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SMUD’s Small Business Summer Solutions Pilot:

Behavioral response of small commercial customers to DR programs (with PCTs)

Karen Herter, Ph.D.Associate Director

Heschong Mahone Group

November 19, 2008

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Project Overview

• Acknowledgements

• Demand Response Research Center (DRRC)

• Sacramento Municipal Utility District (SMUD)

• Schedule

September 2007 Market Report

October 2007 Focus Groups

Spring 2008 Recruitment & installation

June-Sept 2008 Field study

December 2008 Final Report

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Research Overview

• Target: SMUD Small businesses <20 kW

• Goal: Quantify perception, behavior & load impact differences between…

• 2 DR program types– A. Critical Peak Pricing (CPP)

– B. Temperature Offset of 2 or 4 degrees

• 3 small business customer types– Offices

– Retail

– Restaurants

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A. Critical Peak Pricing Option

• Discounted TOU rate + 12 CPP events

• Overall: Revenue Neutral for the summer

• PCTs offered for free, but not required

• PCTs can pre-cool and/or float during events (or not)

• Settings can be changed by customer at any time

• Bills showed change in bill relative to standard rate

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Critical Peak Pricing Rate

Small Business Summer Solutions Rate

Price per kWh

Midnight Noon 4pm 7pm 10pm Midnight

8.52¢ (24% lower)

9.87¢ (12% lower)

13.11¢ (16% higher)

8.52¢ (24% lower)

9.87¢ (12% lower)

57.15¢ CRITICAL EVENTS (12 days)

For more info visit www.h-m-g.com/projects/SummerSolutions or call 916-962-7001

weekdays only

Standard GSN Rate: 11.27¢

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B. Temperature Offset Option

• Payment ≈ CPP savings for similar AC actions

• $5 per month for 2-degree AC offset

• $10 per month for 4-degree AC offset

• PCTs required

• Can pre-cool

• Overrides not allowed (but technically feasible)

• No $$ incentive to reduce lighting, etc.

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Participant Breakdown

CPP TOP2 TOP4 Total

Office 24 1 11 36

Retail 20 3 7 30

Restaurant 8 3 1 12

Total 52 7 19 78

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Event Procedure

• Notifying participants

• Day before event

• Via email, text message and/or thermostat display

• Notifying thermostats

• Morning of event

• Event parameters to thermostat (via RDS) to schedule automated control strategy

Internet

FM Tower

RDS Sign

al

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Twelve Event Days

Day Date Hi Temp Thu 6/26/2008 87.7 Thu 8/7/2008 91.9 Tue 8/25/2008 94.7 Wed 7/23/2008 95.3 Thu 7/24/2008 96.3 Fri 7/18/2008 96.7 Fri 9/5/2008 100.7 Fri 8/15/2008 102.3 Wed 8/13/2008 102.4 Fri 8/29/2008 103.8 Wed 7/9/2008 106.6 Tue 7/8/2008 106.7

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Satisfaction by Program Choice

Did the Summer Solutions program meet your expectations?

20% 80%

0%10%20%30%40%50%60%70%80%90%

100%

No, I'm extremelydisappointed

Almost, but notquite

Yes, more or less It surpassed myexpectations

2 Deg. Offset 4 Deg. Offset CPP

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Satisfaction by Business Type

Did the Summer Solutions program meet your expectations?

20% 80%

0%10%20%30%40%50%60%70%80%90%

100%

No, I'm extremelydisappointed

Almost, but notquite

Yes, more or less It surpassed myexpectations

Office Restaurant Retail

12

Cooling offsets by Program Choice

-5

-4

-3

-2

-1

0

1

2

3

4

5

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Hour

Even

t Offs

et (d

eg F)

2-Degree4-DegreeCPP

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Cooling offsets by Business Type

Event Offsets by Business Type

-8

-6

-4

-2

0

2

4

6

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Hour

Even

t Offs

et (d

eg F)

Office

Restaurant

Retail

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-$200

-$180

-$160

-$140

-$120

-$100

-$80

-$60

-$40

-$20

$0

$20

$40

Cha

nge

in b

ill fr

om s

tand

ard

rate

CPP Bills

Only four participants paid more on the CPP rate

Avg. % Savings = 5%

Max % Savings = 10%

Max % Increase = 14%

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Data Yet to be Analyzed

• Hourly load data

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For more information

Contact Karen Herter at:Karen.Herter@h-m-g.com(916) 962-7001 x32

-OR-

Read the PIER report due December 2008