GoodCents Select – The 21 Century Residential Energy Management Program

Slide 1
GoodCents Select – The 21 st Century
Residential Energy Management
Program
Brian White
Gulf Power Company
Pensacola, Florida
May 2, 2003

Slide 2
GoodCents Select – Program Development
The Critical Peak Pricing Notion
– Four Interdependent Components
1. A time-varying rate design with a
near real-time pricing component,
2. An in-home, customer-
programmed, automated energy
management (AEM) system,
3. A way to rapidly communicate rate
changes, critical peak conditions,
and other messages to program
participants, and
4. A means of recording and retrieving
the requisite billing determinants.

Slide 3
GoodCents ® SELECT
Residential Service Variable Pricing (Rate Schedule
RSVP)
•Standard Residential Customer Charge applies: $10.00 per month
•RSVP Participation Charge: $4.95 per month
•Prices per kWh (includes energy charge, fuel, ECCR, PPCC, and ECRC)
Low 4.2 cents/kWh
Medium 5.4 cents/kWh
High 10.0 cents/kWh
Critical 30.9 cents/kWh
Standard Residential Rate: 6.3 cents/kWh

Slide 4
GoodCents Select – Program Development
Metering
Communications
A Rate Design
Customer Control
– The “full cost” of responding to
price changes is much more
than the price difference.
Customers must act in order to
respond.
These actions require time and
effort.
– Lowering the incremental
“cost” of responding should
increase the amount of price
response.
– An in-home, customer-
programmed, automated
energy management system
lowers this “cost” that
customers must bear.

Slide 5
GoodCents Select – Program Development
– Rate changes and critical
supply conditions must
be communicated to
consumers if we expect
them or their systems to
invoke the pre-selected,
pre-programmed
programmed
responses.

Slide 6
GoodCents Select – Program Development
– Customer’s energy consumption
must be tracked and measured.
The meter must know what
price or rate is in force at all
times so that it can accurately
“bucket” the energy used.
A near real-time pricing
component implies that both
the customer’s energy
management system and the
customer’s meter will need to
know about it.

Slide 7
Major Components
SuperStat
Communications Gateway
RSVP Rate

Slide 8
PriceStat for 2003

Slide 9
GoodCents Select
Gulf Power’s Three Research
Questions
1. Could AEM reduce the need for
generation?
2. Would AEM enable existing capacity to
be better used?
3. Would AEM provide customers with
value?

Slide 10
GoodCents ® SELECT
1/4/02 Critical time 9:00 AM to 10:00 AM
kW
6
5
4
3
2
1
0
1 6 11 16 21
Time
Test Group
Control Group
Preliminary

Slide 11
GoodCents ® SELECT
1/8/02 Critical time 6:00 AM to 7:00 AM
kW
6
5
4
3
2
1
0
1 6 11 16 21
Time
Control Group
Preliminary

Slide 12
GoodCents ® SELECT
1/2/02 No Critical
kW
5.0
4.0
3.0
2.0
1.0
0.0
1 5 9 13 17 21
Time
Preliminary

Slide 13
GoodCents ® SELECT
7/17/02 Critical time 4:00 PM to 5:00 PM
5
4
kW
3
2
1
Test Group
Control Group
0
1 6 1 1 16 2 1
Time
Preliminary

Slide 14
GoodCents ® SELECT
7/18/02 Critical tim e 2:00 PM to 4:00 PM
6
5
kW
4
3
2
1
Test G roup
C ontrol Group
0
1 6 1 1 1 6 2 1
Time
Preliminary

Slide 15
GoodCents ® SELECT
7/16/02 No Critical
kW
5
4.5
4
3.5
3
2.5
2
1.5
1
0.5
0
1 5 9 1 3 1 7 2 1
Time
Preliminary

Slide 16
Price Response results from Gulf Power’s
Residential Variable Pricing Rate
Case study of January 24, 2003 peak load day.
Minimum temperature on January 24th was 18 degrees F. Minimum
temperature forecast on Gulf’s winter peak day is 27 degrees F.
Gulf Power called a Critical (sent a Critical Price signal to its Good
Cents Select customers) on January 24th between the hours of 7a.m.
and 9a.m.
Number of residences receiving the Critical Price signal on Jan 24
(via RF paging signals) = 2,744
Winter demand reduction per residence at the generator
(accounting for losses) = 3.74kW
Total demand reduction on Jan 24th = 2744 * 3.74 = 10.3mW

Slide 17
Price Response results from Gulf Power’s
Residential Variable Pricing Rate
Gulf system Total Territorial Supply (TS) on January 24, 2003 and
price tier in effect:
TS
Price
between 5 a.m. and 6 a.m. 2309 mW medium
between 6 a.m. and 7 a.m. 2500 mW high
between 7 a.m. and 8 a.m. 2497 mW Critical
between 8 a.m. and 9 a.m. 2414 mW Critical
between 9 a.m. and 10 a.m. 2293 mW high
Note two conclusions:
1 st • the peak occurred between 6a.m. and 7a.m. If not for the RSVP rate and Good
Cents Select, the peak would have occurred between 7a.m. and 8a.m. That is the peak
hour was shifted.
2 nd • the magnitude of the peak (2500mW) was 7mW less than it otherwise would
have been without the variable pricing rate. That is, in the absence of the RSVP rate
and Good Cents Select equipment, the peak would have been 2497mW + 10.3mW =
2507mW.

Slide 18
GoodCents Select – Questions Answered
AEM will provide customers with value.
•Greater Control
•Better Information
•Bill Savings
“A significantly high percentage of
participant customers are very
satisfied. . .”
Value of Saved Energy (1,433 kWh) = $100
Rate Savings due to Timing of Consumption = $87
Total Annual Savings = $187
Average Annual Bill w/o AEM = $1254
Average Annual Bill with AEM = $1067
Percentage Bill Savings = 14.9%

Slide 19
GoodCents Select – Questions Answered
AEM provides other benefits too.
– Customer Choice Not Utility Control
Enhances Customer Satisfaction
Reduces Policing Requirements vs. Direct Load
Control
Produces Reliable Peak Demand Reductions
– Requires No Utility Paid Incentive
Customers Save by Acting and Reacting
Customers Unwilling to Change Will Not Participate
– AEM is Equitable
Heaviest Electricity Users are the Target Market
Capacity Savings Benefit All Users
– Customers Prefer AEM
Focus Groups Results Prove

Slide 20
GoodCents Select – Program Economics
Subscribing customers will pay to
participate!
– Customers Choose Responses
Respond Respond to both price & lifestyle
– Programmed Responses - Automatic
– Override => Customer Control
– Customers connected for value-added
added
services
– Bill Savings Potential
Customer-controlled savings

Slide 21
GoodCents Select – Program Economics
Significant Real-Time Demand Reduction!
– Over 2 kW per subscriber per critical event
– ≈ 100 event-hours per year is O.K.
Event Event durations of 1 to 3 hours
– These demand responses are exactly like
quickly dispatchable capacity
CTs or Hour-Ahead Spot Market Purchases
80 MW of available critical peak demand response
will displace the need for an 80 MW bank of CTs or
the need for 80 MW of hour ahead capacity
purchases
– What is your avoided cost of peaking
capacity?

Slide 22
GoodCents Select – Program Economics
Load reshaping can be profit preserving
– Moving consumption from higher to
lower priced periods reduces revenues
and reduces costs but profits can be
preserved
Program facilitates the promotion of the
most economically efficient electric
end-use loads and technologies
– Off peak end-uses of electricity become
relatively more economic – sales can
increase

Slide 23
GoodCents Select – Program Economics
Utility’s Viewpoint
– If the present value of the
subscriber revenue plus the
present value of the avoided
capacity requirements exceed the
present value of all program
costs, the utility should offer the
program.

Slide 24
GoodCents Select – Program Economics
Participant’s Viewpoint
– If the aggregated benefits a prospective
participant expects to receive from GoodCents
Select exceeds her out-of
of-pocket costs to
participate, she’ll subscribe.
Opportunities for bill savings
Enhanced sense of control over electricity & home
Enhanced sense of contributing to reliable power
supply
Enhanced sense of contributing to a better
environment
The net benefits of the available value added services
through GoodCents Select

Slide 25
GoodCents ® SELECT
The Primary Motivators

Slide 26
GoodCents ® SELECT

Slide 27
GoodCents ® SELECT
Questions or Additional Information
Contact:
Brian White
(850) 444-6438
BLWHITE@southernco.com
Gulf Power
One Energy Place
Pensacola, FL 32520-0231