1. CALIFORNIA ENERGY COMMISSION 1 Demand Response Research Center Research Opportunity Notice February 2, 2007 Mary Ann Piette Research Director, DRRC Rick Diamond Coordinator, Behavioral R&D, DRRC “Understanding Customer Behavior to Improve Demand Response Delivery in California”

2. CALIFORNIA ENERGY COMMISSION 2 Demand Response Research Center Research Opportunity Notice February 2, 2007 - 10 am until noon (PST) Mary Ann Piette and Rick Diamond Webcast over WebEx http://www.mymeetings.com/nc/join.php?i=441137777&p=12341234&t=c 1. Preferred Browser: Internet Explorer 2. Download of WebEx Client Required (You will be prompted after clicking on the url; takes up to 2 minutes, join early to initialize participation) 3. Meeting Number: 441137777 4. Passcode: 12341234 5. Host: Mary Ann Piette Dial-In Numbers for Audio 1. Leader: Mary Ann Piette 2. USA Toll Free Number: 888-577-8991 3. USA Toll Number: +1-210-234-0016 4. PASSCODE: 42313 5. Call Notes: *6 Mutes and Un-Mutes Your Phone Line

3. CALIFORNIA ENERGY COMMISSION 3 Purpose of Teleconference  Provide overview and details of PIER’s Demand Response Research Center’s Research Opportunity Notice #3  Answer questions

4. CALIFORNIA ENERGY COMMISSION 4 Agenda 1. DRRC Overview - Mary Ann Piette 2. RON #3 Content & Process - Rick Diamond 3. Questions and Answers - Piette and Diamond

5. CALIFORNIA ENERGY COMMISSION 5 Demand Response Definition  Demand Response (DR) is the action taken to reduce load when: w Contingencies (emergencies & congestion) occur that threaten supply-demand balance, and/or w Market conditions occur that raise supply costs  DR typically involves peak-load reductions w DR strategies are different from energy efficiency, i.e., transient vs. permanent

6. CALIFORNIA ENERGY COMMISSION 6 DRRC  Funded by California Energy Commission Public Interest Energy Research Program (PIER)  Managed by Lawrence Berkeley National Laboratory

7. CALIFORNIA ENERGY COMMISSION 7 What Are We Trying to Achieve? Joint proceeding – CEC and CPUC (R.02-06-001) w Early goal for price sensitive DR: 5% of peak by 2007 Residential Default CPP Small Commercial (< 200 kW) Default CPP Medium Commercial (< 999 kW)Default CPP Large C&I (> 1 MW) 2-part RTP IOU business plans for Automated Meter Infrastructure Long term success  DR as business as usual Research needs w DR value, potential, technologies, programs, policies w How much DR do we need? Relation between price response and reliability?

8. CALIFORNIA ENERGY COMMISSION 8 Demand Response Research Center Objective Scope Method Stakeholders To develop, prioritize, conduct, and disseminate multi-institutional research to facilitate DR Technologies, policies, programs, strategies and practices, emphasizing a market connection Partners Planning Committee, Annual R&D Plan  State Policy Makers  Researchers  Information and Metering System Developers  Aggregators  Program Implementers  Utilities  Industry Trade Associations  Building Owners / Operators  Building Equipment Manufacturers  End-Use customers

9. CALIFORNIA ENERGY COMMISSION 9 Why Behavior?  Demand Response is a behaviorally driven system--even auto DR  In understanding behavior, the “why and the how” is as important as understanding the “who and the what”  Focus for this RON is on customer behavior

10. CALIFORNIA ENERGY COMMISSION 10 What is Behavioral R&D on DR?  Research that builds a basis of fundamental knowledge of the ways in which personal factors, e.g., values, attitudes, and contextual factors, e.g., economic costs, policies, etc., combine to influence consumer decision making to participate in DR programs.

11. CALIFORNIA ENERGY COMMISSION 11 Topic Areas 1.Residential Customers 2.Small Commercial Customers 3.Large Commercial 4.Industrial Customers

12. CALIFORNIA ENERGY COMMISSION 12 Example R&D Questions 1. Why are consumers motivated to pursue demand response: price, comfort, habit, inertia, altruism, environmental concerns, economic gain, economic loss, or something else? 2. What type of information and feedback will customers respond to, and why? 3. How willing are customers to allow technologies to act for them?

13. CALIFORNIA ENERGY COMMISSION 13 5-Step RON Process 1. Proposers submit “Intent to Respond” 2. Proposers submit 4-page “Pre-proposals” 3. DRRC reviews Pre-proposals and notifies selected respondents to proceed with full proposals 4. Proposers submit full proposals 5. Technical Advisory Group reviews proposals, forwards recommendations to DRRC and CEC for consideration for award.

14. CALIFORNIA ENERGY COMMISSION 14 RON-3 Schedule

15. CALIFORNIA ENERGY COMMISSION 15 RON-3 Documents on DRRC Web Site  Research Opportunity Notice ( DRRC RON – 03): Understanding Customer Behavior to Improve Demand Response Delivery in California  Research Opportunity Notice ( DRRC RON – 03): Process Description & Schedule

16. CALIFORNIA ENERGY COMMISSION 16 Your Questions?

17. CALIFORNIA ENERGY COMMISSION 17 Contact Information drrc.lbl.gov  Mary Ann Piette w MAPiette@lbl.gov w (510) 486-6286  Rick Diamond w RCDiamond@LBL.gov w (510) 486-4459  Nance Matson w NEMatson@lbl.gov w (510) 486-7328