Our utility paradigm is changing… will YOU be ready? Paul Kalv Smart Grid Research Consortium Electric Director October 20, 2011 Chief Smart Grid Systems Architect City of Leesburg, Florida Leesburg Overview 23,000 electric customers also provide gas, water & internet. 9,700 (42%) AMR electric – 18,900 (34%) AMR total meters. (Discontinued further AMR deployment 2007) 140 residential electric meter AMI pilot deployed January 2008. Completed AMI Business Case December 2009. $19,500,000 SGIG from DOE & $1,240,000 EECBG from State Vendor selection completed… working on Best and Final Price Thoughts on Where to Start Identify YOUR one or two Biggest Issues Power Supply Costs Reliability Workforce Retention System Losses ??? Top Priority... Reduce Peak Demand Power Supply Demand Rates $30.00 $25.00 Combined $ per kW $20.00 $15.00 Capacity $10.00 $5.00 Transmission $FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 What was Bad… is getting Worse! Historic ARP Demand Rates 35 Projected 30 Combined $ per kW 25 20 15 Capacity 10 5 Transmission 0 FY FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 Startling Realization All kilo-watt-hours are: NOT CREATED EQUAL - Cost Differences Energy Rate ≈ $0.05 / kWh Peak Hour ≈ $20.05 (400 x) Gas: $3.50 / gal. Peak Hour: $1,403.50 (400 x) The lowest cost kilo-watt-hour is: The kilo-watt hour NOT GENERATED Charges Based on Coincident Peak Where Did We Start? 1. Developed a Vision 2. Identified 4 Broad Goals 3. Focused efforts on developing Strategies Leesburg’s 2020 Vision Leesburg will operate the best and most secure electric grid available in the country by the year 2020 by incorporating information and control technologies that can support four goals: (1) empowering consumers, (2) rewarding conservation and energy efficiency, (3) improving distribution reliability and resiliency (4) expanding the use of renewable energy, distributed generation, and alternative technologies. Focus - Empowering Consumers AMI Related Technologies Advanced Metering Infrastructure (Focus: Consumer Needs not Technology) Smart Meters. Communications network, or 2 or 3 or 4…. or more Meter Data Management System Communications infrastructure and meter installation Enterprise Service Bus Field Acceptance Testing Home Area Network In Home Display and web portal Programmable Communicating Thermostat Direct Load Control Pay-as-you-go Focus: Rewarding Efficiency & Conservation Energy Efficiency & Conservation Initiatives Consumer Education & Information to change behavior Communications Plan Who to notify When to notify How to notify Create Focus Groups to receive consumer input Time Differentiated Rate Schedules – offer choices TOU, PTR, Direct Load Control, Other Utility control or Consumer control Security and Personally Identifiable Information(PII) Focus – Improving Reliability and Resiliency Reliability and Resiliency Initiatives (Automation) Cyber Security Substation Power Transformer w/Smart Grid monitoring Distribution Transformer Monitoring Integrated Distributed Generation Communicating Distribution Automation equipment SCADA Upgrades Communicating Faulted Circuit Indicators Trip Saver Cutouts Integrated Volt/VAR Control Focus – Expanding the use of Renewable Energy, Distributed Generation, and Alternative Technologies “Preparing for the Future” Initiatives - (Complete) Integrating customer owned Solar PV systems Integrated Distributed Generation – Utility and Customer “Preparing for the Future” Initiatives - (Future) Integrating PHEV Load and Storage 2 MW Battery Storage at each of our 5 substations ??? Current and Emerging Technologies Ready Now: Demand Response DG & Renewable Resources Distribution Automation Metering – (Reliability and remote upgrade issues) Meter Data Management Systems Outage Management Systems Field Installation Services Business Process Change Management Pay-as-you-go Current and Emerging Technologies Good Improvement and Choices – will become better: AMI Communications – (DA monitoring and control?) DAN Communications Customer Web Portal In Home Display ZigBee vs. WiFi Storage – huge potential for reliability and DR benefits Current and Emerging Technologies Future – Not yet ready for prime time: Home Area Networks Standards are slow to emerge Smart Appliances Leesburg’s Distribution Smart Grid Landscape Control Center Meter & Billing CIS GIS AMI Head-end Mobile Data System Communications Communications (Existing Fiber) (Existing Fiber) PTZ Network Camera Substation Substation SCADA OMS Gateway Communications LTC, Voltage Regulator, and/or Capacitor Control Feeder Protection FCI FCI Feeder Monitor Feeder Automation Network (DAN) Voltage Regulator Control PTZ Network Camera Wide Area Network (WAN) FCI FCI Feeder Protection Line Recloser Neighborhood Area Network (NAN) Revenue Meters Building Automation System Switch Control Capacitor Control Switch Control Customer Generation & Energy Storage Leesburg’s DR Strategy To Date Strategies Conversation Voltage Reduction (CVR) Integrated Distributed Generation - City Gensets (IDG) Partnering with hospital and two Supermarkets (LRCR) Results Saved $1st MM in 14 months Saved $2nd MM in 7 months and 3rd MM in 7 months CVR IDG LRCR FY 2010 31.0 MW $591 K 35.2 MW $654 K 11 MW $222 K FY 2011 42.8 MW $861 K 15 MW $304 K 24.6 MW $492 K AMI Evaluation &Vendor Selection Began with very comprehensive and detailed proposal Selected top four proposals for final consideration Weighted Score used to Rank final four vendors Final four presented a 3 day AMI demonstration Demonstration script and DA controllers Major emphasis on demonstrating ability to deliver Distribution Functions Secondary emphasis on gaining a better understanding of the technology and observing team interaction and problem solving Final Evaluation Spreadsheet AMI Proposal Evaluation Matrix GOOD FAIR POOR Evaluation Element AMI Communications Infrastructure EVALUATION LEGEND Business Process Org Change Mgmt Customer Web Portal Electric Metering Enterprise Service Bus Integration Home Area Network Metering Communication Installation Meter Data Management System Operational Transition Prepay Metering Project Management Oversight Validating Field Performance AMI System Demand Response Management System* * Not an evaluation element pdk 5-27-2011 Vendor Vendor Vendor Vendor Overall #1 Overall #2 Overall #3 Overall #4 8 Field Demonstration Sites DA Controllers at each Site Location 1 2 3 4 5 6 7 1 Tower Recloser Control Switch Control Regulator Control Recloser Control Capacitor Control 2 3 Head End Recloser Control Switch Control Regulator Control Recloser Control Capacitor Control Com to Enclosed meters & Gen. Control Purpose City Provided Equipment Meter Encl. Vendor Provided Equipment Collector, and Form 2S meter, & Communicate w/ devices Notes Controller: *SEL 651R & *SEL 351S Meter Encl. Controller: *SEL 2414 Form 2S meter & Communicate w/ devices Form 2S meter & Communicate w/ devices *SEL equipment RS-232, RJ45 DNP 3.0 Modbus IEC 61850 Meter Encl. Controller: *SEL 2431 **IP Camera Meter Encl. Controller: ABB RER620 ABB PCD Meter Encl. Controller: QEI eCAP II and *SEL 734B Meter Encl. Woodward Easy Gen 3000, & **IP Camera 2 Meter Encl. Form 2S meter & Communicate w/ devices Form 2S meter & Communicate w/ device Form 2S meter & Communicate w/ device Form 9S meter Form 16S meter Antenna? **IP Camera: Panasonic BBHCM580A PTZ Network Camera - Form 9S installed in steel cabinet - Form 16S installed in building Business Case & Cash Flow Desire project AMI elements to have good payback DA equipment treated as Capital Improvements Original AMI Business Case prepared in 2009 First 2011 Project Cash Flow – Breakeven in year 19 A dagger to the heart Revised 2011 project Cash Flow – Breakeven in year 6 Working to be cash positive in year one! Customer Participation Required for Success!!! Next Steps Finalize Communications/Marketing Plan Replicate successes of others Finalize Rate and Rebate offerings Share the savings Revise business processes for operational benefits One of the AMI elements Revise business policies for operational benefits Changing what we do as well as how we do it Closing Thoughts to Consider Attack your biggest issues – our needs are different Focus on your Consumer - not the technology Create a Vision and Goals - to drive your strategies Prepare a Business Case – you may be surprised Smart Grid entry points – start with what you have AMI or Distribution Automation Learn from others – Good, Bad, and Ugly Replicate only the GOOD Your business model will change – back office impacts You must take action to compete! Questions? Acknowledgement and Disclaimer Acknowledgement: This material is based upon work supported by the Department of Energy under Award Number DE-OE-0000236. Disclaimer: This report was prepared as an account of work sponsored by an agency of the United States Government. Neither the United States Government nor any agency thereof, nor any of their employees, makes any warranty, express or implied, or assumes any legal liability or responsibility for the accuracy, completeness, or usefulness of any information, apparatus, product, or process disclosed, or represents that its use would not infringe privately owned rights. Reference herein to any specific commercial product, process, or service by trade name, trademark, manufacturer, or otherwise does not necessarily constitute or imply its endorsement, recommendation, or favoring by the United States Government or any agency thereof. The views and opinions of authors expressed herein do not necessarily state or reflect those of the United States Government or any agency thereof. Good luck, have fun, and… HANG ON TIGHT! Thank YOU paul.kalv@leesburgflorida.gov