Austin Energy staff brief commissioners on virtual power plant, battery program and solar program changes

Austin Energy staff briefed the Resource Management Commission on progress toward a virtual power plant (VPP) and a plan to expand battery programs alongside solar incentives. Staff described multiple pathways for deployment, technical and safety requirements, customer incentives and open policy questions the utility is studying.

Richard Genesee, vice president of customer energy solutions for Austin Energy, framed the presentation as an integrated effort across utility groups and said the program will pair an upfront incentive with ongoing performance payments tied to customer enrollment and event performance. Tim Harvey, customer renewable solutions manager, and Lindsey McDougall, manager of demand response and technical services, delivered the briefing and fielded commissioner questions.

Key elements explained by staff - Current assets and near-term plans: Austin Energy currently has about 15 megawatts of distributed batteries in its service territory and has an existing VPP that aggregates thermostats and EV chargers. Staff said the utility is preparing to integrate solar-coupled batteries and to move toward a central DERMS (distributed energy resource management system) that will coordinate multiple edge DERMS systems and internal utility platforms. - Customer incentives and program design: Staff described a two-part incentive model: an upfront incentive to lower the battery purchase barrier and an ongoing pay-for-performance incentive tied to how customers participate in demand-response events. Staff said upfront incentives will be conditioned on customer participation in the program. - Program types considered: Austin Energy is evaluating two models: a VPP where the utility controls batteries and pays performance incentives, and a bill-credit/rate approach in which customers retain direct control and receive credits if they meet performance parameters. Staff noted the VPP provides better telemetry and control but involves platform fees from third-party aggregators. - Cost-effectiveness and fees: Lindsey McDougall said the utility will run cost-effectiveness analyses and only propose programs that pass that test. Tim Harvey said platform fees for aggregator/DERMS providers are substantial and must be balanced against avoided costs the VPP creates. - Avoided-cost opportunities: Staff listed several avoided-cost benefits from a VPP and batteries, including energy arbitrage (charge low, discharge high), avoiding day-ahead market purchases, reducing ERCOT 4CP (peak transmission charges), potential participation in ancillary services, and non-wires alternatives that could defer distribution upgrades. - Safety, inspection and interconnection: Austin Energy described updated interconnection guidelines and in-person inspection protocols. Staff said remote-only inspections performed during COVID did not adequately identify life-safety issues and that the utility will continue on-site inspections for now. - Current programs and pilots: Staff named existing programs — Power Partner Thermostat, Power Partner EV and Power Partner programs for multifamily — and reported a recent off-season $75 enrollment bonus for thermostats and a new $25 yearly retention incentive. Staff said they are exploring converting some incentives to pay-for-performance models. - Customer retention and experience: Staff cited survey results showing discomfort during events as a primary reason for customer opt-out. They are testing shorter events and other control strategies to reduce discomfort and improve retention. - Resilience hubs and microgrids: Staff described resilience-hub pilots in east Austin with solar, batteries and backup generation, and a nearly ready microgrid at Camp Mabry.

Commissioner questions and staff responses - Platform and third-party strategy: Commissioners asked whether the utility would build its own systems or contract with third-party providers. Staff said multiple approaches are being evaluated and that nothing is off the table; the utility is negotiating with existing providers while keeping alternatives available. - Non-wires alternatives: Commissioners asked how Austin Energy will quantify distribution deferral value. Staff said third-party analysis and additional grid-hosting-capacity modeling are underway but the utility has not yet fully quantified non-wires avoided costs. - Inspections and failure rates: Commissioners asked about high failure rates in on-site inspections for solar installations; staff said average contractor fail rates are about 20%, attributed to installation complexity and workforce turnover. Staff said most failures can be corrected on-site and that the inspection wait time remains under two weeks.

What the commission asked for next Commissioners requested the utility return with more detailed analyses at a future meeting, including cost-effectiveness results, proposed incentive levels, clarity on platform fees and additional detail on non-wires alternatives. Staff indicated further studies and an RFP for additional analysis are underway; no formal policy action was taken at this meeting.

Provenance - Presentation introduction and scope: "Staff briefing on battery program launch update including DERMS DERMS and the use of virtual power plants by Tim Harvey... and Lindsey McDougall..." (meeting agenda excerpt introducing the briefing). - Presentation conclusion: "That wraps it up." (Tim Harvey concluding remarks and commissioners’ questions that followed.)

Speakers - Richard Genesee — Vice President, Customer Energy Solutions, Austin Energy (government/staff). - Tim Harvey — Customer Renewable Solutions Manager, Austin Energy (government/staff). - Lindsey McDougall — Manager, Demand Response and Technical Services, Austin Energy (government/staff). - Commissioner Schwartz — Commissioner, Resource Management Commission (government). - Commissioner Silverstein — Commissioner, Resource Management Commission (government). - Commissioner Davis — Commissioner, Resource Management Commission (government).

Clarifying details - Current distributed battery capacity in Austin service territory: ~15 megawatts (Tim Harvey). - Pilot incentives: recent one-time $75 off-season enrollment bonus for Power Partner Thermostat and a proposed $25 annual retention incentive (Lindsey McDougall). - Planned workforce/roles tied to Solar for All (separate agenda item): three grant-funded positions once funds are available (Tim Harvey). - Inspection fail rate: average contractor fail rate roughly 20% across recent periods; typical reinspection turnaround under two weeks (Austin Energy staff).

proper_names - Austin Energy (agency) - DERMS (technology/platform) - Power Partner Thermostat (program) - Power Partner EV (program) - Camp Mabry microgrid (facility)

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