Dynamic Energy Pricing Pilots

Transcription

1 Dynamic Energy Pricing Pilts Sahar Mishriki April 2017

2 Ontari Electricity Market Backgrund NDP Gv. initiates Ontari Hydr restructuring - Electricity rates frzen 1995 McDnald cmmittee recmmended market based utility 1998 T Market Design Cmmittee - Bill 35 fr restructuring electricity sectr 2000 T 2002 Electricity market pening, clsing/rate freeze Cal phase-ut annunced, remve rate freeze ( cnsumers must pay the real price fr electricity ) The Green Energy Act March 2017 The Fair Hydr Plan - Severing link between csts and rates

3 Cntext Time f Use pricing has been implemented acrss all residential and small business custmers in Ontari since T date, Ontari has nt experienced the amunt f lad shifting initially expected ( 59 MW vs. 308 MW f peak demand savings in 2014). 1,2 The difference between Ontari s n-peak and ff-peak rates has increased ver the years, but still des nt prvide enugh financial incentive t mtivate many custmers t shift usage. YEAR On-Peak ( /kwh) Mid-Peak ( /kwh) Off-Peak ( /kwh) 1: LDC-OPA Prvince-wide Prgrams: Prtfli Rll-up Frecast 1 Presentatin t EDA CDM Caucus. April 27, : IESO Cnservatin Results Reprt On/Off Peak Price Differential ( /kwh) Table 1: Variatins in Time-f-Use Rates ( )

4 Custmer Perceptins Overall, electricity rates have been steadily rising and custmers are lking t the utility t ffer ways t lwer their bill including the ability t chse a rate plan that suits their lifestyle. In 2015, Hydr One partnered with leading energy ecnmics experts at McMaster University t test hw residential custmers wuld respnd t a variety f alternative rate structures and enabling technlgies. Pre-pilt surveys (2015) shw that custmers are lking fr ptins and cntrl ver their electricity charges. Overall, hw satisfied r dissatisfied are yu with the pricing f electricity? Hw imprtant is it t yur satisfactin with electricity t have different pricing plans available amng which yu can chse?

5 Pricing Pilts Hydr One has launched 2 phases f the Pricing Pilts. Phase 1 (Dynamic Pricing with IHD) 1,100 custmers Launched Summer 2015 Infrmatin Technlgies: IHD & Pltwatt Energy Disaggregatin Prtal Final Reprt: Spring 2017 Summer % Cmplete Spring 2017 Phase 2 (Same as Phase 1 + Smart Thermstat) 350 Custmers Launched Winter 2016 Infrmatin/Enabling Technlgies: IHD, Pltwatt & Energate Wi-Fi Cnnected Thermstat Final Reprt: Fall 2017 Winter % Cmplete Fall 2017

6 Participant Map Pilt participants are spread acrss western, central and eastern Ontari in Hydr One s service territry

7 Pilt Rates Assess cnsumer appetite fr 4 alternative rate structures: Time f Use (TOU) 6 rates 2 and 3 bucket TOU rates Price differential far greater than prvincial TOU rate Critical Peak Pricing (CPP) - 1 rate: Lw all-in ff-peak rate (15 /kwh) and critical peak rate (~48 /kwh) Custmer receives ntice when CPP rate t be activated (max f times per year fr 4 hur weekday afternn perid) Variable Peak Pricing (VPP) - 3 rates: Lw all-in ff-peak rate (15 /kwh) and variable peak rate that can vary with system peak lad (i.e., /kwh) Preset maximum number f days (10-25) per year that each peak rate can be applied t Real Time Pricing (RPP) 2 rates: Rate changes in 4 hur blcks based n real-time Hurly Ontari Energy Price (HOEP)

8 Ntificatins Sme f the rate treatment grups (CPP, VPP, RTP) require prviding custmers with a ntificatin t infrm them when Critical r Real-Time prices will apply. 1 CPP Grup: 10 critical days per year. ntificatin sent at 4 PM the day befre. 3 VPP Grups: 2 f the VPP rates will have 20 Critical/Super Critical days per year. ntificatin sent at 4 PM the day befre. 1 f the VPP rates will have 35 Critical/Super Critical days per year. Critical day ntificatin sent by 7 AM the day f. 2 RTP Grups: Max f 10 days per year when RTP prices will be a High Price Day and prices may range between 10.6 /kwh t 85 /kwh. 1 grup will receive ntificatin f a High Price Day by 4 PM the day befre, while the ther grup will receive ntificatin by 7 AM the day f.

9 DEP Rate Details - TOU AM PM Grup Time Perid Fixed Charge Current TOU Prices - Prices Belw are fr R1 Custmers. UR prices are ~88% and R2 prices are ~113% as shwn belw Summer Weekday 12.9 /kwh 17.4 /kwh 22.2 /kwh 17.4 /kwh $ Current TOU Summer Weekend 12.9 /kwh $ Winter Weekday 12.9 /kwh 22.2 /kwh 17.4 /kwh 22.2 /kwh $ Winter Weekend 12.9 /kwh $ TOU Prices - Prices Belw are fr R1 Custmers. UR prices are ~88% and R2 prices are ~113% as shwn belw TOU 1 Summer Weekday 9.2 /kwh 54.5 /kwh $ R1 Summer Weekend 9.2 /kwh $ Winter Weekday 9.2 /kwh 54.5 /kwh $ Winter Weekend 9.2 /kwh $ TOU 2 Summer Weekday 11.8 /kwh 54.5 /kwh $ - R1 Summer Weekend 11.8 /kwh $ - Winter Weekday 11.8 /kwh 54.5 /kwh $ - Winter Weekend 11.8 /kwh $ - TOU 3 Summer Weekday 6.6 /kwh 54.5 /kwh $ R1 Summer Weekend 6.6 /kwh $ Winter Weekday 6.6 /kwh 54.5 /kwh $ Winter Weekend 6.6 /kwh $ TOU 4 Summer Weekday 3.9 /kwh 28.8 /kwh 54.5 /kwh 28.8 /kwh $ R1 Summer Weekend 3.9 /kwh $ Winter Weekday 3.9 /kwh 54.5 /kwh 28.8 /kwh 54.5 /kwh $ Winter Weekend 3.9 /kwh $ TOU 5 Summer Weekday 5.0 /kwh 28.8 /kwh 54.5 /kwh 28.8 /kwh $ - R1 Summer Weekend 5.0 /kwh $ - Winter Weekday 5.0 /kwh 54.5 /kwh 28.8 /kwh 54.5 /kwh $ - Winter Weekend 5.0 /kwh $ - TOU 6 Summer Weekday 3.3 /kwh 28.8 /kwh 37.2 /kwh 28.8 /kwh $ R1 Summer Weekend 3.3 /kwh $ Winter Weekday 3.3 /kwh 37.2 /kwh 28.8 /kwh 37.2 /kwh $ Winter Weekend 3.3 /kwh $ 39.80

10 DEP Rate Details CPP/VPP/RTP AM PM Grup Time Perid Fixed Charge Critical Peak Pricing (CPP) Prices - Prices Belw are fr R1 Custmers. UR prices are ~88% and R2 prices are ~113% as shwn belw CPP 7 Summer Weekday 15.5 /kwh 20.9 /kwh $ R1 Summer Weekend 15.5 /kwh $ Max 10 Winter Weekday 15.5 /kwh 20.9 /kwh $ days Winter Weekend 15.5 /kwh $ Critical Summer Critical Day 15.5 /kwh 48.0 /kwh $ Variable Peak Pricing (VPP) Prices - Prices Belw are fr R1 Custmers. UR prices are ~88% and R2 prices are ~113% as shwn belw VPP 8 Summer Weekday 15.0 /kwh 18.8 /kwh $ R1 Summer Weekend 15.0 /kwh $ Max 15 Winter Weekday 15.0 /kwh 18.8 /kwh $ days Critical, Winter Weekend 15.0 /kwh $ days Summer Critical Day 15.0 /kwh 60.7 /kwh $ Critical+ Summer Critical+ Day 15.0 /kwh 81.6/kWh $ VPP 9 Summer Weekday 15.0 /kwh 18.9 /kwh $ R1 Summer Weekend 15.0 /kwh $ Max 15 days Winter Weekday 15.0 /kwh 18.9 /kwh $ Critical, Winter Weekend 15.0 /kwh $ days Summer Critical Day 15.0 /kwh 48.2 /kwh $ Critical+ Summer Critical+ Day 15.0 /kwh 65.0/kWh $ VPP 10 Summer Weekday 15.0 /kwh 18.9 /kwh $ R1 Summer Weekend 15.0 /kwh $ Max 25 days Winter Weekday 15.0 /kwh 18.9 /kwh $ Critical, Winter Weekend 15.0 /kwh $ days Summer Critical Day 15.0 /kwh 48.2 /kwh $ Critical+ Summer Critical+ Day 15.0 /kwh 65.0/kWh $ Real Time Pricing (RTP) Prices -RTP 1 will receive same day ntificatin, RTP 2 will receive day ahead ntificatin RTP 11 Summer Lw Price Day /kwh $ - 90% lw price, Summer High Price Day /kwh $ - 10% high price Winter All Days 23.7 /kwh $ - RTP 12 Summer Lw Price Day /kwh $ - 90% lw price, Summer High Price Day /kwh $ - 10% high price Winter All Days 23.7 /kwh $ -

11 Energate Thermstat Smart thermstat: Advanced user interface Lad management & bill savings pprtunities Saves energy by adjusting temperature setpint based n current price and user selected cnservatin settings Mbile app: Custmers have 5 ptins t adjust thermstat settings frm Maximum Cmfrt t Maximum Savings.

12 Achievable Ptential Dynamic Pricing plus smart technlgy = maximum savings Enabling technlgy dubles savings T maximize savings 5-10x ff-peak t n-peak price rati is needed Final results frm Phase 2 (with Energate Thermstat) expected in Fall 2017

13 Preliminary Pilt Results Overall Pilt Results Suggest that: Abut 92% f participants remained n pilts since signing up; first participants retained fr 21 mnths Custmers with web prtals: mst ppular times f visits are n Mndays & Tuesdays; mst cmmn views related t general hme usage infrmatin, fllwed by tracking electricity cnsumptin by appliance Average bill savings is apprximately 7%; average mnthly is apprximately $11.00 Excluding cntrl grup, prjects have invlved 13,700,000 kwh where 9,478,000 kwh have resulted in lwer bills and 4,264,000 kwh in higher bills

14 Midpint Results by Rate Treatment Preliminary results are available fr the first 6 mnths (Aug-15 t Jan-16 and Jun-16 t Dec-16 respectively) f bth Phase 1 and 2 participatin. With 1 exceptin, TOU rates have prvided the mst bill savings fllwed by RTP, VPP and CPP. Still waiting fr full year final results which will accunt fr seasnality bias in rates, weather nrmalized cmparisn with cntrl grup and custmer survey feedback. Median Midpint Savings ($) TOU 1 TOU 2 TOU 3 TOU 4 TOU 5 TOU 6 CPP 7 VPP 8 VPP 9 VPP 10 RTP 11 RTP 12 Rate Treatment

15 Next Steps HONI is currently planning a new pilt fr late 2017 that will fcus n: Preferred Rates: 4 dynamic rates with prven bill savings, custmer satisfactin and system benefits plus ne flat rate Custmer Chice: Allw custmers t chse frm a menu f rate ffering Remve guaranteed rate prtectin; intrduce insurance Technlgies: IHD, Data Disaggregatin, Thermstats, Thermal Energy Strage (TES)

16 Thank yu! Questins?