Raab Subcommittee Update Draft

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MA DPU Electric Grid Modernization
Working Group
Reports From Subcommittees
Steering Committee Meeting #2
February 5, 2013
Dr. Jonathan Raab, Raab Associates
Customer-Facing Subcommittee
Mtg. #1 Agenda (1/9/13)
• Briefing on Time Varying Rates, Metering, and
Customer-Facing Regulatory Policies and MA Utility
Pilots
– NSTAR-- Doug Horton, NSTAR & Stuart Schare, Navigant
Consulting; GRID--Peter Zschokke; & Unitil--Justin Eisfeller
• Time-Varying Rates
– Subcommittee View Sharing and Discussion
• Metering/Data Communications
– Speakers: Itron Smart Grid Solutions: Bruce Husta; AvCom
Corporation: Fred Avila; & Sentinel Works: Jim Hirni
• Regulatory Policies
• Subcommittee View Sharing and Discussion
2
Unitil: Pilot Program Results
3
3
Preliminary Findings
NSTAR Preliminary Results: Load reductions during summer
events vary with the rate and technology
Average Load Reduction (kW)
0.9
0.8
0.7
0.6
0.5
0.4
•
0.3
0.2
•
0.1
•
0.0
Peak Time TOU/CPP +
Rebate
LC (n=309)
(n=349)
TOU/CPP
(n=868)
Peak Time Rebate : Group 2
TOU/CPP + LC: Group 3
TOU/CPP: Group 4
Tech. Only: Group 1
Tech. Only
(n=903)
Automated load control via
thermostats achieves
reductions of 0.7 – 0.8 kW
CPP rate without thermostats
saves ~0.2 kW
Technology group shows
savings, but negligible
* Findings based on two events in
Summer 2012, with simple baseline
load estimation
4
4
Pilot Evaluation Timeline
Pilot
Kick-off
Soft
Launch
Pilot
Start
Metrics &
Benefits
Report
Official
DOE
Technical
Performance
Report #1
Interim Report to
DPU
Metrics &
Benefits
Report
End of
Pilot
Official
DOE
Technical
Performance
Report #2
Final Report
to DPU
24 months
Summer
2010
January
2012
September
2012
Winter 2013
Summer
2013
December
2013
Spring 2014
• NSTAR Pilot will run through 12/31/2013 with the final
evaluation to US DOE and MA DPU due April 2014.
5
5
NGRID: Customer Choices
New Rates
Hourly Pricing Program (HPP)
Critical Peak Pricing (CPP)
Peak Time Rebate (PTR)
In Home
Small Business
6
Level 2
6
NGRID: Results To Date
• Early Field Trial (EFT) meters in place since March 2012
– 5,000 meters
– Tested communications
– Tested reading of meter data
– 299 customers opted out of meter (5.97%)
• Remaining 10,000 meters scheduled in service by May 31, 2013
• Pilot start date scheduled for January 1, 2014
• Provides 2 years of baseline data for summer use for 5,000 customers and
one year for 10,000 meters
7
8
Is Hybrid Drive-by or AMR Fixed Network a
Realistic Alternative [to AMI]?
(Software/HAN or ChoiceConnect)
•
•
•
•
•
Allows customer interaction
Allows appliance control
Interval data for flexible pricing (TOU, RTP, CPP, etc.)
On demand reads
Realistic additional cost
AvCom Presentation
9
Customer-Facing Subcommittee
Mtg. #2 Draft Agenda (2/26/13)
•
Alternative Metering Scenarios, Functions, Costs for Massachusetts
– Presentation of Subcommittee’s working group on scenarios, functions, & costs
– Utility current meters and meter practices
•
Time-Varying Rates (Subcommittee View Sharing and Discussion)
– What opportunities will time varying rates enable, and how essential are they to developing a
truly modern electric grid?
– What time varying rate options hold the most promise for MA and why?
– Should basic service be structured as time varying rate(s)? What about T&D rates?
– What do competitive suppliers need to be able to effectively offer time varying rate options?
•
Principles and Regulatory Policies for Time Varying Rates and Advanced Metering
– -Brief Presentation on Potential Principles—Barbara Alexander, Consumer Affairs Consultant
to MA AG
– Readings from NASUCA and Faruqui
– What principles should be considered around time varying rates and meters, including any
recommended consumer protections?
– What is the appropriate pace for implementation of customer-facing grid modernization?
– What regulatory policies should the group consider?
•
Planning for Final Two Subcommittee Meetings
10
Grid-Facing Subcommittee
Mtg. #1 Agenda (1/14/13)
• Briefing Grid-Facing Options and Opportunities
– David Malkin, GE
• Successful Grid-Facing Modernization—10-20 Years from
Now
– Utilities: Jennifer Schilling & Larry Gelbien, NU; Chris Kelly,
NGRID
– Clean Energy Coalition: Ram Rao, Ambient
• Utility Planning and Decisionmaking on Grid-Facing
Investments
– NGRID--Chris Kelly; NU--Larry Gelbien; & Unitil--Kevin
Sprague
• Subcommittee View Sharing and Discussion: Grid-Facing
Modernization
11
Grid modernization maturity levels
Apparatus………..Physical grid devices
Protection…………Devices to reduce injury or equipment damage
Monitoring...........Maintaining safety, reliability & quality
Metering……………Load management, billing, & system stability
Control………………Operating apparatus & control of power flows
SCADA……………….Supervisory Control And Data Acquisition
Automation………Automatically monitoring & controlling devices
Optimization…….Improving economics, efficiency, reliability & safety
12
Technology taxonomy… DOE’s
view
Benefits
Smart Grid Technology Applications
Consumer-Based
Demand
Management
Programs (AMIEnabled)
• Time-based pricing
• Customer devices
(information and
control systems)
• Direct load control
(does not require
AMI)
Capital expenditure reduction
– enhanced utilization of G,T
& D assets
✔
Energy use reduction
✔
Advanced
Fault Location,
Metering
Isolation and
Infrastructure
Service
(AMI) Applied to Restoration
Operations
• Meter services
•
• Outage management
• Volt-VAR
•
management
•
• Tamper detection
• Back-Office systems
support (e.g., billing
and customer
service)
Automated feeder
switching
Fault location
AMI and outage
management
✔
Equipment
Health
Monitoring
• Condition-based
maintenance
• Stress reduction
on equipment
✔
✔
✔
Reliability improvements
✔
✔
✔
O&M cost savings
✔
✔
✔
Reduced electricity costs to
consumers
✔
Lower pollutant emissions
✔
✔
✔
Enhanced system flexibility –
to meet resiliency needs and
accommodate all generation
and demand resources
✔
✔
✔
Improved
Volt/VAR
Management
• Peak demand
reduction
• Conservation
Voltage
Reduction
• Reactive power
compensation
Synchrophasor
Technology
Applications
• Real-time and offline applications
✔
✔
✔
✔
✔
✔
✔
Source: US Department of Energy, Impact of Smart Grid Projects Funded by the Recovery Act of 2009
✔
✔
✔
✔
13
Technology taxonomy… NEMA’s
view
1. Smart Grid Solutions
(Grid Resiliency)
• Smart meters /AMI
• Feeder automation
• Fault detection, isolation, restoration
2. Microgrid & Energy Storage Solutions
• Microgrid controllers
• Distributed generation
• Distributed energy storage
3. Hardened Equipment
• Wiring
• Cabling
• Electrical components
4. Back-up Generation
• Diesel or NG generators
• Batteries, fly-wheels, etc.
5. Equipment Repositioning
Source: National Electrical Manufacturers Association,
• Elevating back-up generators
• Substation siting
14
NGRID: What will the Customer See…
Now to 5 Years
Urban, Suburban
Reliability Metrics
Pockets of Performance
Develop Value Services
Grid Sensing
Next Generation Automation
Outage Management
Two-way Comms
Converging
Cyber Security
Web Services
Applications and Data
Energy Efficiency
Faster Interconnects
5 to 10 Years
Smart Appliances
and Standards
New home area networks
Secure Renewables
Two-Way Comms
OMS/DMS
Real-time Optimization
Integrated
Voltage Control
Value Based Services
Two-way Power Flow
Opportunities
Integrated Demand
Response
10-25 Years
True Two-way Power Flow
Transaction-less Renewables
Automated Home
and Businesses
Multiple Value Services
Anticipate outages,
Continuous
optimization, and pin
point accuracy of
system trouble and
restoration
Safe, Secure, Reliable and Resilient System
15 15
NU: The Smart Grid Benefits All Stakeholders
The Smart Grid will create a digital energy system that
integrates new tools and technologies from generation,
transmission, and distribution all the way to consumer
appliances and equipment.
Self-Healing Wide-Area Protection
Distributed Generation & Alternate Energy Sources
Optimization and Improved System Efficiency
Asset Management and On-Line Equipment Monitoring
Source: Adapted from EPRI.
16
Ambient (Clean Energy Coalition)Smart Grid Emerging Technology Roadmap
REGULATORY
INFORMATION
TECHNOLOGY
GRID DEVICES
TELECOM
Incremental
(0 – 3 Years)
Strategic
(3 – 10 Years)
Transformational
(10+ Years)
• Migration of 3G to LTE and rise of small
cellular
• Ongoing shift of wired to wireless
• Tighter integration of comm. and grid /
sensor technologies
• Telecom evolution will continue to
outpace utility adoption
• M2M growth
• Low bandwidth, high latency
• 3G cellular disappears
• Requirements for larger amounts of data
• Wired connections migrate to MPLS
networks/fiber pushed deeper into
networks
• Network data load continues to increase
• Devices utilize multiple paths/providers
rather than a single provider/path.
• Telecom / utilities back-office and
customer fulfillment integration
• Migration of 4G to 5G cellular
• Increased telecom capability evolves from
nice to have to required as utility,
healthcare, transportation become
dependent on data
• High band
• width, very low latency
• Centralized intelligence
• Initial development of the tools and
control schemes to manage the
distribution system
• Self-healing and IVVC focus
• DER “low” mkt penetration
• Central intelligence combined w/
local/distributed intelligence
• Ops driven by analytics & automation
• Shift to modularity and interoperability
• Adoption of telecom techniques for grid
management
• DER “medium” penetration
• Centralized intel combined with
widespread local/distributed intel
• Ops highly automated
• All devices have 2-way comm., memory,
and processing capabilities
• Hierarchical control of field devices
• DER “high” penetration
• Competing, proprietary standards
• Software is largely centralized and
siloed
• Architecture is centralized
• Message bus limited to data center
• “Big data” is big issue
•
•
•
•
•
• Applications and architecture fully
distributed
• Silo functionality largely gone
• Data mining and analytics becomes core
competency
• Approval contingent on annual review,
pilot
• Rate base business model
• Regulatory confusion about data,
disaggregation, privacy
• Benefits proven for “low hanging fruit.”
• Some regulation/mandates re: privacy, data,
operational functionality.
• Business model shifting from rate base to
services-focused.
Standards and interoperability focus
Software less centralized and siloed
Architecture shifting to distributed
Limited field message bus
New tools for mining data for intel
• Regulatory maturity
• Business model is full retail competition /
disaggregation
17
Unitil: Goals and Objectives
Reliable
Environmentally
Friendly
Efficient
Smart
Grid
Secure
Safe
Economic
18
* U.S. National Energy Technology Laboratory
Unitil: Distribution Planning Approach
Evaluate
Options
Identify
Concerns
Option
B
System
Modeling
Option
A
Option
C
Cost
Recommendation
Benefit
Analysis
19
NU: Project Selection Methodology
•
The process evaluates the customer service impact and considers
expenditure to create a cost benefit analysis

Other Considerations used in the Project Selection Process:
– Municipal or DPU Commitments
– Communities with historically lower reliability performance (low months between outage)
– Effect of outages on customers (Significant hardship versus minimal impact)
– Environmental and safety concerns
– Asset age and performance
– Service quality metrics
20
21
22
Grid-Facing Subcommittee
Mtg. #2 Draft Agenda (2/26/13)
• Potential Grid Modernization Framework & Outcomes for Massachusetts
– David Malkin, GE presents on behalf of Subcommittee’s working group
• Potential Options & Strategies for Fast Two-Way Communication
• Potential Options & Strategies for Seamless Two-Way Energy Flow
• Potential Options & Strategies for Voltage/Var Control
– Kelly Warner, Applied Energy Group
• Subcommittee View Sharing and Discussion: Grid-Facing Modernization
– What are the most important grid-facing improvements needed?
– What is the appropriate pace for implementation of grid-facing grid
modernization?
– What are the most important criteria used to make grid-facing investment
choices?
– What regulatory policies should the group consider?
• Planning for Final Two Subcommittee Meetings
23
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