Beyond Pilots… A National Town Meeting on Demand Response Washington DC June 2-3, 2008 Lee L. Smith, NYSERDA

NYSERDA Mission Design & Implement Programs Current Programs: Future Programs: - SBC- EEPS - RPS- RGGI - DOE SEP- CAIR Support Regulators –State Purchasing/Appliance Standards –State Energy Code, DOS/USDOE grants –Green Building Tax Credit Policy Implementation & Assistance –Governors 15 x 15 initiative –Mayors 30 x 30 initiative –Executive Orders Use innovation to solve New Yorks toughest energy and environmental problems in ways that stimulate the States economy

The Westchester County $mart Homes Pilot

Westchester Smart Homes Pilot Who? 150 ECONnergy residential customers. What? Install Advanced Meters and used meters with Time of Use (TOU) block rates in conjunction with controls, CFLs, and education-test potential energy use patterns and savings Where? Westchester County. When? , Pilot length two years. Why? To test the influence that time-of-use pricing has on residential energy use patterns and demonstrate usefulness of energy efficiency improvements.

Pilot Metrics – through May 2006 –Participants have saved a total of about $14,000 since the Pilots inception –Active Participants (103) Savings ranged from $299 to ($95), mean was $ participants had a (+) savings totaling $11,526 4 participants had a (-) savings totaling ($126) –Participants who dropped out (43) Savings ranged from $374 to ($65), mean was $66 30 participants had a (+) savings totaling $2,733 8 participants had a (-) savings totaling ($140) –Past performance is not indicative of future results

Lessons Learned Comparing costs, block rate to traditional utility rate problematic –MSC/MAC - supply related costs/non-supply related costs Meter technology choice/reliability important –Meter reliability/customer tolerance Competitive metering/billing issues –Meter data interchange between utility and commodity provider for billing purposes, confusing billing Savings –Increased data handling charges greater than customer savings

Beyond Pilot… Deregulated metering did not have anticipated results Generic AMI Proceeding for all Utilities Utilities in NY required to files plans for AMI Technical conference held in April Develop minimum standards for AMI New programs will wait for AMI proceeding to be completed in NY Integrate meter capability with Direct Load Control capability for Demand Response

Cooling Re-Commissioning Pilot C&I EE Pilot initiated in May 2000 reduce summer demand (Summer 2000) Program developed as a fast track effort Used existing NYSERDA consulting capability Investigated demand reduction measure EE, focus on cooling measures Implementation 3 phase –Study –Capital incentives –Site visit

Cooling Recommissioning Pilot Who? Any NY state customer eligible for SBC funding, reduce summer demand. What? Open enrollment, first come-first served Study identified measures Capital incentives to implement study recommendations Site visit to verify project implementation Where? Statewide, all customers of Investor Owned Utilities (customers pay into SBC funding) When? Summer 2000 Why? To address growing summer demand in New York, particularly downstate

Pilot Metrics Program achieved 8.6 MW demand reduction ($1.9M spent, budget of $3M) Annual energy savings of 24,700 MWh Program provided foundation for full scale Peak Load Reduction Program the following year

Lessons Learned Developed understanding of energy issues, demand vs energy efficiency Incentive structure – performance based, $/kW Helped develop DR knowledge for third party providers Project development/delivery take time! Project development/delivery take time! Especially NYC

Beyond Pilot… Developed full scale Peak Load Reduction Program in 2001, still in place Implemented both permanent and curtailable DR projects, summer peak kW focused Coordinate with NYISO DR programs Helped expand NYISO Demand Response Service Providers, currently 30+ Annual program since 2001, enabled 500MW DR Evolving to Direct Load Control support, Ancillary Services market for load

Contact Information Lee L. Smith x 3313 NYSERDA 17 Columbia Circle Albany NY 12203