Load Management Maximizing Demand Response Programs EUCI Conferences Westminster, Colorado October 8...

Load ManagementMaximizing Demand Response Programs

EUCIConferences

Westminster, ColoradoOctober 8 & 9, 2003

On Call - 1,000 MW and On Call - 1,000 MW and Fifteen Years LaterFifteen Years Later

Ed Malemezian

EUCI Conferences

Load ManagementOctober 8 & 9, 2003

Florida Power & Light - TodayFlorida Power & Light - Today

9,600 Employees

8 million people

Half of Florida

86 Generating Units

500 Substations

69,000 miles of transmission and distribution lines

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Florida Power & Light - April 2003Florida Power & Light - April 2003

Sector Number of Accounts

Total Sales (kwh)

Residential 3,566,000 51%

Commercial 435,000 41%

Industrial 15,000 4%

Other 3,000 4%

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Average Monthly Energy Usage per Average Monthly Energy Usage per Customer (in kWh)Customer (in kWh)

Residential Commercial Industrial

2002 1,189 7,663 21,764

2001 1,136 7,416 22,070

2000 1,131 7,425 19,129

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Peak Energy Use - SystemwidePeak Energy Use - Systemwide

Season Date Megawatts

Summer July 9, 2003 19,668

Winter January 24, 2003 20,190

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Florida Power & Light - The 90’sFlorida Power & Light - The 90’s

FPL has added more than 900,000 customer accounts since

1990. In 2002

alone, FPL

added nearly

94,000 new

accounts for

2.4% growth

Customer Accounts(million)

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Remember the 70’s and 80’s …..Remember the 70’s and 80’s …..

FPL was growing at annual rates of 3%, 4%, and above

Remember the Arab oil embargo in 1973-1974

Remember the sharp price increase in 1974 and again in 1979 (following the 1978 Iranian revolution)

Remember the “Golden Age of DSM Programs” that followed

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Remember the 70’s and 80’s …..Remember the 70’s and 80’s …..

Supply could not keep up with demand …. Prices went up …. Something needed to be done ….

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Demand Side Management ProgramsDemand Side Management Programs

FPL (and other utilities) designed and implemented many different Demand Side Management (DSM) programs

Existing programs served as the jumping off point for many new DSM initiatives

These programs were designed to: Reduce Energy Consumption and / or Reduce Utility Peak Demand

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Reduce Energy Consumption - kWhReduce Energy Consumption - kWh

Energy efficiencies - motors, A/C SEER, refrigerators, white goods, etc

Whole house efficiency programs Lighting Window film Attic insulation Energy audits Many others

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Reduce Utility Peak Demand - kWReduce Utility Peak Demand - kW

All the previous energy savings programs take some kW off peak

Thermal storage Time of Use rates Real Time Pricing rates Demand Response programs Load Control - Direct and Indirect

… note the lines get fuzzy ...

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The 70’s - Curtailable Rates - IndirectThe 70’s - Curtailable Rates - IndirectProvided demand reduction during times of

emergency

Curtailments were very labor intensive

Power Supply notified FPL account managers via pager

FPL account managers called customers by telephone

The “right people” were sometimes elusive and tough to find

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Curtailable Rates - continuedCurtailable Rates - continued

The program depended on each customer to drop the proper amount of load

Customers generally ran around turning off circuit breakers

Customers sometimes did not comply, and thereby incurred penalties

There had to be a better way ….

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Objectives for New Load Control Objectives for New Load Control ProgramsPrograms

Increase participation - get more MW reduction when required

Simplify and automate the execution process

Hard control vs. soft control

Dependable MW’s translate directly to higher incentives available for customers

Provide customers with additional choices

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Why Direct Control ???Why Direct Control ???

FPL needs to satisfy the Peak Demand for electricity

Peak Demand occurs for only a few hours each year

Historically, FPL built power plants to satisfy the Peak Demand

Dependable - The MW’s are really there

Simple, automated, and customer-friendly

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Demand Reduction - Peak Clipping Demand Reduction - Peak Clipping Through Direct Load ControlThrough Direct Load Control

Shapes the utility load curve

Reduces Peak Load Growth

Don’t need to build as many power plants

Results in lower Electric Rates

LOAD CURVE

02468

101214

1 3 5 7 9 11 13 15 17 19 21 23HOUR

MW x1000

CUSTOMER LOAD

PEAK CLIPPING

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Load Control Programs at FPLLoad Control Programs at FPLCommercial and Industrial - CILC & CDR

Direct Control - Bidirectional w/customer feedback Wireless Public Network Communications System -

CDPD / CDMA Telephone units fill in coverage holes First units installed in 1987 520 Customers 450 MW Peak Demand Reduction Customer savings: 5% to 20% typical

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Load Control Programs at FPLLoad Control Programs at FPLResidential and Business On Call

Direct Control - Bidirectional Powerline Communications System First units installed in 1987 710,000 Customers 815,000 Transponders 1,000 MW in normal operation 2,000 MW in an emergency - SCRAM 460 Substations equipped for On Call

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Residential and Business On CallResidential and Business On Call

LCT - Load Control Transponder

Billing / CIS

Client Workstations

(PC)SCADA, Energy

Management, Outage Management Systems and/or Other Platforms

LMS Master Station

DistributionSubstation

Voice Grade Communication

Power Lines (unconditioned)

Substation Communications

Equipment

ServiceTo Home

A/C & HeatWater Heater

LAN / WAN

Electric Meter(with or w/o AMR)Capacitor

Bank

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Major Components of Major Components of TWACSTWACS® ®

LMS - Load Management System - Master Station computer located in FPL’s System Control Center (EMS)

SCE - Substation Communications Equipment - Computer and power equipment located in each TWACS equipped substation

RCE - Remote Communications Equipment - Field equipment: Boxes and under-glass modules that do the work at each customer

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TheThe TWACSTWACS® TechnologyTechnology

OutboundOutboundCommunicationCommunication

InboundInboundCommunicationCommunication

11 33 55 77

4422 66 88

Inbound BitInbound Bit

Outbound BitOutbound Bit

TTAA TTBB

VV11

VV22

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Residential Load Control - On CallResidential Load Control - On Call

Appliances placed “On Call” Central Air Conditioning

Cycle - 15 minutes off, every 30 minutes, for 3 hours Extended - 3 consecutive hours off in 24 hours 7 months: April through October

Central Strip Heat Cycle - 15 minutes off, every 30 minutes, for 3 hours Extended - 4 consecutive hours off in 24 hours 5 months: November through March

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Residential Load Control - On CallResidential Load Control - On Call

Appliances placed “On Call” - continued Electric Water Heaters

Extended - 4 consecutive hours off in 24 hours 12 months: year round

Swimming Pool Pumps Extended - 4 consecutive hours off in 24 hours 12 months: year round

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Residential On Call IncentivesResidential On Call Incentives

Incentive Payments per Year Air Conditioning Cycle: $42 old / $21 new Air Conditioning Extended: $63 Strip Heat Cycle: $10 Strip Heat Extended: $20 Water Heat: $42 old / $18 new Pool Pump: $36 Total per customer: Typical $80 old / $45 new

New incentive $$ apply to customers signing up or changing after April 1, 2003

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Business On CallBusiness On CallDirect Expansion (DX) Air Conditioning

Cycle - 15 minutes off, every 30 minutes, for 6 hours maximum

7 months: April through October Must use AC from 3-5 PM, 4 days / week Incentive: $2 per ton, per month 20 tons per customer - typical today 16,000 Customers 42 MW in normal operation 83 MW in an emergency - SCRAM

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On Call Demand Reductions AttainedOn Call Demand Reductions Attained

Typical Demand Reduction (kW) At the Generator - Summer

Residential Normal 1.44 kW Per Customer

Residential SCRAM 2.77 kW Per Customer

Business Normal 0.34 kW Per Ton

Business SCRAM 0.78 kW Per Ton

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Substation Control EquipmentSubstation Control Equipment

Modulation Transformer Unit

Outbound Modulation Unit

Control & Receiving Unit

(inside building)

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Load Control Transponder - LCTLoad Control Transponder - LCT

Remote Control of “convenience” loads to reduce peak demand

Two-Way to confirm receipt of commands

Monitors loads to measure effectiveness Independent control of two appliances Autonomous “cycling” of appliances Downloadable addresses and shed strategy

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Typical LCT InstallationTypical LCT Installation

Thermostat

Fan

COOL

ON

OFF

Load Control Transponder

AUTO

24V120V

FanControl

CoolingControl

PowerSupply

WaterHeater

240VCentral

A/C System

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TWACSTWACS® Also Does AMR at FPLAlso Does AMR at FPL Uses same communications infrastructure as On

Call 40,000 Meters today Residential customers Hard to read: Fences, dogs, inside meters, etc. Safety concerns In service for approximately 10 years FPL is presently evaluating an AMR rollout

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Customer PromotionCustomer Promotion

In the beginning …. FPL promoted On Call very heavily Residential only Print ads TV Bill inserts Word of mouth Very popular program Thousands and thousands of customers signed up

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Customer Promotion - continuedCustomer Promotion - continued

Today …. Business On Call - Targeted marketing Residential On Call - No marketing

Number of MW is capped Word of mouth Friends, neighbors, relatives 300 calls a week Web site - 60 inquiries a month Closure rate: 80% to 85% Still very popular

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On Call Savings - Web InformationOn Call Savings - Web Information

On Call is the easiest way to lower your electric bill. By going "On Call" you agree to let FPL occasionally cycle off select major appliances for short periods of time, only when absolutely necessary.

Most likely, you won't even notice when the On Call program is activated. But you'll definitely notice the savings. That's because in exchange for making your appliances available to go On Call, FPL will credit your electric bill every month - even if the program is never activated.

Only the appliances you choose will be enrolled in the program, which means you're in control of the savings

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Customer InconvenienceCustomer InconvenienceThe key to successful Direct Load Control is a

proper understanding of customers and their feelings … Surprise … Surprise !!!

Extensive, up front, research must be done to find out the points where Customers notice your are controlling them Customers get upset enough to exit the program

FPL does an excellent job - The proof is in the pudding ... very few customers ever drop outvery few customers ever drop out

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What Happens When Customer MovesWhat Happens When Customer Moves LCT remains in place Immediately after the electric service is made

active, the new customer is sent a letter... “Congratulations” ... you are very fortunate to have

moved into a home equipped with On Call ... On Call details and credit amount are provided “Thanks for your participation” ... You can request On Call be changed or deactivated

any time you are unhappy with it

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Customer Moves - continuedCustomer Moves - continued

The new customer’s response …. Virtually 100% are happy to try out On Call Very few ever call back later to get On Call

deactivated The customer is happy with the credit $$ FPL is happy … it’s investment is preserved Everybody wins … what a deal !!!

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Demand Response or Direct Load Demand Response or Direct Load Control ???Control ???Demand Response is defined …

Pricing programs or rate structures, including time-of-use and real-time prices, which provide energy consumers with a price per unit of energy that varies according to the period in which the energy is purchased or consumed, to allow customers to vary their demand and usage in response to such prices, and manage their energy costs by shifting usage to a lower cost period, or reducing consumption overall

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Demand ResponseDemand ResponseCustomers get to:

Choose how they respond Choice is good - Freedom, the customer is in charge Choice is bad - Decisions need to be made

Set the degree of “inconvenience” experienced

Response can be manual to fully automated Manual Response

Simple, less costly systems Requires a customer response each time Risky if the customer does not respond - not home

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Demand Response - continuedDemand Response - continuedResponse can be manual to fully automated

Automated Response More complicated systems Once set up, does not require any further customer response Little risk - Response happens even if not there Residential - These systems are starting to emerge Commercial Industrial - Still a very big opportunity for

practical systems to be developed & deployed In my opinion, Automated Systems are the only way to

go !!!

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Direct Load Control - On CallDirect Load Control - On CallCustomers get to:

Choose to participate or not Choose the devices controlled

Central Air Conditioning Central Strip Heat Water Heater Swimming Pool Pump

Set the degree of “inconvenience” experienced Cycling strategy Extended strategy

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Direct Load Control - continuedDirect Load Control - continuedAutomated Response

Simple, relatively inexpensive system Once installed, does not require any customer

response Little risk

Response happens even if customer is not there Customer receives credit even when FPL does not control

Residential and Business On Call, CILC, and CDR are real ... and they work very well !!!and they work very well !!!

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Demand Response or Direct Load Demand Response or Direct Load Control ???Control ???Demand Response and Direct Load Control have

a great deal in common Both allow customer choices Both are intended to reduce Peak Demand and

associated high-priced, on-peak, energy costs Both reward the customer for reducing utility

energy costs In many respects, Direct Load Control can be

considered as a subset of Demand Response

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Does On Call Work ???Does On Call Work ???

80 MinuteTime-out

Normal Load Control

Generation LostSystem SCRAM

RestorationStarted

Restoration

Suspended

More Generation LostSystem re-SCRAM

RestorationStarted

Predicted Demand ProfilePredicted Demand Profile

TIME OF DAYTIME OF DAY

SY

ST

EM

SY

ST

EM

LO

AD

(M

W)

LO

AD

(M

W)

Over 975 Over 975 MegawattsMegawattsShed in 60 Shed in 60 SecondsSeconds

August 1995August 1995

Today Have Today Have 2000 MW 2000 MW

Available for Available for SCRAMSCRAM

On Call SCRAMOn Call SCRAM

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Does It Work ??? - Other ExamplesDoes It Work ??? - Other Examples May 5, 2003 - 52 MW - Turkey Point trips Sept 9, 2002 - 138 MW - Manatee Plants trip Jan 10, 2001 - 236 MW - 5 units derated Jan 5, 2001 - 892 MW - Weather / Emergency sales Jan 1, 2001 - 1200 MW - Inadvertent SCRAM July 20, 2000 - 331 MW - Emergency sales May 26, 2000 - 525 MW - 2 Plants trip Sept 4, 1999 - 717 MW - Capacity shortage July 29, 1999 - 639 MW - Emergency sales … plus more … these were just some of the more notable examples

…

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Does It Work ??? - Other ExamplesDoes It Work ??? - Other Examples Most On Call activations were in response to system

capacity shortages created by: Extremes in weather Generating units tripping offline Other emergencies - gas pipeline explosion

On Call can be activated to relieve localized trouble Transmission constraints - fires under 500 kV Voltage / VAR / Stability problems Individual substation overloading - outage and weather

It works just as intendedIt works just as intended … that’s a very good thing !!!that’s a very good thing !!!

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FPL-All Load Management ProgramsFPL-All Load Management Programs

FPL actively works with customers to help them reduce their use of electricity and control their bills.

These programs remain among the most effective in the nation

In total, have reduced enough electricity demand to date (3,300 MW) so that FPL has been able to avoid building the equivalent of 10 (400 MW) power plants.

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ConclusionsConclusionsLoad Management remains a key component of the

Utility Integrated Resource Planning process at FPL

Load Management should include Demand Response and Direct Load Control Traditional DSM programs

Each program fills it’s piece in the puzzle

Don’t abandon traditional ideas just because they lack some glitzglitz ….

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Questions ????Questions ????

772-286-9831 [email protected]

Load Management Maximizing Demand Response Programs EUCI Conferences Westminster, Colorado October 8...

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