Presented by Eric Englert Puget Sound Energy September 11, 2002
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1 Results from PSE s First Year of Time of Use Program Presented by Eric Englert Puget Sound Energy September 11, 2002
2 Puget Sound Energy Overview 973,489 Total Electric Customers 908,949 are AMR Capable Meters 271,556 Electric Customers on Time of Use Rates (29%) 168,933 Electric Customers on TOU Info (17%) 64,540 Total Electric Non-AMR Meters
3 PSE Service Territory Rural 15% Metropolitan 20% Seattle Bellevue 65% Suburban
4 Integrated Technology Investments in place Real Time Usage Data ConsumerLinX (Customer Information System) Real Time Pricing Data Portal
5 AMR Deployment AMR Operations Center ConsumerLinX System Controller Control Station Internet Pole Top Processor Customer Meters And Endpoints 10
6 Customer insight: Unaware of: how and why the cost to provide electricity varies during the day, or from time to time how to best change energy usage patterns Interested in: protecting the environment fair rates for all, including dynamic pricing Open to dynamic pricing, IF: the impact on THEM, personally, is clear and simple the community benefits
7 The Phases of Personal Energy Management Phase I: November 2000 Franchise-wide information campaign 400,000+ target customer program Four-period time-of-use framework Phase II: May ,000+ customers receive TOU rate differentials Customers may opt off by calling PSE Phase III: September 2001 Added 20,000 C/I customers Extend Pilot through winter to June 2002
8 Personal Energy Management Bill Supplement
9 Personal Energy Management Web Page
10
11 Web Capabilities Customers on the pilot get personal online reports of energy use. (Other customers also get information) Usage (KWh) Day Prior Usage Chart Expensive (6am to 10 am ) Economy (10am to 5pm) Expensive (5pm to 9pm) A Bargain (9pm to 6am) Fri Sat Sun Mon Tues Wed Thu But, after a few weeks... Note that this customer s s use is primarily in expensive time periods
12 Web Capabilities This customer has shifted use to a more regular pattern reducing the need for PSE to buy from more expensive, less efficient generation sources Usage (KWh) Day Prior Usage 20 Chart Fri Sat Sun Mon Tues Wed Thu Usage (KWh) Day Prior Usage Chart Fri Sat Sun Mon Tues Wed Thu Expensive (6am to 10 am ) Economy (10am to 5pm) Expensive (5pm to 9pm) A Bargain (9pm to 6am) Expensive (6am to 10 am ) Economy (10am to 5pm) Expensive (5pm to 9pm) A Bargain (9pm to 6am)
13 Personal Energy Management Summer Pricing
14 357 Restaurant Sites on Time of Day Rates in November % 4% Percent of Increase on TOD rates 3% 2% 1% 0% -1% -2% -3% -4% -5% 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000
15 Customers Perceptions About PEM Program Information 100% 87% 90% 85% 99% 80% 60% 40% 20% 0% Meaningful & Useful Easy to Understand Believable Know When TOD Periods Occur
16 Have Customers Taken Action to Alter Energy Use? 100% 91% 80% 80% 60% 40% 20% 20% 9% 0% Taken Action No Action Information TOU Pricing
17 Types of Actions Taken by Customers to Alter Energy Use 100% 89% 80% 60% 40% 43% 41% 49% 20% 0% 4% 8% Shift use Reduce use Buy efficient equipment 1% 1% 1% 2% Install more insulation Use backup heat more Information TOU Pricing
18 Overall Satisfaction With TOD Pricing Program 90% 85% Percent of TOD Pricing Customers 80% 70% 60% 50% 40% 30% 20% 10% 0% 9% Total Satisfied (5-7) Total Dissatisfied (1-3)
19 What steps have you taken to alter energy use at your home? 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 88% 89% 91% 89% 51% Electric Space & Water Heat 32% 43% 7% 5% 6% Electric Space Only Electric Water Only 51% 9% Electric Lights & Appliances Shift Usage of Appliances Use less, turn off Purchased more Efficient
20 General Residential Customer Reaction 67% - TOU is a good idea 66% - reduces need for power plants 64% - TOU pricing is fair 72% - concept is easy to understand 37% - should pay the same price no matter what time of day they use it
21 How TOD Program Results Were Measured Customer opinions, perceptions, energy-saving actions taken: TOD Pricing customers -- telephone survey in July TOD Information-only customers -- telephone survey in April Load shift impact (switching usage from peak periods to off-peak): Monthly comparison of actual TOD Pricing customer usage by time block with estimated But-for usage (what would have been used in the absence of the TOD program, based on a comparison group of TOD Information-only customers). Controlled for differences in pre-program energy use, housing type, and rate class. Conservation impact (reduction in overall total usage): Calculated as the difference between total monthly energy use in 2001 and weather-adjusted usage for the same month in Total percentage conserved by TOD customers separated into portion attributable to TOD pricing and portion for general conservation that would have happened anyway. General conservation component uses the total percent conserved by Non-TOD customers as a proxy for what TOD Pricing customers would have conserved. Conservation attributed to participation in TOD program is the difference between the total percentage conserved by TOD Pricing customers and by non-tod customers.
22 Sample Size March 2002 Residential Sample Size Load Shift Effect TOU Rate 213,066 Info Only 54,357 Other - Conservation Effect TOU Rate 195,776 Info Only 49,764 Other 196,928
23 Load Shift Impacts by Pricing Blocks 8% Percent of "But-For" Time Block Use Shifted 6% 4% 2% 0% -2% -4% -6% Morning Midday Evening Economy -8% Jun '01 Jul '01 Aug '01 Sep '01 Oct '01 Nov '01 Dec '01 Jan '02 Feb '02 Mar '02 Graph represents TOD Pricing group actual energy use compared to But-For usage based on Information-only comparison group
24 Time-of-Day Rate Customers compared to Info-Only, Percent of Load Shifted out of Morning Peak and Evening Peak Hours 7% 6% 5% 4% 3% 2% 1% 0% Morning Peak Evening Peak June July August September October November December January February March April May June July Time of Day rate customers shifted over 5% of their load out of the Morning and Evening time periods compared to customers who were on the Info-Only program, the shift out the Mid-Day period was over 2.5%.
25 Schedule 17 - Electric Water and Space Heat Morning Mid-day Evening June July August September October November December January February
26 Corresponding Own-Price Elasticities Are Higher (in Absolute Terms) During the Winter Analysis by Charles River Associates Own-Price Elasticity Morning Midday Evening Economy Summer Fall/Spring Winter
27 Shifted out of all On Peak Hours kwh per Residential Customer per month June July May August September October November December January February March April July June
28 TOD Pricing Pilot Conservation Impact -8% Percent of 2000 Total Monthly Use Conserved by TOD Pricing Participants -7% -6% -5% -4% -3% -2% -1% Conservation due to TOD Price Conservation due to Other Factors 0% Jun '01 Jul '01 Aug '01 Sep '01 Oct '01 Nov '01 Dec '01 Jan '02 Feb '02 Mar '02 Graph represents difference between current monthly (post-program) energy use and weatheradjusted 2000 monthly (pre-program) use. Brattle Report.
29 Net Conservation Effect Percentage by Dwelling Type for Schedule 27 - Electric Lights and Appliances 3% 0% MultiFamily Single Family -3% -6% June July August September October November December January February
30 Peak Capacity (MW) Savings from Residential Customers on Time-of-Day Rates resulting from the Shifting and Conservation Effects MW October November December January February March April May
31 Summary of Results Shift Savings 5%-6% shift out of peak Conservation Savings 1% Peak Capacity Savings MW
32 Monthly Residential Customers Leaving TOU Rate Program May July September November January March May
33 Management Benefits Redefine conservation and load management programs Lower turn over, lower training costs & fewer missed days Rallying point for employees Meaningful purpose for change New focus - Customer Experience
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