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ID:
162285
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| Summary/Abstract |
Recent broad-based deployment of Advanced Metering Infrastructure (AMI) enables the opportunity for broader adoption of time-based rates, and the benefits that result have been sizable contributors to making the investments cost effective. However, some stakeholders have raised concerns about the assumptions underlying the benefits assessments in AMI business cases. Such concerns are especially acute for certain subpopulations of residential customers. Low income, elderly and chronically ill (i.e., vulnerable) customers are believed to have less load that can be shifted or reduced to capture bill savings, lack the know-how or wherewithal with which to curtail usage, likely have more limited financial resources which may compel them to avoid high priced periods by reducing electricity for essential usage potentially causing them physical harm, and more generally may be more adversely affected by higher bills, which might possibly result from certain forms of time-based rates. There is very limited existing literature that addresses these questions specifically with regard to vulnerable subpopulations. This paper, based on a larger report, extends the existing empirical literature on the experiences of low-income customers exposed to critical peak pricing, and provides the first glimpses into the experiences of the elderly and those who reported being chronically ill.
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| 2 |
ID:
180165
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| Summary/Abstract |
A fundamental policy question for distributed energy resources (DER) is whether they create system benefits shared by all utility customers in addition to being profitable for the installing customer. This question has received considerable attention in “value of DER” and net metering reform proceedings for behind-the-meter solar photovoltaics in recent years. Commercial customer-sited lithium-ion batteries with a primary use case of demand charge management are forecast to greatly increase in the coming decade due to falling storage costs, making comparison of their customer and system benefits a timely topic in DER valuation. We conduct an overview of the system benefits of standalone commercial customer-sited storage on United States’ electric tariffs and find system benefits will not be realized for many standalone commercial customer-sited storage installations in the absence of incentives for storage dispatch during the top 50–100 annual hours that drive grid infrastructure investment. Regulatory implementation of default peak pricing during a small subset of annual hours for customer-sited storage can realize additional system benefits and offer Pareto improvement. Additional transparency in regulatory estimates of these system benefits helps catalyze longer-term visions for increased competition at the retail level using DERs.
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| 3 |
ID:
150365
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| Summary/Abstract |
To the extent that demand response represents an intentional electricity usage adjustment to price changes or incentive payments, consumers who exhibit more-variable load patterns on normal days may be capable of altering their loads more significantly in response to dynamic pricing plans. This study investigates the variation in the pre-enrollment load patterns of Korean commercial and industrial electricity customers and their impact on event-day loads during a critical peak pricing experiment in the winter of 2013. Contrary to conventional approaches to profiling electricity loads, this study proposes a new clustering technique based on variability indices that collectively represent the potential demand–response resource that these customers would supply. Our analysis reveals that variability in pre-enrollment load patterns does indeed have great predictive power for estimating their impact on demand–response loads. Customers in relatively low-variability clusters provided limited or no response, whereas customers in relatively high-variability clusters consistently presented large load impacts, accounting for most of the program-level peak reductions. This study suggests that dynamic pricing programs themselves may not offer adequate motivation for meaningful adjustments in load patterns, particularly for customers in low-variability clusters.
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