Webinar: Slide 1: SCE Auto-DR Program Presented by Eric Mullendore CLEAResult - Technical Support Services for Customer’s Authorized Agents CAASupport-Projects@sce.com Slide 2: Welcome! Meet your hosts: Script: Today’s training is presented by CLEAResult, a third party consulting firm. My name is Eric Mullendore and I’ll be your presenter today. Joining me on the chat function in WebEx is my colleague, Forest Tanier-Gesner . For the past three years, we’ve both been providing technical support services to SCE’s Customer’s Authorized Agents. I’ll be providing some contact information at the end of the session in case you are interested in taking advantage of these services. After today’s webinar we will provide a copy of the presentation to attendees. All phones are muted so please use the chat function to communicate and Josh will respond. Content: CLEAResult - Technical Support Services for Customer’s Authorized Agents Images: Pictures of presenters Slide 3: Agenda Script: In today’s presentation, we will start out by defining DR and comparing it to energy efficiency, followed by going into more detail about SCE’s Auto-DR program and finally SCE’s qualifying DR programs. I will go into more detail on the distinction between those two later in the presentation. If you would like to gain a broader understanding of DR, including approaches to implementing DR strategies and primary benefits of each stakeholder, I would suggest viewing the “Demand Response” training posted at caasupport.com/training. This training, on the other hand, will focus exclusively on the SCE Auto-DR program and it’s qualifying DR programs. Content: What is DR and how does it compare to energy efficiency • Defining Demand Response (DR) and Automated Demand Response (Auto-DR) • SCE’s Auto-DR Program • – Express – Customized SCE’s DR Program Options Slide 4: Learning Objectives Script: Here are the learning objectives for today’s webinar. Content: By the end of the webinar, you should be able to: • Detail the requirements for enrolling in the Auto-DR program • Identify the main differences between the Auto-DR Express program and AutoDR Customized program • List the five qualifying DR programs for Auto-DR participants Slide 5: Demand Response Definition Script: This is a definition of DR provided by the U.S. DOE. A couple things to point out in the definition: - DR is in response to changes in the price of electricity or incentives - DR events occur during periods when the cost of electricity is high or the demand for electricity on the grid is nearing the supply. Content: Demand Response: “A tariff or program established to motivate changes in electric use by end-use customers in response to changes in the price of electricity over time, or to give incentive payments designed to induce lower electricity use at times of high market prices or when grid reliability is jeopardized.” Slide 6: Automated Demand Response Definition Script: Auto-DR is a strategy that improves performance and consistency when participating in demand response programs Content: Automated Demand Response: Using an Energy Management Control System (EMCS) to automatically activate a pre-programmed load reduction strategy in response to a signal from a central server Slide 7: EE vs. DR Script: With the definitions of DR and Auto-DR in mind, let’s take a look at how it compares to energy efficiency (EE). EE’s goal is to accomplish the same tasks and functions as before while using less energy. EE typically provides continuous energy use reduction during a piece of equipment’s operating hours (although the reduction amount may be variable). It is part of the normal building’s operations and typically results from a one-time installation of energy efficient equipment. EE is primarily concerned with kWh savings, which is an energy unit with a time component. This is differentiated from DR, which is characterized by a temporary, short-term reduction in a building’s energy use. DR strategies are not part of a building’s normal operations and are typically driven through control systems. DR is primarily concerned with kW savings, which is a measure of instantaneous power usage. Content: Energy Efficiency: • Doing the same amount of work with less energy • Permanent, continuous reduction in demand for electricity • One time installation of equipment • Intermittent reduction in demand for electricity; not part of a building’s normal operations • Customer action through price signal or incentive • Typically driven by controlling installed equipment Demand Response: Slide 8: SCE DR Programs Script: Before jumping into the details of each program, it’s important to note that there are 2 program types, and the sequence of utilizing them is important. SCE’s Auto-DR program incentivizes the equipment needed to utilize Auto-DR. Once a customer is setup with the equipment, they can then engage in SCE’s participation-based DR programs, which are either price (i.e. tariff)-based or incentivebased. Content: Program Types: • Technology/equipment-based • Participation-based − Price-based − Incentive-based Images: A diagram that shows Step 1 Auto-DR Program, “incentives from equipment installation” with an arrow pointing to Step 2 Price-responsive DR Programs “incentives from demand reductions achieved during DR events “incentive mechanism specific to DR program.” Slide 9: SCE’s Automated Demand Response Program Slide 10: Auto-DR Programs Script: The EMCS enables the customer to automatically implement demand response strategies when it receives a signal from SCE. The Auto-DR program reimburses building owners up to $300/kW to install EMS/controls with OpenADR2.0 capability. The incentive can cover hardware and/or software costs. Dispatchable on-peak load reduction is defined as existing load that, upon request, could be temporarily reduced for all or a portion of SCE’s on-peak period or temporarily shifted from SCE’s on-peak period to another time period (Monday through Friday, noon to 6:00 p.m., excluding holidays, June 1 through September 30). Customers may be eligible to receive incentives up to 100% of project costs (labor & equipment) In many cases, the program will cover almost all or all of the project costs for making a building Auto-DR ready. Content: • Provides incentives for the purchase, installation, and/or configuration of qualifying Energy Management Control System (EMCS) • Incentives of up to $300/kW of tested and verified on-peak load reduction • Customer load must be able to be reduced during SCE’s on-peak period (Monday through Friday, noon to 6:00 p.m., June 1 through September 30, excluding holidays). • Customers may be eligible to receive incentives up to 100% of project costs (labor & equipment) • Funding for the 2015-16 program cycle is $18.6M Slide 11: Program Eligibility Script: Note about 4 months of interval data requirement: Some customers have more seasonal variation to their load than others. If they have summer peaks then they need summer usage. If they’re not summer peaking, they can potentially use non-summer load for their 4 months of data. Note that Direct Access 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. Content: Requirements: Be on SCE commercial, industrial, or agricultural rate schedule Have an installed 15-minute interval meter or Edison SmartConnect® meter Meet minimum kW and program requirements for the program(s) in which you want to enroll Have ≥4 months of interval meter data representative of summer load Enroll in a qualifying DR program(s) (must be enrolled at time of M&V/demonstration) and stay enrolled for 36 months Install control system able to receive OpenADR 2.0a signals Complete M&V (Customized) or demonstration (Express) Own DR-enabling technology outright • DR-enabling technology must be covered by a warranty for a minimum of 3 years. Technology includes the client device (EMCS) that communicates directly with the SCE DRAS. Slide 12: Top Auto-DR Solutions Script: These are the most common DR strategies that are employed to reduce peak load through the Auto-DR program. Content: HVAC • Global Temperature Reset • Cycle Off Rooftop Package Units (HVAC) • Limit AHU Fan Speeds • Limit Demand on / or Curtail Chillers (HVAC) • Shut Down Exhaust Fan / Dust Collectors Pumping • Shut Down Irrigation Pumps • Curtail Municipal Water Pumping • Shut Down Pool or Fountain Pumps Lighting • Dim or Shut Off Selected Lighting Process • Curtail Industrial Processes (manufacturing) • Curtail Battery Chargers (forklifts, carts) • Curtail Refrigeration Load (cold storage) • Limit Demand on / or Shut Down Air Compressors Slide 13: OpenAuto-DR Communication Standard Script: OpenADR allows a common communications platform for utilities to communicate DR events are happening to customers. Starting at the beginning of last year, all controls incentivized through SCE’s Auto-DR program must be OpenADR 2.0 compliant. Content: • “An open and standardized way for electricity providers and system operators to communicate DR signals with each other and with their customers using a common language over any existing IP-based communications network, such as the Internet.” (from OpenADR.org) • All controls are required to communicate via the OpenADR 2.0 national communication standard • OpenADR 2.0a controls must be certified through the OpenADR Alliance and posted on their website products.openadr.org Slide 14: Auto-DR Architecture Script: There are a number of different ways an Auto-DR event can be communicated to a building’s equipment. First, SCE calls a DR event, which sends a signal to the DRAS, which then relays a signal to customers’ control units. What happens next is dependent on the controls configuration of the customer. The presence of a CLIR box in the left customer allows that customer to basically have a firewall between it’s building equipment and the internet. This customer also has an EMS system that enables additional information about the building’s equipment to be seen by the building operators. The 2nd customer is utilizing a Smart DRAS client to relay the OpenADR message directly to the building’s control network. Finally, the last three customers’ control networks are connected to a overarching enterprise control system via gateways. Content: Definitions − DRAS: Demand Response Automation Server − Gateway − • Client device, controls, energy management system or EMS • Computer located on site or housed on a customer owned server CLIR (box): Client and Logic with Integrated Relay Images: A flow chart with Operators and SCE servers (DRAS) at the top. There are double headed arrows pointing to this picture and the pictures of CLIR, Smart DRAS Client and Multi-site Enterprise Controls. There are double headed arrows between the Multi-site Enterprise Controls and three Gateway pictures. Images: Pictogram showing ADR operations. Slide 15: Pause for questions Images: Picture of a question mark. Slide 16: Auto-DR Express Script: The Auto-DR Express program offers a streamlined approach to receiving incentives for common Auto-DR solutions. Notably, the incentives through the Express Auto-DR program are not subject to the 60/40 incentive structure that the Customized program is (to be explained later in presentation). Content: • Incentives paid IN FULL (up to 100% of project cost) after project completion and 2 hour equipment verification & demonstration • Incentives based on climate zone and 12 most recent months of usage − • Online Application Tool’s Solutions Tool provides estimates Must include third party project proposal with calculations and a controls system diagram Slide 17: Auto-DR Express Script: The Online Application Tool’s Solutions Tool calculates the customer’s potential load reduction (DR kW) based on their maximum demand, zip code (climate zone), and control strategy (DR measure) input by the user. CAAs and customers should work with SCE rep to determine the facility’s peak kW, which is determined using the last 12 months of billing data. The Solutions Tool categorizes each facility’s peak kW into 25 kW increments. Note that while the facility type descriptions may seem limiting their definitions actually represent a fairly diverse segment of the commercial market: • Office facility type includes daycare, churches and offices under 100,000 sq ft • Retail Store facility type includes those located in strip malls, studios and galleries • Food Store facility type includes convenience stores, including those at gas stations, and liquor stores Also note that incentives are not available for more than one DR strategy for the same technology type (i.e. customer is not eligible to use Temperature Reset and Compressor Duty Cycling as both are alternate strategies for reducing the load from a site’s HVAC system). A detailed list of the available control strategies: • Lighting controls: 20%, 30% or 40% reduction • Temperature reset controls for HVAC: 4°F, 5°F or 6°F • Duty-cycling of HVAC compressor(s) only: 10, 15 or 20 minutes • Duty-cycling of HVAC compressor(s) and supply fans: 10, 15 or 20 minutes • Retail customers are now eligible for 15, 20 or 30 minute HVAC duty-cycling Content: Deemed kW Estimate • Exempt from 60/40 incentive structure • Requires equipment verification and demonstration Images: Depicts a drawing of a bowl with three balls labeled climate, facility and peak kW and measure type. It shows that all three balls have multiple variables influencing them. Slide 18: Auto-DR Express Script: All Auto-DR project submissions, Third Party project proposals, and Controls System Diagrams must be submitted through SCE’s Online Application Tool (www.sceonlineapp.com). Above is a screenshot of the Online Application Tool’s Solutions Tool showing the inputs required for the Auto-DR Express program. Images: Screen shot of OAT. Slide 19: Auto-DR Express Script: This is a screen shot showing the results of the previous page’s inputs. Note that calculated peak kW reduction. This streamlined approach can save CAAs and customers time by not having to develop custom calculations. Images: Screen shot of OAT. Slide 20: Auto-DR Customized Script: As with EE Express and Customized Solutions, the Auto-DR program works similarly. For those projects not addressed by Auto-DR Express Solutions, Customized Solutions may be used to obtain an incentive. Content: • Incentives paid via 60/40 split incentive structure after project completion and 2 hour M&V test • Must remain on a qualifying DR program for 36 consecutive months • Application must include third party project proposal with calculations and a controls system diagram • All non-residential building types and solution codes are eligible • Calculated demand reduction − Online Application Tool’s built-in calculators (“Solutions Tool”) for common DR solutions Slide 21: 60/40 Incentive Structure Script: The Participation Bonus is prorated based on a performance of greater than 60% (percent) of the measured and verified on-peak load reduction kW, averaged across all events called during the twelve month period. Customers must average 61% participation or greater across all event hours on a qualifying DR program to be eligible for a portion or all of the participation bonus Why 60/40? The California Public Utilities Commission (CPUC) requested the three investor owned utilities (IOU) implement a participation (performance) based incentive structure where customers receiving technology incentives would be required to participate on a qualifying demand response program to be eligible to receive up to 100% (percent) of the available technology incentive. Content: • Payment 1: 60% of incentive is payable upon verification of eligibility, installation of qualifying demand response measure(s) and measurement and verification of on-peak load reduction (kW) potential enabled from the installed qualifying DR technology. • Participation Bonus (Payment 2): Up to 40% of the incentive is payable upon verification of participant performance in the immediate 12 months after the first payment. Images: Graphic of the 60/40 split. Slide 22: Auto-DR Customized Script: This is a screenshot showing the Online Application Tool’s Solutions Tool for Auto-DR Customized Solutions. Note that there are built-in calculators that can estimate peak demand reduction for common DR solutions. Images: Screen shot of OAT. Slide 23: Auto-DR Customized Process Flow Script: This graphic shows the Auto-DR customized process flow. Images: Flow chart of Custom ADR application Slide 24: Project Proposal Checklist 1 Script: As noted, the Auto-DR application requires a third party project proposal. The next three slides provide a checklist for items that should be included on project proposals. Note that the checklist is also available Content: • Executive Summary − Date site visited − Location address(es) • Site contact name and contact information − Facility overview − Estimated project cost − Estimated customer cost after incentives − Estimated kW reduction − DR Timeframe − Primary project benefits − Project terms Slide 25: Project Proposal Checklist 2 Content: • Project Summary – • Description of controls: • Equipment • Function • Implementation solutions – Labor – Training Solution Components – Controls system schematic / diagram (preliminary system drawings) Slide 26: Project Proposal Checklist 3 Content: • Load Control Strategies − • Auto-DR measure(s) identified • Building type • Service account • Energy using system / equipment being controlled • Measure description • Demand response reduction time • Average kW • Maximum kW • Estimated cost to implement Project Implementation Schedule Slide 27: Avoiding Processing Delays Script: To make sure your application is processed as fast as possible, make sure you submit a complete application with all required documentation. Content: • Submit complete and error free applications and documentation • • • Many applications currently require follow up Follow key processing timelines: • M&V: Submit complete installation packets at least 2 weeks prior to M&V date being requested • Actual M&V date availability is confirmed upon receipt of the complete installation packet Applications are processed in the order they are received Slide 28: Invoice Requirements Checklist Script: The items in the checklist above should appear on the invoice. For the labor cost detail: • In-house labor - Include hourly or per unit rate (whichever is 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…) Regarding invoice line items: • Purchases in excess of $5,000 per line item will require supporting documentation. • Sub-Contractor invoices should be included if applicable Timesheets and actual receipts are not required for each invoice submission. However, the contractor should be prepared to provide all supporting documents necessary to substantiate the invoice costs if requested. Content: • Label clearly stating the document is an invoice • Date of submittal • Vendor contact name, job title, contact information and address • Service Contract # • Reference to PO # and below it place the Contract # • Invoice # • Page # of # • Contract Summary – Contract value (Not to Exceed amount) – invoiced charges to date – contract or P.O. balance • Labor cost detail: Itemized invoice consistent with the scope of contract and payment terms • Parts and Materials – Line items for all major purchases Slide 29: Impacts to Baseline/Incentive Script: DR peak load reductions will be impacted by the implementation of energy efficiency or distributed generation projects. This is because both of these types of projects will reduce the building’s peak load, resulting in less load to shed during a DR event. The CA Loading Order adopted by the CPUC and three CA IOUs states that energy efficiency should be completed first, followed by DR, and then finally distributed generation. However, it is possible, and encouraged, to complete integrated energy efficiency and DR projects. By doing so project costs can be driven down by leveraging common equipment and labor costs between the two approaches, and customer satisfaction can be increased by minimizing site visits. If an integrated approach is used, it is required that the Auto-DR M&V process is not completed until after the energy efficiency measures have been installed and verified. The Preferred Resources Pilot (PRP) focuses on 40 zip codes on a transmission‐constrained area of SCE’s service territory served by the Johanna and Santiago substations in Central Orange County. In the 2020 to 2024 time frame, depending upon load growth, there may be transmission constraints in the PRP region that would require new power supply resources due to the loss of the power supply from SONGS, coupled with the impending retirement of nearby ocean‐cooled power plants. The PRP focuses on acquiring and integrating the use of preferred resources in a way that demonstrates their ability to meet local energy needs within a defined area. It is the customer's responsibility to have completed pre-tests to ensure proper functionality prior to M&V. If the SCE M&V test is unsuccessful at verifying load reduction, the customer is eligible for one retest at no cost, if SCE is at fault. If an additional M&V retest(s) is necessary, the cost to conduct the additional M&V retest(s) will be deducted from the customer's eligible incentive. Content: • Distributed generation or energy efficiency projects may impact Auto-DR potential. • Non reimbursable expenses include: Leasing / leased equipment, cloud based controls, metering equipment (including PIB’s), service contracts, recurring costs (ex. DSL lines), and controls on non-curtailable loads. • SCE will prioritize the review of projects submitted within the SONGS Target Area as part of a Preferred Resources Pilot. • SCE will deduct a fee from the incentive amount if M&V test must be repeated due to applicant error. Slide 30: Now it’s your turn 1) Both the Express and Customized Auto-DR program incentives are based on measured load reductions. True False 2) If a customer sheds 10kW during their Auto-DR M&V test, what will the project’s total incentive be if they used Customized Solutions? $1,800 $3,000 $4,500 Answers: 1) False, 2) Not enough information Slide 31: Pause for questions Images: Picture of a question mark. Slide 32: Demand Response Program Options Slide 33: Qualifying DR Options Not enough information Script: In order to receive Auto-DR funds, buildings must enroll for 36 months in one of these. - Must be enrolled in order to receive payment. - Remain enrolled in a qualifying Auto-DR program for a minimum of 36 consecutive months from the date the applicable technology incentives have been paid Content: Must enroll for 36 months in a qualifying DR program or rate: • Capacity Bidding Program • Demand Bidding Program • Aggregator Managed Portfolio Program • Summer Advantage Incentive Rate (CPP or CPP Lite) • Real-Time Pricing Rate Slide 34: Demand Bidding Program Script: Demand Bidding is a system where - SCE tells participants that an event will take place the next day - Individual facilities (or aggregated groups) can then “bid” their demand reduction for the following day’s event, online using SCE’s Energy Manager portal - Minimum of 30 kW per hour for individual participants, minimum of 100 kW per hour for aggregated groups - Repayment is $0.50 per kWh. - Repayment occurs if you hit at least 50%, but no more than 200% of your target. Savings are calculated based on a 10 Day Average Baseline (“10/10”) Content: How it Works: • Customer’s must be able to reduce a minimum of 30kW to be eligible for Customized incentives • Bid load reduction online using SCE Energy Manager portal • Events can occur from noon to 8pm, Mon-Fri • Day-Ahead notification • Must bid in 2 consecutive hours • Credit of $0.50 / kWh reduced • Risk free: no penalty for not performing Slide 35: Capacity Bidding Program Script: The Capacity Bidding program is different from the Demand Bidding Program in a few ways: 1) Bidding takes place per month, not per event. Customers “nominate” a demand reduction target, which is the basis for their incentive. When events are called during the month, customers need to achieve that target. 2) Events will be called either day-ahead or day-of. Higher compensation for buildings able to reduce load with day-of events. 3) Compensation varies by month (more in August and July than May, etc.), and is per kW, not per kWh. Ranges from about $4 in May to about $22 in August. 4) Credits and penalties are assessed based on hourly performance. 5) There may be a penalty charge for achieving less than 50% of your kW target 1) For <50% of target, payment is: kWh Reduced, Minus 50% of Nomination Multiplied by Capacity Credit Rate 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 third-party DR provider to remember to participate in every event during the first 12 month period in order to remain eligible for the remaining 40% participation bonus Content: How it Works: • No minimum peak demand requirement to participate • Customers nominate reducible capacity per month • Incentives vary by Day-Ahead or Day-Of notification option • Two types of incentives: • – Energy Payment: Based on performance during event – Capacity Payment: Based on nominated load reduction, month, and notification option Customer faces penalty for not meeting nomination amount Slide 36: Aggregator Managed Portfolio Script: Customers may select an aggregator with services that best meet their business needs. 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 third-party DR provider to remember to participate in every event during the first 12 month period in order to remain eligible for the remaining 40% participation bonus Content: How it Works: • Approved DR service providers (“aggregators”) offer a range of programs for customers. • Groups of customers are “aggregated” and act as a single customer • May include options not included in other DR programs Slide 37: Summer Advantage Incentive Rate Script: Summer Advantage Incentive - More advanced form of TOU pricing - Overall tariff has lower on-peak and mid-peak charge (technically a rebate for both of those) - During DR events, the on-peak price rises significantly, and there is generally an additional charge per kWh - SCE notifies customers of events a minimum of 18 hours in advance - 1 year bill protection Baseline: 10 day average baseline (“10/10”) Content: • Previously known as “Critical Peak Pricing” − 12 events per year, 4 hours long − Energy and demand credits during summer − Increased event $/kWh − Day-ahead notice − Default rate for customers > 200kW − CPP Lite option for <200kW Images: Bar graph showing off peak. Mid peak and on peak costs per kWh, and the amount of on peak that could be reduced. Slide 38: Real Time Pricing Script: In real-time pricing the price varies hourly with temperature and season. Temperatures for program are based on previous day’s downtown high in Los Angeles, at http://www.wrh.noaa.gov/lox/ There is no required change in demand – customers can change load or not, at their own discretion. Baseline: Average demand across the last 10 mild, non-holiday, weekdays Eligible event hours: Extremely Hot Summer Days from 2:00pm to 6:00pm Content: • Energy price varies hourly based on season, time of day, day type, and previous day’s high temperature • Automatic notifications if prices for following day are expected to exceed customer’s predetermined limit • Ideal for larger businesses with flexibility in their operating schedules Images: Graph with time on the x axis and cost per kWh on the y axis. The lines on the graph represent season, weekend or weekday and temperature range. Slide 39: Pause for questions Images: Picture of a question mark. Slide 40: Summary Content: • SCE’s Auto-DR program includes two approach options: Express and Customized • Express Auto-DR program offers deemed incentives for common DR measures in small office, small retail, and food store buildings – • $300/kW paid (up to 100% of the project) in full after verification and demonstration Customized Auto-DR program offers incentives based on M&V load drop for all DR solution codes in any non-residential building type – 60/40 incentive structure – Auto-DR program participant are required to enroll for 36 months in one of 5 qualifying DR programs Slide 41: Resources Content: • SCE Auto-DR Program Information www.sce.com/autodr • Auto-DR Help Desk 1-866-238-3605 AutoDR@sce.com • SCE DR Program Information www.sce.com/drp • Demand Response Help Desk 1-866-334-7827 DRP@sce.com • CAA Technical Support 1-800-935-5112 CAASupport-Projects@sce.com