Demand resource emergency energy
measurement and verification
DRS
7/30/14
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Existing Process – Emergency Energy settlements
• Emergency Full DR registrations receive
compensation for real time energy load reductions
when dispatched
• Real time energy load reductions based on:
– If only an emergency registration then hour before event is
CBL
– If there is economic registration at time of settlement
submission then use economic CBL
Current rules established to balance administration with load reduction accuracy
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Catalyst for issue
• High volume of PJM dispatches
– 11 days in 13/14 DY to date
– $86.5 mm
•
•
•
•
DR dispatch during non-summer months
DR dispatch during early morning hours
Multiple dispatches in same day
DR dispatch of several hours
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Key issues
1.
2.
3.
4.
Accuracy of the hour before CBL methodology
Cumbersome administrative process to use an economic
CBL which requires an EDC review.
After the fact selection of CBL to use for settlements and
process used to determine which registrations require
settlement.
Use of economic CBL from economic registration when
customer primarily participates in ancillary service market
and economic CBL is conservative (“max base load”).
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Issue1: Accuracy of Hour Before CBL
• Rational for existing market rules
– Economic CBL is more accurate approach and therefore use when
available.
• Use of 1 hour to represent multiple hours is not robust
– Over-estimate: schools toward end of the day
– Under-estimate: early morning event prior to business hours
• Conclusion from prior empirical analysis
– Administrative effort to collect historic meter data for RRMSE may
not be worth the effort for CSP
• DR resource may never be dispatched for emergency – why collect and
process 60 days of historic data when it may not be used
– Allow CSP to make decision on administrative effort after event but
before submission deadline (60 days after the event).
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Issue1: Accuracy of Hour Before CBL
• Potential solution: Use current default economic
CBL as emergency energy CBL
• Impact:
– Load reduction will be much more accurate and stable
(mornings, afternoons, winter/summer)
– More hourly data will be required to complete emergency
settlement.
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Issue2: Cumbersome administrative process to use an
economic CBL which requires an EDC review.
• Potential Solution: If we use proposed solution
for issue 1 then this may no longer be an issue
– CSPs will no longer submit economic registration
when they only want to use default economic CBL
• This will cut down workload for CSP and EDC that must
review the registrations
– CSPs submitted thousands of economic registrations from
winter event for this reason.
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Issue3: After the fact selection of CBL to use for settlements and
process used to determine which registrations require settlement.
•
Potential Solutions:
– Proposed solution for number 1 will help
– Only use CBL on economic registration if economic registration in place prior to
emergency event
•
This will eliminate cherry picking after the fact to use method that produces highest load
reduction
– Adopt the following energy settlements submission requirements:
•
Voluntary event (PJM does not measure capacity compliance) – CSP must receive confirmation
from location that they reduced load during event in order for CSP to submit the settlement
–
–
–
If load is typically down and location did not do anything then it does not qualify for settlement (Example location already down for the day)
Notification from CSP to Location does not qualify as confirmation from customer.
PJM will periodically request supporting information from CSP.
»
•
Lack of supporting information may result in referral to MMU and/or FERC OE
Mandatory event (PJM measures capacity compliance) – may only submit when capacity
compliance records are also submitted
Determination of whether or not to submit a settlement for voluntary event is NOT solely based on difference between CBL and meter load
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Issue4: Use of economic CBL from economic registration when customer
primarily participates in ancillary service market and economic CBL is
conservative (“max base load”).
• Potential Solutions:
– Use Emergency CBL if Economic CBL is Max Base
Load.
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Example1
• CSP submits Emergency registration for Location
– Same process as today (no RRMSE test)
• PJM has emergency event
• CSP submits necessary load data to calculate CBL
– At least 5 weekdays
• CBL will be calculated based on standard economic CBL
(high 4 of 5 with Symmetric Additive Adjustment)
Only change is to make default economic CBL the default emergency CBL
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Example2
• CSP submits Emergency registration and Economic registration for
Location (prior to emergency event)
• Emergency registration goes through same process as today (no
RRMSE test)
• Economic registration has standard CBL (passed RRMSE test)
• PJM has emergency event
• CSP submits necessary load data to calculate economic CBL
– At least 5 weekdays
• CBL will be calculated based on standard economic CBL (high 4 of
5 with Symmetric Additive Adjustment)
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Example3
• CSP submits Emergency registration and Economic registration for
Location (prior to emergency event)
• Emergency registration goes through same process as today (no
RRMSE test)
• Economic registration has alternative CBL (passed RRMSE test)
• PJM has emergency event
• CSP submits necessary load data to calculate standard economic
CBL
– At least 5 weekdays
• CBL will be calculated based on alternative economic CBL
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Example4
• CSP submits Emergency registration and Economic registration for
Location (prior to emergency event)
• Emergency registration goes through same process as today (no
RRMSE test)
• Economic registration has alternative CBL = MBL (max base load)
• PJM has emergency event
• CSP submits necessary load data to calculate economic CBL
• CBL will be calculated based on standard economic CBL (high 4 of
5 with Symmetric Additive Adjustment)
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