021710 conducting distributed chorus.ppt

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

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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


•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


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


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….


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


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


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


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


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


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


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


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


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


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


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


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


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.


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.


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


‐62 ASR schemes

‐Dynamic pricing

‐Enabling comms

‐280,000 smart meters


‐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


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


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


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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