Emerging Markets & Technology Demand Response (DR) Projects. Annual Report: 2010

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2 Table of Contents Emerging Markets & Technology Table of Contents... i I. Summary... 1 II. Projects Completed in A. DR09.10 & Office of the Future NBI and Long Beach Collaboration Results Next Steps... 4 B. DR10.04 Title 20 & 24 Market Growth & Adoption Study Results Next Steps... 6 C. DR10.17 Commercial and Residential Demand Load Profiles Collaboration Results Next Steps... 7 D. EPRI End-Use Energy Efficiency and Demand Response Program Collaboration Results Next Steps... 8 E. DR10.18 IHD Field Trial Phase III. Projects initiated in A. DR10.02 Office of the Future GO2 & GO Collaboration Status Next Steps B. DR10.03 OpenADR Standards Development Collaboration Status Next Steps C. DR10.05 AutoDR PCT Status Next Steps D. DR10.06 PCT Language in Codes and Standards i

3 Collaboration Status Next Steps E. DR10.07 One-Cycle Control M&V Collaboration Status Next Steps F. DR10.08 DR Pool Pumps Status Next Steps G. DR Demand Response Research Center Collaboration Status Next Steps H. DR10.16 Smart Appliances Status Next Steps I. DR11.01 Ancillary Services Pumping Equipment Status Next Steps IV. Projects continued in A. DR09.08 Expanding Residential DR in the Irvine Smart Grid Demonstration (ISGD) project Collaboration Status Next Steps B. DR09.02 Home Battery Pilot Status Next Steps C. DR09.09 Office of the Future Los Angeles Collaboration Status Next Steps V. Budget ii

4 I. Summary As described in section VIII of the Amended Testimony in Support of SCE s Amended Application for Approval of Demand Response Programs, Goals and Budgets for (A ) and authorized in California Public Utilities Commission (CPUC) D Adopting Demand Response Activities and Budgets for 2009 through 2011, SCE Emerging Markets & Technology (EM&T) executes projects to explore innovative Demand Response (DR) technologies, understand customer preferences and market potential and provide input on DR codes and standards to enable customer participation in SCE s DR programs. This report is being submitted as directed in ordering paragraph 14 of Decision (D.) to provide an annual report on the projects undertaken through the EM&T efforts. SCE is working closely with industry groups, academic institutions and other utilities to develop a vision for DR, identify technologies that can be leveraged for DR and establish standards for interoperability of DR technologies. The California Investor Owned Utilities (IOUs) meet every month to coordinate, collaborate and share results from each IOUs portfolio of EM&T projects. In the ongoing research efforts to institutionalize and expand DR in California, SCE intends to continue collaborations with other statewide agencies and other parties interested in DR, such as: California Energy Commission (CEC) Public Interest Energy Research (PIER) program Demand Response Research Center (DRRC) at Lawrence Berkeley National Laboratory University of California Berkeley s DR Enabling Technology Development (ETD) Project for which SCE is on the Technical Advisory Council Emerging Technologies Coordinating Council Organization for the Advancement of Structured Information Standards (OASIS) Open Smart Grid (OpenSG) at UCA International Users Group New Buildings Institute (NBI) Consortium Electric Power Research Institute (EPRI) OpenADR Alliance Consumer Electronics Association U.S. Green Building Council (USGBC) The positive results from EM&T projects do little to advance DR if those results are not communicated to our customers and other stakeholders. Therefore, SCE has implemented several approaches for communicating DR advances across SCE to internal stakeholders like the Business Customer Division s (BCD) Account Managers who can then educate and influence customers to enroll in DR programs and adopt DR technologies and strategies. 1 2 Amended Testimony in Support of Southern California Edison Company s Amended Application for Approval of Demand Response Programs, Goals and Budgets for , pp : DR+Amended+App_SCE-01+Amended+Testimony+Vol.+I.pdf Decision Adopting Demand Response Activities and Budgets for 2009 through 2011, pp.88-89; Ordering Paragraph 16: 1

5 Customer Information Sheets to aid Account Managers in communicating the opportunities associated with DR technologies and strategies developed by EM&T Integrated Demand Side Management (IDSM) through coordination and collaboration where EM&T partners with the Customer Energy Efficiency & Solar (CEES) organization and BCD s Design & Engineering Services (D&ES) to execute the EM&T projects utilizing the engineering staff within D&ES. Quarterly Technology Briefings for BCD representatives by D&ES to communicate the results of EM&T DR and D&ES energy efficiency (EE) Emerging Technologies program projects at Customer Technology Application Center (CTAC) in Irwindale, CA. DR Forum to help communicate and coordinate DR information across SCE by hosting a distinguished group of industry speakers who have offered varied perspectives on DR-related topics to stakeholders from across the company. In addition to the EM&T annual reports provided to the CPUC, full reports on the completed EM&T projects are also available to the public through the ETCC web site ( ETCC coordinates among its members including California's IOUs, the Sacramento Municipal Utility District (SMUD), the CEC, and the CPUC to facilitate the assessment of promising energy efficiency and DR emerging technologies that will benefit California customers and respond to the mandate outlined in the California Energy Action Plan. In 2010, SCE chartered EM&T projects in the following areas: Establishing DR capabilities in standard commercial product offerings Development of DR standards for buildings, appliances and messaging protocols Research into the DR potential of consumer appliances and new construction building codes Initiation of the Home Battery Pilot project Enabling future IDSM policy objectives through o Office of the Future (OTF) project collaboration with CEES o Exploring Home Area Network (HAN) capabilities for DR by participating in the Irvine Smart Grid Demonstration (ISGD) project This report summarizes the results and status for the individual projects. The DR project numbers assigned to each project are listed and these can be used to locate specific project documentation on the ETCC web site. 2

6 II. Projects Completed in 2010 A. DR09.10 & Office of the Future NBI and Long Beach a) New Buildings Institute (NBI) OTF projects are chosen to demonstrate energy savings better than California Title 24 in support of demand-side program offerings across North America. NBI has been chosen as the Program Management Agent for OTF and will be responsible for tracking and accounting for OTF sponsor funding, managing the work plan, arranging and supporting meetings and facilitating communications. Incorporated as a 501(c)(3) nonprofit in 1997, NBI works with national, regional, state and utility groups to promote improved energy performance in commercial new construction; managing projects involving building research, innovations in building design and enhanced program delivery. The key development and implementation deliverables provided by NBI to the OTF sponsors will include: Pilot program protocol Program plan including marketing strategy Technical manuals and marketing support materials National/international partnership strategy with USGBC, Building Owners and Managers Association, Environmental Protection Agency, and Department of Energy (DOE) National/international marketing strategy to real estate owner and managers Brand strategy and website Research agenda focused on even more aggressive energy/demand savings levels. b) Long Beach The purpose of this project is to field demonstrate the OTF 25% solution (25% better than Title 24) for typical large office spaces. This project included spaces representing lobby and reception areas, conference rooms, individual offices, break rooms, hallways, etc. at the Landmark Square building in Long Beach. The scope of work included the following energy efficiency measures and demand response strategies: Indirect/direct overhead lighting with low ambient light levels High-performance T8 and compact fluorescent lamps with electronic dimming ballasts (Lutron s EcoSystem ballasts) High-performance LED dimming lamps LED task lighting with local occupancy sensor for each workstation Control system (Lutron s Quantum) with independent dimming control for each individual luminaire. 3

7 Control software fully implements the following lighting strategies: - Occupancy control - Personal control - Daylight harvesting - Smart time scheduling - Task tuning - Demand response triggered by DR event signals - Load shedding 2. Collaboration PG&E and SDG&E are also members of the OTF consortium. Results of these projects have been shared during scheduled monthly conference calls and will be available on the ETCC website. 3. Results The NBI OTF project was completed in 2010 and established the protocols to be followed for all OTF projects. This included instructions and helpful tools like a checklist to be utilized in all future projects. The Long Beach OTF project was also completed during DR test events were initiated on several days, targeting different load reduction percentages with each event. The majority of the DR test events met or exceeded the target load reduction percent. Although some inconsistencies were observed, the overall results showing load reduction from lighting adjustments during DR events were promising. The final report regarding the DR aspects of the project will be available on the ETCC website. 4. Next Steps The NBI and Long Beach OTF projects have been completed and these reports will be available on the ETCC website. SCE will continue to collaborate with NBI acting as the project management organization for OTF projects. Additional OTF projects are scheduled for completion next year and information about these projects can be found later in this report. 4

8 B. DR10.04 Title 20 & 24 Market Growth & Adoption Study This project provided additional information based on the results from two EM&T projects completed in The two previous studies determined the technical DR load reduction potential of many commercial and residential appliance categories assuming they were adopted into California building energy efficiency standards or appliance efficiency regulations: Integration of DR into Title 20 3 Integration of DR into Title 24 4 In following the EM&T approach to quantify the load reduction potential, the market size for the DR strategies and the estimated customer acceptance of specific DR strategies (market growth and adoption) study was completed this year. The study built upon the previously completed work and sought to determine the willingness of customers to enroll in DR programs and participate in DR events if Title 20 or Title 24 mandated DR capabilities in equipment and systems. These results were gathered through a survey of over 1,000 respondents from within SCE s service territory. 2. Results The Market Growth and Adoption Study surveyed residential customers in six different device categories and small to medium size commercial customers in four different devices or control systems. Participants were provided with a specific DR scenario pertaining to the type of equipment they have and then asked about their willingness to participate in DR programs utilizing the capabilities in their equipment. Although the results varied by scenario, the overall willingness of customers to participate in these types of DR programs was encouraging as shown in Figures 1 and Integration of Demand Response into Title 20 (Commercial and Residential): Integration of DR into Title 24 (Commercial and Residential): 5

9 Figure 1 Results from Residential Study Figure 2 Results from Small/Medium Commercial Study 3. Next Steps Several projects scheduled for 2011 (Smart Appliance testing, DR Pool Pump, Office of the Future) will provide laboratory and field testing of the equipment discussed in this research. 6

10 C. DR10.17 Commercial and Residential Demand Load Profiles To better understand the potential impacts of DSM measures on the building demand load profile and, ultimately, the power grid, a series of parametric building energy simulations were performed. These runs included various levels of EE, DR, distributed generation (DG), energy storage (ES) and plug-in electric vehicles (PEVs). 2. Collaboration This project was a collaboration project with SCE s CEES and BCD groups. 3. Results Two levels of DR were modeled. The two levels varied in schedule and duration, but were consistent in demand reduction strategy: a 15% reduction in lighting power and a 4 F increase in the cooling temperature setpoint. The first level was a 2-hour event, scheduled from 3-5 pm. The second level was a 4-hour event, scheduled from 2-6 pm. These schedules and durations were set to simulate current DR practices. The DR levels modeled were combined with different EE levels (25%, 40% and 70%) to create several demand load profiles. As similar measures were employed across different building types, vintages and climate zones, similar impacts to the load shape were expected. The results from these simulations make it clear that not only does the building type play a role in load shape, but so do the vintage of the building and climate zone. Employing the same measure in a coastal climate and in the hot inland empire does not result in the same variation in the load shape. Additionally, employing the same measure in an existing building, as in a new building, is likely to provide greater demand and energy savings. Neither of these results is particularly surprising, yet they provide an argument for a better understanding of where measures will be employed to maximize energy savings and potential grid benefits. 4. Next Steps The load profiles created will continue to be used in designing DR and energy efficiency programs. The results from this report will also be available on the ETTC website. 7

11 D. EPRI End-Use Energy Efficiency and Demand Response Program 170 EM&T contributed to the EPRI Program Demand Response Systems to assess and test the application of technological advances in smart end-use appliances and integrated energy management control systems - including smart thermostats, lighting controls, smart distribution panels and other technologies - to enable more sophisticated and effective demand response and dynamic energy management. EPRI also examined technological advances in permanent load shifting, namely thermal storage and its integration into demand response systems for load shaping and peak load management Collaboration EM&T along with CEES and BCD contributed to EPRI Program 170 which was also funded by other EPRI member utilities and organizations 3. Results EPRI is currently reviewing their final draft report presenting the 2010 Program 170 results. 4. Next Steps EM&T is contributing to EPRI s Program 170 for 2011 and is collaborating with other groups within SCE to better communicate SCE s evolving requirements to EPRI so that research initiatives can be planned to better align with industry needs. 5 Excerpt from draft version of EPRI End-Use Energy Efficiency and Demand Response EPRI Program 170: 2010 Summary of Deliverables 8

12 E. DR10.18 IHD Field Trial Phase 1 EM&T had budgeted funds for the 2010 In Home Display (IHD) field trial in partnership and collaboration with Edison SmartConnect. TM This project was referenced in SCE s Application for DR funding. 6 However, the additional funding from EM&T was not required. Because the total cost for the field trial was within the amount that Edison SmartConnect TM had budgeted, this report does not include the details and results from this field trial. 6 Southern California Edison Company Demand Response Program Portfolio, pp.93-94: DR SCE-1+Volume+2+-+Program+Portfolio.pdf 9

13 III. Projects initiated in 2010 A. DR10.02 Office of the Future GO2 & GO4 Like other OTF projects, the purpose of this project is to demonstrate the OTF 25% solution (25% better than Title 24) for typical office spaces. The scope of work for this project being conducted at SCE General Office (GO) facilities includes: Indirect/direct overhead lighting with low ambient light levels High-performance T8 lamps with electronic dimming ballasts LED task lighting with local occupancy sensor for each workstation Control system (Convia) with independent dimming control for each individual fixture. Control software to take advantage of the following lighting strategies: - Smart time scheduling - Daylight harvesting - Task tuning - Occupancy control - Personal control - Variable load shedding The control system is capable of providing dynamic, rule-based demand response strategies that can be triggered via: Manual input through the user interface Input received from a networked energy meter AutoDR signal (dry contact closure) 2. Collaboration PG&E and SDG&E are also members of the Office of the Future Consortium and results of these projects will be shared during scheduled monthly conference calls. 3. Status The energy efficiency work in GO4 has been completed with an estimated 30% energy savings. The DR testing in GO4 is scheduled for the summer of Work in GO2 has been delayed, but the equipment has been purchased and the project should be completed by the end of Next Steps Complete DR testing at GO4 and complete all tasks at GO2. 10

14 B. DR10.03 OpenADR Standards Development The Energy Independence and Security Act (EISA) of 2007, appointed the National Institute of Standards and Technology (NIST) with the "primary responsibility to coordinate development of a framework that includes protocols and model standards for information management to achieve interoperability of smart grid devices and systems " which resulted in the Smart Grid Interoperability Standards Project. NIST established Priority Action Plans (PAPs) to focus on a variety of the components to achieve Smart Grid Interoperability, including Standard Demand Response Signals through PAP 09. One of the two NIST recognized standards for inclusion in the Smart Grid Interoperability Standards Framework that are directly applicable for DR is Open Automated DR (Open ADR), which defines messages exchanged between utilities and commercial/industrial customers for price-responsive and direct load control over the Internet. While adopting an open standards approach for Smart Grid, advanced meter infrastructure (AMI), and DR has resulted in some delays in deployment due to the slow process of developing, finalizing and adopting standards, the end result will be a robust set of offerings for customers enabled by a variety of commercial devices rather than proprietary or California-only solutions for DR. There are many commercial products being developed by consumer electronics manufacturers whose business models are based on developing products to engage customers with meaningful information and intuitive user interfaces. These resulting products will be capable of providing customers with information about their energy usage and help customers respond to price or DR event signals and also empowers the marketplace to innovate and differentiate product offerings while targeting a variety of customer price points. The primary objective of this project is to drive an expedited development of the OpenADR standard for ratification by OASIS and incorporation as a released Smart Grid interoperability standard by NIST. 2. Collaboration In this project, SCE has collaborated with UCAIG s OpenSG OpenADR task force, OASIS, North America Energy Standards Board (NAESB), Smart Grid Interoperability (SGIP), consultants from Xtensible Solutions and the OpenADR Alliance. 3. Status Phase one of this project was completed in 2010 with the creation of the system requirements specifications and service definitions. These documents were then incorporated into the work completed by OASIS and released for public comment in November Phase two of this project will further enhance the capabilities of OpenADR by reviewing security and adding specifications for interaction with electric vehicle charging stations. 11

15 4. Next Steps Complete phase two of the project during 2011 and continue to drive the development of the OpenADR standard in OASIS and the OpenADR Alliance. 12

16 C. DR10.05 AutoDR PCT The purpose of this project is to demonstrate the capability of a Programmable Communicating Thermostat (PCT) using AutoDR through the OpenADR specification. This solution is intended for commercial customers without a building or energy management system (BMS/EMS). Many of these customers either have or will be defaulted to a Critical Peak Pricing (CPP) rate. The project goal is to offer a solution that provides some automated air conditioning load reduction for commercial and industrial customer s offices during CPP or other DR events by enabling temperature setbacks, without the expense of a full BMS/EMS. Assuming a positive outcome, an AutoDR PCT will be listed as a possible deemed enabling technology solution for commercial customers. 2. Status An OpenADR compatible PCT was identified during 2010 and procurement of the device was completed in early The AutoDR PCTs will be installed prior to the summer of 2011 enabling a field trial at several customer sites. The project will monitor DR performance during events or upon receipt of price signals during the summer of Next Steps Finalize selection of customer sites to participate in the field trial. Install PCT s at selected sites. Monitor PCT functionality during summer DR events. Prepare a final report on the results of the field trial. 13

17 D. DR10.06 PCT Language in Codes and Standards The purpose of this project is to evaluate potential code language for California Title 24 which would mandate PCTs to be installed in all new construction and HVAC retrofit projects that require a building permit. The PCTs would be able to receive price and DR event signals and adjust thermostat temperature set points based upon default factory settings or custom settings programmed by the customer. 2. Collaboration California IOUs (Pacific Gas and Electric [PG&E], San Diego Gas and Electric [SDG&E] and SCE) collaborated and proposed code language that would align with national Smart Grid standards currently being developed. Several phone calls and meetings were also held with the CEC in an effort to come to agreement on the language regarding PCTs that should be included in 2013 Title 24. SCE also hosted a meeting during the summer to engage suppliers and industry professionals and to discuss possible provisions for PCTs within Title 24 which further informed the IOUs recommendations to CEC. 3. Status Collaboration efforts are continuing to determine whether PCT language should be included in Title 24 and what the PCT requirements should include. Meetings with CEC staff and commissioners have been held during the first quarter of 2011 and SCE is encouraged by the progress being made. 4. Next Steps Continue meeting with the CEC in an effort to come to agreement on the proposed language for Title

18 E. DR10.07 One-Cycle Control M&V The purpose of this project is to provide Measurement and Verification (M&V) for a peak load reduction project utilizing battery storage technology from One-Cycle Control (OCC). OCC was awarded a PIER Emerging Technology Demonstration Grant (ETDG) for this project and contacted SCE for assistance because the proposed pilot sites are in SCE service territory. This project includes collaboration with SCE s Program Evaluation and Energy Conversions & Storage groups. The scope of work for this project includes: Ensure compliance with SCE Rules & Tariffs Inform vendor and customers of potential safety issues or code violations Provide OCC with the forms necessary to request interval meter data for the pilot sites Assist in developing the measures to track during the pilots Utilize the Energy Conversions & Storage group as technology experts with battery storage Validate the results of the pilots 2. Collaboration This is a collaboration project with OCC in support of the PIER ETDG program. SCE plays a strictly advisory role providing measurement and validation for a prototype product. 3. Status Several meetings have been held with OCC to gain a better understanding of their product plans and how best to provide M&V support. 4. Next Steps Continue to work with OCC to provide M&V support throughout product development. Observe initial product tests and provide additional support as needed. 15

19 F. DR10.08 DR Pool Pumps The purpose of this project is to perform laboratory and field tests of commercially available pool pumps and pool pump controllers that are designed to enable curtailment of pool pump loads in response to DR event signals or pricing signals. This is a follow up to prior studies that estimated the potential for residential pool pumps to act as a DR resource: Pool Pump Demand Response Potential 7 Integration of DR into Title 20 for Residential Pool Pumps 8 This project will include field trials of a pump with integrated DR capabilities as well as retrofit solutions that would add DR capabilities to existing pool pumps. 2. Status The research and planning stage of this project is nearing completion and detailed implementation plans have been created for field trials during Next Steps Complete field trial of integrated solution according to plans and determine retrofit solutions to be field tested. 7 8 Pool Pump Demand Response Potential: Integration of DR into Title 20 for Residential Pool Pumps - Phase 1: 16

20 G. DR Demand Response Research Center Several DR projects were initiated in partnership with the CEC PIER program s DRRC at Lawrence Berkeley National Laboratory. These projects include the following: a) DR Tools The purpose of this project is to improve the software tools available for estimating DR potential in commercial buildings. This project will be executed in collaboration with the DRRC. The other California IOUs may also collaborate on this project. The scope of work includes: (1) Task 1 - Scoping Study DRRC will review the literature on existing DR tools being used or under development and develop a framework to evaluate tools and categorize them for a variety of users. This will include a summary of metrics and building characterization parameters that allow facility managers to better understand their building s energy consumption. (2) Task 2 - Statewide DR Database A web-based database will be set up to collect and store information on facilities and their response to OpenADR signals. Database will include fields for collecting the building size and systems information, demand response control strategies, measured demand savings from AutoDR events. The information collected will be as follows: Building Information: address, type, building envelope, building layout, thermal mass, building size, etc.; Internal Information: number of occupancy, lighting power, plug and misc power, schedules of these internal loads, vertical transportation (elevator), etc.; HVAC System: system type, operating schedules, zone temperature set points during the cooling and heating seasons, capacity of plant, etc. AutoDR Field Test Information: Field tested control strategies, identify any problem during the test or DR period. DRRC will coordinate with the three IOUs to collect information on the existing customers and coordinate the data collection on the new customers. Initial data will be acquired from sites that have worked with DRRC in the past. For any new site that would like to be a part of this database, a central web-based survey will be developed to collect this information from the building facility managers as their buildings sign up on AutoDR programs. 17

21 b) Mainstreaming AutoDR The purpose of this project is to facilitate and accelerate the adoption of AutoDR both in new construction and in existing buildings. This project will be executed in collaboration with the DRRC. The other California IOUs may also collaborate on this project. The scope of work includes: (1) Task 1 - Developing education and training materials to targeted audiences by market sector DRRC will develop education and training materials for controls vendors, auditors, retrocommissioning agents, account executives, etc by commercial and industrial customer segments. DRRC will also develop case studies that will outline DR strategies and value streams from DR. (2) Task 2 - Assessment of controls system capabilities and engaging building controls companies DRRC will assemble a DR guideline that outlines minimum energy management and control system features and functionality for AutoDR and create an online database of companies with products that support AutoDR and comply with OpenADR specification DRRC will survey to major controls companies to collect information on legacy systems that can support AutoDR strategies and complying with OpenADR specifications, legacy systems that are not upgradable to support AutoDR strategies. The survey will include questions to understand the maintenance contracts between the customers and vendors and develop methods for long-term maintenance of AutoDR strategies. (3) Task 3 - Evaluation of load shape changes and shed attenuation Demand reductions vary with each event and sometimes demand reductions decrease over time. DRRC will go through a selected number of audits and estimations done by various engineering firms and compare performance of the buildings over time with the initial estimation in order to evaluate how demand reduction performance changes over time. c) Industrial DR As part of California Long-Term Energy Efficiency Strategic Plan (LTEESP), there are several activities either planned or underway to improve the ability of industry to better manage both peak and ongoing energy electrical use. One such activity is the Superior Energy Performance initiative put forward by the DOE and a number of other public and private sector partners to certify industrial facilities for energy efficiency. 9 A core element of this initiative is the adoption and use of an energy management standard, initially ANSI MSE 2000:2008, to be replaced by ISO in The purpose of this project is to understand the relationship between demand response as a driver for the

22 adoption of sophisticated controls in participating industrial facilities and the capacity of these facilities to implement the energy management standard. This project will be executed in collaboration with the DRRC. The other California IOUs may also collaborate on this project. The scope of work includes conducting a study at the industrial sites selected for the California Superior Energy Performance demonstration program examining the relationship between demand response (automated and manual), load management, controls capabilities and the level of success experienced by the industrial site in implementing the energy management standard. The results of this study will be developed into case studies and a final report. 2. Collaboration This project will be completed in partnership with DRRC. Other California IOUs are funding portions of the projects being undertaken. Final reports will be available on the ETCC web site. 3. Status The contracting process is nearing completion and detailed implementation plans are being developed. Projects are scheduled for completion in Next Steps Work with DRRC to monitor progress and make sure projects are completed according to scope and schedule. 19

23 H. DR10.16 Smart Appliances This project will perform laboratory testing of smart appliances from several manufacturers to quantify the DR potential for curtailing load during DR events or upon receipt of a pricing signal. These tests will be done in a controlled lab environment and will provide an opportunity to see first hand how smart appliances react to price and DR event signals. 2. Status Smart appliance manufacturers have been identified and at least three are interested in working with SCE to test their products in order to quantify the DR potential. Procurement activities to obtain the identified appliances are underway. 3. Next Steps Finalize trial use agreements with manufacturers, receive devices in lab and complete tests according to project plan. This project is scheduled for completion during

24 I. DR11.01 Ancillary Services Pumping Equipment The purpose of this project is to evaluate the potential of customers with pumping equipment to participate in an Ancillary Services DR program. The planning for this project took place in 2010 and included market research to determine customer willingness to participate in a program with short notification and short durations. The next step will be to perform field trials of equipment at a few locations during the summer of 2011 to determine feasibility of this type of program for this specific market segment. 2. Status Market research completed by Global Energy Partners recommended that SCE pursue an Ancillary Services DR program for pumping customers as a potential replacement or complementary program to the existing AP-I DR program that now has a MW cap as a result of transitioning AP-I to a CAISO Reliability Demand Response Program (RDRP) resource. Initial projections are that by 2014 approximately 6% of Agricultural and Pumping customers could be participating in an Ancillary Services program. Equipment and customer selection is underway for field trials planned for the summer of Next Steps Select the equipment to be used and the customer sites for the Ancillary Services field trials to be completed during the summer of

25 IV. Projects continued in 2010 A. DR09.08 Expanding Residential DR in the Irvine Smart Grid Demonstration (ISGD) project SCE has been exploring how to capitalize on the Edison SmartConnect TM metering and home area network deployment to further enable residential demand response in coordination with energy efficiency and distributed energy resources. To further this goal, EM&T provided some of the matching funds for the American Recovery & Reinvestment Act (ARRA) in SCE s proposal for the Irvine Smart Grid Demonstration (ISGD) project which was awarded by the DOE. 10 The ISGD project will demonstrate the potential EE and DR approaches to enable Zero Net Energy (ZNE) in step with California s LTEESP homes. Several groups of homes will receive different treatments including a ZNE group, a group utilizing Community Energy Storage and a group utilizing individual Residential Energy Storage Units (RESU). The two major areas of this project are the EM&T, the DR potential of residential Home Area Network (HAN) devices, and the Home Battery Pilot. 2. Collaboration This project is a collaborative effort with SCE s Transmission and Distribution Unit (TDBU) Advanced Technology Organization and BCD and D&ES. 3. Status The contract with DOE was signed in December of 2010 and plans are currently being finalized for the products and strategies to be included as part of the expanding residential DR portion of the ISGD project. The procurement process is also underway for both RESU units and HAN devices to be included as part of the field demonstration. 4. Next Steps The next immediate step is to finalize customer agreements with the home owners who will be participating in this project. Once an agreement is in place and the equipment selection is finalized SCE will work with the participating customers to install the initial devices for network testing utilizing ZigBee Smart Energy Profile (SEP) 1.0 in the summer of 2011 including PCTs, IHDs and EMSs. The 2012 scope will include upgrading to ZigBee SEP 2.0 and expanding the HAN devices to include the RESU and smart appliances. Once installed, usage data can be utilized to establish a baseline and tests will be conducted to demonstrate the DR capabilities contributing to ZNE. 10 Department of Energy Recovery Act State Memos: 22

26 B. DR09.02 Home Battery Pilot The primary objective of this project, which began in 2009, was to evaluate and test automotive grade advanced lithium-ion battery modules for use as a RESU. The goal is to evaluate the potential of using in-home batteries during DR events or localized distribution constraints to decrease customer impact, while still alleviating demand on the power grid. A more detailed explanation of this project can be found in Appendix K 11 of SCE s amended testimony DR application (A ). 2. Status LG Electronics was selected as the vendor to provide the RESU. A prototype device was received in December of 2010 and laboratory testing is underway. Functional testing will include the following: Grid-tied without PV solar Grid-tied with PV solar Back-up mode transition with and without solar PV Loss of solar PV in back-up mode Restoring solar PV in back-up mode Performance testing will include the following: Efficiency (AC - AC round trip): initial measurement is 79% Total harmonic distortion (THD) for current as a source and as a load THD for voltage in backup mode Switching time for backup transition 3. Next Steps Testing will continue with a UL certified and final production units expected later this year. Some RESU s will also be included in the ISGD project. Following the completion of prototype testing, the following milestones will be completed in 2011: Upgrade prototype unit to allow web control Receive fully compliant test unit Full RESU testing Delivery of UL listed/etl tested, production ready units 11 DR application (A ) Appendices A through M: DR+Amended+App_SCE-04++Appendices+A-M.pdf 23

27 C. DR09.09 Office of the Future Los Angeles The purpose of this project is to demonstrate the Office of the Future 25% Solution (25% better than Title 24) for typical office spaces. The scope of work for this project includes: Indirect/direct overhead lighting with low ambient light levels High-performance T8 lamps with electronic dimming ballasts LED task lighting with local occupancy sensor for each workstation Control system (Encelium) with independent dimming control for each individual luminaire. Control software to take advantage of the following lighting strategies: - Smart time scheduling - Daylight harvesting - Task tuning - Occupancy control - Personal control - Variable load shedding The control system is capable of providing dynamic, rules based demand response strategies that can be triggered via: Manual input through the user interface Input received from a networked energy meter AutoDR signal 2. Collaboration PG&E and SDG&E are also members of the Office of the Future Consortium and results of these projects will be shared during scheduled monthly conference calls. 3. Status During 2009, several OTF sites were identified and contacted regarding participation in the project. Initial audits of existing systems were conducted and project plans were created. One of the initial locations identified was the Federal Building in Los Angeles at Wilshire Blvd. Delays in getting a contract in place resulted in postponing the project completion to A contract is now in place and work is underway. 4. Next Steps Next steps for the OTF project to be completed during 2011 include collecting preretrofit power data, complete design and construction documentation, install and tune new lighting and control systems, collect post retrofit power data, train users to use lighting controls and test demand response capabilities of the new systems. A final report will be created and available on the ETCC website during the first quarter of

28 V. Budget Emerging Markets and Technology Recorded Expense and Remaining Funding ($) Line. No. Expense Type Committed Funds 2011 Remaining Funding Authorized Funding 1 Labor $407,869 $ 354,210 2 Non-Labor $481,401 $1,060,832 3 Total $889,270 $1,415,042 $4,197,391 $2,742,702 $9,244,405 The 2011 committed funds in the table above include contractually committed and budgeted funds for the following projects: DR09.02 Home Battery Pilot DR09.08 Expanding Residential DR in ISGD DR10.03 OpenADR Standards Development DR10.05 AutoDR PCT DR Demand Response Research Center Under Ordering Paragraph 16 of D , 12 SCE expects to file an advice letter in the second half of 2011 requesting authorization to carry over the unspent committed portion of the EM&T authorized funding from the funding cycle into the funding cycle. 12 D Ordering Paragraph 16. To continue beyond December 31, 2011, an Emerging Markets and Technology Project funded through the budgets adopted in this decision, Pacific Gas and Electric Company, Southern California Edison Company and San Diego Gas & Electric Company shall each request permission either through a Tier 2 advice letter describing specific projects and the reason for the project to continue beyond the end of the funding period, or by including a request to continue these projects in their next demand response funding application. 25