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Conducting a distributed chorusConducting a distributed chorusAn Intelligent Utility Reality Webcast
10/15 10/29
1/28February 17, 2010
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Conducting adi ib d hdistributed chorus
Kate RowlandManaging EditorIntelligent Utility Magazine
Robert S StewartRobert S. StewartManager, Technology Evaluation and ImplementationPepco Holdings, Inc.
Todd McGregorProgram Manager, Advanced Metering ProgramPepco Holdings, Inc.
Mike KuberskiEnterprise ArchitectPepco Holdings, Inc.
AgendaAgenda
IntroductionAn intelligent utility operation
How Pepco’s story fits in
Pepco presentationR b S SRobert S. Stewart
Todd McGregor
Mike KuberskiMike Kuberski
Q&AQ&A
Introduction: An intelligent utility operationIntroduction: An intelligent utility operation
10/15 10/29
1/28/
Introduction: How Pepco’s story fits inIntroduction: How Pepco s story fits in
More than just metersSmart substations
Holistic security framework
HAN strategHAN strategy
M th j t t h lMore than just technologyBlueprint for the future
Customer education strategyCustomer education strategy
0© Pepco Holdings, Inc 2010
PHI’s Plans for Smart Grid
Mike KuberskiEnterprise ArchitectPHI Power Delivery
Conducting a Distributed ChorusIntelligent Utility WebcastFebruary 17, 2010
Todd McGregorAMI Program MgrPHI Power Delivery
Rob StewartMgr Technology EvaluationPHI Power Delivery
1© Pepco Holdings, Inc 2010
•14,000 MW electric peak (2007)
• 3800+ miles electric transmission
• 400 substations
• Members of PJM and NERC/ReliabilityFirst (RFC)
•Registered as a Transmission Owner, Distribution Provider, Load Serving Entity, and Purchasing-Selling Entity
*PHI Competitive Energy Businesses include Conectiv Energy and Pepco Energy Services
PHI Overview
2© Pepco Holdings, Inc 2010
PHI Business Overview…
Note: Based on 2008 annual data
Gas
767,000 498,000 122,000 547,000
26,863 13,015 N/A 10,089
N/A N/A 20,300 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
3© Pepco Holdings, Inc 2010
PHI’s Smart Grid Vision…
“Through the ‘Smart Grid’, customers will be empowered to make choices regarding their use and cost of energy.
It will create opportunities for innovation for the customer and PHI.
It will provide the ability for PHI and its customers to take advantage of energy alternatives and efficiencies. It will allow the industry and customers to take advantage of green alternatives.
PHI’s Smart Grid strategy will improve reliability, while ensuring data security.
PHI will enhance our Asset Management and Infrastructure strategies enabling us to upgrade, operate and maintain the grid assets in a more cost effective manner.
It is incumbent on PHI and the industry to ensure the achievement of this vision through complete engagement with the industry and commitment to share our joint learnings….
4© Pepco Holdings, Inc 2010
PHI believes there are 5 evolutionary steps to achieving the Smart Grid…
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
Mat
urity
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
5© Pepco Holdings, Inc 2010
PHI’s Smart Grid activities will provide numerous benefits for customers, the economy, the environment and society…
Advanced Metering Infrastructure
Distribution Automation
Transmission Automation
Full Smart Grid Deployment
Smart Home Automation
Distributed Generation
Energy Efficiency
Customer Benefits
Demand ResponseDynamic Rates
Direct Load Control
Lowers Energy Bills
Improves Reliability
Improves Restoration Better Billing
Better Energy Info & Control
Greener Options
Create US Jobs
Promote US Energy
Independ.
Enables New Markets
Reduces Energy Usage
Increases Green Energy
Combats Global
Warming
Better Planning & Forecasting
Resists Attack
High Inter-operability
Economic Growth Benefits Environmental and Societal Benefits
Smart Grid Benefits
PHI’s
Smar
t Grid
Act
iviti
es
Key:
Increasing degree of benefits
Advanced Metering Infrastructure
Distribution Automation
Transmission Automation
Full Smart Grid Deployment
Smart Home Automation
Distributed Generation
Energy Efficiency
Customer Benefits
Demand ResponseDynamic Rates
Direct Load Control
Lowers Energy Bills
Improves Reliability
Improves Restoration Better Billing
Better Energy Info & Control
Greener Options
Create US Jobs
Promote US Energy
Independ.
Enables New Markets
Reduces Energy Usage
Increases Green Energy
Combats Global
Warming
Better Planning & Forecasting
Resists Attack
High Inter-operability
Economic Growth Benefits Environmental and Societal Benefits
Smart Grid Benefits
PHI’s
Smar
t Grid
Act
iviti
es
Key:
Increasing degree of benefits
6© Pepco Holdings, Inc 2010
PHI’s Smart Grid Domains and Integrated Communications Infrastructure
PHI Central Operations
PJM
3/16/2009 9/14/2009
Smart Thermostat
Smart Meter
AMICollector
SF6Line SwitchWith RadioTransceiver
Smart SubstationsHouse
Distribution Poles
Electric Vehicles
Solar (or Wind)
Meter Collector
PHI Central Operations
Customer PJM
Home Area Network Wireless Mesh
Network Broadband Wireless Network Fiber-Optic Network
Home Intelligence Feeder Automation Substation Automation Transmission Automation
Smart RTU
Controller PC
SubstationHMI
SubstationWAN
Substation LAN
SmartRelays
SmartMonitors
LegacyRTU
SmartMeters
. . . .
Radio
Growing volume of data...
(Transmission & Distribution)
Substation
3/16/2009 9/14/2009
3/16/2009 9/14/2009
Communications Tower
7© Pepco Holdings, Inc 2010
Smart Grid builds on the Communication and Information Infrastructure
Advanced Metering InfrastructureAdvanced Metering Infrastructure
Distribution ManagementMWMMWMOMSOMSGISGIS
Distribution ManagementMWMMWMOMSOMSGISGIS
T&D Planning & EngineeringAsset MgmtAsset MgmtMaintenance
MgmtMaintenance
MgmtSystemsPlanningSystemsPlanning
Communications Infrastructure
FeederAutomation
FeederAutomation
Substation Automation Substation Automation
Power Procurement & Market OpsPlanning &ForecastingPlanning &Forecasting
Bidding &SchedulingBidding &
Scheduling
SettlementsSettlements
Trading &ContractsTrading &Contracts
ResourceDispatchResourceDispatch
Power Procurement & Market OpsPlanning &ForecastingPlanning &Forecasting
Bidding &SchedulingBidding &
Scheduling
SettlementsSettlements
Trading &ContractsTrading &Contracts
ResourceDispatchResourceDispatch
SCADASCADAEMSEMS Operations
PlanningOperationsPlanning
DSMDSMDMSDMS
T&D Operations Executive DashboardsExecutive Dashboards
Customer ServicesMDMSMDMS CISCIS BillingBillingCall CenterCall CenterMDMSMDMS CISCIS BillingBillingCall CenterCall Center
EnterpriseApplication
& Data Integration
My Account3rd PartySuppliers
8© Pepco Holdings, Inc 2010
Transition 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
9© Pepco Holdings, Inc 2010
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 remote controlled switches or Automatic Circuit Reclosers (ACR’s) in the field
• For a 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
10© Pepco Holdings, Inc 2010
PHI’s ASR System – District Heights – Upper Marlboro 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
11© Pepco Holdings, Inc 2010
AMI Progress to Date
Vendor Selections• Silver Spring Networks – AMI
communication network & head end system
• IBM – system integrator• GE and Landis + Gyr – electric meter
manufacturers • Scope Services – meter installation
contractor Deployment Schedule
• Q4 2009 - Commenced AMI meter deployment in Delaware
• Q1 2010 – Begin activation of customer functionality in Delaware
• Q4 2010 – Commence AMI meter deployment at Pepco – DC & Maryland
• Q2 2011 – Begin activation of customer functionality at Pepco – DC & Maryland
Delaware
12© Pepco Holdings, Inc 2010
Initially focused on enabling the following operational and customer functionality which are necessary to meet customer expectations as defined by the Blueprint & AMI Business Case filings
Delaware Deployment – Initial Functionality Activated
Meter to Bill (Register Read Billing only)• Integration of systems to support the collection of “over the air” register reads and processing of data for
customer billing purposes • Allows PHI to remotely turn-on and turn-off a customer’s electricity (routine move-in/move-out and
successions, no credit work initially)• Presents daily consumption on the customer’s bill (will be available when common bill format is enabled)
Web Presentation• Displays hourly interval usage information online via My Account using Aclara’s Load Analysis Module
(internal use only initially, later in 2010 for customers)
Outage • Uses messages received from the AMI meter for outage prediction and customer notification
AMI Portal• New tool for use by CSRs and authorized users to request and receive AMI meter information on-
demand (including outage status) and view the customer’s usage data for troubleshooting purposes
13© Pepco Holdings, Inc 2010
Direct Load Control / Demand Response
• Comverge selected as vendor• Smart Thermostats and Outdoor switches• Program Currently Underway• 222,000 by Devices by 2013• Compatible with AMI
• 780 Participants• Pilot Designed to Test Market Receptivity to
Three Pricing Alternatives (Supply Portion Only)
1. Hourly Pricing2. Critical Peak Pricing3. Critical Peak Rebate
PowerCents DCDirect Load Control
Minimum devices required to meet energy reduction goals(Cumulative)
0 25,25075,750
126,250167,660 167,660
08,181
19,594
31,00745,753 45,753
0
50,000
100,000
150,000
200,000
250,000
End 2008 End 2009 End 2010 End 2011 End 2012 End 2013
Year
Dev
ices Delmarva Pow er
Pepco
MD DLC
14© Pepco Holdings, Inc 2010
PHI 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
15© Pepco Holdings, Inc 2010
PHI’s security framework has a holistic approach…
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
ie, 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
16© Pepco Holdings, Inc 2010
PHI Cyber Security Guiding Principles
In PHI’s Smart Grid solution, the following guiding principles for protection against attacks always apply:
– Prevent it, by blocking the attack or closing the vulnerabilities.– Deter it, by making the attack harder using a layered security defense.– Detect it, by monitoring traffic and traffic anomalies.– Defend it, by encapsulating systems in ways that offer walls between
networks and applications.– Minimize it, by taking automatic actions to shut down portions of the
network where intrusions have been detected.– Recover from it, by providing network configuration and data backups to
ensure recovery.– Control it, through the use of strong policies and procedures.– Track it, through the use of system log files, with alarm functionality if any
unauthorized connection occurs. – Verify it, through 3rd party assessments.– Assign accountability for it, by establishing a Network Operating Center
(NOC), which monitors ongoing operation of PHI Smart Grid communication performance and manages any abnormal performance.
17© Pepco Holdings, Inc 2010
Customer Privacy Concerns – A Key Issue
1Elias Leake Quinn, A Report for the Colorado Public Utilities Commission, Spring 2009, pg. 3. (citing M. Newborough & P. 3Augood, Demand-side Management Opportunities for the UK Domestic Sector, IEEE Proceedings of GenerationTransmission and Distribution 146 (3) (1999) 283–293).
How power use can reveal personal activities1
• There is a delicate balance between Customer privacy and the Utility’s need for Operational Data.
• Concerns are complicated by the Customer’s desire to make data available to third parties.
• Customers need to be made equally aware of both opportunities and threats.
• Successful resolution is a key driver for Smart Grid maturity.
Privacy-related efforts/resolutions
2 NIST Smart Grid Privacy Subgroup Update for Grid Interop, November 19, 2009
2
Currently NARUC, NIST and EEI have all launched efforts to address privacy-related issues.
18© Pepco Holdings, Inc 2010
Blueprint initiatives are accelerated through DOE funding…
$18.7M$104.8M$44.6M
‐25,000 DLC devices
‐20 ASR schemes
‐158 Capacitor banks
‐Enabling comms
‐570,000 smart meters
‐168,000 DLC devices
‐62 ASR schemes
‐Dynamic pricing
‐Enabling comms
‐280,000 smart meters
‐20,000 DLC devices
‐17 ASR schemes
‐Dynamic pricing
‐Enabling comms
$37.4M$209.6M$89.2M
ACE‐NJPepco‐MDPepco‐DC
Impacts on PHI
Total CostDOE Funded
•Acceleration of installation of meter and thermostats
•Acceleration of benefit for customer to manage their energy use
•Modernization of the electric system to reduce outages, better manage the operation of the system and reduce losses
19© Pepco Holdings, Inc 2010
Looking forward to the future
• PHI plans to:– encourage innovation and customer engagement– be engaged with the industry and a contributor to the
evolution of Smart Grid– create a more efficient grid– partner with customers, regulators and fellow utilities
to achieve the obvious benefits of Smart Grid
20© Pepco Holdings, Inc 2010
Customer Education Strategy
20
Customer Customer Experience Experience VisionVision
Sustainability Sustainability VisionVision
Technology Technology Blueprint for the Blueprint for the
FutureFuture
Operational Operational ExcellenceExcellence
Employee EngagementEmployee Engagement
Customer Customer EducationEducation
Regulation / Business Model
Trusted Energy Trusted Energy AdvisorAdvisor Strategic plans for informing,
motivating and enabling customers to embrace PHI’s smart grid and energy management customer programs
Customer Education Strategy is one component of the company’s efforts to achieve our vision as a Trusted Energy Advisor
• Near-term tactics• Longer-term strategy
21© Pepco Holdings, Inc 2010
Key Takeaways
• Customer Adoption and Participation is a key enabler
• Smart Grid will move at the Speed of Value– Utilities will still need Regulatory approval for large projects related to Smart Grid– Standards and Interoperability are key to preventing stranded assets
• Interoperability and Standardization are not spectator activities.– Utilities need to get involved and make their voices heard and be engaged as
individual companies and as an industry
• Through the Smart Grid, Utilities will become “Technology” Companies– No longer the “best solutions” but rather iterations of “Better Solutions”– Similar to Electric System Operations, Communication Network Operations and
enhanced Cyber Security will become part of our future DNA
• Legislation should be applied judiciously– Standards are hard to change, laws are nearly impossible.
“The smart grid will only work to the extent that customers win,”Joseph Rigby, CEO of Pepco Holdings
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