1. Mass Market Demand Solutions in PJM
Raab Associates PJM Roundtable
Matt McCaffree – Sr. Director, Government & Regulatory Affairs, Itron
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So, what we’ll focus on today is how this impacts the electricity, gas, and water industries.
©2017  ITRON CONFIDENTIAL PROPRIETARY
Sept. 27, 2017

2. Itron capabilities
OUTCOMES
Outcomes as a Service
Managed Services
Software as a Service
Consulting
Efficiency & Demand Response Program Evaluation
System & Solution Integration
MEASUREMENT
Sensors
Meters
Controls
Communications Modules
MANAGEMENT
Distributed Energy Management (formerly Comverge)
Enterprise Meter Data Management
Fixed, Mobile & Hybrid Networks
Multi-protocol Deployment (RF, Cellular, PLC)
ANALYSIS
Forecasting
Analytics
Distributed Intelligence
Centralized
Itron has the tools and the expertise to simplify the complex process of measuring, managing and analyzing data.
Our solutions are designed to help utilities measure, manage and analyze data to deliver results. We have a full suite of services to help utilities be successful throughout this process.
Our people are our most valuable asset. We consult with our customers every step of the way to ensure that all project goals are achieved efficiently.
Itron Overview |

3. Itron in the Pjm footprint
> 600 MW of mass-market demand response
1.6 million advanced meters deployed with another 1.2 million pending
100+ technicians in the field to recruit, deploy and maintain solutions
Continuously running our largest DEM programs in PJM for nearly a decade
Itron Overview |

4. Mass market successes & challenges
Utility #1
55%
Utility #2
50%
% of Central A/C households enrolled
Through direct marketing and recruitment, Itron DEM has achieved unprecedented market penetration for an opt-in program.
Residential and small commercial demand exhibits high seasonality across PJM, which limits our options for targeting resources with greatest coincident peak.
Annual solutions create significant headwinds for residential DR (Capacity Performance & Price Responsive Demand)
84% of Itron’s mass market DR is reliant on HVAC load
16% Water Heating, Pool Pumps, SMB Lighting
84% Central A/C

5. Runtime savings – foundational for PRD
Standard Setback Approach
Weather Data + Thermal Model
Approach

6. Requirements for PRD Dynamic Rate Structures
Must be based on wholesale prices (real-time LMPs)
Includes Critical Peak Pricing (CPP), Critical Peak Rebate (CPR), or Real-Time Pricing based on LMP
Supervisory Control
Ability to curtail load as a PRD Provider
Advanced Metering
End-use customer loads may not:
Be registered as Economic or Emergency Load Response
Be used in DR or EE resource sell offers in any auction

7. AMI across PJM
8.42 million advanced meters deployed (Q4 2016) across PJM
Additional 7.88 million in planning = million in total
Significant discrepancies for AMI deployment across PJM
Maryland, Pennsylvania, Illinois (ComEd), and Ohio are either at or are planning to reach full deployment
New Jersey and West Virginia significantly lagging

8. Challenges to implementing PRD
A mass-market PRD deployment is significantly more difficult than other demand-side solutions:
Regulatory approval
AMI installation & deployment; adjusting depreciation to properly account for AMI
Rate changes, particularly when based on more dynamic wholesale rates
Communication with customers on new investments and rate changes; considerations of affordability and parity
Significant education and engagement is needed at the jurisdictional level, particularly for states lagging in AMI deployment.
Changing M&V for PRD creates more confusion and uncertainty for those implementing mass-market programs.
Switching away from FSL ignores the seasonal asymmetry of mass market demand, particularly in population dense LDAs
Uncertainty in how PRD will be measured has a cooling effect on investment and deters competition, innovation
Itron Overview |