EECS4460.61.26.211.pptx

Power System Management

EECS 4460/5460-901

Lecture #6

Customer Demand and Considerations

1

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

2

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

3

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

7

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

8

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

18

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

19

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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