GLOBAL SMART GRID FEDERATION

Eric LightnerJune 3, 2014

OE’s Activities and Programs

CATALYST: OE encourages new ideas and business models through competition in prizes and challenges,open source software and data downloads, and voluntary participation in standards development activities.

“Apps for Energy” Challenge

Green Button Initiative Smart Grid Interoperability Panel/ NIST

GridWise Architecture Council

Open Source Software & Toolkits

CONVENER: OE brings together technical and policy expertise, along with a national, system wideperspective, to facilitate a coordinated strategy to meet emerging energy challenges, and to support asecure and resilient energy system.

North American SynchroPhasor Initiative (NASPI)

Electricity Advisory Committee

State and Regional Technical Assistance

Emergency Response (ESF 12) Technical Workshops / Case Studies

Federal Smart Grid Task Force

State and Local Energy Assurance

RESEARCH SUPPORT: OE invests in cross cutting research at national laboratories, universities, and privateindustry (including small business), and sponsors the transition of results to a broad set of vendors andutilities, moving innovations into useful applications.

Operations & Planning Tools

Energy Storage

Microgrids

Advanced Modeling

CyberSecurity Smart Grid Demonstrations

Distribution Optimization Outage Management Systems

Smart Grid Investment Grants

Future of the Grid Initiative

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(Dollars in Thousands)

Program/Activity FY 2013Current

FY 2014Enacted

FY 2015Request

FY 2015 vs.FY 2014

Clean Energy Transmission and Reliability 23,394 32,383 36,000 +3,617 +11%

Transmission Reliability 13,648 18,190 18,000 190 1%

Advanced Modeling Grid Research 9,746 10,195 11,000 +805 +8%

Energy Systems Predictive Capability 3,998 7,000 +3,002 +75%

Smart Grid 19,968 14,592 24,400 +9,808 +67%

Cybersecurity for Energy Delivery Systems 29,136 43,476 42,000 1,476 3%

Energy Storage 18,355 15,192 19,000 +3,808 +25%

National Electricity Deliverya 6,626 5,997 7,000 +1,003 +17%

Infrastructure Security and EnergyRestoration 6,149 7,996 22,600 +14,604 +183%

Infrastructure Security and Energy Restoration 6,149 5,997 8,000 +2,003 +33%

Operational Energy and Resilience 1,999 14,600 +12,601 +630%

Program Direction 25,569 27,606 29,000 +1,394 +5%

TOTAL, Electricity Delivery andEnergy Reliability 129,197 147,242 180,000 +32,758 +22%

a Formerly called Permitting, Siting, and Analysisb Funding is shown after SBIR/STTR transfers: $2,858 in FY 2013c Funding is shown after foreign travel savings: $64,400 in FY 2014

FY 2013 Currentb FY 2014 Enactedc FY 2015 Request

$129M $147M $180M

OE Funding Detail

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Recovery Act GridModernization Programs

Recovery Act Grid Modernization ProgramsSmart Grid Investment Grants (SGIG)*

$3.4 billionSmart Grid Regional Demonstrations(SGDP)*

$620 millionWorkforce Training

$100 millionInterconnection wide Transmission Planningand Resource Analysis

$80 millionInteroperability Standards (with NIST)

$12 millionOther

Technical Assistance to States on ElectricityPolicy ($44 million)Local Energy Assurance Planning ($10million)

Smart Grid Demos

Workforce Training

Resource Assessment &Transmission PlanningSmart Grid

InteroperabilityStandards

Other

*Originally authorized by the Energy Infrastructure Security Act 2007, EISA1306 and EISA 1304

One time Appropriation$4.5B of Recovery Act Funds

Investment Grants

Smart Grid Demos

Workforce Training

Resource Assessment &Transmission PlanningSmart Grid

InteroperabilityStandards Other

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DOE ARRA Goals &Objectives and Beyond

1. Deploy smart grid technologies and systems as prescribed under EISA and ARRA.

2. Evaluate the performance of these technologies and systems to determineeffectiveness and communicate the results and costs/benefits to catalyze greateradoption.

3. Actively engage key stakeholders to better understand and address deploymentchallenges (technical, organizational, and regulatory) to foster peer to peer learning.

4. Advance the state of the art in cybersecurity to ensure smart grid systems areproperly protected.

5. Advance smart grid interoperability and standards to improve efficiency and enablegreater adoption.

6. Launch new efforts in R&D based on lesson learned and identified remainingchallenges

Leverage deployment of Recovery Act smart grid investments tocatalyze and accelerate grid modernization across the U.S.

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Significant Deployment of Smart Grid Assetsleading to:• Additional 10% of the population being served

by smart meters• Additional 5% of distribution circuits being

upgraded with advanced automationtechnology

• Nearly 100% of the bulk transmission systembeing monitored by networked synchrophasortechnology

Grid Performance Improvements:• Reduction in peak demand• Operations and maintenance (O&M) cost

reductions• Reliability improvements in transmission and

distribution (T&D) systems• System efficiency improvements (both T&D)• Possible greenhouse gas reductions

Improving current infrastructure andperformance of the grid

Improving current infrastructure andperformance of the grid

Significant Deployment of Smart Grid Assetsleading to:• Additional 10% of the population being served

by smart meters• Additional 5% of distribution circuits being

upgraded with advanced automationtechnology

• Nearly 100% of the bulk transmission systembeing monitored by networked synchrophasortechnology

Grid Performance Improvements:• Reduction in peak demand• Operations and maintenance (O&M) cost

reductions• Reliability improvements in transmission and

distribution (T&D) systems• System efficiency improvements (both T&D)• Possible greenhouse gas reductions

Improving current infrastructure andperformance of the grid

Generation of data that will:• Lead to an enhanced understanding of consumer

behavior with respect to dynamic prices andenabling AMI technologies

• Demonstrate the technical and cost performanceof smart grid and energy storage technologies

• Establish a common analytical framework withinput from key stakeholders (industry, regulatorsand other decision makers, and consumers) tohelp them measure impact and benefits ofinvestments into Smart Grid across three majorcategories

• Economic• Consumer• Environmental

Establishing the business case tomodernize grid

Establishing the business case tomodernize grid

Generation of data that will:• Lead to an enhanced understanding of consumer

behavior with respect to dynamic prices andenabling AMI technologies

• Demonstrate the technical and cost performanceof smart grid and energy storage technologies

• Establish a common analytical framework withinput from key stakeholders (industry, regulatorsand other decision makers, and consumers) tohelp them measure impact and benefits ofinvestments into Smart Grid across three majorcategories

• Economic• Consumer• Environmental

Establishing the business case tomodernize grid

ARRA Investment into Smart Grid: Projected Impacts

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Planned Total Funds Planned By 2015 Expected Benefit

Transmission

$620 million> 800phasor measurement units

Real time voltage andfrequency fluctuationsvisible across the system

Distribution

$1.96 billion

>7,500automated switches~18,500automated capacitors

Outage management,improved reliability, andVAR control

AMI

$4.05 billion

>15.5 millionsmart meters

Operational savings: fewertruck rolls, automatedreadings, reduced outagetime

Customer Systems

$1.28 billion~365,000 direct controldevices ~240,000 PCTs~8,000 in home displays

Increased customercontrol; reduced peakdemand

SGIG – 99 Projects Funded at $7.9B(includes public and private investments)

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JS8

Slide 7

JS8 This slide and all of the numbers on it are the original 2009 planned funding amounts and asset counts. Some of these numbers have changed signicantly as of the 12/31/2014 data in terms of estimates at completion and deployed assets to date. Please see slide notes below for exact numbers, also on slide 20 in this deck. Recommend keeping but presenters want to point out that these are planned, not actual numbers.Jessica Schiavone, 5/23/2014

SGIG Program Schedule

90 of 99projects are

70% completeor more as of12 31 2013

SGIG Progress Overview as of 12-31-2013

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Total Combined SGIG Spending Nearly 88% Complete as of 12-31-2013

Device Deployment Status

99 Projects; 228 Utilities and otherOrganizations

Planned versus Actual SGIGExpenditures

Device Planned Progress(12/30/13)

Smartmeters 15.5 M 15.3 M (99%)

Automatedfeeder

switches7,500 8,649 (100+%)

Automatedcapacitors 18,500 12,575 (68%)

NetworkedPMUs 800 1,001 (100+%)

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57 SGIG Electric Distribution Reliability Projects

Automated SwitchesNumber of Projects 46Number of AutomatedSwitches Expected atCompletion

at least7,500

Number of AutomatedSwitches Installed (as ofDecember 2013)

8,649

Investment to Date$430

million

Planned versus ActualAutomated FeederSwitch Installations

ReliabilityIndices

DescriptionRange ofPercentChanges

SAIFISystem Average InterruptionFrequency Index (outages)

11% to 49%

MAIFIMomentary Average InterruptionFrequency Index (interruptions)

13% to 35%

SAIDISystem Average InterruptionDuration Index (minutes)

+4% to 56%

CAIDICustomer Average InterruptionDuration Index (minutes)

+29% to 15%

Observed Changes in ReliabilityIndices from Automated Feeder

Switching

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While initial construction covers about13% of CNP’s service area serving 280k customers,automation improvements benefit consumers in the entire system.

CNP’s Intelligent Grid

• 2010 to 2014 (Initial Deployment Area)– Implement Advanced Distribution Management System

– Installed 600 automated switching devices on 200 circuits(13 percent of grid)

– Install distribution line monitors with RTUs

– Leverage our AMS investment in communications andoutage data

– Integration of new DSCADA system with legacy remotecontrol switches

Distribution Control Center

Intelligent Grid Switching Device

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• Initial benefitsMore precise identification of outage locations

Faster restoration of electric serviceFaster performance of circuit switching to isolate fault

• Long term benefitsImproved reliability and faster restoration, especially in major stormsEnhanced, improved customer communications

Customer Benefits: Intelligent Grid

All automation Mar. 2014 2013 2012

Outage Events 53 305 320

Customer OutageMinutes Avoided byAutomation

7.1million

32.8million

27.1million

Average ReliabilityImprovement

44% 26% 22%

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Operating Resiliently to Attacks andNatural Disasters

• Deployed ~1,200 automatedfeeder switches

• Expects 40% reduction incustomer outage minutes;worth at least $35 M/year

• July 2012 Storm response:– Avoided costs to customers– Eliminated 500 truck rolls– Restoration complete 1 ½ days

earlier– $1.4 M cost reduction to utility

Example - Distribution: EPB of ChattanoogaImproving Operational Resiliency in Tennessee

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26 SGIG Volt/VAR Projects

Automated CapacitorsNumber of Projects 43

Number of Automated CapacitorsExpected at Completion

at least18,500

Number of Automated CapacitorsInstalled (as of December 2013)

12,575

Investment to Date$120

million

Planned versus ActualAutomated Capacitor

Installations as of 12 31 2013• For the 31 feeders that

reported hourly load data,one half observed line lossreductions from 0% 5%, and5 feeders experienced lossreductions greater than 5%.

• Two projects reportedconservation voltage reductionresults from 1% – 2.5%

Observed Changes in Line LossReductions and CVR

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Impact: ConservationVoltage Reduction (CVR)

Objective: Reduce energy consumption and peak load via operating at the lowend of the ANSI C84.1 Range A Band (114V – 126V)

LineSensors

VoltageRegulators

Load TapChanger

DMS

Capacitors Near real time feedback loopenables optimized operation ofthese components. However,deployment strategies differ withrespect to objectives and levels ofsophistication.

Results Averagedacross 11 Circuits

Initial Results Potential Customer Savings (estimated fora 7 MW peak circuit with 53% load factor)

Customer EnergyReduction

2.9% 943 MWh/year $75,440(at $.08/kWh)

Peak DemandReduction

3% 210 kW Defer constructionof peaking plants

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65 SGIG AMI Projects

Meter O&M SavingsMetrics

Range ofPercentage

ImprovementsChange in meter operationscost

13% to 77%

Change in vehicle miles driven,fuel consumption, and CO2

emissions12% to 59%

Smart MetersNumber of Projects 65Number of Smart MetersExpected at Completion

15.5 million

Number of Smart MetersInstalled (as of Dec 2013)

15.3 million

Investment to Date$2,730million

Planned versus Actual Smart MeterInstallations as of 12 31 2013

DOE AMI ExpenditureBreakdown*

Observed AMI OperationalEfficiency Improvements

*Additional DOE investment includes $350million in customer system devices, $50

million in web portals, and $190 million indata management systems, as of 12/31/2013.

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Key Research Objectives of SGIG-Funded Consumer Behavior Studies

• Quantify the types of customer response:– Reduce peak demand– Shift consumption to other times– Reduce overall consumption

• Capture the marginal effects on customerresponse associated with (in combinationand separately):– Pricing (type and enrollment)– Enabling control technology– Information (feedback) technology– Customer education

• Understand key customer characteristicsthat help to explain differential responseand influence customer acceptance &retention

• Understand differences in acceptance,retention and response when rates offeredunder opt in (voluntary) vs. opt out(default) conditions

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Impact: Peak Demand Reduction from AMI, Pricing, and Customer Systems

Selected examples from SGIG projects reporting initial results

Project Elements OG&E770,000 customers

MMLD11,000 customers

SVE18,000 customers

Customers Tested 6,000 residential 500 residential 600 mostly residential

Time Based Rate (s) TOU and VPP, w/CPP CPP CPP

Customer Systems IHDs, PCTs, and WebPortals Web Portals Web Portals

Peak DemandReduction

Up to 30%1.3 kW/customer

(1.8kW/customer w/CPP)

37%0.74 kW/customer

Up to 25%0.85 kW/customer

OutcomeDeferral of 170 MW ofpeak capacity by 2016with 20% participation

Lowers total purchase ofpeak electricity

Lowers total purchase ofpeak electricity

CustomerAcceptance

Positive experience, manyreduced electricity bills

Positive experience, butdid not use the web

portals often

Interested in continuedparticipation, many

reduced electricity bills

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Publishing reports on the impact of SGIG investments

1. Synchrophasor Technologies and Their Deployment in the Recovery Act Smart Grid Programs (August 2013)

2. Reliability Improvements from the Application of Distribution Automation Technologies – Initial Results (December

2012)

3. Application of Automated Controls for Voltage and Reactive Power Management – Initial Results (December 2012)

4. Operations and Maintenance Savings from Advanced Metering Infrastructure – Initial Results (December 2012)

5. Demand Reductions from the Application of Advanced Metering Infrastructure (AMI), Pricing Programs, and

Customer Based Systems – Initial Results (December 2012)

6. Analysis of Customer Enrollment Patterns in Time Based Rate Programs – Initial Results from the SGIG Consumer

Behavior Studies (July 2013)

7. Economic Impact of Smart Grid Investments (Apr. 2013)

Recent SGIG Analysis Reports

Reports are available for download from www.smartgrid.gov

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Focusing on the CustomerA Key Element for Success

• Green Button– Provides electricity customers a method of securely downloading easy to understand energy usage

information from their utility or electricity supplier

• Apps for Energy Challanges– Encourage the development of applications that help customers make the most of their Green

Button Data

• Consumer Behavior Studies in SGIG Projects– Provide an opportunity to advance the electricity industry’s understanding of consumer behavior

through the application of statistically rigorous experimental methods.

• Regional Peer to Peer Workshops– Convene stakeholders to share best practices and lessons learned

• Smart Grid Customer Engagement Guide– Develop a common framework by which utilities, regulators, and decision makers can design and

evaluate successful customer and stakeholder outreach programs

• Voluntary Code of Conduct (VCC) for Smart Grid Data Privacy– Establish a common set of practices around data privacy that will foster consumer trust and provide

a resource for decision makers evaluating privacy practices and policies

• Power Over Energy Campaign– Launch a multimedia campaign to help inform consumers about how electricity works, their

electricity use, and steps they can take to manage and conserve energy.

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A multistakeholder process to develop a Voluntary Code of Conduct (VCC) for utilitiesand third parties providing consumer energy use services. The code will establishcommon practices that protect the access, use, and sharing of customers’ electricityusage and related data.

Participants: Utilities, consumer advocates,vendors, third parties, state and federal governments

Key Elements• Convened first meeting in Washington, D.C. in

February 2013• All meetings are open to the public and are webcast to• ensure the widest participation possible.• Intended to be applicable to, and voluntarily adopted by, both utilities and third

parties• VCC will be adopted in its entirety, but limited exceptions allowed (due to laws,

regulatory guidance, governing documents) if clearly noted.• Work Groups have drafted principles.• Final draft document and implementation proposal are under development• Expected completion in fall 2014

Work Groups• Mission Statement• Notice/Awareness• Choice/Consent • Access/Participation• Integrity/Security• Management/Redress• Implementation• Integration

Voluntary Code of Conduct (VCC)For Smart Grid Data Privacy

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Voices of ExperienceSmart Grid Customer Engagement

Compilation of industry insights and lessons learned regarding smart grid customerengagement, which is a resource for utilities rolling out smart grid programs.

Key Elements• Nine month process that involved a wide variety of stakeholders,

including utilities, vendors, regulators, consumer advocates, andothers from across the electricity industry.

• Released in July 2013• Recognizes that one size does not fit all• Offers practical advice in the form of “Industry Insights” from

utilities that have implemented smart grid projects toeducate and engage their customers.

• It includes direct quotes from a full range of utilities(IOUs, municipalities, and cooperatives)

• Links to supporting resources and tools• Leans towards advanced metering infrastructure; however,

the principles apply broadly to customer engagement effortsDownload at:www.smartgrid.gov/voices

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Voices of Experience IIAdvanced DMS

Facilitate industry discussions to capture recommendations and insights regardingadvanced distribution management system (ADMS) deployments so the knowledge andexperience gained through these projects can enhance future grid modernization efforts.

• Approach and Expected Outcomes• Project scope and outcome directed

by leadership team of industry experts in ADMS technology• Kick off meeting on May 1st hosted by CenterPoint Energy – 44 attendees• Participants: Individuals who work for utilities that have either implemented or are

working towards implementing ADMS• Work group members will participate in topic focused discussion groups• Development of a “Voices of Experience” report that captures the advice and insights from

current deployments in the utility’s own words

• Benefits• Leverage experience from leading utilities to help facilitate grid modernization across the

U.S.• Provide better understand current technology, it’s benefits, limitations, and future needs• Capture specifics on current deployments

Understanding Current Capabilities & Limitations

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An energy literacy campaign created by a coalition of energy andenvironmental groups, which the Department of Energy joined in April 2013.Launched to educate, motivate and empower consumers to make smart decisions abouthow they use electricity.

Approach• Facebook and ad campaign are the central

hub of the campaign• Website is important credibility channel• Engagement channels are Facebook,

Twitter, Pinterest & YouTube• Engagement Rate: 5.83% (Facebook Avg 0.35%)

Power Over Energy Initiative

• Reached 63 million consumersthrough all channels; 12,00 websitevisitors

• Over 154,000 Facebook Likes in 45countries

• 92% from US, Brazil & Malaysia• 5% from UK & Australia• 3% from 40 other countries• 50 50 split between

males/females• 75% between 18 44 years

• Click through rate of .67%(avg=0.045%)

• YouTube: Gained 215,000 videoviews

• 1090 Twitter followers & 800tweets, 1850 following

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The Future of the GridEvolving to Meet America’s Needs

Partnered with GridWise Alliance to hold a series of multi stakeholder regional workshops to determinethe changing operational, business and policy requirements needed in the electricity industry over thenext 20 years to sustain the Nation’s economic prosperity and facilitate the industry’s transformation.

Overview and Approach• Four one day regional workshops plus National Summit• Multistakeholder: Utilities (ISOs, Munis, Co ops, PUDs, PPA) , Regulators, State Energy Offices,

Consumer Advocates, Business Leaders, Technology providers, Academics and Researchers• Pre read materials outline major issues and encourage thoughtful conversations• Summary Reports developed for each workshop

www.smartgrid.gov/future_grid.• National Summit will take place June 26 in Washington, DC.Initial Findings• Grid complexity is increasing (internally sophisticated, outwardly simple interface)• Transmission and distribution will become further integrated requiring cross functional

visibility and communications from central generation down to end device• High bandwidth, low latency, cost effective communication system will overlay the grid• Seamless integration of wholesale and retail markets will take place• Coordination of regulated and unregulated players is needed

Understanding Industry Challenges

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