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Case Study: DR at Defense Intelligence Agency

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1 Case Study: DR at Defense Intelligence Agency
Gregg Dixon, SVP, EnerNOC Jonathan Crittenden, Mechanical Engineer, PE, Defense Intelligence Agency Introduction remarks. July 14, 2009

EnerNOC Overview Founded in 2001, EnerNOC is the largest demand response (DR) provider focused exclusively on the commercial and industrial sector. BILATERAL CONTRACTS – REGULATED UTILITIES Burlington Electric Department (VT) 10 MW, 4 year contract Idaho Power 65 MW, 5 year contract Maryland IOUs Allegheny Power, Baltimore Gas & Electric, Delmarva Power, Pepco 250 MW, 4 year contracts Pacific Gas & Electric 40 MW, 5 year contract Public Service Company of New Mexico 30 MW, 10 year contract Puget Sound Energy Pilot Program, 2 year contract Salt River Project 50 MW, 3 year contract San Diego Gas & Electric 25 MW, 10 year contract 25 MW expansion (pending regulatory approval) Southern California Edison 40 MW, 2 year contract 110 MW extension (pending regulatory approval) Tampa Electric Company 35 MW, 4 year contract Tennessee Valley Authority 110 MW, 3 year contract Xcel Energy (Colorado) 44 MW, 8 year contract ISO-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

3 Demand 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.

4 Demand 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. Winter Spring Summer Fall

5 Demand 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 brownouts Helps the environment by alleviating the need to build new fossil-fuel burning peaking power resources It 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 value Economic Operational Reliability Community

6 Federal Government Sites and DR Challenges
Security is paramount Administrative infrastructure “Red Envelope” vs bill credits Site uptime typically a matter of strategic national importance As opposed to a more straight forward ‘business decision’ in other settings Integration across buildings, campuses, EMS systems, etc.

7 Public Utility Service Emergency Planning and Operations
GSA’s National Security Guidance for Federal Agencies and Federal Building Operators Public Utility Service Emergency Planning and Operations Code 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.

8 DESC and Demand Response
Representative Federal / Military DR Customers (totaling 55 MW): Pentagon National Reconnaissance Office US Naval Academy Fort Detrick, MD Fort Belvoir, VA Defense Intelligence Agency National Maritime Intelligence Center US Navy Weapons Station, VA USMC Henderson Hall, VA Fort Totten, NY General Services Administration Department of Transportation DESC 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

9 Demand 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.

10 Demand 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 Goals Reduce energy intensity by 5,000 BTU/SF annually (2.5%) Reduce water intensity by 2.0 GAL/SF (2,500 KGAL) by FY2010 Reduce greenhouse gas emissions by 5,000 MTCE by FY2013 Quadruple recycling by increasing FY2010 output to 100 tons

11 Demand Response – DIA Experience
Challenges Secure, mission-driven 24x365 facility Multiple EMCS vendors Reliant on local authorities for DC ELRP rules of engagement (air permitting) Real-time monitoring Process DIA 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.

12 Case Study: Defense Intelligence Administration DR
Participating in DR program provides economic benefit while helping DIA meet initiative goals Location Washington, DC Program EnerNOC Demand Response / PJM DR Strategy Curtailment only Curtailment Strategies Air handler temperature and fan speed changes VAV units Lighting changes Shut down redundant elevators Shut down other non-essential processes DR Supports “Greening DIA” Initiative By contributing toward grid stability, DIA participation in demand response supports over-arching goals of energy independence and natural resource conservation.

13 Gregg Dixon 75 Federal Street Suite 300 Boston, MA

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