Matinee Pricing Opt-in Pilot Rate Proposal (R.13-12-011) Commission Workshop February 24, 2016 Robert.Thomassce.com Manager, Pricing Design Introduction Ruling directs utilities to develop an opt-in Matinee pilot tariff that offers more
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Presentation Transcript
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Matinee Pricing Opt-in Pilot Rate Proposal (R.13-12-011) Commission Workshop
February 24, 2016
Robert.Thomas@sce.com
Manager, Pricing Design<br>
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Introduction Ruling directs utilities to develop an opt-in Matinee pilot tariff that offers more attractive pricing during the Matinee period to non-residential customers
Matinee period (defined as 10 a.m. to 4 p.m. during Spring) is aligned with periods when renewable and low-water use energy generation is most abundant
Ruling called for a June 1, 2016 implementation
SCE’s Matinee Pilot Program (MPP) proposal is based on a modified version of the existing Real-Time Pricing (RTP) tariff
The pilot will operate through two spring seasons and will target customers in four specific customer groups
SCE proposes to establish a memorandum account to track incremental costs associated with the pilot
In an upcoming September-2016 Rate Design Window (RDW) Application, SCE plans to develop a new RTP rate design to better reflect the long-term projection of market trends and net system profiles
Implementation expected in Q2/Q3-2018 after a Final Decision is reached in the RDW Southern California Edison 2<br>
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Existing Real-Time Pricing Rate Structure SCE’s RTP tariff provides an hourly pricing rate schedule through a menu of nine pre-defined day types
Day types are categorized by temperature, season, and weekday or weekend
The applicable day type is known a day in advance based on the National Weather Service (NWS) temperature in Downtown Los Angeles
Customer notifications generally occur via text, through the Account Representatives, or any NWS-based weather source
Hourly RTP prices are comprised of generation energy and capacity
Energy prices are based on SCE’s production model runs of hourly energy prices
Capacity is based on SCE’s GRC Phase 2 valuation, allocated on an hourly Loss of Load Expectation (LOLE) basis
Delivery charges are the same as the Base Rate (Option B) for each rate class Southern California Edison 3<br>
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Summary of Tariff Proposal Modify existing RTP rates by replacing current production cost model marginal energy cost with CAISO day ahead energy price in rate design
Overall rate structure will remain the same: hourly prices that reflect nine different temperature day-types
Retain current capacity valuation and allocation
The resulting rate reflects reduced energy prices in the Matinee periods
Approximately 30% less than the production model values in the Matinee periods
Open to Bundled Service non-residential customers with monthly demands of 200kW and above
For cost containment and scheduling considerations, the pilot program excludes customers participating in NEM, DR programs, Standby, or other rate options
The pilot will target the following customer groups:
Agricultural & Pumping
Water Agencies
Electric Vehicle & Energy Storage
Existing RTP customers Southern California Edison 4<br>
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Summary of Tariff Proposal (cont.) The pilot will be limited to 200 participants
The population of the four targeted groups represents approximately 2,000 customers
Currently, approximately 180 customers are served on the existing RTP rate with a group diversified peak of 200 MW
Duration of the pilot will be for two spring seasons and expire on June 1, 2018
Participating customers can opt-out but cannot re-enter the pilot program
Bill protection will not be provided
No incentives for signing up
Upon receiving a final Commission decision, the pilot will take 9-12 months to implement
Outreach will start no later than the quarter prior to implementation
The memorandum account will track incremental costs:
IT and billing system changes
Marketing, outreach, and recruitment Southern California Edison 5<br>
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Current RTP Rate: TOU-PA-3-RTP - Illustrative Utility-Retained Generation (URG) Rates ($/kWh) Southern California Edison 6 Notes:
Rate levels shown reflect only the Utility-Retained Generation (URG) rates. Total RTP rate comprises the following charges: URG + DWREC + Delivery (Base Rate)
Temperature Day-Types reflect average temperatures for years 2007 – 2011<br>
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Proposed RTP Pilot Rate: TOU-PA-3-RTP-MPP - Illustrative Utility-Retained Generation (URG) Rates ($/kWh) Southern California Edison 7 Notes:
Rate levels shown reflect only the Utility-Retained Generation (URG) rates. Total RTP rate comprises the following charges: URG + DWREC + Delivery (Base Rate)
Temperature Day-Types reflect average temperatures for years 2007 – 2011
Matinee Period: 10 a.m. to 4 p.m. during Spring<br>
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Current RTP Customers’ Usage Pattern - 2014 Hourly Load Profiles by Day-Type for All Rate Groups Southern California Edison 8<br>
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Glossary of Acronyms 9 Southern California Edison<br>
