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

2. 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

3. 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

4. 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)

5. 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

6. 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

7. 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?

8. 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?