Residential Real-Time Pricing: Increasing Savings and Performance

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1 Residential Real-Time Pricing: Increasing Savings and Performance Lawrence Kotewa Senior Engineer and Project Manager

2 Who is CNT Energy Parent, Center for Neighborhood Technology, is a 30+ year-old Chicagobased non-profit that works to build sustainable urban communities through research, advocacy and program implementation From 2000 through 2009 operated placebased demand response and residential real-time pricing programs CNT ran large energy efficiency rehab programs during the 1980s and CNT Energy now runs Cook County Energy Savers

3 Illinois: 2007 Full Scale Residential RTP Programs Roll Out Power Smart Pricing for Ameren Illinois customers ComEd RRTP for ComEd customers Debate over new retail rates in Illinois only settled in August Goals are to enroll 3% of customers by 2010 and then evaluate programs to see if they generate net benefits Smart meters not a required part of the story but may become valuable in the future

4 Power Smart Pricing Details Rider PSP adds on to Ameren s Rider RTP to create an optional program for residential customers using Day Ahead hourly prices $2.25 per month fee to cover part of the cost of metering and program administration Initial 12 month stay required The Program Administrator is to provide Outreach/program marketing Education tools for both efficiency and peak demand management High price notifications Online tools Research and evaluation

5 Both Everyday and High Price Tips

6 Technology Update Website updated in 2008 Website functionality now includes Front page current price information General Participant Tools Sophisticated usage and price graphs as well as analysis tools when accessing their account Bill comparisons Sign up capability

7 Updated Power Smart Pricing Website

8 Leveraging Technology for Increasing Performance for Ameren s PSP Selected PSP participants receive a PriceLight a small orb that glows different colors based on the current estimated price of electricity

9 ComEd RRTP Details Rider RRTP adds on to ComEd s Rate BESH to create an optional program for residential customers using Real-Time hourly prices $2.25 per month fee to cover part of the cost of metering. Initial 12 month stay required The Program Administrator is to provide Outreach/program marketing Education tools for both efficiency and peak demand management High price notifications Online tools Research and evaluation

10 Leveraging Technology for Increasing Performance for ComEd s RRTP

11 Program and Savings Results For Ameren Power Smart Pricing Second year of program for all participants 2007 overall savings of 11% on customer s electric bill costs Over 3000 participants at 2008 year s end For ComEd RRTP Sixth year of hourly pricing for almost 400 participants and the second year of the program for all others 2007 overall savings between 7% and 12% on customer s electric bill costs Nearly 6000 participants at 2008 year s end

12 Additional Results Annual Reports for 2008 for both the Ameren Power Smart Pricing and the ComEd RRTP programs are being finalized. Until submitted to the Illinois Commerce, the formal results are not public. But, the preliminary indications show that efforts to increase performance using technology, that is to show greater elasticities, have succeeded.

13 Central Air Conditioning Ownership Over 90% new homes today include air conditioning, which contributes to peak demand for electricity Peak demand drives up prices Source: US Bureau of the Census, C-25. Compiled by NAHB Economics Group.

14 Opportunities Going Forward Illinois provides a unique opportunity Hourly pricing is available to all residential customers Day Ahead versus Real-Time price ComEd 200,000 meter AMI initiative Illinois Statewide Smart Grid Collaborative

15 Day Ahead versus Real-Time Prices Two examples of the differences between Day Ahead and Real- Time hourly prices There are many solutions possible below are just two Education plus soft technology Education plus hard technology Stress that education is always an integral part

16 Education plus soft technology Works best with Day Ahead pricing Learn general price shapes High prices = hot summer afternoons Moderate prices = non-summer morning wake up and evening come home times Low prices = overnights all year round

17 Education plus soft technology Add reminder type of soft technology PriceLight Google and Vista gadgets Firefox Toolbar

18 Education plus hard technology Works with either Day Ahead or Real-Time pricing Is able to respond to the immediacy of the realtime prices But education about the general price shape is still desired

19 Education plus hard technology A/C Cycling Switches Programmable Communicating Thermostats Home Automation with a HAN

20 ComEd AMI Initiative Illinois Commerce Commission (ICC) mandated Planning Workshops facilitated by Plexus Research, Inc. Looking at: Customer impacts Utility operation Demand response, energy efficiency and conservation

21 Illinois Statewide Smart Grid Collaborative Has just kicked off on February 26, 2009, Facilitated by EnerNex Corporation Customer impacts are also a part of this discussion Plug-in Electric Vehicles (PEV) and Hybrid Plug-in Electric Vehicles (HPEV) were identified CNT Energy saying: Smart Meters + Smart Rates + Smart Technologies = Value to Consumers, The Electric Grid and the Environment

22 We just need to avoid this as a possible solution March 22 25, 2009 Miami, FL, USA

23 For More Information Lawrence Kotewa Senior Engineer and Project Manager 773/ CNT Energy 2125 West North Avenue Chicago, IL