Flathead Electric Cooperative Demand Response Project Successes and Lessons September 28, 2016

Partnering For Our Future In 2010 Flathead Electric Cooperative (FEC) joined with Bonneville Power Administration in five year long Smart Grid Demonstration Project to investigate the cost effectiveness of smart grid technology. Main reasons for FEC involvement: 50% federal match of FEC Smart Grid Investment Reduce future power supply costs to FEC Better inform our members on how to reduce their future energy costs Three technologies were tested

Option #1 Option #2 Option #3 Provide members with an In-Home Display (IHD) IHD is configured to respond to over-power line communications broadcast from the integrated AMI system for human-in-the loop demand response. Option #2 Water Heater Demand Response Unit (DRU) Traditional DR technology over power line allows members to have their hot water heater operated by the co-op in response to peak demands. Option #3 Implement Home Energy Network with Smart Appliances for advanced control with GE Nucleus / Profile Brillion enabled Home Energy Network and load control-enabled dishwasher load control-enabled clothes washer load control-enabled clothes dryer one Zigbee Water Heater Switch one Energy Display

Successes Strong member engagement approach Water heater program caused little member inconvenience. Demand reduction was measurable in hourly data. Deployed smart appliances in Libby, Montana, one of the few actual deployments in the entire country. Smart Appliance group did produce the most demand reduction under some events, but also cost the most.

What we learned Of the technologies tested the Electric Water Heater Load Control units had the least amount of intrusion and were the most reliable technology Benefits: One time installation cost. Little to no maintenance or failure rates - no failures during the course of the three year study. Once installed the water heater unit can be used for multiple members/renters/owners with minimal updating in Flatheads customer information system. Can be made available to residential and small business locations. No member action required. No complaints to date about a lack of hot water.

How does the program work? Plan to install 5000 water heater units over the next five years. Currently 1200+ for installations Flathead Electric will install an Electric Water Heater Load Control Unit for the water heater in the member’s residential or small business location. Using over power technology and software to predict and dispatch the water heaters based on historical data, weather, etc., the Water Heater Load Control Unit will curtail power to the water heater during Peak Time Periods to reduce demands on the system for up to three hours. The participating member receives a $4 monthly participation credit for each month of active participation.

How are members eligible? Members can be eligible to participate if: They are a Flathead residential or small business member. They have an electric water heater The location is the participating members’ primary residence or business location. Renters can participate but must have written consent of the landlord or location owner.

Lessons Learned Avoid lightning rod terms like RF and Smart Grid. Beta products require careful procurement. Critical peak rebate too high for actual ability to hit peak and prevent gaming, further refinement needed on critical peak pricing metrics. BPA’s system needs didn’t coincide with local utility needs. No “out of the box” options for software for deployment available

Financial Overview On the cost-benefit of each test groups: The Smart Appliance group at times produced the most benefit of 0.0 to 2.34 kW/per unit peak reduction, but was also the most costly, with additive home energy network aspects costing $2500+ over regular appliances. The In Home Display, human in the loop, group did not demonstrate appreciable load response, but could have been the least costly, $125, to implement had the technology matured. The over power line water heater solution produced reliable savings across most events producing from an average of 0.58 in the summer and .91 kW/per unit peak reduction in the winter with an average of .75 kW.  Simple payback as quickly as 3 to 5 years with an average install cost of $413, but highly dependent upon hitting the monthly peak.

Teri Rayome-Kelly, Demand Response Coordinator Office (406)751-1834 t Teri Rayome-Kelly, Demand Response Coordinator Office (406)751-1834 t.rayome-kelly@flathead.coop