REP and NOIE Demand Response Data Collection Process

REP and NOIE Demand Response Data Collection Process

REP and NOIE Demand Response Data Collection Process July 15, 2019 Agenda 1. Antitrust Admonition 2. Agenda Review 3. REP Session Review REP input received pertaining to NPRR933 REP Data Collection Schedule for 2019 Review of REP Event Survey Questions

REP Q&A 4. Break 5. NOIE Session Review NOIE input received pertaining to NPRR933 Review of NOIE Event Survey Questions and Survey Schedule NOIE Q&A 6. Adjourn NPRR 933 Objectives To make annual report of price and demand response in ERCOT

available on a more timely basis. Change report filing date to November 30 of the analysis year rather than March 31 of the following year. Would allow inclusion of analysis results in ERCOTs summer in review filings. Would make timely inputs available for EORM (Economically Optimal Reserve Margin) analysis. Would make timely inputs available for LTSA (Long Term System Assessment) analysis. Would provide the capability to analyze significant high price and demand response events occurring in all months of the year on a timely basis. 3 NPRR 933 Objectives (Continued)

To improve the accuracy of the analysis findings to address: The incidence of high price events. The high churn rate in demand response participation. To document specifics for LSE self-arranged load response reporting associated with 25.505, Reporting Requirements and the Scarcity Pricing Mechanism in the Electric Reliability Council of Texas Power Region. To improve the data quality exchange between ERCOT and REPs. 4 REP and NOIE Input to NPRR933 September 30th Snapshot Date Many are concerned that the September 30th snapshot date would

not provide adequate to get the data into ERCOT by the deadline. Some suggested moving it to either the end of August or mid September. ERCOT response: Based on the 2018 data collection process 1/4 of the REPs submitted only 1 file 1/3 of the REPs waited until November to send in their first file 2/3 of the REPs need to submit 2 or more files Corrections on average took 10 business days Moving the snapshot date back would only decrease the accuracy of our

analysis NPRR will be written to adjust this in future years if 2019 snapshot date proves to be unrealistic. 5 REP and NOIE Input to NPRR933 Reporting Threshold to Exclude smaller REPs and NOIEs REPs requested a reporting threshold for them similar to what was used in 2018 for the NOIEs ERCOT Response: ERCOT will apply the following reporting thresholds for REPs and NOIEs in 2019. ERCOT shall calculate the average summer weekday load for the preceding summer for each REP(NOIE); these averages shall be summed across all

REPs(NOIE). For purposes of these calculations, the load of affiliated REPs(NOIEs) shall be aggregated. The largest REPs(NOIEs) that account for 95% (90% for NOIEs) of that total, shall submit information to ERCOT detailing their Customers participation in Demand and/or price response programs. ERCOT shall notify the contact person for each REP(NOIE) at least 60 days prior to the beginning of the data collection process of its reporting obligation. 6 REP and NOIE Input to NPRR933 Quarterly Snapshots/Data Collection Near universal resistance to increase the number of data collections beyond the current annual data collection process citing cost. ERCOT Response:

ERCOT will withdraw our request for quarterly snapshots. Based on the issued caused by the high churn rates identified by ERCOT the annual report for price responsive Demand Response in ERCOT will be limited to summer pricing event only. Will only capture the number of participating premises for each category moving forward. 7 REP and NOIE Input to NPRR933 Allow for alternate means to provide data to ERCOT (other than through NAESB protocol) Using NAESB for the smaller LSEs can be difficult and cause excess delays that could be resolved if other forms for data submittal were allowed. ERCOT Response:

ERCOT will allow other methods to be used for data submission but those methods will need to be previously agreed to by ERCOT. 8 REP and NOIE Input to NPRR933 Request ERCOT supply list of ESIIDs that each REP owns on the snapshot date and the start date with that REP This was a request to help minimize the error rates on the initial data submission caused by REP ownership errors ERCOT Response: This will be implemented for both the 2019 reporting year and included in NPRR933 9

NOIE Data Collection Schedule 2019 August 1, 2019 ERCOT sends email notification to NOIE contact person for NOIEs that meet the reporting threshold NOIEs with no programs send email to ERCOT September 30, 2019 (Snapshot date) NOIEs can start sending participation count Excel files to ERCOT (maybe include in survey) ERCOT provides 2019 event survey links to NOIEs that meet threshold October 31, 2019 Deadline for submitting participation count Excel files to ERCOT Event survey deadline (for NOIEs with 4CP, OLC, PR, OTH)

November 29, 2019 - ERCOT completes 2019 summer assessment March 31, 2020 - 2019 Annual Report of Demand Response due Need to resolve whether the data collection should target NOIE LSEs or NOIE TDSPs 10 NOIE Survey Questions 4-CP Program Does your rate structure provide an incentive to customers to reduce load on actual 4-CP days? If yes, How many residential customers were on such rates during 2019? How many non-residential customers were on such rates during 2019? Do you provide incentives (other than via rates) to customers to reduce

load on actual 4-CP days? If yes, How many residential customers were provided such incentives during 2019? How many non-residential customers were on such rates during 2019? Do advise customers to reduce load on anticipated 4-CP days, or do you directly control customers loads on anticipated 4-CP days? If yes, How many residential customers were provided such incentives during 2019? How many non-residential customers were on such rates during 2019? 11 NOIE Survey Questions Day-Ahead/Real-Time Pricing Rate How many residential customers on a Day-Ahead pricing rate on the

September 30, 2019 snapshot date? How many non-residential customers on a Day-Ahead pricing rate on the September 30, 2019 snapshot date? How many residential customers on a Real-Time pricing rate on the September 30, 2019 snapshot date? How many non-residential customers on a Real-Time pricing rate on the September 30, 2019 snapshot date? 12 NOIE Survey Questions Block and Index Rate How many non-residential customers on a Block and Index rate based on Real-Time prices on the September 30, 2019 snapshot date? How many non-residential customers on a Block and Index rate based on Day-Ahead prices on the September 30, 2019 snapshot date?

13 NOIE Survey Questions Critical Peak Pricing (CPP) Rate How many residential customers on a Critical Peak Pricing rate on the September 30, 2019 snapshot date? How many non-residential customers on a Critical Peak Pricing rate on the September 30, 2019 snapshot date? Did your company, either directly or indirectly through a business partner, initiate any CPP events during the 2019 reporting period (Y/N) Any CPP events should be submitted in response to the ERCOT event survey. 14

NOIE Survey Questions Time of Use (TOU) Rate How many residential customers on a TOU rate on the September 30, 2019 snapshot date? How many non-residential customers on a TOU rate on the September 30, 2019 snapshot date? 15 NOIE Survey Questions Peak Rebate Program How many residential customers on a Peak Rebate Program on the September 30, 2019 snapshot date? How many non-residential customers on a Peak Rebate Program on the September 30, 2019 snapshot date? Did your company, either directly or indirectly through a business partner,

initiate any Peak Rebate events during the 2019 reporting period (Y/N) Any Peak Rebate events should be submitted in response to the ERCOT event survey. 16 NOIE Survey Questions Direct Load Control How many residential customers on Direct Load Control (initiated by your company) on the September 30, 2019 snapshot date? How many non-residential customers on Direct Load Control (initiated by your company) on the September 30, 2019 snapshot date? Did your company, either directly or indirectly through a business partner, initiate any Direct Load Control events during the 2019 reporting period (Y/N) Any Direct Load Control events should be submitted in response to the

ERCOT event survey. 17 NOIE Survey Questions Other Voluntary Demand Response Programs How many residential customers on Other Voluntary Demand Response programs on the September 30, 2019 How many non-residential customers on Other Voluntary Demand Response programs on the September 30, 2019 Any Other DR events should be submitted in response to the ERCOT event survey. 18 NOIE Q&A

19 Demand Response Data Definitions 4CP incentives to reduce load based on actual or anticipated ERCOT 4-CP events. Incentives my be in the form of a component in the customer rate structure based on load at actual 4CP intervals. Incentives may also be based on anticipated 4CP events. RTP Real Time Pricing - retail prices for all hours or intervals based on ERCOT Real-Time Settlement Point Prices for the premise Load Zone, or other real-time wholesale price indicator(s).

DAP Day Ahead Pricing - retail prices for all hours or intervals based on ERCOT Day-Ahead Settlement Point Prices for the premise Load Zone, or other day-ahead wholesale price indicator(s). 20 Demand Response Data Definitions BIR Block & Index Real Time fixed pricing for a defined volume of usage, coupled with pricing for usage exceeding the block indexed to ERCOT RealTime Settlement Point Prices for the premise Load Zone, or other real-time wholesale price indicator(s). Block prices and volumes may vary by time of day/ week.

BID Block & Index Day Ahead fixed pricing for a defined volume of usage, coupled with pricing for usage exceeding the block indexed to ERCOT DayAhead Settlement Point Prices for the premise Load Zone, or other day-ahead wholesale price indicator(s). Block prices and volumes may vary by time of day/ week. CPP Critical Peak Pricing prices that rise during critical peaks: limited duration periods of time identified by the LSE that usually correlate to high prices in the real-time wholesale market. Critical peak events may occur a limited number of times per year and typically are communicated a day in advance.

21 Demand Response Data Definitions PR Peak Rebates a retail offering in which the customer is eligible for a financial incentive paid for load reductions taken during periods of time identified by the LSE and communicated to the customer during the prior day or the event day or both. LSE has defined a method to identify whether a customer has responded and to quantify the response amount. Payment (rebate) to customer is based upon the level of the customers response. No Direct Load Control - The REP sends an email one day prior if high prices are forecasted, and sends a reminder text/tweet the morning of the following day. The REP identifies responding customers using a recent similar weather day as a baseline to estimate what the customers load would have been. If the customers actual load during the predicted intervals was lower than the baseline, the REP agrees to pay the

customer $X/kWh of reduction. Direct Load Control - REP sends email one day prior if high prices are forecasted, and sends a reminder text/tweet the morning of the following day. When high prices materialize, the REP sends a signal to the customers web-enabled thermostat to increase its set point by 3 degrees. The REP establishes a baseline for the customer to estimate what the customers load would have been. If the customers actual load during the predicted intervals was lower than the baseline, the REP agrees to pay the customer $ X/kWh of reduction. 22 Demand Response REP Data Definitions TOU Time of Use prices that vary across defined blocks of hours, with predefined prices and schedules. (As used here, does not apply to seasonal adjustments).

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