load management maximizing demand response programs euci conferences westminster, colorado october 8...
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Load ManagementMaximizing Demand Response Programs
EUCIConferences
Westminster, ColoradoOctober 8 & 9, 2003
On Call - 1,000 MW and On Call - 1,000 MW and Fifteen Years LaterFifteen Years Later
Ed Malemezian
EUCI Conferences
Load ManagementOctober 8 & 9, 2003
Florida Power & Light - TodayFlorida Power & Light - Today
9,600 Employees
8 million people
Half of Florida
86 Generating Units
500 Substations
69,000 miles of transmission and distribution lines
EUCI Conferences
Load ManagementOctober 8 & 9, 2003
Florida Power & Light - April 2003Florida Power & Light - April 2003
Sector Number of Accounts
Total Sales (kwh)
Residential 3,566,000 51%
Commercial 435,000 41%
Industrial 15,000 4%
Other 3,000 4%
EUCI Conferences
Load ManagementOctober 8 & 9, 2003
Average Monthly Energy Usage per Average Monthly Energy Usage per Customer (in kWh)Customer (in kWh)
Residential Commercial Industrial
2002 1,189 7,663 21,764
2001 1,136 7,416 22,070
2000 1,131 7,425 19,129
EUCI Conferences
Load ManagementOctober 8 & 9, 2003
Peak Energy Use - SystemwidePeak Energy Use - Systemwide
Season Date Megawatts
Summer July 9, 2003 19,668
Winter January 24, 2003 20,190
EUCI Conferences
Load ManagementOctober 8 & 9, 2003
Florida Power & Light - The 90’sFlorida Power & Light - The 90’s
FPL has added more than 900,000 customer accounts since
1990. In 2002
alone, FPL
added nearly
94,000 new
accounts for
2.4% growth
Customer Accounts(million)
EUCI Conferences
Load ManagementOctober 8 & 9, 2003
Remember the 70’s and 80’s …..Remember the 70’s and 80’s …..
FPL was growing at annual rates of 3%, 4%, and above
Remember the Arab oil embargo in 1973-1974
Remember the sharp price increase in 1974 and again in 1979 (following the 1978 Iranian revolution)
Remember the “Golden Age of DSM Programs” that followed
EUCI Conferences
Load ManagementOctober 8 & 9, 2003
Remember the 70’s and 80’s …..Remember the 70’s and 80’s …..
Supply could not keep up with demand …. Prices went up …. Something needed to be done ….
EUCI Conferences
Load ManagementOctober 8 & 9, 2003
Demand Side Management ProgramsDemand Side Management Programs
FPL (and other utilities) designed and implemented many different Demand Side Management (DSM) programs
Existing programs served as the jumping off point for many new DSM initiatives
These programs were designed to: Reduce Energy Consumption and / or Reduce Utility Peak Demand
EUCI Conferences
Load ManagementOctober 8 & 9, 2003
Reduce Energy Consumption - kWhReduce Energy Consumption - kWh
Energy efficiencies - motors, A/C SEER, refrigerators, white goods, etc
Whole house efficiency programs Lighting Window film Attic insulation Energy audits Many others
EUCI Conferences
Load ManagementOctober 8 & 9, 2003
Reduce Utility Peak Demand - kWReduce Utility Peak Demand - kW
All the previous energy savings programs take some kW off peak
Thermal storage Time of Use rates Real Time Pricing rates Demand Response programs Load Control - Direct and Indirect
… note the lines get fuzzy ...
EUCI Conferences
Load ManagementOctober 8 & 9, 2003
The 70’s - Curtailable Rates - IndirectThe 70’s - Curtailable Rates - IndirectProvided demand reduction during times of
emergency
Curtailments were very labor intensive
Power Supply notified FPL account managers via pager
FPL account managers called customers by telephone
The “right people” were sometimes elusive and tough to find
EUCI Conferences
Load ManagementOctober 8 & 9, 2003
Curtailable Rates - continuedCurtailable Rates - continued
The program depended on each customer to drop the proper amount of load
Customers generally ran around turning off circuit breakers
Customers sometimes did not comply, and thereby incurred penalties
There had to be a better way ….
EUCI Conferences
Load ManagementOctober 8 & 9, 2003
Objectives for New Load Control Objectives for New Load Control ProgramsPrograms
Increase participation - get more MW reduction when required
Simplify and automate the execution process
Hard control vs. soft control
Dependable MW’s translate directly to higher incentives available for customers
Provide customers with additional choices
EUCI Conferences
Load ManagementOctober 8 & 9, 2003
Why Direct Control ???Why Direct Control ???
FPL needs to satisfy the Peak Demand for electricity
Peak Demand occurs for only a few hours each year
Historically, FPL built power plants to satisfy the Peak Demand
Dependable - The MW’s are really there
Simple, automated, and customer-friendly
EUCI Conferences
Load ManagementOctober 8 & 9, 2003
Demand Reduction - Peak Clipping Demand Reduction - Peak Clipping Through Direct Load ControlThrough Direct Load Control
Shapes the utility load curve
Reduces Peak Load Growth
Don’t need to build as many power plants
Results in lower Electric Rates
LOAD CURVE
02468
101214
1 3 5 7 9 11 13 15 17 19 21 23HOUR
MW x1000
CUSTOMER LOAD
PEAK CLIPPING
EUCI Conferences
Load ManagementOctober 8 & 9, 2003
Load Control Programs at FPLLoad Control Programs at FPLCommercial and Industrial - CILC & CDR
Direct Control - Bidirectional w/customer feedback Wireless Public Network Communications System -
CDPD / CDMA Telephone units fill in coverage holes First units installed in 1987 520 Customers 450 MW Peak Demand Reduction Customer savings: 5% to 20% typical
EUCI Conferences
Load ManagementOctober 8 & 9, 2003
Load Control Programs at FPLLoad Control Programs at FPLResidential and Business On Call
Direct Control - Bidirectional Powerline Communications System First units installed in 1987 710,000 Customers 815,000 Transponders 1,000 MW in normal operation 2,000 MW in an emergency - SCRAM 460 Substations equipped for On Call
EUCI Conferences
Load ManagementOctober 8 & 9, 2003
Residential and Business On CallResidential and Business On Call
LCT - Load Control Transponder
Billing / CIS
Client Workstations
(PC)SCADA, Energy
Management, Outage Management Systems and/or Other Platforms
LMS Master Station
DistributionSubstation
Voice Grade Communication
Power Lines (unconditioned)
Substation Communications
Equipment
ServiceTo Home
A/C & HeatWater Heater
LAN / WAN
Electric Meter(with or w/o AMR)Capacitor
Bank
EUCI Conferences
Load ManagementOctober 8 & 9, 2003
Major Components of Major Components of TWACSTWACS® ®
LMS - Load Management System - Master Station computer located in FPL’s System Control Center (EMS)
SCE - Substation Communications Equipment - Computer and power equipment located in each TWACS equipped substation
RCE - Remote Communications Equipment - Field equipment: Boxes and under-glass modules that do the work at each customer
EUCI Conferences
Load ManagementOctober 8 & 9, 2003
TheThe TWACSTWACS® TechnologyTechnology
OutboundOutboundCommunicationCommunication
InboundInboundCommunicationCommunication
11 33 55 77
4422 66 88
Inbound BitInbound Bit
Outbound BitOutbound Bit
TTAA TTBB
VV11
VV22
EUCI Conferences
Load ManagementOctober 8 & 9, 2003
Residential Load Control - On CallResidential Load Control - On Call
Appliances placed “On Call” Central Air Conditioning
Cycle - 15 minutes off, every 30 minutes, for 3 hours Extended - 3 consecutive hours off in 24 hours 7 months: April through October
Central Strip Heat Cycle - 15 minutes off, every 30 minutes, for 3 hours Extended - 4 consecutive hours off in 24 hours 5 months: November through March
EUCI Conferences
Load ManagementOctober 8 & 9, 2003
Residential Load Control - On CallResidential Load Control - On Call
Appliances placed “On Call” - continued Electric Water Heaters
Extended - 4 consecutive hours off in 24 hours 12 months: year round
Swimming Pool Pumps Extended - 4 consecutive hours off in 24 hours 12 months: year round
EUCI Conferences
Load ManagementOctober 8 & 9, 2003
Residential On Call IncentivesResidential On Call Incentives
Incentive Payments per Year Air Conditioning Cycle: $42 old / $21 new Air Conditioning Extended: $63 Strip Heat Cycle: $10 Strip Heat Extended: $20 Water Heat: $42 old / $18 new Pool Pump: $36 Total per customer: Typical $80 old / $45 new
New incentive $$ apply to customers signing up or changing after April 1, 2003
EUCI Conferences
Load ManagementOctober 8 & 9, 2003
Business On CallBusiness On CallDirect Expansion (DX) Air Conditioning
Cycle - 15 minutes off, every 30 minutes, for 6 hours maximum
7 months: April through October Must use AC from 3-5 PM, 4 days / week Incentive: $2 per ton, per month 20 tons per customer - typical today 16,000 Customers 42 MW in normal operation 83 MW in an emergency - SCRAM
EUCI Conferences
Load ManagementOctober 8 & 9, 2003
On Call Demand Reductions AttainedOn Call Demand Reductions Attained
Typical Demand Reduction (kW) At the Generator - Summer
Residential Normal 1.44 kW Per Customer
Residential SCRAM 2.77 kW Per Customer
Business Normal 0.34 kW Per Ton
Business SCRAM 0.78 kW Per Ton
EUCI Conferences
Load ManagementOctober 8 & 9, 2003
Substation Control EquipmentSubstation Control Equipment
Modulation Transformer Unit
Outbound Modulation Unit
Control & Receiving Unit
(inside building)
EUCI Conferences
Load ManagementOctober 8 & 9, 2003
Load Control Transponder - LCTLoad Control Transponder - LCT
Remote Control of “convenience” loads to reduce peak demand
Two-Way to confirm receipt of commands
Monitors loads to measure effectiveness Independent control of two appliances Autonomous “cycling” of appliances Downloadable addresses and shed strategy
EUCI Conferences
Load ManagementOctober 8 & 9, 2003
Typical LCT InstallationTypical LCT Installation
Thermostat
Fan
COOL
ON
OFF
Load Control Transponder
AUTO
24V120V
FanControl
CoolingControl
PowerSupply
WaterHeater
240VCentral
A/C System
EUCI Conferences
Load ManagementOctober 8 & 9, 2003
TWACSTWACS® Also Does AMR at FPLAlso Does AMR at FPL Uses same communications infrastructure as On
Call 40,000 Meters today Residential customers Hard to read: Fences, dogs, inside meters, etc. Safety concerns In service for approximately 10 years FPL is presently evaluating an AMR rollout
EUCI Conferences
Load ManagementOctober 8 & 9, 2003
Customer PromotionCustomer Promotion
In the beginning …. FPL promoted On Call very heavily Residential only Print ads TV Bill inserts Word of mouth Very popular program Thousands and thousands of customers signed up
EUCI Conferences
Load ManagementOctober 8 & 9, 2003
Customer Promotion - continuedCustomer Promotion - continued
Today …. Business On Call - Targeted marketing Residential On Call - No marketing
Number of MW is capped Word of mouth Friends, neighbors, relatives 300 calls a week Web site - 60 inquiries a month Closure rate: 80% to 85% Still very popular
EUCI Conferences
Load ManagementOctober 8 & 9, 2003
On Call Savings - Web InformationOn Call Savings - Web Information
On Call is the easiest way to lower your electric bill. By going "On Call" you agree to let FPL occasionally cycle off select major appliances for short periods of time, only when absolutely necessary.
Most likely, you won't even notice when the On Call program is activated. But you'll definitely notice the savings. That's because in exchange for making your appliances available to go On Call, FPL will credit your electric bill every month - even if the program is never activated.
Only the appliances you choose will be enrolled in the program, which means you're in control of the savings
EUCI Conferences
Load ManagementOctober 8 & 9, 2003
Customer InconvenienceCustomer InconvenienceThe key to successful Direct Load Control is a
proper understanding of customers and their feelings … Surprise … Surprise !!!
Extensive, up front, research must be done to find out the points where Customers notice your are controlling them Customers get upset enough to exit the program
FPL does an excellent job - The proof is in the pudding ... very few customers ever drop outvery few customers ever drop out
EUCI Conferences
Load ManagementOctober 8 & 9, 2003
What Happens When Customer MovesWhat Happens When Customer Moves LCT remains in place Immediately after the electric service is made
active, the new customer is sent a letter... “Congratulations” ... you are very fortunate to have
moved into a home equipped with On Call ... On Call details and credit amount are provided “Thanks for your participation” ... You can request On Call be changed or deactivated
any time you are unhappy with it
EUCI Conferences
Load ManagementOctober 8 & 9, 2003
Customer Moves - continuedCustomer Moves - continued
The new customer’s response …. Virtually 100% are happy to try out On Call Very few ever call back later to get On Call
deactivated The customer is happy with the credit $$ FPL is happy … it’s investment is preserved Everybody wins … what a deal !!!
EUCI Conferences
Load ManagementOctober 8 & 9, 2003
Demand Response or Direct Load Demand Response or Direct Load Control ???Control ???Demand Response is defined …
Pricing programs or rate structures, including time-of-use and real-time prices, which provide energy consumers with a price per unit of energy that varies according to the period in which the energy is purchased or consumed, to allow customers to vary their demand and usage in response to such prices, and manage their energy costs by shifting usage to a lower cost period, or reducing consumption overall
EUCI Conferences
Load ManagementOctober 8 & 9, 2003
Demand ResponseDemand ResponseCustomers get to:
Choose how they respond Choice is good - Freedom, the customer is in charge Choice is bad - Decisions need to be made
Set the degree of “inconvenience” experienced
Response can be manual to fully automated Manual Response
Simple, less costly systems Requires a customer response each time Risky if the customer does not respond - not home
EUCI Conferences
Load ManagementOctober 8 & 9, 2003
Demand Response - continuedDemand Response - continuedResponse can be manual to fully automated
Automated Response More complicated systems Once set up, does not require any further customer response Little risk - Response happens even if not there Residential - These systems are starting to emerge Commercial Industrial - Still a very big opportunity for
practical systems to be developed & deployed In my opinion, Automated Systems are the only way to
go !!!
EUCI Conferences
Load ManagementOctober 8 & 9, 2003
Direct Load Control - On CallDirect Load Control - On CallCustomers get to:
Choose to participate or not Choose the devices controlled
Central Air Conditioning Central Strip Heat Water Heater Swimming Pool Pump
Set the degree of “inconvenience” experienced Cycling strategy Extended strategy
EUCI Conferences
Load ManagementOctober 8 & 9, 2003
Direct Load Control - continuedDirect Load Control - continuedAutomated Response
Simple, relatively inexpensive system Once installed, does not require any customer
response Little risk
Response happens even if customer is not there Customer receives credit even when FPL does not control
Residential and Business On Call, CILC, and CDR are real ... and they work very well !!!and they work very well !!!
EUCI Conferences
Load ManagementOctober 8 & 9, 2003
Demand Response or Direct Load Demand Response or Direct Load Control ???Control ???Demand Response and Direct Load Control have
a great deal in common Both allow customer choices Both are intended to reduce Peak Demand and
associated high-priced, on-peak, energy costs Both reward the customer for reducing utility
energy costs In many respects, Direct Load Control can be
considered as a subset of Demand Response
EUCI Conferences
Load ManagementOctober 8 & 9, 2003
Does On Call Work ???Does On Call Work ???
80 MinuteTime-out
Normal Load Control
Generation LostSystem SCRAM
RestorationStarted
Restoration
Suspended
More Generation LostSystem re-SCRAM
RestorationStarted
Predicted Demand ProfilePredicted Demand Profile
TIME OF DAYTIME OF DAY
SY
ST
EM
SY
ST
EM
LO
AD
(M
W)
LO
AD
(M
W)
Over 975 Over 975 MegawattsMegawattsShed in 60 Shed in 60 SecondsSeconds
August 1995August 1995
Today Have Today Have 2000 MW 2000 MW
Available for Available for SCRAMSCRAM
On Call SCRAMOn Call SCRAM
EUCI Conferences
Load ManagementOctober 8 & 9, 2003
Does It Work ??? - Other ExamplesDoes It Work ??? - Other Examples May 5, 2003 - 52 MW - Turkey Point trips Sept 9, 2002 - 138 MW - Manatee Plants trip Jan 10, 2001 - 236 MW - 5 units derated Jan 5, 2001 - 892 MW - Weather / Emergency sales Jan 1, 2001 - 1200 MW - Inadvertent SCRAM July 20, 2000 - 331 MW - Emergency sales May 26, 2000 - 525 MW - 2 Plants trip Sept 4, 1999 - 717 MW - Capacity shortage July 29, 1999 - 639 MW - Emergency sales … plus more … these were just some of the more notable examples
…
EUCI Conferences
Load ManagementOctober 8 & 9, 2003
Does It Work ??? - Other ExamplesDoes It Work ??? - Other Examples Most On Call activations were in response to system
capacity shortages created by: Extremes in weather Generating units tripping offline Other emergencies - gas pipeline explosion
On Call can be activated to relieve localized trouble Transmission constraints - fires under 500 kV Voltage / VAR / Stability problems Individual substation overloading - outage and weather
It works just as intendedIt works just as intended … that’s a very good thing !!!that’s a very good thing !!!
EUCI Conferences
Load ManagementOctober 8 & 9, 2003
FPL-All Load Management ProgramsFPL-All Load Management Programs
FPL actively works with customers to help them reduce their use of electricity and control their bills.
These programs remain among the most effective in the nation
In total, have reduced enough electricity demand to date (3,300 MW) so that FPL has been able to avoid building the equivalent of 10 (400 MW) power plants.
EUCI Conferences
Load ManagementOctober 8 & 9, 2003
ConclusionsConclusionsLoad Management remains a key component of the
Utility Integrated Resource Planning process at FPL
Load Management should include Demand Response and Direct Load Control Traditional DSM programs
Each program fills it’s piece in the puzzle
Don’t abandon traditional ideas just because they lack some glitzglitz ….
EUCI Conferences
Load ManagementOctober 8 & 9, 2003
Questions ????Questions ????
772-286-9831 [email protected]