Electric Program Investment Charge
Joint Investor Owned Utilities’ EPIC Administrators
Webcast
September 28, 2012
Agenda
•
Background
•
Program Format and Initiatives Kevin Dasso
•
PG&E Illustrative Programs
Kevin Dasso
•
SDGE Preliminary Programs
Frank Goodman
•
SCE Illustrative programs
Doug Kim
•
Wrap Up
Doug Kim
•
Questions and Answers
Doug Kim
1
Electric Program Investment Charge (“EPIC”)
• The California PUC established EPIC in May, 2012 through D.12-05-037 to:
– “provide public interest investments in applied research and
development, technology demonstration and deployment, market
support, and market facilitation, of clean energy technologies and
approaches for the benefit of electric ratepayers of Pacific Gas and
Electric Company (PG&E), San Diego Gas & Electric Company (SDG&E)
and Southern California Edison (SCE), the three large investor-owned
utilities (IOUs).”
2
Summary of EPIC Decision
Funding &
Admin.
Investment
Areas
 $162M/annually in ratepayer funding (20122020)
 CEC administers 80% of the authorized
budget; IOUs administer 20%
 Applied Research: $55M/annually (CEC only)
 Technology Demonstration & Deployment
− CEC $45M, PG&E $15M, SCE $12M, SDG&E $3M
(/annually)
 Market Facilitation: $15M/annually (CEC only)
Electricity
System
Value Chain
 Grid Ops / Mkt. Design  Distribution
 Generation
 Demand-Side Mgmt
 Transmission
3
IOUs are Limited to Funding Only Technology
Demonstration & Distribution Programs
Technology Demonstration and Deployment - The
installation and operation of pre-commercial
technologies or strategies at a scale sufficiently large
and in conditions sufficiently reflective of anticipated
actual operating environments to enable appraisal of
the operational and performance characteristics and
the financial risks
Collaborative Development of IOUs’ EPIC Plans
• Starting June 2012, the IOU program administrators have
met semiweekly to develop the Working IOU EPIC
Framework to guide the individual IOU EPIC plans
• The Working IOU EPIC Framework was presented to
stakeholders at public workshops in August, as well as to
the CEC, CPUC Staff, internal IOU subject matter experts,
and industry experts (including EPRI), and has been
refined with their input
• These groups have validated that the Working IOU EPIC
Framework correctly identifies current technology gaps
and aligns with driving California policies and goals
5
Administration of IOUs’ EPIC Programs
• Coordination Efforts Will Continue
– Next Steps: IOUs and the CEC will work together to assess duplication and identify if any
co-funding or IOU-CEC collaboration opportunities exists
– After EPIC Applications are Approved:
• IOUs and the CEC will continue to coordinate regularly to avoid unnecessary
duplication, identify co-funding opportunities , and leverage completed research
• Semi-annual stakeholder meetings will be held to obtain input and present interim
results
• Existing collaborative forums will be consulted, to avoid duplication and identify
industry gaps
• IOUs will file Annual EPIC Reports with the CPUC
• Some EPIC programs will be executed by IOUs in-house using best practices while
others will be pay-for-performance contracts
– Pay-for-Performance contracts will generally be competitive
6
IOU Working EPIC Program Framework
EPIC Technology Demonstration and Deployment Priority Utility Objectives
Demonstrate System and Public
Safety
Cross Cutting/ Foundational Strategies & Technologies
Smart Grid Architecture, CyberSecurity, Telecommunications, Standards
Health/Environmental Impact, Hazard Mitigation,
System Integrity
Demonstrate Reliability
Reliability Improvement, Maintaining Reliability
in the face of Grid changes
Affordable Environmental &
Energy Policy Attainment
AB32, RPS, Energy Efficiency, Distr.
Gen/Renewables & Integration (Distributed
& Large Scale)
Renewables and Distributed Energy Resources Integration
• Integrate Distributed Energy Resources, Generation and Storage Safely and Reliably
• Demonstrate Adaptive Protection Strategies
• Generation Transparency and Flexibility
Grid Modernization and Optimization
Key
“Megatrend”
Drivers & Policy
Objectives
• 33% RPS
• CSI
• Gov’s 12,000 MW
DG Plan
• OTC retirements
• AB32
• Energy Storage OIR
•
•
• Demonstrate Strategies and Technologies to Optimize Existing Assets
• Prepare for Emerging Technologies
• Design and Demonstrate Grid Operations of the Future
•
Customer Focused Products and Services Enablement
•
•
•
• Leverage the SmartMeter Platform to drive Customer Service Excellence
• Integrate Demand Side Management to Optimize the Grid
• Respond to Emerging Grid Integration Issues
•
•
•
SB17
Aging
Infrastructure
Workforce
Development
California
Economic
Resiliency
ZNE
CSI
Net Energy
Metering
Peak Reduction
EE Strategic Plan
Renewables and Distributed Energy Resources Integration
• Integrate Distributed Energy Resources, Generation and Storage Safely and Reliably
• Demonstrate Adaptive Protection Strategies
• Generation Transparency and Flexibility
IOU CONSIDERED INITIATIVES
• Integration of Distributed Energy Resources (DER), Generation and Storage
– Pilot test multiple uses of distributed energy resources and assess costs and
benefits.
– Pilot Energy Storage End Uses to test capabilities of emerging storage
technologies that lack widespread commercial operating experience
– Demonstrate DER aggregation and control as a fleet to provide substantial
reliability improvement at the circuit level whether circuits have high or low
penetration
• Adaptive Protection Strategies
– Safely provide for two-way power flows on the distribution system
– Reliably integrate and safely operate with increasing levels of variable
energy resources on the transmission system
– Closed loop control for special protection schemes
• Generation Transparency and Flexibility
– Pilot test data aggregation and signals from DER to determine and inform
IOU and CAISO operations of aggregate output
– Pilot new forecast methods (Micro-climates & automated load and
distributed resources) to better predict aggregate output
– Pilot modifications and systems for more flexible use of existing generation
to reduce power system operating costs and environmental impacts
8
Grid Modernization and Optimization
• Demonstrate Strategies and Technologies to Optimize Existing Assets
• Prepare for Emerging Technologies
• Design and Demonstrate Grid Operations of the Future
IOU CONSIDERED INITIATIVES
•
•
•
Demonstrate Strategies and Technologies to Optimize Existing Assets
– Improve Distribution System Safety & Reliability through New Data Analytics
Techniques (data capture, analytics, visualization & correlation technology to improve
maintenance, detect outages, proactively identify potential safety hazards
Preparing for Emerging Technologies
– Demonstrate promising new transmission and distribution technologies to address
aging infrastructure needs & existing equipment/facility limitations:
– Smart Distribution Circuits: improve outage restoration and regulation on
circuits through intelligent and coordinated switching of strategically placed
equipment
– Demonstrate Substation Automation, including monitoring, interoperability
and intelligent alarming to increased reliability, efficiency, and safety of bulk
power and distribution substations
Designing Grid Operations of the Future
– Demonstrate new technologies, integration and human situational awareness
considerations to support the operator and integrated operations of the future
– Assess the potential for future “state measurement” v. state estimation in grid
operations
– Distributed Control for Smart Grids: Pilot control system infrastructure that can meet
the needs of the current and future ever-evolving complex power system
9
Customer Focused Products and Services Enablement
• Leverage the SmartMeter Platform to drive Customer Service Excellence
• Integrate Demand Side Management Programs to Optimize the Grid
• Respond to Emerging Grid Integration Issues
IOU CONSIDERED INITIATIVES*
• Leverage the SmartMeter Platform to drive Customer Service Excellence
– Pilot energy usage data services for customers & approved third parties
– Pilot Subtractive Billing with Submetering for Evs
– Demonstrate data analytics capabilities of the SmartMeter platform to enable
customers
• Integrate Demand Side Management to Optimize the Grid
– Demonstrate integration and automation strategies/technologies for various customer
energy resources (storage, DER, PEV, PV, DR)
– Demonstrate DSM resources that can be integrated and delivered in a targeted
manner to provide reliable & sustained demand reductions to postpone distribution
and transmission capacity expansions
• Respond to Emerging Grid Integration Issues
– Pilot and evaluate Zero Net Energy (ZNE) in specific building classes to test business
models that support IOU customers
– Pilot PEV Smart Charging and Vehicle to Grid technologies that encourage customer
adoption of behaviors that further state goals
– Evaluate costs, benefits and technical issues associated with vehicle to grid power
supply
Note: Initiatives in this category will leverage existing RD&D initiatives in Energy Efficiency and Demand Response Programs
10
Cross Cutting/ Foundational Strategies & Technologies
Smart Grid Architecture, CyberSecurity, Telecommunications & Standards
IOU CONSIDERED INITIATIVES
• System Architecture
– Pilots distributed or hierarchical control systems infrastructure for T&D systems
– Communicate & coordinate new & existing field devices (goal: no stranded assets)
– Smart Grid architecture :Pilot IOU demonstrations of electrical and communication
system architecture configurations, protocols and standards
– Deep Grid Coordination: Demonstrate system architectures with the potential to
incorporate new and existing assets, including customer DER into a coordinated smart
system
• Cybersecurity
– Pilot new strategies and technologies to make the entire electrical system more secure
• Data Analytics
– Demonstrate best practices for filtering increasing data to make strategic use of data in
evolving distributed control systems
– Field test strategies and technologies that promote safe, reliable and affordable
distributed control and automation
• Telecommunications & Standards
– Pilot new communications architecture, standards, technologies, and strategies for
addressing current and future needs
• Technical Workforce
– Identify skills gaps to aid in developing workforce that can operate and maintain the
power systems & technologies of the future
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PG&E Illustrative Programs
Renewables and Distributed Energy Resources Integration
- Integrate Distributed Energy Resources, Generation and Storage Safely and Reliably
- Adaptive Protection Strategies;
- Generation Transparency & Flexibility
• Energy Storage End Uses
Grid Modernization and Optimization
- Demonstrate Strategies and Technologies for Optimizing Assets
- Prepare for Emerging Technologies
- Design and Demonstrate Grid Operations of the Future
• Improve Distribution System Safety & Reliability through New
Data Analytics Techniques
Customer Focused Products and Services Enablement
- Leverage the SmartMeter Platform to drive Customer Service Excellence
- Provide Greater Billing Flexibility & Visibility
- Integrate Demand Side Management for Grid Optimization
• Pilot Subtractive Billing with Submetering for EVs
PG&E Illustrative Program: Energy Storage End Uses
•
Technology or Strategy to be Demonstrated -The CPUC energy storage proceeding (Order Instituting
Rulemaking 10-12-007) identified 20 Energy Storage Systems (ESS) end uses in four categories. This illustrative
program would leverage PG&E’s installed ESS to test more of these capabilities by expanding into additional
end uses beyond the original funding commitments (e.g., new end uses could include bidding into the
upcoming Non Generator Resources (NGR) CAISO market, testing against Resource Adequacy requirements,
etc.).
•
Concern, Problem, or Gap to be Addressed - ESS have the potential to contribute to solving many challenges
on the grid, however, their full capabilities have not been widely demonstrated and lack of commercial
operating experience has been identified as one of the barriers to ESS deployment.
•
Pre-Commercial Technology or Strategy Aspect – Few, if any, ESS have been tested in multiple end-use
scenarios
•
How the Program Avoids Duplication from Other Initiatives – PG&E is currently building 2 MW and 4 MW
battery installations at two distribution system locations. The installations and ESS technology is different than
other CA Utilities and leverages existing PG&E assets
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PG&E Illustrative Program : Energy Storage End Uses
•
Prioritization: High Priority Program
Low incremental cost as EPIC funds are not required for installation of the ESS programs
Leverages existing PG&E-funded and CEC grant-assisted programs
Quick hit – ESS installations are underway; high probability of success in determining feasibility of
multiple uses
Necessary to meet future clean energy goals and address critical policy uncertainty
•
EPIC Primary or Secondary Principles Met
Increased Reliability
Lower Costs
Greenhouse Gas Reductions
Efficient Use of Ratepayer Monies
14
PG&E Illustrative Program :
Improve Distribution System Safety & Reliability through New Data Analytics Techniques
•
Technology or Strategy to be Demonstrated – Utilize data analytics advances to improve grid safety and
reliability. Demonstrate that the ever increasing amounts of data can be mined and combined efficiently
and cost-effectively in targeted, high–impact areas such as risk-based asset management, enhanced
safety hazard mitigation and proactive outage prediction.
•
Concern, Problem, or Gap to be Addressed – Current processes are time-consuming, manuallyintensive data collection efforts that result in large data extracts that preclude timely or meaningful
analysis. Existing siloed IT infrastructure is another limitation; Legacy hardware and traditional software
is not sufficiently scalable and would require costly integration to meet future analytics and reporting
needs.
•
Pre-Commercial Technology or Strategy Aspect – “Big Data” is an emerging opportunity area for
utilities. Common Internet Technologies (Data “mash-ups”, visual recognition, instant ad-hoc search)
have significant utility use-cases. For example:
A customer photographs a fallen tree on an electric line and uploads the picture. the utility tags it,
automatically accesses records, identifies the line and sends a response crew with directions while
auto-notifying impacted customers of the outage and potential safety hazard.
Utility operators combine data such as weather forecasts, high fire danger areas, historical asset
performance data, and vegetation management to significantly improve fire prediction, prevention
and response capabilities, and share this information real time with first responders.
Engineers and crews utilizing millions of SCADA measurements, protective relay data, maintenance
history, equipment test records, and other sources optimize maintenance and replacement of
costly equipment such as substation transformers and circuit breakers.
15
PG&E Illustrative Program:
Improve Distribution System Safety & Reliability through New Data Analytics Techniques
•
How the Program Avoids Duplication from Other Initiatives – Some utilities are pursuing limited data analytics
pilots, however data solution providers require access to utility specific data, systems and business processes to
test and prove the technology. While data is unique to each utility, the individual pilot cases need to be
aggregated to provide “network effect” benefits that can be leveraged by multiple utilities and commercial
vendors.
•
Prioritization: High Priority Program
High probability of success; short “prototyping” time required to prove improvements in targeted areas
Significant potential to proactively address safety and reliability before incidents occur
Provide multiple vendors with valuable input required to render technology commercially viable
•
EPIC Primary or Secondary Principles Met
Increased Reliability
Increased Safety
Societal Benefits
Efficient Use of Ratepayer Monies
Economic Development
Job Creation
Potential Energy and Cost Savings
16
PG&E Illustrative Program:
Pilot Subtractive Billing with Submetering for EVs
•
Technology or Strategy to be Demonstrated –Subtractive billing with submetering for EVs is a potentially lowcost method to offer customers increased flexibility in choosing beneficial rates for their EV usage. This
includes:
Avoiding the need to install a separate meter and service panel when choosing the PG&E separate meter
EV-specific rate schedule; and
Potentially provide a reasonable way to track the number of miles driven using electricity – as opposed
to traditional fossil fuel – for transportation
•
Concern, Problem, or Gap to be Addressed – A pilot, with EV customers in the different submetering scenarios,
would inform implementation for the wider PG&E customer group.
•
Pre-Commercial Technology or Strategy Aspect – This pilot would help develop the submetering protocol,
national standards, and demonstrate the level of demand for subtractive billing with submetering for EVs. If
there appears to be sufficient demand from customers, it would help provide a rationale for the costeffectiveness of implementing a full-scale solution.
17
PG&E Illustrative Program:
Pilot Subtractive Billing with Submetering for EVs
•
How the Program Avoids Duplication from Other Initiatives – IOUs were ordered to implement
subtractive billing with submetering for EVs in the Phase 2 decision of R.09-08-009. The IOUs with other
stakeholders filed an extension letter with the Executive Director of the Commission, notifying the CPUC
that the IOUs were not provided sufficient time or any funding to implement such a solution. This letter
was approved by the CPUC. The IOUs have been working on developing required components to allow
subtractive billing with submetering for EVs - such as a tariff and technical metering document - but
nothing has been implemented or finalized at this time.
•
EPIC Primary or Secondary Principles Met
Lower Costs
Societal benefits
Greenhouse gas reductions
Efficient use of ratepayer monies
18
Proposed SDG&E Programs
Renewables and Distributed Energy Resources Integration
- Integrate Distributed Energy Resources, Generation and Storage Safely and Reliably
- Adaptive Protection Strategies;
- Generation Transparency & Flexibility
• Non-Traditional Uses of Distributed Energy Resources
Grid Modernization and Optimization
- Demonstrate Strategies and Technologies for Optimizing Assets
- Prepare for Emerging Technologies
- Design and Demonstrate Grid Operations of the Future
• Smart Distribution Circuit
• Distributed Control for Smart Grids
• Pilot for Visualization and Situational Awareness System
Cross-Cutting/ Foundational Strategies & Technologies
- Smart Grid Architecture
- Cybersecurity
- Telecommunications Standards
• Smart Grid Architecture Pilots
SDG&E Plan: Five Interrelated Pilot Demonstration
Programs on Key Pinnacles of Smart Grid Development
Smart Grid
Architecture Pilots
Smart Distribution
Circuit Pilot
Pilots to Determine
Business Case for
New DER Functions
Smart Grid
Distributed Control
Pilot
Pilot for
Visualization and
Situational
Awareness System
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SDG&E Proposed Program 1: Smart Grid Architecture Pilots
•
•
•
•
•
•
Technology or Strategy to be Demonstrated – Pilot demonstrations of electrical and communication system
architecture components, configurations, and standards to evaluate their suitability for inclusion in the SDG&E
smart grid architecture. The communication architecture, which will need to be compatible with the electrical
architecture, must have standardized device information models (object models) and protocols for the
information transfer needed to operate a power system that is becoming increasingly complex.
Concern, Problem, or Gap to be Addressed – SDG&E’s smart grid deployment has reached the point at which it
is necessary to network the actively controllable (“smart”) devices with a monitoring and control system to
govern the system operation. To do so, cannot be a random process and requires commitment to an
architecture for both the electric system and the communication and control system that will be overlaid on it.
Pre-Commercial Technology or Strategy Aspect – Utilities have been developing smart grids comprised of
autonomous smart devices. An architecture is needed to network the increasingly complex system and deliver
the full benefits of coordinated operation of these devices and the electrical circuits in which they are placed,
per the overall vision of smart grids.
How the Program Avoids Duplication from Other Initiatives – Each utility will require its own architecture,
because the choice of smart grid features (components and system configurations) will differ from one utility to
the next.
Prioritization: High Priority Program
– Autonomous smart devices are proliferating rapidly on the power system. A robust architecture is
needed for device networking to support operation of this dynamically changing power system.
– Provides a structure for continuing power system modernization
– Provides an architecture for overlaying information systems on the electrical system
EPIC Primary or Secondary Principles Met
Increased reliability
Improved power system performance and lower operating costs
Increased safety
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Societal benefits
SDG&E Proposed Program 2: Distributed Control for Smart Grids
•
•
•
•
•
•
Technology or Strategy to be Demonstrated – Pilot demonstration of distributed control unit to determine its
suitability for inclusion in a hierarchical control infrastructure. The unit would process data coming from smart
devices in an individual feeder or larger distributed circuit region and manage the smart devices and the
emerging reconfiguring actions of the region in a coordinate manner.
Concern, Problem, or Gap to be Addressed – SDG&E does not yet have a control system infrastructure that is
robust enough for the expected increases in power system complexity stemming from grid modernization. This
program will pilot a distributed control unit that achieves the needed capabilities to support further
advancement of SDG&E’s smart grid.
Pre-Commercial Technology or Strategy Aspect – The distributed control system must be capable of processing
a much larger amount of data coming from the various new devices and from widely deployed sensors and
monitoring nodes that provide intelligence on system status.
How the Program Avoids Duplication from Other Initiatives – Each utility will require its own control system
approach, because the choice of smart grid features (components and system configurations) will differ from
one utility to the next. The SDG&E control system pilot program will be synchronized to SDG&E’s smart grid
architecture development, which is a parallel program.
Prioritization: High Priority Program
– Need a robust and adaptive control systems to manage an increasingly complex smart grid
– Distributed control unit would be integrated into a hierarchical control system for SDG&E grid
modernization
– Control system algorithms must be able to coordinate and dispatch devices and circuit reconfiguring to
respond to contingencies in a fast coordinated manner
EPIC Primary or Secondary Principles Met
Increased reliability and improved management of distributed resources
Improved power system performance and lower operating costs
Increased safety
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Societal benefits
SDG&E Proposed Program 3: Smart Distribution Circuit
•
•
•
•
•
•
Technology or Strategy to be Demonstrated – This program seeks to improve outage restoration and regulation
on circuits through intelligent and coordinated switching of strategically placed equipment.
Concern, Problem, or Gap to be Addressed – The traditional and typical distribution circuit is managed by
distribution operators, field personnel and scheduled or voltage-triggered switching of Load Tap Changers
(LTCs), capacitor banks and regulators. While this traditional management scheme has sufficed for operations
in the past, a more reliable and efficient distribution circuit is feasible by taking advantage of new
communication and control technologies.
Pre-Commercial Technology or Strategy Aspect – With the low resolution circuit load data and static circuit
simulations available today, advanced control cannot be developed properly. This program would aim to
upgrade distribution circuit power quality sensing and distribution circuit simulation to implement control
algorithms that manage new and existing distribution equipment.
How the Program Avoids Duplication from Other Initiatives – Each utility has a unique current situation.
SDG&E is currently working on a few isolated programs to improve distribution circuits, moving from manual
operation of devices to remote control. While the aforementioned programs make up the components
required for a smart distribution circuit, SDG&E has not yet attempted to optimize the operation and
coordination of the various smart components together.
Prioritization: High Priority Program
– This program focuses on optimizing the choices made for new components in smart grid circuits
– This program provides a basis for circuit optimization to complement the other planned programs on
architecture development and distributed control for the SDG&E smart grid
EPIC Primary or Secondary Principles Met
Increased reliability and more rapid restoration processes
Improved power system performance and lower operating costs
Increased safety
Societal benefits
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SCE Illustrative Programs
Renewables and Distributed Energy Resources Integration
- Integrate Distributed Energy Resources, Generation and Storage Safely and Reliably
- Adaptive Protection Strategies;
- Generation Transparency and Flexibility
• Distributed Energy Storage (DES)
Grid Modernization and Optimization
- Demonstrate Strategies and Technologies for Optimizing Assets
- Prepare for Emerging Technologies
- Design and Demonstrate Grid Operations of the Future
• Substation Automation
Cross-Cutting/ Foundational Strategies & Technologies
- Smart Grid Architecture
- Cybersecurity
- Telecommunications Standards
• Deep Grid Coordination
SCE Illustrative Program: Substation Automation
•
•
•
•
•
Concern, Problem, or Gap to be Addressed – SCE’s “Substation Automation-3 (SA-3) Phase III” program would
demonstrate the interoperability, automated configuration, configuration management, and security benefits of
the SA-3 Phase II program on the bulk power substation and legacy automated distribution substations, as well as
demonstrate an intelligent alarming system for substation operators. The goal is to enhance automation
capabilities to allow remote control and monitoring and full integration of SCE’s substation and distribution
automation programs, drive competition and innovation in the automation technology marketplace, ensure
compliance with NERC/CIP standards, and enhance the ability of substation operators to make critical operation
decisions.
Technology or Strategy to be Demonstrated – The SA-3 Phase III program is a high priority for SCE due to
NERC/CIP compliance requirements, potential obsolescence of up to 7,000 intelligent electronic devices (IEDs) in
350 substations over the coming decade, and the difficulty of making critical operating decisions while being
overwhelmed by an avalanche of unfiltered alarms. This program will leverage successful strategies from SCE’s SA3 Phase II capital deployment and Common Cybersecurity Services (CCS) to demonstrate increased reliability,
efficiency, and safety of bulk power and distribution substations.
Pre-Commercial Technology or Strategy Aspect – This proposed demonstration program would help optimize
existing automation investments by augmenting SCE’s ability to communicate with distribution automation
programs and upgraded substations from Phase II of the SA-3 program. SCE’s substations will also be better
prepared to integrate emerging technologies due to the IEC 61850 standard utilized for SA-3, and grid operators
will benefit from improved situational awareness created by intelligent alarming.
How the Program Avoids Duplication from Other Initiatives – Applying lessons learned from SCE’s Distribution
Substation Automation program to bulk power Substation Automation.
EPIC Primary or Secondary Principles Met
Increased reliability
Lower costs
Increased safety
Efficient use of ratepayer monies
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SCE Illustrative Program: Deep Grid Coordination
•
•
•
•
•
Concern, Problem, or Gap to be Addressed – SCE’s objective for its “Deep Grid Coordination” program is to
provide and demonstrate mechanisms for reliable integration of customer owned distributed energy
resources(DER) into the distribution network. The goal is to explore distribution system market designs that
increase the value of customers’ DER investments and ensure, safe and reliable electricity supply is available to all
customers at reasonable cost.
Technology or Strategy to be Demonstrated – Building on the Irvine Smart Grid Demonstration program’s
findings on how DER and ZNE impact the distribution network. The Deep Grid Coordination program would focus
on how to manage customer owned DER to ensure distribution network reliability is maintained and both DER
customers and IOUs are incented to work together to maintain the integrity of our electric grid. Given the pace of
DER adoption and projected timelines for DER rate parity with tiered tariff rates, this is a high priority program.
There are opportunities to leverage EPIC investment with DOE cost share.
Pre-Commercial Technology or Strategy Aspect – This proposed research program would provide valuable and
demonstrable methods that benefit the customers, the health of the electric grid and would serve as a guide to
evolve the IOU towards participating in a DER future. This program would demonstrate additional value to
customer’s investments in DER by using these assets to support grid operations, reliability and safety in and
across areas of high DER penetration.
How the Program Avoids Duplication from Other Initiatives – Applying lessons learned from SCE’s ISGD
Demonstration program to DER and ZNE impacts on the distribution network.
EPIC Primary or Secondary Principles Met
Increased reliability
Improved management of distributed resources
Improved power system performance and lower operating costs
Increased safety
Societal benefits
Efficient use of ratepayer monies
26
SCE Illustrative Program: Distribution Energy Storage (DES)
•
•
•
•
•
Concern, Problem, or Gap to be Addressed – This program will validate reliability improvements that can be
provided with higher penetration of DES when distributed strategically on a particular circuit, especially in
instances where reliability of lower voltage circuits (e.g., 4kV circuit) are acute and often have limited solutions
requiring full circuit revamps in most instances. It's expected when DES are aggregated and controlled as a fleet,
the aggregated solution will provide substantial reliability improvements at the circuit level whether such circuits
have high or low DER penetration. Areas of reliability improvements include VAR support, feeder relief, DER
smoothing (with higher levels of DER penetration), and voltage regulation at multiple points along the circuit.
SCE Planning and Engineering, Generation, ES&M, TP&S and TSD have all been consulted and are impacted by
energy storage as it arrives on SCE’s grid (through PEVs) or is deployed (through grid-connected storage devices).
Technology or Strategy to be Demonstrated – The utility industry has long been governed by the need to
instantaneously match supply with demand; now with the integration of variable energy resources on the grid
and the many regulatory drivers, including the CA Energy Storage OIR, it faces the challenges of utilizing new
technologies, such as energy storage systems, and ensuring reliable, affordable, and safe electricity during
periods of low, intermittent, or disrupted generation.
Pre-Commercial Technology or Strategy Aspect – Not approving this program will impair SCE’s ability to
understand the value of distributed energy storage systems such as CES, which was identified as one of the most
promising storages option by SCE's strategic planning work. As large-format battery production scales up due to
increasing numbers of PEVs and technology improvements, costs of energy storage systems should decrease
dramatically. Thus, a larger number of applications could become economically viable within the next 5 to 10
years. This program leverages best practices and knowledge gained from the interconnection and operation of
the CES unit under the CES & Controls Evaluation program and the ARRA-funded, ISGD Subproject 1.
How the Program Avoids Duplication from Other Initiatives – When DES are aggregated and controlled as a fleet,
the aggregated solution will provide substantial reliability improvements at the circuit level whether such circuits
have high or low DER penetration.
EPIC Primary or Secondary Principles Met
Societal benefits
Increased Reliability
Efficient use of ratepayer monies
Lower Costs
27
Next Steps & Written Comment Feedback
• Additional Information Regarding Each IOU Plan Will Be
Provided to Interested Parties. If you would like a copy
of the Presentation, please send requests to:
– SCE: advancedtechonology@sce.com
– PG&E: Eileen.Cotroneo@pge.com
– SDG&E: http://sdge.com/regulatory-filing/3749/electricprogram-investment-charge-epic
• Written Comments Due by October 4, 2012
– SCE: advancedtechonology@sce.com
– PG&E: Eileen.Cotroneo@pge.com
– SDG&E: Frank Goodman at
FGoodman@semprautilities.com
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