Demand Response Data

Task Force

Preliminary Report

DRAFT – January March 3125, 2009

This page left intentionally blank

Table of Contents

NERC’s Mission

Executive Summary

Demand Response Data Collection Requirements & Issues

Conclusions & Recommendations

Demand Response Data Task Force Scope

Objectives

Approach

Approved Milestones

1.0 Introduction

2.0 Issues & Challenges

2.1Confidentiallity of Data

2.2NERC’s Authority to Require DADS Data

2.3Gaps in the NERC Functional Model

2.4Double Counting Demand Resources

2.5Intended Uses and Limitations of Data and Metrics

3.0 Business Requirements

3.1 DADS Elements

3.2 Data Collection Forms

4.0 DADS Statistics, Metrics and Data Analysis

4.1Useful Statistics

4.2Metrics

5.0 Data Collection and Reporting Process

5.1Required Reporting Entities

5.2Overall Process

6.0 Next Steps

Conclusions & Recommendations

Glossary of Terms Used In This Report

Demand Response Data Task Force Roster

1 Demand Response Data Task Force Preliminary Report

NERC’s Mission

The North American Electric Reliability Corporation’s (NERC) mission is to ensure the reliability of the bulk power system in North America. To achieve this objective, NERC develops and enforces reliability standards; monitors the bulk power system; assesses and reports on future transmission and generation adequacy; and offers education and certification programs to industry personnel. NERC is a non-profit, self-regulatory organization that relies on the diverse and collective expertise of industry participants that comprise its various committees and sub-groups. It is subject to oversight by governmental authorities in Canada and the United States (U.S.).[1]

NERC assesses and reports on the reliability and adequacy of the North American bulk power system according to eight regional areas as shown on the map below[2]. The users, owners, and operators of the bulk power system within these areas account for virtually all the electricity supplied in the U.S., Canada, and a portion of Baja California Norte, Mexico.

ERCOT
Electric Reliability Council of Texas / RFC
ReliabilityFirst Corporation
FRCC
Florida Reliability Coordinating Council / SERC
SERC Reliability Corporation
MRO
Midwest Reliability Organization / SPP
Southwest Power Pool, Incorporated
NPCC
Northeast Power Coordinating Council, Inc. / WECC
Western Electricity Coordinating Council

Note:The highlighted area between SPP and SERC denotes overlapping regional boundaries

1 Demand Response Data Task Force Preliminary Report

Introduction

Executive Summary

Demand response is anprogramsare important ingredients in thean overall portfolio of resources required to meet the increasing demands for electricity in North America. In order for NERC to understand the benefits of demand response and its impact on reliability, we must measure how well it performs and develop industry confidence.

The Demand Response Data Task Force (DRDTF) wasformed following a recommendation from the Demand-Side Management Task Force (DSMTF), with the objective of developing a systematic approach for collecting and disseminating demand response data. In its final report, Data Collection for Demand-Side Management for Quantifying its Influence on Reliability[3], the DSMTF concluded that a data collection system should be developed in order to collect historic demand response data. This task force was charged with developing this system, referred to as the Demand Response Availability Data System (DADS). Furthermore, the task force has established metrics and useful statistics to quantify and support data analysis.

The goal of the DADS is to collect demand response event information to measure theongoing influence of demand response on reliability and provide a basis for projecting bothdispatchable and non-dispatchable (price-driven) demand response towards planning (demandreduction) and operational reliability. This demand response data collection proposal provides a basis for counting and validating demand response resources toward meeting operational and resourceadequacy requirements. In addition, DADS will provide the mechanism neededto fulfill the NERC MOD Standard 16-1.1, Requirement R1(c)[4]. DADS will provide a framework for entities to report data on a consistent and timely basis.

The task force members came frommany of the NERC regions, with representation from both wholesale and retail electricity organizations. We researched industry practices and debated the many facets of our goals, carefully weighing the burden of collecting each “piece” of information with the benefit and usefulness of that information. In addition, this task force was coordinated with the NAESB DSM-EE Subcommittee and their effort in developing standards forthat support the measurement and verificationcharacteristics of demand response programs.. We recognize that the initial structure proposed in this report will be enhanced and improved over time as the industry gains experience. Some information that we have specified may not turn out to be as useful as we expected, while other information, not felt to be important at this stage, may be supplemented as DADS evolves. We did not lose sight of the fact that collecting data is done so for the overriding purpose of providing the industry with the information to support decisions with respect to improving reliability and performance.

Quarterly Reporting

We The DRDTF areis proposing to implement DADS in two phasesa multi-phase approach. Phase I supports non-mandatory data submittals through a beta-system data collection system. The pilot program, launching in 2010, will be the testing period for data that is voluntarily submitted.

• Phase I

• Phase II

Therefore, the majority of this report describes Phase I, although certain aspects of DADS (such as confidentiality and the data reporting process) are not expected to change when Phase II is added.

Phase / Reporting Parties / Reporting Requirement / Demand Response Product(s) / Reporting Frequency
I / BA, LSE, DP, PSE / Voluntary / Dispatchable, Controllable / Quarterly
II / BA, LSE, DP, PSE / Mandatory / Dispatchable, Controllable / Quarterly
III / BA, LSE, DP, PSE / Voluntary / Dispatchable, Controllable and Non-Dispatchable / Quarterly
IV / BA, LSE, DP, PSE / Mandatory / Dispatchable, Controllable and Non-Dispatchable / Quarterly

[More Needed in this Section]

1 Demand Response Data Task Force Preliminary Report

Introduction

Demand Response Data Collection Requirements & Issues

Conclusions & Recommendations

1 Demand Response Data Task Force Preliminary Report

Introduction

Demand Response Data Task Force Scope

Objectives

This task force was initiated by the NERC Planning Committee (PC) in December of 2007 as a recommendation from the Demand-Side Management task force. The DRDTF reports directly to the Resource Issues Subcommittee. On the premise that demand response availability data is needed to help addresswill helpand quantify system resource performance and reliability, this task force was commissioned to:

Identify how the Demand Response (DR) resource data will be used by NERC
In respect to NERC’s operational coordinative needs, develop the data to be collected and reported.

2.Agree upon a set of DR definitions.

Modify NERC glossary where applicable.

Coordinate with NAESB in developing Demand Response Measurement & Verification Standards and reflect results in this group’s work product
Review current NERC MOD Standards for Demand demand Response response reporting applicability.
Resolve duplicative reporting requirements.
Determine which standard requirements a proposed data system will satisfy.
Agree upon the metrics NERC will calculate to satisfy its objectives.
Agree upon the data to support the metrics.
Design a data collection system.
Begin data collection .

Approach

To accomplish objectives set forth, this task force has takentook the following approach:

Cataloged the type of demand response data currently being recommended and/or collected by NERC members and other industry groups as well as the uses of the data.
Recommended a common data reporting framework or protocol.
Provided NERC with a mechanism for reporting historic data.
Developed common availability statistics and metrics that could be computed from the data.
Recommended guidelines for the sharing and release of the data.

Approved Milestones

Pending approval from the PC, the DRDTF will coordinate the following activities:

Prepare a Section 1600 data authorization Rrequest for Information or Data:

Coordinate with NERC council counsel to file proposed request for data with FERC
Filing to FERC should include information specified in paragraph 1602.2.1 of Rules of Procedure of the North American Electric Reliability Corporation[5].
Filing to FERC must be submitted at least 21 days prior to announcing request for public comment.
Post data request for a 45-day public comment period.

After Section 1600 comments are received, develop a final DRDTF report. The final report needs to include a section that describes the comments received and the response to them. Changes from the initial data request as a result of the comments need to be clearly identified. Final report approvals are required by:

After PC approval of final DRDTF report, NERC Board of Trustees BOT approval is required.
After BOT approval, if software is needed to implement a proposed system, develop a Request for Proposal (RFP) for software needed to implement the data system in . Ccoordinatione with Information Technology Department. NERC Ggeneral Council counsel approval is required prior to issuing the RFP.

[Highlighted Section above is contingent on Data Coordination Subcommittee Recommendation for DRDTF to implement reporting requirements]

1 Demand Response Data Task Force Preliminary Report

Introduction

1.0 Introduction

Demand-response is an programsare important ingredients in thean overall portfolio ofresources required to meet the increasing demands for electricity in North America. In order forNERC to understand the benefits of demand response and its impact on reliability, we mustmeasure how well it performs and develop industry confidence.

The electric industry is increasingly deploying demand response programs as a way to maintain bulk power system reliability. Different than conventional supply-side technologies, as demand response becomes an important tool for planners and operators as a resource, measuring their performance becomes important to support reliability assessments. As part of the Seasonal and Long-Term Reliability Assessment dData Collectioncollection, NERC currently collects demand response peak projections from the Regional Entities[6]. The data is aggregated from the members within each region and is the expected reduction at time of peak. This data provides NERC with limited visibility as only peak-reducing dispatchable, controllable, capacity demand response data is submitted. (Shown shown in Figure 1) For NERC to provide a comprehensive reliability assessment on demand response resources, more data and metrics will be needed. The impact and performance of price-responsive demand response must be understood and accounted for.

Similar Similar to the characteristics of renewable resources, demand response resources are variable, susceptible to ramping, and are not always controllable by the system operator. An expectation of non-performance is needed to accurately plan and operate a system that incorporates large amounts of demand response resources.

Demand response impacts can vary day-to day according to the specific conditions of weather, customer load variability, etc…

As the number ofparticipation in demand response programs grows in North America, the amount of data associated with the demand response programs, products, and services will grow proportionately. It will also be increasingly important to full characterize these programs including their load impact, day-to-day variability, and sustainability with frequent use. In addition, as demand response resources ultimately displace traditional supply peaking resources, the frequency that demand response resources will potentiallyincreasingly be useddeployed more frequently, further contributing to the amount of event data that NERC must collect, manage and analyze. Therefore, NERC is proposing to collect demand response event and market participation data towards development of performance metrics, as outlinedrecommended by the Demand-Side Management Task Force (DSMTF) in their report Data Collection for Demand-Side Management for Quantifying its Influence on Reliability[7]. These resource performance metrics will build realism into demand impact projections, enabling load forecasters with concrete data, and increase confidence of their availability and reliability for resource planners..

The NERC Demand Response Availability Data System (DADS) will enable NERC to receive, manage, assess and disseminate the various types of data on demand response products and services grams being implementedadministered by retail and wholesale entities throughout North America. The goal of the DADS is to collect demand response event information to measure theongoing influence of demand response on reliability and provide a basis for projecting the impacts of bothdispatchable and non-dispatchable (price-driven) demand response towards on planning (demandreduction) and operational reliability. This demand response data collection proposal provides a basis for counting and validating demand response resources toward as part of meeting operational and resourceadequacy requirements. In order for DADS to be a valuable tool for the industry, the task force agreed that the proposed data and metrics should be:

Comprehensive
Comparable
Verifiable
Attainable
SimpleEasy to Understand
Useful and Relevant to its users, including
Various functional entities within the electric power industry
Demand response providers
Load Forecasters

Resource Planners
NERC (a.k.a. the Electric Reliability Organization)
Government and Regulatory Organizations (i.e. FERC, EIA)

The data collection forms are designed to collect demand response program information, registered or committed quantity of demand response, demand response event data for controlled load programs, and market participation demand response activity. DADS data collection will focus on demand response programs that impact reliability. DADS will not collect data on all demand side programs which have load impacts. Specifically, DADS will not, at this time, collect data on pricing or energy efficiency programs or permanent load reductions. (e.g., installation of load reducing equipment, implementation of load reducing operational procedures). Furthermore, DADS data collection will not collect any financial data. (e.g., such as capacity payments, non-performance penalties, or dynamic (interval) pricing data).

An optimal data collection design structure should balance tradeoffs in the level of data detail, the level of effort required to collect the data, and the value of the data.

To achieve an optimal design structure, a balance in the level of data detail, the level of effort required to collect the data, and the usefulness of the resulting metrics had to be maintained.

Most of the burden of data collections and management will fall on NERC and the reporting entities. The primary responsibility of the reporting entities would be to comply with reporting requirements and intervals, provide updated data as it becomes available, and maintain transparency, traceability, and audit trails. The primary responsibility of NERC is to manage the DADS system, assess the availability and performance of these resources, and report the findings.

DADS data collection does not include load reduction due to energy efficiency programs or permanent load reductions.

NERC will not collect financial data, including, but not limited to, capacity payments, non-performance penalties, or dynamic (interval) pricing.

DADS is intended to serve as a valuable tool, not only for reliability and resource adequacy analysis, but for research outside of NERC. Appropriate access will be granted upon approval from NERC staff.

1 Demand Response Data Task Force Preliminary Report

Introduction

2.0 Issues & Challenges

2.1Confidentiallity of Data

Data submitted by a Reporting Parties that is classified as business confidential, , shall be managed in accordance withNERC’s treatment of confidential information, as described in Section 1500 of theRules of Procedure[8]. Confidential data will not be accessible by others except the Reporting Party that submitted that data and NERC staff, who will be responsible for its analysisble to be accessed by users; however, aggregate data may be used for metrics. .

Program data may be classified as:

Confidential Business and Market Information[9]

Non-Confidential

2.2NERC’s Authority to Require DADS Data

NERC’s authority to issue a mandatory data request in the U.S. is contained in FERC’s rules. Volume 18 C.F.R. Section 39.2(d) states: “Each user, owner or operator of the Bulk-Power System within the United States (other than Alaska and Hawaii) shall provide the Commission, the Electric Reliability Organization and the applicable Regional Entity such information as is necessary to implement section 215 of the Federal Power Act as determined by the Commission and set out in the Rules of the Electric Reliability Organization and each applicable Regional Entity.” A data request of U.S. entities can be made based upon NERC’s authority in this FERC rule. NERC has filed a Data Authorization RuleSection 1600: Request for Information or Data (DAR) approved by FERC included in its Rules of Procedure. This rule allows for a 45-day open comment period for data requests such as DADS, which then must be approved by the Board of Trustees. An appendix of this report will be added to this report which will contain a summary of the comments received as well as our responses. Since TADS DADS is a data request pursuant to Section 39.2(d) and not a reliability standard, NERC will not be issuing any fines for non-compliance. However, a non-compliant U.S. Transmission OwnerReporting Party may be sanctioned by FERC since failure to provide required data a violation of FERC’s rules.

In addition to a the provisions in the NERC Rules of Procedure to request information or data, NERC Reliability Standards mandate the reporting of actual demand-side management resources.