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NAESB Wholesale Electric Demand Response Measurement

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Title: IRC MC Subject: NAESB Wholesale DR Author: Eric Winkler Last modified by: P Wattles Created Date: 4/21/2005 2:28:35 PM Document presentation format – PowerPoint PPT presentation

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Title: NAESB Wholesale Electric Demand Response Measurement


1
NAESB Wholesale Electric Demand Response
Measurement Verification Standards
  • Eric Winkler, Ph.D., ISO-New England
  • Donna Pratt, New York ISO
  • Paul Wattles, ERCOT
  • January 14, 2009

2
Wholesale Demand Response Standards Overview
3
Goals/Guidelines
  • Consolidate standards for existing and proposed
    Demand Response (DR) products and Performance
    Evaluation methodologies
  • Define Common Terms
  • Ensure compliance with tariffs, market rules,
    operating procedures, protocols and manuals
  • Collaborate with ISO/RTOs, IRC, Retail Leadership
    and NAESB Stakeholders

4
Standards Approach
  • Measurement and Verification (MV) standards are
    intended to facilitate Demand Response in
    wholesale electricity markets by providing a
    common framework for
  • Transparency
  • Accessible and understandable MV requirements
    for Demand Response products
  • Accountability
  • Criteria that will enable the System Operator to
    accurately measure performance of Demand Response
    resources
  • Consistency
  • Standards applicable across wholesale electricity
    markets

5
Standards Applicability
  • These standards do not establish requirements
    related to the compensation, design, operation,
    or use of Demand Response services
  • System Operators are not required to offer these
    Services and may not currently offer each of
    these Services
  • For purposes of these wholesale MV standards,
    Demand Response does not include MV of energy
    efficiency or permanent Load reduction

6
Standards Scope and Impact
  • Scope Limitation
  • Proposal is limited to MV aspects of DR products
  • No product eligibility characteristics or other
    participation features are defined in these
    standards
  • Impact on Existing Products
  • All current ISO/RTO demand response products are
    consistent with the proposed standards
  • Local differences may be covered under clauses
    such as System Operator shall specify or
    unless otherwise specified by the System
    Operator, so long as transparency requirements
    are met

7
Tariff NERC Standards Conflicts
  • System Operators Tariffs, market rules,
    operating procedures, protocols or manuals have
    precedence in the event of any conflict.
  • Terms defined in the Definition of Terms section
    are critical to understanding the applicability
    of these MV standards, but do not modify or
    supersede market rule or tariff definitions that
    apply to the compensation, design, operation, or
    use of Demand Response services.
  • All entities supplying Demand Response Services
    shall comply with NERC reliability standards.

8
Consistency w/ NERC Interest in Demand Side
Management
9
Wholesale Demand Response Standards Structure and
Content
10
Definitions of Terms
  • Definition of Terms was developed to clarify
    specific meanings of terms while providing
    consistency and conformance to
  • ISO/RTO Standard Reference
  • FERC
  • NERC
  • Terms Areas
  • Demand Response Event Timing
  • General Terms

11
Demand Response Event Timing
12
General Terms
Adjustment Window After-the-Fact
Metering Aggregated Demand Resource Baseline
Baseline Adjustment Baseline Type-I (Interval
Metered) Baseline Type-II (Non-Interval
Metered) Baseline Window Capacity Service
Demand Response Provider Demand Demand Reduction
Value Demand Resource Demand Response Energy
Service Highly-Variable Load Load Maximum Base
Load Meter Before / Meter After Meter Data
Recording Interval Meter Data Reporting
Deadline Metering Generator Output Performance
Window Ramp Rate Regulation Service Reserve
Service System Operator Telemetry Telemetry
Interval Validation, Editing and Estimation
Product Types, Performance Methodologies,
Key Terms
13
Demand Response Products
  • Energy Service
  • A type of Demand Response service in which Demand
    Resources are compensated based solely on Demand
    reduction performance.
  • Capacity Service
  • A type of Demand Response service in which Demand
    Resources are obligated over a defined period of
    time to be available to provide Demand Response
    upon deployment by the System Operator.
  • Reserve Service
  • A type of Demand Response service in which Demand
    Resources are obligated to be available to
    provide Demand reduction upon deployment by the
    System Operator, based on reserve capacity
    requirements that are established to meet
    applicable reliability standards.
  • Regulation Service
  • A type of Demand Response service in which a
    Demand Resource increases and decreases Load in
    response to real-time signals from the System
    Operator. Demand Resources providing Regulation
    Service are subject to dispatch continuously
    during a commitment period. Provision of
    Regulation Service does not correlate to Demand
    Response Event timelines, deadlines and
    durations.

14
Product Standards Overview
General
Advance Notification Deployment Time Reduction Deadline Release/Recall Normal Operations Demand Resource Availability Measurement Aggregation Transparency of Requirements
After-the-Fact-Metering
After-the-Fact Metering Requirement Meter Accuracy Details of Meter/Equipment Standards Meter Data Reporting Deadline Meter Data Reporting Interval Clock/Time Accuracy Validating, Editing Estimating (VEE) Method On-Site Generation Meter Requirement
Telemetry
Telemetry Requirement Telemetry Accuracy Telemetry Reporting Interval Other Telemetry Measurements Communication Protocol Governor Control Equipment On-Site Generation Telemetry Requirement
Performance Evaluation
Rules for Performance Evaluation
15
Performance Evaluation
  • A performance evaluation methodology is used to
    determine the Demand Reduction Value provided by
    a Demand Resource. The standards include
    descriptions of acceptable Baselines and
    alternative performance measurements.
  • Maximum Base Load
  • Meter Before / Meter After
  • Baseline Type-I
  • Baseline Type-II
  • Metering Generator Output

16
Evaluation Methodologies
  • Maximum Base Load
  • A performance evaluation methodology based solely
    on a Demand Resources ability to reduce to a
    specific level of electricity consumption or
    demand, regardless of its electricity consumption
    or demand at Deployment.
  • Meter Before / Meter After
  • Metering Before Deployment vs. Metering After
    Reduction Deadline is a performance evaluation
    methodology where electricity consumption or
    demand over a prescribed period of time prior to
    Deployment is compared to similar readings during
    the Sustained Response Period.

17
Evaluation Methodologies
  • Baseline Type 1 (Interval Metered)
  • A Baseline model based on a Demand Resources
    historical interval meter data which may also
    include but is not limited to other variables
    such as weather and calendar data.
  • Baseline Type 2 (Non-interval Metered)
  • A Baseline model that uses statistical sampling
    to estimate the electricity consumption of an
    Aggregated Demand Resource where interval
    metering is not available on the entire
    population.
  • Behind-The-Meter Generation
  • A performance evaluation methodology, used when a
    generation asset is located behind the Demand
    Resources revenue meter, in which the Demand
    Reduction Value is based on the output of the
    generation asset.

18
Evaluation Standards Overview
Baseline Information
Baseline Window Calculation Type Sampling Precision and Accuracy Exclusion Rules Baseline Adjustments Adjustment Window
Special Processing
Highly-Variable Load Logic On-Site Generation Requirements
Event Information
Use of Real-Time Telemetry Use of After-the-Fact Metering Performance Window Measurement Type
19
Performance Evaluation Criteria
  • Rules for Performance Evaluation
  • Applicable Performance Evaluation methodologies

Performance Evaluation Type Service Type Service Type Service Type Service Type
Performance Evaluation Type Energy Capacity Reserves Regulation
Maximum Base Load ? ? ?
Meter Before / Meter After ? ? ? ?
Baseline Type-I ? ? ?
Baseline Type-II ? ? ?
Metering Generator Output ? ? ? ?
20
Wholesale DR Standards Informal Comment Overview
21
Informal Comments
  • October 2nd ISO/RTO work group presentation of
    recommendation
  • October 6th October 22nd Informal Comment
    period open to all interested parties regardless
    of membership status.
  • October 24th NAESB posts informal comments to
    website.
  • November 4th NAESB compiled comments received by
    ISO/RTO.
  • November 25th ISO/RTO work group submits reply
    comments and revised Recommendation.
  • December 2nd DSM-EE Subcommittee meeting
    considers comments and revised Recommendation.

22
Informal Comment Responders
American Electric Power Service
Corporation Arizona Public Service BGE ConEdiso
n E on U.S. Efficiency Valuation
Organization ELCON EnerNOC EPRI IRC
Standards Review Committee Kansas City Power
and Light National Rural Electric Cooperative
Association Portland General Electric Southern
Company TVA
23
Informal Comment Categories
  • Baseline representation
  • Concern over the amount of flexibility given to
    the System Operator
  • Concern regarding the standards effect on
    retail
  • Definitions
  • Flexibility is Important in the Standards
  • General Comments
  • Greater Clarity
  • Request for Examples
  • Specific Comments on the Standards
  • Standards Clarification
  • Suggested Additions to the Standards
  • Suggested Deletions
  • Suggested Rewording
  • Support
  • The application of the standards on negotiated
    contracts
  • The draft is a framework, not standards

24
Informal Comment Details
  • 90 Comments from 14 responders
  • 90 Responses provided in late comments from
    ISO/RTO
  • 18 Agreeing responses with no changes
    recommended
  • 8 Agreeing responses with language changes
  • 8 Clarifying responses with no changes
    recommended
  • 37 Disagreeing responses with no changes
    recommended
  • 19 Responses indicating no clear action may be
    taken based on comment
  • 180 Revisions to Recommendation

25
Informal Comment Details
Category Agree no change Agree language change Clarify no change Disagree no change Unclear no change Grand Total
Baseline representation     1     1
Concern over amount of flexibility given to the System Operator 3 2 5 10
Definitions   2 2
Flexibility is Important in the Standards   1 1
General Comments   4 2 6
Greater Clarity 1 7 3 7 5 23
Request for Examples 2 3 5
Specific Comments on the Standards 3 1 4 10 1 19
Standard Clarification 2 1 3
Suggested Additions to the Standards 1 4 3 8
Suggested Rewording 1 1
Support 5 5
The application of the standards on negotiated contracts   1 1
The draft is a framework, not standards   3 2 5
Grand Total 18 8 8 37 19 90
26
Informal Comment Details
Company Agree no change Agree language change Clarify no change Disagree no change Unclear no change Grand Total
American Electric Power Service Corporation 1     3 2 6
Arizona Public Service   1 1 2
BGE 2 1 3 3 1 10
ConEdison   3 5 8
E on U.S.   1 4 2 7
Efficiency Valuation Organization   4 4
ELCON 2 1 4 1 8
EnerNOC 4 4
EPRI 5 2 7
Entergy 2 4 8 1 15
Kansas City Power and Light 1 1
National Rural Electric Cooperative Association 2 3 1 6
Portland General Electric   1 1
Southern Company 2 1 1 4 8
TVA 1 1 1 3
Grand Total 18 10 6 36 20 90
27
Response Highlights
  • Request for Examples
  • Comments asking for application of the standards
    to existing or proposed programs.
  • Concern Want to be careful not to imply a higher
    degree of technical specificity at this time.
  • Response A working document supporting the
    responders request for clarity from an example
    is to be provided.
  • Implications Additional work needs to be done by
    ISO/RTO group to generate examples of application
    of the standards to existing standards.
  • NYISO DR Regulation program tentatively
    identified as possible example program.

28
Response Highlights
  • All Categories
  • Comments that were positive or negative that did
    not contain a suggested change.
  • Concern No action can be taken as a result of
    the comment without specificity.
  • Response (Positive) Agree
  • Response (Negative/Neutral) The responder is
    free to submit a request with enough specificity
    to generate a change to the recommendation. The
    request could be considered now or may be
    addressed once the standards are approved.
  • Implications Potential work for ISO/RTO if a
    specific comment comes in during formal comment
    period.

29
Response Highlights
  • Framework Versus Standards
  • Comments raised regarding the lack of specificity
    in Standards.
  • Concern Specific approach by ISO/RTO was to find
    common ground versus develop detailed technical
    standards. Specific reference to the term
    Framework on Performance Evaluation led to
    comments suggesting overall standards were a
    framework. However, the term framework implies
    program design which is not the intent.
  • Response (General) Commonality in technical
    requirements does not preclude a minimum set of
    standards that may be unique to product
    application but common to product type.
    Standards require transparency and thereby affect
    the product use and uniformity.
  • Implications ISO/RTO may be requested to develop
    technical standards in the future.

30
Response Highlights
  • Requests for greater clarity
  • Comments addressing numerous areas requiring
    greater clarity, additional specifications,
    disagreement on standards practices

31
Recommendation Changes
  • Enhanced definition of Regulation Service
  • Modified language of Tariff Conflict and NERC
    Standards
  • Modified Telemetry terminology and Standards
  • Added clarifying language to Demand Response
    Event Definition
  • Refined After-the-Fact Metering Performance
    Measurement terminology
  • Refined Applicability
  • Refined Aggregation Standard
  • Refined Meter Accuracy Standard
  • Addition of exclusion rules under Baseline Type-I
    II
  • Added applicability of Maximum Base Load to
    Reserve Service
  • Corrected consistency of active/passive voice
    usage

32
Recent DSM/EE Sub Committee Activity
  • December 2, 2008 The group met in Birmingham
    hosted by Alabama Power to review comments and
    vote on the recommendation for Wholesale Electric
    Quadrant standards for MV characteristics for DR
    products and services. After considerable
    discussion, and several votes to amend the
    recommendation the recommendation with the
    amendments put forward by the ISOs and RTOs and
    three separate amendments addressing titling,
    applicability, and additional specificity for the
    definition of Baseline, the motion to adopt the
    revised recommendation was approved with
    significant support with 86.5 percent approval by
    balanced vote. All WEQ segments were present and
    voting. The revised recommendation will go out
    for a thirty day comment period and is now
    considered a work product of the WEQ EC. The
    abbreviated update report was given for the
    Retail market effort. The Retail group plans to
    use the WEQ revised recommendation as a
    foundation for their work.

33
Change to Title of Standards
  • Business Practices for a Framework for
    Measurement Verification of Wholesale
    Electricity Demand Response

33
34
Change to Applicability
  • Applicability of Measurement and Verification
    Standards
  • ISO/RTO Administered Markets
  • These standards were developed by the Independent
    System Operators (ISO) and Regional Transmission
    Organizations (RTO) in North America through the
    North American Energy Standard Board (NAESB)
    stakeholder process. These standards are
    applicable only to Independent System
    Operator-Regional Transmission Organization
    administered markets in North America. The
    standards reflect business practices applicable
    to measurement and verification of wholesale
    market Demand Response services including the
    following four product/service categories1
  • Non-ISO/RTO Markets
  • These standards do not apply in markets
    administered by non-ISO/RTOs. Wholesale Demand
    Response standards applicable to non- ISO/RTO
    markets will be developed when required.

35
Change to Baseline Definition
A Baseline is an method of estimating estimate of
the electricity that would have been consumed by
a Demand Resource in the absence of a Demand
Response Event. The Baseline is compared to the
actual metered electricity consumption during the
Demand Response Event to determine the Demand
Reduction Value. Depending on the type of Demand
Response product or service, Baseline
calculations may be performed in real-time or
after-the-fact. The System Operator may offer
multiple Baseline models and may assign a Demand
Resource to a model based on the characteristics
of the Demand Resources Load or allow the Demand
Resource to choose a performance evaluation model
consistent with its load characteristics from a
predefined list. A baseline model is the simple
or complex mathematical relationship found to
exist between Baseline Window demand readings and
Independent Variables. A baseline model is used
to derive the Baseline Adjustments which are part
of the Baseline, which in turn is used to compute
the Demand Reduction Value. Independent variable
is a parameter that is expected to change
regularly and have a measureable impact on
demand. Figure 2. below illustrates the concept
of Baseline relative to a Demand Response Event.

36
QUESTIONS
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