Smart meters, demand response on the rise

Monday, December 28, 2015

From the December 24, 2015 issue of Public Power Daily
Originally published December 23, 2015, Republished by permission, PLMA December 28, 2015

By Laura D'Alessandro 
Integrated Media Editor

Customers are continuing to engage more in their electricity use through smart meters and demand response programs, according to a 2015 report from the Federal Energy Regulatory Commission’s staff.

Advanced metering deployment continues to rise throughout the country, the FERC staff’s 10th annual report on demand response and advanced metering said.

A total of 8.7 million advanced meters were installed and operational between 2012 and 2013, bringing the total to about 138 million meters, nearly 38 percent of all meters in the U.S. In 2013, the number of two-way smart meters surpassed the number of one-way meters for the first time. 

“Deployment of advanced meters continues to progress throughout the nation’s electric system, providing support for two-way communications networks that utilities can use to improve electric system operations, enable new technological platforms and devices, and facilitate consumer engagement,” FERC staff said in the report.

Nationwide, the total potential peak reduction from retail demand response programs decreased by 1,408 MW between 2012 and 2013, a drop of 4.9 percent, according to the report. In 2014, demand response increased in five of the seven independent system operator and regional transmission organization regions: the California ISO, Electric Reliability Council of Texas, ISO-New England, Midcontinent Independent System Operator and PJM Interconnection — with the largest absolute increase in MISO with 560 MW followed by PJM with 500 MW.

From 2012 to 2013 the number of customers enrolled in incentive-based programs nationwide increased by almost 70 percent to more than nine million customers, the FERC report said. Several of the utilities experiencing large growth in program enrollments from 2012 to 2013 received grants under the 2009 American Recovery and Reinvestment Act’s Smart Grid Investment Grants. FERC said the investment may be a contributing factor in the increased deployment of new demand response programs.

Governments at the federal, state and local level continue to address barriers to demand response. Time-based pricing in several states is enabling customers to better manage their electricity consumption and associated costs, the report said. “Several state commissions have recently taken action requiring utilities in their states to implement time-based rate structures for their customers, partially based on the expectation that advanced metering infrastructure will be fully deployed in the near future,” FERC staff said in the report.

New information on customer engagement and consumer behavior is expected to come from the Department of Energy’s  Smart Grid Investment Grant program — five reports related to consumer behavior studies are expected to come within the next year when the agency publishes all its findings. “The studies will provide new information for improving demand response program designs, implementation strategies, and evaluations, as well as facilitating customer education and overall program engagement."