SPP org 1 SPP Demand Response and Advanced

SPP. org 1

SPP: Demand Response and Advanced Metering in Arkansas 2

SPP Demand Response Catalysts SPP. org 3

Regulatory • March 20, 2006 Order from FERC • “SPP is directed to provide a report to the Commission six months from the date of market implementation on ways it can incorporate demand response into its imbalance market” SPP. org 4

Peak Demand SPP. org 5

Capacity Margins SPP. org 6

Reserve Margin by Region (2007 E v. 2003 A) SPP. org 7

Increases in CO 2 Emissions SPP. org 8

SPP Demand Response Initiatives SPP. org 9

SPP Demand Response Initiatives • Technical Conference (January 2007) • EPRI • ISO/RTO Council: EAS • US Demand Response Coordinating Committee (Potential) • SPP Center of Excellence • Strategic Planning Committee • Demand Response Task Force • Planning SPP. org 10

EPRI Initiative SPP. org 11

CO 2 Reductions … Technical Potential* EIA Base Case 2007 Technology EIA 2007 Reference Target Load Growth ~ +1. 5%/yr Load Growth ~ +1. 1%/yr 30 GWe by 2030 70 GWe by 2030 12. 5 GWe by 2030 64 GWe by 2030 No Existing Plant Upgrades 40% New Plant Efficiency by 2020– 2030 150 GWe Plant Upgrades 46% New Plant Efficiency by 2020; 49% in 2030 CCS None Widely Deployed After 2020 PHEV None 10% of New Vehicle Sales by 2017; +2%/yr Thereafter < 0. 1% of Base Load in 2030 5% of Base Load in 2030 Efficiency Renewables Nuclear Generation Advanced Coal Generation DER * Achieving all targets is very aggressive, but potentially feasible. © 2007 Electric Power Research Institute, Inc. All rights reserved. 12

Possible R&D Collaboratives Smart Infrastructure • Enable energy efficiency and demand response and other potential consumer/utility opportunities Analytics Energy Analytics • Independent and credible analysis to support innovative markets, rates and CO 2 impact Smart End-Use Devices • Maximizing the potential for energy efficiency and demand response in residential/ commercial/industrial sector Infrastructure Smart End-Use Devices Three broad interconnected areas of possible RD&D presented for reaction and refinement by the workshop attendees © 2006 Electric Power Research Institute, Inc. All rights reserved. 13

Possible Components of Smart Energy Efficiency Infrastructure Efficient Building Systems Utility Communications Internet Consumer Portal & Building EMS Distribution Operations Dynamic Systems Control Advanced Metering Renewables PV Control Interface Plug-In Hybrids Data Management © 2006 Electric Power Research Institute, Inc. All rights reserved. Distributed Generation & Storage 14 Smart End-Use Devices

SPP Planning Initiative www. spp. org 15

Planning Questions • What current flowgates are being mitigated by the 2006 -2016 SPP Transmission Expansion Plan (STEP)? • How would Demand Side Management (DSM) affect the current reliability plan? • How would SPP handle Enhanced Regional Planning (ERP) in respect to the STEP? www. spp. org 16

Flowgates in SPP performed analysis on the 2006 -2016 SPP STEP to determine how the top flowgates would be affected Staff focused on the top 15 flowgates with the highest TLR curtailments 7 of the top 15 flowgates are relieved by the 20062016 STEP www. spp. org 17

Top 15 Flowgates Relieved Not Relieved www. spp. org 18

New Top 15 Flowgates www. spp. org 19

Demand Side Management (DSM) DSM manages the consumption of energy to optimize available generation resources SPP very different geographically than areas in the northeast that have very dense high population areas Staff to initially consider DSM option in top 3 population areas in SPP footprint • • • Oklahoma City Kansas City Tulsa www. spp. org 20

Enhanced Regional Planning (ERP) SPP to potentially consider ERP as a solution to reliability problems identified in the STEP Initially, staff to use engineering judgment to determine what areas would be appropriate for ERP Staff would consider the benefit of a ~500 MW resource for initial screens, then use the SPP ERP checklist to determine feasibility www. spp. org 21

Gerrud Wallaert Regulatory and Policy Engineer 501 -614 -3358 gwallaert@spp. org 22