1. Slide 1 B O N N E V I L L E P O W E R A D M I N I S T R A T I O N NEET Work Group 6 Update: BPA Demand Response April 21 st Karen Meadows Pam Sporborg

2. Slide 2 B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Why is BPA Interested in Demand Response? Continued load growth is leading to a forecasted capacity shortage in ~2013. Wind integration, fish operations, and other operational constraints are limiting the flexibility of the hydro system to meet peak demand. Demand Response is a proven, low-cost resource that can help BPA meet projected Capacity Constraints.

3. Slide 3 B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Capacity Constraint Scenarios

4. Slide 4 B O N N E V I L L E P O W E R A D M I N I S T R A T I O N BPA Demand Response Guiding Principles Collaboration & Partnership: BPA will work collaboratively with our Public Utility Customers to develop and implement Demand Response pilots and programs Balance Cost and Risk: BPA will work to implement cost-effective, least- risk DR solutions. However, BPA recognizes that this may frequently require trade-offs between these two goals. Regional Leadership Role: BPA will lead by example in the region, though information sharing, collaborative research efforts, and demonstrating state of the art technology. This includes integrating Demand Response into the Smart Grid. Reliability & Flexibility: BPA’s Demand Response resource will primarily aim to improve system reliability and enhance flexibility. Environmental Stewardship: BPA will consider the environmental impacts of each DR Option.

5. Slide 5 B O N N E V I L L E P O W E R A D M I N I S T R A T I O N BPA Activities in Demand Response Past Pilot Projects include: –Non-Wires Solutions Pilot (direct load control, back up generation) –Irrigation Pilot –Ashland Pilot (Direct Load Control) –Demand Exchange (Wholesale) Demand Response Potential Assessment –Developed DR Supply Curves that will be inputs into the Resource Program Planned DR Activities –Research Action Plan developed –Pilot programs to test impacts and costs of various DR strategies to meet Capacity Constraint Scenarios –Pilot programs to build regional capability

6. Slide 6 B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Planned Pilots 2009 Residential Direct Load Control 2009 Open ADR for large commercial 2010: Dynamic Pricing Pilot 2010: Industrial Pilot Considering Irrigation and Wind Integration Pilots

7. Slide 7 B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Open-Auto Demand Response Technology Demonstration Partnership with Lawrence Berkley National Labs and Seattle City Light First test of Open-ADR for winter peaks Open-ADR technology interfaces with the building’s Energy Management System to enter a custom, pre- programmed shed when notified Tested five commercial sites with four events per site, including one Day-Of event Buildings shed 8-19% of total load for morning 7-10am peak, with little to no rebound

8. Slide 8 B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Open ADR Example Event: Seattle Municipal Tower

9. Slide 9 B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Open-ADR Building Performance *Note: Target T0637 data not downloaded from meter in time for presentation. Results expected to be similar to Target T1264.

10. Slide 10 B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Residential DLC Pilot Project Overview: Work with 3-4 Utilities Leverage investments in Automated Meter Reading (AMI) systems Control both hot water heaters and thermostats. Address both summer and winter peaks Utilize temperature setback instead of duty cycling 100-300 homes in first year; 700-2,500 homes in second year Project Goals: Develop strategies for BPA and utilities to work collaboratively to achieve demand response in the Northwest. Test integrating demand response technologies with AMI systems in the residential sector through a DLC program. Test recruitment strategy, customer education, and persistence Test costs and impacts (kW) for each capacity constraint

11. Slide 11 B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Next Steps Expand Residential DLC Pilot Continue testing Open-ADR technology 2010: Plan & launch Dynamic Pricing Pilot 2010: Plan & launch Large Commercial & Industrial Pilot

12. Slide 12 B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Where are opportunities for Regional Collaboration? Value in sharing ideas and results across regional utilities Leverage investments in research and pilots Share results, lessons learned Forum to bring in experts from other regions