University California Santa Barbara

Demand ResponseMay 9, 2008

United States◦ 40 Million People◦ 8 States

Canada◦ 10 Million People◦ 7 Provinces

Cost $6.0 to 10.0 Billion

North East Blackout 2003

Power Grid Infrastructure 50 to 100 years old

Forecasted growth way under estimated Did not anticipate new electronics

◦ Computers◦ Air Conditioners◦ Game Boys◦ Televisions ◦ Cell Phone Chargers◦ Passive Drain

Cell Phone chargers, TV’s, Microwave, DVDs Cell Phone chargers (not charging phone) consume

over 900,000 Mw-hours/year

Why do we need Demand Response?

Grid Overloaded during Summer Months Power consumption continues to grow over

2% per year Reduce burning fossil fuels, and generating

greenhouse gasses Eliminate Spinning Reserve

Why do we need Demand Response?

Power can be disrupted during Summer General public does not understand

shortage of power Large commercial and industrial users

consume 70% of power Commercial and industrial users have not

understood their role in power management◦ Have the ability to mitigate rolling blackouts

Residential customers are at work or school

General Public Un-informed

Without demand response CAISO does not have enough control of grid

Rolling blackouts are still a threat Large consumers can change rolling

blackout risks

Commercial and Industrial

Three methods that help power consumption and generation◦ Efficiency

CFL, high efficiency A/C ect.◦ Wind

Generates non-polluting clean energy Out of sequence with peak demand

◦ Solar Best method that helps peak reduction

Can these methods keep up with 2% growth in power consumption?

Solar, Wind, Efficiency?

Building new power plants is not an option◦ 3% to 7% of the year there is a problem on the

Grid No problem in October, small time during summer

◦ Not feasible Cost Pollution

◦ Transmission lines Cost Permits

We need to better manage our grid◦ Energy act 2005

Build New Infrastructure?

Reduce energy costs◦ Curtail interruptible load at peak price◦ User Selected

Air Conditioners Lights Non-critical machines, pool pumps ect

◦ Critical Loads are not affected Computers/Servers Inner area lights Ventilation

What is Demand Response?

User selected Loads◦ Critical and Non-critical

If CAISO calls Stage 2 Emergency ◦ Mica-Tech system sends signal to user Energy

Management System EMS to reduce selected◦ Pre-cooling

CAISO will notify day ahead warning Set Thermostat 2 deg cooler prior to event

How Does it Work?

One Event per Day 4 hours maximum Will not exceed 120 hours per year

How Often?

Power Grid System Security and Reliability◦ Transmission Substation

Highest level of SCADA Power Grid Control 2000 and 2001 Rolling blackouts

◦ Utilized Mica-Tech Network (over 20,000 Mw) Single Largest Demand Response Action with Mica-

Tech equipment

Why Mica-Tech?

SCADA-Supervisory Control and Data Acquisition◦ 50,000 Sq Mi territory Southern California◦ Wyoming, Colorado, New Mexico, Nebraska and

Arizona◦ Over 10 years live grid

Reliable and Secure◦ Transmission Substations and Hydro sites (Dams)

Mica-Tech Inc.

Secure not internet based◦ CIA: Hackers to Blame for Power Outages

Hackers literally turned out the lights in multiple cities after breaking into electrical utilities and demanding extortion payments before disrupting the power, a senior CIA analyst told utility engineers at a trade conference.

◦ Bank hack attacks up 81% Mica-Tech System private satellite network

◦ Over 10 years cannot be hacked◦ Demand Response should not put operations at

risk CAISO has been hacked CAISO/Mica-Tech Joint Project

Why Mica-Tech?

No Cost- Installation and Management Technical Assistance

No Training of Personal -fully automatic No Penalties Cash incentive

Program Details

Could work to cut usage just like power Where?

◦ Pump water back over dam◦ Farms not economically feasible crops die◦ Lawns? Yes

Limit use Schedule best time to water Cut use entirely

Demand Response Water?

University California Santa Barbara