Public Power - May 2008 - (Page 20)

Mandatory Time-of-Use Pricing Join ESRI and Transform Your Future small business customers would pay prices that better reflected the true cost of electricity within a “stable and predictable price framework.” The government’s overall plan also explicitly called for smart metering across the province. To inform future decisions before mandatory TOU pricing was implemented, the Ontario Energy Board conducted a “Smart Price Pilot” study in conjunction with Hydro Ottawa, the distributor which serves Canada’s capital city. (The Board also Career Opportunities with the World Leader in GIS Are you looking for a career where you can apply your utility industry expertise with an innovative, growing company?JoinESRI,theworldleaderin geographic information system (GIS) software development. We are looking for talented sales, marketing, consulting, and project management professionals to share their industry knowledge, experience, and unique perspectives. Join ESRI and share our commitment to making a difference in the future of the utility industry. Opportunities include Utilities Account Executives (multiple regional offices) Electric and Gas Industry Solutions Manager Utility Technical Marketing Analyst Consultant/Project Manager—Energy Consultant/Project Manager—Water/ Wastewater “The pilot’s goals were to assess the extent to which various TOU pricing plans reduced peak demand and shifted consumption, and to gain a better understanding of how residential customers felt about TOU pricing.” The Ontario Energy Board was then charged with implementing this vision through new legislation. It held several meetings with stakeholders and the Board then implemented the Regulated Price Plan in April 2005. In addition to continuing the tiered pricing for conventional meters, the Regulated Price Plan also included the TOU pricing structure for smart meters that is in place today and is the basis for the mandatory plan. Since time-of-use pricing is not yet mandatory, local distribution utilities may opt to implement such pricing for customers with time-of-use (or “smart”) meters instead of the “two-tiered pricing” used for customers with conventional meters. There are three TOU periods–off-peak, mid-peak, and on-peak–and the hours for mid-peak and on-peak differ significantly between winter and summer. The chart on page 19 shows current TOU prices and periods. The rates reflect ratios of 2:1 and 3:1 for mid-peak to off-peak and on-peak to off-peak prices, respectively. Currently, most customers still have conventional meters and are on the two-tiered price plan instituted in 2004. Prices are determined by the amount of consumption each month and the consumption thresholds vary twice a year for residential consumers. This “seasonal” threshold was the only major change made by the Ontario Energy Board to the interim two-tier price plan introduced by the government. For non-residential consumers, a threshold that stayed the same year-around was maintained. The price structure for the two-tiered plan is shown on page 21. approved related pilots proposed by local utilities that focus on smart thermostats, real-time monitors, sub-metered condominiums, and business customers). The study started with recruitment in June 2006. It was then implemented for seven months starting Aug. 1. Its purpose was “to test the reactions and impacts on consumer behavior of different time-sensitive price structures.” More specifically, the pilot’s goals were to assess the extent to which various TOU pricing plans reduced peak demand and shifted consumption, and to gain a better understanding of how residential customers felt about TOU pricing. Three different TOU price options were tested and compared to a control group on the current two-tiered pricing plan described above. (As noted, most Ontario customers are currently on the two-tier rate plan.) A random sample was used to select customers for each group. Customers in the first group were on a pricing plan with “TOU pricing only.” This plan mirrored the current TOU plan. Another group was on the TOU pricing plan, but with a critical peak pricing component added. The third group was on a TOU pricing plan that included a critical peak rebate feature. The critical peak pricing plan included a price of 30 cents/kWh during critical peak events (replacing the on-peak TOU price). Before the pilot went into effect, it was estimated that there would be nine critical peak events during the study period and each event would last three to four hours. In fact, there were seven such events due to moderate weather, four in the summer and three in the winter. To offset the overall impact of PUBLIC POWER Learn more about ESRI and apply online at www.esri.com/power. Copyright © 2007 ESRI. All rights reserved. The ESRI globe logo, ESRI, and www.esri.com are trademarks, registered trademarks, or service marks of ESRI in the United States, the European Community, or certain other jurisdictions. ESRI is an equal opportunity employer. 20 MAY 2008 http://www.esri.com

Table of Contents Feed for the Digital Edition of Public Power - May 2008

Public Power - May 2008 Contents Perspective LEEDing the Way Ontario Moves to Mandatory Time-of-Use Pricing Journey to the Smart Grid Right-Sizing Transformers Energy Audits for Large Industries Economic Development Community Broadband Reliability Hometown Connections Parting Shot

Public Power - May 2008

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