Rates Chris Greenwell
Emerging Approaches to Integrating Solar with Existing Programs and Rates
Chris Greenwell April 30th 2014
Agenda • OG&E background & vision • OG&E’s success with rate/technology innovation • Price response • Flat bill
• Concepts for program development of solar PV • Smart grid integrated solar • Virtual solar
OGE Background - Goal: Defer building more fossil fuel generation until 2020 or beyond How? • Additional wind generation • Build transmission to deliver wind energy • Increased focus on energy efficiency • Deploy Smart Grid technology 3
OG&E Success with DR and Other rate forms 180000
160000
140000
120000
82,793
• Serves 800,000 customers in Oklahoma and Arkansas.
100000
77,623
80000
60000
40000
74,819
62,958 56,774 41,438
20000
0 2010
2011 SmartHours
2012 Other
2013
• Demand Response – 80,000 Customer – Dynamic Pricing – No Direct Load Control – Smart Grid Integrated • Other – RTP, GFB, Wind
DR overall value to customer is high and behavior is more predictable 2012 and 2013 OG&E Smart-hours program results
5
When given the option, 73% of customers would choose according to their personal preferences vs. standard tariffs
2013 OG&E conjoint study
6
OG&E Product and Service Evolution Implemented programs Programs under development
ROI & Risk
Capital Investment Demand Response Traditional Programs Efficiency Smarthours Programs Home Energy Efficiency
Yesterday
Commercial Standard Offer High Efficiency Lighting
Thermostat Price Response Integrated Volt Var Control
Below the Line Component Customer Programs Community Renewable with Price Guarantee Solar PV installation Smart Grid Integrated LED Lighting
Today
Partnership Venture Programs (regional and national)
Smart Grid as a Utility Service Smart Grid Integrated LED Lighting Guaranteed Flat Bill
Tomorrow
Smart Grid and Solar Integrated Together
A utility solar product from a central facility appears promising • Lower cost than rooftop solar due to the economies of scale and superior technology • Hassle free – no panels on roof • Portability (customers can keep it if they move) • Maintenance free (no cleaning, no worries during storms) • Availability to all utility customers (not just customers with a roof, or with a roof facing the right direction, not just wealthier customers) • Shorter commitments more flexibility to commit for desired terms • Right sizing (ability to size solar purchase to match their consumption and/or desires – with some limitations) • Fuel Hedge – Over time can pay less overall as electricity prices rise • View production real time as production occurs and value as value occurs 9
Discussion
10
Chris Greenwell April 30th 2014
Agenda • OG&E background & vision • OG&E’s success with rate/technology innovation • Price response • Flat bill
• Concepts for program development of solar PV • Smart grid integrated solar • Virtual solar
OGE Background - Goal: Defer building more fossil fuel generation until 2020 or beyond How? • Additional wind generation • Build transmission to deliver wind energy • Increased focus on energy efficiency • Deploy Smart Grid technology 3
OG&E Success with DR and Other rate forms 180000
160000
140000
120000
82,793
• Serves 800,000 customers in Oklahoma and Arkansas.
100000
77,623
80000
60000
40000
74,819
62,958 56,774 41,438
20000
0 2010
2011 SmartHours
2012 Other
2013
• Demand Response – 80,000 Customer – Dynamic Pricing – No Direct Load Control – Smart Grid Integrated • Other – RTP, GFB, Wind
DR overall value to customer is high and behavior is more predictable 2012 and 2013 OG&E Smart-hours program results
5
When given the option, 73% of customers would choose according to their personal preferences vs. standard tariffs
2013 OG&E conjoint study
6
OG&E Product and Service Evolution Implemented programs Programs under development
ROI & Risk
Capital Investment Demand Response Traditional Programs Efficiency Smarthours Programs Home Energy Efficiency
Yesterday
Commercial Standard Offer High Efficiency Lighting
Thermostat Price Response Integrated Volt Var Control
Below the Line Component Customer Programs Community Renewable with Price Guarantee Solar PV installation Smart Grid Integrated LED Lighting
Today
Partnership Venture Programs (regional and national)
Smart Grid as a Utility Service Smart Grid Integrated LED Lighting Guaranteed Flat Bill
Tomorrow
Smart Grid and Solar Integrated Together
A utility solar product from a central facility appears promising • Lower cost than rooftop solar due to the economies of scale and superior technology • Hassle free – no panels on roof • Portability (customers can keep it if they move) • Maintenance free (no cleaning, no worries during storms) • Availability to all utility customers (not just customers with a roof, or with a roof facing the right direction, not just wealthier customers) • Shorter commitments more flexibility to commit for desired terms • Right sizing (ability to size solar purchase to match their consumption and/or desires – with some limitations) • Fuel Hedge – Over time can pay less overall as electricity prices rise • View production real time as production occurs and value as value occurs 9
Discussion
10
