NIchols Presentation
Demand Response Angela Nichols April 20, 2016 Proprietary © OGE Energy Corp. 2016 All Rights Reserved
Guiding Principles • Demand Response results obtained through customer empowerment • OG&E will not directly control customer equipment or appliances • Customers are provided time-differentiated pricing & choose their balance between cost & comfort • Pricing (rates) reflect true costs minimizing any subsidies within or across customer rate classes • All customer participation will be voluntary • Enabling technology provided to customers at no cost • Customers encouraged to remain on the program by creating a no-lose proposition for the first year
2 Proprietary © OGE Energy Corp. 2016 All Rights Reserved
SmartHours Price Structure
3 Proprietary © OGE Energy Corp. 2016 All Rights Reserved
myOGEpower.com
®
4 Proprietary © OGE Energy Corp. 2016 All Rights Reserved
SmartHours Timeline
2010-2011
2012 Pilot
2013
2014
2015
2016
•6,000 Customer Study •Rate and Technology Impact Analysis •Customer Acceptance
•43,000 new Enrollments •SmartHours VPP focus •Implement advanced segmentation
•47,000 new Enrollments •Enrollment open to all customers
•44,000 new Enrollments •Integrate energy efficiency
•26,000 new Enrollments •15% Churn •2% opt out
•Maintain 120,000 customers •Maintain 147 MW •Process improvements
5 Proprietary © OGE Energy Corp. 2016 All Rights Reserved
Marketing Materials
6 Proprietary © OGE Energy Corp. 2016 All Rights Reserved
SmartHours Rate Only 2014 Monthly Average Load Shapes for VPP Customers 4
Evidence of “snapback”?
3.5
3
kWh
2.5
June
2
July August September
1.5
1
0.5
Peak Period
Event hour “notch”
0 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
Hour Ending
7 Proprietary © OGE Energy Corp. 2016 All Rights Reserved
SmartHours with SmartTemp™ Programmable Communicating Thermostat (PCT) 2014 Monthly Average Load Shapes for VPP Plus Customers
Evidence of “snapback”?
4.5
4
3.5
3
2.5
kWh
June July 2
August September
1.5
Peak Period
1
Event hour “notch”
0.5
0 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
Hour Ending
8 Proprietary © OGE Energy Corp. 2016 All Rights Reserved
Load Shapes – All Customers Weighted by proportion of customers in SmartHours – rate only & with PCT 2014 Monthly Weighted Average Load Shapes, All Customers 4.5
Evidence of “snapback”?
4
3.5
3
2.5
kWh
June
July 2
August September
1.5
1
Peak Period
Event hour “notch”
0.5
0 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
Hour Ending
9 Proprietary © OGE Energy Corp. 2016 All Rights Reserved
Delaying the Decay Calling a price overcall on top of a peak-period may provide more reduction at time of peak (5pm) relative to calling a top-tier pricing. 5
3 Hr OverCall
4.5
4
3.5
kW
3
2.5
2
1.5
1
Peak Period 0.5
0 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
Hour Avg VPP customer w/ OG&E PCT, Overcall Days
10 Proprietary © OGE Energy Corp. 2016 All Rights Reserved
Results for Customers
®
Residential SmartHours
Average Savings $152.75
% who saved 99%
Commercial SmartHours
$349.70
93%
Customers who used SmartTemp™ Thermostat saved 34% more than customers without the thermostat (2015 Customer Savings – Oklahoma) 11 Proprietary © OGE Energy Corp. 2016 All Rights Reserved
What We’ve Learned • Customers will respond to time-varying rates • Customer response is predictable • Enabling technology and savings create sustainability and boost responsiveness • Primary customer driver is savings; technology only matters if it facilitates customer savings • Automation is key to sustainability: “set it and forget it” • Pricing is critical to success • Must have fairly significant differential between on-peak and off-peak prices to create demand shifting • Communicating daily prices creates awareness and focus • Choice matters • Customers value having a choice in participating
12 Proprietary © OGE Energy Corp. 2016 All Rights Reserved
What’s Next at OG&E • • • • •
System and process improvements Continue to target high-propensity/high-value customers Maintain churn (customers and MW) Exploration and introduction of upgrade and premium offers: Exploration of relationship between electric vehicles and timevariant pricing
13 Proprietary © OGE Energy Corp. 2016 All Rights Reserved
Thanks!
14 Proprietary © OGE Energy Corp. 2016 All Rights Reserved
Guiding Principles • Demand Response results obtained through customer empowerment • OG&E will not directly control customer equipment or appliances • Customers are provided time-differentiated pricing & choose their balance between cost & comfort • Pricing (rates) reflect true costs minimizing any subsidies within or across customer rate classes • All customer participation will be voluntary • Enabling technology provided to customers at no cost • Customers encouraged to remain on the program by creating a no-lose proposition for the first year
2 Proprietary © OGE Energy Corp. 2016 All Rights Reserved
SmartHours Price Structure
3 Proprietary © OGE Energy Corp. 2016 All Rights Reserved
myOGEpower.com
®
4 Proprietary © OGE Energy Corp. 2016 All Rights Reserved
SmartHours Timeline
2010-2011
2012 Pilot
2013
2014
2015
2016
•6,000 Customer Study •Rate and Technology Impact Analysis •Customer Acceptance
•43,000 new Enrollments •SmartHours VPP focus •Implement advanced segmentation
•47,000 new Enrollments •Enrollment open to all customers
•44,000 new Enrollments •Integrate energy efficiency
•26,000 new Enrollments •15% Churn •2% opt out
•Maintain 120,000 customers •Maintain 147 MW •Process improvements
5 Proprietary © OGE Energy Corp. 2016 All Rights Reserved
Marketing Materials
6 Proprietary © OGE Energy Corp. 2016 All Rights Reserved
SmartHours Rate Only 2014 Monthly Average Load Shapes for VPP Customers 4
Evidence of “snapback”?
3.5
3
kWh
2.5
June
2
July August September
1.5
1
0.5
Peak Period
Event hour “notch”
0 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
Hour Ending
7 Proprietary © OGE Energy Corp. 2016 All Rights Reserved
SmartHours with SmartTemp™ Programmable Communicating Thermostat (PCT) 2014 Monthly Average Load Shapes for VPP Plus Customers
Evidence of “snapback”?
4.5
4
3.5
3
2.5
kWh
June July 2
August September
1.5
Peak Period
1
Event hour “notch”
0.5
0 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
Hour Ending
8 Proprietary © OGE Energy Corp. 2016 All Rights Reserved
Load Shapes – All Customers Weighted by proportion of customers in SmartHours – rate only & with PCT 2014 Monthly Weighted Average Load Shapes, All Customers 4.5
Evidence of “snapback”?
4
3.5
3
2.5
kWh
June
July 2
August September
1.5
1
Peak Period
Event hour “notch”
0.5
0 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
Hour Ending
9 Proprietary © OGE Energy Corp. 2016 All Rights Reserved
Delaying the Decay Calling a price overcall on top of a peak-period may provide more reduction at time of peak (5pm) relative to calling a top-tier pricing. 5
3 Hr OverCall
4.5
4
3.5
kW
3
2.5
2
1.5
1
Peak Period 0.5
0 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
Hour Avg VPP customer w/ OG&E PCT, Overcall Days
10 Proprietary © OGE Energy Corp. 2016 All Rights Reserved
Results for Customers
®
Residential SmartHours
Average Savings $152.75
% who saved 99%
Commercial SmartHours
$349.70
93%
Customers who used SmartTemp™ Thermostat saved 34% more than customers without the thermostat (2015 Customer Savings – Oklahoma) 11 Proprietary © OGE Energy Corp. 2016 All Rights Reserved
What We’ve Learned • Customers will respond to time-varying rates • Customer response is predictable • Enabling technology and savings create sustainability and boost responsiveness • Primary customer driver is savings; technology only matters if it facilitates customer savings • Automation is key to sustainability: “set it and forget it” • Pricing is critical to success • Must have fairly significant differential between on-peak and off-peak prices to create demand shifting • Communicating daily prices creates awareness and focus • Choice matters • Customers value having a choice in participating
12 Proprietary © OGE Energy Corp. 2016 All Rights Reserved
What’s Next at OG&E • • • • •
System and process improvements Continue to target high-propensity/high-value customers Maintain churn (customers and MW) Exploration and introduction of upgrade and premium offers: Exploration of relationship between electric vehicles and timevariant pricing
13 Proprietary © OGE Energy Corp. 2016 All Rights Reserved
Thanks!
14 Proprietary © OGE Energy Corp. 2016 All Rights Reserved
