AEP Texas – Load Management Standard Offer Program Guidelines

AEP Texas – Commercial Load Management (CLM) Program

Program Season

Winter Load Management Program: December - February
Summer Load Management Program: June - September

Program Hours

Winter Load Management Program: 24 x 7
Summer Load Management Program: 1:00 PM - 7:00 PM CT, Non-Holiday Weekdays

Dispatch Notice

30 minutes

Dispatch Trigger

The AEP Texas Load Management Standard Offer Program is an emergency demand response program used to maintain electric grid reliability. AEP Texas issues dispatches during system-wide or local emergencies and times of critical peak demand. Your participation is vital to ensuring a reliable power grid and preventing blackouts.

Participation Options

Curtail electrical load or transfer load to a qualified back-up generator or storage system. Participants in this program may not take part in any other program (e.g. ERCOT ERS) during program hours.

Enrollment Strategy

Enel will work with you to determine your site’s enrollment value based on the electrical load pattern at your facility, performance in your dispatch readiness test, and information regarding your site’s operations. Enel may adjust this value based on dispatch performance history and other feedback.

Audit Requirements

AEP Texas requires a single program-wide audit during each program season to demonstrate our collective ability to deliver an aggregated energy reduction target. AEP Texas will schedule these audits at their discretion within the program hours of each program season.

Dispatch Timing & Duration

Winter Load Management Program: Dispatches may occur any time, however, typical peak conditions on the ERCOT system during the winter are between 6:00 a.m. – 10:00 a.m. CPT and 6:00 p.m. – 10:00 p.m. CPT. A dispatch will not exceed 4 hours.

Summer Load Management Program: Dispatches may occur any time in the 1:00 p.m.– 7:00 p.m. CPT window. Peak conditions on the ERCOT system are typically 4:00 p.m.– 6:00 p.m. Dispatches are most likely to occur around these peaks. A dispatch will not exceed 4 hours.

Baseline Definition

Winter Load Management Program

There are two main components to the program baseline:

• Shape: Your baseline shape looks at the highest 8 usage days of the 10 business days prior to the dispatch. Your average demand is calculated in 15-minute intervals.
• Height: AEP Texas will adjust your baseline to reflect real-time consumption during the 2-hour window prior to the dispatch notification time.

Key Takeaway: If your site’s operations in the preceding 10 business days differ significantly from the dispatch day, your baseline and earning potential may be affected.

Summer Load Management Program

There are two main components to the program baseline:

• Shape: Your baseline shape looks at the highest 5 usage days of the 10 business days prior to the dispatch. Your average demand is calculated in 15-minute intervals.
• Height: AEP Texas will adjust your baseline to reflect real-time consumption during the 2-hour window prior to the dispatch notification time.

Key Takeaway: If your site’s operations in the preceding 10 business days differ significantly from the dispatch day, your baseline and earning potential may be affected.

Performance Measurement

AEP Texas measures performance for every 15-minute interval during a dispatch by averaging the difference between your demand and adjusted baseline. Enel may adjust your event performance further based on minimum delivery requirements, as outlined in your agreement.

Keys to Success:

• Begin participation as soon as practical before the dispatch start time to ensure you are able to reach your target on time.
• If you’re falling behind, any amount of over-performance can help offset underperformance during a dispatch.

Payment Calculation

We base your payment on your site’s average performance across all dispatches in the program season. Once AEP Texas confirms rates, payment equals the average delivered kW multiplied by your capacity payment rate, as outlined in your agreement.

To achieve your full earning potential, be sure to maintain your energy reduction target throughout every dispatch in a season. Underperformance may result in reduced enrollment and earning potential for future seasons.