BPAs DR Experience Karen Meadows Bonneville Power Administration

BPA’s DR Experience Karen Meadows Bonneville Power Administration May 2, 2007

Recent DR Pilots • Past DR pilots include: – Demand Exchange (TBL) • Day-ahead demand reduction bidding (includes buyback and dispatchable backup generation) • Up to 60 MW contracted • Delivered range vary widely (5 -60 MW) • Demand Exchange (PBL) is currently available under BPA’s dry year strategy (56 MW contractually) – Irrigation Motor Load Control • • Remote two way control and communications capable Farmers all elected manual control upon request of host Average about 4 MW load reduction from 7 farms Represents about 10% of load reduction

Recent DR Pilots – Ashland (direct load control) • Direct control of water heaters and set back of programmable thermostats via 2 -way communication • Utilized City of Ashland’s hybrid fiber network • Very small pilot of about 100 residential participants • Averaged 2+ k. W load reduction per home – Olympic Peninsula (direct load control) • Direct control of water heaters and central heating systems (i. e. FAF and heat pumps) • Approx 1500 one-way residential install • Prelim analysis indicate about 2 k. W load reduction per home – Gridwise partner • Demo of price sensitive thermostats and grid friendly appliances (hot water heaters and clothes dryers)

DR Efforts • BPA’s pilot program ran 2004 -early 2007 • No new DR pilots or programs planned at this time • The pilot program was under the auspices of BPA’s Non. Wires Solutions initiative • Total cost for the portfolio of measures is measured against the avoided cost of an identified transmission project • We do recognize there are potential shared distribution benefits, (i. e. distribution system improvement and economic savings) • No AMI, BPA is a wholesaler

Non-Wires Solutions (NWS) • The Bonneville Power Administration wants to ensure it is providing the most cost-effective solutions for the region’s transmission needs, from an engineering, economic, and environmental perspective • BPA is investigating how to fully and effectively integrate non-wires solutions into its transmission planning process • Goal: Successfully defer system improvement projects through NWS