RE: [energyinterop] DR Program Terms

["Phil Davis" <pddcoo@gmail.com>]

David,

 

That question has a number of answers that depend primarily on the geography of the program as well as its sponsor.  Typically, there are two contracts involved.  One is the primary contract between a large demand side resource (typically an aggregator or a very large unified load).  Around this there are very formal terms, often letters of credit or bonds, and very specific performance penalties and incentives.  However, some of these programs are voluntary and lack come of those provisions.

 

The other side is between an aggregator (who can be a utility or not) and the energy end user.  The nature of those contracts is a function of the risk tolerance of the aggregator.  EnerNOC contracts usually are very simple and contain no customer penalties, where other contracts often mirror the same penalties the aggregator faces.

 

This topic easily can become a book, and the rules are changing as we speak, but happy to discuss further.

 

Phil Davis

________________________________________________________________________________________________
Phil Davis | Senior Manager | Schneider Electric Demand Response Resource Center | 3103 Medlock Bridge Road, Ste 100 | Norcross, GA  30071 | (: 404.567.6090 | 7: 678.672.2433 | *: phil.davis@us.schneider-electric.com | : Website:  http://www.schneider-electric.com

 

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From: Wilson, David C (St. Paul) [mailto:DavidCWilson@trane.com]
Sent: Wednesday, March 10, 2010 2:02 PM
To: energyinterop@lists.oasis-open.org
Subject: [energyinterop] DR Program Terms

Can someone share some information on how current DR programs are structured contractually?

 

For example, if I am a utility customer and I enroll in a “Base Interruptible Program”, how is that enrollment formalized?  Do I sign a program enrollment form, contract addendum, separate contract?

 

Do the terms of these programs typically indicate that the utility is not actually under any legal obligation to pay for load reduction?

 

The thought occurred to me because I just learned how banks are very specific that checking account overdraft protection is typically a “non contractual courtesy” (see Google search) because otherwise it would be regulated.  It made me wonder if utilities/ISO’s few commercial building DR in a similar way.

 

http://www.google.com/search?q=non+contractual+courtesy

 

Thanks!

Dave

 

David Wilson

Enterprise Solutions Portfolio Manager

Trane Commercial Systems

Ingersoll Rand

 

Office: +1.651.407.4168

Mobile: +1.612.741.2759

Email: davidcwilson@trane.com

www.trane.com

 

 

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