Demand Response in the NW: Overcoming Barriers Stacey Donohue Idaho Public Utilities Commission stacey.donohue@puc.idaho.gov 208-334-0378

Idaho Public Utilities Commission Keep rates low! Approximately 50 employees, plus 5 Attorneys General Regulate Idaho Power, Avista, Rocky Mountain Power and … Atlanta Power Intermountain Gas, Suez Water, many small water companies, and telecom service regulation (adding a second area code to Idaho is a big deal right now) Respond to utility applications

Demand Response at Idaho Power Started in 2004 with ½ MW of residential air conditioning cycling Approximately 370 MW today 30 MW residential, 35 MW commercial, 305 MW irrigation Summer peaking $11 million in base rates, variations tracked in the PCA Works very well for dispatch center Residential demand response is hub of energy efficiency programs

Barriers in mature demand response programs: Welcome to the Future… Barriers in mature demand response programs: How much is too much? How should it be valued? Idaho Power Demand Response Settlement Case No IPC-E-13-14

Guiding Concepts Use existing demand response resources when possible Include demand response offerings for all 3 customer classes Keep costs as low as possible & re-evaluate as IRP changes Consistently in dispatch requirements for all three programs Investigate load following, operating reserves, emergency reliability and flexibility Take a long term outlook: In order to have viable long term DR, programs must continue in the short term Entire portfolio = 20 year revenue requirement for one SCCT ($16.7 million)

Nuts and Bolts Valuation – 370 MW DR portfolio equals 170 MW SCCT Participation caps – essentially capped growth Incentive amounts – how much to pay to retain participation Notification periods – shorter is better (for dispatch) Minimum dispatch – 3 times a year Ancillary services – load following

What’s next… Upcoming IRP will inform ongoing need and implementation Managing residential program churn Recruiting and maintaining C&I participants Technology is always changing – thermostats thermostats Markets

Questions Stacey Donohue Idaho Public Utilities Commission stacey.donohue@puc.idaho.gov (208) 334-0378