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Advancement of Smart Grid – April 2010

Smart Grid Program Experience

US Utilities

Focused on Pepco Holdings. Inc (PHI)

Sunil PancholiSmart Grid Program Manager

Advancement of Smart Grid | Page 1

Presentation Overview

• Presentation– PHI Company Overview

– Smart Grid Vision and Plans

– PHI’s Implementation Plans and Experience

– Depart of Energy Grants

– Program Management

• Additional Information on PHI’s Smart Grid Program– Smart Grid Vision and Evolution

– HAN Strategy, Interoperability and Cyber Security

– Key components of Smart Grid Program– A real life experience with Distribution Technology


Combined Service TerritoryTransmission & Distribution

Competitive Energy / Other

Who is Pepco Holdings, Inc.

PHI Investments

2

Regulated transmission and distribution is PHI’s core business.


Our Power Delivery Business

Note: Based on 2009 annual data

Gas778,000 498,000 123,000 547,000

26,549 12,494 N/A 9,659

N/A N/A 19,044 N/A

640 5,000 275 2,700

Delaware New Jersey

2.1 million 1.3 million .5 million 1.1 million

Peninsula

Electric

Power Delivery

of Delmarva District of Columbia, major portions of Prince George’s and Montgomery Counties

Electric Electric

Major portions Northern Southern

Customers

GWh

Mcf (000’s)

Population

Service Area (square miles)

& Geography

Power Delivery

4 different states, Commission approval process very complex


PHI’s Smart Grid in WordsOur definition aligns with the DOE and EISA 2007 vision of Smart Grid

• Modernizes the grid while utilizing existing wires, transformers, and substations

• Enables deployment of renewable / green energy alternatives

• Brings new advanced meters, sensors, communications equipment, automation and computers to the existing grid

• Collects and transmits data to computers wirelessly

• Provides appropriate energy cost and usage information to customers and system performance to operators

• Promises significant advances in customer service, outage detection, service restoration, providing customer usage information, and reducing the number of estimated bills


PHI Smart Grid - in a Picture


• Puts decision making in the hands of customers‐ Improved information, programs and pricing options will allow customers to make informed

energy choices‐ Gives customers better information about their service and use

• Automatically accommodates changing conditions– Fault isolation, quick automatic restoration, advanced grid sensors– Reroute power flows, change load patterns, improve voltage profiles– Automatic notification for corrective actions and maintenance activities, which minimizes

workforce intervention

• Enables us to operate the system with greater efficiency– Better asset management by optimizing grid design and investments– Optimized grid operations, reduce losses– Greater reliability and security

• Promotes green energy initiatives and enables participation of distributed, renewable energy resources and plug‐in electric vehicles

Investing in the Smart Grid‐ US Utilities focusSmart Grid benefits to the customer…


The Complexities of a Smart Grid Implementation US Utilities Focus

A Smart Grid implementation involves:

• Multi‐layered investments by the government, utilities and end‐users

• Complex integration of a number of new technologies

• A rollout that takes several years (evolutionary)

• Necessary adoption of evolving technical standards for smart grid interoperability and cyber security

• Education and training of workforce

• Effective education and engagement of customers

Significant Work is underway in US Utilities Consortiums such as EPRI, NIST, EEI to advance Smart Grid

This is the most significant technology transformation since the grid was first created.


PHI’s Path to the Smart Grid ‐ Very similar in US Utilities

SGIG & Potential Workforce Training Grant

Continued Smart Grid advancement…

PHI began its Smart Grid planning in 2005 and has been progressing rapidly in its Smart Grid implementation.

PHI received 3 grants from US DOE for $168 m for Smart Grid and one for Workforce Training for $4.4 million


Smart Grid Program

Stimulus Funds Accelerate Smart Grid ProgramStimulus Funds Accelerate Smart Grid Program

TotalTotalGrantGrant

(In Millions)(In Millions)

Delmarva Power DEDelmarva Power DE $105.6$105.6 ––

Delmarva Power MDDelmarva Power MD $89.9$89.9 ––

Pepco DCPepco DC $89.2$89.2 $44.6$44.6

Pepco MDPepco MD $209.6$209.6 $104.8$104.8

Atlantic City ElectricAtlantic City Electric $136.8$136.8 $18.7$18.7

TotalTotal $168.1$168.1

Workforce Training Grant

$4.4 million for training and $4.4 million for training and creating jobs to support smart creating jobs to support smart grid implementationgrid implementation

3 years programs – beginning April 2010, ending in 2nd Q 2013Smart Grid Implementation to continue beyond 2013 in some states

Smart Grid Grant: Advanced Metering Infrastructure (AMI), Distribution Automation (DA), Communication Infrastructure (CI) and Direct Load Control (DLC)/Demand Side management (DSM)


The 5 evolutionary steps to achieving the Smart GridSmart Grid Investment Grant (SGIG) funding accelerated this process

Step 1

Step 2

Step 3

Step 4

Step 5

Optimization:– Capability of real‐

time optimization of distribution network performance

– Decisions based on near real‐time information, no longer only historical data

Analytical infrastructure:

– Development of new data analysis capabilities

– Increased ability to display information (in form of dashboards, etc.)

Integration:– Corporate IT

systems integrated to allow rapid processing of data

– Open architecture based design to facilitate sharing of information

Maturity

Capability

Intelligent devices infrastructure:

– AMI, or ‘Smart Meters’

– Distribution Automation Devices

– Demand Response Devices

– Substation IED Controllers

Communications infrastructure:

– Enterprise communication system for rapid and accurate transmission of data

– Integration of fiber and mesh broadband networks

Adapted from IBM

Accelera

ted by D

OE SGIGs

New Grant announced – due date is June 22


DLC

DSM

•Finance•Legal and Audit•Corporate Communications

•Government and Regulatory Affairs

Design AuthorityDA and CI

Smart Grid Steering Committee

ACE / DPL MD / DPL DE / Pepco MD / Pepco DC

Executive Leadership Team (ELT)

AMI

Project Management Office

•

PHI-Wide Cross-Functional Support of Implementation EffortAsset Management, Operations, Strategic Services, IT, Corporate Communications, PS&HR, Finance & Regulatory,

Federal Stimulus Coordination

Dynamic Pricing

Program Management –similar templates at SGIG Recipient Utilities


Risk Management – Risk Identification and MitigationTypical US Experience

Economic Risks

Regulatory concern to raise rates to fund Smart Grid projects

Significant capital outlay for Smart Grid/AMI and other competing projects

Customer Engagement Risks

Necessary stakeholders do not sufficiently understand Smart Grid benefits/technologies

Customers are not adequately educated about PHI’s offerings and programs

Technology Risks

Invested technology becomes obsolete before planned

Premature failure; mortality rate of the technology is higher than expected

Major design decisions precede completion of standards development

Data Privacy, Security and Safety Risks

Risk of cyber attacks

Unable to satisfy regulatory cyber concerns (both federal and state)

Undefined privacy and security policies

Sourcing, Procurement and Contractual Risks

Issues arising from interfaces/incompatibility between vendors/systems

Title/Risk of Loss, Escrow Agreements, patent challenges


PHI 2012 aspirations compared to today

22

33

22 22

33

22

11

00

This is where PHI aspires to be in 2012This is where PHI aspires to be in 2012

This is where PHI is for 2010, SGMM V1.1This is where PHI is for 2010, SGMM V1.1

44

Possible if exec. team chooses


PHI’s ASR System ‐ Demonstration

SubstationSubstation

Feeder 001

Feeder 001

Feeder 002

Feeder 002

Feed

er 0

03

Feed

er 0

03

Fault Occurs on

Feeder 001

Feeder 001 Locks out

1008 Customers out

ASR verifies switch status and fault location

Open Switch

Open Switch

Close Switch270 Customers out

Total Time: 51 Seconds

Close Breaker


Next Steps for PHI

• Execute Smart Grid programs and realize Smart Grid vision

• Engage and educate customers to maximize benefits of smart grid implementation

• Lead and support development of a secure grid by working with industry and federal consortiums to develop industry standards

• Encourage innovation in the marketplace through new capabilities of the smart grid, including renewable integration and electric vehicle grid infrastructure

Overall, success will be measured in the eyes of the customer!


Additional information on PHI’s Smart Grid Program

– Smart Grid Vision and Evolution

– HAN Strategy, Interoperability and Cyber Security

– Key components of Smart Grid Program

– A real life experience with Distribution Technology


Smart Grid Devices and Technologies

http://images.google.com/imgres?imgurl=http://4.bp.blogspot.com/_yJZXdLdmt9A/ST2urDIQ6VI/AAAAAAAAAf0/WWS1-2LplSI/s320/In-Home-Display.jpg&imgrefurl=http://solarjohn.blogspot.com/2008/12/smart-appliances-and-zigbee-alliance.html&usg=__T-QsFe75bb716BM-ZvGkkUx2USw=&h=229&w=320&sz=14&hl=en&start=11&um=1&tbnid=yfWbxALMYsUzOM:&tbnh=84&tbnw=118&prev=/images%3Fq%3Dcomverge%2Bin%2Bhome%2Bdisplay%26hl%3Den%26safe%3Dactive%26um%3D1


Our Integrated Smart Grid Communications Infrastructure Ensuring interoperability and cyber security at all levels

Smart Thermostat

Smart Meter

AMICollector

SF6Line SwitchWith RadioTransceiver

Electric Vehicles

Solar (or Wind)

(Transmission & Distribution)

Fiber OpticPower Delivery WAN


PHI Home Area Network (HAN) Strategy

• PHI’s near‐term focus is for utilizing the HAN to control a Programmable Controllable Thermostat (PCT) and In‐Home Display

• Future evolution will lead to the integration and control of on‐site renewable generation and Plug‐in vehicles.

• PHI recognizes that Smart Appliances will be available by 2015 and is tracking their development and considering their benefit to customers, likely penetration and level of utility involvement.

• Critical to this success is the ability to upgrade devices and operating firmware remotely to accommodate future capabilities.

• Customers will ultimately decide what functionality will be included in the HAN and when.

• All of these potential uses will require a secure and interoperable communications architecture within the HAN.

Near‐Term

To‐Be


• Appropriate selection and application of open standards

• Collaborations with industry standards‐making organizations such as IEEE, NIST, EPRI, together with other utilities technical developments and issues

• Actively engage technology vendors to address needs

• AMI Network solution contains significant bandwidth for future use, providing further flexibility to meet future needs

• Field acceptance testing before full deployment

• Involvement of industry experts in systems integration (e.g. IBM)

• Close monitoring of technology system performance

• Requirement that AMI system includes the ability to perform over the air firmware upgrades to protect against technology obsolescence.

Silver Spring Networks' Bandwidth Utilizationapproximately 80 Kilo Bits per second reserve capacity

Routing2.0% AMI

8.0% Network

Management0.5% Distribution

Automation10.0%

Future GridApplications

79.5%

PHI selection of vendors has enabled improved interoperability and future expansion capabilities

Interoperability & Upgradeability


PHI’s Smart Grid is being designed to protect and mitigate these threats.

We are using a security framework that:

– Takes a holistic approach to security, providing protection at all levels with the intent of

minimizing the impact/exposure to our systems and customer data

– Evaluates the appropriate level of security at each point in the network

I.e. the security level at a substation will be greater than that at a meter

– Regularly assesses risks and dynamically monitors for any malicious attacks to our networks

which may adversely impact our business, our customers and the public at large

– Provides the capability to dynamically change security rules, policies and procedures to ensure

that we remain agile against a changing risk environment

– Leverages security experts from other industries that have already been through these issues

– Uses design standards that include, for example, the Advanced Encryption Standard (AES) and

Control & Limit Access (Radius Authentication Standard)

– Extends the use of Firewalls to distribution substations and out to the feeder level as well,

both minimizing and isolating the impact of external threats. Traditionally, Firewalls were

placed only in centralized IT systems

PHI’s Smart Grid Security FrameworkA holistic approach


Advanced Metering InfrastructureMeter Capabilities & Vendor Selection

Vendor Selections

• Silver Spring Networks – AMI communication network & head end system

• Itron – meter data management system

• IBM – system integrator

• General Electric and Landis + Gyr – electric meter manufacturers

• Scope Services – meter installation contractor that hires local installers

Meter Capabilities

• Two‐way communication to the meter/gas Interface Management Unit (Gas has battery backups)

• HAN using ZigBee protocols (Electric only)

• Power quality reporting (Electric only)

• Hourly or 15 minute interval data recording for electric customers, depending on their rate

• Daily consumption for gas customers (hourly reads for gas once a day)

• Diagnostic Alarms, Tamper Flags, and Outage/Switch Counters (Electric & Gas)

• Time stamped outage and restoration reporting (Electric only)

• Remote programming and software upgrade capabilities (Electric & Gas)

• Backup memory in the meter/gas Interface Management Unit (Electric & Gas)

• Net energy metering capability (Electric only)

• Capable of supporting remote turn on/off under glass (Electric only)


Distribution Automation PHI’s Automatic Sectionalizing & Restoration Scheme – Improving Reliability

50% reduction in outages from deployment of Smart Grid

supporting distribution automation

Customers Experiencing a Sustained Outage

1169

1325

1169 12

79

1169

1169 12

79

292

170

1169

460

1169

292

460

0

200

400

600

800

1000

1200

1400

6/13/2

008

6/30/2

008

9/6/20

0811

/24/20

084/2

5/200

95/1

3/200

97/2

3/200

9

Occurrences Since June 13, 2008

Num

ber o

f Cus

tom

ers

without ASRwith ASR

Scheme Not Initiated - Type of Fault

Scheme Not Initiated - Communication Error

• Goal is create “self‐healing” distribution feeder from the substation to customers

• Reduces sustained outages caused by entire feeder outages

• Segments feeders into 2, 3, or 4 sections using remote controlled switches or automatic reclosers

How it works:

• Automatic Sectionalizing and Reclosing (ASR) of the feeder opens closed switches to isolate the problem

• ASR restores the other sections by reclosing the feeder breaker and/or closing open tie switches to other feeders

• Generally ASR operates in less than a minute – restoring most customers


Distribution AutomationTransition to Smart Substations

Analog Substations

• Separate relays for each event

• Limited situational awareness

• Visual confirmation of failure event

• Limited station communication to Control Center

Digital Substations

• Multiple events managed by Smart Relays• Increased situational awareness and

analysis of events• Increased status communication to Control

Center


Feeder Automation – Automatic Sectionalizing and Restoration Scheme

Customers Experiencing a Sustained Outage

1169

1325

1169 12

79

1169

1169 12

79

292

170

1169

460

1169

292

460

0

200

400

600

800

1000

1200

1400

6/13/2

008

6/30/2

008

9/6/20

0811

/24/20

08

4/25/2

009

5/13/2

009

7/23/2

009

Occurrences Since June 13, 2008

Num

ber o

f Cus

tom

ers

without ASRwith ASR

Scheme Not Initiated - High Magnitude Fault Alarm

Scheme Not Initiated - RTU Out of Scan

• Protects customers from sustained outages caused by feeder lock‐outs

• Segments feeders into 2, 3, or 4 sections using closed remote controlled SF6 switches or Automatic Circuit Reclosers (ACR’s) in the field

• For an fault in any one section, ASR opens closed switches to isolate the section

• ASR restores the other sections by reclosing the feeder breaker and/or closing open tie switches to other feeders

• Generally ASR operates in less than a minute• 1 year Field Test yielded 7 operations and over

50% improvement in feeder performance


Work Force Trends

• Craftsman

• Trouble oriented

• Complaints / orders

• Centralized reporting

• Live within the service territory

• Technicians

• Service oriented

• Analytical / communicators

• Mobile reporting & telecommunications

• Live further from service territory

Workforce of Today Workforce of the Future

The changing technologies are driving the business to be more creative around talent management, increase retraining of workforce and recruit field employees with IT

experience.

The smart grid is changing more than just the system we operate.It is changing the workforce that is operating the system.


PHI’s Smart Grid Implementation Status

• New Jersey (limited funding)

– DLC has been approved

– DA work has started

– AMI approval efforts started

• District of Columbia

– AMI deployment ready to start in Q4 2010


– Awaiting PSC approval to begin DLC work activities

• Maryland

– DLC deployment underway

– Awaiting PSC approval to begin AMI work activities, system requirements established


• Delaware (No DOE funding for this project)

– AMI deployment & establishment of regulatory asset approved

– Meter installation underway; started in Q4 2009

– DA being planned

– DLC not approved yet

27

Total Smart Grid Project Costs

$631 million planned for 2009‐2014

PHI’s Smart Grid programs include advanced metering, distribution automation and demand response systems

Documents

Smart Grid Program Experience US Utilities Focused Pepco ...sari-energy.org/oldsite/PageFiles/What_We_Do/... · Electric Power Delivery ... Smart Grid Grant: Advanced Metering Infrastructure