OG&E’s Smart Study TOGETHER: Impact Assessment of Enabling Technologies and Dynamic Pricing Rates Katie Chiccarelli, Craig Williamson January 24, 2012

Agenda  Program Background – Program Design (Rate/Technology)  2010 DR Study – Hypothesis, results  2011 DR Study – Results – Phase I vs. Phase II participants  What do there results mean? – What rate/technology = load savings – Can we defer generation? 2

3 OG&E 9 power plants: 6.8 GW 778 MW - wind 765k customers in OK & AK 30k square mile service area 23k miles of overhead distribution lines 500 substations 1100 distribution circuits

Smart Grid Program This material is based upon work supported by the Department of Energy under Award Number DE-OE and Project Number This report was prepared as an account of work sponsored by an agency of the United States Government. Neither the United States Government nor any agency thereof, nor any of their employees, makes any warranty, express or implied, or assumes legal liability or responsibility for the accuracy, completeness, or usefulness of any information, apparatus, product, or process disclosed, or represents that its use would not infringe privately owned rights. Reference herein to any specific commercial product, process, or service by trade name, trademark, manufacturer, or otherwise does not necessarily constitute or imply its endorsement, recommendation, or favoring by the United States Government or any agency thereof. The views and opinions of authors expressed herein do not necessarily state or reflect those of the United States Government or agency thereof.

Smart Grid Demand Response Background 5 Quail Creek 25 Customers Acceptance Energy Awareness 2010 Study 3,000 Customers Reduced Peak Segment Results Acceptance Technology Dynamic Pricing 2011 Study 6,000 Customers Dynamic Segmentation Commercial Results Critical Price Results Pilot ~40 K Customers 70 MW Implement Dynamic Segmentation Penetration Testing Product 20% customer participation by Dec MW New Pricing Products Value-Added Products + Services

6 Off-Peak/Low Standard High VPPTOU Critical 4.5 ¢/kWh 11.3 ¢/kWh 23 ¢/kWh 46 ¢/kWh Study Design—Price Plans Critical Price Event 4.2 ¢/kWh 23 ¢/kWh 46 ¢/kWh

7 Off-Peak/Low Standard High VPPTOU Critical 4.5 ¢/kWh 11.3 ¢/kWh 23 ¢/kWh 46 ¢/kWh Study Design—Price Plans Critical Price Event 4.2 ¢/kWh 23 ¢/kWh 46 ¢/kWh

8 Off-Peak/Low Standard High VPPTOU Critical 4.5 ¢/kWh 11.3 ¢/kWh 23 ¢/kWh 46 ¢/kWh Study Design—Price Plans Critical Price Event 4.2 ¢/kWh 23 ¢/kWh 46 ¢/kWh

9 Study Design- Technology Energate Pioneer Silver Spring Networks

DR Study Hypothesis  20% Participation by December 2014 o 150K customers (50k per year)  1.33 kW per customer (~70 mW per year) 10

POSITIVE ENERGY TOGETHER ® 2010 Study Results

12 VPP-CP Critical Weekday Max DR TOU-CP Average Weekday Max DR Web0.51 kW0.33 kW IHD0.47 kW0.54 kW PCT1.96 kW1.25 kW VPP rate combined with PCT enabling technology maximizes load reduction 2010 Study Results Validate Hypothesis

Results – VPP Critical Price Weekday

Results System Peak Max Reduction

15 Desired Results

Shifting and Conservation 16 kWh Change, VPP-CP Critical Weekday kWh Change, TOU-CP Average Weekday On Peak kWh Off Peak kWh On Peak kWh Off Peak kWh Web IHD PCT

VPP Demonstrates Price Elasticity 17 On Peak Price Maximum Demand Reduction BaselineReductionPercent VPP Low4.5 ¢ % VPP Standard11.3 ¢ % VPP High23 ¢ % VPP Critical46 ¢ %

POSITIVE ENERGY TOGETHER ® 2011 Study Results

2011 study results  Results from 2011 confirm 2010  Load shapes changed, Demand Reduction approx. the same (2010 v. 2011)  Strategically called events can – Stretch out savings – Add secondary bump to savings closer to the system peak  2011 Summer was HOT! 19

versus 2011 Impacts-TOU-CP

versus 2011 Impacts-TOU-CP

2010 versus 2011 Impacts-VPP-CP 22

2010 versus 2011 Impacts-VPP-CP 23

2010 versus 2011 Impacts-VPP-CP 24

Event Day Savings–Short Event 25

Event Day Savings–Longer Event 26

Conclusion  Potentially Avoid Future Generation – Study results show a 1.3 kW reduction per customer is possible. Participation targets will achieve goal – Event calling enables reduction at time of peak  Plans for 2012 – ~40k customers enrolled in SmartHours – 72 mW reduction – Discontinue roll out of IHD 27

Katie Chiccarelli Craig Williamson

POSITIVE ENERGY TOGETHER ® Appendix

Summary: Rate & Technology Combinations Rate/Technology Baseline kWh UsagekWh Savings% Savings Average kW ReductionPeak kW Reduction TOU-CP Non-Event Weekend PCT Only % IHD Only % All % Web Only % TOU-CP Non-Event Weekday PCT Only % IHD Only % All % Web Only % VPP-CP Low Weekend PCT Only % IHD Only % All % Web Only % VPP-CP Low Weekday PCT Only % IHD Only % All % Web Only %

31 Rate/Technology Baseline kWh UsagekWh Savings% Savings Average kW Reduction Peak kW Reduction VPP-CP Standard PCT Only % IHD Only % All % Web Only % VPP-CP Medium PCT Only % IHD Only % All % Web Only % VPP-CP High PCT Only % IHD Only % All % Web Only % Summary: Rate & Technology Combinations

2010 Peak Savings by Income: VPP-CP High 32 Income Group Baseline kWh UsagekWh Savings% Savings Average kW Reduction Peak kW Reduction Low PCT Only % IHD Only % All % Web Only % Middle PCT Only % IHD Only % All % Web Only % High PCT Only % IHD Only % All % Web Only %

On Peak Savings by Age: VPP-CP High Age Group Baseline kWh UsagekWh Savings% Savings Average kW Reduction Peak kW Reduction Young PCT Only % IHD Only % All % Web Only % Family PCT Only % IHD Only % All % Web Only % Mature PCT Only % IHD Only % All % Web Only %

Event Day Savings- Aug 8 Event 34

35 Phase I, 2011: Non-Event Demand Average On-Peak DemandDemand at Time of Maximum Reduction BaselineReduction% ReductionBaselineReduction% Reduction TOU-CP Weekend Non-Event Portal Only % % IHD, Portal % % PCT, Portal % % All % % TOU-CP Weekday Non-Event Portal Only % % IHD, Portal % % PCT, Portal % % All % % VPP-CP Low Weekend Portal Only % % IHD, Portal % % PCT, Portal % % All % % VPP-CP Low Weekday Portal Only % % IHD, Portal % % PCT, Portal % % All % %

36 Phase I, 2011: Non-Event Demand Average On-Peak DemandDemand at Time of Maximum Reduction BaselineReduction% ReductionBaselineReduction% Reduction VPP-CP Standard Weekday Portal Only % % IHD, Portal % % PCT, Portal % % All % % VPP-CP High Weekday Portal Only % % IHD, Portal % % PCT, Portal % % All % % VPP-CP Critical Weekday Portal Only % % IHD, Portal % % PCT, Portal % % All % %

37 Phase II, 2011: Event Day Demand Average On-Peak DemandDemand at Time of Maximum Reduction BaselineReduction% ReductionBaselineReduction% Reduction TOU-CP July 15, 2011 Event Portal Only % % IHD, Portal % % PCT, Portal % % All % % VPP-CP July 15, 2011 Event Portal Only % % IHD, Portal % % PCT, Portal % % All % % TOU-CP August 08, 2011 Event Portal Only % % IHD, Portal % % PCT, Portal % % All % % VPP-CP August 08, 2011 Event Portal Only % % IHD, Portal % % PCT, Portal % % All % %

38 Phase II, 2011: Event Day Demand Average On-Peak DemandDemand at Time of Maximum Reduction BaselineReduction% ReductionBaselineReduction% Reduction TOU-CP August 24, 2011 Event Portal Only % % IHD, Portal % % PCT, Portal % % All % % VPP-CP August 24, 2011 Event Portal Only % % IHD, Portal % % PCT, Portal % % All % %