Fall 2004 Peak Load Management Alliance Conference

September 29, 2004

Celebration Hotel

Session 1, Dealing with Free Markets and Demand Response

Moderator: Joel Gilbert, Apogee Interactive
Joel will present an overview of the general challenges of transitioning to free markets. He will then moderate two presentations: a large regulated utility that is moving to a free market and a retailer who is facing the challenges of re-establishing and maintaining a demand response relationship as part of their retail offers.

Speakers:
Dealing with Free Markets and Demand Response, William McNeil, Exelon (ComEd)
Demand Response Programs: A Retail Marketer's Perspective, Mario Bohorquez, Constellation New Energy

Session 2, Emerging Trends in Demand Response

Moderator, Steve Carlson, RLW Analytics

Speakers:
Demand Response in Southwest Connecticut, Robert Laurita, Senior Program Administrator – Demand Response, ISO New England
Robert Chiste, CEO, Comverge
Tim Healy, CEO, EnerNoc
Raymond Tracey, Essex Power Corporation (Ontario, Canada)

This session will examine the emerging role of ISOs/IMOs as the provider of last resort with respect to providing demand response. The specific examples will be the ISO-NE recently awarded (spring of 2004) RFP to secure 300 MW of 10-minute and 30-minute demand response in the Southwest Connecticut zone (SWCT) and the large RFP for 2,500 MW of New Clean Generation and Demand Side Products, including cogeneration, distributed generation, demand response and demand side management.

Session 3, Aggregated Distributed Generation and Demand Response as Distributed Energy Resources (DER): Benefits and Costs

Moderators: Stephanie Hamilton and Thomas Dossey, Southern California Edison

Speakers:
Mark Martinez, Southern California Edison
Arup Barat, CE Corporation
Ritchie Priddy, Attainment Technologies LLC
Richard Seguin, DTE

The second phase of an effort sponsored by US DOE to demonstrate the benefit and cost of aggregated DG for demand response has begun. The California Energy Commission expects to join this effort as a joint sponsor and bring the added dimension of aggregating Demand Response programs as well.

• Demonstrate the benefits and costs of DR load shedding as a deterministic and dependable resource to the CAISO
• Demonstrate the benefits and costs of dispatching DER (DG & DR) for ancillary and other reliability services
• Deliver an open and secure information exchange reference design for dispatchable DER systems using standard object models, open communications protocols and schemes within a comprehensive security policy. This is to demonstrate how DG and DR information exchange would be implemented between different utility business ujnits, the CAISO, LSEs and regulatory bodies.

Session 4, Demand Response Program Updates: The good, the Bad and the Ugly Moderator, Greg Wikler, Global Energy Partners

Speakers:
Bob Laurita, ISO New England
Mark Martinez, Southern California Edison
Chuck Thomas, Progress Energy

The purpose of this session is to check the pulse of current demand response program efforts from those directly involved in the implementation and evaluation of various programs. The goal is to explore what has worked, what has been a challenge to implement and what might be ways in which program delivery can be improved in future offerings. Coming fresh on the heels of Summer 2004 experience, many of the panelists will share their successes and lessons learned from the field.

Luncheon Speaker – Ross Malme, chairman of PLMA
With the International Energy Agency’s approval of the Task XIII Demand Response Resources (DRR) project early in 2004, there is the promise of ground breaking work to make DR a practical reality in electricity markets around the world. But the big news, at least from a US perspective, might be occurring right here at home with the creation of the US Demand Response Coordination Committee. This project creates the structure to allow regulators, utilities, grid operators, service companies, and government agencies to collaborate on one team to bring a vision to reality.

The DRR project, approved by the IEA Programme DSM Executive Committee, is expected to involve at least 12 Programme member countries. The project is being managed out of the USA through the U.S. Department of Energy (DOE). The objective of the DRR project is to deliver the necessary methodology, business processes, infrastructure, tools and implementation plans for the rapid deployment of demand response into each of the participating country’s electricity markets. A total of 10 IEA member countries have joined thus far. In addition to the USA, these countries include Australia, Denmark, Italy, Finland, Japan, Korea, Norway, Spain, and Sweden.

This international project provides the backdrop for a most interesting development within the United States electricity markets. The United States Demand Response Coordinating Committee (DRCC) has been formed to bring together a variety of electricity market participants and influencers to focus on developing information and tools needed to allow demand response to be another option employed to address national, regional and state electricity issues and challenges. Current members of the DRCC include American Electric Power, National Grid, AREVA T&D Corporation, ISO-New England, Salt River Project, NYISO, CEC/LBL PIER Demand Response Research Center, Southern Company, PJM Interconnection, Southern California Edison, Pacific Gas & Electric, and San Diego Gas & Electric. Representatives from DOE, the Federal Energy Regulatory Commission (FERC) and the National Association of Regulatory Utility Commissioners (NARUC) are serving in an active advisory capacity to the DRCC as well as the IEA Project.

This paper will take an inside look at the latest developments in the utilization of Demand Response in the widely disparate and diverse energy markets within the US and how Task XIII and the USDRCC can work toward making DR the fast, reliable, and economical alternative to building more generation.

Session 5, Determining the Value of Demand Response as a Resource
This session will focus on the emerging issue of appropriately valuing DR and incorporating DR into long term planning. We have speakers representing a number of different perspectives that have the responsibility for assessing the value of DR and developing planning models that incorporate DR as a resource.

Moderator, Dan Violette, Summit Blue Consulting

Speakers:
Aaron Breidenbaugh, NYISO Demand Response Program Coordinator
Title: The Market Value of DR from the NYISO Perspective"

Robert Burke, ISO NE, Market Development
Title: Incorporating DR into Demand and Reliability Forecasts

Muir Davis, Southern California Edison, Resource Procurement
Title: Incorporating DR into Resource Planning -- Issues in California

Session 6, Achieving Electricity Market Value through DR Technologies Moderator: William M. Smith, Infotility

Speakers:
Jim Losleben, Cannon Technologies
David Watson, Commercial Building Systems Group, Lawrence Berkeley National Laboratory
José Antonio Vanderhorst-Silverio, In(ter)dependent Consultant on Electricity

Session Description: The electricity business environment is awash with DR technologies; the main barrier to their expanded deployment is the degree to which they can enhance value in electricity markets. Technology could greatly benefit from a "first principles" approach to defining functional specifications for DR technologies based on market value, not cost/benefit, analyses. This is especially true in deregulated markets. Some topics to be addressed are:

• How well do current DR Technologies contribute to creating (electricity) market value, and what impact does market type (regulated vs unregulated markets) have?
• What are the key technology development drivers associated with electricity market value?
• What technology advances would represent breakthroughs for achieving electricity market value?