Technology Showcase of EEG
CONSTELLATION ELECTRIC RESPONSE PROGRAMS
The following provides highlights of the New Constellation programs for Demand Response, On-Peak and Peak Response Programs:
I. DEMAND RESPONSE- (An active program that requires active participation from account)
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Uses a facility’s ability to reduce energy
usage when
- 1) the grid is overly stressed.
- 2) It is more economical than producing additional power.
- Helps increase reliability of electric supply.
- Enables Renewable Power by acting as back-up to intermittent wind / Solar resources.
- Plays a significant role in national demand reduction.
- Expected to reach $30 billion by 2030.
Benefits to Participant
- Revenue Source for End-Users of electricity.
- Peak Load Management = Energy Cost Management.
- Provides advance notice of possible Grid Stress.
- Contributes of grid stability.
Capacity Program
- Participant’s committed to kW reduction values are registered with ISO-NE; OP 4 assets called to perform during sustained system peaks when additional capacity is not available.
Revenue
- Gross program $$ = ICAP + Transmission + Reserves Margin; all revenue is shared with customer:
- 1) 2011-2012 = $3.60 X 1.25 = $4.51
- 2) 2012-2013 = $2.95 X 1.08 = $3.19
- 3) 2013-2014 = $2.95 X 1.08 = $3.19
Size
- Minimum curtailable load of 200 kW: sites can be aggregated.
Hours of Obligation
- 24/7/365 with event likelihood M-F, Noon-6 PM
Duration
- Historical average = 2-3 hours
Response Time
- 30 Minutes
Frequency
- ISO guideline is up to 40 hours/year; but historical average is 1-2 events/year ( only 2 events have been called in NE since August ’06).
Metering
· Required for all assets at utility meter. 5-minute interval reads with 5-minute data transfer capability to ISO-New England.
II. ON-PEAK PROGRAM- (A ”passive” program that does not require active participation from account)
- Provides electricity end users payments based on a project’s demand reduction value, including energy efficiency, load management, and distributed generation projects.
- These types of resources are eligible to participate in Forward Capacity Market, as well as to receive transition payments once registered .
- Eligible On-Peak Hours Demand Resources Projects must have been completed after June 16, 2006.
Benefits to Participant
A Constellation customer or non customer can participate in this program. By participating in the program the participant can:
- Generate a new revenue stream that can enhance the bottom line or help finance other energy efficiency projects.
How it works
- Constellation representative works with account to identify opportunities of On-Peak resources (energy efficient projects that have reduce facility demand installed since June 16, 2006).
- Conduct comprehensive audit of site to estimate the reduced load since installation of project(s).
- Verify load reduction since June 16, 2006.
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Enroll customer into On-Peak program with
Eligible On-Peak Resources- 3 Categories
Distributed Generation:
- Cogeneration
- Back Up generation
- Renewables (e.g. Solar, Wind, Biomass, Geothermal)
Load Management:
- Energy management systems
- Load Control end-use cycling
- Load shift from peak-hours to off peak-hours
- Electricity Storage (e.g. fuel cells, fly wheels, etc.)
Energy Efficiency:
- Lighting
- HVAC equipment, chiller replacements
- Motors, VFD’s
- Refrigeration/freezing
- Other energy saving measures
Capacity Program
- On-Peak program helps grid operators plan for future reserve requirements. This ‘passive” program is designed for non-dispatchable measures that permanently reduce load across pre-defined peak seasonal hours.
Revenue
-
Gross program $$ = ICAP + Transmission +
Reserves Margin; all revenue is shared with
customer:
- 1) 2011-2012 = $3.60 X 1.25 = $4.51
- 2) 2012-2013 = $2.95 X 1.08 = $3.19
- 3) 2013-2014 = $2.95 X 1.08 = $3.19
- Typical customer split is 60% of gross
Size
- >100 kW
Reduction Period
- June/July/August = 1:00 PM- 5:00 PM; Dec./Jan. = 5:00 PM- 7:00 PM.
Timing
- 8-month summer or 4-month winter only assets OK with appropriate offset.
Metering
- In most cases, participation can occur without continuous metering using Constellation’s approved metering & verification plan.
III. PEAK RESPONSE PROGRAM-
- Each year, capacity and transmission charges are applied to your electricity bill. These charges are base on your consumption during a select number of peak hours on the electricity grid during the previous year. Constellation predicts these peak-setting hours and notifies the account on a day-ahead and day-of basis of expected peak-setting hours. If the account elects to reduce consumption and the predicted hour coincides with the grid peak, the account may be able to reduce capacity and transmission costs during the entire following year.
Benefits to Participant
- Benefits are realized in the following year, after the Regional Grid Operator, ISO and Electric Distribution Company have determined your share of the capacity and transmission charges they allocate to all consumers of electricity. The planning year in most ISOs is from June to May: therefore, successful participation in the Peak Response program during the summer may result in lower capacity and transmission charges the following June-May year.
How it Works
- Peak-Response is a voluntary program and there are no penalties for non-performance. The savings potential created by Peak-Response is correlated with your load reductions during the Peak-Response event hours provide by Constellation; the account is under no obligation to reduce consumption.
How the Customer Saves
- Constellation offers fixed price customers two payment options for participation:
- 1) Bill savings; Constellation will reduce the customer’s monthly commodity bill during the year following participation in the program.
- 2) Quarterly Check; Constellation will pay a check to the customer within 30 days after the close of each quarter during the payment year following the participation in the program.
When to Enroll
- Enrollment can be done at any time. If enrollment is in advance of the summer season, participation will be more likely to lower the electricity bill in the following year
