_ET_ORB
DPP TariffNo Tech
Orb &Switch
Orb &Switch
Orb &Switch
No Tech
No Tech
OrbOnly
OrbOnly
BGE®, A Constellation Energy Company
Customers Were Satisfied with Smart Energy Pricing!
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On a scale of 1 to 5, where 1 is "Very Dissatisfied" and 5 is "Very Satisfied", please rate your overall satisfaction with the pilot program. (77% response rate)
BGE®, A Constellation Energy Company 9
Customers Think Smart Energy Pricing Should be the StandardDuring your pilot participation, you experienced a variable rate program where energy used during critical peak periods cost more than energy use during other times. Customers saved money by using energy during non-critical peak periods. Do you think this pricing format should be standard for all BGE customers? (Select one option)
97% would like to return to the same pricing structure in 2009
BGE®, A Constellation Energy Company
PTR More Favorable than DPP, Overall 93% Satisfied
10
On a scale of 1 to 5, where 1 is "Very Dissatisfied" and 5 is "Very Satisfied", please rate your overall satisfaction with the pilot program. (77% response rate)
BGE®, A Constellation Energy Company
Peak Time Rebate Widely Favored
BGE held 6 focus groups in 2007 focused on CPP
Our customers said they need help in understanding their usage and how they could save
Our customers said CPP could not be a default rate
More customers were very satisfied with PTR (66%) than with CPP (48%)
MD PSC and Office of People’s Counsel questioned the appropriateness of CPP as default and favored PTR instead
Most (81%) PTR participants think PTR should be standard (default) pricing
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DOE’s FOA notes its interest in CPP and RTPBGE’s experience suggests adding PTR to the mix
BGE®, A Constellation Energy Company
Appendix
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BGE®, A Constellation Energy Company
Summer 2008 Pilot Summary of The Brattle Group Analysis
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Control GroupControl Group Average Usage
kW % kW kWh/hour % kWh/hour
PTR Low - $1.16 / kWhNo Technology 126 3.19 22.3% 0.71 2.70 17.8% 0.48Orb Technology 141 3.19 26.9% 0.86 2.70 23.0% 0.62Orb and Switch Technologies 113 3.19 31.9% 1.02 2.70 28.5% 0.77
PTR - $1.75 / kWhNo Technology 127 3.19 26.0% 0.83 2.70 20.9% 0.56Orb Technology 137 3.19 31.2% 1.00 2.70 26.8% 0.72Orb and Switch Technologies 118 3.19 36.8% 1.17 2.70 32.9% 0.89
Dynamic Peak PricingNo Technology 148 3.19 25.4% 0.81 2.70 20.1% 0.54Orb and Switch Technologies 111 3.19 36.5% 1.16 2.70 32.5% 0.88
WTHI = [current day’s THI]*(10/14)+ [previous day’s THI] * (3/14)+ [two day's ago THI] * (1/14)THI t = 17.5 + .55*DryBulb t + .2*WetBulb t
Peak Demand Savings*** Energy Savings for SEP Critical Events**
ProgramNumber of Customers
** 'SEP Critical Events' are defined as the 10 hottest critical events during the 2008 summer from HE 15:00 to HE 19:00 *** 'Peak Demand Savings' are defined as hour ending 17:00, for WTHI of 83.1 degrees
Participant Peak Reduction
Average Participant Reduction
BGE®, A Constellation Energy Company 1414
Sun
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June 2008
Sun
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28 29 30
Sun
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July 2008
September 2008Sun
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August 2008
High Temp
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9290
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73
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Despite Unseasonably Mild Weather, BGE called 12 Smart Energy Pricing Events in 2008
BGE®, A Constellation Energy Company
Smart Energy Pricing Continues in 2009
Small commercial customers added
Assessing the level of savings as compared to the Summer of 2008 for returning residential customer
Added Smart Thermostats (in addition to Smart Switches)
Added Twitter
Tips, notifications, reminders, “way to go!”
Posted 20 Tweets in June
Simulating “PJM Emergency Events”
Notification 30 – 60 minutes prior to event
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BGE®, A Constellation Energy Company
BGE Service Territory
BGE®, A Constellation Energy Company
BGE’s Business at a Glance
Residential 1,033.4 Commercial 108.9 Industrial 5.0
Total 1,147.3
Residential 553.7 Commercial 40.1 Industrial 1.4
Total 595.2
Accounts (in thousands)
Electric
Gas
Electric T&D
- delivers through 2,300 square miles of territory
- circuit miles:
– 21,819 of distribution(< 34.5 kV)
– 1,297 of transmission( > 115 kV)
Gas Distribution
- stores and delivers gas
– two peak shaving plants
– nine gate stations
– 5,870 miles of gas main