Whether dynamic tariffs are associated with a DR program or are
offered outside of a DR program, would we not want to use the same price
signals to make it easy for everyone? Also would the price signal not be the
whether the price signal is market based or dispatch based?
From: Girish Ghatikar [mailto:GGhatikar@lbl.gov]
Sent: Monday, September 14, 2009 7:03 PM
Subject: [energyinterop] DR Program
As per 09/09 meeting, I am attaching the DR program definition description as a
deliverable from Mary Ann and me. Please check the attached document (also
copied below) and send your comments. Otherwise, looking forward to talking
further on this during next meeting on 09/16.
DR programs offered by a utility and/or ISO are designed for the customer
to reduce load for the purposes of electric grid reliability and/or lowered
energy costs. DR programs can be part of a contractual agreement or voluntary
program and may be applied to certain types of tariffs or other economic
payments. The DR programs across the United States vary based on the types and
end-use customers and are broadly classified as reliability-based (includes
emergency) response and price response programs.
DR programs may be included in both or retail or wholesale markets. DR
programs have time scales that may include day-ahead, day-of, or very fast
transaction requirements. DR programs may include prices, bids, demand
reduction levels, and other information about the demand response requirements.
Dynamic tariffs associated with DR programs can be an integral part of a DR
program in which case the tariff can be interpreted as a DR program. For
dynamic-pricing DR programs, including critical or variable peak, or real-time
pricing (RTP), the DR resources might be an integral part of a utility and/or
ISOs DR program under a contractual agreement (e.g., explicitly dispatch DR
events to the customer) or voluntary program (e.g., publish prices for
market-based response for a customer to save costs or societal value)
participation. These dynamic-pricing programs, under market-based response,
could be used by the utilities and/or ISOs to eliminate the need for explicit
dispatch of DR programs for customer’s resource availability and to get a
certain reliable response. The type of standards, information exchange, and
technology used within any DR programs for automation depends on this high
level of classification of utilities’ and/or ISOs explicit dispatch or
market-based interactions and the facility’s availability to respond.
Some DR programs allow customers to participate in more than one program. If
more than one program is called during the same time the program rules need to
be clear which program takes priority.
Lawrence Berkeley National Laboratory
1 Cyclotron Road, MS: 90-4000, Berkeley, CA 94720
GGhatikar@lbl.gov | +1 510.486.6768 |
+1 510.486.6996 [fax]
This email is intended for the addressee only and may contain confidential
information and should not be copied without permission. If you are not the
intended recipient, please contact the sender as soon as possible and delete
the email from computer[s].