Presentation for:
Energy Advancement Leadership Conference
Demand Response Programs &
Technologies
Frank A. Magnotti
President, Global Sales & Marketing
President, Comverge Enterprises
November 17, 2004
The “Peak Demand” Problem
$300
(PJM East - Summer 2000)
$250
$ / MWh
$200
Hourly Wholesale
Cost to Supplier
$150
$100
Average Retail Price
$50
$0
0%
10%
20%
30%
40%
50%
60%
Cumulative Percentage of Hours
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70%
80%
90%
100%
“Old-Think”
Supply constraints
PEAK LOAD
CHALLENGES
ADD DISTRIBUTION
- Build more lines
- “Punt”
Unhedgeable
congestion
Transmission
bottlenecks
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ADD SUPPLY
- Build more infrastructure
- Buy wholesale
“New-Think”
PROACTIVE DEMAND MANAGEMENT
- “Cleaner” than renewables
- Cost effective
- No line loss or degradation
- Advanced technology and
business models
Supply constraints
ADD DISTRIBUTION
- Build more lines
- “Punt”
PEAK LOAD
CHALLENGES
Unhedgeable
congestion
Transmission
bottlenecks
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ADD SUPPLY
- Build more infrastructure
- Buy wholesale
Question!
Are Demand Response and
Load Management programs
technologically, environmentally
and economically viable?
Are they large enough to make
a difference?
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Comverge’s Large Scale Programs
Programs Greater than 100 MW
Southeastern Region
FPL; FPC; Oglethorpe; Duke; Gulf Power
Northeastern Region
PEPCO; BGE; PSEG; JCPL
Midwestern Region
ComEd; Buckeye; NSP; DTE
Western Region
SCE; SMUD
Comverge is the supplier to over 90% of these Programs
– Five Gigawatts
Major Turnkey Virtual Peaking Capacity (VPC) Programs
Utah Power, SDG&E, HL&P, ISO-NE I, ISO-NE II
Comverge is the owner/operator of 100% of these Programs
– 300 Megawatts
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Product Spectrum
Real
Time
6DiNETTM
RATES
6,500 METERS
TOU/CRITICAL
PRICING 120MW
TOU
Maingate™
C&I
Maingate™
Home
Virtual SCADA
& Real-Time
Systems
Advanced C&I
Metering
100MW
5,000,000
INSTALLED
DCU
Flat
None
SuperStat™
Bi-Directional Load
Control & AMR
One-Way Load Control
CONTROL BY CONSUMER
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Full
Positive Impact
Increasing Environmental Impacts
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Oil-Fired
Coal-Fired
Biomass
Nuclear
Gas Peakers
Gas-Fired Combined Cycle
Geothermal
Wind
Solar
Demand Response/DSM
Negative Impact
Positive Environmental Impact
Environmental Impact "Gen-Stack"
Two Comverge Load Management
Models
Traditional Model: Direct Sale to Utility
Hardware and Software Purchase
Mass marketing campaign
Installation
Maintenance
Finance
Utility accepts all project risk
Virtual Peaking Capacity (“VPC”) Business Solution
Utility ONLY pays for available capacity
Comverge provides complete turnkey solution
Comverge accepts all project risk
Structured as a long term “power purchase type” agreement
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VPC Programs
First Non-Utility Residential
DLC Program
Acquisition of HL&P DLC Program
First Major VPC Contract
Utah Power
60 MW
90 MW
*Second Major VPC
Contract
San Diego Gas & Electric
*Third Major VPC
Contract
ISO-NE
70 MW
48 MW
*Fourth Major VPC Contract ISO-NE
12 MW
* Bid and Won in an All-Source Competitive Bid
(Supply & Demand)
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Overview
Demand Response and Load Control Programs
are:
Technologically Viable
Environmentally Viable
Economically Viable and
Large Enough
To Make a Significant Impact as Part of a
Portfolio Approach in an Integrated Resource
Plan.
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Thank you!
For our high school and college students in
the audience – I would like to encourage
entering this exciting and rewarding field!
Any questions??
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