IOU & CCA Demand Response Workshop - California Efficiency + ...

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IOU & CCA Demand Response Workshop - California Efficiency + ...
IOU & CCA Demand Response Workshop
IOU & CCA Demand Response Workshop - California Efficiency + ...
Agenda

Time            Topic                                                  Presenter
9:00 – 9:15     Introduction & Opening Remarks from President Batjer
9:15 – 9:25     IOU Interval Data                                      SDG&E
9:25 – 9:45     CPP – IOU Overview                                     Joint Presentation
9:45 – 10:15    Other IOU DR Programs                                  1 – SCE (10)
                                                                       2 - PG&E (10)
                                                                       3 – SDG&E (10)
10:15 – 10:25   Break
10:25 – 11:10   CCA – Demand Response Programs Overview                1 - Clean Power Alliance (15)
                                                                       2 – East Bay Community
                                                                       Energy (15)
                                                                       3 – MCE (15)
11:10 – 11:25   Roundtable Discussion
11:25 – 11:30   Closing
IOU & CCA Demand Response Workshop - California Efficiency + ...
Introductions & Safety

Roll Call
• CPUC Energy Division        https://covid19.ca.gov/vaccines/
• IOUs – PG&E, SCE, SDG&E
• CCAs from all IOU Service
  Territories

                                                                 3
IOU & CCA Demand Response Workshop - California Efficiency + ...
Opening Remarks – President Batjer
IOU & CCA Demand Response Workshop - California Efficiency + ...
IOU Interval Data

                         Current State                                                  Potential Future State

Master Data   Validation, Edit &    Push to billing   Third party data   Architecture          Smart Meter       Future
 System           Estimation          systems             exports          Changes               Update           State

                                                                                                                          5
IOU & CCA Demand Response Workshop - California Efficiency + ...
CPP IOU Program Overview
IOU & CCA Demand Response Workshop - California Efficiency + ...
Critical Peak Pricing Overview
                                                                                       Compensation
      Eligibility         Structure            Event Trigger       Notifications                           Bill Protection
                                                                                         for Load

•   Bundled         •   Limited            •   Temperature     •   Pre-season      •    Credit on      •    First 12
    customers           number of          •   CAISO alerts    •   Day ahead            summer              months or
•   Default for         events (varies     •   Market prices   •   Channels             electric use        de-enrollment
    for small,          by IOU)            •   High Load           vary by IOU          outside of          date if prior
    medium, and     •   Year-round             demand                                   event hours
    large C&I,          program            •   Grid status                         •    Capacity
    and large           (holiday           •   Emergencies                              Reservation
    Agricultural.       activity varies)                                                Option
•   NEM (limited,   •   Opt-out any
    PG&E)               time
•   No (new) dual   •   Technology
    participation       incentive
    with other          (varies)
    incentivized
    DR programs

                                                                                                                             7
IOU & CCA Demand Response Workshop - California Efficiency + ...
PG&E 2021 Demand Response
• PG&E's Critical Peak Pricing Program (SmartRateTM                                                                                     • Especially for the greater Bay
  and Peak Day Pricing (PDP) comprises ~ 4% of                                                                                            Area, focusing on customers with higher
  the load management portfolio                                                                                                           load drop potential is extremely
 Load Impacts (MW) of DR Resources [1]                                                                                    Aug-21          important
                                       Residential
 SmartAC™                                                                                                                        18
 SmartRate™                                                                                                                       4
 CBP-DA                                                                                                                           2
 Total, Residential                                                                                                              24
                                    Non-Residential
 BIP                                                                                                                           183
 CBP-DA                                                                                                                         40
 DRAM                                                                                                                           83
                                                                                                                                         Ex-ante load evaluation
 Peak Day Pricing (PDP)                                                                                                         10
 Total, Non-Residential                                                                                                        316
                                           Totals                                                                              340

 SmartRate™ and PDP                                                                                                              14

 [1] Average of Portfolio-Adjusted hourly ex ante load impacts (MW) under 1-in-2 weather conditions from 4 to 9 PM on monthly
 system
 Source:peak
          Tableload
                 B.1,days.
                      Applied Energy Group. 2020 Statewide Load Impact Evaluation of California Non-Residential Critical Peak Pricing
 Programs, Ex-Post and Ex-Ante Load Impacts (CALMAC ID SDG0334). April 1, 2021

                                                                                                                                                                                    8
IOU & CCA Demand Response Workshop - California Efficiency + ...
Program Year 2020 Ex-Post Load Impact: Typical Event Day

Source: Ta ble ES-5, Applied Energy Group. 2020 Sta tewide Load Impact Evaluation of Ca lifornia Non-Residential Cri tical Peak Pri cing Programs, Ex-Post and Ex-Ante Load Impacts (CALMAC ID SDG0334).
Apri l 1, 2021

•     Program Year 2020 statewide total likely overestimates what might be achievable across the state should a statewide event be
      needed
•     Across all three IOUs, the weather was more extreme in PY2020
•     COVID-19 conditions may also have affected how customers responded to CPP events. Given the depressed economic
      conditions across the country, it is possible that participants had additional incentive to save energy (and money) over the
      summer of 2020. Also, reduced capacities at many retail and restaurant locations may have facilitated additional response.

                                                                                                                                                                                                           9
IOU & CCA Demand Response Workshop - California Efficiency + ...
IOU Critical Peak Pricing
         Marketing, Education, & Outreach
                                                  PG&E                                                            SCE                                                        SDG&E
                                                                                                                                                        CPP is a pricing plan option that customers can
                            Phased outreach increasing in urgency/specificity of
What is the optimal                                                                  Summer readiness campaign to remind customers how CPP              choose to participate in. For customers who
                            rate impact leading up to transition. Communications
customer journey and                                                                 works, that events are coming, and what they can do to             decide that CPP is right for them, our goal is to
                            detail what’s happening, what it means for the
experience?                                                                          prepare.                                                           educate them on how to best optimize their plan
                            customer, and how to take action.
                                                                                                                                                        and participate if called upon.

What channels of
engagement are most          All three utilities agree that the best engagement is through a multi-channel and multi-touch approach, but each utility has a unique tactical strategy that varies slightly.
effective?

                            In-season support consisted of email and text
                            outreach, including pre-Event and day-of reminders,
How do we engage our        along with tips and customizable energy conservation     When events are triggered, customers are notified a day            Events are communicated through notifications
customers in a likely       action plans. A post-Event email was sent with           ahead of a scheduled event by: email, phone, SMS, mobile           including email, SMS, IVR day ahead and day of
event approaching?          feedback on the customer’s energy curtailment. In        app, IVR messaging, sce.com banners and webpages.                  recordings. SDGE.com is also updated.
                            addition to the text/email alerts, alerts were added
                            to pge.com and PG&E’s social media.

How do we partner with
our top 10 to 20 critical                                               Account managers at each utility work directly with these large business customers.
accounts.

                                                                                                                                                                                                             10
IOU Critical Peak Pricing
Marketing, Education, & Outreach
Lessons Learned:
• Focus on customers with a higher potential/ability to provide load.
• Offer opt-out option if mandatory transition.
• Use a variety of channels to notify customers about the upcoming Demand
  Response season and Event Days.
   • Allow for multiple recipients to assist in reaching the decision maker.
   • Reach customers via their preferred channels of communication.
• Continue to re-educate customers about the program, how it works, how it
  can benefit them, and actions to take during an event.

                                                                               11
IOU Critical Peak Pricing
Marketing, Education, & Outreach
2021-2022 PG&E Vision:
 Education and Awareness

 • Audience: All Non-Residential CPP participants
 • Message: Program parameters are changing; update your notification preferences; you
   have rate options
 • Channels: Pre-season support direct outreach and pge.com ongoing
 • Call to action: Prepare and plan; adjust CRL for larger customers

 Research and Analysis

 • Analyze load and bill impacts by segment in year 1
 • Customer profiling to determine likelihood of program engagement and success

 Event Season Support

 • Audience: Engaged customers; larger businesses; hotter geographies
 • Message: Varies, but centers around helping customers prepare for and succeed on
   Event Days
 • Channels: Email and SMS with pre-event and day-of notifications, and post-event
   performance analysis
 • Call to action: Plan; act; optimize

                                                                                         12
IOU Demand Response Programs
SCE Demand Response Programs - Overview
SCE DR tariffed programs:
  • Base Interruptible Program (BIP)
  • Agricultural and Pumping Interruptible (AP-I) Program
  • Capacity Bidding Program (CBP)
  • Summer Discount Plan (SDP) Program
  • Smart Energy Program (SEP)
  • Critical Peak Pricing (CPP) Program
  • Real-Time Pricing (RTP) Program
SCE DR contracts or pilots:
  • Demand Response Auction Mechanism (DRAM) Contracts
  • DR Power Purchase Agreements (such as Local Capacity Resource (LCR),   Preferred Resources Pilot (PRP), and
    Aliso Canyon Energy Storage (ACES))
  • Distribution Investment Deferral Framework (DIDF)
  • Emergency Load Reduction Program (ELRP) Pilot
Other SCE incentive program:
 • DR Enabling Technology/Control Incentive Program (includes Automated Demand Response
   Technology Incentive Program (Auto-DR) and smart thermostat incentive)
SCE’s DR Portfolio
                                Customer          Customer                 CAISO            Retail
                                                                                                                                      Resource Design
                                 Sector             Type                Integration      Compensation
                               Large C&I,       All (bundled &                                                      Emergency interruptible load (customer/aggregator
BIP                                                                      Yes (RDRR)           Capacity
                               Aggregator          unbundled)                                                       control).
                               Ag & Water       All (bundled &                                                      Emergency interruptible load (utility direct load
AP-I                                                                     Yes (RDRR)           Capacity
                                Pumping            unbundled)                                                       control).
                                Residential                                                   Capacity              Economic, day-ahead (DA) energy (TOU rate
CPP                                             Bundled Only                  No             (*Energy for dual
                                 and C&I                                                  participation purposes)   structure).

RTP                                 C&I         Bundled Only                  No               Energy               Economic, day-ahead energy (RTP rate structure).

Aggregator Programs             Residential     All (bundled &                              Capacity &              Third-party economic energy and capacity (both
                                                                         Yes (PDR)
(CBP, LCR, PRP, ACES)            and C&I           unbundled)                                Energy                 traditional DR and storage-backed DR).
                                                Bundled Only            Yes (RDRR w/                                Thermostat direct load control through 3rd party
SEP                             Residential                                                   Capacity
                                               (*Open to all in 2022)    DA energy)                                 thermostat providers.
                                Residential     All (bundled &          Yes (RDRR w/                                A/C cycling utility direct load control (both
SDP                                                                                           Capacity
                                 and C&I           unbundled)            DA energy)                                 economic and emergency).
                                Residential     All (bundled &
DRAM Pilot                                                               Yes (PDR)            Capacity              RA-qualifying capacity
                                 and C&I           unbundled)

                                Residential     All (bundled &                                                      Emergency load reduction (customer/aggregator
ELRP                                                                          No               Energy
                                 and C&I           unbundled)                                                       control).
RDRR – Reliability Demand Response Resource   C&I – Commercial & Industrial        RA – Resource Adequacy
PDR – Proxy Demand Resource                   TOU – Time-of-Use                    A/C – Air Conditioning
                                              DA – Day-Ahead
SCE’s DR Portfolio Business Roles
                                                     Utility Managed Tariff –    Utility Managed –
                           Load-Modifying                                                              Wholesale RA
                                                            Supply-Side             Supply-Side                        Wholesale Energy
                                Tariff                                                                  Capacity
                                                             (In House)         (Bilateral Contract)
                                                               BIP                    CBP Tariff
                                    CPP                                                                                         Rule 24
                                                               AP-I                 LCR Contract
Program Examples                    RTP                                                                  DRAM Pilot   (Direct Participation in the
                                                               SDP                  PRP Contract
                           ELRP (SCE & aggregator)                                                                      CAISO Energy Market)
                                                               SEP                  ACES Contract

Customer Recruitment               SCE                         SCE                  Aggregator          Aggregator    Aggregator/Customer

Customer Enrollment                SCE                         SCE                Aggregator/SCE        Aggregator    Aggregator/Customer

CAISO Integration           Not Integrated                     SCE                      SCE             Aggregator    Aggregator/Customer

                                                                                SCE-to-Aggregator-
Event Notification                 SCE                         SCE                                      Aggregator    Aggregator/Customer
                                                                                   to-Customer

Retail Settlement                  SCE                         SCE                  Aggregator             N/A                   N/A

Wholesale Settlement                                                                                   Scheduling          Scheduling
                            Not Integrated                     SCE                      SCE
(Scheduling Coordinator)                                                                               Coordinator         Coordinator

Customer Management                SCE                         SCE                  Aggregator          Aggregator    Aggregator/Customer
PG&E Demand Response Portfolio

Non-Residential Programs
• Base Interruptible Program
• Capacity Bidding Program
• Automated Demand Response
• Emergency Load Reduction Program (in development)

Residential Programs
• SmartAC
• Capacity Bidding Program
• Automated Demand Response
Emergency Load Reduction Program (ELRP)
                         Program                                       Program Trigger & Measurement
•    Group A: Direct Enrollment of bundled and unbundled        •   Day-Ahead Dispatch (CAISO AWE)
     (CCA and ESP), Non-residential eligibility includes both   •   Group A
     Commercial & Industrial, Agricultural and Small-Medium
     Business; BIP Aggregator                                   •   Performance method: 10 in 10 baseline with a +/- day of
                                                                    adjustment factor of +/- 40%
•    Group B: Aggregator for CBP and Third-party DRP
     enrollment (e.g., DRAM)                                    •   Compensation bounded by 50% floor and 200% ceiling
                                                                    for nomination relative to performance
•    Allows export and VPP participation
                                                                •   Group B: Different prescribed methodology

               Parameters & Incentive                                            Notable Provisions
Min load shed of 1kW                                            •   Dual participation with Base Interruptible Program (BIP)
Parameters                                                          DR emergency program

• Availability = May – October; 7 days a week, 4 – 9 p.m.       •   Dual participation with CBP and other 3 rd party PDR
                                                                    (e.g., DRAM) programs
• Event Duration: 1-hr min; 5-hr max
                                                                •   Allows use of prohibited resources during emergency
• Annual Dispatch: Up to 60 hours                                   events (i.e., fossil fuel back-up generation)
• Consecutive Days: No constraint                               •   Certain program elements can be deferred to May 1,
Performance Incentive: $1.00 per kWh (energy)                       2022 (e.g., exports)
No penalty; no capacity payment
Base Interruptible Program
24/7/365 days reliability program

Program Summary:
BIP Participants are on standby
24/7/365 to provide day-of-load
reduction on PG&E’s system when
PG&E or CAISO issues a curtailment
notice. Eligible for both bundled and
unbundled (ESP or CCA) customers.
When events are called, participants are
given a 30-minute notice to reduce their
load down to or below their Firm Service
Level (or face a penalty).
Capacity Bidding Program
Aggregator-managed | Season: May 1 to October 31

Program Summary:
CBP is an economic program for non-
residential and residential Aggregators.
Aggregators nominate capacity each
month for their enrolled resources.
Program options include a set price bid
into the market by PG&E, or
aggregators can choose the price at
which their customers are dispatched
for a DR event. Customers on bundled
or unbundled service (CCA or DA) can
participate.
SmartAC
Direct install program for residential                          3rd Party Implementer:
central air conditioners
Program Summary:
• A load control switch is installed when a customer
  joins the SmartAC program. Customers receive
  $50 after installation.
• During hot summer days the switch is activated to
  limit when the AC can provide cool air. A customer
  will typically experience 20 hours of cycling per
  season.                                              Current 2-way         Legacy 1-way
                                                           switch               switch
• Events are at most one hour and at most 6 hours,
  typically 2-4 hours long.
• Customers have the option to opt-out of any event,
  no limitations or penalties.
• Participation available to both bundled and
  unbundled customers.
Automated Demand Response – Non-Res
Incentives for all business sectors to offset the cost of controls to
support DR program participation
Program Summary:                              3rd Party Implementer:

ADR is an easy way to increase energy
and cost savings by automating the
energy control. Customers install new         Dispatch System:
qualifying technologies and must
commit to participate in a DR program
                                               Standard:
for three years.
Automated Demand Response - Residential

$50 smart thermostat rebates for residential customers
Program Summary:
Customers who buy an
Energy Star certified smart
thermostat and apply for a
$50 EE rebate may also
qualify for a $50 ADR rebate
when we confirm they are on
a DR program (SmartRate or
DRAM). $70 rebate if on a
TOU rate (PG&E or non-
PG&E).
SDG&E DR Programs - Overview

 Programs:
  • Capacity Bidding Program
  • Base Interruptible Program
  • AC Saver Program
  • Technology Incentive Program
  • Technology Deployment
    Program
  • Third Party DR – Rule 32
  • Emergency Load Shed Pilot
    (ELRP)

 Rates with a DR Component:
  • Critical Peak Pricing (CPP)
  • TOU-PA-P Agricultural
  • TOU-A-P Small Commercial

                                   24
SDG&E –Capacity Bidding Program (CBP)
  Is a pay for performance Program. Customers receive monthly capacity payment and energy
  incentives in return for load reduction. Customers mostly participate through 3rd Party
  Aggregators. Customers opt into a "product" each month: 11:00am-7:00pm or 1:00pm-9pm day
  ahead or day of. For 2021 Maximum events per month is nine events of which three are reserved
  for emergencies.

SDG&E –Base Interruptible Program (BIP)
 Emergency/reliability program. Customers receive monthly capacity payments in return
 for load reduction when notified. BIP has a 20-minute notification time and is a year-
 round program.
  Max. 4 hours duration, max. 10 events per month.
  Incentives are monthly Capacity Payments with penalties for non-
 performance.       Incentives are -$6.30 kW. Nonperformance Penalty is - $4.50 kWh.
SDG&E – AC Saver Program (ACS) Day Of - Switches
  Day Of air conditioner program that receives a signal from a one- way direct control switch and cycles
  the customers AC using the customers elected cycling percentage. Payment is an annual bill credit paid
  in December based on the customers cycling option and AC unit's tonnage. The Program is Available
  April through October, noon to 9:00 p.m. For 2021 annual events are 25 with 5 events reserved for
  emergencies.
  Incentives, per ton:
      • Residential 100% - $27.00
      • Residential 50% - $10.35
      • Commercial 50% - $7.50
      • Commercial 30% - $4.50

SDG&E – AC Saver Program - (ACS) Day Ahead -Thermostats
   Supply side program for residential and commercial customers with thermostats. Current eligible
   brands are Ecobee, Honeywell and Nest. This program is bid into the CAISO. Customers are
   notified by e-mail, text and/or by a message on the thermostat. Events 2 - 4 hours duration, For
   2021 a maximum 25 events per season with 5 events reserved for emergencies. Program Season:
   April – October. Residential annual incentive of $20 paid annually in December
SDG&E – Technology Incentive Program (TI) - Load
Modifying
 The Technology Incentives Program offers incentives to business customers to
 help with the purchase and installation of Energy Management Systems (EMS)
 controls and/or equipment, This will help the customer manage and save year-
 round by monitoring, controlling and optimizing energy use.
 The program offers eligible business customers up to two-hundred dollars per
 kilowatt ($200.00/kW) for approved, installed and verified kilowatt (kW)
 reduction. The total incentive is capped at 75% of the total project cost.
 The TI program requires customers receiving incentives to enroll in a qualified
 Demand Response program for three years. Qualifying programs for TI
 enrollment are the Capacity Bidding Program (CBP), Critical Peak Pricing (CPP) or
 other eligible pilots such as DRAM.
SDG&E – Technology Deployment Program (TD) - Load
Modifying
The Technology Deployment Program is a bring your own
device program (BYOT). The Program offers a $50 incentive
to Residential Customers for installing and enrolling either a
Nest, ecobee or Honeywell Home Thermostat with
the requirement that the customer must enroll in an eligible
DR program.

Eligible Programs for enrollment are:
• AC Saver Day Ahead
• Rates with Events (e.g., CPP )
• Capacity Bidding Program (CBP)
• Demand Response Auction Mechanism (DRAM – Rule 32)

                                                                 28
SDG&E – Third Party DR – Rule 32

        Rule 32 allows third-party Demand Response Providers (DRPs) to solicit SDG&E customers to
        participate in their demand response programs and to "bid" the electricity reduction into the
        wholesale electricity market administered by the California Independent System Operator (CAISO).

        Demand Response Auction Mechanism (DRAM) is a third-party pilot program under Rule 32 from
        2016 – 2023. SDG&E solicits offers on an annual basis for DRAM contracts. Majority of Rule 32
        enrollments are through DRAM.

        Local Capacity Requirements (LCR) contract for 2018 – 2022 also under Rule 32 with 4.5MW

                                                                                                           29
SDG&E – DR Program Marketing and Outreach

        Digital Marketing: CCA's will see our mass media campaign including
        tactics such as Digital Ad banners, podcast radio ads and LinkedIn InMail.

        Website: Our website contains access to the most up to date information
        on each demand response program sdge.com/dr.

                                                                                     30
Break – 10 Minutes
CCA Demand Response Programs
Overview
Demand Management
    Programs

     April 6, 2021
CPA is currently operating two DR programs

                 ●     Peak Management Pricing (PMP) is a demand response program highly
                       similar in design to IOU CPP programs - open to commercial customers.

                 ●     Power Response is a DER focused demand response pilot program - open
                       to residential and commercial customers

CLEAN POWER ALLIANCE
Peak Management Pricing

CLEAN POWER ALLIANCE
Peak Management Pricing
                 CPA’s Peak Management Pricing program, launched in 2019, provides summer bill
                 credits in exchange for the application of a surcharge on energy consumed during
                 demand response events to encourage curtailment during peak demand days.

                                         Events are five hours in duration (4-9pm on weekdays). Customers
                          Events         are notified 24 hours in advance. Program is limited to 12 events
                                         per year.

                                         Customers receive a per kW credit on their summer bills (June-
                          Credit         September) that varies by rate schedule.

                                         Customers are charged a flat per kWh surcharge for any usage
                        Surcharge        during the 4-9pm event period.

                                         Customer receive a bill credit at the end of their first calendar year on
                       Bill Protection   PMP if they paid more than they would have otherwise paid on their
                                         regular rate.

CLEAN POWER ALLIANCE
Marketing and Enrollment

                 ●     CPA has engaged its large load and municipal customers directly
                       through commercial account liaison outreach to explain the potential
                       benefits of the program
                 ●     Direct mailer campaign
                 ●     Marketing through local chambers of commerce, social media, and
                       CPA newsletter

CLEAN POWER ALLIANCE
Opportunities and Challenges Observed

                 Opportunities

                 ●     Cautious optimism regarding load management benefits, but more data
                       needed
                 ●     Customer education opportunities on how to shed discretionary load and
                       building load management systems

                 Challenges

                 ●     Difficult to scale program enrollment with opt-in program model
                 ●     Value proposition varies greatly by customer and circumstances
                 ●     Difficult for many customers to curtail usage, especially on hottest days of the
                       summer

CLEAN POWER ALLIANCE
Power Response Program

CLEAN POWER ALLIANCE
Power Response Program
                 CPA’s Power Response pilot program, launched in 2020, is a DER focused demand
                 response program, comprised of three technology types targeting different customer
                 segments, and designed to leverage existing customer equipment.

                                              Description                  Target Segment

                       EV Charging     Pays customers to shed EV          Commercial & Municipal
                                       charging load during events

                                        Pays customers with onsite       Commercial & Residential,
                        Solar +        solar and battery to discharge     including Disadvantaged
                        Storage           batteries during events           Communities (DACs)

                                       Pays customers who manually         Residential, including
                         Smart
                                        reduce their A/C load during    Disadvantaged Communities
                       Thermostat      events or allow CPA to control             (DACs)
                                        smart thermostats remotely

CLEAN POWER ALLIANCE
Marketing and Enrollment

                 CPA employed different strategies to reach commercial vs residential
                 customers

                 ●     Commercial
                       ○  Direct engagement by commercial account liaisons
                       ○  Targeted webinars and email campaigns

                 ●     Residential
                       ○   Variety of mass marketing techniques including direct mail/email,
                           social media, in-app notification
                       ○   Partnered with recipients of CPA’s CBO Grant Program to raise
                           awareness and enroll interested customers
                       ○   Outreach conducted in multiple languages – English, Spanish,
                           Chinese, Tagalog

CLEAN POWER ALLIANCE
2020 Program Highlights

                 ●     Tested direct load control
                 ●     High event engagement / acceptance rate (~50%)
                 ●     High effectiveness per thermostat
                 ●     Low customer dissatisfaction / event-related tickets
                 ●     Successfully navigated and helped alleviate early heat waves and energy
                       shortages

CLEAN POWER ALLIANCE
Opportunities and Challenges Observed

                 Opportunities
                 ● Overlap with Residential TOU
                     ○   TOU default approaching in 2022, opportunities to align messaging
                 ●  Steady enrollment in the residential smart thermostat and residential
                    battery storage segment of the program showed promising load
                    management benefits to CPA and extremely engaged customer base
                 ● Planning to test CAISO integration of DER resource this summer

                 Challenges Reaching Commercial Customers
                  ● Access to information regarding existing installed customer DER
                    technology is limited, making targeted outreach challenging
                  ● Customers with previously installed technologies were less likely to
                    participate in Demand Response as it can modify existing technology
                    agreements or value propositions

CLEAN POWER ALLIANCE
Next Steps

                 Peak Management Pricing
                 ●     Working to develop direct, customized, and targeted outreach strategies and
                       more tools to educate commercial customers of the availability of PMP and
                       potential benefits

                 Power Response
                 ●     CPA is releasing an RFP this week for an implementation provider to scale
                       the Power Response Pilot program to full implementation
                        ○   In next phase CPA is seeking to leverage market activity around newly
                            installed DERs through a trade ally network to acquire customers into the
                            program and expand direct load control capabilities

CLEAN POWER ALLIANCE
Summer 21 Demand
Response Program
Workshop
PRESENTED BY: Stefanie Tanenhaus
DATE: April 6, 2021
Summary
• Overview of EBCE’s experience with CPP/PDP
• Current and planned approaches to demand-side peak load
  management
• Barriers to incremental demand response

                                                            46
EBCE experience with CPP/PDP
• EBCE offered a Peak Day Pricing program in 2018 and 2019
    • Mirrored PG&E’s Peak Day Pricing program
    • Performed targeted outreach to customers with the greatest load elasticity
• Analysis of performance indicated limited behavioral changes
• Transition to TOU rates further limits incremental benefits of PDP
• Pursuing alternative approaches to providing peak load management

                                                                                   47
EBCE Approaches to Peak Load
Management
• Partnering with OhmConnect to provide 25 megawatts of load reduction
  for summer 21
    – Structured as energy hedge during peak load hours (HE 17-21 daily)
• Resilient Home initiative
    – Onsite solar and storage systems for residential customers
    – Targets 5 MW load reduction by end of 2022
• Sunrun Oakland Clean Energy Initiative
    – Behind-the-meter solar (500 kW) and storage (500 kW/2 MWh) by 1/2022
• Exploring additional potential opportunities to increase demand
  response in summer 21 timeframe

                                                                             48
Actions to Increase Load Reduction
Potential
• Support range of demand-side solutions
• Equitably value demand-side resources under RA framework
    – Account for net export value of BTM hybrid and storage systems
    – Eliminate- not further reduce- cap on DR for RA
• Revise contract length requirements for new DR under IRP procurement
  requirements
    – Limiting eligibility to 10-year DR contracts inhibits ability to bring on new DR
    – Commission should allow 3-year contracts to satisfy existing and future IRP
      procurement mandates

                                                                                         49
Peak Load Programs
          April 6, 2021

50
Overview

     •   Billing Data Barrier
     •   Program Participation Barrier
     •   Demand Flexibility Market
     •   MCEv Smart EV Charging Pilot
     •   Battery Storage Program
     •   Peak Feed-in-Tariff*
     •   Time-of-Use + Demand Management Outreach
         Priorities
51
Billing Data Barrier

     •   CCAs receive billing data from utilities
           •   PG&E – generalizes hourly usage into blocks (i.e. 4pm-10pm)
     •   Hourly data is needed for load shedding incentives
         (e.g. CPP programs)
     •   ShareMyData is an inadequate workaround
           •   Separate system with hourly and 15-minute data
           •   Not scalable & undermines impact of incentives
           •   Data quality challenges
     •   Short-term need: billing data; long-term: real-time data
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Program Participation Barrier

     •   Need data to verify customer participation in load shedding
         programs
           •   To avoid double-dipping on incentives or double counting
               achievements
           •   To mitigate the risk of conflicting signals between multiple programs
           •   Eligibility determinations
     •   Need data to understand market saturation and remaining
         potential for program design
           •   Need information about existing third party and utility programs
           •   Can avoid overcommitment of resources and support incremental
               progress
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Demand Flexibility Market

     •   Under development – aiming for Summer 2021
     •   Offers payments for load shifting to off-peak hours and
         day-ahead event-based response to support grid
         reliability and resiliency
     •   Focus on reducing summer evening peak demand
     •   Maximizes reach via the Flexibility Market model
          •   Nearly any provider can participate
          •   Technology agnostic
          •   Integrates efficiency, load shifting, and event-driven DR
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Demand Flexibility Market

     •   Reshaping the duck requires a daily resource value
     •   Building off experience with energy efficiency (EE)
          •   Leading NMEC measurement (CalTRACK 2.0) with control
              group analytics – accurate, open source counterfactual
          •   Attractive to vendors for it’s simplicity - MCE’s Commercial
              Efficiency Market subscribed budget within 3 months
          •   EE implementers can produce optimized load shapes
          •   Many DR providers can do more than event-driven DR
          •   The Flex Market model aims to demonstrate that value

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MCEv Smart Charging Pilot

 Goal: Reduce Peak Load + Shift EV Charging to Peak Solar

•DESCRIPTION: Launching in summer 2021, this pilot uses
vehicle telematics to shift and balance EV charging load
based on grid conditions and power procurement
•SCOPE: ~200 vehicles enrolled with a subset of those having
home battery storage
•BUDGET: TBD
•OBJECTIVE: Help residential customers, especially low-
income and those already on NEM tariff, minimize the
carbon intensity and cost of energy used for EV charging

                                                               Source: Fachrizal (2020)
MCEv Smart Charging Pilot
          Barriers to Implementation
•   Learning from ratepayer-funded pilots
     •   PG&E’s primary role in administering pilots – should be all LSEs
     •   Existing pilot coordination is limited – encourage richer
         dialogue and information sharing
     •   Early coordination on pilot design
Battery Storage Program

     • Active program with a goal of 15 MWh of
       dispatchable storage paired with solar by 2022
     • Technical assistance, financing, performance
       payment, and rebates available
     • Outside of emergency outages and Public
       Safety Power Shutoffs, batteries will be
       dispatched daily between 4pm-9pm
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     • Addresses up-front cost barrier for storage
Peak-Feed-in-Tariff*
                          *supply-side activity

     •   Redesigning MCE’s Feed-in-Tariff (FIT) program to focus
         on deliveries during peak
     •   Revised program in 2019 to require all new solar
         projects include battery storage
     •   Considering additional changes to reduce daytime
         generation
     •   Challenge - Grid upgrade delays preventing resources
         from getting Resource Adequacy credit

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Time-of-Use + Demand Management
                  Outreach Priorities
     •   Focused Customer Engagement
          •   NEM customers: options for load shedding and shifting
          •   Large commercial customers : webinars and 1:1 outreach on TOU
              and Energy Management
          •   Residential customers: partner with PG&E on campaign in advance
              of Spring 2022 default TOU transition
     •   General Education and Awareness
          •   Digital messaging– Flex Alerts, resiliency, targeted banner ads
          •   Website content – TOU, Flex Alerts, resiliency and energy
              management tips
          •   Content toolkits for community partners
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          •   Blog posts, social media
Michael Callahan, Senior Policy Counsel
     Thank You   mcallahan@mcecleanenergy.org

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Roundtable Discussion

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Closing
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