2015-2016
Automated Demand Response
Technology Incentives
Program Guidelines
1
September 2015
FOR OVER 100 YEARS...LIFE. POWERED BY EDISON.
1.
Introduction.................….……........................................................................................................................3
2.
Automated Demand Response (Auto-DR) Overview.……..................................................... 4
3.
4.
2.1
Business Customers Can Choose From Two Auto-DR Programs.................5
2.2
Resource Goals……....................................................................................................................6
2.3
Issues Resolution Procedure……......................................................................................6
Auto-DR Process Flow…….......................................................................................................................7
3.1
Customer Applies to Reserve Funds (Step 1)…......................................................7
3.2
Reservation of Funds (Step 2).........................................................................................12
3.3
Technical Coordinator Assigned (Step 3).................................................................13
3.4
Customer Installs Equipment (Step 4)........................................................................14
3.5
Customer Requests DRAS Participant (Log-In) Information
Through the SCE Self Service Module (Step 5)....................................................14
3.6
Equipment Connected to the DRAS (Step 6)..........................................................14
3.7
Customer and Vendor Conduct System Verification Testing
to Verify DRAS Communication (Step 7)..................................................................15
3.8
Customer Submits Installation Packet (Step 8).....................................................15
3.9
TC Completes Customer DRAS Training and Obtains Customer
Signature for the “Technical Coordinator Installation and Customer
Enablement Form for Auto-DR Technology Incentives” Form (Step 9).......17
3.10
Quality Assurance (Step 10).............................................................................................17
3.11
Measurement and Verification Test (Step 11)...........................................................17
3.12
Auto-DR Express Technology Incentives (Step 12A)...........................................20
3.13
Auto-DR Customized Technology Incentives (Step 12B)...................................21
3.14
Project And Customer Incentive Caps.........................................................................24
3.15
Ongoing Performance Monitoring................................................................................24
3.16
Participation in Demand Response Events.................................................................24
Demand Response Programs Overview…....................................................................................26
4.1
Examples of Demand Response Strategies….........................................................27
5.
Additional Integrated Incentive Opportunities…......................................................................29
6.
Program Organization…..........................................................................................................................30
7.
Table of Contents
Table of Contents
6.1
Program Stakeholders….....................................................................................................30
6.2
Additional Implementation Contractors....................................................................31
Contacts and Programs Information...............................................................................................32
2
September 2015
Introduction
These Program Guidelines for Southern California Edison Company’s (SCE) Automated
Demand Response (Auto-DR or ADR) Technology Incentives Program explain the policies,
procedures, and requirements for qualified SCE customers, SCE DR program managers,
DR service providers, equipment manufacturers, vendors, SCE account managers, and
Introduction
1.
internal project staff.
Auto-DR enables Demand Response (DR) customers to apply pre-selected load reduction
strategies automatically, without the need for manual intervention. The Auto-DR program
offers technology incentives to non-residential customers for the installation of qualifying
energy management controls systems (EMCS, also known as building management systems)
at their facility to automate participation in DR events.
We offer a portfolio of DR programs. These programs reward participating customers for
reducing energy use during peak demand periods with financial incentives and other benefits.
Participation in our DR programs can make a difference in the reliability of California’s electric
system and in reducing greenhouse gas emissions.
3
September 2015
Auto-DR is an “enabling technology” incentive program that pays up to 100% of a customer’s
project cost for the installation of a qualifying EMCS. Rather than shutting down process loads
or reducing lighting and HVAC manually, Auto-DR sends an automated signal from a central
server via a dedicated Internet line to the customer’s EMCS, which then “automatically”
activates a pre-programmed load reduction strategy.
The Auto-DR program automatically initiates the sequence of steps necessary to reduce
Auto-DR Overview
2. Automated Demand Response (Auto-DR) Overview
electrical load at the customer’s facility when the utility sends the communications signal via
the OpenADR 2.0a National Communications Standard (a worldwide adopted Internet protocol
used to communicate with the customer’s DR-related equipment). The goal is to maximize the
reliability and consistency of available kilowatt (kW) capacity in DR programs by ensuring that
the kW demand reductions during DR events are as realistically achievable as possible, and
by making it easier for Auto-DR customers to participate consistently in as many DR events as
possible.
Depending on the DR program a customer is enrolled in, the customer receives either a dayahead or day-of event notification. When we call a DR event, Auto-DR customers always have
the option of overriding their load shed strategy by electing not to participate in the event or
by updating (changing) their load reduction strategy for that particular event.
By automating the customer’s load reduction strategy, Auto-DR makes participation in
DR events easier, while also allowing customers the flexibility to override or change their
participation strategy for any event. This provides the customer and SCE with more consistent
and reliable load reduction.
Auto-DR consists of open, interoperable, industry-standard control and communications
technologies designed to work with both common EMCS and individual end-use devices.
The technology and communications infrastructure used in Auto-DR originated from an initial
conceptual design developed in 2002 at Lawrence Berkeley National Laboratory (LBNL).
The Auto-DR architecture consists of two major elements built on an open-interface standards
model called OpenADR. First, the Demand Response Automation Server (DRAS) provides
signals to notify participating customers of DR events. Second, a DRAS client for each of the
participating customer’s facilities continually communicates with the DRAS and is linked to
existing pre-programmed DR strategies independent of control network protocols such as
BACnet, Modbus, etc.
There are two types of DRAS clients:
■■
Client and Logic with Integrated Relay (CLIR) for legacy control systems
■■
Web Services (WS) software for energy management or other control systems
linked to Internet systems
Honeywell (formerly Akuacom) provides the communications infrastructure (DRAS) and
connectivity support for our automated participants. Honeywell also maintains compliance
with the OpenADR 2.0a National Communication Standards.
If for any reason, the customer is unable to, or does not receive the automated load reduction
signal, the customer will be accountable for fulfilling its load reduction (kW) obligation as
verified in the two hour Measurement and Verification (M&V) test (Section 3.11).
4
September 2015
one of five qualifying DR programs or rates:
■■
Real Time Pricing (RTP) - Tariff / Rate
■■
Summer Advantage Incentive (SAI, also known as CPP) - Tariff / Rate
■■
Demand Bidding Program (DBP) - DR program
■■
Aggregator Managed Portfolio (AMP, previously known as DRC) - DR program
■■
Capacity Bidding Program (CBP) - DR program
Auto-DR Overview
To be eligible for Auto-DR Technology Incentives, the customer must enroll in at least
Auto-DR program case studies and fact sheets are available at on.sce.com/autodr
For information on our DR programs, please go to sce.com/drp
2.1 Business Customers Can Choose From Two Auto-DR Programs
1.
The Auto-DR Customized program provides incentives to medium and large
non-residential customers who install and/or retrofit an EMCS at their facility.
Customized incentives are available to participants on a 60/40 basis in two
installments (see section 3.13). Customers submitting applications for Auto-DR
Customized incentives must also have a minimum of 30kW of eligible available
load to qualify for technology incentives. Auto-DR calculates available and eligible
load utilizing a customer’s summer specific baseline (see Section 3.11.1 Calculating
Load Shed from System Test).
2.
The Auto-DR Express program uses predetermined (deemed) kW savings
on standard technologies (lighting and HVAC) for qualifying customers between
100 and 499 kW of peak demand (see Section 3.12). The Express program provides
incentives 100% after equipment installation and validation. Express incentives are
exempt from the 60/40 incentive structure.
2.1.1 Letter of Agreement for Customized Project Incentives
of $200,000 Or More
Auto-DR incentives are capped at less than $200,000 per service account unless
the customer executes a separate Letter of Agreement (LOA or Letter Agreement).
All Auto-DR Customized projects with incentives of $200,000 or more per service
account require an LOA. The LOA is a binding contract between the customer
and SCE, where both parties agree to abide by additional contract provisions not
included in these Guidelines. If the Guidelines and the LOA conflict, the terms
and conditions set forth in the LOA will serve as the controlling provisions of
the agreement between the customer and SCE. Once we have approved the
customer’s application, and prior to reserving Auto-DR incentives, we will issue the
LOA to the customer for review and signatures.
The LOA requires the customer to actively participate (as defined in Section 3.16)
in a qualifying DR program as set forth in Section 4 of this document. The customer
must actively participate at the tested level (kW) for the duration of the LOA’s 36
5
September 2015
the customer to be liable for payment of liquidated damages, the amount of which
will be calculated as the kW difference between the minimum kW participation
and the customer’s average participation during agreement period (36 months),
multiplied by the incentive cost per M&V load reduction (kW).
Liquidated Damages = [(0.6 X M&V Load Reduction [kW]) – Average DR
Participation [kW] x (Approved incentive amount [$/kW])]
Auto-DR Overview
month term. Failure to comply with the active participation requirement will cause
Liquidated damages will not exceed customer’s actual incentive payment amount.
Technology incentives will be available on a 60/40 basis in two installments,
as explained in Section 3.13. Pursuant to the terms of the LOA, Auto-DR customers
with Customized projects of $200,000 or more must actively participate at the
tested level (kW) for the 36 month period to ensure the first installment payment,
calculated at 60% of the Technology Incentive. Any penalties for lack of participation
as implied by the LOA apply only to the first installment payment.
2.2 Resource Goals
Auto-DR has project reservation and installation (project paid) goals in megawatts
(MW) of load reduction, including the San Onofre Nuclear Generating Station (SONGS)
mitigation target area.
The SONGS Mitigation Target Area comprises over 200 ZIP codes affected by the
decommissioning of the San Onofre Nuclear Generating Station. Auto-DR projects
within the SONGS Mitigation Target Area will receive prioritization throughout the
Auto-DR process.
A list of ZIP codes is available at CAASupport.com
2.3 Issues Resolution Procedure
We have an applicable issue resolution procedure in place involving a series
of escalation steps that depend on how long it takes to resolve the issue.
1. The customer or the vendor must contact the Auto-DR Help Desk
and explain the issue
2. The Auto-DR Help Desk documents the issue
3. The Auto-DR team works with the customer and/or the vendor
and the performance verification engineer to resolve the issue
6
September 2015
The Auto-DR Process Flow summarizes the procedure and documentation required for each
step in the program process. To help facilitate the process, we will need the customer to
review and comply with all program rules, and submit a signed Program Application as a
condition of receiving program services.
We expect customers participating in the Auto-DR program to provide the Auto-DR team
with access to facilities and data, and to demonstrate reasonable progress toward meeting
program milestones.
Auto-DR Process Flow
3. Auto-DR Process Flow
Customers must complete the application package in full before we will approve the Project
and reserve funds. We will pay incentives only if it deems that the program documentation
is complete and satisfactory.
As a general rule, actual project implementation should not begin until after we have
approved the project application; however, proceeding with installation will not impair the
chances for the application’s approval unless funding is limited or has been exhausted.
3.1 Customer Applies to Reserve Funds (Step 1)
The customer applies for incentives through the Online Application Tool (OAT)
at sceonlineapp.com.
The application must include:
1.
Third Party Project Proposal or Scope of Work (SOW) with detailed calculations
2.
Controls System Diagram (1 per service account or client (device))
3.
Authorized Participants Requirements and Agreement Form (Fill out once
unless status changes, e.g. Name, tax status, Tax ID, etc…)
3.1.1 Customer Eligibility
Non-Residential Customers who meet the following requirements are eligible
to participate in Auto-DR:
❑❑
Customer receives electric services from SCE;
❑❑
Customer has an SCE SmartConnect™ or interval meter installed
at the Customer Project Site;1
❑❑
Customer has an existing utility service account with at least 12 months
of billing and usage history (Intermittent loads such as pumping or agricultural
irrigation need 24 months of billing and usage history); and
❑❑
Customer is already enrolled in a qualifying DR program(s) (see Section 4)
or is eligible to enroll
❑❑
Customers in the Auto-DR Customized program must have a minimum
of 30kW of eligible available load to qualify for technology incentives
1 A Customer Project Site or site is defined as a single free-standing building or structure; an individual utility interval meter; or a service account
number where the retrofit or installation takes place.
7
September 2015
baseline (see section 3.11.1 Calculating Load Shed from System Test).
3.1.1.1 Direct Access (DA) Customers
Direct Access (DA) customers who purchase electricity from an electricity
service provider (ESP) other than SCE are eligible for the Auto-DR Program.
Like all Auto-DR customers, DA customers must actively participate in
a qualifying DR Program; DA customers are eligible for the following
qualifying programs:
‹‹
Capacity Bidding Program (CBP)
‹‹
Demand Bidding Program (DBP)
‹‹
Aggregator Managed Portfolio (AMP) Program
Auto-DR Process Flow
SCE calculates available and eligible load utilizing a customer’s summer specific
All Auto-DR customers must undergo the M&V test to verify load reduction.
Because we rely on meter data to validate the M&V testing and the second
installment payment (participation bonus, Section 3.13.4), DA customers who
do not utilize an SCE-owned meter, or who do not employ SCE as their Meter
Data Management Agent (MDMA), participate in the Auto-DR program at their
own financial risk and could be responsible for the entire project cost.
DA customers may also request an Edison SmartConnect™ meter through
their Account Representative at their expense.
3.1.2 Auto-DR Project Eligibility
A project is eligible for Auto-DR if its equipment can be controlled through an EMCS
or other control system(s). If a customer’s project requires the installation of additional
equipment or additional programming of the automation system, e.g., additional
control modules, control programming, rewiring, dedicated switches, additional
circuit breakers or lamps, the project may still be eligible for Auto-DR because these
automation systems can be connected to the DRAS to receive curtailment signals. It is
considered Auto-DR when no manual action is required to initiate the pre-programmed
load reduction sequence of operations.
An example of an Auto-DR project would be a chilled water temperature set point reset
for a chiller, connected to the building automation system or Wi-Fi network. After the
sequence of operations is programmed, any manual intervention need not begin the
energy load reduction. The automated system receives the signal from the DRAS and
automatically initiates the temperature reset.
For a customer’s project to be eligible for Auto-DR program incentives, it must meet
the following criteria:
1. Project must feature new Auto-DR-enabling equipment that provides
incremental kW and kilowatt hour (kWh) reductions that correspond
to existing (baseline) equipment
2. New equipment/systems must not already be installed. New equipment/
systems must have OpenADR 2.0a capability and be certified by the
September 2015
8
OpenADR Alliance (openadr.org).
If customers choose to include multiple project sites in a single energy management
solutions incentives application, the following requirements will apply:
1. The customer must own and/or occupy the project site(s), with a maximum
of 25 service accounts per project, submitted through our Online Application
Tool (OAT) at sceonlineapp.com
2. The customer must have a unique service account number for each site
3. Any project sites connected to the customer’s incentive applications must
Auto-DR Process Flow
all be within SCE’s service territory
The customer’s sites can have different measures, operating hours, energy-use
profiles and DR strategies. The Auto-DR team will determine the project cost for
each site individually.
When combining sites and measures into a single application, the customer should
know that these projects will not be reviewed, approved or receive payment until
paperwork on all individual sites and measures is complete. If the project is being
implemented in phases, the customer should submit individual applications.
California’s Investor Owned Utilities (IOUs) require location-specific notification for
all of our existing and new DR event participants. If a customer is enrolling multiple
facilities at multiple sites, the customer must have a CLIR device or equivalent
and the ability to monitor DR event participation at each facility or site individually
based on the site address and service account.
Customers that receive technology incentives through the Auto-DR program may
be ineligible to participate in some SCE and non-SCE programs for up 36 months
so as not to receive overlapping incentives. Customers should contact their
Account Representative to ensure program eligibility.
3.1.2.1
Auto-DR Technology Eligibility
1. Technology must have previously demonstrated DR capability.
A. Technology must be evaluated in an independent assessment,
Or
B. Technology must be currently installed and available for evaluation
by our program staff. This evaluation must be at a site in SCE’s
territory or at another location that can be easily accessed by program
staff, where both pre- and post-project conditions are documented
or verifiable
2. EMCS software and programming costs for battery storage technology
being used for DR may be eligible for Auto-DR incentives, and will
be reviewed on a case by case basis.
A. Batteries receiving Auto-DR incentives should be used for demand
response event participation only, not permanent load reduction,
9
September 2015
and must be submitted through the Auto-DR Customized program
(see section 3.13).
3. Technology must be under manufacturer warranty for a minimum of three
years (the cost of the warranty may be eligible for Auto-DR incentives,
but is capped at 2% of the total cost of the EMCS).
A. Technology includes the client device (EMCS) that communicates
directly with the SCE DRAS
B. Warranty eligibility does not include communication between
the controls and the equipment and hardware being controlled
or programmed
3.1.2.2
Auto-DR Process Flow
Ineligible Projects
Non-utility supply projects, such as on-site electric generation, and thermal
energy storage systems are ineligible for Auto- DR incentives because they
are permanent load shifting. SCE offers incentives for these projects under
separate programs.
In addition, we do not pay incentives under the Auto-DR Program for
semi-automated measures, manual DR measures, manual improvements/
changes, or behavior changes in regards to how the customer uses existing
equipment. This also applies to cameras, software license(s), maintenance
fees, recurring costs, and the cost of site or facility metering.
Projects utilizing batteries for DR programs are also ineligible for
Auto-DR incentives.
3.1.3 Third Party DR Providers (Aggregation)
Customers utilizing third-party DR providers (aggregators) are eligible to
participate in Auto-DR. They must enroll in either the AMP or CBP program
(see Section 4), and like all Auto-DR customers, must undergo the M&V testing
process to verify load reduction. Aggregators will continue to receive curtailment
notifications directly from APX (an infrastructure provider), and are eligible to
trigger the customer’s EMCS directly for the purpose of automated load reduction
after completion of M&V. In addition, customers using third party DR providers are
subject to certain considerations to receive incentive payments.
Auto-DR customers enrolled in AMP and/or CBP programs who have an OpenADR
2.0a certified Virtual End Node (VEN) are not eligible to receive Auto-DR signals
from an aggregator for the purpose of M&V. Instead, such customers will need to
poll the Auto-DR signal directly from the DRAS. This ensures the system is fully
automated in a consistent manner across all DR programs. It also paves the way
for additional DR services such as fast DR, and creates more flexibility, which may
be necessary to accommodate an increasingly dynamic electric grid.
Aggregators are also responsible for the nominated load for each service
agreement and assume the risk and penalty if the customer fails to shed load.
Customers ensure their load is nominated monthly, and if an event occurs, that
they are participating to their tested kW. It is important for customers using a thirdparty DR provider to remember to participate in events during the first 12 month
September 2015
10
Cloud-Based Projects And Stranded Asset Testing
With cloud-based Auto-DR projects, a remote server or EMS acts as a central hub
for DR event signal(s) sent from the utility DRAS. It then executes DR strategies
for one or more of the customer’s facilities across a campus or a region. These
types of projects are gaining popularity with Auto-DR technology vendors, service
providers and aggregators because they have attractive cost efficiencies, use
central servers over localized servers, and have controls at individual facility sites.
Conversely, cloud-based solutions could create stranded asset risks for SCE in
the event that a customer is no longer connected to the cloud or if the customer’s
relationship with the cloud vendor ends.
Auto-DR Process Flow
period in order to remain eligible for the remaining 40% participation bonus
(see Section 3.16).
To manage the stranded asset risks, vendors and aggregators using cloud-based
equipment must meet the following requirements:
1.
The communication regarding DR event initiation and termination between
DRAS and the cloud must follow the OpenADR 2.0a protocol
2. Vendors must provide both the customer and our program team with written
instructions detailing how the local VEN can be reconfigured to pull a signal
directly from SCE’s DRAS, directing the equipment to respond automatically
so the DR strategies will still activate if the cloud-based service is terminated
A. Any additional hardware and programming services must be
provided to the customer during project installation. These additional
hardware and programming services are eligible for Auto-DR
incentives.
B. The additional hardware will be of similar construction. For example:
if the main VEN is built for an outdoor environment, the additional
hardware will also be built for the outdoors.
C. The provided instructions and hardware must be able to successfully
redirect the site’s VEN connection to the DRAS with no assistance
from the vendor, e.g., passcode to disconnect from cloud
D. All future revisions to the hardware/software must retain
the standalone capability
3. The local VEN on-site must include the proper security certificate for
connection to SCE’s DRAS end-point and must be able to connect to
OpenADR 2.0a (connecting to the 1.0 endpoint is not allowed)
4. All functionalities related to an incentivized Auto-DR load shed must be
preserved even absent the cloud. It is common for clouds to provide controls
intelligence in managing. Standalone equipment must have default
programming in case the vendor’s cloud service ends in order to achieve
the same level of load shed approved for the Auto-DR incentive.
3.1.4.1 Stranded Asset Testing
We require stranded asset testing for cloud-based projects to ensure the
September 2015
11
Stranded asset testing is typically completed following completion of project
installation and commissioning, and before the Load Shed Test to verify it
can communicate directly with SCE’s DRAS. The Auto-DR team initiates an
event notification signal via the DRAS and has the onsite VEN solution shed
load without the signal going through the cloud. We will conduct this test
once per VEN, but may request another demonstration at any time if there
are concerns that the demonstration is no longer valid, e.g., a dramatic
hardware or software update occurs.
Auto-DR Process Flow
local VEN can communicate with SCE’s DRAS without the third-party cloud.
*Vendors that cannot pass the cloud-based project eligibility or stranded
asset testing may connect to the SCE DRAS, but will not be eligible for
an Auto-DR incentive
3.1.5 Stranded Asset Option for Outsourced Auto-DR Systems
Similar to a cloud solution, the Auto-DR system can be outsourced, but still owned by
the customer. In these cases, the Auto-DR system is so integrated into the customer’s
EMCS that ending the relationship with the vendor would render the management
and control system inoperable. Outsourcing the Auto-DR system causes a small risk
of the system becoming a stranded asset for SCE since the functionality of the DRAS
connections is not dependent on a vendor or third party. As with all projects, we will
need the customer’s control system to demonstrate locational dispatch capabilities,
which is a requirement for all Auto-DR implementations.
3.2
Reservation of Funds (Step 2)
When the customer or its vendor submits an application (sceonlineapp.com), we will
review the application and either reserve the incentives, or reject the application. The
incentive reservation is based on the kW review and an evaluation by the performance
verification engineer (PVE). The Auto-DR team may also conduct a pre-inspection for
any project, which may be besides prior audits and site visits conducted by a vendor.
Upon approval of the reservation for technology incentives, we will submit the AutoDR application for processing. Once we process the application and reserve incentives,
the customer will become a program participant. Auto-DR will then inform the Account
Representative and the customer/vendor of the incentive reservation in writing at
which time the customer is authorized to begin installation.
If the incentive is not reserved due to customer ineligibility, we will log the rejected
application and send a Project Rejection email to the Account Representative and the
customer/vendor.
Note: Significant changes to the project scope after we approve the Auto-DR application
may require a cancellation of the existing application and resubmission of the project(s)
as a new application using the most up-to-date program guidelines. The customer
would also have the option of applying for the change only (as/if applicable).
Following a customer’s project approval, we reserve funds for 12 months pending a
demonstration of the project’s progression toward meeting the remaining milestones.
12
September 2015
approve extensions on a case-by-case basis at its sole discretion.
A proof of progress may also be requested at any time during the reservation period.
3.2.1 Reservation Period and Early Withdraw Penalties
To qualify for incentives, customers must remain enrolled in a qualifying DR
program for at least 36 consecutive months. Customers whose businesses move,
shut down, or who do not remain enrolled in a qualifying DR program for 36
consecutive months will be liable for reimbursement on a pro-rated portion of
Auto-DR Process Flow
If the customer is unable to complete the project within the 12-month period, we may
their Auto-DR technology incentive.
Because Incentive Payment 2 is a participation bonus based on the first year of
program participation (see Section 3.13.2), the pro-rated portion of the Auto-DR
incentives comes from Incentive Payment 1.
((36 Months – Number of Months fulfilled) / 36) * (Total Incentives Paid in IP1) =
Balance Due
3.2.2 Performance Verification Engineer (PVE)
After we receive the Third Party Project Proposal, the Performance Verification
Engineer (PVE) conducts an engineering evaluation of the submitted report. The
objective is to review and evaluate the proposed DR strategies to make sure they
validate the assumptions and accuracy reflected in the engineering calculations that
estimate the strategy’s kW reduction. The PVE may submit questions to the vendor or
the participant for further clarification or related information for follow up.
Often, the PVE and the program manager adjust the kW load shed potential and
associated eligible incentives initially proposed in the project proposal. Because
our goal is to maximize the reliability and consistency of kW enabled by Auto-DR
technologies, it is important that the kW for projects receiving Auto-DR incentives
be as realistically achievable as possible, so participants will want to consistently
participate in DR events.
The adjusted kW follows from the project proposal evaluation, and may be lower
than the initial kW. If a kW adjustment is made to the project proposal, the Auto-DR
team will notify the Account Representative and the customer/vendor with the
findings and basis of the adjustment(s).
3.3 Technical Coordinator Assigned (Step 3)
Following confirmation of the reservation of funds, we will assign a Technical
Coordinator (TC) to the project.
The primary responsibility of the TC is to support the customer during installation
in order to ensure timely completion. TCs provide limited support services during
installation, but are happy to respond to program and technology-related questions.
Under no circumstance will the Auto-DR team supervise, manage, direct, or otherwise
13
September 2015
from the Auto-DR program. The Auto-DR team will not purchase any equipment,
material, or supplies intended for permanent incorporation into buildings or job sites
as part of a project that receives a financial incentive from the Auto-DR program.
3.4 Customer Installs Equipment (Step 4)
The customer has 12 months from the confirmation of funds to complete the project
and submit the Installation Packet.
3.4.1 Installation Deadline
Auto-DR Process Flow
control any construction or installation work with a project that receives incentives
All projects must demonstrate reasonable progress towards completion of project
installation. If we determine a project is not making reasonable progress, we may
cancel the agreement. The customer may request an extension, which we will grant
at its sole discretion.
3.5 Customer Requests DRAS Participant (Log-In) Information
Through the SCE Self Service Module (Step 5)
The customer must request DRAS Log-In credentials through the Self Service Module
(SSM) prior to submitting the Installation Packet. The Auto-DR Help Desk will assign
a specific Username and Password to each service account that has an EMCS that will
be participating in Auto-DR.
To sign in using the DRAS credentials, go to sce.openadr.com.
For questions regarding the DRAS credentials or for help signing in, contact
the Auto-DR Help Desk at AutoDR@sce.com or call 1-866-238-3605.
3.6 Equipment Connected to the DRAS (Step 6)
The TC (and vendor) use the credentials provided by the Auto-DR Help Desk to connect
the client device to the DRAS.
As the primary communication contact for the customer, the Auto-DR team supports
and coordinates with Honeywell to conduct continuous site testing to check for DRAS
connectivity. The team monitors DRAS connectivity to ensure that the DRAS server is
functioning, that the customer’s operation remains connected to the DRAS, and that
event performance issues due to DRAS connectivity are immediately addressed.
3.6.1 Monitoring DRAS Function
Although maintaining the DRAS and providing ongoing connectivity is Honeywell’s
primary responsibility, the Auto-DR team provides redundant monitoring on the
system to ensure maximum uptime and immediate response to any service outages.
The team employs an automated testing framework to frequently “ping” the DRAS
from several locations and notifies the Auto-DR staff of any significant outage. The
Auto-DR team will also make other SCE program staff aware of any outage and follow
up directly with Honeywell to ensure quick restoration of service.
3.6.2 Customer Connectivity and Non-Invasive Testing
14
September 2015
connectivity between the DRAS and the customer’s client device. The Auto-DR team
is included in the set of contacts receiving these notifications and works directly with
the customer and Honeywell to determine and correct the source of the connectivity
issue. Non-invasive testing relies in part on the existing monitoring functionality
of the DRAS. Sites that frequently lose connectivity are flagged for follow-up and
technical staff is dispatched to troubleshoot any issues that cannot be addressed
remotely. Some sites may appear to have intermittent connectivity due to internal
network configurations and may be sufficiently connected despite the appearance
of frequent brief outages. The Auto-DR team continuously monitors sites that seem
Auto-DR Process Flow
The DRAS provides functionality to alert Honeywell and the customer of any loss of
to have these intermittent outages and adjusts the notification threshold where
connectivity is sufficient.
Annual test events may also be issued to all existing sites to poll the DRAS and find
any sites not responding to the pending event signal. A customer’s EMCS polls the
DRAS by grabbing a DR event notification from it. To ensure the test is non-invasive
to the customer, the event is canceled before actually entering the “active” status.
3.7 Customer and Vendor Conduct System Verification Testing
to Verify DRAS Communication (Step 7)
In addition to verifying the DRAS communication, the customer should also Pre-Test
(commission) the site to verify proper functionality and load reduction capability.
If SCE is at fault and the M&V test is unsuccessful at verifying load reduction,
the customer is eligible for one retest at no cost. If SCE is not at fault, and an
additional M&V retest is necessary, we will deduct the cost to conduct the
additional M&V retest(s) from the customer’s eligible incentive.
3.8 Customer Submits Installation Packet (Step 8)
The Installation Packet includes the following forms:
■■
Agreement for Auto-DR Technology Incentives
■■
Technical Coordinator Installation and Customer Enablement Form
for Auto-DR Technology Incentives
■■
Measurement and Verification Report for Auto-DR Technology Incentives
Customer must also include in the Installation Packet invoices detailing how the money
was spent, broken down by categories like quantity, cost, rate, rate hours, materials,
raw materials, labor, time sheet receipts, purchases, contractor, sub-contractor, etc.
Grouped line items are not allowed and the invoices must itemize and list everything
separately. An Invoice Requirements Checklist is provided in Section 3.8.2 below.
Invoices must have a sufficient level of detail to allow the Auto-DR team to verify
the major equipment components installed during site inspection. The larger and
more complex the project, the more precise the invoicing documentation must be.
It is particularly important to itemize costs above $5,000 in detail.
15
September 2015
If the scope of the customer’s project changes substantially from what was identified
in the project application review, the customer may need to resubmit the application.
Substantial changes include significant modifications to the proposed equipment
type, size, quantity, configuration, or the expansion of a project to include additional
retrofits. The revised project scope and supporting calculations are subject to an
additional review and may require a new agreement prior to the removal of existing
equipment/systems or the installation of the replacement equipment/systems. We
may grant exceptions under reasonable circumstances, at our sole discretion.
Auto-DR Process Flow
3.8.1 Change In Project Scope
3.8.2 Invoice Requirements Checklist
All invoices should be submitted via:
❑❑
Email to: AutoDR@sce.com; or
❑❑
Mail to: Auto-DR Technology Incentives, 1515 Walnut Grove Ave., 2nd Floor,
Rosemead, CA 91770
Invoices should include:
Label stating the document is an invoice
Date of submittal
Vendor contact name, job title, contact information and address
Service Contract #
Reference to PO number (if available, place the Contract number below
the PO number)
Invoice #
Page # of Invoice #
Contract Summary: Contract value (not to exceed amount), invoiced charges
to date plus contract or P.O. balance
Labor cost detail: Itemized invoice consistent with contract and payment terms
‹‹
In-house labor: Include hourly or per unit rate (whichever applicable)
consistent with the contract, plus corresponding quantities and
current charges, with dates and description of work performed
‹‹
Non In-house labor: Hours for each classification of work
(management, programming, etc…)2
Parts and Materials
2 Timesheets and actual receipts are not required for each invoice submission. However, the contractor should be prepared to provide all supporting documents
to substantiate the invoice costs if requested.
16
September 2015
‹‹
Purchases over $5,000 per line item will require supporting
documentation as will any manufacturer warranty costs
(reimbursed up to 2%)
‹‹
Sub-Contractor invoices (if applicable)
Parts and Labor not covered by:
Leasing/Leased equipment
Cloud-based controls
Auto-DR Process Flow
Line items for all major purchases
Metering
Service contracts
Recurring costs (ex. DSL lines)
3.9 TC Completes Customer DRAS Training and Obtains Customer
Signature for the “Technical Coordinator Installation and Customer
Enablement Form for Auto-DR Technology Incentives” Form (Step 9)
After confirmation of communication with the DRAS, the customer may complete
and sign the “Technical Coordinator Installation and Customer Enablement Form
for Auto-DR Technology Incentives” form. This form is required before we assign
the Auto-DR profile.
The TC’s signature on the form confirms the following:
■■
The customer is online and communicating with the DRAS
■■
The customer is requesting an M&V date 2-4 weeks in advance
3.10 Quality Assurance (Step 10)
We complete a Quality Assurance (QA) review of all forms and documentation,
and do the following:
■■
Confirm qualifying DR program enrollment (prior to requesting M&V)
and DRAS communication
■■
Add Auto-DR profile to our business system and enable appropriate controls
in the DRAS
■■
Confirm the customer will now be actively participating in DR events through
Auto-DR
3.11 Measurement and Verification Test (Step 11)
The PVE will review data prior to M&V and contact the customer to schedule an
M&V test. The customer must be online and communicating with the DRAS for 48
consecutive hours prior to the M&V.
Once commissioning is complete and installed equipment is operational, the PVE
schedules an inspection and a two-hour M&V test event with both the customer and
the vendor at a convenient time within the specified time period/parameters. The entire
17
September 2015
Prior to the inspection, the PVE goes over the expectations for the test with the vendor.
The inspection verifies the following:
1.
All automation controls are located and verified for proper installation
and connection to the related equipment. Photos are taken.
2. Pre-test site conditions are verified to the proposed measures (observations
of foot-candles, temperatures, motor frequencies, etc., may be recorded as part
of this verification)
3.
For Integrated Demand Side Management (IDSM) projects, the energy efficiency
measure installation is also visually verified. Photos are taken.
Auto-DR Process Flow
inspection typically takes two to three hours.
4. The PVE records the time the test initiates. Since the minimum timeframe for
participation in any DR program is two-hours, the test’s duration lasts that same
amount of time. If the test does not initiate, the PVE works with both the customer
and the vendor to work out the source of the issue. A second test may be
necessary. Because each test case is unique, it may or may not be necessary
for the PVE to remain at the site for the duration of the test.
5. A second set of observations may be made during the test to verify site
conditions resulting from the sequence of operations (the same observations
as pre-test conditions apply). Photos are taken.
6. The PVE also notes any potential comfort or safety issues that might arise during
the test, e.g., areas too dark or too hot due to curtailed equipment
7.
Once the second set of observations have been made, and there are no other
potential issues due to the test, the project inspection will end. The PVE may
be present during the entire duration of the testing period. The observations
made during the test are compared to interval data recorded during the test
period to establish the site’s verified load reduction.
The PVE will then submit the M&V results to SCE by filing the “Measurement
and Verification Report for Auto-DR Technology Incentives” form.
3.11.1 Calculating Load Shed From System Test
We provide the following information to explain how we determine the
customer’s load reduction. Each situation is unique and not all testing facilitates
use these methods. The Auto-DR program staff will examine all reasonable
options when evaluating test results.
Auto-DR can only use utility revenue meter data to calculate reductions resulting
from a test event. Calculation of program incentives and load shed following site
verification testing depends critically on the accuracy of the customer baseline.
The baseline is the hourly load that the customer’s facility would have used
absent a DR event. The actual load during the DR event is subtracted from the
calculated baseline for each hour and the program incentive is based on the
18
September 2015
the DR season. Each of our DR programs have defined a baseline calculation
methodology. During testing, the baseline can vary widely depending on
conditions during the testing as compared to typical summer daytime activity.
The PVE accounts for this variability and can make adjustments to baseline to
account for these seasonal variations.
Auto-DR defines a baseline calculation methodology to determine the Auto-DR
program incentives.
❑❑
Hourly Customer Summer Specific Baseline (CSSB): The CSSB is the hourly
Auto-DR Process Flow
average kW performance across each hour of every event called throughout
summer average kW for summer weekdays, non-holidays and non-event days. It
can be used with the 10-in-10 baseline to help determine the customer’s weatherdependent demand reduction for a test event.
❑❑
10-in-10 Baseline: The 10-in-10 baseline is determined using a 10-day rolling
average energy usage profile of the immediate past 10 similar days prior to the
test event. The 10-in-10 is calculated on an hourly basis from 12 p.m. to 6 p.m.
using the average of the same hour for the past 10 similar days. The 10-in-10
baseline includes Monday through Friday, excludes holidays and additionally
excludes days when the customer was paid to reduce load on an interruptible
or other curtailment program, or when the customer was subject to rotating
outages. The 10-in-10 may vary for each hour and for each event.
❑❑
Recorded Test Energy (RTE): The RTE equals the actual recorded kWh
of the customer’s demand during a two-hour test event
❑❑
Calculated Reduced Energy (CRE): CRE can be calculated as follows.
CRE = (applicable baseline – RTE). Adjustments can be made for seasonal
load variations
❑❑
Incentive Payment (IP): The IP is based on the average CRE calculated during
the test Incentive event, multiplied by the incentive level per kWh/hour
‹‹IP
= CRE * applicable incentive level
The scheduling of the customer’s initial test varies depending on a few factors,
including the timing of the installation of specific measures, availability of processes
and personnel, seasonal schedules, and the opportunity for test personnel to
schedule the tests at the customer’s site. With that in mind, the schedule of a test
may occur during mild conditions or during the summer time. If a test is conducted
during mild conditions when HVAC loads are low, the initial test results are adjusted
to account for reduced DR-potential resulting from cooler weather. This adjustment
can also be used for assessing variable, non-weather related loads not accurately
represented using the (applicable baseline – RTE) method. This determination is made
on a case-by-case basis.
All of the customer’s energy loads are examined for consistency to ensure there has
not been significant reduction in the available capacity, i.e., diminished load. Where
diminished load is detected, the baseline is adjusted to account for it.
The Auto-DR team may change the methodology if it fails to represent the customer’s
actual loads. If the customer’s project fails the inspection and testing, we may decline
September 2015
19
inspections are conducted.
3.12 Auto-DR Express Technology Incentives (Step 12A)
Auto-DR Express uses predetermined DR (kW) savings for standard technologies.
Express incentives are exempt from the 60/40 customized incentive structure.
Customers who select the Auto-DR Express option could qualify for incentives up to
100% of project costs, not to exceed $300 per kW of “predetermined” load reduction.
Auto-DR Express technology incentives do not use the customer’s summer-specific
Auto-DR Process Flow
the customer’s application. We may also assess a re-inspection fee if multiple site
baseline, or a 10-in-10 baseline.
Incentives are based on:
■■
The customer’s maximum kW (demand), using their most recent 12 months
of usage
■■
Predetermined (deemed) savings in 25 kW increments
■■
Facility Type
■■
Climate Zone (ZIP code)
These incentives are paid in full after the project’s completion and a 2-hour equipment
verification and demonstration event.
Predetermined kW savings for standard technologies:
■■
Lighting controls: 20%, 30%, or 40% reduction
■■
Temperature reset controls for HVAC: 4°F, 5°F, or 6°F
Or
■■
Duty-cycling of HVAC compressors and supply fans: 10, 15, or 20 minutes
(for offices and food stores)
■■
Duty-cycling of HVAC compressors and supply fans: 15, 20, or 30 minutes
(for retail only)
Qualifying Customers (based on California End Use Study — CEUS):
■■
■■
■■
Office 100-499kW
(Daycare, churches and sales offices under 100,000 sq. ft.)
Retail 100-499kW
(Stores in strip malls and studios or galleries)
Food Stores 100-250k
(Convenience stores including those at gas stations and liquor stores)
Interested participants may use the Auto-DR Express Solutions Tool to calculate the
kW savings for their business at sceonlineapp.com/measures/measureselect.aspx.
To qualify for incentives, the customer must remain enrolled in an eligible DR program
for at least 36 consecutive months, as more fully described in Section 3.16 below.
20
September 2015
Customized incentives are available to participants on a 60/40 basis in two
installments. Customers submitting applications for Auto-DR Customized incentives
must have a minimum of 30kW of eligible available load to qualify for technology
incentives. Auto-DR calculates available and eligible load utilizing a customer’s
summer specific baseline (see section 3.11.1 Calculating Load Shed from System Test).
We review the M&V results and process Installment Payment 1 (60%) of the
technology incentive payment.
■■
We will email a summary of the results of the M&V test to the customer
and all necessary parties
■■
The customer will not receive incentives until we have verified the customer’s
enrollment in the Auto-DR Program
■■
Processing the incentive payment may take 6 to 8 weeks
Auto-DR Process Flow
3.13 Auto-DR Customized Technology Incentives (Step 12B)
For IDSM projects involving any Energy Efficiency (EE) measure(s), the first Auto-DR
incentive payment is contingent upon the completed installation of the EE measure(s).
For deemed EE projects, installation is verified during the Auto-DR site inspection and
testing. For customers with a customized EE project, installed measure(s) must be
inspected and approved by an SCE EE project verification engineer.
3.13.1 60/40 Background
In 2010, an Auto-DR Cost Effectiveness Study was completed using 2009 participation
data. The study found that Auto-DR customers were incented at levels higher than
their actual performance.
Upon completion of the study, the California Public Utilities Commission (CPUC)
ordered the IOUs to make the Auto-DR Program more cost-effective through a
performance-based incentive mechanism.
The intent of the split incentive structure is twofold:
❑❑
Motivate Auto-DR customers’ performance during the DR season by reserving
a portion of the incentive payment for up to 12 months following installation, and
❑❑
Motivate enrollment by providing participants with all program incentives
to invest in Auto-DR-enabled equipment
3.13.2 Incentives Are Available to Participants in Two Installments
on a 60/40 Basis
In the first installment, participants receive sixty percent (60%) of the total
program incentive upon verification of i) eligibility, ii) installation of qualifying DR
measure(s), and iii) measurement and verification of on-peak load reduction (kW)
potential enabled from the installed qualifying DR technology.
In the second installment (the participation bonus), participants receive an
amount up to the remaining forty percent (40%) of the technology incentive upon
21
September 2015
the first installment payment. The second payment is pro-rated based on the
percentage of the verified kW reduction actually achieved over the course of the
12 months.
To be eligible for the second installment payment, the customer must actively
participate for the entire 12 month period, and achieve a minimum performance
of 61% of the verified kW curtailment, averaged across all events called during the
DR season. The second incentive amount to be paid is the total Auto-DR incentive
multiplied by the difference between actual percentage performance and the 60%
Auto-DR Process Flow
verification of DR event performance in the first full (12 month) DR season after
benchmark. The second incentive is never less than zero, and never greater than
either the project cost or the approved incentive for the project, even if actual
performance exceeds 100% of verified kW.
The calculation of average kW performance is based on the DR events called on
by SCE or an aggregator for a specific performance period, regardless of whether
the customer opted out of an event. For the average performance period kW,
DR event opt-outs are considered as zero kW performance. As a participant,
customers should actively participate in all DR events since Auto-DR Program
incentives support investments in DR-enabling technology.
3.13.3 Incentives Calculations
Installment Payment 1 (IP1): 60% of Approved Incentive Amount After
Installation and Measurement and Verification.
Where Approved Incentive Amount ($) is the lesser of $300 x M&V Load
Reduction (kW) or actual and reasonable cost for installation and purchase
of qualifying equipment.
Installment Payment 2 (IP2 or Participation Bonus): Bonus of up to 40% of
Approved Incentive Amount Based on DR Performance during the First 12
months after incentives are paid.
(Average DR Participation (kW)/M&V Load Reduction (kW) -0.6) x Approved
Incentive Amount ($).
Where Average DR Participation (kW) = Total Consumption Reduction for all
events (net kW) / Total eligible event hours (h).
The total Approved Incentive Amount is based on M&V of the load reduction
by a third-party engineer.
To qualify for incentives, the customer must remain enrolled in an eligible DR
program for at least 36 consecutive months, as described more fully in Section 4
below.
We pay the 40% Participation Bonus (IP2) after verification of eligibility based on
the first year of DR program performance.
22
September 2015
Auto-DR Process Flow
©2013 Southern California Edison. All rights reserved.
3.13.4Installment Payment 2 (IP2) / Participation Bonus (Step 13)
We review the customer’s Auto-DR Technology Incentive history to determine if the
customer has completed the 12-month participation period.
The 12-month participation period begins on the date we mail IP1 (60%).
❑❑
The customer must average 61% participation or greater across all eligible
events or event bid hours on a qualifying DR program to be eligible for
a portion or all of the eligible participation bonus
If no DR program events occur, we may request a second M&V test to validate
equipment performance and available load shed
❑❑
After the customer has completed the first year on a qualifying DR program, we
develop a final performance report. Upon completion and approval of the final
report, the Auto-DR team sends the IP2 (participation bonus of up to 40% of the total,
adjusted for performance) to the accounts payable department for approval and
disbursement. We pay the final incentives one year after the IP1 incentive date.
3.13.4.5 Participation Bonus (IP2) Eligibility Review (Step 14)
We review the customer’s DR event performance for the first 12 months (1 year)
on a qualifying DR program.
➔➔
We will review and confirm customer’s enrollment in a DR program
➔➔
We will review DR program event dates and load reduction nominations
(if applicable) and analyze customer’s event performance(s)
➔➔
We will forward DR participation (via incentivized Auto-DR controls)
results to program management
3.13.4.6
Participation Bonus (IP2) Verification (Step 15)
Program management will review the customer’s DR program performance
and participation bonus eligibility.
23
September 2015
and forward a results verification email to the Account Representative so
the Account Representative may review and discuss the customer’s DR
participation results, and participation bonus, if eligible.
3.13.4.7
Participation Bonus (IP2) Processing (Step 16)
We will proceed with approval and processing of the eligible participation
bonus (IP2) of up to 40%. Processing may take 6 to 8 weeks.
3.14 Project And Customer Incentive Caps
Auto-DR Process Flow
Upon confirmation and approval, program management will generate
Auto-DR technology incentives are capped at less than $200,000 per service account
unless the customer executes a separate LOA, as discussed in Section 2.1.1. Incentives
are also capped so as not to exceed $50,000 above the reserved amount, unless a
revision is approved prior to the completion of the project. Incentives cannot exceed
100% of the total eligible project cost at any time.
To promote diversity in the number and types of projects enrolled in the program,
customers cannot receive more than $5,000,000 of incentive dollars (per program
cycle), based on their Customer ID. Multiple service account IDs can qualify under a
single Customer ID within our Customer cap.
3.15 Ongoing Performance Monitoring
During the customer’s subsequent DR season, the Auto-DR team operates the
program, tracks the customer’s DR event participation and performance based
on the kW load drop relative to their DR program baseline, and maintains regular
communication with the customer to provide DR event performance feedback and
help resolve any difficulties.
3.16 Participation in Demand Response Events
As an Auto-DR participant, the customer is required to actively participate (as defined
below) in the qualifying DR program(s) in which the customer is enrolled for the first
full year following installation. Program participants are encouraged to participate in
all DR events called under the DR program(s) in which they are enrolled.
Customers enrolled in AMP and CBP should check with their aggregators to ensure
their loads are nominated every month so they can participate in each AMP or CBP
event. IP2 (up to 40%) of total eligible incentives is calculated based on actual DR
participation over all event hours.
Customers enrolled in AMP and CBP must have an OpenADR 2.0a certified client onsite that can receive an automated DR event signal from DRAS, but they also have the
option to receive an event curtailment signal directly from their aggregator. In either
case, the site must be capable of participating in locational dispatch. 24
September 2015
Average DR Participation [kW] = Total Reduction for all events [net kWh] / Total eligible
event hours [h]
A.For Summer Advantage Incentive (SAI), customers must reduce their electricity
demand for the equivalent kWh of 61% or greater of the DR event hours called
for in such program for the entire duration of the DR event, by the DR capability
(in kW) enabled by the qualifying DR measure(s), i.e., “M&V load reduction.”
B.For Real Time Pricing (RTP), customers must reduce their electricity demand
for the equivalent kWh of 61% or greater of the M&V load reduction for all
Extremely Hot Summer Days from 2:00 p.m. to 6:00 p.m. If no Extremely Hot
Summer Days occur within each 12-month period, Very Hot Summer Days will
be used.
Auto-DR Process Flow
“Actively Participate” is calculated as follows:
C.For Demand Bidding Program (DBP), customers must reduce their electricity
demand for the equivalent kWh of 61% or greater of the M&V load reduction
of the DR event hours called for such program for at least two hours or the
submitted bid hours, whichever is greater
D.For Aggregator Managed Portfolio (AMP), customers must reduce their electricity
demand for the equivalent kWh of 61% or greater of the M&V load reduction hours
of this program. Even when no events are called, customers must nominate through
their provider, 60% of the M&V load reduction hours for all eligible months.
E.For Capacity Bidding Program (CBP), when a DR event is called, customers must
reduce their electricity demand for the equivalent kWh of 61% or greater of the
M&V load reduction of this program. Even when no events are called, customers
must nominate through their provider, 60% of the M&V load reduction for all
eligible months.
F.
Participation for all qualifying Auto-DR programs will be calculated using the
Auto-DR M&V load reduction kW, updated upon completion of the M&V test.
The M&V load reduction of the qualifying DR measures shall be determined
because of our M&V of the actual dispatchable on-peak load reduction enabled
by such measures.
G. Negative load reductions are included in the customer’s participation calculations
25
September 2015
Auto-DR program participants must be currently enrolled or need to newly enroll, in an SCE
DR program. Program participants must maintain enrollment in a qualifying DR program for
36 consecutive months. Program participants may switch their enrollment to a different
qualifying DR program during this 36-month period, but they must maintain the active
participation schedule and load reductions they agreed to for any such qualifying DR
program. If a program participant switches between qualifying DR programs, total kWh
or kW nomination liabilities will be pro-rated and adjusted by time they have already
participated in the previous qualifying DR program.
Below is a brief description of the current DR programs that SCE’s Auto-DR participants
are eligible to enroll in:
1.
Summer Advantage Incentive (SAI, also known as Critical Peak Pricing or CPP):
During the hottest months, when energy use hits its peak, prices are also at their
highest. Participating customers can save money and help relieve demand by
voluntarily reducing their energy consumption or shifting to off-peak hours during
Demand Response Programs Overview
4. Demand Response Programs Overview
SAI events. An SAI event may be called up to 12 times each year, when demand for
energy significantly increases. During these 4-hour events (2 p.m. to 6 p.m. weekdays,
excluding holidays), energy charges increase significantly. By reducing electricity use
during each event, customers can avoid paying these higher prices. Customers can also
benefit from lower electricity bills from SAI’s reduced monthly on-peak demand
charges throughout the summer season.
2.
Real Time Pricing (RTP): Large businesses with flexibility around their operations
schedule may want to consider the RTP rate schedule. This rate is beneficial for
customers who can reduce energy use during hours with higher temperature-driven
prices and/or shift usage to lower priced hours. Except for holidays, prices under this
rate are set according to season, temperature and time of day. Temperature-based
rates are determined by the previous day’s high temperatures in downtown Los
Angeles as recorded by the National Weather Service. Participating customers can sign
up for RTP courtesy alert notifications so they can plan their energy use during an event
and shift it accordingly to maximize savings.
3.
Capacity Bidding Program (CBP): Through this Internet-based program, participating
customers can earn payments for agreeing to reduce energy use during CBP events,
which helps ease stress on the electrical grid when resources become constrained.
Customers can participate by making monthly nominations (also known as “bids”) to
reduce their energy load and receive payment compensation based on their actual
energy reduction when a CBP event is called. This program offers customers the
flexibility to adjust their bid and participation preferences every month. Participating
customers have the choice to be notified the day before an event or on the day of the
event. Participating customers can also decide how many hours out of each event they
want to participate (choose from between 1 and 4 hours, 2 and 6 hours or 4 and 8
hours). Participating customers are never required to reduce their load over 30 hours
in any month.
26
September 2015
selected DR service providers (or aggregators) to help maintain an efficient and
reliable energy supply, reduce the likelihood of rotating outages, and avoid the need
to build new power plants. As a result, we produce fewer greenhouse gas emissions.
Each of AMP’s service providers design their own programs, and offer DR program
structures and options that may not be directly available through SCE. Participating
customers have the freedom to select an aggregator with services that best meet their
business needs.
5. Demand Bidding Program (DBP): DBP is a year-round, no-cost, flexible and
penalty-free program that offers SCE business customers of all sizes bill credits
for voluntarily reducing energy usage when a Demand Bidding event is called. DBP
events can be Monday through Friday between the hours of 12 p.m. to 8 p.m. any time
of the year, excluding holidays. Participating customers can place and manage bids,
monitor events and vary bid commitment by hour for each event. Customers must bid
a reduction for at least two consecutive hours during an event. Participating customers
with real time communicating metering will be able to monitor their performance
Demand Response Programs Overview
4. Aggregator Managed Portfolio (AMP): The AMP program allows SCE to work with
during events. Auto-DR incentives may be available for non-residential customers
with at least 200 kW of peak demand.
4.1 Examples of Demand Response Strategies
The DR control strategies adopted by the majority of our commercial DR participants
primarily affect HVAC and lighting loads. Our industrial customers typically adjust their
process loads to accommodate the DR events. The control strategies that customers
frequently adopt include the following:
❑❑
Global Temperature Adjustment: Customers adjust existing EMCS to receive
the DR event signal from the DRAS. Once the customer receives the signal,
the EMCS raises the set point temperature that the customer has established
(usually two to eight degrees) for a period of time.
❑❑
HVAC Equipment Cycling: For buildings with multiple packaged HVAC systems,
customers configure select units to receive the DR event signal from the DRAS.
Once the customer receives the signal, Auto-DR shuts off compressor units
for a subset of the building’s systems during an acceptable period of time.
❑❑
Other HVAC Adjustments: Other HVAC shed strategies included decreases
in duct pressures, auxiliary fan shutoff, pre-cooling, valve limits, and boiler
lockouts
❑❑
Light Shutoff or Dimming: Customers wire various lighting circuits to receive
the DR event signal from the DRAS. Once the customer receives the signal,
Auto-DR trips or dims these loads for the entire duration of the DR event.
Typically, the loads affected include lighting applications in common areas
with sufficient natural light or task applications with enough light from other
areas to accommodate a full shutoff.
❑❑
Other Lighting and Miscellaneous Adjustments: Other shed strategies include
bi-level lighting switches and motor/pump shutoff
27
September 2015
Process Adjustments: Given the varying nature of industrial processes, each
customer has a tailored strategy for its particular process. The most common
Auto-DR strategy is modifying secondary processes where there’s sufficient
storage capability. In this strategy, customers can accommodate complete
equipment shutdowns during DR events and catch up on production either
later that day or the following day.
Demand Response Programs Overview
❑❑
28
September 2015
The following section describes additional federal incentives that customers can apply
for besides Auto-DR program incentives, with the total amount from all eligible incentive
sources subject to the project caps identified above.
1.
Additional qualifying equipment may be eligible for incentives as part of a qualifying
Auto-DR project, and where the customer is also applying for incentives through one
of our Business Incentive programs besides Auto-DR, the qualifying equipment may
be eligible for incentives under both programs
2.
Energy Efficiency projects must be approved for payment prior to submitting
the required Auto-DR installation documentation
3.
The Auto-DR program life cycle must be fully completed, in sequential order,
for program participation consideration
Energy Efficiency Programs and Incentives
Auto-DR projects are also eligible to receive Energy Efficiency (EE) incentives.
Implementing at least one EE measure for Auto-DR participants is highly recommended,
though not required.
Additional Integrated Incentive Opportunities
5. Additional Integrated Incentive Opportunities
We offer both prescriptive (deemed) and customized incentives for hundreds of measures
for lighting, HVAC, motors, and other technologies. For more information on our EE
rebates, visit sce.com (Your Business>Savings & Incentives>Energy Efficiency
Customized Solutions).
29
September 2015
Our team implements the Auto-DR program, processes incentive requests and implementer
invoices for payment, communicates with vendors, customers and account managers about
the Auto-DR program, and reports on the program to the CPUC.
6.1 Program Stakeholders
We utilize the coordinated efforts of internal stakeholders and external parties,
who interact on a regular basis with the implementation contractors (vendors),
Program Organization
6. Program Organization
to implement the Auto-DR program.
6.1.1
Internal Stakeholders
The most important internal stakeholders include:
❑❑
Auto-DR Help Desk/Auto-DR Team: The Auto-DR Help Desk/Auto-DR team
is responsible for reviewing required/supplied documentation for accuracy
and completeness. The Auto-DR team assigns work to the Technical Coordinator
and Performance Verification Engineer, and enters and updates all project
submissions in our business tracking system.
❑❑
Accounts Payable: Accounts Payable is responsible for processing incentive
payments to our Auto-DR participants
❑❑
Billing: Billing is responsible for determining billing credits and participants’
payments and penalties based on performance during events
❑❑
DR Operations Team: The Operations team calls events based on triggers
such as forecasted weather, customer demand and scheduled or available
generation supply. The Operations team establishes priorities for load reduction
and determines which DR programs to call in order to meet event load reduction
targets.
❑❑
Program/Project Managers (PM): PM is responsible for managing and
coordinating program services, budgets, and other resources, including
the monitoring and reporting of performance goals. PM is also responsible
for developing program procedures and policies, managing contractors and
monitoring quality assurance.
❑❑
Account Representatives: Account Representatives are our team of account
managers that handle Customer and Participant relationships and promote
the DR programs. DR PMs train the sales and service representatives, e.g.,
account managers and desk-based representatives, and provides the marketing
materials and tools necessary to recruit customers to enroll in the DR
program(s), and to apply for Auto-DR incentives.
❑❑
Performance Verification Engineer (PVE): The PVE is responsible for the review
and pre-approval of the customer’s energy management solutions, incentives
application, and Third Party Project Proposal for technology incentives.
The PVE also provides on-site post installation equipment verification testing
30
September 2015
performs a variety of tasks within its responsibilities.
Technical Coordinator (TC): After confirmation of reservation of funds for
❑❑
Auto-DR system projects, we assign a TC who is responsible for ensuring
that the Auto-DR hardware and software is correctly installed and functioning
properly. Upon our request, the TC may provide technical customer support
for the Auto-DR System/Controls. The TC is also required to ensure the end
use customer has been trained on the controls installed, understands the
recommended DR strategy, and has the capability to update the DR strategy.
Program Organization
and performs measurement calculations for technology incentives. The PVE
6.1.2 External Stakeholders
The external stakeholders include, but are not limited to:
Other California Utilities: The Auto-DR program managers attend statewide
❑❑
teleconferences and participate in other forums with the other California
electric utilities to discuss DR program issues and learn about best practices
to continuously improve our programs’ performance and participant satisfaction
California Independent System Operator (CAISO): The CAISO manages
❑❑
the utility transmission system and issues alerts during emergency conditions
when load reductions are required
California Public Utilities Commission (CPUC): The CPUC monitors overall
❑❑
utility performance related to DR programs, including budget performance
and the programs’ effectiveness in meeting load reduction targets during events
Customers: Eligible non-residential ratepayers applying for incentives
❑❑
through the Statewide Customized Offering
Participant: Customers who have gone through the enrollment process
❑❑
and whose projects have been approved for program incentives
6.2
Additional Implementation Contractors
Honeywell (formerly Akuacom) provides the communications infrastructure (DRAS)
and connectivity support for our automated participants. Honeywell also maintains
compliance with the OpenADR 2.0a National Communication Standards.
31
September 2015
Automated Demand Response Technology Incentives: on.sce.com/autodr
SCE Auto-DR Helpdesk: AutoDR@sce.com or 1-866-238-3605
OpenADR Alliance: openadr.org
DRAS Self Service Module (SSM): sce.openadr.com
SCE Online Application and Solutions Tools: sceonlineapp.com
Demand Response Programs: sce.com/drp
Southern California Edison: sce.com
SCE Demand Response Alerts (smartphones) APP: on.sce.com/scedralerts
Permanent Load Shifting (PLS or Thermal Energy Storage): sce.com.pls
PLS Helpdesk: PLS@sce.com or 1-866-600-6289
Contacts and Programs Information
7. Contacts and Programs Information
Non-Residential Energy Efficiency Incentives: sceonlineapp.com > Solutions Directory
Customer Authorized Agents (CAA) Support: caasupport.com
Contractor Information Center: sce.com/contractor
SCE EnergyManager®, Bill Manager® and Cost Manager®: sce.com/energymanager
24 Hour Emergency Services: Power Outages, Lines Down, etc… (CA. ONLY): 1-800-611-1911
General Customer Service (U.S. & Canada): 1-800-655-4555
Hearing & Speech Impaired (TDD) (CA. ONLY): 1-800-352-8580
32
September 2015
NR-0301-V1-0915