USA Federal Policy Mandate to Implement Demand Response

EnergyPulse has published the article "2005 Energy Bill Provisions on Demand Response and Smart Metering: Just the Facts," written by Chris King, Chief Strategy Officer, eMeter Corporation. That is a strong message that Demand Response is for real.

 

The Smart Metering Section sets out six basic requirements as follows:

• National Metering Standard – a requirement that utilities offer and provide customers with time-based rates within 18 months of enactment (August 8, 2005), or in the case of large customers, with capacity credits. There is an accompanying requirement that the utility must provide a suitable meter to any customer requesting such rate, or demonstrate why compliance cannot be achieved.

• Competitive Retailers – customers of competitive retail marketers must receive the same treatment outlined in the paragraph above.

• State Investigations of Advanced Metering and Demand Response – state commissions must conduct an investigative proceeding into demand response and advanced metering, initiating it within one year and completing it within 2 years.

• Annual Federal Assessments of Barriers to Advanced Metering and Demand Response – within one year of enactment FERC must begin to conduct annual regional assessments of demand response resources and the penetration of advanced metering and other technologies, and identify any barriers to adoption.

• Official U.S. Policy – the bill states that it is the official policy of the U.S. to encourage demand response and adoption of devices which enable it, including advanced metering.

• DOE Demand Response – DOE must submit a report to Congress within 180 days that recommends how to achieve specific national levels of demand response by 2007.

To better understant what time-based rate is, ... say to "provide individual customers upon customer request, a time-based rate schedule under which the rate charged by the electric utility varies during different time periods and reflects the variance, if any, in the utility's costs of generating and purchasing electricity at the wholesale level. The time-based rate schedule shall enable the electric consumer to manage energy use and cost through advanced metering and communications technology.