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BG&E’s PeakRewards SM Demand Response Program Successful Approaches for Engaging Customers August 20, 2014.

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Presentation on theme: "BG&E’s PeakRewards SM Demand Response Program Successful Approaches for Engaging Customers August 20, 2014."— Presentation transcript:

1 BG&E’s PeakRewards SM Demand Response Program Successful Approaches for Engaging Customers August 20, 2014

2 BGE Overview  Maryland’s largest utility  200 years  1 st gas utility  1.2 million electric  650,000 gas  31 million MWh  7,200 MW  3,400 Employees  Exelon 2

3 BGE’s Strategy and Regulatory Affairs Division  Strategy and Regulatory Affairs Division includes – Demand-Side Management (DSM) Programs, where Heather Anderson is the Manager of Residential Demand Response programs – Pricing and Regulatory Services, where Cheryl Hindes is the Manager of Load Analytics  DSM develops and deploys programs designed to help BGE customers use energy more efficiently  Load Analytics estimates impacts of DSM programs and develops load forecasts, load reports for PJM, the Maryland PSC and others 3

4 PeakRewards SM Established in 2008 Currently available to residential customers with central A/C, electric Heat Pump and/or electric water heater. Smart Grid Deployment 2010-2014 Smart Meter installations began April 2012 for all residential customers Smart Energy Manager® Launched October 2012 Customers with Certified AMI meters can view energy consumption on and learn more ways to save. Smart Energy Rewards® Launched July 2013 Peak Time Rebate program, available to all customers who have a Smart Meter installed. Programs are focused on delivering customer value, energy and demand savings using smart meters as an enabler 4 BGE Smart Energy Savers Program®

5 Residential Direct Load Control 450,000 devices installed, 434 MW demand reduction High rate of customer participation Program Design  Choice of switch or “smart” thermostat  Choice of 3 cycling/reward levels  A/C and water heater cycling  Monetized in PJM capacity & energy markets  ~ 90% market awareness  Feeder level or system wide direct load control 5

6 PeakRewards Direct Load Control  Smart cycling of air conditioning (A/C) and water heaters (W/H) for bill credits  A/C Program  Switch or thermostat option  Three levels of cycling: 50%, 75% or 100%  315,000 customers (38% of eligible)  350,000 devices  420 MW demand reduction  W/H Program  100% cycling  79,000 devices  15 MW demand reduction 6

7 PeakRewards Direct Load Control 7

8 BGE Smart Energy Rewards Overview  BGE’s Peak Time Rebate Program launched July 8, 2013  Default tariff that is applicable to all residential customers with a smart meter  Customers earn bill credits for reducing electric consumption on approximately 5-10 peak event days each summer called Energy Savings Days  BGE’s existing A/C Cycling Program ( PeakRewards ℠ ) was integrated so customers would cycle during these events 8

9 PeakRewards SM and BGE Smart Energy Rewards®  BGE’s existing A/C cycling program (PeakRewards) was integrated with BGE Smart Energy Rewards to provide customers with a choice  Customers in PeakRewards are cycled at 50% during Energy Savings Days and are guaranteed to at least receive their monthly PeakRewards credit  Communications specific to PeakRewards customers vs. behavioral only 9

10 Smart Energy Rewards: 2013 Results  Four Energy Savings Days on 7/10,7/17,7/18 and 9/11  Customer rebates ranged from $8.00 to $11.00 per event  Percentage of customers who earned a rebate ranged from 75% to 93%.  Open rates on event e-mails were 57-65% - 3 to 4 times higher than industry standard and other BGE emails at 20%  SER event call back rates of.5% - 1% were less than the 3% modeled  High customer satisfaction with the program 10

11 Smart Energy Rewards: 2014 Update  BGE held the first Energy Savings Day of the summer on Wednesday July 23,2014  Over 819,000 residential customers with smart meters were eligible  Approximately 785,000 notifications were sent to customers the evening before the event via phone, email and text  79% of customers participated in the event  Over 640,000 customers earned a credit  $6.80 average credit for participating customers  Over $2.5 million in credits for the first event  The event received both media coverage and positive customer response on social media 11 Anderson Internal Use Only

12 BGE Prepares Reports for PJM BGE uses Ventyx Retail Operations Software for Profiling and Settlement Functions  BGE uses Retail Office (RO) to prepare reports for PJM for BGE’s 1.2 million electric accounts – PJM’s energy market is an hourly market with hourly prices that vary depending on system demand and weather conditions – BGE is responsible for providing settlement reports to PJM aggregating hourly loads for each electric customer by electricity supplier Settlement A reported on a daily basis uses historical load relationships among customer segments, weather, and timing of hourly loads (season, day of week, hour) Settlement B is used to true-up Settlement A after meters are read – Additional reports on capacity and transmission requirements are produced daily to facilitate grid reliability 12

13 BGE’s Demand Response (DR) Reporting 13  Retail Office – Calculates hourly DR reductions – Calculates effects of hourly DR overrides – Creates detailed and summary reports of DR events by time period – Forecasts DR availability for the next 7 days – Support of substation-feeder specific ALM events enabling quantification of the locational reliability and economic impact benefits

14 Demand Response Eases Local Constraints 14  BGE’s Retail Operations Application – Links each electric account to its feeder and substation – Maps PeakReward devices to electric account maintaining – Percent cycling for each device – Timing of activation and deactivation of events – Customer-specific over-rides of for each event – Estimates hourly load drop during events for each event by account, feeder, substation and for the BGE system – Forecasts of DR availability for next 7 days – After the fact accounting for DR events – Supports substation or feeder specific ALM events for local reliability and economic impact benefits

15 Operational Impact during Power Supply Emergencies  On July 22, 2011, PJM instituted emergency activation of BGE’s demand response program, PeakRewards ℠ for the 1 st time since program’s inception – Reduced BGE system peak demand by >600 MW – Enabled BGE and other Maryland customers to avert brownouts and rolling blackouts

16  BGE’s 450,000 devices contributed 60% to the reduced peak demand in BGE zone BGE Load and Load Management Reductions on 7/22/11 Megawatts (MW) Temperature Estimated that peak demand would have reached 7,800 to 8,000 MW.

17 Questions? Heather Anderson Manager, Energy Efficient Programs Cheryl Hindes Manager, Load Analytics 17

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