2BILATERAL CONTRACTS – REGULATED UTILITIES EnerNOC OverviewFounded in 2001, EnerNOC is the largest demand response (DR) provider focused exclusively on the commercial and industrial sector.BILATERAL CONTRACTS – REGULATED UTILITIESBurlington Electric Department (VT)10 MW, 4 year contractIdaho Power65 MW, 5 year contractMaryland IOUs Allegheny Power, Baltimore Gas & Electric, Delmarva Power, Pepco250 MW, 4 year contractsPacific Gas & Electric40 MW, 5 year contractPublic Service Company of New Mexico30 MW, 10 year contractPuget Sound EnergyPilot Program, 2 year contractSalt River Project50 MW, 3 year contractSan Diego Gas & Electric25 MW, 10 year contract25 MW expansion (pending regulatory approval)Southern California Edison40 MW, 2 year contract110 MW extension (pending regulatory approval)Tampa Electric Company35 MW, 4 year contractTennessee Valley Authority110 MW, 3 year contractXcel Energy (Colorado)44 MW, 8 year contractISO-New England (ISO-NE)PJM Interconnection (PJM)New York ISO (NYISO)Ontario Power Authority (OPA)Electric Reliability Council of Texas (ERCOT)PROGRAMS IN RESTRUCTURED MARKETS
3Demand Response and the Federal Government Today I’d like to provide you a bit of background on today’s energy crisis. Energy and carbon management have become an executive-level discussion at every company and institution around the world.
4Demand Response Annual Energy Demand Winter Spring Summer Fall 100% 90%75%50%25%Like the airline metaphor, most days there’s enough supply in our baseload generation to meet demand; yet a few times a year, energy demand spikes and we have to call in peaking resources. These days – represented here in red - typically fall on unseasonably hot or cold days of the year, or when generation resources are off-line for maintenance. In the past, the utility industry has added the metaphorical “extra flight” in the form of building peaking power plants, instead of putting incentives in place that encourage users to cut back during those few days a year.WinterSpringSummerFall
5Demand Response benefits The benefits of demand response are numerous. First and foremost: this is a business decision. The revenue stream that businesses can generate through participation is often substantial, depending on how much energy they can commit to reduce. But the benefits don’t stop there: Demand response:Helps your community by working to prevent blackouts and brownoutsHelps the environment by alleviating the need to build new fossil-fuel burning peaking power resourcesIt also helps in more subtle ways – like providing a proof point that your business/organization is a good corporate citizen, which can have valuable marketing/PR valueEconomicOperational ReliabilityCommunity
6Federal Government Sites and DR Challenges Security is paramountAdministrative infrastructure“Red Envelope” vs bill creditsSite uptime typically a matter of strategic national importanceAs opposed to a more straight forward ‘business decision’ in other settingsIntegration across buildings, campuses, EMS systems, etc.
7Public Utility Service Emergency Planning and Operations GSA’s National Security Guidance for Federal Agencies and Federal Building OperatorsPublic Utility Service Emergency Planning and OperationsCode 1 – “Normal Operations.” As implied, at this level the building can be run normally.Code 2 – “High Demand Possible.” This means the regional power grid is expecting a higher than normal load.Code 3 – “High Demand Warning.” When this alert is received, low-impact curtailments should be implemented, i.e., measures that have been identified as having minimal effect on the tenants.Code 4 – “Demand Curtailment.” At this stage, building load reductions should be implemented. Tenants should be notified and asked for their cooperation.Code 5 – “Maximum Effort.” At this level, building operators and their tenants should be doing everything possible to reduce electric load, particularly in the afternoons.
8DESC and Demand Response Representative Federal / MilitaryDR Customers (totaling 55 MW):PentagonNational Reconnaissance OfficeUS Naval AcademyFort Detrick, MDFort Belvoir, VADefense Intelligence AgencyNational Maritime Intelligence CenterUS Navy Weapons Station, VAUSMC Henderson Hall, VAFort Totten, NYGeneral Services AdministrationDepartment of TransportationDESC encourages federal and military installations to do their part to use energy more efficiently, and demand response programs are a great way to meet that objective.Larry Fratis,Head of the Electricity Branch for DESC
9Demand Response at Defense Intelligence Agency Today I’d like to provide you a bit of background on today’s energy crisis. Energy and carbon management have become an executive-level discussion at every company and institution around the world.
10Demand Response – DIA Motivation “Greening DIA” Initiative - Internal program implemented to support the long-term cause of energy independence and natural resource conservation by increasing energy efficiency of enterprise operations.Greening Initiative GoalsReduce energy intensity by 5,000 BTU/SF annually (2.5%)Reduce water intensity by 2.0 GAL/SF (2,500 KGAL) by FY2010Reduce greenhouse gas emissions by 5,000 MTCE by FY2013Quadruple recycling by increasing FY2010 output to 100 tons
11Demand Response – DIA Experience ChallengesSecure, mission-driven 24x365 facilityMultiple EMCS vendorsReliant on local authorities for DC ELRP rules of engagement (air permitting)Real-time monitoringProcessDIA reviewed multiple DESC compliant vendors across selection criteria (Fall 2008) before choosing EnerNOC (Jan 2009).Multiple follow up meetings with EnerNOC personnel to scope curtailment strategies and work through potential challenges.
12Case Study: Defense Intelligence Administration DR Participating in DR program provides economic benefit while helping DIA meet initiative goalsLocation Washington, DCProgram EnerNOC Demand Response / PJMDR Strategy Curtailment onlyCurtailment Strategies Air handler temperature and fan speed changesVAV unitsLighting changesShut down redundant elevatorsShut down other non-essential processesDR Supports “Greening DIA” InitiativeBy contributing toward grid stability, DIA participation in demand response supports over-arching goals of energy independence and natural resource conservation.
13Gregg Dixon 75 Federal Street Suite 300 Boston, MA