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Multistage and decentralized operations of Chapter | 16 429

for the regulation market, considering the limits of the fleet size and V1G
power and flexibility. The DBP revenues are shown in Table 16.2.

16.4.4 Peak-day pricing participation

Participating in the PDP program, the annual electric bill savings were
expected to improve as the monthly peak demand and part-peak demand
were partially protected by the capacity reserve level (CRL), which was
required for PDP program enrollment. Specifically, as modeled by
Eqs. (16.13) (16.15), the monthly peaks above the CRL received PDP cred-
its, whereas the energy usage not protected by CRL was billed with a fixed
PDP rate. PDP events were only issued during summers, and only peak and
part-peak demands were considered. The monthly PDP benefit was calcu-
p pp
lated as R 1 R 2 C PDP . As shown in Fig. 16.9, PDP benefits for sum-
PDP PDP
mer months in the year of 2016 were computed with varying CRLs. For the
months with only one PDP event, that is, August and September, PDP credits
dominated the total benefit, which decreased as the CRL increased. On the
contrary, event energy charge became dominant in the months with more
PDP events since there was less unprotected energy usage as the CRL
increased between 10 and 60 kW. As CRL increased greater than 60 kW,
the month benefits decreased because of the weaker protection by CRL.
In addition, the annual total PDP benefit varied with the CRL with the opti-
mal CRL value close to 40 kW.

500
Jun. 2016, 5 PDP events
400 Jul. 2016, 5 PDP events
Aug. 2016, 1 PDP event
Sept. 2016, 1 PDP event
300
Annual, 12 PDP events
PDP revenue ($) 100 0
200

–100
–200

–300
0 20 40 60 80 100 120 140
Capacity reserve (kW)
FIGURE 16.9 Impact of capacity reserve on peak-day pricing (PDP) benefits.