Case Study: Time-Of-Use Tariffs In Florida Eduardo Balbis, P.E. Commissioner Florida Public Service Commission USAID/ARE/ECREEE/ERERA/NARUC Integrating Clean Energy Regulation into Evolving Energy Markets May 21-23, 2013 Praia, Cape Verde
Time-of-Use (TOU) Rates A TOU rate allows customers to lower electric bills as long as they are able to shift electricity use to off-peak times Cost of producing electricity varies throughout the day based on what generation units are being utilized With TOU rates, customers pay a lower rate for off-peak use and a higher rate for on-peak use The more energy the customer is able to shift to off-peak periods, the greater the savings 2
Standard TOU Rating Periods TOU rates were initiated in response to Public Utility Regulatory Policies Act of 1978 (PURPA) On-peak periods are Monday through Friday November through March April through October 6 am to 10 am Noon to 9 pm 6 pm to 10 pm Off-peak periods all other hours and all hours of six holidays Should be modified for each particular utility Can be based on actual hourly production costs 3
Number of TOU Customers Utility Rate Schedule TOU Customers Total Customers in rate schedule FPL GST-1 (small commercial) 582 416,076 0.1 FPL GSDT-1 2,276 102,814 2.2 FPL GSLDT-1 (larger commercial with load demand charges) Percent 1,064 2,457 43.3 FPL GSLDT-2 67 149 69.1 FPL GSLDT-3 6 6 100 FPL FPL SDTR Seasonal Demand Time of Use Rider HLFT High Load Factor Time of Use 1,939 (Sets different charges for different seasons) 1,132 PEF GST-1 225 116,099 0.2 PEF GSDT-1 9,822 46,858 21.0 Information based on utilities most recent rate case 4
Number of TOU Customers (cont.) Utility Rate Schedule TOU Customers Total Customers in rate schedule Gulf RSVP 10,254 372,611 2.8 Gulf GSTOU 591 29,709 2.0 Gulf GSDT 107 14,149 0.8 Percent Gulf LPT 61 211 28.9 Gulf Real Time Pricing (RTP) 27 TECO RSVP-1 1,740 619,152 0.3 TECO GST 2,676 65,718 4.1 TECO GSDT 964 12,137 7.9 Information based on utilities most recent rate case 5
Time of Use Rates Findings - Florida It is difficult to change the behavior of residential customers with the exception of special appliances and meters Commercial customers can more easily change behavior dry cleaners, warehouses can operate at night. Ice can be made at night. The larger the customer/demand, the higher likelihood to change behavior 6
Case Study Residential Program Gulf Power 500,000 customers, 2,600 MW Approximate Company Service Areas
Gulf Power Company (Gulf) Residential Service Variable Pricing (RSVP) Rate Optional rate that allows residential customers to respond to price signals Program called Energy Select Key components: Variable price rate for four pricing periods Gulf installs energy management equipment at residence Ability to pre-program appliances to automatically respond to variable prices 8
Residential Service Variable Rate (RSVP) Program Goal: Residential advanced energy management system that delivers increased value to customers while providing peak reduction benefits to utility system Key components Variable price rate Ability to pre-program devices to automatically respond to variable prices Set it and forget it 9
Residential Service Variable Rate (RSVP) Price Per kwh* Standard Residential Rate 9.9 cents/kwh LOW MEDIUM HIGH CRITICAL 7.3 cents 8.5 cents 15.4 cents 59.4 cents * All prices are as of 01/01/2013, excluding any applicable taxes. These prices are subject to change. Price per kwh $0.50 $0.20 Critical 59.4 $0.10 7.3 Low 8.5 Medium High 15.4 (Limited To 87 Hrs/Yr) Standard Residential Rate 10.1 cents 10
Energy Select Results Energy Select reduces generation needs Summer Peak Load Reduction per House at Critical Price 1.7 KW = 17MW total Winter Peak Load Reduction per House at Critical Price 2.4 KW = 24MW total (1%) Estimated Annual kwh Reduction per House greater than 700 kwh 11
Summary Time of use rates can be an effective tool to change customer behavior. Initial focus should be to develop tariffs for commercial customers that can change behavior. Residential programs can be effective; however, specialized equipment may be required to increase effectiveness. 12
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