Power System Management
EECS 4460/5460-901
Lecture #6
Customer Demand and Considerations
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Energy Efficiency Programs
Began in the 1970’s
DOE Data Base for Tax Credits, Rebates, Loans and Savings
Energy Star product certification
State agencies; Ohio has 74 programs for gas and electric
most are rate-payer funded
Why bother?
Customer savings
Utility Savings
Environmental improvements
Jobs
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FERC Definition: Changes in electric usage by end-use customers from their normal consumption patterns in response to changes in the price of electricity over time, or to incentive payments designed to induce lower electricity use at times of high wholesale market prices or when system reliability is jeopardized.”
Demand Response Programs
P =Price
Q = Quantity
Demand Curve
becomes more elastic
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EE/DR Program Results
4
EE/DR Program Costs
Peak Load Reduction reduces the
need for added generation
5
Peak Demand Savings by Region
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| Average Price to Customer (¢/kWh) | Retail Sales (millions MWh) | |||||
| End-use sector | 2019 | Change from 2018 | 2019 | 2018 | ||
| Residential | 13.01 | 1.1% | 1,440 | 1,469 | ||
| Commercial | 10.68 | 0.0% | 1,361 | 1,382 | ||
| Industrial | 6.81 | -1.6% | 1,002 | 1,001 | ||
| Transportation | 9.51 | 1.1% | 7.66 | 7.63 | ||
| Total | 10.54 | 0.1% | 3,811 | 3,860 |
Customer Classes – Annual Snapshot
Retail Service by Customer Sector
Source: U.S. Energy Information Administration
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Total Energy Consumption by Customer Class
| Energy consumption estimates by sector trillion Btu | |||||
| January to October | 2020 | 2019 | 2018 | 2017 | 2016 |
| End–Use Sector | |||||
| Residential | 16,965 | 17,055 | 17,412 | 15,972 | 16,461 |
| Commercial | 13,801 | 14,824 | 15,185 | 14,655 | 14,854 |
| Industrial | 25,555 | 27,302 | 27,278 | 26,325 | 26,060 |
| Transportation | 20,405 | 23,784 | 23,760 | 23,367 | 23,184 |
| Primary Total | 76,731 | 82,974 | 83,633 | 80,322 | 80,558 |
| Source: U.S. EIA, Monthly Energy Review – Table 2.1 |
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Allows end-use customers (all classes) to buy electricity supply from competitive retail suppliers
Only for the supply (kwhrs), does not include transmission and distribution charges
In 2017, approx. 16.7M customers participated, 13% of the national total
Includes “Government Aggregation” in some states, including Ohio, allowing local governments to select suppliers
More commercial and industrial customers use “choice’ programs
“Retail Choice”
States with Electric Supplier Choice
Only 13 States are now Active
Residential “Choice Saturation”
Note: This excludes Texas, where customers
must choose a supplier or be assigned one
Overall participation basically unchanged since 2013
Of the 17 original “Choice States,” 13 are in the Top 20 Highest-Average Electric Rates
Most of them were “before choice” as well
Generation supply prices are very regional, based on public policy and fuel sources
Results of “Choice” Vary…
Average Residential Retail Electric Rates
| Cents/KWhr* | States/DC | Comments |
| 20-31 | AK,HI,CA,CT,MA,RI, VT | Oil and Gas, New England, California |
| 13-20 | DE,DC,IN,IL,KN,MD,ME, MI,MN,NH,NJ,NY,OH,PA, SC,WI,WV | States with choice, New England, Nat Gas |
| 11-13 | AL,AZ,CO,FL,IA,KY,MO, MS,MT,NC,NM,NV,SD,TN,TX,VA,WY | Mixed resources Coal/Nuclear Some Growth |
| Less Than 11 | AR,GA,ID,LA,ND, NE,OK,OR,UT,WA | Coal and Hydro |
*October 2020, average residential retail price
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Variations by Region
Fuel Sources by Region (November 2018)
SAIDI – System Average Interruption Duration Index
Average outage duration for each customer served
SAIDI = sum of all customer interruption durations
total number of customers served
Average value per U.S. customer is 470 minutes
including major events, 118 minutes excluding
Distribution Reliability Metrics
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SAIFI – System Average Interruption Frequency Index
Average number of interruptions experienced by a customer, over a period of time
SAIFI = Total number of customer interruptions
Total number of customers served
Average for U.S. is 1.4 interruptions per customer
including major events, 1.0 excluding
Distribution Reliability Metrics
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CAIDI – Customer Average Interruption Duration Index
Average outage duration that any customer would experience
CAIDI = sum of all customer interruption durations
total number of customer interruptions
Average value per U.S. customer is 138 minutes
Distribution Reliability Metrics
20
MAIFI – Momentary Average Interruption Frequency Index
Average number of momentary interruptions experienced by a customer
MAIFI = Total number of momentary customer interruptions
Total number of customers served
Definition of “Momentary” varies: 1 minute, 5 minutes etc.
Difficult to Compare – Not universally accepted
Distribution Reliability Metrics
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Reliability Trends
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Reliability Trends
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Power Company Management of Major Storms Continues to Improve
Mutual Assistance – cooperation and coordination, pre-positioning of crews (e.g. for Dorian, FP&L mobilized a 16,000-person workforce at 24 staging areas – 36 states had such plans for Dorian); costs covered in rates
Centralized major transformer/component availability
Load impacts: e.g. Hurricane Irma (2017), load fell 40% first day followed by 63%, then recovered over two week period
Nuclear Plants required to shut down @ 74 mph winds
Major Storm Management
Planning for Hurricane Dorian
Chart as of the Morning of September 3, 2019
Projected Paths Continuously
Updated
Power Plants Shown, emphasizing nuclear
LNG Terminals, Gas and Oil Pipelines Shown
Strongest storm to hit Louisiana since 1856
900k Entergy Customers out…some for 35 days
Workforce of 26,000 from 31 states, D.C. and Canada
14,000 distribution poles and 1400 transmission structures damaged
Hurricane Laura, August 2020
As viewed by the Customer…
Customer Trends
Energy Efficiency Programs
Automated Payment
Sophistication for C&I customers
Home Automation
Customer Owned Generation
Long term use for industrial customers
Emerging for Commercial and Residential
Back-up supplies
Renewables – rooftop solar, wind, batteries
Distributed Energy Resources (DER’s)
Smart Meters
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Smart Meters
“Dumb Meter”
“Smart Meter”
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Smart Meters
Two-way communications
Billing
Consumption Data
Power Quality Data
Outage Data
Health Effects?
“Opt-out” options
Load Control by Utility?
Part of the Smart Grid
30
Smart Meter Deployment
Substantial Growth in Smart Meters
Update: 83.5 Million at year end 2019
Power Generation Alternatives
Hydro, Coal, Nuclear, Natural Gas
Renewable Energy – Solar, Wind, Biomass
Planning and Reliability
Economics/Costs
Fuel
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