RE: [energyinterop] DR Program Terms

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 | 
*:  | : Website:  http://www.schneider-electric.com

 

From: Wilson, David C (St. Paul) 
[mailto:] 
Sent: Wednesday, March 10, 2010 2:02 
PM
To: 
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.

 

http://www.google.com/search?q=non+contractual+courtesy

 

Thanks!

Dave

 

David Wilson

Enterprise Solutions Portfolio Manager

Trane Commercial Systems

Ingersoll Rand

 

Office: +1.651.407.4168

Mobile: +1.612.741.2759

Email: 

www.trane.com

 

 

  
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