OASIS Energy Interoperation TC

  • 1.  DR Program Terms

    Posted 03-10-2010 19:03 
    








    Can someone share some information on how current DR programs are structured contractually?
    

     
    

    For example, if I am a utility customer and I enroll in a “Base Interruptible Program”, how is that enrollment formalized?  Do I sign a program enrollment form, contract addendum, separate contract?
    

     
    

    Do the terms of these programs typically indicate that the utility is not actually under any legal obligation to pay for load reduction?
    

     
    

    The thought occurred to me because I just learned how banks are very specific that checking account overdraft protection is typically a “non contractual courtesy” (see Google search) because otherwise it would be regulated.  It made me wonder if utilities/ISO’s
few commercial building DR in a similar way.
    

     
    


     
    

    Thanks!
    

    Dave
    

     
    


    David Wilson
    

    Enterprise Solutions Portfolio Manager
    

    Trane Commercial Systems
    

    Ingersoll Rand
    

     
    

    Office: +1.651.407.4168
    

    Mobile: +1.612.741.2759
    



     
    

     
    


    


    

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  • 2.  RE: [energyinterop] DR Program Terms

    Posted 03-10-2010 21:06 
    






    David,
    

     
    

    That 
question has a number of answers that depend primarily on the geography of the 
program as well as its sponsor.  Typically, there are two contracts 
involved.  One is the primary contract between a large demand side resource 
(typically an aggregator or a very large unified load).  Around this there 
are very formal terms, often letters of credit or bonds, and very specific 
performance penalties and incentives.  However, some of these programs are 
voluntary and lack come of those provisions.
    

     
    

    The 
other side is between an aggregator (who can be a utility or not) and the energy 
end user.  The nature of those contracts is a function of the risk 
tolerance of the aggregator.  EnerNOC contracts usually are very simple and 
contain no customer penalties, where other contracts often mirror the same 
penalties the aggregator faces.
    

     
    

    This 
topic easily can become a book, and the rules are changing as we speak, but 
happy to discuss further.
    

     
    

    Phil 
Davis

    

    ________________________________________________________________________________________________
    Phil 
Davis | Senior Manager | Schneider Electric Demand Response 
Resource Center | 3103 Medlock 
Bridge Road, Ste 100 | Norcross, 
GA  30071 | (: 404.567.6090 | 7: 678.672.2433 | 
*: phil.davis@us.schneider-electric.com | : Website:  http://www.schneider-electric.com
    

     
    

    

    
From: Wilson, David C (St. Paul) 
[mailto:DavidCWilson@trane.com]
    Sent: Wednesday, March 10, 2010 2:02 
PM
    To: energyinterop@lists.oasis-open.org
    Subject: 
[energyinterop] DR Program Terms

    

    

    Can someone share some information on how current DR programs are 
structured contractually?
    

     
    

    For example, if I am a utility customer and I enroll in a “Base 
Interruptible Program”, how is that enrollment formalized?  Do I sign a 
program enrollment form, contract addendum, separate contract?
    

     
    

    Do the terms of these programs typically indicate that the utility is not 
actually under any legal obligation to pay for load reduction?
    

     
    

    The thought occurred to me because I just learned how banks are very 
specific that checking account overdraft protection is typically a “non 
contractual courtesy” (see Google search) because otherwise it would be 
regulated.  It made me wonder if utilities/ISO’s few commercial building DR 
in a similar way.
    

     
    


     
    

    Thanks!
    

    Dave
    

     
    

    David Wilson
    

    Enterprise Solutions Portfolio Manager
    

    Trane Commercial Systems
    

    Ingersoll Rand
    

     
    

    Office: +1.651.407.4168
    

    Mobile: +1.612.741.2759
    



     
    

     
    


    

      
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    The information 
contained in this message is privileged and intended only for the recipients 
named. If the reader is not a representative of the intended recipient, any 
review, dissemination or copying of this message or the information it contains 
is prohibited. If you have received this message in error, please immediately 
notify the sender, and delete the original message and 
attachments.

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