System Reliability Procurement: Non-wires Alternatives in Rhode Island

Tim Roughan

National Grid

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Origins – RI Legislation

Least Cost Procurement Law - 2006

Intended to:

Increase stability through resource diversification

Integrate renewables

Reduce cost of energy

Increase accountability in planning and administration

Required the development of Standards for Energy Efficiency and System Reliability Procurements

Basis for 3-year EE plans

Approved in 2009

Updated in 2011

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Origins – RI Legislation

Despite approval of proposed SRP Plan in 2009, no SRP funding

Some EE budget money set aside for SRP analysis tool development

Internal guidelines for NWA consideration developed in 2010/2011

EE/SRP Standards updated in 2011

More detail in SRP section on funding, BC analysis and reporting

Incorporated project eligibility criteria from internal guidelines

Established annual reporting

First SRP Report was approved and funded in 2012

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Our Internal Process

Internal Principles Document

Cross-functional agreement on NWA process

Approved in February 2011

2 Review Cycles (below)

If NWA options are available, wires and NWAs are considered together

Initial Review: Engineering

•Review capital project needs to determine potential for NWA•Viable needs must:•Have >$1M wires option budget•Be unrelated to asset condition•Have >= 3 year lead time•Be <20% of total area’s load

Secondary Review: Customer

Org.•Review shortlist from T&D for quantitative NWA potential•Review should include assessment of:•Customer base•Load drivers•Available technologies

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Identified Need

Two Feeders out of Tiverton

substation serving Tiverton &

Little Compton

Forecasted to be overloaded

starting in 2014

Potential for ~5,600 affected

Customers: 80% Residential,

20% C&I

Wires solution – substation

upgrade – will cost $2.9

million in 2014

Non-wires Goal: provide load

relief starting in 2014, up to

1MW by 2017

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Pilot Design – A Collaborative Approach

Project plan includes SRP and EE components

New technology, enhanced incentives, marketing and evaluation through SRP funding

Measures delivered through EnergyWise, the RI single family, residential audit program

Demand response events conducted through SRP funding

Benefit/cost analysis uses the Total Resource Cost model

Uses same avoided costs as the statewide programs

Added benefits associated with the DR events

Regional T&D deferral benefit is replaced with specific locational T&D deferral benefit as calculated as a revenue requirement for deferral years 2014 through 2017

Associated benefits/costs of the leveraged EE components included in BC but not claimed by SRP

Pilot must be cost effective over full six-year life, not in each year

2012 Components

• Wi-fi Thermostats for Central AC Units

• Higher Frequency of EE Audits

• DR Lighting Ballast (Commercial Only)

2013 Enhancements

• Wi-fi Thermostats and Smart Plugs for Window AC Units

• Energy Star Window AC Purchase Rebate

• AC Unit Recycle Rebate

• Increased, Direct Marketing

• Community Event7

Technologies and Methods

Preliminary Results to Date

Year ParticipantsThermostats Installed

Window AC Control Plugs Installed

Estimated kWh Savings

Estimated kW Savings

Anticipated DR Savings (kW)

Total Estimated kW

2012 29 35 0 3,640 8.1 44 52.1

2013 45 57 45 18,744 28.8 75 113.8

Total 74 92 45 22,384 36.9 119 155.9

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150kW load reduction needed in 2014.

This does not include savings from measures installed as a result of home

energy audits completed in the area

180 customers in 2012

83 customers so far in 2013

Evaluation of pilot program will determine amount of resulting savings that are

attributable to the pilot

Thank You!