1. Demand Response as a Distributed Energy Resource presented by: Mark S. Martinez Manager, Program Development PLMA Fall Conference September 2004

2. 2 DR Load Control DR is used primarily as a reliability resource for load shedding at present Geographic granularity may be limited (substation or district level) Residential space conditioning load the primary end use under dispatch Summer peaking situations most applicable due to coincidence with system stress and economic constraints

3. 3 SCE’s Existing System 115,000 devices Emergency trigger 20% enhanced 250 MW available SCE system peak = 20,700 MW

4. 4 Typical CAC Average Duty Cycle

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7. 7 New Smart Thermostat Technologies

8. 8 AC load reduction at customer facility from Smart Thermostat

9. 9 Advanced Load Control - The New DR Systems can be dispatched more quickly for either reliability or economics Residential and commercial systems can be used in concert to provide relief Compatible with advanced metering Easily dispersed and effective at the critical circuit level

10. 10 Comparable Load Relief Strategies Source: LIPA

11. 11 DR Resource Design: A Balancing Act ComplementaryObjectives CompetingObjectives KeyMessages: CustomerPlanner/Administrator No interruptions Real time visibility Simple to understand 100% reliability (insurance) Real time “verifiable” load* Simple to administer High Incentive (stable price) 24-48 hours notice No risk (no penalty) Customer-specific baseline Long-Term Contract Minimize costs (market price) Immediate dispatch* Dependable load commitment Uniform baseline methodology Flexibility to respond to market  * Price drivers = dependable (firm) load, immediate dispatch

12. 12 CAISO Graph : 9-7-04 (Tues)

13. 13 2004 ACCP/API Events at SCE ISO - March 8, 2004 – 6:23pm for 32 minutes – 302MW (Monday, unexpected shortage) ISO - July 20, 2004 – 4:53pm for 4 hours, 10 min. – 193MW (Tuesday, heat storm) DR – Sept. 10, 2004 – 3:29 for 1 hour, 6 minutes, 14MW (Friday heat storm*) DR – Sept. 11, 2004 – 2:34 for 16 minutes, 7MW (Moorpark A bank) – Saturday! *1529 to 1635: Initiated AC Cycling for District 43 (Saddleback) due to overloading on Santiago- Limestone-Moulton 66 kV Line.

14. 14 Santiago A-Bank Total Power

15. 15 Irvine Number 1 B-Bank

16. 16 Irvine Number 2 B-Bank

17. 17 Circuit Level Granularity District Summary (Devices with Cycling % >0 ) # of Districts with Devices 34 Average # of Devices per District 3,972 Average Amp per District 95,073 Average Curtailed Load Per District 91,268 SubStation Summary (Devices with Cycling % >0 ) # of Substations with Devices 575 Average # of Devices per Substation 235 Average Amp per Substation 5,622 Average Curtailed Load Per Substation 5,397 Circuit Summary (Devices with Cycling % >0 ) # of Circuits with Devices 2,792 Average # of Devices per Circuit 48 Average Amp per Circuit 1,158 Average Curtailed Load Per Circuit 1,111

18. 18 ALC as a Spinning Reserve?