Northwest Demand Response Symposium Smart Grid Northwest Pacific Tower, Seattle Washington Northwest Demand Response Symposium Jason R. Salmi Klotz Climate Change Lead September 28, 2016

Energy Efficiency and Demand Response Nexus Coordination of Program Offering and Delivery Oregon PUC staff are currently interested in exploring coordinated offerings and delivery of EE/DR programs. Example: ETO/ PGE Smart Thermostat program. PGE worked with ETO and a smart thermostat provider to identify opportunities to engage smart thermostat early adopters who met certain criteria for possible inclusion in PGE smart thermostat DR program. PUC Staff recognizes the value of this program offering design and will look to encourage additional coordinated efforts PUC Staff anticipates having a more robust discussion about market roles for the utilities, NEEA, ETO, other stakeholders

Building the DR Resource in the NW Our utilities are facing a dual peak summer/winter – PGE 2017 Draft IRP, Nature Climate “Impact of climate change on electric power supply in the Western United States”, Bartos & Chester. NEST data on 8000 Oregon homes HVAC utilization in Oregon (600 hours of AC/ 600 hours of heating) IoT and appliance plays, HAN and NEEA HPWP/DHP $30 direct install – PGE and ETO coordination HAN? Is this the home resource aggregation strategy, or do we need to develop a NW DR rollout and program strategy (NWPCC DRAC) (CA PG&E DRAM) Is the IRP enough? NEEA and enabling DR ready appliances

DR Program Proposal Requirements Includes Coordination Currently OPUC has been reviewing DR pilot program filing as isolated instances. Will work with the utilities to begin working toward more comprehensive, strategy based filing with known filing detail requirements. DR filings should discuss a long term strategy and the coordination necessary to build the resource Initial DR filing will require the following elements.

DR Program filing requirements Resource Characteristics Size, duration of curtailment, services supplied (peak shaving, ancillary services, reliability). Program characteristics Baseline Calculation and methodology Notification period, Trigger, Curtailment Window Incentives (Capacity, energy or one time payment) Minimum and maximum run times, participation hours, number of events, event days, program seasonal differences Special Conditions Program participation requirements Program eligibility Tech requirements (Includes meter requirements and communication platform and requirements) Load drop capability requirements

DR Program filing requirements Cont. Program Administration Requirements Customer outreach and relationship during program Event day action plan development (PGE, ETO-(SEM)-NEEA, or contractor) Coordination with non-utility entities Measurement and verification plans Non-compliance penalty Performance, Compliance determination System Information Location of resources Anticipated utilization strategy Lessons to be learned

DR Program filing requirements Cont. Cost/ Benefit Analysis Total known and anticipated costs Known and anticipated benefit System benefits Customer benefits Ratepayer benefits Long term planning, place of the DR program and programs development in long term planning (IRP). Coordination opportunity within the utility and with contractors, markets, ETO and NEEA.

Jason R. Salmi Klotz Jason.klotz@state.or.us 503-378-6667