A Successful Cool Storage Rate

Abstract

Houston Lighting & Power (HL&P) initiated design and development of its commercial cool storage program as part of an integrated resource planning process with a targeted 225 MW of demand reduction through DSM. Houston's extensive commercial air conditioning load, which is highly coincident with HL&P's system peak, provided a large market for cool storage technologies. Initial market research made it very clear that a special cool storage rate was required to successfully market the technology. Development of the rate required an integrated, multidepartment effort and extensive use of DSManager, an integrated resource planning model. An experimental version of the rate was initially implemented as part of the initial phase of the cool storage program. A permanent rate, incorporating lessons learned from the experimental rate, was then developed for the long term implementation of the program. The permanent rate went through a lengthy regulatory approval process which included intervention by a local natural gas distribution company. The end result is a very successful cool storage program with 52 projects and 31 megawatts of demand reduction in the first three and one-half years of program implementation.