CEA Demand-Side Management Strategies 5 — Questions and Answers
Question 1: A utility implements a behavioral DSM program sending customers monthly home energy reports comparing their use to efficient neighbors. This approach is based on:
- Critical peak pricing theory
- Social norm marketing and normative feedback (Correct answer)
- Direct load control technology
- Decoupling revenue mechanisms
Correct answer: Social norm marketing and normative feedback
Home energy reports leverage social norm theory—showing customers how their usage compares to similar efficient neighbors motivates behavioral conservation.
Question 2: Utility 'decoupling' mechanisms support DSM investment by:
- Linking utility profits directly to kWh sales volume
- Separating utility revenue from electricity sales volume so efficiency doesn't reduce profits (Correct answer)
- Requiring utilities to pass DSM savings directly to shareholders
- Eliminating demand charges for efficient customers
Correct answer: Separating utility revenue from electricity sales volume so efficiency doesn't reduce profits
Decoupling breaks the link between utility profits and kWh sales, removing the financial disincentive for utilities to promote energy efficiency.
Question 3: Which factor most significantly increases the 'snap-back' load following direct load control of residential air conditioners?
- Low ambient outdoor temperatures
- Short control event duration
- High thermal mass in the building envelope
- Long control event duration exceeding thermal comfort limits (Correct answer)
Correct answer: Long control event duration exceeding thermal comfort limits
Extended control events allow indoor temperatures to drift beyond comfort thresholds, causing many units to simultaneously restart at full capacity when the event ends.
Question 4: Under FERC Order 745, demand response resources in wholesale electricity markets must be compensated at:
- 50% of the locational marginal price (LMP)
- The full locational marginal price (LMP) when it is cost-effective (Correct answer)
- A fixed capacity payment regardless of market conditions
- The retail electricity rate minus transmission charges
Correct answer: The full locational marginal price (LMP) when it is cost-effective
FERC Order 745 requires that demand response resources providing comparable value to generation receive the full LMP when participation is cost-effective for the system.
Question 5: An energy auditor recommends variable frequency drives (VFDs) on HVAC fans as a DSM measure. The primary benefit of VFDs is:
- Improving power factor to above unity
- Reducing fan speed at part-load conditions to save energy proportional to the cube of speed (Correct answer)
- Enabling remote utility control of fan operation
- Eliminating reactive power from motor circuits
Correct answer: Reducing fan speed at part-load conditions to save energy proportional to the cube of speed
Fan power follows the affinity laws—power varies with the cube of speed, so small speed reductions yield large energy savings at part-load conditions.
Question 6: Which DSM program design element best addresses the 'information barrier' to energy efficiency adoption?
- Low-interest financing for equipment upgrades
- On-bill financing programs
- Energy audits and benchmarking services (Correct answer)
- Rebates for high-efficiency equipment purchases
Correct answer: Energy audits and benchmarking services
Energy audits and benchmarking services provide customers with specific information about their energy use and cost-effective upgrade opportunities, directly addressing the information gap.
Question 7: In demand-side management planning, 'achievable potential' differs from 'technical potential' because it:
- Includes only measures with simple paybacks under two years
- Accounts for market, behavioral, and program delivery constraints (Correct answer)
- Is calculated assuming perfect information and zero cost barriers
- Excludes measures that require utility incentives
Correct answer: Accounts for market, behavioral, and program delivery constraints
Achievable potential estimates the DSM savings realistically attainable given real-world market barriers, customer adoption rates, and program delivery limitations.
CEA Demand-Side Management Strategies 5
A utility implements a behavioral DSM program sending customers monthly home energy reports comparing their use to efficient neighbors.
This approach is based on: