Transcript panel 19

Speaker: Michael Munson
Company: Metropolitan Energy
The Chicago Commercial Office Building Perspective
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260+ Buildings
Private, Institutional,
Government/Public
170+ Affiliate
Member Companies
125 Million Sq. Ft.
of Office Space
~5% of ComEd’s
Load
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Ease of Information Access and Use
Measure & Verify Improvements & Efficiency
Better Investment Decisions
Proof of DR Participation in Marketplace
New Technologies, Infrastructure
Monetize, Automate, Optimize, Innovate
Continuously Develop & Prove Business Case
Energy Use Scenarios
Energy Supply Projection
Source: Forecasted Reserve Margin PJM RTO
(as of June 8, 2009)
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Information, Information, Information
Real-Time Data Access (real, real-time)
Customer Usage and Market Information
Market Transparency
Control and Flexibility Incentives
Market Requirements & Design
Replicability – for Building Portfolios
Price
Supply
P1
ΔP
P2
D1
ΔQ
Q1 Q2
D2
Quantity
Reducing Demand
Small changes in demand can result
In large changes to price.
$210
$190
$170
$150
$130
$110
$90
$70
$50
$30
$10
-$10
-$30
8:30 PM
June 16
9:00 PM
June 16
9:30 PM 10:00 PM 10:30 PM 11:00 PM 11:30 PM 12:00 AM 12:30 AM 1:00 AM 1:30 AM
June 16 June 16 June 16 June 16 June 16 June 17 June 17
June 17 June 17
PJM Price Volatility
PJM prices can vary based on market forces,
going from about $210 to $35 below $0 in a very short time.
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Defining Smart Grid
◦ Definitions are static
◦ Smart Grid is dynamic
◦ Policy should enable, not dictate innovation
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Information, Information, Information
◦ The grid relies on informed decisions
◦ Better information = better decisions
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Other Policy Concerns
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Market Recognition of Consumers
Marginal Costs vs. Average Costs
Rate Design Improvements
Market vs. regulation for consumer protections