System Capacity Value Meeting

This meeting focuses on how to value DR from an electric generation resource perspective. The meeting will summarize the extant methodologies such as the TDV and the CPUC avoided costs methodologies. Those methods are focused on the value of measures that can reduce energy usage over a large number of hours in a typical year. DR, however, offers its greatest potential value in atypical years. Therefore methods need to be developed to produce these atypical values. The meeting will discuss methods for determining generation values under stress case scenarios, and defining those scenarios such as low hydroelectric resources and high natural gas prices. The meeting will also focus on determining methods for adjusting the generation shapes currently used in the TDV and CPUC methods to better reflect the peak value of energy during capacity constrained periods. Note that while the focus is on capacity, generation energy costs and environmental costs will be addressed as well in this meeting. focused on the technologies that are applicable to buildings and could provide value as a demand response (DR) technology. The meeting will explore the characteristics that make a technology a DR resource (electric load reduction at the time of system or local capacity needs, dispatchability does not have to provide substantial annual energy reductions) as well as the characteristics that would affect the value of that technology (predictability of impacts; level of customer participation needed to attain reductions; persistence of reductions; limitations on duration, frequency and cumulative operations; and degradation of reductions during periods of need). The meeting will also delve deep into issues related to specification, implementation costs, production levels, and rollout requirements of programmable controllable thermostats (PCTs) as well as similar issues related to other possible DR technologies.
Supporting Information
Time Dependent Valuation
Time dependent valuation (TDV) weighs the value of energy based on the time that energy is used.TDV varies the value of energy each hour to reflect the flux in the cost of generating and distributing electric power. TDV is similar to real time pricing where the cost of power varies each hour. Like Time of Use (TOU) rates, the TDV method places greater value on week day energy use, and less value on energy used on weekends. But unlike TOU rates, TDV varies from one day to another depending upon the high temperature. The hotter the daytime high, especially on week days when the demand for electric power is great, the higher the TDV of power.