1. CALIFORNIA ENERGY COMMISSION Status Report Demand Responsive Building Program William J. Keese California Energy Commission March 30, 2001

2. CALIFORNIA ENERGY COMMISSION

3. CALIFORNIA SUMMER 2001 Forecasted Peak Demand - Resource Balance (in megawatts) Temperature Probability1-in-10 Peak Demand + 7% Reserve61,125Incl. Anticipated growth Existing Resources: * Existing ISO Control Area Resources45,025 * Net Imports ISO Control Area 4,834Includes Pacific Northwest * LADWP Control Area Resources 8,198 * Imperial Irrigation District 875 * Far North - Eastern Sierras 277 Total Existing Resources59,209 Expected Outages-3,050* *Historic Average. Current outages are running 250% above average. Resources Available to Meet Load -4,966 Additional Resources with On-Line Potential for July 2001: * Approved CEC Projects 1,262 * SMUD McLellan CT Upgrade 22 * ISO Peaking Facilities 1,133 * Renewable Energy Projects 80 * Rerate/Restart of Existing Thermal and Renewable Projects 1,244 Potential Resources Existing Projects 3,741 New Generation with On-Line Potential for July 2001: Emergency Peaking Facilities 1,000 CEC Approval Pending 45 (United Golden Gate) LADWP Harbor-Valley 267 New Renewables/Distrib. Gen. ? Total New Generation Identified 1,312 TOTAL GENERATION ADDITIONS SUMMER 2001 5,053 Source: CA Energy Commission and Electricity Oversight BoardFebruary 8,2001

4. CALIFORNIA ENERGY COMMISSION

6. What is a Demand Responsive Building System? EMS or building manager who responds to price or emergency signals by reducing building loads ( HVAC & lighting) Building manager takes advantage of opportunities to sell load reductions to aggregators, UDC’s, or the ISO

7. CALIFORNIA ENERGY COMMISSION CEC Program Objectives Empower customers to save money and reduce peak reliability problems next summer Encourage customers to install control systems that can respond to price or “emergency” signals and communicate load reductions achieved to ISO Install systems capable of saving 50 MW in response to signals by June 1, 2001

8. CALIFORNIA ENERGY COMMISSION CEC Program Approach Provide metering equipment and assistance to enable customers to participate in ISO/utility programs using recruitment contractors Provide direct grants to larger customers who have the engineering knowledge to install own systems

9. CALIFORNIA ENERGY COMMISSION Contracts Awarded

10. CALIFORNIA ENERGY COMMISSION Grants Awarded

11. CALIFORNIA ENERGY COMMISSION Why Install Demand Responsive Systems? Cheaper than building emergency backup ($50-250/kw installed) Markets do not work without demand responsiveness to respond to high prices Need to monitor and control energy costs and to automate EMS responses

12. CALIFORNIA ENERGY COMMISSION New Funding Possibilities SB 5x has $70 million in funds for new demand responsiveness programs AB 970 programs were over-subscribed by $5 million so new funds will augment existing applicants first

13. CALIFORNIA ENERGY COMMISSION For More information Review program guidelines at www.energy.ca.gov/efficiency/ab970 Contact Mike Messenger at 916-654-4774 Contact your local utility for information on prices and terms offered for delivering load reductions