2010 Assessment of Demand Response and Advanced Metering Federal Energy Regulatory Commission I

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2010 Assessment of Demand Response and Advanced Metering Federal Energy Regulatory Commission I 2010 Assessment of Demand Response and Advanced Metering Staff Report Federal Energy Regulatory Commission February 2011 The opinions and views expressed in this staff report do not necessarily represent those of the Federal Energy Regulatory Commission, its Chairman, or individual Commissioners, and are not binding on the Commission. ACKNOWLEDGEMENTS Federal Energy Regulatory Commission Staff Team Dean Wight, Team Lead Caroline Daly David Kathan Michael P. Lee Kamaria Martin Pamela Silberstein Michael Tita Rebecca Vertes Z, INC. Team Bryan Templeton (Z, INC.) Valerie Richardson (KEMA) Will Gifford (KEMA) Christopher Elsner (Z, INC.) Matthew S. Pettit (KEMA) Geoff Barker (KEMA) Ron Chebra (KEMA) TABLE OF CONTENTS Executive Summary.................................................................................................................. 1 Results of the 2010 Advanced Metering and Demand Response Survey............................. 1 Demand Response Developments and Barriers.................................................................... 1 Chapter 1. Introduction ............................................................................................................ 2 Prior Reports in This Series .................................................................................................. 2 Preparation of This Year’s Report ........................................................................................ 3 Demand Response and Advanced Metering Survey............................................................. 3 Report Organization.............................................................................................................. 4 Regions in This Report ......................................................................................................... 4 Chapter 2. Advanced Metering Infrastructure ......................................................................... 6 Definition of Advanced Metering......................................................................................... 6 Summary of Advanced Metering Penetration Results.......................................................... 7 2010 FERC Survey Design................................................................................................7 Analysis Approach.............................................................................................................7 Survey Findings .................................................................................................................7 Uses of Advanced Metering.............................................................................................13 Developments and Issues in Advanced Metering............................................................... 14 American Recovery and Reinvestment Act Grant Programs ..........................................14 Federal Government-Led Activities to Support AMI Structures and Utilization............15 Noteworthy State Activities.............................................................................................17 Technological Issues in Advanced Meters ......................................................................19 Chapter 3. Demand Response................................................................................................ 21 Definition of Demand Response......................................................................................... 21 Survey Results .................................................................................................................... 22 Analysis Approach...........................................................................................................22 Summary of Survey Findings ..........................................................................................23 Demand Response Activities at the FERC, Barriers to Demand Response, and Staff Recommendations............................................................................................................... 40 National Action Plan on Demand Response....................................................................40 Commission Rulemakings on Demand Response Issues.................................................41 Demand Response and Smart Grid Developments..........................................................42 Other Demand Response Orders and Activities ..............................................................43 Further Barriers to Demand Response.............................................................................46 Staff Recommendations...................................................................................................50 Appendix A: Section 1252 of the Energy Policy Act of 2005............................................... 51 Appendix B: Abbreviated Names and Acronyms Used in This Report ................................ 54 Appendix C: Survey Glossary ............................................................................................... 55 Appendix D: 2010 FERC Survey Method............................................................................. 63 Appendix E: FERC Survey Respondents .............................................................................. 72 Appendix F: Demand Response Programs and Services at Responding Entities.................. 88 Appendix G: Data for Figures in the Report.......................................................................... 96 Appendix H: Adjustment Methodology for 2010 FERC Survey......................................... 104 2010 Assessment of Demand Response and Advanced Metering Federal Energy Regulatory Commission i LIST OF TABLES Table 3.1. Estimated advanced metering penetration by region for residential and nonresidential customers......................................................................................................... 10 Table 3.2. Estimated penetration of advanced metering by state in 2006, 2008 and 2010 FERC Surveys......................................................................................................................... 11 Table 4.1. Demand response program classifications in the 2010 FERC Survey and changes from previous surveys............................................................................................................. 22 Table 4.2. Reported potential peak load reduction in megawatts by program category and state ......................................................................................................................................... 38 Table 4.3. Reported plans for new demand response programs and time-based rates/tariffs 39 Table D1. Survey population of the 2010 and 2008 FERC Surveys ..................................... 65 Table D2. Assigned demand response program types for RTO/ISO programs..................... 70 Table H1. Sources of data used to impute missing 2010 FERC survey data....................... 104 Table H2. Subsample response rates ................................................................................... 109 LIST OF FIGURES Figure 2.1. NERC Regions ...................................................................................................... 5 Figure 3.1. Estimated advanced metering penetration nationwide in 2006, 2008 and 2010 FERC Surveys........................................................................................................................... 8 Figure 3.2. Estimated advanced metering penetration by region in 2006, 2008 and 2010 FERC Surveys........................................................................................................................... 9 Figure 3.3. Estimated penetration of advanced metering by type of entity in 2006, 2008 and 2010 FERC Surveys................................................................................................................ 12 Figure 3.4. Reported numbers of customers and communication methods for advanced metering by customer class..................................................................................................... 13 Figure 4.1. Reported number of customers enrolled in direct load control programs by region and type of entity .................................................................................................................... 25 Figure 4.2. Number of entities reporting interruptible/curtailable rates by region and type of entity ....................................................................................................................................... 26 Figure 4.3. Number of entities reporting residential Time-of-Use rates by region and type of entity ....................................................................................................................................... 27 Figure 4.4. Reported number of residential customers enrolled in Time-of-Use rates by region and entity type.............................................................................................................. 28 Figure 4.5. Number of entities reporting retail real-time pricing by region and entity type . 29 Figure 4.6. Total reported potential peak load reduction in 2006, 2008 and 2010 FERC Surveys.................................................................................................................................... 29 Figure 4.7. Reported potential peak load reduction by customer class in 2006, 2008 and 2010 FERC Surveys........................................................................................................................
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