DEPARTMENT

POLICY & PROCEDURE

RESIDENTIAL TOD PILOT

DPP NUMBER DPP 500 P III-431

EFFECTIVE DATE 09/22/2020 SUPERSEDES New

APPROVED BY

1.0 PURPOSE

1.1 To establish rules for the Residential Time-of-Day (TOD) Pilot, a small-scale, opt-in pilot program offered by the City Light Department ("Department"). The pilot tests rate incentives that discount rates during low demand hours and have a premium rate during high demand hours.

2.0 PROGRAM DESIGN

2.1 Enrollment Criteria. Pilot participants must meet the following criteria:

a) Be currently on or qualify for a City Light residential rate schedule

b) Have no overdue balance

c) Have average monthly consumption over 750 kWh a month based on 2019 billing data

d) Have a City Light AMI meter

e) Have access to the internet to complete periodic surveys and view monthly reports

f) Are not enrolled in the Utility Discount Program, or the Net Metering Program (solar customers).

2.2 Enrollment Process. Participants will enroll online and will be notified via email upon successful enrollment. A confirmation letter will also be mailed to the physical address listed on the account.

2.3 Size of the Program. This pilot program will be capped at 200 participating customers.

2.4 Participant Selection. A lottery system will be used to select the participants once the enrollment period has closed. A number of quotas and caps will be used to provide a diverse customer make-up. All information will be self-reported by the customer on the enrollment form. The following criteria will apply:

a) At least 50 customers with household annual income under $75,000

b) At least 50 customers who rent their home

c) No more than 50 customers who charge electric vehicles at their home, with the first 25 spots being held for customers already participating in City Light's Residential Charging Program

2.5 Duration. This pilot program may commence any time after the approval date of this document. The pilot will end on December 31, 2022 or when a regular opt-in TOD rate becomes available for all customers, whichever comes first.

2.6 Unenrollment. Participation in this program is optional and customers can unenroll from this program at any time for any reason. If either by customer notification or other means the Department discovers that the customer is not eligible, the Department will remove the customer from pilot and return the customer to their default residential rate.

3.0 RATES

3.1 Rate Design. Incentives in the form of time-of-day price signals will be provided to participating customers. For simplicity, all participating customers will have the same effective TOD rate structure regardless of the jurisdiction they reside in. Therefore, incentives will vary depending on the customer's default residential rate code (RSC, RSH, RSBetc.). Table 1 below shows the effective TOD rates, as well as an example of the rate incentives for customers on RSC (Seattle) rates.

TABLE 1: TOD INCENTIVE AND EFFECTIVE RATE

Base Service Charge First Block End

Block Effective TOD Pilot Rate

RSC Residential Rate (Seattle) $0.1797 $0.0970 $0.1287

Pilot Price Signals / Incentives

Off-peak per kWh - $0.0306 -$0.0623 $0.0664

Mid-peak per kWh +$0.0137 -$0.0180 $0.1107

Peak per kWh +$0.0580 +$0.0263 $0.1550

Base Service Charge per Day $0.0000 $0.1797

Off-Peak: midnight - 6 am

Mid-Peak: Monday Saturday 6 am - 5pm, 9 pm midnight, Sunday and Holidays* 6 am - midnight

Peak: Monday - Saturday 5 pm- 9 pm (excluding Holidays*)

*Holidays: New Year's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, Christmas Day

Rates shown do not include RSA surcharges

3.2 RSA Surcharge. Any RSA surcharges will be applied as a percentage increase to each component of the effective time-of-day rate.

Bill True-up. In accordance with Ordinance 125957 a participating customer's bill will be no higher than it would be on their default rate schedule. If a customer's consumption patterns do not create a discount under the pilot TOD rate structure, their bill for that cycle will be based on the default residential rate. All participating customers will be transferred to a monthly billing cycle if not already on one.

4.0 REFERENCES

4.1 City of Seattle Ordinance 125957

4.2 Seattle Municipal Code 21.49.030

Distribution: Posted online @ http://www.seattle.gov/light/policies and SCL Internal SharePoint site

REVISION HISTORY

DATE CHANGES MADE REVISED BY

09/02/2020 This DPP is to establish rules for the Residential Time-of-Day (TOD) Pilot, a small-scale, opt-in pilot program offered by the Department under authority conferred by Ordinance 125957. The pilot tests rate incentives that discount rates during low demand hours and have a premium rate during high demand hours.

Author: Carsten Croff, Chris Ruffini

Coordinator: Kim Kinney