Public Power - November/December 2007 - (Page 36)

California’s Push for Demand-Response BY WILLIAM ATKINSON ower requirements on the electric grid are in constant flux, based on the demand of the devices connected to it. Demand varies, based on time of day, weather and other factors. Traditionally, supply is varied to meet the demand by increasing or decreasing electric generation capacity. Given the strain on the nation’s electric grid, though, supply cannot always meet demand. As environmental pressures continue to limit options for meeting increasing electricity demand, interest in demand-response programs is growing. Demand-response can be defined as short-term modifications in customer enduse electric loads in response to dynamic price and reliability information. Air conditioner load cycling programs are among the most-used demand-response technologies. “Many utilities offer this program around the country,” said 36 NOVEMBER-DECEMBER 2007 P Mary Ann Piette, research director of the PIER Demand Response Research Center at Lawrence Berkeley National Laboratory in Berkeley, Calif. “This involves customers receiving discounts on their bills during the summer in return for the utilities being able to automatically turn off their air conditioners in certain instances.” However, formal demand-response is much more involved, complex, and potentially beneficial. Dynamic pricing is a crucial element of any demand-response program. As electric demand increases, generation costs increase in a non-linear fashion. For example, a price spike caused by high demand on a hot summer day would initiate short-term modifications in customer end-use electric loads. “These are ‘day ahead’ economic programs,” said Piette. If a power plant failed unexpectedly, a demand-response program could help other operating power plants manage the demand, thereby increasing system reliability and avoiding blackouts. “Reliability-focused scenarios are ‘day of’ programs,” said Piette. It can be difficult to distinguish between “day ahead” and “day of” demand-response programs. “It is a complicated subject, because it has to do with the market structure and the relationship between wholesale and retail prices,” Piette said. When electric prices rise and begin moving toward peak-pricing levels, or when reliability issues arise, commercial customers can implement preplanned programs to reduce certain electric loads of their choice, perhaps by dimming or turning off lights in unused areas of buildings, reducing hot water temperatures, reducing air conditioning usage, or even shutting down certain equipment. It is important to PUBLIC POWER

Table of Contents Feed for the Digital Edition of Public Power - November/December 2007

Public Power - November/December 2007 Contents Washington Focus 10 Questions Connecting with the Customer Through Automation AMR or AMI? The High Court’s Antitrust Thunderbolts California’s Push for Demand-Response Plug-In Partners Get Plugged In Wiring Up for Double-Digit Growth For Engineers Safety Community Broadband For Governing Boards DEED Customer Service Hometown Connections Index to Advertisers Parting shot

Public Power - November/December 2007

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