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Research Materials This Research Materials section includes papers and presentations written by GoodCents staff and those by others that we have found particularly helpful. Questions regarding copyright information for each of these resources should be directed to the author of the content. Content authors are referenced within each description. Barriers to
Price-Responsive Demand in Wholesale Electricity Markets By Eric Hirst Consulting in Electric Industry Restructuring, June 2002 Given the importance of increasing customer response to time-varying prices to improve economic efficiency, bulk-power reliability, and environmental quality, Mr. Hirst offers recommendations for regulators and the electricity industry to consider. Best Practices
Guide: Integrated Resource Planning for Electricity By The Tellus Institute, 2000 Provides the analytical framework and assessment methodologies needed to promote integrated resource planning in different economic, political, and geographic settings. Demand
Response Programs for Oregon Utilities By Lisa Schwartz, Oregon Public Utility Commission, May 2003 This report reviews demand response tools that can help utilities meet peak electricity needs, documents the results of the demand response programs Oregon utilities have offered, and assesses their effectiveness. The report then makes recommendations for future programs. Demand
Response Programs — New Considerations, Choice, and Opportunities By Dan Merilatt, V.P. Program Development, GoodCents, January 2004 This presentation describes how the ubiquity of the Internet is making new program designs possible for load management programs and bringing new choices to utility customers. The presentation also raises some program and pilot-program evaluation issues for the reader’s consideration. Demand-Side
Resources and Regional Power Markets: A Roadmap for FERC By Richard Cowart, RTO Futures: Regional Power Working Group, January 2002 Customer-controlled resources can play a crucial role in creating efficient regional power markets, lowering price volatility and generator market power, disciplining power costs, and improving reliability. Participants in the RTO Futures process have asked for a “roadmap” of actions that FERC could take to advance development of those resources. This white paper sets out that roadmap and sets the stage for discussion by RTO Futures members and their advisors. Economic
and Reliability Advantages of Energy Efficiency By Richard Sedano, Alliance to Save Energy, November 2003 In this presentation, Mr. Sedano argues for the inclusion of energy efficiency programs in the planning processes within the energy sector. He makes the argument by describing the economic and reliability advantages to the industry for doing so. Efficient
Reliability: The Critical Role of Demand-Side Resources in Power Systems
and Markets By Richard Cowart for NARUC, June 2001 This paper begins by examining the trio of problems now facing electricity markets: reliability challenges, price spikes, and market power problems. It then examines the premises and risks of an exclusive, supply-side, "wires and turbines" approach to these problems, and the potential for demand-side resources to contribute to their resolution. Exploring the Relationship
Between Demand Response and Energy Efficiency By Dan York and Martin Kushler, American Council for an Energy-Efficient Economy, March 2005 Examines experience with demand response programs in the United States to capture a comprehensive view of the state of this practice to date. A key objective of this project was to examine the relationship between energy efficiency and demand response. Long-Term
Resource Adequacy: the Role of Demand Resources By Eric Hirst Consulting in Electric Industry Restructuring, January 2003 Here Mr. Hirst argues that energy efficiency measures, programs and dynamic pricing should be treated as reductions in load rather than as explicit resources. On the other hand, dispatchable load control (e.g., direct load control and interruptible loads) should qualify as long-term resources. By Benjamin F. Hobbes, H. Bradley Rouse, and David T. Hoog, IEEE Trans. on Power Systems, August 1993 When comparing the economics of alternative portfolios of supply and demand-side resources, utility planners should consider not only costs but also effects on the benefits, or “value,” that electricity consumers receive. This paper presents a method for including such effects in comprehensive resource planning models. New
Principles for Demand Response Planning By EPRI, Palo Alto, CA, 2001, EP-P6035/C3047 This report presents new principles for designing demand response options. It provides a design template to guide the development of long-term, self-policing, sustainable demand response options. Peak Load
Management or Demand Response Programs: a Policy Review By the Association of Energy Services Professionals, August 2001 The purpose of this policy paper is to review key issues facing electric utilities regarding peak load management or, as they are increasingly being called, demand response programs. The issues are addressed in the context of the energy marketplace in the United States and from the perspective of the utility. The paper explores the utility objectives for peak load management and the complicating affect of industry restructuring. Policy and
Technical Issues Associated with ISO Demand Response Programs Prepared for the National Association of Regulatory Utility Commissioners by David Kathan, Ph.D., ICF Consulting, July 2002 This paper explores the technical and policy issues associated with ISO demand response programs, with particular attention to the interaction between these ISO programs and state regulation. One of the key concerns is whether existing load response capability incorporated in electric utility load management programs could be at risk as the focus of demand response shifts to regional wholesale electric market entities. Practical
Integrated Resources Planning By Dan Merilatt, V.P. Program Development, GoodCents, August 2004 In a practical and introductory way, this position paper outlines how to conduct utility demand-side management (DSM) and integrated resource planning (IRP), and reviews their very real benefits. Price-Responsive Demand as Reliability Resources By Eric Hirst Consulting in Electric Industry Restructuring, April 2002 The paper shows that the traditional belief that retail customers could not and would not want to manage their loads in response to economic incentives need not and should not be the case. Expanding reliability functions and markets to include retail loads will improve bulk-power reliability or lower the costs to maintain reliability at current levels. New computing, communications, and control technologies will expand the scope and reduce the cost of using retail loads to provide reliability services. Primer on
Pricing for Demand Response By Dan Merilatt, V.P. Program Development, GoodCents, March 2002 This paper connects the development of efficient pricing and marginal cost-based rate design to the historical development of metering technology. Quantifying Customer
Response to Dynamic Pricing By Ahmad Faruqui and Stephen George, Charles River Associates, Electricity Journal, May 2005 California’s Statewide Pricing Pilot experiment showed that residential and small to medium commercial and industrial customers conclusively reduced peak-period energy use in response to time-varying prices. Responsiveness varied with rate type, climate zone, season, air conditioning ownership, and other customer characteristics. Tools and Methods for
Integrated Resource Planning By Joel E. Swisher, Gilberto de Martino Jannuzzi, Roberto E. Redlinger. UNEP Collaborating Centre on Energy and Environment, November 1997 Assembles all the necessary information for graduate students and utility managers to learn the techniques for doing their own calculations and analyzing the cost-effectiveness of energy conservation measures against supply-side options. Working Group 2 Demand Response Program Evaluation – Program Year
2004. Final Report By Quantum Consulting and Summit Blue Consulting, December 2004 The goal of this report is to present a summary of findings and results from the evaluation of Working Group 2 (WG2) demand response programs, specifically, for the Critical Peak Pricing (CPP) tariff, the Demand Bidding Program (DBP), the California investor-owned utilities interruptible programs, and the California Power Authority’s Demand Reserves Partnership (DRP).
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