SNOHOMISH COUNTY PUBLIC UTILITY DISTRICT BOARD OF ... · BOARD OF COMMISSIONERS SPECIAL MEETING Everett Headquarters Building, 2320 California Street Special Meeting July 16,

SNOHOMISH COUNTY PUBLIC UTILITY DISTRICT

BOARD OF COMMISSIONERS SPECIAL MEETING

Everett Headquarters Building, 2320 California Street

**Special Meeting**

July 16, 2019

CONVENE SPECIAL MEETING – 8:00 a.m. – Commission Meeting Room

The Board of Commissioners of Public Utility District No. 1 of Snohomish County, Washington,

will hold a SPECIAL MEETING on TUESDAY, July 16, 2019, in the Commission Meeting

Room located in the District Headquarters Building, 2320 California Street, Everett, Washington.

The SPECIAL MEETING will convene at 8:00 a.m. for a Workshop to Discuss Future Initiatives

of the Utility. It is anticipated the SPECIAL MEETING will adjourn at approximately 5:00 p.m.

ADJOURNMENT

Agendas can be found in their entirety on the Snohomish County Public Utility District No. 1

web page at www.snopud.com. The public is invited to attend. Parking and meeting rooms

are accessible for persons with disabilities. Contact the Commission Office at 425.783.8611

for special accommodations or additional information.

1/1

SNOHOMISH COUNTY PUD

UTILITY OF THE FUTURECommissionWorkshop7/16/19

AT PLACESAGENDA ITEM NO. 00.01


Agenda• Introduction

– SnoPUD UtilityoftheFuture– PUDMissionandourVisionoftheFuture– Customer+GridoftheFuture– Whymakechanges?– ValuetoourCustomers– ActionPlan:Howwe’llmakeithappen

• Initiatives&Programs– DERInitiative– EVInitiative– Solar– Customer‐scaleBatteryStorage– DemandManagement

• EnablingTechnologies– Grid‐scaleBatteryStorage– SmartGridControls&AMI

• CustomerExperience– CustomerSelf‐Serve– CustomerExperience

2

COMMISSIONWORKSHOP|JULY16,2019


SnoPUD Utility of the Future3



Snohomish PUD Mission

Wedeliveraffordablepowerandwatertoourcustomer‐ownersinasafe,environmentallysustainableandreliablemannerwhilesuccessfullynavigatingcomplexchangeinourindustry.

Weaccomplishthisbyempoweringourteamstoprovidequalityservicetoourcommunity,prudentlymanagingcostswhileinvestingforthefuture,andstrivingtoimproveeveryday.

4



Energizing Life In Our CommunitiesInthePUD’sVisionoftheFuture,We…• Addresstheevolvingenergyuses,distributedresourceflexibilityandoptimization,and

carbonreductionneedsofourcustomersandtheDistrictamidstdisruptiveenvironmental,social,andtechnologicalchangeintheelectricindustry.

• CollaboratewithDistrict,customer,andcommunitytoevaluatestrategicalternativesanddrivepolicy,programmatic,andtechnicalsolutionsthatbenefitallstakeholders.

• Supportincreaseddistributedgeneration,microgrids,andislandingcapabilities.• Enablemorecustomerstoachievenet‐zeroorparticipateincleanandrenewable

initiatives.• Flexiblymeetdemandforelectricvehicleloadwithlowcarbonelectricity.• Providemorecustomeroptionsforenergysavingsandvaluefordistributedandflexible

generationandstorage.• Facilitateloadshifting,peakmitigationinpartnershipwithourcustomers.

5



Customer of the Future

Expectations• Seamlesscustomerexperience

(consistent,effortless,intuitive)• Easy‐buttonself‐service• Pro‐activenotifications• Personalizedproductsandservicesthat:

– Automateorstreamlineenergysavings(mobileapps,smartdevices)

– Enablemetogeneratemyownelectricity(solar,storage)– Supportmyconnectedhomethroughthelatesttechnology– Enablemetocollaboratewithothercustomers(community

solar,friendlycompetition)

6


https://www.accenture.com/_acnmedia/PDF‐98/Accenture‐Winning‐The‐New‐Customer‐Infographic.pdf

https://www.accenture.com/_acnmedia/Accenture/next‐gen‐5/insight‐new‐energy‐consumer‐2017/Accenture‐NEC2017‐Main‐Insights‐POV.pdf


Grid of the Future7



Deloitte’s Future Utility Customer

https://www2.deloitte.com/insights/us/en/industry/power‐and‐utilities/digital‐transformation‐utility‐of‐the‐future.html

8


Energy Consumer Segmentation• LicensedfromAcxiomaspartofourresidentialcustomerdemographicsdatapackage• Assignscustomersintooneof13consumersegmentsbasedoncriticalhouseholdenergybuyer

capacities,attitudes,andbehaviors• Startingpointforunderstandinghowcustomersmayrespondtospecificnewprogramsand

servicesbasedon:

Means– Howmuchcapitalandassociatedsavingscapacitydoesahouseholdpossess?– Howmuchofthatcapitalmightaconsumercommitto“green”?

Motives– Howdobehind‐the‐meterimpactsalignwithconsumingbehaviorsaroundenergy‐intensive

householdassets(houses,cars)?– Willahousehold’spropensitytoleveragetechnologyplayintotheiradoptiondecision?

Opportunities– Willconsumershavethetime,moneyandfocustoexploreandactonnewoffers?– Dotheirsituationscreateotherdemandsonthesepersonalresourcesthatcrowdoutnewaccess?

9



Energy Consumer Segments at the PUD

26%

13%

11%10%

6% 6% 5% 5% 5% 4%4% 3%

2%

Green Investors Pragmatists PaybackInvestors

Creatures ofComfort

First Costers Hands-onBelievers

Unplugged BudgetWatchers

Show-meParticipants

Living in theNow

Green Activists Tech to Live TechFrontiersman

PUD 2017 PUD 2019 WA & OR

10


GREEN INVESTORSUpper income, middle‐age families dominated by high‐earners and growing new wealth with high economic stability. Capacity to invest, green minded, and technology early adopters. Most likely DER participants.

PRAGMATISTSSavers, doers, tech adopters. Living the upper‐middle class family life. Many in their core earning years, with dual incomes, or with elder parents in the home. Not the earliest of adopters, but will invest, participate, and be hands‐on.

PAYBACK INVESTORSMature families and couples with accumulated wealth and sustained financial investment. Capacity to invest, green minded, but biased against new technology adoption.

CREATURES OF COMFORTHealthy and stable upper‐middle class earnings. Living relatively larger on those paychecks than any other cluster. Biased against technology and green participation.


GreenInvestors PragmatistsPaybackInvestors

CreaturesofComfort

Age 36‐55 56‐65 56‐65 56‐65

Income $150,000+ $125,000‐ $150,000 $150,000+ $60,000‐ $70,000

NetWorth $2,000,000+ $250,000‐ $500,000 $2,000,000+ $50,000‐ $100,000

Education collegeorgradschool college collegeorgradschool highschoolorcollege

HomeType60%housewgasheat26%housewelec heat

7%condo

38%housewgasheat31%housewelec heat

12%apartment|11%condo


7%condo


19%apartment|15%condo

eBill 33% 28% 25% 24%

Payment 78% 75% 68% 66%

GreenAffinity

InvestmentCapacity

TechPropensity

ComfortConsumption


26% 13% 11% 10% 11


Example: Propensity to Purchase an EV

75%areGreenInvestors• Income>$150,000• Networth>$2,000,000• Highlyeducated• Marriedwithchildren• Age46‐55• 80%singlefamilywithgasheat• 84%paybillelectronically• 40%getaneBill

20%arePaybackInvestors• Income>$150,000• Networth>$2,000,000• Highlyeducated• Marriedwithnochildrenathome• Age56‐65• 73% singlefamilywithgasheat• 69%paybillelectronically• 73% getapaperbill


12

23,000customersmostlikelytopurchaseanelectricvehiclethisyear


Current Electric Vehicle Registrations 13


1,749

2,150

2,952

4,486

4,996

2015

2016

2017

2018

2019

Growth


Most Likely to Purchase an EV

23,250customers

Legend:

• GreenInvestors• PaybackInvestors

14


14


Existing Solar Installations1,970 customersLegend:

Residential CommercialSizedbynameplatecapacity


15


Known Smart Thermostats

1,860customersthathavereceivedarebate



Known Battery Back‐up Systems


41 battery+solarcustomers


Growth of Flexible Load ‐ Nationwide18



Value Proposition to the CustomerReliability&Resiliency• Reducedoutageimpactstocustomers• Resourceandgridplanningprocesses

arestrengthened– DistributedEnergyResourcesPlanning

Bill(HB1126)

EnvironmentalSustainability• Supporttheregion’stransitiontoward

renewableandzero‐carbonenergy– CleanEnergyTransformationAct(SB

5116)• CustomershiftfromNIMBYtoYIMBY• Electrification,EVadoptionincreasing• PUDcandeveloppilotstomeetcustomer

interestinstorage,net‐zeroenergy,andcarbon‐freeprogramsandrates

Affordability• PUDcanmeetcustomersincreasing

interestinchoiceandflexibilityatalowcostthroughrates,programs,renewableoptions

• Batterystorage,solar,andEVcostsaredecreasing

GridIntegrationtoIncreaseFlexibility+Controllability• Increaseflexibilityofloads,inpartnership

withcustomers,enablesincreasedreliabilityandrewardscustomersforpeakloadshifting/energyusage

• Increasecontrollability,leveragingin‐homeintelligentappliances,suchasAmazonvoiceassistance,tomakeenergymanagementeasier


19


Action Plan: How We’ll Make It Happen

1. Behind‐the‐metersolutionsandsmartgridthattogetherenableandmanageflexibleandcontrollableloads‐ Distributed Energy Resources Initiative, Electric Vehicle Initiative, Solar, Customer‐scale Battery Storage,

Demand Response

2. Optimizedprocessesandsolutionsthatdeliverreliable,cleanpoweratthelowestcostbythebestpeople‐ Grid‐scaleBatteryStorage,Smart Grid Controls & AMI

3. MaximizeCustomerExperiencebyenablingchoiceandprovidingfrictionlessinteractionswiththePUDforenergyandservices‐ Customer Self‐Serve, Customer Experience Initiative

20





Demand Response



21



DISTRIBUTED ENERGY RESOURCES (DER) INITIATIVE

KellyStrand


22


What are DERs?

• “Non‐emittingresourcesthatprovideelectricenergy,capacity,orancillaryservicestoanelectricutilityandthatarelocatedonthedistributionsystem….”‐ Clean Energy Standard ESSB 5116

• Usedtoprovidepower– ex:solar• Orreduce/managedemand– ex:energyefficiency,

managedelectricvehiclecharging

23


SolarPV

BatteryStorage

ManagedEVCharging

EnergyEfficiency

PeakDemandManagement


DER Initiative Objectives

1. Recognizethevalueandmanagetheimpactofcustomer‐sitedDERs.

2. BuildacohesiveplantosynchronizeDERnetimpactswithpowergenerationandacquisitiondecisions,capitalandoperationalgridmanagement,andconservationacquisition.

3. Overcomehistoricalsilosbetweenplanningandimplementationfunctions.

4. Developthe10‐YearUtilityoftheFutureVision.ProjectwhatanintegratedSnoPUDcouldlooklikein10years.

24



Cross‐functional Initiative

25


DERPlanningInitiativeknitstogethertheutility’sprogram,system,andresourcedecisionstoensurewecancreatethebestlong‐termoutcomesforthecustomerandthePUD.


DER Team

Customer&EnergyServices NewEnergyInitiatives‐ Solar,DR,EV Conservation CustomerExperience KeyAccounts

Distribution&Engineering SystemPlanning&Protection DistributionPlanning

Power,Rates&Transmission Rates PowerSupply&Scheduling

26


ITSProjectManagement CorporateCommunications Government&External

Affairs

Sponsors JohnHaarlow PamBaley GuyPayne

5ProjectsLeads


DER Work Plan27


DERBestPracticeResearch

DevelopIntegratedDERtools

AssessDERs

AlignPlanning+CustomerPrograms

10‐YearDERRoadmap+PolicyDecisionsQuickWins

&PilotsDERProjectDevelopment

DERLaunch


DER Initiative Progress Update

Cross‐functionalresearchgroupsfocusedon3‐monthresearchobjectives DefiningDERsatSnoPUD;Solar+BatteryStorage;DemandResponseResidential+C&I;Rates;SystemPlanningDataInventory;ElectricVehicles,inpartnershipwithEVCFT;InteractiveGridManagement

28


ResearchPhaseCompletedDeliverables DraftedC&IDemandManagement&TODPilot

Developedfeedercharacteristicsanalysisof400feederscategorizedbyloadprofile

LearnedhowtomodelDERsintodistributionplanningsoftware

BuiltEVForecasterTool

Formalizeddatacollection Customerbatteryinstallations DevelopedacustomersurveyaroundDERsandpricingsignals

Completedlegalanalysisofvariableincentives

Peerutilityconnections,lessonslearned


Peer Utilities

• PortlandGeneralElectric– StackingvaluesofDERtechnologiesasabalancingauthority– EvaluatingDERsanddistributionlimitationsaspartoftheirresourceplanningprocess– TyingDERPlanningtoSmartGridTestBeds

• TestingDERs‐ Solar,Batteries,DR,usingweather,location,constraints

29



Big, Quick Win: System Capacity “Heat Map”Version1:Substation‐leveldetail

30


Version2:Circuit‐leveldetail


Big, Quick Win: 1st Non‐wires Analysis31


DistributionPlanningprovidedthreealternativepeakreductiontargetanddistributionsystemalternativestobuildingan$8MWoodsCreeksubstationin2022

EnergyEfficiencyengineerslookedatthetotalachievableconservationpotentialinthearea

EnergyEfficiencyCostEffectivenesscalculatorbuiltforeachalternativetodeterminethePVCostsandPVBenefitsofeachscenariofromaDistributionSystemANDResourcePortfolioperspective

ComparingtheDistributionPlanningandResourcePortfoliovaluesofeachscenarioallowsthePUDtoidentifythebestoverallscenarioandcompareitwithareferencecase

CustomerFocusinWoodsCreek


How DERs Enable the Utility of the Future

• DERsoffercustomerschoicesandcontrolovertheirenergyfuture

• Heraldssmartintegrationbetweenplatforms• DERoptimizationenablesandincentivizes

grid‐optimalbehaviorusingprogrammaticcapacityreductionandbehindthemeterapproaches,rates,andsmartgrid/AMIinfrastructure.

• DERswillfacilitatenewcustomerinteractionswiththeutility

• Customersmaytransactwitheachother,viablockchaintransactions

32


DERPlanningInitiativeknitstogethertheutility’sprogram,system,andresourcedecisionstoensurewecancreatethebestlong‐termoutcomesforthecustomerandthePUD.

LookingAhead:


ELECTRIC VEHICLE (EV) INITIATIVESuzanneFrew


33


Electric Vehicles34



Why an Electric Transportation Strategy?

• Millionsininvestmentsbyvehiclemanufacturersandnumberofmodelsintroducedby2021• BritishColumbia’sZeroEmissionsActwillrequirealllightdutyvehiclessoldin2040tobe

zeroemissions• Opportunityforincreasedlongtermloadgrowthwithelectricvehiclesas55%ofallcarssold

in2040• Customercommitmenttoelectrificationoftheirfleets• Potentialgridbenefitsbyinfluencingwhencustomerschargevehicles• Policymakerssupportinggrowthofelectricvehiclesthroughbuildingcodesandstate

legislation(SB1512)• WashingtonisthirdinthenationforEVadoption• Newentrantsintothemarketincluding,vehiclemanufacturers,chargingnetworks,e‐mobility

andconnectedcars

35



Electric Vehicle Activity

• ElectricVehiclePlanningReport2009• CommissionPresentations2017and2018• ShortTermPlan(AUG– DEC2018)

– Customereducationandawareness– Facilitatecustomer‐ownedinfrastructurebuild‐out– Pilotmanagedcharging

• DistrictCross‐functionalWorkGroup• RecentLegislation

– HB1512– TransportationElectrificationPlan‐ approvedbythe

Commission(tentative)


36


EV Work Group37


AGM,CustomerandEnergyServices

DistributionEngineering

DistributionServices

LoadForecasting

Rates

CustomerPrograms

Legal

GovernmentAffairs

KeyAccounts

CorporateCommunications

CustomerExperience

NewEnergyInitiatives

DistributionEngineering

SharedServices

SystemPlanningandProtection


EV Work GROUP

• QuickWins– Websiteupdates– CallCenterFAQsandbasicinformationcalls– EVInterestFormonwebsiteandatfairs– TeamPUDEVcommunity– NewServiceQuestionnaire(NSQ)revisiontoincludeEVquestions– Datacollectionfromvehicleandallcharging

• LongerTerm– Infrastructureownership– Connectionpolicies– Ratestructures– Incentivesforcustomersegments– residential,fleet,off‐road,chargernetworks


38


Fleetcarma Proposed Pilot

• Electricalvehicledrivingandchargingdatacollection• Districtinterestinvehicleandchargingdata

– Customerprograms,loadforecasting,rates,systemplanning,engineering,fleetandmicrogrid

• DeviceplugsintovehicleOBDport– selfinstallw/assistanceforTesla• GPSbasedinformationfromwithinandoutsideserviceterritory• Potentialtoextendthepilotandaddmanagedchargingrewards• OtherFleetcarma UtilityPilots

– Tacomadatacollectionfrom100customers– SRP/EPRIprojectsondatacollection,rateschedulesandchargingprofiles– Nashville/TVAdatacollection“SmartChargeNashville”– LincolnElectricdatacollectionwithAPPADEEDgrant


Latest From Neighboring Utilities

• SeattleCityLight– RockyMountainInstituteTransportationPlan

• Public,residential,workplaceandhighmileagecharging

• Rates,businessprocessesandfleetelectrificationsupport

• PugetSoundEnergy– WUTCFiling

• EducationandOutreach• Public,residential,multifamilyandworkplaceL2charging

• InvestinginDCFC

40



Best Practices

• PortlandGeneralElectricTransportationElectrificationGoals

– Promotecustomeracquisitionofelectricvehicles– EfficientlyintegratingEVsintooursystem

• SaltRiverProject– Fleetcarma datacollectionandrateschedulepilots– EVCommunity– Utilitywidecollaboration

• HawaiianElectricTransportationPlan– BoostingEVadoption– Acceleratebuild‐outofEVchargers– Supportingelectrificationofheavydutyfleets– Creatinggridservicesopportunities(DRandRates)– Coordinationwithgridmodernization

41



Road Map Components ‐ Draft

• OutreachandEducation– Customers,dealerships,chargingprovider,customerfleets

• ManagedCharging– Smartchargerincentives,education,rateschedules,flexibilityindemandcosts

• PromoteElectricVehicles– UtilityEVfleet,investmentinEVinfrastructure,efficientcustomerprocesses

• SupportOurCustomers– Offroadelectrification,fleetandtransitelectrification,workplacecharging,

homecharging,publiccharging• Gridimpactsandforecasting

– Datacollection,propensitytoadopt,loadmanagement

42



Customer Activities

• CustomerEngagement– Inputonourstrategyandofferings– Educatecustomer/Districtbenefits

• InfluenceCustomerBehavior– Charginghabits– Loadflexibility

• PartnerwithCustomers– Collaborativebuild‐outfortransitandfleetoperations– Mitigatedistributionconstraints

43



Opportunity for the PUD

• Increasedrevenueifmanagedchargingisincorporated

• Customereducationwithtechnologyadoption

• Influencecharginglocationbasedongridcapacityandcustomerdemandforacomprehensivechargingnetwork

• Districtfleetelectrification• Increasedcustomerengagement(rates,

DR,managedcharging)



Customer Experience Opportunity

• Theirexpectationswillbesetbybestinclassdigitalexperience(Uber,Amazon)

– Seamlessandreliableservice– Competentadvisoryfunctions– Personalizedomni‐channelcommunication– 24/7support– Relevantsocial‐mediamarketing

• Forthenextgeneration,failuretomeetexpectationsmayresultinoptingoutofcarownershipandoptingintorideshare

• Forcharging,thereisaneedtomatchtheTeslacarbuyingexperience

45



How EVs Fit into the Utility of the Future

• Sourceofaddedrevenueifmanagedcharging

• WideadoptionofEVswithmultipletypesofcharging

– L2managedchargingathomeandwork

– DCFastChargingwithbatterysupport

• GridflexibilitybenefitwithV2G• Futurehomeownerwithsolardirect

chargeofEVandbatteryimprovingefficiency

4650 46


LookingAhead:


SOLARSuzyOversvee


47


Solar Landscape

• Enthusiasticcustomerbase• Diminishingstateandfederalincentives• EquityandAccess• Technologyadvancements

– Moreefficientequipment– Decliningcosts– BATTERIES

• Ratechanges


48


Solar at PUD

• Netmetering(renewablegenerationupto100kW)– Nearly2000interconnectedcustomers– 15.5MWofsolarinstalled

• CommunitySolar• PlanetPower(sunsetin2019– inprocessofawardingfinalprojects)


49


0

50

100

150

200

250

300

350

400

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

48 4062

81

138

201

338

271

339

SolarExpressProjects OtherNetMeteredSolar

117

295

Annual Installs (as of July 2019)

50


Customer‐Sited Batteries

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019BatteryInstalls 1 4 5 8 16 21 26 29 32 33 41

0

5

10

15

20

25

30

35

40

45


51


Community Solar

• Over500customersparticipating.Approximately100peopleareonthewaitlist.

• Wereceivedover100applicationswithinthefirst20minutes oftheprogramgoingliveonEarthDay.

• Bytheendofourfirstday,over50%oftheunitswerereserved.Wewere100%reservedinlessthanamonth!

• Low‐incomepilotunderdevelopment.PlantobereleasedinAugust.

• SystemcertifiedbyWSUonJuly1st.


52


Participation Diversity

0

20

40

60

80

100

120

140

160

180

200

0 20 40 60 80 100 120 140

SolarUnitPurchaseAmounts


Solarunits

Participants

53


Energy“Independence”

CleanandCarbonFree

SocietalContribution

FinancialReturn

EnvironmentalStewardship

Access

Equity

CommunityEnergyPlanning

Solar Themes


REGIONAL CUSTOMER

54


Community Solar Round Two and Beyond

IdeasforRound2• StanwoodorCamanoIsland• WAStatefundsmaybeavailable.WSUinterestedin

workingwithus.• CorporateSponsoredLow‐Income(e.g.Boeing)• DevelopermodeltoutilizeFederalTaxCredit

Beyond• Absentincentives,movetosubscriptionmodel

– TrackOPALCOdevelopments• Rooftopaggregation

55


15acreCamanoIslandPUDsite


Neighborhood‐scale Microgrids – DRAFT CONCEPT

Supportstrategicallycustomer‐sitedsolar+storageprojectsto:– Increasedistributedgridresiliency– Increasecommunityresiliency– Demonstratetechnology

IdentifysitesincommunitywherethereismutualbenefittoDistrictandtheCommunityandleveragepartnerresources.

– Potentialsites:schools,communitycenters,placesofworship,librariesExampleprograms:

– MarylandEnergyAdministrationResiliencyHubProgramhttps://energy.maryland.gov/Pages/Resiliency‐Hub.aspx

– PuertoRicoMicrogrid Initiativehttps://www.utilitydive.com/news/as‐100‐renewables‐mandate‐nears‐puerto‐rico‐sees‐new‐microgrid‐initiative/551114/

– MontecitoCommunityMicrogrid Initiative(CA)https://clean‐coalition.org/community‐microgrids/montecito‐community‐microgrid‐initiative/

– MillerCommunityCenterMicrogrid onCapitolHillhttp://www.seattle.gov/light/atwork/release.asp?RN=423


56


Customer‐sited Solar + Storage

• 41existingstoragecustomers;allaresolarcustomers• Pairedwithnewratestructures(e.g.TOD),storagewillbedesirableforsolarcustomers,andmaybeakeyfinancialcomponent


57


How Solar Fits into the Utility of the Future

• Solar+Storage+TODratesprovideopportunityfortheDistrictto:

– Increaseresiliency(grid+community)– Smartlyintegraterenewables– Meetenthusiasticandgrowingcustomer

interest

• CommunitySolarandNeighborhood‐scaleprojectsenabletheDistricttocontinuetoexpandaccesstomorecustomers

5850 58


LookingAhead:


CUSTOMER‐SCALE BATTERY STORAGEKellyStrand


59


PUD Customer Solar & Batteries• Storagesystemsrangein

sizefrom5kWto30kW• Atleast41PUDcustomers

havehomebatterystoragesystems

• 6customers(15%)haveTeslaPowerwalls

• 32customers(78%)haveOutbackbrandbatteries


60


Why Do Customers Want Battery Storage?• OutageProtection– provideabackuppowersourceduringanoutage

• Decreaseutilitybills– ViatimeofdayenergyusearbitrageforcustomersonTODrates

– Byreducingdemandforpeakenergy– ByreducingT&Dcostsincurredbytheutility

• Usesolargenerationeffectively• Enableelectrificationanddecarbonization• Inthecaseofutility‐ownedbatteries,getthebenefitofbatterybackup,withouthavingtoown,manage,ormaintainit


TeslaPowerwall(45.3”tall;5kW)

61


LGChemRESU10HV(35.7”tall,5kW)

Potential Utility Benefits• Improvereliability• ReduceT&Dgridinfrastructureinvestmentstomeet

peak• Createincentivestomatchtheutility’sneeds:kWvs

kWh• Increaseflexibleandcontrollableload• Reducegenerationinvestment• VoltageStabilization• FrequencyStabilization• FacilitateDemandResponse• Peakreductionandcarbonemissionsmanagement

– LowerGridStress• Earnleasingrevenuefromutility‐owneddistributed

batterystoragesystems

62



GreenMountainPower(Vermont)10MWtotalcapacity

• Incentivizinglowergridcongestionduringpeakhours

• 2TeslaPowerwalls(5kW)formonthlyfee

• Batteriesactasmetertotrackenergyusageandreporttoutility

Utility Program Type:

Utility‐Owned Batteries• Utilitieschargeandusethebattery

duringhigh‐peaktimes• Utilitiesmustpredictpeaks• Utilitiesmustcommunicatewithsite

installedbatteries,or3rdpartyaggregators

• RequirecustomerstoswitchtoTODrates

• Mostoperateon10‐yearcontracts


63

LibertyUtility(NewHampshire)5MWtotalcapacity

• Incentivizinglowerpeakcustomerdemandcharges

Phase1:Utility‐Owned• 100customersreceive2TeslaPowerwalls

(5kW)batteriesforupfrontormonthlyfee• Leveragebatteriesupto4x/mo

Phase2:Utility+Customer‐Owned• 300utility‐ownedbatteriesadded• 500customer‐ownedbatteries;signals

managedby3rdpartydistributors• Distributorswilldiscountbatteryprices

andearnincentivepaymentsforon‐peaksavings

ArizonaPublicService

• Incentivizingthereductionofgridstrainduetosolar

• Batteryprogramavailableintargetedareasonly

• FullincentiveforaSunverge Onebattery(6kW)with$500one‐timecredittocustomers

Alectra(Ontario,Canada)

• Incentivizinggridreliability• Upfrontplusmonthlyfeefor5years

foraSunvergeOnebattery(6kW)• Guaranteesthatcustomersbreak

evenin5years• LargeHome(11.6kW)andSmall

Home(7.7kW)programsthatcombinesolar+storageoffering


GreenMountainPower(Vermont)1.25‐2.5MWestimatedcapacity

• Incentivizinglowergridcongestionduringpeakhours

• 250homeBYODpilot;RebateperkWhwithacap

• Bringyourowndevicebattery,vehiclecharger,andwaterheaterprogram

• Bonusincentivepaymentsincongestedareas

• GMPsignalsthebatterydirectly

Utility Program Type: BYOD(Bring your own device)• Someutilitiescommunicatewithsite‐

installedbatteries,or3rdpartyaggregators,somedonot

• Utilitiesmustpredictpeaks• Donotrequirecustomerstoswitchto

TODrates,butit’soneoftheprimarymechanismstomanageenergyflow

• Mostoperateon10yearcontracts• Mostrequirethatacustomerhassolar

anddonotallowcustomertochargebatterydirectlyfromgrid


SaltRiverProject(Arizona)22.5MWormoretotalcapacity

• Incentivizesreductionofgridstrainduetosolar

• 4,500homepilot;RebateperkWhwithacap

• Specialratesofferedtobattery+solarcustomers

• SPRdoesnotmanagecustomerstorage

NationalGrid(Massachusetts)

• Performance‐basedcustomerincentivestocurtailpeakdemand

• IncentivizeperkW,seasonally• Estimatedevents:upto60xsummer,

upto5xwinter• Customershavefullcontrolduring

winteroutageevents• Zero‐interestloansavailablefor

install• Programopento3rdparty

implementerstodiscountbatteryinstallandcapturesavings

• NGsignalsthebatterydirectly

64


Barriers & Risks

• Cost– Abarrierforthecustomerandtheutility

• ShortLifespanandBatteryDegradation– Usefullifeof5‐ 15years(comparetosolarat

25‐ 30years)– Batterywilldegradeasitcycles

• Maincompetitionforbatteriesaregenerators

– 5kWPortableDieselGenerators$2,100‐5,300– 5kWInstalledBattery$10,000‐16,000

65



Opportunities for the PUD• CaptureinsightsfromaPUDCustomerBatterySurvey• Ascostsdecline,offercustomerprograms

– Reliability&Resiliency– providebackuppower– Craftprogramtoaddresscustomerswithwells

• AlleviateinfrastructureupgradesandT&Dcosts• PairbatteryprogramswithTODrateswhen

implemented• Learnhowtointegratesmall‐scaledistributed

storageintoourgridoperations• Reducepeakpowerpurchases• Opportunitytopurchaseenergymanagement,

gridservices,andinstall/maintenanceofbatteriesfrom3rdpartyimplementers

66


PikaEnergyHarbor(65”tall,6.7kW)


How Batteries Fit into the Utility of the Future• Providecustomergreaterreliabilityand

autonomyofchoice• Enableflexibleandcontrollable

distributedload• Reducedistributiongridinfrastructure

andpeakdemand• Manageloadatpeak,includingEV

chargingandotherelectrificationload• Pairbatterieswithsolartomakeefficient

useofcustomergeneration• Pairwithnewrates• Facilitatedistributedmicro‐grids

6750 67


LookingAhead:


DEMAND RESPONSESuzanneFrew


68


Demand Response or Load Flexibility?69



Demand Response is the Largest DER in the US

0

10

20

30

40

50

60

70

GWinstalledintheUS

DistributedEnergyResourcesintheUS

DemandResponse RooftopSolarPV EVCharging GridConnectedBatteries

70



Past and Present Demand Response Projects

• DemandResponsePilotEnernoc/BPAwithMESA1and2

• CommercialIndustrialDemandResponseBPAPilot2015‐2017

• BPA/PGEResidentialWaterHeaterPilot2018

• WaterandWastewaterCustomersPeakLoadShifting– 2018‐2020

• ResidentialEPRINextGenHeatPumpProjectSummer2019andWinter2019‐2020


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Types of Demand Response

• Shedorloadup– powerconsumptionisincreasedordecreasedoveraperiodoftime

• Shift‐ powerconsumptionshiftsearlierorlaterthanittypicallywouldoccur

• Modulate – reduceorincreasepowerconsumptioninshorttermincrements

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Demand Response

• Economic– Dayaheadmarket– Hourlyreductionsforscheduling

• GridReliability– Regulation– Feeder/systempeaks– Powermix(generationsource)– Resiliency

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Utility Demand Response Programs74



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Best Practices

• GreenMountainPower– BYODincludesbatteries,chargersandwaterheaters– TeslaPowerwallforshavingpeaksandleverageasa

smartmeter• PortlandGeneralElectric

– Peaktimerebates– PGE/BPAwaterheaterdemandresponse– TimeofUseRates

• CAIOUs– ACprogramsformorethan20years– FlexAlertcampaign– Resiliencyadderstobatteryincentiveprograms

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How DR Fits into the Utility of the Future

• Behavioraldemandresponsepotentialfromallcustomersegments

• GridInteractivestrategiesforallcustomers

• Leveragetechnologytosimplifycustomerengagement

• Partnershipswithcustomersforincreasedloadflexibility

• DRautomationwithcustomersettingupparameters

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LookingAhead:




Demand Response



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GRID‐SCALE ENERGY STORAGEJasonZyskowski


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Grid‐scale Energy Storage and Solar

• Installedenergystoragepowercapacityhasnearlydoubledeverytwoyearssince2011,andbytheendof2017,708MWwasinoperation;potentialfor2500MW+by2023

• April2019USmonthlyelectricitygenerationfromrenewablesourcesexceededcoal‐firedgenerationforthefirsttimebasedonEnergyInformationAdministrationdata

– Renewablesourcesprovided23%andcoalprovided20%oftotalelectricitygeneration– Renewableincludeshydropower,wind,solar,geothermalandbiomass

• In2018about15gigawattsofwindandsolargeneratingcapacitycameonline

Citation:U.S.BatteryStorageMarketTrends,U.S.EnergyInformationAdministration,May2018

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Grid‐scale Energy Storage and Solar (cont’d.)

• Californiamandatefor1,325MWby2020– PG&Einstalling567MW/2270MWhofenergystoragetoreplaceplannednaturalgasplants

• LADWPplanstoreplacegaspeakers withsolarandstorage– Currentplansinclude400MWofsolarand300MWofenergystorage

– Combinedpriceisjustunder$40/MWh• PNMplanstoretireSanJuancoalplant

– Replacewith280MWofnaturalgaspeakers,350MWofsolar,130MWofenergystorage

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Washington State Legislation

• 100%cleanenergyby2045• Coalphase‐outby2025• In2017WAresourcemixincluded

– 68%hydro– 24%coalandnaturalgas– 4%nuclear– 3%wind– 1%other

• Thislegislationwillmostlikelydrivemoresolar,windandenergystorageinstallationintheNW

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CleanEnergyTransformationAct


Distribution Utility‐Scale Energy Storage

• Eversource‐ Martha'sVineyard14.7MW– Replacedieselgenerationpeakers andintegratesolar– Powersuppliedby4underseacables

• Eversource‐ Provincetown,northerntipofCapeCod,25MW/38MWhLi‐Ion– Purposeistoincreasereliabilitytothreetownsfedbyasinglefeederthathaslowreliabilityduetostorms

– Otheroptionwasbuildasecond3phasedistributionfeeder– Costof$40M,several$Mmorethanfeeder;utilitybelievesbatterywillbecheaperovertime

– Provides3hoursofbackupduringsummer,10hoursduringwinter;reliabilitycouldbeimprovedbyasmuchas50%

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Distribution Utility‐ and Customer‐Scale Energy Storage

• Eversource‐ Westmoreland,NewHampshire,1.7MW/7.1MWhLi‐Ion– Purposeistoincreasereliability,managepeakdemandandreducegreenhousegasemission

– 450customersfedbysinglepowerline– $6Mfornewfeeder,$7Mforenergystorage,mixofutilityandcustomerowned

– Estimateadditional$2Minsavingfrompeakcostreduction– Statewideincentivesforbatteries,vehiclechargers,smartthermostats– Statewidedemandresponseprogrampartofenergyefficiencyprogram– Estimatetheywillsave50kWthroughresidentialbatteriesinWestmorelandand15kWthroughthermostats

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Chemistry Trends85




Application Trends86




Battery Storage Ownership Trends87




Future Outlook88




• Distributedstorageforthepurposesof:– Non‐wiresdistributionsolutions‐ capital

investmentdeferralfordistributioncapacityconstraints

– Demandresponseandpeakshifting– ReliabilityImprovements

• StoragepairedwithCommunitySolarorotherlargescalesolarinstallations

• Customerownedstorageincentivizedthroughrates

• Procurementofcleanpowerfromothers(solar,wind,energystorage)

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LookingAhead:How Grid‐scale Utility Storage Fits into the Utility of the Future


SMART GRID CONTROLS & AMIJasonZyskowski


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Reliability, Resiliency, Grid Operation and Integration

• AccordingtoJDPowerreliabilityofelectricserviceisthe#1thingourcustomerscareabout

• Futuregridwillconsistof:– AdvancedMeterInfrastructure(AMI)– DistributionManagementSystem(DMS)– OutageManagementSystem(OMS)– DistributionAutomation(DA)

• Thesesystemswillworktogethertoimprovereliability,resiliencyandoperationofthegrid

• Gridintegrationwithcustomerowneddevices

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Advanced Meter Infrastructure (AMI)

• AllowsforimmediatenotificationtoPUDofpoweroutage– Nolongerrelyingoncustomerphonecallsforoutagenotification– InformationfeedsintoDMS/OMStoprovideaccurateoutagedataformoretimelyrestoration

– Providesup‐to‐datesituationalawarenessduringmajorstorms• Quickerandmoreaccurateprioritizationofoutagerestoration

– Majorstormaccurateoutagerestorationtimes– Up‐to‐dateoutagemapandcustomeroutagemessaging

• ProvidesloadflowdatatoDMStoallowforinformedautomatedswitching

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AMI customer and utility benefits

• Customeroptionstoproactivelyviewdetail,interact,andreceivealertsregardingelectricalenergyusage

• Customerpre‐payoptions• Ratestructuresthatsupportandallowforthefollowing:

– Associationofcostcausationwithcustomercostofservice– Pricesignalsthatpromotecosteffectiveuseofelectricity– Optionsforcustomerstoreducebills– Revenuestability– Incentivizetechnologyinvestmentandcommunityobjectives

• Remotedisconnect/reconnect• Interactionwithbuildingautomation,smartinvertersanddemandresponse

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Distribution Management System (DMS)

• Takesdatafromfielddevicesandcreatesup‐to‐datepictureofthedistributiongrid

• Integrationwithcustomer‐owneddevices– Allowsforcustomerdevicestoplayaroleinoptimizinggridoperation

• Takesactionsbasedondatatorestoreoutages,avoidoverloadsandmanagethesysteminthemostefficientwaypossible

– AutomaticFaultRestoration– FaultLocationIsolationandServiceRestoration– ConservationVoltageReduction(CVR)– managingdistributionsystemvoltage– AutomaticSwitchingorsuggestedswitchingtoimprovegridoperation/efficiency

• OutageManagementSystem

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Distribution Automation

• Installationofreclosers,regulators,capacitorsandotherlineequipmentwithcommunicationstoimprovereliabilityandreducecustomerenergycosts

• AllowsdeviceswithadvancedcontrolsinthefieldtocommunicatebacktotheDMS

• Withoutthesedevicesfaultisolation,restorationandvoltagemanagementarenotpossible

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Distribution Grid of the Future96



Distribution Automation (DA) Demo Area

• TotalloadservedinDAarea:51MW• Around10,000customersacross5substations• 10distributioncircuitsfrom5substations• 200circuitmilesofserviceterritory• LowreliabilitycircuitsinLakeGoodwinarea• 31switchingdevices(ReclosersandM.O.switches)

• 13x3‐phaseregulators• 6endoflinevoltagemeters

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DA Future ‐ Expansion

• SnoPUD isexpandingitsDAterritorytotheArlingtonarea• Expandedareawillhave66switches,17reclosers,and17voltageregulatorswithseveralend‐of‐linevoltagesensors

• Thisareawasselectedduetoits:– Reliabilityopportunities– Proximitytoplannedmicrogrid/energydemonstrationcenter– Proximitytonewsubstationinfrastructure

• Differentcommunicationsinfrastructure– optimizedforthelocation,bandwidthneeds,andphysicallayoutofterritory


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How Smart Grid and AMI Fit into the Utility of the Future• Customershavedetailedpictureof

energyusage,arebilledinawaythatreflectscostofservicesprovidedandhaveoptionstoreducebills

• Utilityhasrealtimepictureofgridandimprovedabilitytorespondtooutages

• Gridismanagedinthemostefficientwaypossible,includingtheuseofcustomerdevicesforoperationalefficiencies

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LookingAhead:




Demand Response



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CUSTOMER SELF‐SERVICECathyPatterson


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MySnoPUD.comCustomerSelfService• Meetthecustomerswheretheyare

– Interactionsatthecustomer’sconvenienceandontheirpreferreddevice

• Provideseamlesscustomerexperiencesacrossdigitalchannels• Easy‐buttonself‐service• Pro‐activenotifications• Personalizedproductsandservicesthat:

– Automateorstreamlineenergysavings– Enablecustomerstogeneratetheirownelectricity– Supportmyconnectedhomethroughthelatesttechnology

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CSS & EBPP Project Release PlanCustomerSelf‐Service(CSS)/ElectronicBillPayment&Presentment(EBPP)

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CUSTOMER EXPERIENCECyndyNance


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Customer Experience • EV

– Customerengagement– Partnerwithcustomers

• Solar– Enthusiasticcustomerbase

• DemandResponse– Leveragetechnologytosimplifycustomerengagement

• DistributionAutomation– Reducecustomeroutagetimeandincreasereliability

• DERsandenablingtechnologiesoffercustomerschoices,flexibilityandcontrol• Notjustanactionorinteraction,it’saculture• JourneyMapping

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CUSTOMEREXPERIENCE ROADMAP (ESOURCE)

ELECTRIC UTILITY CUSTOMER

SATISFACTION STUDY

DISTRICT CUSTOMER SATISFACTION RESEARCH

EMPLOYEE INTERVIEWS AND WORKSHOPS

SOCIAL MEDIA JD POWER INDUSTRY REPORTS

OPERATIONAL DATA DISTRICT 2018 CUSTOMER

SATISFACTION SURVEY

Analysisoffindingsfrompreviouscustomerexperience‐focusedinitiatives,operationaldataaswellasmultipleprimaryandsecondarydatasourcesprovidedaholisticandrealisticassessmentof ourcustomers’experience

Approach


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CustomerexperienceexistsasaSnoPUDstrategicpriority.Theopportunityexiststoweavethisintodecision‐makingbyelevatingcustomercentricityasa value

Linkage


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Putting it all together…

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Utility Best Practices Discussion109


KeyFeatures• InnovativeElectricVehicleInitiatives

• CustomerStorageProgram

• Uniqueratestructures

KeyFeatures• RebatesoneBikes,EVs,andheatpumps

• BYOD BatteryStorage,WaterHeater,andEVChargerProgram

• DemandResponseProgram

• EnergyInnovationCenter• RutlandSolarEnergyTrail

KeyFeatures• DemandbasedrebatesonEVs,heatpumps,smartthermostats,andweatherization

• PeakTimecustomercontrolleddemandresponseprogram

• TimeofDay Rates• TestBeds• SubscriptionBasedCommunitySolar

KeyFeatures• TimeofDayRates• BlockchainforEVsandRenewables

• EVchargingdiscountsandpurchaseincentives

• CustomerStorageIncentives



Where we’re headed


Utility of the FutureJuly 16, 2019Commission Workshop

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Documents

SNOHOMISH COUNTY PUBLIC UTILITY DISTRICT BOARD OF ... · BOARD OF COMMISSIONERS SPECIAL MEETING Everett Headquarters Building, 2320 California Street **Special Meeting** July 16,

SNOHOMISH COUNTY PUBLIC UTILITY DISTRICT BOARD OF ... · BOARD OF COMMISSIONERS SPECIAL MEETING Everett Headquarters Building, 2320 California Street Special Meeting July 16,