National Demand Response Action Plan David Kathan Office of Energy Policy and Innovation Federal Energy Regulatory Commission APPA National Conference APPA National Conference June 16, 2009

2 Statutory Requirements Section 529 of Energy Independence & Security Act of 2007 creates a new Section 571 of the National Energy Conservation Policy Act that requires FERC to: Conduct a National Assessment of Demand Response Conduct a National Assessment of Demand Response Due by June 19, 2009Due by June 19, 2009 Develop a National Action Plan on Demand Response Develop a National Action Plan on Demand Response Due by June 17, 2010Due by June 17, 2010 With DOE, submit National Action Plan Implementation Proposal to Congress With DOE, submit National Action Plan Implementation Proposal to Congress Due by December 17, 2010Due by December 17, 2010

3 National Assessment of Demand Response Subsection 571(a) of the National Energy Conservation Policy Act requires FERC to: Estimate nationwide DR potential, including data on State-by-State In 5 and 10 year horizons Estimate how much of this potential can be achieved by adopting specific policy recommendations Identify barriers to DR and recommend policies to overcome these barriers Status: Commission staff estimated potential by using a consulting team led by the Brattle Group Final report will be published within the next couple weeks

4 Demand Response National Action Plan Subsections 571(b) and 571(c) of the National Energy Conservation Policy Act require FERC to: Develop a National Action Plan on Demand Response Develop a National Action Plan on Demand Response Solicit input and participation from broad range of stakeholdersSolicit input and participation from broad range of stakeholders Including industry, state utility commissioners, and non- governmental groups Including industry, state utility commissioners, and non- governmental groups Identify requirements for technical assistance to statesIdentify requirements for technical assistance to states Identify requirements for a national communications programIdentify requirements for a national communications program Identify analytical tools and other support materialIdentify analytical tools and other support material

5 Demand Response National Action Plan Status Initial outreach completed in 2008 Initial outreach completed in 2008 FERC Staff Discussion Draft of Possible Elements of a Demand Response National Action Plan circulated for comment FERC Staff Discussion Draft of Possible Elements of a Demand Response National Action Plan circulated for comment Broad outreach and feedback on elements of National Action Plan almost completed Broad outreach and feedback on elements of National Action Plan almost completed

6 Demand Response National Action Plan Next Steps Release for public comment revised and expanded Discussion Draft Release for public comment revised and expanded Discussion Draft Conduct National Action Plan Technical Conference Conduct National Action Plan Technical Conference Publish for comment Draft National Action Plan by late 2009 Publish for comment Draft National Action Plan by late 2009 Publish National Action Plan by June 2010 Publish National Action Plan by June 2010

7 Demand Response National Action Plan Implementation Proposal Post-June 2010 FERC will work with the Secretary of Energy to develop a proposal to implement the National Action Plan Post-June 2010 FERC will work with the Secretary of Energy to develop a proposal to implement the National Action Plan Contents of implementation proposal could include: Contents of implementation proposal could include: Specific proposed assignments of responsibilitySpecific proposed assignments of responsibility Proposed budget amountsProposed budget amounts Agreements secured for participation from State and other participantsAgreements secured for participation from State and other participants Implementation proposal due to Congress by December 2010 Implementation proposal due to Congress by December 2010

8 Demand Response National Action Plan Possible Elements FERC staff is requesting input from stakeholders on the scope and possible elements of the National Action Plan. FERC staff is requesting input from stakeholders on the scope and possible elements of the National Action Plan. Scope: Scope: What should be the strategic vision and goals of the National Action Plan?What should be the strategic vision and goals of the National Action Plan? Which elements should be included in the National Action Plan to address the three objectives of the Act?Which elements should be included in the National Action Plan to address the three objectives of the Act?

9 Demand Response National Action Plan Possible Elements Assistance to States and Other Key Stakeholders Assistance to States and Other Key Stakeholders National Conference on Demand ResponseNational Conference on Demand Response Regional WorkshopsRegional Workshops Provision of Demand Response ExpertsProvision of Demand Response Experts Technical PapersTechnical Papers Demand Response Assistance ProgramDemand Response Assistance Program Demand Response Grant ProgramDemand Response Grant Program

10 Demand Response National Action Plan Possible Elements National Communications Program National Communications Program National Demand Response Mass Media Marketing CampaignNational Demand Response Mass Media Marketing Campaign Supplemental Communications Strategy for Creating PartnershipsSupplemental Communications Strategy for Creating Partnerships Integrated Energy Efficiency and Demand Response StrategyIntegrated Energy Efficiency and Demand Response Strategy

11 Demand Response National Action Plan Possible Elements Tools and Materials to Support Demand Response Tools and Materials to Support Demand Response Cost Effectiveness ToolsCost Effectiveness Tools Measurement and Verification ToolsMeasurement and Verification Tools Communication Standards for Consumer Demand InformationCommunication Standards for Consumer Demand Information Tools to Support the Provision of Ancillary ServicesTools to Support the Provision of Ancillary Services Nationwide PHEV StandardsNationwide PHEV Standards Lessons Learned from Demand Response Pilot ProjectsLessons Learned from Demand Response Pilot Projects Model Regulatory Provisions and State LawsModel Regulatory Provisions and State Laws Model Retail Tariffs Enabling Demand ResponseModel Retail Tariffs Enabling Demand Response Cost Recovery Methods for Enabling TechnologyCost Recovery Methods for Enabling Technology Web-based ClearinghouseWeb-based Clearinghouse Issue Papers on Controversial TopicsIssue Papers on Controversial Topics

Questions? David Kathan