Providing Options: Program Design Focusing on Customer Choice
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1 Providing Options: Program Design Focusing on Customer Choice Jason Hall, Colorado Springs Utilities Greg Wassel, Franklin Energy November 14, 2018
2 Colorado Springs Utilities Four-service utility in Southern Colorado Electric, Gas, Water, Waste Water Serve roughly 800,000 meters Just over 200,000 electric meters Colorado Springs Utilities owns and operates generation, transmission, and distribution
3 Colorado Springs Utilities Strategic Initiatives Retirement of Drake Power Plant Investing in transmission to enable use of DG and micro-grids Regional Transmission Organization (RTO) Better coordinate, control and monitor regional transmission network Advanced Metering Infrastructure Deployment Focus on network instead of the metering Smart Grid Initiative Hiring employees and piloting projects to plan for future Smart City Smart lights, transportation, parking, internet access
4 Energy Vision Renewable Energy as generation and additional offerings Demand Response Programs Electric and Gas Smart Thermostats Voltage Reduction (CVR) Battery Storage Home Energy Management (HEM) Automated Distribution Management Operating more efficiently, like our customers
5 Program Drivers and Goals Program Intent Drake Plant closure Manage periods of highest electrical demand 40 MW of peak load reduction by 2020 Program Design Peak period events (up to ten 4-hour events plus initial and annual test) April through September, Monday through Friday, Events start 11 AM-6 PM Summer 2018 through 2020
6 Customer Options Overview Participation Methods Enrollment Process Incentives Aggregation Notifications Customers
7 Eligible Participation Options Customers Colorado Spring Utilities Customer on a non-residential rate with a demand charge Minimum curtailment 5% of total load Manual DR Auto DR Distributed Generation Must meet Tier IV EPA Requirements Permitted to operate in non-emergency situations
8 Enrollment Options Methods Online In-field Advisors Key Account Managers Aggregation Individual Accounts Multiple Accounts with same Owner
9 Incentive Goals Ensure consistent and reliable load availability for events Pay out per season regardless of number of event calls Pay incentives based on satisfying the committed load Maintain flexibility for Partners who need to update their commitment Key consideration: Mutual responsibility and mutual benefit Colorado Springs Utilities will need to call events necessary to meet the goals Partners will need to preform according to their commitment
10 Incentive Structure Paid Annually - $50 per kw of Committed Load Performance must be within the lesser of 10% or 50 kw Underperformance or opt-out will result in 10% penalty each event Partners who make a change may retroactively apply Up to 3 consecutive events in 1 st year Changes possible in year 2 and beyond with no retroactive application
11 Non-Monetary Incentive Energy Advisor Initial Audit and Support Data Presentment
12 Savings Methodology X of Y Methodology: 5 of 20 Calculated baseline is adjusted to event day performance prior to the start of the Event Period Baseline can be adjusted up or down to match current load but will be adjusted no more than 20% Adjustment will be based on performance greater than an hour prior to event start. 8:00 AM 9:00 AM 10:00 AM 11:00 AM 12:00 PM 1:00 PM 2:00 PM 3:00 PM 4:00 PM 5:00 PM 6:00 PM Calculated Baseline Day of Adjustment Adjusted Baseline
13 Notification Options , text messages, phone calls EVENT REMINDER NOTIFICATION From: Colorado Springs Utilities Sent: Thursday, August 16, :30 PM To: Kate Servais Subject: Colorado Springs Utilities - Peak Savings Event reminder for August 16, :30PM to 3:30PM Hi Kate Servais, This is a reminder that a Peak Savings Event is scheduled for today. The Event will run from 2:30PM to 3:30PM Mountain Time. Please prepare to achieve your Committed Peak Load Reduction by implementing your chosen reduction strategies by the start of the event. This includes any staff notifications that you may require. If you have questions or issues please contact the Program Team at Thanks! Pre-Event (first) Notification, sent out 8 to 24 hours prior to event (test or actual) Event Reminder Text Notification, sent out 1 hour prior to event Event Complete Text Notification sent out at end of event
14 Future: Residential Addition Using same program name for brand awareness Additional smart thermostat component Diversify load Cross selling opportunities
15 Program Design Considerations Keep the program simple and easy to understand Ensure that customers can participate in the way that is comfortable to them Provide options in every major aspect of the program Ensure that responsibility and reward are equally shared Remain flexible and fair regarding the baseline calculations
16 Questions? Jason Hall, P.E. Colorado Springs Utilities Greg Wassel, CEM Franklin Energy
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