FERC schedules conference, releases discussion draft on national plan for demand response

Options Toolbox

Related Documents Industry Document "Notice Providing New Technical Conference Date and Announcing Release of Discussion Draft, Accession Number - 20091028-3023" presented on 10/28/2009 Industry Document "Possible Elements of a National Action Plan on Demand Response - A Discussion Draft - Accession No. : - 20091028-3024" presented on 10/28/2009

Related Articles 9/24/2009 FERC to hold technical conferences on planned demand response 'road map' 6/19/2009 FERC staff says demand response could cut peak demand 20% by 2019, equivalent to thousands of peaking plants

In an effort to fulfill a congressional mandate for FERC to develop a national action plan on demand response, the agency on Oct. 28 announced that it will hold a technical conference (AD09-10) to gather stakeholder input on what should be included in such a plan.

FERC said discussions during the conference would be framed by a "Discussion Draft on Possible Elements of a National Action Plan on Demand Response," which was prepared by commission staff and released in conjunction with the notice scheduling the technical conference.

The Energy Independence and Security Act of 2007, or EISA, created a new section of the National Energy Conservation Policy Act requiring FERC to conduct a national assessment of demand response by June 17 and to develop a national action plan on demand response by June 17, 2010.

Congress said the goals of the action plan should be to identify ways that technical assistance can be offered to states to maximize the demand-response resources that can be developed and deployed; design and identify a national communications program; and develop the analytical tools, information, model regulatory provisions, model contracts, and other support materials that can be used by customers, states, utilities and demand-response providers.

Acting on the first mandate, commission staff in June released a report concluding that a more extensive use of demand response could cut peak demand 20% by 2019.

To address the second directive, FERC in September scheduled two technical conferences for late October aimed at exploring the development of a demand-response road map, but those conferences were subsequently postponed without explanation.

FERC apparently has determined that one technical conference, now set for Nov. 19-20 at the agency's headquarters in Washington, D.C., will suffice. The conference will include panel discussions on the overall approach and scope of the discussion draft, breakout sessions that will focus on each of the three objectives Congress identified for the national action plan, and a subsequent closing plenary session to summarize the breakout discussions.

The discussion draft is divided into two parts. The first part addresses the big picture by identifying the objectives of the action plan and proposing the establishment of a national coalition of stakeholders charged with implementing the plan; the second part discusses and seeks comments on possible strategies that could be included in the plan.

Staff envisioned the initiative taking "two simultaneous, compatible paths," one with the goal of deploying the maximum price-responsive demand response identified in staff's June report, and the other aimed at developing emerging technologies and resources.

Among other things, FERC is seeking comments on whether the possible strategies and activities described in the discussion draft would be appropriate and effective, and whether any activities should be removed from or added to the plan. The commission also wants stakeholders to address whether the possible strategy of using a coalition to meet congressional objectives is consistent with the EISA, as well as the ways that such a coalition can best facilitate the implementation of the national action plan.

The commission set a Dec. 4 deadline for submitting comments, which will be used by FERC staff to prepare the national action plan.