Price Responsive Load / Retail DR Update to RMS Karen Farley June 3, 2014

2 Why it’s important to understand retail DR & price response Impacts of retail demand response and price response on the long term load forecast Advanced metering –Enablement of DR is an important element in the return on the AMI investment There are limits on the amount of DR that the ISO can contract for (e.g., Ancillary Services and ERS). –Also true of TDSP load management programs The bulk of new DR will likely need to be enabled by LSEs: –Price and 4CP-responsive Load –Other retail DR incentives and technologies Ability to track growth of these products is a key metric in measuring the success of the ERCOT retail market DR/Price Response

3 PUC Rule Pursuant to PUC Subst. Rule §25.505(e) (5), “Load Serving Entities (LSEs) shall provide ERCOT with complete information on load response capabilities that are self-arranged or pursuant to bilateral agreements between LSEs and their customers” DR/Price Response

4 Lessons Learned from Summer 2013 Data Collection Lessons Learned 1.Did we have the right categories identified? Same categories for another cycle and revisit when we discuss lessons learned in the Fall Reviewed and tweaked definitions at the April workshop; redlines are posted to the workshop webpage. 2.Follow up survey for REP event identification? Will continue using Survey Monkey and revisit when we discuss lessons learned in the Fall Will make edits / add questions to survey to address additional details 3.File management / error handling Redlines to Demand Response Data Technical Specification File to explain differences in file (additional examples at end of document). Did not change format of file, added clarifying language. Encourage REPs to communicate to service providers DR/Price Response

5 Next Steps for Summer 2014 Data Collection 2014 Summer data collection timeline September 30, snapshot by REPs for which ESI IDs are in programs November 1, file submission to ERCOT* November 15, error correction file submission to ERCOT –* pushed file submission back by 2 weeks to allow any error handling to be completed prior to Thanksgiving Holiday –REP should make all necessary corrections and re-send the full file to ERCOT. ERCOT will use the last file sent for data analysis. November 15, 2014 – ERCOT will send Survey Monkey links to REPs to gather REP-specific event information ERCOT will - Post the edits to Demand Response Data Technical Specification document (redlines during meeting for category descriptions) - done Post materials to workshop meeting page - done Host another workshop before the Sept 30 snapshot – perhaps the afternoon of Sept RMS? Host WebEx between Sept 30/Nov 15 to answer questions DR/Price Response

6 Future considerations Target Fall 2014 for discussion Future years (starting 2015) –Ask REPs to evaluate 4 submissions for Summer 2015 (June, July, Aug, Sept) –Ask REPs to evaluate winter programs for future consideration We encourage RMS attendees to review categories to see if definitions fit or if new ‘winter’ categories would need to be added Consider possible dates and/or frequency of a winter file submission Review categories each year to see if adjustments need to be made Review reporting of events via Survey Monkey to see if there is a better method to leverage DR/Price Response

7 Questions? ON OFF DR/Price Response

8 Phased approach Phase 1 – Survey –What demand response programs are out there? Should we learn more? –Led to ESIID level data collection in phase 2 Phase 2 – Data collection –Collected ESIID information from REPs –Additional survey used to collect events from REPS –Phone calls with NOIEs Phase 3 – Analysis –Analysis will be at the aggregate, no specific market participant information will be shared Phase 4 – Report to market –Target July RMS to share aggregate report DR/Price Response