Benchmarking A Tool for Technology Evaluation

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Benchmarking A Tool for Technology Evaluation

• PLMA / IEA Conference
• September 8, 2003
• Steve Rosenstock, P.E.
• Manager, Energy Solutions

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Overview

• Benchmarking Why do it ?
• A Historical Look at DR data
• Results from the EEI / PLMA Benchmarking Studies
• Questions Answers

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Benchmarking - Why Do It ?

• You cant manage what you cant measure
• Apples to Apples comparisons
• Management Questions
• How are other companies doing it? (harder to
  know in a competitive environment)
• Are other companies getting better results at
  lower costs?
• What are the costs and benefits, compared to
  other companies?
• Is the technology actually working in the
  field?
• Are there innovative technologies or processes
  that can help make our program better?

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Benchmarking - Why Do It ?

• Compare similar DR programs
• Compare DR systems that are the key components of
  DR programs
• Compare key technologies that are the backbone
  of the DR systems. For example, in a direct load
  control (DLC) system, you may want to compare the
  performance of
• Appliance control switch (proper cycling,
  received signal)
• Appliance monitoring system (kW / therm
  reduction, operational status)
• Communication system (signal sent / received)

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Benchmarking Why Do It ?

• Saturation statistics ( of eligible customers
  that participate in a program).
• Detailed program cost and kW / kWh or Btu / therm
  results.
• Actual versus Potential energy or peak demand
  savings.
• Statistics on joining or dropping out of
  programs.
• Comparison of financial and non-financial
  incentives.
• Statistics on hardware and communication
  equipment.
• Data on use of the Internet for DR programs.

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Benchmarking Data Sources

• EPRI 1994 Survey of Utility Demand-Side
  Programs and Services (Report TR-105685)
• U.S. Energy Information Administration (EIA)
  annual reports on Utility DSM programs (1994 -
  1999)
• EEI report on Load Management Benchmarking using
  EIA data (August 2000)
• EEI / PLMA Survey of Demand Response programs for
  2001 and 2002
• Other reports and presentations from experts in
  this room

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Benchmarking Past Information

• Based on the EPRI report, in 1994 in the US,
  there were
• 333 load control programs, with 6,720,427
  participants
• 177 load management rate programs, with 547,422
  participants
• 119 thermal storage programs, with 43,710
  participants
• 31 standby generation programs with 630
  participants
• Overall, the EPRI report showed information on
  759 load management programs offered in the
  United States in 1994.

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EEI Report (based on 1998 EIA Data)
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EEI Report (based on 1998 EIA Data)
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EEI Report (based on EIA Data)

• Load Management Program Costs
• 466,150,000 (Total of 288 utilities)
• Average cost 1,619,000
• Median cost 66,000
• LM Costs as a of Total DSM Costs
• Average 53.29 (256 utilities)
• Median 57.02

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EEI / PLMA Benchmarking Survey

• Internet based survey
• Designed for entities that are operating DR
  programs
• No cost to participate in the survey or receive
  the survey results
• Company / Entity names are coded to protect
  privacy
• Participants receive access to detailed results
• PLMA posts summary results on its web site

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Questions Answers

• The floor is open!