Demand Response Task Force

2 2 Outline  Overview of ERCOT’s role in the CCET Pilot  Overview of Stakeholder Process – What’s been done to date?  Questions – What is the Demand Response Program? What questions need to be answered to move forward?  What’s next?

CCET Pilot – ERCOT Role

4 4 CCET Pilot ERCOT is participating in the CCET Demand Response Pilot –Benefits the market by identifying possible issues well in advance of the desired settlement implementation date –Allows Demand Response to be implemented sooner than by not participating in the Pilot

5 5 ERCOT CCET Pilot Role ERCOT’s Role in the CCET Pilot In order to support the CCET DR Pilot, ERCOT will perform the following tasks: –store the interval data for all demand response sample points, validate the completeness of interval data for all sample points (i.e., identification of gaps in the data), and store survey data (number of appliances, square footage, etc.) for the sample points. –provide monthly reports to TSPs which will include a summary of sample data points with missing data. ERCOT will work with the TSPs to resolve any missing data issues. –provide the raw interval data to the REP of record and to other REPs participating in the pilot subject to all data confidentiality rules. –investigate the viability of developing an internal process for retrieving interval data directly from a TSP website.

6 6 ERCOT CCET Pilot Role ERCOT’s Role in the CCET Pilot In order to support the CCET DR Pilot, ERCOT will perform the following tasks: –create lagged dynamic shapes for each REP for each TSP service area (Dallas and Houston). –perform preliminary analysis to define the internal process needed to import the lagged dynamic shapes into the settlement system. –perform preliminary analysis to determine possible algorithms for determining the estimated demand reduction for demand response programs. –perform preliminary analysis to determine the frequency for providing updates to ERCOT containing the population of ESI- Ids on each demand response program, sample refresh timelines, and statistical sampling methodology (stratified sampling, cluster sampling, comparison of control group to non- control group, etc.).

7 7 Outline Overview of ERCOT’s role in the CCET Pilot  Overview of Stakeholder Process – What’s been done to date?  Questions – What is the Demand Response Program? What questions need to be answered to move forward?  What’s next?

Market Process – What has been done to date?

9 9 PRR-736 and LPGRR-027 PRR-736 was drafted by the Profile Working Group (PWG) –Summary of PRS Discussion On 09/20/07, the Profiling Working Group (PWG) Chair informed PRS that the PWG will be discussing various ways of including a DR program code in to the Load Profile ID code on 09/25/07. Participants stated that they need more time to review this PRR to determine how it may affect their systems. –On 09/20/07, PRS voted unanimously to table this PRR until the next PRS meeting. –On 10/16/07, COPS requests that this PRR remain tabled until PWG, TXSET, and ERCOT staff have completed their analyses and have reached consensus on an implementation process. LPGRR-027 was drafted by PWG –May need changes based upon PRR-736 Creation of Demand Response Task Force – why we are here today!

10 PRR-736 and LPGRR-027 Roles / Responsibilities proposed in PRR-726 / LPGRR-027 ERCOT Roles Maintain a database used to identify the population of ESI IDs participating in DR programs –Communication of participation – using segment in Load Profile –Are there other options for how to communicate this? Facilitate the registration and implementation of DR programs in the Data Aggregation System Analysis / creation of Lagged Dynamic Profiles for DR programs Evaluation / approval of all requests for profile development for DR programs Provide RLDP data quality and availability report to appropriate CR / TDSPs Is there Market consensus on these roles / responsibilities?

11 PRR-736 and LPGRR-027 Roles / Responsibilities (high level) proposed in PRR-726 / LPGRR-027 CR Roles Register their DR programs with ERCOT Communicate to ERCOT which ESI IDs are on which DR program –Communication of participation – using segment in Load Profile –Are there other options for how to communicate this? TDSP Roles Install sample sites specified by ERCOT Maintain anonymity of DR samples sites Collection, validation, editing and estimate of sample meter data (Section 10.11) Provide interval data to ERCOT for each sample site Is there Market consensus on these roles / responsibilities?

12 Outline Overview of ERCOT’s role in the CCET Pilot Overview of Stakeholder Process – What’s been done to date?  Questions – What is the Demand Response Program? What questions need to be answered to move forward?  What’s next?

Demand Response Program – What is it? What questions need to be answered to move forward?

14 Demand Response – What is it? Proposed protocol definition (PRR736) Demand Response (DR) Changes in electric usage by end-use customers from their normal consumption patterns in response to changes in the price of electricity over time, or to incentive payments designed to induce lower electricity use at times of high wholesale market prices or when system reliability is jeopardized.

15 Demand Response – What questions need answered? CRs need to communicate to ERCOT which ESI IDs are on which DR program –Need to be associated with the corresponding Demand Response Load Profile for settlement purposes –Communication of participation – using segment in Load Profile –Are there other options for how to communicate this? Who else needs to know this information? –TDSP - ?

16 Demand Response – What questions need answered? Are Demand Response Load Profiles Private or Public information? Since Market Open, all load profiles have been classified as public information If Demand Response Load Profiles are classified as Private –Affects the data that is currently provided to the market –Who will receive the private data? REPs and QSEs? –Possible system changes for ERCOT –Possible system changes for Market Participants

17 Demand Response – What questions need answered? If decision is to use Load Profile Segment - –Who needs to know about the profile assignment to ESIIDs? ESIID Profile code goes to CRs not owning the DR Program? In transaction, forward to CRs not owning the DR Program? All switches go to CRs not owning the DR Program? TDSP ESIID Extract and Find ESIID with possible upcoming market changes? Are the ESIID to DR profile assignments monitored? If yes, by who? Where/when/does the reconciliation of the ESIID to DR profile assignment occur? If an ESIID is assigned to a DR profile and is active with a REP that does not own the program, should the ESIID be settled on the DR profile? –If yes, then LSEG calculations go to CRs not owning the DR Program (Load Extract)

18 Demand Response – What questions need answered? Transactional questions: –If an ESIID is assigned to a DR profile and is active with the DR REP and a switch transaction comes in, what happens? Today’s systems: –TDSP replies with DR profile to requesting switch REP. –Who ‘owns’ the responsibility of requesting the change to the profile? TDSP on completion of switch? CR requests to TDSP? ERCOT submits the MT issue to request change? –Is there a need to trigger the removal of a DR profile change transactionally? –Who ‘owns’ the responsibility of requesting the change to the DR profile? CR to request removal of DR profile with customer change? –What happens with CSAs?

19 Demand Response – What questions need answered? Transactional questions continued: –MVO Occurs with no change to DR Profile; MVI potential for CR to use CR-DR Program. –If SW or MVO (Options: Do nothing and CR settled on DR OR de- energized with DR Profile) on ESI, what happens to DR-Load profile assignment? –TDSP 814 Series: Populate with non DR profile code with DR to wrong CR? If no reject then CR2 is settled on CR1 DR Program. If rejected, code will indicate that the CR does not want to own program. If inactive/de-energized (LP change today allows this) = reject. –814_20 change to DR is only a change request – no changes to profile information –Do 814_20 Forwards look to pending CR Service Orders? –What happens when the 814_20 from TDSP goes to CR1 and ESIID is assigned to CR2 in Lodestar? –What happens for ESIIDs from Active to de-energized associated to a DR program profile?

20 Demand Response – What questions need answered? Other items to consider Transactional changes to accommodate –the triggering of the removal of DR profile change for a switch/MVI/MVO –How is effective date determined and by whom? No Future Dated Meter Reads Maintain ESIIDs assigned to programs for data aggregation Impacts to retail market via MarkeTrak and transactions Impacts to data aggregation processes Impacts to extracts/reports 15 minute interval data settlement

21 Outline Overview of ERCOT’s role in the CCET Pilot Overview of Stakeholder Process – What’s been done to date? Questions – What is the Demand Response Program? What questions need to be answered to move forward?  What’s next?

What’s next?

23 What’s next? Fill in during meeting

24 Questions? ON OFF