MA DPU Electric Grid Modernization Working Group Reports

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MA DPU Electric Grid Modernization Working Group Reports From Subcommittees Steering Committee Meeting #2

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 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; Av. Com Corporation: Fred Avila; & Sentinel Works: Jim Hirni • Regulatory Policies • Subcommittee View Sharing and Discussion 2

Unitil: Pilot Program Results 3 3

Unitil: Pilot Program Results 3 3

Preliminary Findings NSTAR Preliminary Results: Load reductions during summer events vary with the rate

Preliminary Findings NSTAR Preliminary Results: Load reductions during summer events vary with the rate and technology • • • Automated load control via thermostats achieves reductions of 0. 7 – 0. 8 k. W CPP rate without thermostats saves ~0. 2 k. W 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

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

NGRID: Customer Choices New Rates Hourly Pricing Program (HPP) Critical Peak Pricing (CPP) Peak Time Rebate (PTR) 6 6

NGRID: Results To Date • Early Field Trial (EFT) meters in place since March

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

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Is Hybrid Drive-by or AMR Fixed Network a Realistic Alternative [to AMI]? (Software/HAN or

Is Hybrid Drive-by or AMR Fixed Network a Realistic Alternative [to AMI]? (Software/HAN or Choice. Connect) • • • Allows customer interaction Allows appliance control Interval data for flexible pricing (TOU, RTP, CPP, etc. ) On demand reads Realistic additional cost Av. Com Presentation 9

Customer-Facing Subcommittee Mtg. #2 Draft Agenda (2/26/13) • Alternative Metering Scenarios, Functions, Costs for

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

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

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)

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 Automated feeder switching Fault location AMI and outage management Equipment Health Monitoring • Condition-based maintenance • Stress reduction on equipment support (e. g. , billing and customer service) ✔ ✔ 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

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

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

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

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 3 G 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 • M 2 M growth • Low bandwidth, high latency • 3 G 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 4 G to 5 G 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 • • • Approval contingent on annual review, pilot • Rate base business model • Regulatory confusion about data, disaggregation, privacy • Benefits proven for “low hanging fruit. ” • Regulatory maturity • Some regulation/mandates re: privacy, data, • Business model is full retail competition / operational functionality. disaggregation • Business model shifting from rate base to services-focused. 17 Standards and interoperability focus Software less centralized and siloed Architecture shifting to distributed Limited field message bus New tools for mining data for intel • Applications and architecture fully distributed • Silo functionality largely gone • Data mining and analytics becomes core competency

Unitil: Goals and Objectives Reliable Environmentally Friendly Efficient Smart Grid Secure Safe Economic 18

Unitil: Goals and Objectives Reliable Environmentally Friendly Efficient Smart Grid Secure Safe Economic 18 * U. S. National Energy Technology Laboratory

Unitil: Distribution Planning Approach Option A Option B Option C Cost Benefit Analysis 19

Unitil: Distribution Planning Approach Option A Option B Option C Cost Benefit Analysis 19

NU: Project Selection Methodology • The process evaluates the customer service impact and considers

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

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Grid-Facing Subcommittee Mtg. #2 Draft Agenda (2/26/13) • Potential Grid Modernization Framework & Outcomes

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