Deemed Savings Estimates for Legacy Air Conditioning and WaterHeating Direct Load Control Programs in PJM Region

Abstract

During 2005 and 2006, the PJM Interconnection (PJM) Load Analysis Subcommittee (LAS) examined ways to reduce the costs and improve the effectiveness of its existing measurement and verification (M&V) protocols for Direct Load Control (DLC) programs. The current M&V protocol requires that a PURPA-compliant Load Research study be conducted every five years for each Load-Serving Entity (LSE). The current M&V protocol is expensive to implement and administer particularly for mature load control programs, some of which are marginally cost-effective. There was growing evidence that some LSEs were mothballing or dropping their DLC programs in lieu of incurring the expense associated with the M&V. This project had several objectives: (1) examine the potential for developing deemed savings estimates acceptable to PJM for legacy air conditioning and water heating DLC programs, and (2) explore the development of a collaborative, regional, consensus-based approach for conducting monitoring and verification of load reductions for emerging load management technologies for customers that do not have interval metering capability.