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SMUD's Small Business Summer Solutions Research Pilot

Participation Options

The Summer Solutions Research Pilot will offer two peak load reduction options. Both options involve "critical events" - 12 days during the summer on which SMUD will simulate a peak emergency and request load reductions. These events will always occur between 4 and 7 p.m., and participants will be notified one day in advance. If you choose to have a Summer Solutions thermostat installed, you can automatically pre-cool your building before the event hours, and then increase the setpoint (as you choose) at the onset of the event period. Participants can enable or disable the pre-cooling strategy at any time.

Participants can choose the program option that suits their business needs best:

  • Option A is similar to SMUD's residential Peak Corps program: during events, your Summer Solutions thermostat setpoint will automatically increase by 2 or 4 degrees (your choice).
  • Option B uses a new time-varying rate to reward all efficiency, load shifting and peak load reductions.

SMUD bill savings/earnings for Options A and B are expected to be similar for similar energy savings actions. The main difference between the two options is that Option A allows only air-conditioning savings and limits control of air-conditioning during events, while Option B allows savings from any end use (lighting, etc) and unlimited flexibility in whether, on what days and how you respond to events. 

Option A: Summer Solutions Thermostat

Participants that choose Option A will remain on the GSN rate, but  must have a Summer Solutions thermostat installed and programmed to respond to critical events. During critical events, the thermostat setpoint will automatically increase by 2 or 4 degrees - as chosen by you in advance.  Those choosing a 4-degree offset will earn an additional $10 off their monthly bill. Those choosing a 2-degree offset will earn an extra $5 off their monthly bill. Out of the 12 events, participants will be allowed to alter (or "override") the temperature settings one time without penalty. 

Option B: Summer Solutions Rate (with optional Thermostat)

Participants that choose Option B will be put on the Summer Solutions rate, which is lower than the GSN rate in 86% of the summer hours. During critical events, the peak price increases to signal the need for energy use reduction. (Note that event hours comprise only 1% of the summer hours). During this time, participants are asked to reduce electricity use in any way that makes sense for their business. For example, restaurants might lower the lighting during this time, while offices or retail might prefer to reduce the air conditioning load slightly - by raising the temperature a few degrees. For the average GSN customer, a 2-degree setpoint increase is expected to result in about $5 savings per month, while a 4-degree setpoint increase is expected to result in about $10 savings per month. Summer Solutions thermostats are recommended but not required for Option B participants.

The following two charts show how the experimental Summer Solutions rate for Option B compares to your existing small business rate. 

On weekends and holidays, the experimental rate is lower than your existing rate in all hours. So if your business is open on the weekend, you can take advantage of these low rates.

On weekdays, the experimental rates are lower in all hours except during SMUD's peak period, from 4 p.m. to 7 p.m. One of the main goals of this research pilot is to help you reduce your electricity usage, especially during those peak hours. Compared to your current GSN rate, these experimental rates will provide you with increased savings on your electricity bill for every peak kWh you save.

In addition, the Summer Solutions rate involves a Critical price of 57.2 cents per kWh that will be in effect during Critical Events - about 1% of the summer hours, as needed by SMUD. During these hours we ask that you shift or reduce electricity use to the extent possible, and will work with you to devise strategies for maximizing your savings.

The following two tables summarize the details of the GSN and Summer Solutions rates. 

Price Tier Time Period Existing   GSN Rate   (Option A) Summer Solutions Rate (Option B) % of summer hours
1-Low Every day: 10 pm - Noon  $      0.1127  $     0.0852 60%
2-Medium

Weekdays: Noon - 4 pm

                   7 pm -10 pm

Weekends: Noon -10 pm

 $      0.1127  $     0.0987 31%
3-High Weekdays: 4 pm - 7 pm  $      0.1127  $     0.1311 8%
4-Critical 12 Events: 4 pm - 7 pm  $      0.1127  $     0.5715 1%

 


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Please contact Josh Rasin or Karen Herter for more information.