Evaluation of automated residential demand response with flat and dynamic pricing

Joel Swisher, Kitty Wang, and Stewart Stewart, Rocky Mountain Institute

Keywords

demand response, load management, program evaluation, time-of-use tariff, critical peak pricing

Abstract

This paper reviews the performance of two recent automated load management programs for residential customers of electric utilities in two American states. Both pilot programs have been run with about 200 participant houses each, and both programs have control populations of similar customers without the technology or program treatment. In both cases, the technology used in the pilot is GoodWatts, an advanced, two-way, real-time, comprehensive home energy management system. The purpose of each pilot is to determine the household kW reduction in coincident peak electric load from the energy management technology.

Nevada Power has conducted a pilot program for Air-Conditioning Load Management (ACLM), in which customers are sent an electronic curtailment signal for three-hour intervals during times of maximum peak demand. The participating customers receive an annual incentive payment, but otherwise they are on a conventional utility tariff. In California, three major utilities are jointly conducting a pilot demonstration of an Automated Demand Response System (ADRS). Customers are on a time-of-use (ToU) tariff, which includes a critical peak pricing (CPP) element. During times of maximum peak demand, customers are sent an electronic price signal that is three times higher than the normal on-peak price.

Houses with the automated GoodWatts technology reduced their demand in both the ACLM and the ADRS programs by about 50% consistently across the summer curtailment or super peak events, relative to homes without the technology or any load management program or tariff in place. The absolute savings were greater in the ACLM program, due to the higher baseline air conditioning loads in the hotter Las Vegas climate. The results suggest that either automated technology or dynamic pricing can deliver significant demand response in low-consumption houses. However, for high-consumption houses, automated technology can reduce load by a greater absolute kWh difference. Targeting programs to such customers can improve the economics of residential demand response.