Time of Use (TOU) and Residential Demand Charges Conference

May 13-14, 2020


AGENDA

Wednesday, May 13, 2020

12:30 – 1:00 p.m. :: Login

1:00 – 1:10 p.m. :: Conference Announcements


1:10 – 1:30 p.m. :: Opening Address from Evergy

Evergy, Inc., which was formed in 2018 through the combination of KCP&L and Westar, provides clean, safe and reliable energy to 1.6 million customers in Kansas and Missouri.  Evergy is committed to delivering clean, safe, reliable sources of energy today and well into the future. This opening segment will review how innovative rate design supports the accomplishment of that long-term Evergy mission. 

Darrin Ives, Vice President, Regulatory Affairs, Evergy

1:30 – 1:40 p.m. :: Short Break Between Speakers


1:40 – 2:20 p.m. :: Demand Rate Implementation: When Failure is Not an Option (The Sequel)

Demand rate billing is a promising option for utilities seeking to align their cost and revenue structures while reducing the sharp spikes in demand that occur during peak times. But will customers accustomed to a consumption model understand and accept a completely new way of thinking about how they use energy? JEA initially presented the details of their new Residential Demand Pilot at a previous residential demand charges conference. Now that the Pilot is almost complete, Program Manager Brian Pippin details the lessons JEA has learned in testing demand billing.  Did their initial assumptions ring true or did they have to pivot a lot?  Come find out and track how the Pilot evolved from its initial planning in rate development to actual Pilot implementation and the implications for a full rollout.

Brian Pippin, Strategic Segment Manager, JEA

2:20 – 2:30 p.m. :: Short Break Between Speakers


2:30 – 3:15 p.m. :: The Changing Marketplace at TVA:  Seasonal Time of Use Rates and Grid Access Charges

In response to the changing electric marketplace, TVA is in the middle of a multi-year process to change its rate structure to ensure the safety, reliability and resilience of the electric system for the business customers and local power companies serving the 10 million people in the Tennessee Valley.

Jay Erickson, Manager, Retail Rate Design, Tennessee Valley Authority (TVA)

3:15 – 3:25 p.m. :: Short Break Between Speakers


3:25 – 4:05 p.m. :: Innovative Rate Structures at Cooperatives

Advances in technology are bringing major changes to the energy industry, which is exciting news for energy consumers, but they’re also changing the cost structure. Since electric cooperatives use costs to determine their rates, changing costs require corresponding changes to rates. In this session, hear how electric cooperatives are working hard to ensure their rates are fair to all members and using innovate rate design so that the bill each member receives matches the cost of serving that member as closely as possible.

Allison Hamilton, Senior Principal Markets & Rates, NRECA

4:05 – 4:15 p.m. :: Short Break Between Speakers


4:15 – 5:00 p.m. :: The Effect of Rate Design on Electric Vehicle (EV) Charging Behavior

In this presentation, the speaker will present the effect of rate design on electric vehicle (EV) charging behavior. Two EV rates implemented by a utility will be discussed: a whole-house time-of-use (TOU) rate that includes a very low overnight rate; and an hourly rate applied at EV charging stations. The results provide an indication of the extent to which home EV charging behavior can be influenced by rates; and whether workplace EV charging is affected by the energy price and whether the charging session is paid by the EV driver or the station host.

Dan Hansen, Vice President, Christensen Associates


Thursday, May 14, 2020

8:30 – 9:15 a.m. :: Bringing 40+ years of Residential Demand Charges Knowledge to the Audience

There continues to be a great deal of discussion about residential demand rates, as utilities grapple with finding a solution to fixed cost recovery for DER’s. While the DER piece is relatively new, residential demand rates are not. Since the early 1970’s, more than 45 electric utilities in the US have now, or have had in the past, residential demand rates. There are multiple examples of past and existing residential demand rates that are attractive to residential customers and some that are not. In this session, Bill Brayden, an expert on residential demand control, will pass along to attendees what he has learned working with residential customers and utilities for the last 40+ years.

Bill Brayden, President, Brayden Automation

9:15 – 9:25 p.m. :: Short Break Between Speakers


9:25 – 10:10 a.m. :: Arizona’s Continued Adoption of More Advanced Residential Rates

In 2018, APS completed a full migration to a new suite of residential rates. As part of this effort, existing rates were cancelled rather than being frozen, which aligns all time-of-use customers on a common on-peak period of 3:00 p.m. to 8:00 p.m. This new residential rate structure also ended net metering for new rooftop solar installations, allowing an offset to the retail rate for energy consumed on site, but compensating a customer through a bill credit for energy exported to the grid. While APS has historically led the nation in voluntary adoption of time-of-use energy and demand rates, this rate transition has accelerated the adoption of advanced residential rates in the APS service territory. In this session, Leland Snook will bring the attendees up to speed on the most recent developments of these advanced residential rates.   

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

10:10 – 10:20 a.m. :: Short Break Between Speakers


10:30 – 11:05 a.m. :: TOU Design Best Practices in an Increasing DER Environment

In this session, the presenter will review alternative rate designs including TOU rates applied to both delivery and SOS components and assess their cross-subsidy implications under different net metering arrangements.  In addition, TOU design best practices will be discussed and presenting different ways to design TOU rates based on different objectives such as incentivizing customers to reduce system costs and minimizing cross subsidies from PV installations.

Dr. Sanem Sergici, Principal, The Brattle Group

11:05 – 11:15 a.m. :: Short Break Between Speakers


11:15 a.m. – 12:00 p.m. :: Are Demand Charges Due for Reform? A Vermont Review:

Demand charges took hold in Vermont about a century ago and have existed largely unaltered despite significant advances in metering, better communications capabilities, opportunities for load management, and regional wholesale market reforms. After an 8-month conversation with utilities and stakeholders, the Department concluded a report finding that traditional demand charges are indeed due for a makeover.  A new and separate stakeholder collaborative is underway providing an opportunity to model the system impacts of alternatives to demand charges.   In this session, Riley Allen, Deputy Commissioner, discusses the nature of the changes needed and will bring the attendees up to speed on the most recent developments. 

Riley Allen, Deputy Commissioner, Vermont Department of Public Service

12:00 – 12:45 p.m. :: Lunch Break


12:45 – 1:30 p.m. :: Awareness, Education and Success: How Evergy Marketed New Residential Rate Options

In preparation for new time of use (TOU) and demand rates for residential customers, Evergy developed a comprehensive marketing plan to help drive awareness and adoption of the new rate options. Learn how Evergy used a multi-phase education and marketing approach, paired with new interactive tools, to help test messages, educate employees, build early customer advocates, and ensure customer success. In this session, you’ll learn how Evergy:

Jeff Beeson, Manager, Marketing, Evergy

1:30 – 1:40 p.m. :: Short Break Between Speakers


1:40 – 2:20 p.m. :: Residential Rate Design Changes & Net Energy Metering

Where is Action Being Taken? Residential demand charges, fixed charge increases, and time-of-use rates - particularly for solar customers - are receiving more attention from utilities and regulators. This session will provide a 50 state perspective, and discuss where these rate design changes and net metering revisions have been proposed recently.

Brian Lips, DSIRE Project Manager, North Carolina Clean Energy Technology Center

2:20 – 2:30 p.m. :: Short Break Between Speakers


2:30 – 3:15 p.m. :: Washington’s Experience with Time of Use (TOU) Rates for Electric Investor Owned Utilities

In the early 2000s Puget Sound Energy (PSE) offered a TOU rate for residential customers; unfortunately, the program was terminated early for several reasons. Fast forward twenty years and TOU rates are once again being considered in Washington. There is renewed interest in evaluating all innovative pricing structures to meeting the requirements of the Clean Energy Transformation Act which requires utilities to use 100% clean energy by 2045. This presentation will provide an overview of why TOU rates have taken so long to gain traction in Washington. Further, it will discuss how the rate structures could be changing soon with emphasis on proposed criteria for pilot projects.

Elaine Jordan, Regulatory Analyst Energy, Washington Utilities and Transportation Commission

3:15 – 3:25 p.m. :: Short Break Between Speakers


3:25 – 4:15 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:

Dan Hansen, Vice President, Christensen Associates

Panelists:

Larry Wilkus, Director, Regulatory Affairs, Evergy

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

Jay Erickson, Manager, Retail Rate Design, Tennessee Valley Authority (TVA)

Allison Hamilton, Senior Principal Markets & Rates, NRECA

Brian Pippin, Strategic Segment Manager, JEA

4:15 p.m. :: Conference Adjourns


WORKSHOP

Building an Innovative Residential Rate Portfolio

Wednesday, May 13, 2020

8:45 – 9:00 a.m. :: Login

9:00 – 12:00 p.m. :: Workshop Timing

Overview

This workshop nests the issues of innovative designs such as residential demand charges and TOU rates in the larger question of what your residential rate portfolio should look like. Traditionally, portfolio choice has meant revenue attrition and needless complexity. But now, customers are becoming increasingly diverse. They’re opting for electric vehicles, exploring customer-site generation, eager to take on home energy monitoring for conservation and cost control. How does the utility meet those needs and avoid revenue loss at a time when loads have ceased growing? This workshop prepares you for Rates Summit by exploring the sources of customer complexity and approaches to developing a responsive residential rate portfolio that is flexible enough to meet customer needs but sound in recovering required revenues.

Learning Outcomes

 

Agenda

 

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


ONLINE DELIVERY

Our courses are designed to be the best possible use of your valuable time – get the information you need to improve your position in the market in an interactive, dynamic format.

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.