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NAESB Measurement and Verification Model Business Practice Retail Electric Demand Response


NAESB. MEASUREMENT AND VERIFICATION MODEL BUSINESS PRACTICE. RETAIL ELECTRIC ... Measurement and Verification (M&V) standards are intended to facilitate Demand ... – PowerPoint PPT presentation

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Title: NAESB Measurement and Verification Model Business Practice Retail Electric Demand Response

NAESBMeasurement and Verification Model Business
PracticeRetail Electric Demand Response
  • NARUC update 9/14/09

Approach for Retail Standard
  • Determine that the RTO draft recommendation could
    apply to the retail draft recommendation with
    proper wording changes
  • Determine that the RTO draft recommendation
    provides a framework for the retail draft
    recommendation, but more detail is necessary
  • Determine that the retail draft recommendation
    needs to be more prescriptive than the wholesale
    draft recommendation.

Model Business Practice
  • Measurement and Verification (MV) standards are
    intended to facilitate Demand Response in retail
    electricity markets by providing a common
    framework for the following
  • Transparency accessible and understandable MV
    requirements for Demand Response products
  • Accountability criteria that will enable the
    Program Administrator to accurately measure
    performance of Demand Response resources
  • Consistency standards applicable across retail
    electricity markets
  • Comprehensive strives to cover all forms of
    Demand Response

  • Worked closely with
  • Wholesale standards group to maintain
    consistency with current approved standard
  • NERC to insure consistency with reliability
  • AEIC as they develop load research standards with
    regards to MV
  • Industry groups and Market Participants involved
    in providing or evaluating demand response
    programs such as EPRI, EnerNoc, Comverge,

  • Limited to Demand Response programs only
  • Does not include Measurement and Verification of
    energy efficiency programs or for permanent load
  • Confined to the retail markets. If a utility has
    programs that are bid into and operate in the
    wholesale markets then the wholesale standard
    will take precedence.
  • Standards are voluntary across state
    jurisdictions. They can be adopted by individual
    state regulators
  • Program Administrator has significant flexibility
    to adopt more stringent requirements in most
    areas to meet regional needs.

Product Categories
  • Wholesale group developed model business practice
    for each of 4 Product types
  • Energy Services
  • Capacity Services
  • Reserve Services
  • Regulation Services
  • Retail group is developing one model business
    practice to cover all Demand Resource products in
    the retail space

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
  • Metering Generator Output

Definition of Terms
  • Definition of Terms was developed to clarify
    specific meanings of terms while providing
    consistency and conformance where possible to
  • Wholesale Standard
  • FERC
  • NERC
  • AEIC
  • Worked through the NAESB glossary committee to
    adopt definitions

Demand Response Event Timing
Key Definitions
  • Demand Resource A Load or aggregation of Loads
    capable of measurably and verifiably providing
    Demand Response.
  • Demand Response Changes in electric use by
    demand-side resources from their normal
    consumption patterns in response to changes in
    the price of electricity, or to incentives
    designed to induce lower electricity use at times
    of high cost periods or when system reliability
    is jeopardized.
  • Program Administrator An investor-owned,
    governmental or cooperative utility with the
    responsibility for developing and operating
    Demand Response programs

Key Definitions
  • Baseline A method of estimating the electricity
    that would have been consumed by a Customer or
    Demand Resource in the absence of a Demand
    Response Event. It may be calculated using
    interval metering and/or statistical sampling
  • The following figure illustrates the concept of
    Baseline relative to a Demand Response Event.

Baseline Conceptualization
Next Steps
  • Completed formal comment period August 28th
  • Single topic review session planned for
    September 25th.
  • Allows Executive Committee members and interested
    industry participants to discuss recommendation.
  • Allows EC members to review and resolve issues
    from formal comment period members and to prepare
    to vote on recommendation
  • Executive Committee will vote on proposed
    standard on October 2nd
  • Work Group 3 Tasked to look at more technical
    standards for both wholesale and retail going