1. + Customer-side Smart Grid Technologies How will they change utility offerings? Karen Herter, Ph.D. Association of Women in Water, Energy, and Environment Workshop May 22, 2012

2. + Smart Grid Elements 2

3. + What does the “Smart Grid” do for customers? 1. Real-time Information Improves understanding of energy use 2. Time-based Incentives Accurately rewards energy management behaviors 3. End-use Automation (cost-effectiveness) Simplifies energy management by customer or utility 3

4. + Customer-side Smart Grid Technologies Monitor energy use site or appliance Display electricity prices Estimate energy costs Notify customers of utility price or event signals Automate response to utility price or event signals Centralize customer control of appliance activity

5. + 1. Real-time Information Customers want personalized information & advice Smart Meters = DATA TO UTILITY Improved customer service by bill, phone or Internet Customer load shapes  personalized recommendations Program EVs, spas, and pool pumps for off-peak Install more efficient AC unit Offer free site visits for outliers? Energy Displays = DATA TO CUSTOMERS Many potential applications Real-time household electricity use Customer-specific electricity pricing Bill calculators with “what-if” scenarios Event notification Via mobile app, PC, or thermostat display 5

6. + Bill Comparison 6 Start Date7/12/2011End Date8/10/2011 Standard Rate: RSG Sherlock Holmes Billing Month: August221B Baker Street Account Number: 1234567 Folsom, CA 95630 Summary Bill Comparison Critical Peak Days This Month Thursday, July 21, 2011Standard Bill$96.71 Thursday, July 28, 2011Summer Solutions Bill$77.42 Congratulations you saved 19.9% on your bill:$19.29 Plus you earned from Auto Temp Control:$8.00 Total savings this month:$27.29 Your Bill on Standard Rate Bill Component Monthly KWh Price per kWhCharges Base Usage700$0.1045$73.15 Base-Plus Usage88$0.1859$16.36 Electricity Use Subtotals788$0.1136$89.51 System Infrastructure Fixed Charge$7.20 Standard Rate Charges$96.71 Your Bill on Summer Solutions Rate Bill Component Monthly KWh Price per kWhCharges Off-Peak Base Usage700$0.0721$50.47 Off-Peak Base-Plus Usage46$0.1411$6.49 On Peak Usage38$0.27$10.26 Critical Peak Usage4$0.75$3.00 Electricity Use Subtotals788$0.0891$70.22 Summer Solutions Rate Charges788$77.42 Summer Solutions rate participants received a Bill Comparison Report, showing bill savings or losses compared to what they would have paid on the Standard rate

7. + PC Energy Display 7

8. + 8

9. + Thermostat Energy Display 9 Screen with instantaneous kW and daily kWh Scroll through appliances one at a time for Appliance group Can be made default screen

10. + 2. Time-Based Rates Rewards are directly proportional to actions TOU-CPP rates have been found to be particularly effective especially when paired with thermostatic automation Added benefit of daily peak load reduction (not shown here) 10 N = number of studies

11. + 11 Example TOU-CPP Rate

12. + 3. End-use Automation More cost-effective when paired with time-based rates Rate structure determines the technology Time-of-use rates  Programmable thermostats & timers Dynamic pricing  Communicating thermostats & switches Provide technology assistance and financing options Rebates where cost-effective Options to purchase, rent, or borrow technologies Assistance with installation and use Market determines technology form factors & features Standard protocols to enable plug and play technologies Ideally utilities recommend, customers choose 12

13. + Putting it all together… Information + time-based rates + automation 13 Both energy and peak load savings on non-event days Significant load shed during events, with some pre-cooling and rebound Even a small percentage of participating customers (10-20%) could have a substantial effect on the system load shape

14. + Information isn’t enough those with information only didn’t do much 14 Values in bold indicate a statistically significant difference from “Neither option” Statistically significant kW savings over ATC -3% -9% -10% -8% -8% -36% -53% -58% -8% -23% -24% “Neither option” = information only Peak and event load reductions greatest for Dynamic Rate

15. + Information enhances savings but those without real-time information do well too 15

16. + Studies Currently In Progress ARRA SGIG Consumer Behavior Studies 16

17. + Thank you! Information in this presentation based on: 2008 Small Business Summer Solutions Study report 2010 Residential information & controls technology review 2010 Residential focus group summary 2011 Residential Summer Solutions Study report To download these and other reports visit: www.HerterEnergy.com 17

18. + 18 Contact info: Karen Herter Herter Energy Research Solutions www.HerterEnergy.com 916.397.0101