System Reliability Procurement: Non-wires Alternatives in Rhode Island Tim Roughan National Grid

2 Origins – RI Legislation  Least Cost Procurement Law  Intended to:  Increase stability through resource diversification  Integrate renewables  Reduce cost of energy  Increase accountability in planning and administration  Required the development of Standards for Energy Efficiency and System Reliability Procurements  Basis for 3-year EE plans  Approved in 2009  Updated in 2011

3 Origins – RI Legislation  Despite approval of proposed SRP Plan in 2009, no SRP funding  Some EE budget money set aside for SRP analysis tool development  Internal guidelines for NWA consideration developed in 2010/2011  EE/SRP Standards updated in 2011  More detail in SRP section on funding, BC analysis and reporting  Incorporated project eligibility criteria from internal guidelines  Established annual reporting  First SRP Report was approved and funded in 2012

4 Our Internal Process  Internal Principles Document  Cross-functional agreement on NWA process  Approved in February 2011  2 Review Cycles (below)  If NWA options are available, wires and NWAs are considered together Initial Review: Engineering Review capital project needs to determine potential for NWA Viable needs must: Have >$1M wires option budget Be unrelated to asset condition Have >= 3 year lead time Be <20% of total area’s load Secondary Review: Customer Org. Review shortlist from T&D for quantitative NWA potential Review should include assessment of: Customer base Load drivers Available technologies

5 Identified Need  Two Feeders out of Tiverton substation serving Tiverton & Little Compton  Forecasted to be overloaded starting in 2014  Potential for ~5,600 affected Customers: 80% Residential, 20% C&I  Wires solution – substation upgrade – will cost $2.9 million in 2014  Non-wires Goal: provide load relief starting in 2014, up to 1MW by 2017

6 Pilot Design – A Collaborative Approach  Project plan includes SRP and EE components  New technology, enhanced incentives, marketing and evaluation through SRP funding  Measures delivered through EnergyWise, the RI single family, residential audit program  Demand response events conducted through SRP funding  Benefit/cost analysis uses the Total Resource Cost model  Uses same avoided costs as the statewide programs  Added benefits associated with the DR events  Regional T&D deferral benefit is replaced with specific locational T&D deferral benefit as calculated as a revenue requirement for deferral years 2014 through 2017  Associated benefits/costs of the leveraged EE components included in BC but not claimed by SRP  Pilot must be cost effective over full six-year life, not in each year

2012 Components Wi-fi Thermostats for Central AC Units Higher Frequency of EE Audits DR Lighting Ballast (Commercial Only) 2013 Enhancements Wi-fi Thermostats and Smart Plugs for Window AC Units Energy Star Window AC Purchase Rebate AC Unit Recycle Rebate Increased, Direct Marketing Community Event 7 Technologies and Methods

Preliminary Results to Date YearParticipants Thermostats Installed Window AC Control Plugs Installed Estimated kWh Savings Estimated kW Savings Anticipated DR Savings (kW) Total Estimated kW , , Total ,  150kW load reduction needed in  This does not include savings from measures installed as a result of home energy audits completed in the area  180 customers in 2012  83 customers so far in 2013  Evaluation of pilot program will determine amount of resulting savings that are attributable to the pilot

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