PUC of Texas
EEIP Meeting
11.27.2012
Residential A/C Load Control Program
©2012 Comverge – Confidential and Proprietary
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Comverge Introduction
• Operating in Texas since 2001
– Austin Energy – Power Saver Free Thermostat
Program
– TXU Energy - iThermostat program
– Utility C&I Standard Offer DR Programs
– ERCOT C&I ERS Program (Formerly EILS)
• Equipment provider for other Texas energy
service providers
• Active market participant at ERCOT
©2012 Comverge – Confidential and Proprietary
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Leading Provider of Intelligent Energy
Management/Demand Response Solutions
Highlights
Wide Range of Services
 World-leading provider of Intelligent Energy Management
 Program Design, Planning and Execution
(IEM)/Demand Response (DR) solutions
 Marketing Strategy & Execution
 Headquartered in Atlanta, GA
 Installation
 ~520 employees
 Measurement and Verification
 Revenues: 2011 - $136.4 million 2010 - $119.4 million
 Energy Audit
 Q1 2012: Revenue growth of 75% compared to 2011
 Customer Care
 Acquired by H.I.G. Capital – 5/2012
Revenues From All Customer Classes (2011)
Client Base Geography
Grid Operators
PPS CHART #3
USE RIDER A
(next page)
C&I
43%
Electric Utilities
© 2012 Comverge, Inc.
C&I
43%
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Electric Utilities
Residential
57%
VPC Structure Description
• VPC™ – Virtual Peaking Capacity
– Pay-for-Performance
• Payment is based on delivered Peak Load Reduction
• Paid through a $/kW-yr charge
• M&V Methodology is specified by contract
– Fully Outsourced
– Comverge takes the risk of performance
• Can be offered through REP’s, Utilities or Direct from
Comverge or other third party
• Can be tailored to fit the market need
©2012 Comverge – Confidential and Proprietary
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Demand Response is our Business
Marketing Recruitment:
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275,000 Recruitments in 2011
1 Millionth recruitment in 2012
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Acquire
Acquire
Prospect
Prospect
Analysis
&
Analysis &
Segmentation
Segmentation
Optimize
Parameter
Adjustment
& Modeling
Device Optimization
Devices controlled over 3
million times in 2011
Events from 6 hours to 9 min
Analysis
Statistical
Strategy
Analysis
•
10,000 M&V points & 20,000
HAN devices read in real time,
24x7
Control
Operate MWs
Manage
Constraints
Control Operations
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•
© 2012 Comverge, Inc. Confidential and proprietary.
•
700,000 transactions in 2011
Manage
Field Install
Customer Care
Measure
Performance
Measures
& Verification
Energy Sciences
Call Center:
211 Control Events in 2011
16,000 MWhs in 2011
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Field Force
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•
300,000 Installed in 2011
22,000 per month peak
Offer Summary
• 400 MW Residential Air Conditioning Cycling Pilot
• 2 pilot locales each 200 MW
• Pay for Performance – Comverge guarantees MW
– Direct Air Conditioning Load Control – Smart Switches
• Communications over Paging & Zigbee using AMI
– Residential & Small Commercial market
– Creates 80-90 jobs in Texas
– Representative Implementation Costs
• $145/kW-yr Includes $50/yr Incentive per device & $50/customer sign on
bonus
– Pilot roll out over 4 years, Device life > 10 years
©2012 Comverge – Confidential and Proprietary
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Switches Allow for Flexible Control - Load Guard
 Load Guard is an optional “set and forget” service that utilizes the already deployed
load management switch population to allow participants (via a website) to make
their own cycling option decisions for dynamic pricing events
 Load guard enables customers to take advantage of dynamic pricing events
automatically by pre-selecting a cycling level that runs during a high price event
 Provides added value at little incremental cost to utilities
⃰ Load Guard is a Comverge program implemented for Com Edison for their real time pricing program
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Real Time Pricing – Innovative Set & Forget Solution
©2012 Comverge – Confidential and Proprietary
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Measurement and Verification
(M&V) Plan
• Basic Assumption – Use Customer’s or Aggregations of
Customer’s individual AMI Meter data
• Two Options for Measurement and Verification (M&V)
– Controlled/Comparison Methodology
•
•
Performance calculated by statistical sample of Customers’ metered load prior to dispatch instruction
compared to metered load at the reduction deadline
This is a very common methodology for residential air conditioning load control
– Baseline Methodology
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•
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A baseline is defined as an estimated or predicted load in the absence of a DR deployment.
Baselines are appropriate for loads or aggregations of loads that are predictable in nature
Can be modeled based on their historical usage patterns
This is an appropriate methodology for Weather Sensitive residential air conditioning load.
Both Methodologies are recognized as applicable for DR programs by the International
Performance Measurement and Verification Protocol (IPMVP) Option
©2012 Comverge – Confidential and Proprietary
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Comverge M&V Experience
• Comverge Energy Sciences team:
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Responsible for M&V measurements & evaluation of many residential and small
commercial DR programs since 2006
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10 engineers and mathematicians
Oversee & shepherd the process
M&V processes have been evaluated and approved by numerous utilities and by PJM
Seven seasons of meter deployment and data acquisition for thirteen programs
Energy Sciences team creates a detail M&V plan annually
Per the plan, meters are deployed, baseline and event measurements are obtained during
the summer season and a final report is prepared in the fall
Comverge has used many different approaches for measurement
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Direct metering of air conditioners and hot water heaters, including monitoring run times as
determined by the thermostats and service meter measurements
For the proposed program, Comverge envisions using AMI service meters to calculate
demand reduction
Estimates can be prepared for each event using a prior day(s) baseline based approach
The estimates from each premise would be aggregated to provide a system wide
determination of the demand response
©2012 Comverge – Confidential and Proprietary
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Summary of Results
•
•
Residential programs produce reliable Demand Reduction
Programs across the country producing perennial results
– Emergency Curtailment, Ancillary Svc, Operating Reserves
– Attacks the primary Contributor to annual Peak System Load
•
Job Creation – as many as 85 Jobs if fully deployed (400 MW)
– Potential for more during deployment phase (3-5 years)
– Scales down by 30-40% after deployment phases
•
Assumed Penetration Rates
– 6.7% Proposed Penetration
– 432,350 Proposed Enrollments
– 18 Months expected to reach the proposed penetration level
•
Assumes Two largest TDSP service territories as target markets
©2012 Comverge – Confidential and Proprietary
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Demonstrated Performance
Utility 1
14% Penetration
119,077 Enrollments
26 Months
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Demonstrated Performance
Utility 1
14% Penetration
119,077 Enrollments
26 Months
Utility 2
13
9.4% Penetration
56,604 Enrollments
16 Months
Demonstrated Performance
Utility 1
14% Penetration
119,077 Enrollments
26 Months
Utility 2
9.4% Penetration
56,604 Enrollments
16 Months
6.7% Proposed Penetration
432,350 Proposed Enrollments
18 Months
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Applicability
•
Demand Response is an integral component of several existing EE
Program offerings
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Residential programs will be a valuable addition
Program Structure fits well in the Texas Market
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Oncor, CenterPoint, AEP – Load Management Standard Offer Program for Commercial &
Industrial Customers
TNMP – Commercial Load Management Pilot Program
Other Texas Utilities – Various Load Management Standard Offer Programs
Ability to transition program to ERCOT when appropriate
Comverge design reduces risk for the customer through experience and
process
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Example - in VPC, Comverge assumes risk for program dropouts and customer opt outs
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Allowances for these risks are designed into the program plan
Allow customers to opt out of 2 control events per season
Program is Voluntary – If customer wants to leave the program – accommodate the request
Since contract is MW based we manage churn through the life of the program
©2012 Comverge – Confidential and Proprietary
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Market
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Demand Response is a critical element in Texas Resource Adequacy
Discussion
Residential Price Responsive Demand is a desired end-state
ERCOT making strides to facilitate products for loads to participate in
Market
– 30 min Emergency Response Service
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Pilot in Second Season
Load Aggregation Participation
– Weather Sensitive Loads Product category
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Protocol changes currently in development
– Aggregated Load Resources
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Draft White Paper
Residential DR – Deployment through multiple channels
– Third Party DR Providers
– Retail Electric Providers
– Channel Partners (HVAC, Security, Cable)
©2012 Comverge – Confidential and Proprietary
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Conclusions
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Demand Response is our business
– The estimates are achievable
– The Resource is reliable
– M & V is proven industry accepted practice
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Pay for performance structure ensures value
400 MW pilot offer
– Large enough to provide system value
– Small enough to fit the budget over roll-out period
•
Next steps:
– Meet with PUCT Staff and/of Commissioners to Answer additional
questions
– Road show to gauge interest from TDSP’s and Utilities
– Advance the program concept to filing phase with Sponsor Utility
©2012 Comverge – Confidential and Proprietary
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