Enhanced Proxy Demand Resource: ESDER 3 PDR-LSR Eric Kim Infrastructure and Regulatory Policy Specialist

CAISO PDR-LSR Design and Load Shift Definition CAISO is designing PDR-LSR as a resource that can absorb, store, and use energy productively at a different time. Design will prevent incentivizing wasteful and unproductive consumption of energy. Key requirement – energy storage device must be submetered Ability to directly measure energy charged and discharged

Key Features PDR-LSR defined for energy consumed at one time and released at another time Requires direct metering of BTM energy storage Resource pays full retail rate for all charging energy Two resource IDs: For load curtailment Maintains RA capacity eligibility Non-exporting rule applies For load consumption Ineligible for RA capacity and ancillary services Ability to bid a negative cost for energy services

Bidding and Energy services Both PDR-LSR bidding options must be uniform 15-minute or 5-minute dispatchable Will be eligible for bid cost recovery PDR- 𝐿𝑆𝑅 𝑐𝑢𝑟𝑡 can bid at or above $0 PDR- 𝐿𝑆𝑅 𝑐𝑜𝑛𝑠 can bid from -$150 to < $0 Energy Services Energy Flexible Ramping Product Imbalance Reserve Product (DAM enhancements initiative) Ancillary Services (only for curtailment)

PDR-LSR Performance Evaluation Methodology Will measure and net out “typical use” to define incremental value of load shift provided The performance methodology was referenced as MGO-Shift and MEC in revised straw proposal but will now be renamed to: LSR-curtailment 𝐿𝑆𝑅 𝑐𝑢𝑟𝑡 = 𝐺 𝑡 − 𝐺 𝐿𝑀 LSR-consumption 𝐿𝑆𝑅 𝑐𝑜𝑛𝑠 = 𝐺 𝑡 − 𝐺 𝐿𝑀

PDR-LSR “typical use” calculations Typical Use Curtailment ( 𝐺 𝐿𝑀𝑐𝑢𝑟𝑡 ) : 10-in-10 CLB, using 10 non-event hours including both consumption and curtailment but only accept a value that is at or above 0. 𝐺 𝐿𝑀 = 𝑀𝑎𝑥 𝐺 𝐿𝑀𝑐𝑢𝑟𝑡 + 𝐺 𝐿𝑀𝑐𝑜𝑛𝑠 , 0 Typical Use Consumption ( 𝐺 𝐿𝑀𝑐𝑜𝑛𝑠 ) : 10-in-10 CLB, using 10 non-event hours including both consumption and curtailment but only accept a value that is at or below 0. 𝐺 𝐿𝑀 = 𝑀𝑖𝑛 𝐺 𝐿𝑀𝑐𝑢𝑟𝑡 + 𝐺 𝐿𝑀𝑐𝑜𝑛𝑠 , 0

Key Features – Considerations PDR-LSR defined for energy consumed at one time and released at another time Storage of heat or cooling not contemplated as load shift. Requires direct metering of BTM energy storage How do we measure Method for metering of load consuming device directly or indirectly Performance methodology for load shift consumption of a load consuming device Resource pays full retail rate for all charging energy Should resource be charged retail rate with provision of wholesale consumption services?

Key Features – Considerations (Cont.) Two resource IDs: For load curtailment Maintains RA capacity eligibility Non-exporting rule applies Should exporting be allowed? For load consumption Ineligible for RA capacity and ancillary services Ability to bid a negative cost for energy services Should just load consumption be allowed? If so, how to prevent incentivizing wasteful and unproductive consumption? Ancillary services (except for regulation) is allowed for curtailment. Should regulation be a potential service?