Enhancing Price Response Programs through Auto-DR: California’s 2007 Implementation Experience

This paper describes automated demand response (Auto-DR) activities, an innovative effort in California to ensure that DR programs produce effective and sustainable impacts. Through the application of automation and communication technologies coupled with well-designed incentives and DR programs such as Critical Peak Pricing (CPP) and Demand Bidding (DBP), Auto-DR is opening up the opportunity for many different types of buildings to effectively participate in DR programs. We present the results of Auto-DR implementation efforts by the three California investor-owned utilities for the Summer of 2007. The presentation emphasizes Pacific Gas and Electric Company's (PG&E) Auto-DR efforts, which represents the largest in the state. PG&E's goal was to recruit, install, test and operate 15 megawatts of Auto-DR system capability. We describe the unique delivery approaches, including optimizing the utility incentive structures designed to foster an Auto-DR service provider community. We also show how PG&E's Critical Peak Pricing (CPP) and Demand Bidding (DBP) options were called and executed under the automation platform. Finally, we show the results of the Auto-DR systems installed and operational during 2007, which surpassed PG&E's Auto-DR goals. Auto-DR is being implemented by a multi-disciplinary team including the California Investor Owned Utilities (IOUs), energy consultants, energy management control system vendors, the Lawrence Berkeley National Laboratory (LBNL), and the California Energy Commission (CEC).