Demand Response and Energy Efficiency –
Avoiding Dysfunction in the DSM Family
(or better yet, find pot of gold at end of rainbow)
National Town Hall Meeting – ADS
July 2013
Challenges to Integration
• Regulatory landscape: regulators see these as
different resources and regulate separately
• Legislative authorization: EE is often a specific
legislative requirement, but DR is a grid supply
• Internal organizational structures: utilities separate
out delivery of these resources into different groups
• Few private sector contractors deliver both
Is the result: Dysfunction?
DR
EE
We are in the same sandbox
DR
Customers
Regulators
Utilities
EE
Good Example: ISO NE Forward Capacity Market
Our products interact with each otherwhether we like it or not
DR
EE
DG
Electric consumption
Ratepayer EE program model
Customers do not have
the resources or focus
to meet policy goals:
Justification for incentives
DR: original value proposition
• Assumption: the only value is system benefit,
so deployment and payment is only within
energy supply system
-Customers share in value through
payments to endure a negative impact:
decreased comfort or productivity
Changing landscape
• Time Variable Rates
• New technology can provide both EE and RE (and
customer amenity value) together (see NEST
thermostat)
• DR and EE both go through cycles of underlying
demand but not always the same cause or timing
• Smart meters/Capacity Markets/environmental
policies expanding
Questions
• Is there a value proposition for a combined
package to the same customer?
– cost savings
– integrated technology
– clarity of message to the customer
• Are barriers to adoption similar or different
with EE and DR?
Questions
• Will Smart meters really change the
opportunity for DR and EE?
• Is there a fundamental difference between
System wide DR vs. Distribution feeder
targeted DR with respect to EE integration?
• Who is the key target for better marketing and
education? Customers, Regulators, tech
companies or the utility itself
Questions
• What is the vision for the future?
• What are the barriers to getting there?
• Do we have any success stories of fullyintegrated programs?
– ISO NE
– EnerNOC
– Marshfield Energy Challenge