Time of Use (TOU) and Residential Demand Charges Conference

Time of Use (TOU)/Residential Demand Charges

May 20-21, 2021 | Online :: Central Time

Higher adoption rates of rooftop solar and electric vehicles (EVs) have increased interest in moving beyond “plain vanilla” electric rates and considering time-of-use (TOU) and demand-based rates for residential customers. Prospective or current EV owners may value a rate that makes overnight charging more affordable, helping further increase EV adoption rates. Higher rates of rooftop solar may create “ramping” issues in the evening as the sun sets, reducing solar generation as residential electric demand remains high. TOU rates may help by providing customers with incentives to move usage to lower-cost hours when solar output is plentiful. High rates of rooftop solar adoption may also lead to lost revenue issues under standard rates, as billed usage may decline by a much higher percentage than customer peak demands. Demand charges have been considered and implemented as a rate design element that may mitigate revenue erosion from rooftop solar.

Questions arise when utilities consider these rates. Does it make sense to offer them as opt-in, opt-out, or mandatory rates? How should the utility set its TOU rates to both reflect costs to serve and incentivize desired customer behaviors? Should the new rates include a dynamic pricing element, or should they be just plain old TOU rates? Should the new rates include demand charges? If so, should they be based on maximum customer demand or customer’s demand at the time of system peak? These questions and more will be addressed at EUCI’s annual TOU and residential demand charges conference.

Learning Outcomes

  • Discuss the trends in residential rate design across the country
  • Examine the current landscape of TOU and residential demand charges
  • Discuss dynamic pricing and advanced rate concepts for electric vehicles (EVs)
  • Examine the elements of the NEM reform rate in CA
  • Evaluate different utilities’ offering of a demand rate to their residential customer base
  • Discuss working with regulators and advancing TOU residential rates
  • Explore innovative rate structures that place customers in control of their power bill
  • Review how a constantly evolving grid requires a modern approach to pricing

Agenda

Thursday, May 20, 2021 : Central Time

8:45 – 9:00 a.m.
Log In

9:00 – 9:15 a.m.
Welcome, Overview and Introductions

12:15 – 1:00 p.m.
Lunch Break

9:15 a.m. – 5:00 p.m.
Conference Timing

9:15 – 9:55 a.m. :: Trends in Residential Rate Design Across the 50 States

Due to widespread advancements in grid technology and increasing customer sophistication, utilities are now exploring more complex rate design options for residential customers. While consideration of residential demand charges is still of interest for some utilities, other rate designs, particularly time-of-use rates, have become increasingly popular for residential customers. Meanwhile, utilities and regulatory commissions have continued to explore alternative rate designs for customers with distributed generation, with DG capacity fees and minimum bills emerging as possible substitutes for demand charges. This session will provide an overview of these recent state and utility actions and trends related to residential rate design.

David Sarkisian, Senior Project Manager, NC Clean Energy Technology Center

9:55 – 10:35 a.m. :: Residential TOU and Demand Charge Pricing: the Current Landscape

This session will review the variety of residential TOU rates currently in use in North America, including both “static” designs, where the prices appear in tariff sheets, and “dynamic” designs, where energy prices are provided at short notice during periods of low grid reserves. The session will also look at examples of demand charges to identify what customers utilities choose to serve with this design.

Bruce Chapman, Vice President, Christensen Associates

10:35 – 10:50 a.m. :: Networking Break

10:50 – 11:30 a.m. :: Duke Energy’s Experiences and Observations as to Advanced Residential Rate Designs

In October 2019, Duke Energy implemented the dynamic rate pilots for residential and small business as previously approved by the Commission. This presentation will share information about Duke Energy residential dynamic pricing pilots, time-of-use and advanced rate concepts for electric vehicles, and the rate design innovations in a proposed net metering framework.

Joe Rosenthal, Lead Pricing & Regulatory Solutions Analyst, Duke Energy

11:30 a.m. – 12:15 p.m. :: The Net Energy Metering (NEM) Reform Rate in CA

Since 1995 the NEM program in CA has allowed rooftop solar owners to offset a large portion of their electric bills such that many pay little or nothing toward fixed costs such as grid maintenance, customer service and public-benefit programs for the poor. As a result, a slowly shrinking base of non-solar customers has had to cover those expenses. In this presentation, hear an update from Southern California Edison (SCE) who along with Pacific Gas & Electric and San Diego Gas & Electric turned in a joint proposal in March to the California Public Utilities Commission that would make a series of adjustments to the NEM.

Andre Ramirez, Senior Advisor, Regulatory Affairs, Pricing Design & Research, SCE

12:15 – 1:00 p.m. :: Lunch Break

1:00 – 1:40 p.m. :: PECO’s Journey (So Far) Toward Implementing New Voluntary Time of Use (TOU) Rates for Generation

In December of 2020, the Pennsylvania Public Utility Commission approved a formal plan allowing PECO to implement new optional time-of-use (TOU) rates for generation.  These three-part, whole-house rates are expected to become available for most of PECO’s smart-metered residential and small commercial default service customers later this year.  This presentation will provide a glimpse into the underlying factors driving PECO’s plan, the regulatory approval process, and the implementation efforts underway for the launch of the new TOU rates later this year.

Joe Bisti, Principal Regulatory and Rates Specialist, PECO

1:40 – 2:20 p.m. :: Time of Day Rates at Berkeley Electric

Berkeley Electrics Time-of-Day rate (TOD) is a voluntary program that rewards members with a lower electric rate for shifting energy-intensive task. In this presentation Eddie Plowden will share information about Berkeley’s (TOD) rate and include an example of how TOD billing can affect the cost of charging a battery electric vehicle (BEV).

Eddie Plowden, Director, Marketing and Energy Services, Berkeley Electric Cooperative, Inc.

2:20 – 2:40 p.m. :: Afternoon Networking Break

2:40 – 3:20 p.m. :: An Update on ComEd’s Residential TOU Pilot

To deal with customers unwillingness to sign up for ComEd’s Real-Time Pricing Program, the utility came up with a residential TOU pilot that offers a fixed-priced supply option with similar benefits to the residential real-time pricing program for customers. In this session, John Leick will share how ComEd’s TOU pilot has created a middle ground between fixed and real-time pricing. He will share the learnings from this pilot program and how it has created an opportunity for customers to lower their electric bills by reducing or shifting load during the highest priced periods.

John Leick, Principal Rate Administrator, Regulatory Department, ComEd

3:20 – 4:00 p.m. :: Customer Response to TOU Pricing at San Diego Gas & Electric (SDG&E)

This presentation will share why SDG&E needed TOU and Dynamic Rates and how it all got started. It will also talk about the load impact performance of these TOU and Dynamic Rates. In addition, an update on the EV TOU impacts will be provided as SDG&E was able to get more information on the Power Your Drive rate option – and the company can now see the effects of Covid-19 on workplace charging versus at home charging.

Leslie Willoughby, Load Analysis Manager, San Diego Gas & Electric

4:00 – 4:05 p.m. :: Break

4:05 – 5:00 p.m. :: Innovative Rates Panel Discussion

Electric and natural gas utilities are undergoing sweeping changes as their industries transform. Advanced metering, distributed generation (including rooftop solar), home battery storage, electric vehicles and alternative regulatory approaches all influence utility rate design. In this panel session, this group of industry experts will bring to bear their years of experience to weigh the opportunities and constraints associated with pursuing innovative rate options. This is an open Q&A discussion, so attendees are encouraged to ask questions.

Moderator:

Tim Ballard, Director, Revenue & Rate Design, Utilities International, Inc.

Panelists:

John Leick, Principal Rate Administrator, Regulatory Department, ComEd

Eddie Plowden, Director, Marketing and Energy Services, Berkeley Electric Cooperative, Inc.

Mark LeBel, Associate, Regulatory Assistance Project (RAP)

Larry Wilkus, Director, Regulatory Affairs, Evergy

Friday, May 21, 2021 : Central Time

8:45 – 9:00 a.m.
Log In

9:00 a.m. – 12:00 p.m.
Conference Timing

9:00 – 9:40 a.m. :: New Residential Rate Offerings at Ameren

Ameren is currently in the process of rolling out AMI, which will enable the utility to provide several innovative residential rates starting in late May. At this same time, Ameren will also be implementing new customer facing tools and interfaces. In this presentation, Steve Wills with Ameren Missouri will present the new residential rate offerings, the rationale behind them, and the planned customer engagement activities that the company has in place.

Steve Wills, Director, Rates & Analysis, Ameren Missouri

9:40 – 10:20 a.m. :: Demand Charges:  What Are They Good For?”

Demand charges have existed since nearly the beginning of the electric industry. Although utilities often favor them, economists have continually questioned whether these rates — applied to an individual customer’s maximum short-term usage in a billing period — are an efficient form of pricing. In this presentation, Mark LeBel with the Recovery Assistance Project (RAP) will take a deep dive on demand charges and cost causation.

Mark LeBel, Associate, Regulatory Assistance Project (RAP)

10:20 – 10:35 a.m. :: Morning Networking Break

10:35 – 11:15 a.m. :: Residential Demand Charges at Mid-Carolina

Mid-Carolina has always put our members first by embracing innovative rate structures that place customers in control of their power bill each month. In this presentation, learn about the residential demand charge that Mid-Carolina implemented during its peak 3 to 4 hours that enables the utility to use a lower energy charge that better reflects cost to serve, while at the same time inducing members to better manage usage during the peak.

Bob Paulling, President/CEO, Mid-Carolina Electric Cooperative, Inc

11:15 a.m. – 12:00 p.m. :: Demand Price Information: How APS’s Customers Have Responded for Decades

Residential time-of-use demand rates have been an effective tool in encouraging APS customers to reduce their peak demand during the on-peak period for well over 30 years. As the electric utility industry rapidly evolves, demand rates continue to be an increasingly important means of stimulating innovation and helping customers shape how they consume energy. A constantly evolving grid requires a modern approach to pricing – APS’s customer experience dispels some of the myths surrounding residential rate reform.

Leland Snook, Director, Rates & Rate Strategy, Arizona Public Service Company

12:00 p.m. :: Conference Adjourns

Workshop

Innovative Pricing Options for Residential Customers

Wednesday, May 19, 2021 : Central Time

12:45 – 1:00 p.m.
Log In

1:00 – 4:30 p.m.
Workshop Timing

Overview

Residential customers are becoming more sophisticated managers of energy and owners of increasingly diverse end uses. Familiar examples include ownership of electric vehicles, use of solar panels or subscription to green energy, installation of storage capability and, more generally, the acquisition of energy management capability. Traditional rates don’t support these capabilities well and rate options currently in use aren’t entirely satisfactory.

This workshop reviews current designs and invites participants to consider the competing challenges of rate simplicity, proper pricing incentives, revenue sufficiency for the provider, and operational feasibility. Our goal will be to prepare participants for the conference’s discussion topics and to offer a chance to review the pros and cons of alternatives.

Learning Outcomes

  • Evaluate the tradeoffs between rate simplicity and the incentives associated with different types of rates.
  • Discuss what rate options can provide customers and providers with support for new dimensions of service
  • Assess whether innovative rates imply or require unbundling of pricing of electric functions
  • Prepare for the conference discussions and review topics

 

Agenda

  • Customer complications: how to support site generation, storage, electric vehicles, and energy management capability with pricing
  • The foundation: rates pre-AMI
  • The prospective rate option portfolio
    • TOU designs: static and dynamic
    • Demand charges
    • Other residential customer options
  • TOU alternatives:
    • Incentive properties
    • Pros and cons
  • Demand charges:
    • Incentive properties
    • Pros and cons
  • Summary

 

Workshop Instructor

Bruce Chapman, Vice President, Christensen Associates

Bruce R. Chapman is a Vice President at Christensen Associates Energy Consulting. He specializes in the design and pricing of retail electricity pricing products that improve the efficiency of pricing relative to traditional rates, and in costing methods that underpin these prices. He has managed and participated in projects that have developed such innovative products as critical-peak pricing, real-time pricing, and fixed billing. He has also reviewed and recommended modifications to distributed generation and standby rate designs. Mr. Chapman regularly presents costing and pricing principles to industry stakeholders.

Speakers

  • Tim Ballard, Director, Revenue & Rate Design, Utilities International, Inc.

  • Joe Bisti, Principal Regulatory and Rates Specialist, PECO

  • Bruce Chapman, Vice President, Christensen Associates

  • Mark LeBel, Associate, Regulatory Assistance Project (RAP)

  • John Leick, Principal Rate Administrator, Regulatory Department, ComEd

  • Bob Paulling, President/CEO, Mid-Carolina Electric Cooperative, Inc

  • Eddie Plowden, Director, Marketing and Energy Services, Berkeley Electric Cooperative, Inc.

  • Andre Ramirez, Senior Advisor, Regulatory Affairs, Pricing Design & Research, SCE

  • Joe Rosenthal, Lead Pricing & Regulatory Solutions Analyst, Duke Energy

  • David Sarkisian, Senior Project Manager, NC Clean Energy Technology Center

  • Leland Snook, Director, Rates & Rate Strategy, Arizona Public Service Company

  • Leslie Willoughby, Load Analysis Manager, San Diego Gas & Electric

  • Steve Wills, Director, Rates & Analysis, Ameren Missouri

  • Larry Wilkus, Director, Regulatory Affairs, Evergy

Online Delivery

We will be using Microsoft Teams to facilitate your participation in the upcoming event. You do not need to have an existing Teams account in order to participate in the broadcast – the course will play in your browser and you will have the option of using a microphone to speak with the room and ask questions, or type any questions in via the chat window and our on-site representative will relay your question to the instructor.

  • IMPORTANT NOTE: After November 30 you will not be able to join a Teams meeting using Internet Explorer 11. Microsoft recommends downloading and installing the Teams app if possible. You may also use the Edge browser or Chrome.
  • You will receive a meeting invitation will include a link to join the meeting.
  • Separate meeting invitations will be sent for the morning and afternoon sessions of the course.
    • You will need to join the appropriate meeting at the appropriate time.
  • If you are using a microphone, please ensure that it is muted until such time as you need to ask a question.
  • The remote meeting connection will be open approximately 30 minutes before the start of the course. We encourage you to connect as early as possible in case you experience any unforeseen problems.

Register

Please Note: Confirmed speakers do not need to register and are encouraged to participate in all sessions of the event. If you are a speaker and have any questions please contact our offices at 1.303.770.8800

Please Note: This event is being conducted entirely online. All attendees will connect and attend from their computer, one connection per purchase. For details please see our FAQ

If you are unable to attend at the scheduled date and time, we make recordings available to all registrants for three business days after the event

Event Standard RateAttendees
Single Connection - Time of Use (TOU)/Residential Demand ChargesUS $ 1295.00
Pack of 5 connectionsUS $ 5,180.00
Pack of 10 ConnectionsUS $ 9,065.00
Pack of 20 ConnectionsUS $ 15,540.00
Call us at 303.770.8800 if you have any specific questions on the volume discounts
* all other discounts do not apply to license packs

This event has the following workshops:

Innovative Pricing Options for Residential CustomersUS $ 495.00

By registering I indicate I agree with EUCI's privacy policy and understand I may receive emailed reports, articles, event invitations and other information related to products and services from EUCI and any of our business partners. I understand I may unsubscribe at any time by clicking the link included in emails.

Take advantage of these discounts!

  • Attend the Conference and workshop and pay US $ 1,695.00 per attendee (save US $ 95.00 each)

Cancellation Policy

Your registration may be transferred to a member of your organization up to 24 hours in advance of the event. Cancellations must be received on or before April 16, 2021 in order to be refunded and will be subject to a US $195.00 processing fee per registrant. No refunds will be made after this date. Cancellations received after this date will create a credit of the tuition (less processing fee) good toward any other EUCI event. This credit will be good for six months from the cancellation date. In the event of non-attendance, all registration fees will be forfeited. In case of conference cancellation, EUCIs liability is limited to refund of the event registration fee only. For more information regarding administrative policies, such as complaints and refunds, please contact our offices at 303-770-8800

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CEUs

Credits

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EUCI has been accredited as an Authorized Provider by the International Association for Continuing Education and Training (IACET).  In obtaining this accreditation, EUCI has demonstrated that it  complies with the ANSI/IACET Standard which is recognized internationally as a standard of good practice. As a result of their Authorized Provider status, EUCI is authorized to offer IACET CEUs for its programs that qualify under the ANSI/IACET Standard.

EUCI is authorized by IACET to offer 1.0 CEUs for this conference and 0.3 CEUs for the workshop.

Requirements for Successful Completion of Program

You must be logged in for the entire presentation and send in the evaluation after the online course is completed.

Instructional Methods

Case Studies, Panel Discussions and PowerPoint presentations will be used in the program.

Who Should Attend

Professionals working in the following areas will benefit from attending this event:

  • Rate design, product development and customer strategy
  • Pricing and load research
  • Cost of service
  • Financial analysis
  • Utility “customer-facing” executives
  • Regulators and staff
  • Legal counsel
  • Regulatory affairs
  • Ratepayer advocacy

Sponsors

 
 
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