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YOUR POWER DELIVERY MEDIA SOURCE

T H E O F F I C I A L P U B L I C A T I O N O F

12 DistribuTECH Headsto Brasil Again

33 Volt/VAR Optimizationand the Dynamic Grid

35 The Future of DemandSide Management
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PowerGrid International: ISSN 1547-6723,

is published 12 times per year (January,

February, March, April, May, June, July, August,

September, October, November and December)

by PennWell Corp., 1421 S. Sheridan Rd., Tulsa

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2013 by PennWell Corp. (Registered in U.S.

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Authorization to photocopy items for internal

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2 | August2013www.power-grid.com

AUGUST 2013VOLUME 18.08

27Youre on the TargetList of Cyber ThugsWhether youre a Fortune 500 global

enterprise, government agency or small- tomid-size business, youre on the target listof todays cyber thugs. Even security-savvy

businesses with plenty of financial resourcesand experts to protect themselves have fallen

victim to this threat. Dmitriy Ayrapetov withDell SonicWALL describes 10 steps to combatcyber vulnerability.

18Powering up VSATIDirects Alexandre Augstrozewrites about satellitecommunications; oftenreferred to as VSAT. Heexplains how satellitecommunicationshas enabled utilities

around the globe toexpand their networkreach as they developthe smart grid.

20Australian Utility Drives Network Efficienciesthrough Customer EngagementWestern Power, like many network operators across the globe, is challengewith ensuring its infrastructure has the capacity to meet increasing residenpeak demand. Rebecca Hargrave with Western Power in Western Australiadescribes how the utility used its smart grid to implement an air conditiontrial that benefits customers and reduces peak demand, allowing it to defernetwork infrastructure investment.

25High Stakes:Power Companies and Cybersecurity

Jose Granado and Josh Axelrod with Ernst & Young LLP. describe how a

cyberattack targeting electric utilities might prove life-threatening. So far, nU.S. electric utility has suffered a significant cyberattack, but a growing nuof utilities are taking steps to mitigate attacks. Are they doing enough?

29Dynamic Pricing Meter Configuration Trade-oThe main choice a utility faces when selecting meter hardware is wheto purchase an index meter or load profile meter, which is capable ofmeasuring direct consumption, but is more expensive. Michael Priceand Michael Cleveland of Deloitte Consulting LLP reveal results fromDeloittes analysis of three technical configuration scenarios that commeter costs and capabilities.

33Volt/VAR Optimization and the Dynamic Elec

Distribution GridJason Lombardo with S&C Electric Company writes that todays electricdistribution grid is becoming more dynamic as distributed energy resourceadded to it. Distribution planning and engineering teams should consider as they plan to deploy volt/VAR optimization systems.

35Reliability for Hire: Go Beyond Businessas Usual or Risk ObsolescenceFaced with an aging infrastructure, utilities are under pressure to optimizeasset replacement costs, improve operating efficiencies and meet regulatoryrequirements for adopting smart grid technologies. Alyssa Farrell of SASexplains why managing assets in the usual reactive fashion will not allowutilities to meet growing business demands.

38Products

40From the Pages of Electricity History

From the Editor 4

Notes 6

DistribuTECH Brasil Preview 12North Americas No. 1 electricity transmission

and distribution show, DistribuTECH Conference& Exhibition expands into Brasil for the secondconsecutive year, co-locating with HydroVision

Brasil and POWER-Gen Brasil. DistribuTECH Brasilwill feature more than 30 exhibiting companies and

40 plus expert speakers.

KPHOTO / AETB
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EDITOR IN CHIEFTeresa Hansen

918.831.9504 [email protected]

SENIOR EDITORKristen Wright


ASSOCIATE EDITORJennifer Van Burkleo


ONLINE/ASSOCIATE EDITORJeff Postelwait


GRAPHIC DESIGNERDeanna Taylor


BUSINESS ADMINISTRATORAngie ODea


CIRCULATION MANAGERJune Griffin


SUBSCRIBER SERVICEP.O. Box 3264, Northbrook, IL 63264

phone 847.559.7501fax 847.291.4816 [email protected]

SENIOR VICE PRESIDENT, NORTH AMERICANPOWER GENERATION GROUP

Richard Baker


PENNWELL CORP. IN EUROPEPennWell International Limited

The Water Tower, Gunpowder MillWaltham Abbey, Essex EN9 1BN, United Kingdom

phone +44.1992.656600fax +44.1992.656700

[email protected]

CHAIRMANFrank Lauinger

PRESIDENT/CEORobert F. Biolchini

SENIOR VICE PRESIDENT, FINANCE

& ADMINISTRATION (CFO)Mark C. Wilmoth

1421 S. Sheridan Road, Tulsa, OK 74112PO Box 1260, Tulsa OK 74101

Phone 918.835.3161 Fax [email protected]://pennwell.com

POWERGRID International is theofcial publication o


EDITOR IN CHIEF

TERESA HANSEN

FROM THE EDITOR

Cyber Criminals areTargeting you and Your Utility

I visited a relative in another state recently and was surprised to find that

my debit card didnt work at Target. I knew I had money in my account to

cover the transaction, but because it was Sunday, I couldnt call my bank. To

expedite my checkout, I gave the cashier my credit card. It was declined, too.

On Monday I called my bank and credit card company to find out

what was going on. I was told by both that the geographic area in which I

attempted to use my cards was flagged as a high-fraud area. Because I dont

normally shop in that area, holds were put on my cards. I realize they did

this to protect me, and Im glad, but I was inconvenienced, embarrassed and

a bit annoyed. To have someone hack into my checking account and clean

me out, or go on a spending spree and max out my credit card, or both,

would have been much worse, of course.

Cyber criminals are part of life. While they can create problems for indi-

viduals, their threat to utilities is much worse. This issue contains two articles

on cybersecurity. They address cyberattacks that occur routinely at electric

utilities, as well as the big one that could inflict major damage on all of us.

Utilities have ramped up and added more resources to prevent and

intercept such attacks, but they need help. Much of that help could come

from the government. (Yes, the government is here to helpreally.) While

clearer laws and regulations and, of course, money, could help, one of the

biggest benefits could come from information sharing. The government has

information about cyberthreats that if shared with electric utilities and other

industries could help them better protect their infrastructures. Thats why

EEI President Tom Kuhn issued a statement in a press release on July 30

praising the Senate Commerce Committee for its bipartisan passage of the

Cybersecurity Act of 2013. The bill covers several issues, but its main focus is

on public-private collaborations aimed at developing best practices and pro-

cesses for protecting critical infrastructures from cyber threats and attacks.

Kuhn said the Act is a bipartisan bill that acknowledges the important

roles of industry and government to secure cyber assets, and respects the

existing mandatory and enforceable cybersecurity standards that currently

govern the electric and nuclear sectors.

He also said it is another step in fostering improved government-industry

coordination to address the evolving cyber threats to critical infrastructure.

Cyber criminals are smart and sophisticated and arent going away, which

is why we cover the topic. In addition to articles, like those in this issue,

we routinely cover cybersecurity on our website, and we plan to offer a

cybersecurity webcast on Dec. 10. Weve also created a new cybersecurity

conference track for DistribuTECH in January. We are doing our best to keep

you in the know.
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NOTES



GRIDWISE ALLIANCE REPORT:LESSONS FROM SUPERSTORM SANDY, OTHER EXTREME EVENTS

neighborhood and get the lights back

on faster and at a lower cost.

The nations critical infrastructure is

becoming more interconnected, and

utilities must understand and plan for

this interdependence. Many people

depend on smart phones to manage

their lives more effectively. Using this

same cellular network for grid equip-

ment to automatically report its status

and for restoration crews working to

repair the grid to communicate their

efforts requires cellular networks to be

running during these events.

During Sandy, utilities received tweets

with pictures of downed power lines,

yet there was no way to tie these

pictures to their equipment and loca-

tions. The computer systems run by

utilities can be adapted to use these

social media feeds to update the grids

system conditions automatically and

reduce the time delay in responding.

Where there is a high penetration

of distributed energy resources, the

availability of these resources is limit-

ed during outages. New policies, rules

and operating procedures are needed

to safely leverage customer-owned

power sources during major outages

such as Sandy.

The GridWise Alliance, the leading

coalition advocating for the moderniza-

tion of the nations electric system, released

a report that outlines recommendations

to help alleviate the effects of large-scale

events on the U.S. electric system.

The recommendations are the direct

result of a workshop convened after

Superstorm Sandy during which represen-

tatives from 20 electric utilities from across

the U.S., along with suppliers and other

experts, shared their experiences and les-

sons learned in dealing with these events.

Disruptions to our power system from

large-scale events pose more than an incon-

venience in todays digital economy, said

Becky Harrison, GridWise Alliance CEO.

The United States depends

on a reliable, resilient, safe

and secure electric power

system, and when this ser-

vice is disrupted the impacts

are felt by all. Modernization

of the grid would help to

reduce these effects. The

GridWise Alliance report

identifies actions that can be

taken by utilities, policymak-

ers, emergency responders

and technology suppliers to improve the

resiliency of our electric power grid during

future extreme events.

Examples of key insights include:

New technologies deployed on the

electric grid pro-

vide utilities with

advanced remote

control and moni-

toring capabilities.

For example, smart

meters and smart

grid censors pro-

vide utilities with

visibility to actu-

ally know when

the lights are off

without waiting for

customers to pick

up the phone and

report outages.

Advances in

weather forecast-

ing combined with

better modeling of

damage caused by

these events could

enhance the utili-

ties ability to plan

their response

neighborhood by

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EYE ON THE WORLD

Itron Inc. has installed a combination of 25,000 smart water,

heat and gas meters and communication modules as well

as its fixed network for Sino-Singapore Tianjin Eco-

City in Tianjin, China, the company reported. The

comprehensive solution measures, collects and

analyzes data from water, heat and gas meters.

Sino-Singapore Tianjin Eco-City is a flagship

government-to-government project between

Singapore and China. Established in 2007, it is

built on the vision of being a thriving city that is

socially harmonious, environmentally friendly and resource-

efficient. When completed in 2020, Sino-Singapore Tianjin

Memoori, a UK-based market research company, estimates

a $75 billion investment is needed to build a smart grid inBrazil. This represents about a 4 percent share of the total

world expenditure. Expenditure on Brazilian transmission

and distribution projects in 2012 was some $2.75 billion

with most being spent on transmission build out. Investment

in pure smart grid has fallen and will extend beyond 2030.

Brazilian consumers have been paying more for their power

Eco-City is estimated to have some 350,000 residents.

Itrons EverBlu wireless fixed-network system, which has

provided data collection services to Sino-Singapore

Tianjin Eco-City for more than two years, enables

Sino-Singapore Tianjin Eco-City to achieve its vision

of energy and water resource conservation by

providing actionable data such as high accuracy

readings and reading rates, automatic meter reading

and graphical data analysis to educate residents

about their energy and water usage. It also helps simplify

the billing process and provides detailed consumption information

that reduces billing disputes with end users.

than most countries, including China, Latin America the U.S.,

but in March prices fell between 18 to 32 percent, and this willwipe out profit at the cheapest-producing hydroelectric plants.

Drought has reduced the capacity from these plants, and reserve

power from fossil-fueled plants has had to provide the shortfall.

Combine this with the high level of electricity theft, and the

question has to be asked: Where will the money come from to

invest in Brazils ambitious smart grid program?

Itron Technology Forms Foundation for Smart City Movementin China With Sino-Singapore Eco-City Project in Tianjin

Brazils Smart Grid
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NOTES

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HUDSON TRANSMISSION PROJECT AHEAD OFSCHEDULE, PROVIDES NYC 660 MW OF ADDITIONALPOWER, ENHANCED RELIABILITY

well ahead of schedule and therefore in

time for the summer peak-load period,

we want to thank many different parties

that helped achieve this result, especially

Governor Andrew Cuomo and his staff,

as well as Senator Chuck Schumer and

numerous federal, state and city agencies

such as the New York State Departments

of Public Service, Transportation, and

Environmental Conservation, the New

Jersey Department of Environmental

Protection, the New York District Army

Corps of Engineers, the city of New York,

and the Borough of Ridgefield, New Jersey.

In addition, we particularly want to

acknowledge the extraordinary teamwork

and cooperation of our customer the

New York Power Authority, our principal

contractors Siemens and Prysmian, Con

Edison, the regional transmission organiza-

tions PJM and NYISO, New Jersey utilities

PSE&G and First Energy, our investors and

lenders, and the many talented workers

who helped design, build and install the

project.

Using high-voltage direct current

(HVDC) technology, the electricity drawn

from the PJM grid is converted from ac to

dc power and then back to ac power at

a new converter station in Ridgefield for

maximizing reliability and controllability

in delivering power to Manhattan.

PROJECT FACTS

Hudson Transmission Partners LLC,

the developer, owner and operator

of the Hudson project, is responsible

for its planning, permitting, financ-

ing and construction. HTP is man-

aged by PowerBridge LLC of Fairfield,

Conn. HTP partners also include

Anbaric LLC of Wakefield, Mass.,

and Triton LLC of Portland, Maine.

PowerBridge LLC announced that its

affiliate, Hudson Transmission Partners

LLC (HTP), completed testing of its under-

ground and underwater, 660-MW electric

transmission project between Ridgefield,

N.J., and Manhattan and is delivering

power to customers in New York City.

The Hudson transmission project route

is about 7.5 miles long with a cable bundle

buried under the Hudson River for about

3.5 miles and buried underground for

some 4 miles, starting in Ridgefield, N.J.

The line connects to the Con Edison sys-

tem at the West 49th Street substation in

the heart of Manhattan and can provide

some 5 percent of New York Citys peak

demand. Project construction began in

May 2011 at a cost of some $850 million

and was completed six weeks ahead of

schedule despite two hurricanes.

The Hudson project is the second major

underwater transmission project com-

pleted by PowerBridge. The first was the

660-MW Neptune undersea transmission

project completed in June 2007, which

extends 65 miles between New Jersey

and Long Island. Neptune has supplied

some 20 percent of Long Islands electric-

ity needs since going into service. The

Hudson and Neptune projects provide

access to power from the PJM energy grid.

Like Neptune, the Hudson project

shows how this type of technology can

bring reliable electric power to densely

populated areas in a cost-effective, non-

controversial and environmentally friendly

way, said Edward M. Stern, president and

CEO of PowerBridge. It is also a great

example of public and private interests

working successfully in partnership to

expand and modernize the nations electric

system.

In completing this complex project
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12/45

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for Apple and Android

The thermal images shown are for illustrative purposesonly, and may not have been taken by the cameras depicted.


The Hudson transmission project route is about 7.5 miles long with a cable bundle buried underthe Hudson River for about 3.5 miles and buried underground for approximately 4 miles, starting inRidgefield, N.J. The line connects to the Con Edison system at the West 49th Street substation in theheart of Manhattan and is capable of providing about 5 percent of New York Citys peak demand.Courtesy PRNewsFoto/PowerBridge LLC.

market in the U.S., totaling nearly

165,000 MW and serving about 60

million people in 13 states and the

District of Columbia. PJM accesses its

power from a wide range of sources

including hydroelectric, biomass, oil,

coal, wind, nuclear and natural gas.

Principal investors in the project are

Energy Investors Funds through its

United States Power Fund II, L.P.,

and Starwood Energy Investors LLC,

an affiliate of Starwood Energy Group

Global LLC.

PowerBridge developed, financed,

constructed and manages and oper-

ates the Neptune transmission proj-

ect that brings power from PJM to

Long Island via an undersea cable.

PowerBridge also is developing addi-

tional undersea and underground

transmission projects, including the

proposed West Point Transmission

project that features a 1,000-MW,

80-mile cable underneath the Hudson

River between Athens and Buchanan,

N.Y., that would provide access to less

expensive and renewable energy from

upstate New York for customers in

the New York City area.

Siemens Energy Inc. provided the

design, engineering, construction

and installation of the back-to-back

HVDC converter station in Ridgefield.

Siemens also will provide operation

and maintenance services for the

project in conjunction with its opera-

tion of Neptune.

Prysmian Cables and Systems USA

LLC supplied and installed the

approximately 7.5 miles of 345-

kV underwater and underground

cable that connects PJM with New

York City.

The Hudson cable bundle extends

from the PSE&G Bergen substation in

Ridgefield to the nearby HVDC con-

verter station, and then travels some

3.5 miles underground to Edgewater,

N.J., where it enters the Hudson

River. The cables make landfall on

Manhattans West Side, then travel

from West 52nd Street along the West

Side Highway to the Con Edison West

49th Street substation.

The PJM energy grid is the larg-

est competitive wholesale electricity
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13/45

Deadline for nominations is Sept. 16, 2013.

Full rules and nomination form available at www.power-grid.com

Nominate your project today.

Dont miss your opportunity to participate in the 2014 Project o the Year Awards sponsored by

POWERGRID Internationalmagazine.

Awards will be given in the following categories:

Smart Grid Project o the Year

Customer Engagement Project o the Year

Demand Response/Energy Efciency Project o the Year

Renewable Grid Integration Project o the Year

Winners will be recognized in a 2014 issue o POWERGRID Internationalmagazine. A representative

rom the winning utility must be present to accept the award during the POWERGRID International

and Electric Light & Powerawards banquet on the evening o Jan. 27 at the Henry B. GonzalezConvention Center in San Antonio, Texas.

DistribuTECH 2014 is Jan. 28-30 in San Antonio, Texas.

CALL FOR ENTRIES

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14/45August2013 | 11

www.power-grid.com

ALFANAR CONSTRUCTION BEGINS MIDDLE EAST T&D PROJECTS

Alfanar Construction signed several stra-

tegic projects worth about $400 million in

the first half of 2013.

A substation project was signed with the

Saline Water Conversion Corp. (SWCC)

aimed at integrating 3,100 MW of capacity

from Yanbu III generating station into the

grid. Alfanar shall be fully responsible for

the turnkey construction of Yanbus three

substations. This project will supply power

to the SWCC pumping stations. It will be

executed on a fast track basis becausee the

substations are scheduled to be completed

and put into service within 22 Months.

A contract signing ceremony was held

under the patronage of His Royal Highness

Prince Abdul Aziz Bin Majid Bin Abdul

Aziz Al-Saud, Governor of Al-Madinah

Al-Munawarah region.

The Saudi Electricity Co. (SEC) awarded

Alfanar two major projects for the con-

struction of 380 kV underground cables

in Jeddah and Makkah. Ali Al Barrak,

CEO of the Saudi Electricity Co. signed

the contract.

These projects involve the construction

of 380 kV underground cables to estab-

lish two circuit links between the Jeddah

Central substation and the Jeddah North/

Al-Faisaliyah substations. They will be

completed in 22 months.

These two projects are part of a chal-

lenging plan by the Saudi Electricity Co. to

upgrade and strengthen the capacity of the

electricity grid across the Western Region

in order to meet the growing demand

for electricity in the areas of Jeddah and

Makkah.

His Royal Highness Prince Abdul Aziz Bin MajidBin Abdul Aziz Al-Saud, Governor of Al-MadinahAl-Munawarah region attended the contract signingby His Excellency Dr. Abdullah Bin Abdul RahmanAl-Husayen, Minister of Water & Electricity and Eng.Sabah Al Mutlaq vice chaiman, Alfanar Group inthe presence of His Excellency Dr. Abdul RahmanBin Mohammad Al-Ibrahim, Governor, Saline WaterConversion Corp.

Other projects include the supply of

power to the upcoming double-track high

speed Haramain railway which included

construction of six new 380 kV substa-

tions and the reinforcement of Hail 2

Power Plant- Extension III.

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15/4512 | August2013www.power-grid.com

southeast region of the country. It is cur-

rently comprised of 15 hydro plants, two

thermal plants, 52 substations and roughly

20,000 kilometers of high voltage trans-

mission lines. More than 40 percent of the

energy consumed in Brasil passes through

the Furnas Electric System.

In addition, the three events have

been endorsed by Governo Do Estado

So Paulo Secretaria De Energia (the

state of So Paulos secretary of ener-

gy) as well as the U.S. Department

of Commerce (DOC). The DOCs

International Trade Administration will

be at the event to answer U.S. compa-

nies questions about conducting busi-

ness in Brasil. According to the United

Nations Conference on Trade and

Development, Brasil is the fifth most

attractive country for foreign direct

investment from 2012 through 2014.

Brasil is also consistently the largest for-

eign direct investment recipient in Latin

America, receiving close to half of all

South Americas incoming investments.

DistribuTECH Brasil 2013 will officially

kick off with a joint opening keynote

session on Tuesday morning, Sept.

24. Mr. Flavio Decat, President of

Eletrobras Furnas, and Mr. Britaldo

Soares, CEO of AES Brasil, are among

the line-up of featured speakers.

Following the keynote, the smaller,

topic-focused breakout sessions will

begin. These sessions, which offer a

North Americas No. 1 electricity

transmission and distribution

show, DistribuTECH Conference &

Exhibition, expanded into Brasil in 2012

with the launch of DistribuTECH Brasil.

Running Sept. 24-26, 2013, the second

annual event will feature more than 40

speakers, 30 plus exhibiting companies

and networking opportunities.

As in 2012, DistribuTECH Brasil will

again co-locate with HydroVision Brasil,

now in its third consecutive year in

Brasil. POWER-Gen, which has been

successful in the U.S., Europe, Asia,

India and Russia for many years, will

join these two events as well. By co-

locating these three events under one

roof, PennWell has created a dynamic,

exciting event for electric power pro-

fessionals interested in the generation,

transmission and distribution markets

in Brasil and the Latin American region.

DistribuTECH Brasil will locate at the

Transamerica Expo Center. It will cover

electricity transmission and distribution

from end-to-end. Attendees may attend

educational sessions, speak with exhibiting

companies showcasing the latest equip-

ment and services available in the util-

ity industry and network with colleagues.

Brasils Furnas is hosting DistribuTECH

Brasil, HydroVision Brasil and POWER-

GEN Brasil. Furnas is a major subsid-

iary of Eletrobras in charge of generation

and transmission of electric power in the

variety of learning opportunities, are

broken into four industry-related

tracks: advanced metering, power

delivery business, system automation

and system operation. More than 40

speakers will participate in 13 sessions

that fall into these industry tracks. In

addition, a DistribuTECH Brasil mega-

session will close the conference late on

Thursday morning, Sept. 26.

DistribuTECH Brasil is not all learn-

ing and no play. Plenty of social oppor-

tunities will allow attendees to visit and

network with colleagues, acquaintances

and new friends.

With such a wide range of confer-

ence sessions, exposition and network-

ing opportunities, DistribuTECH Brasil

promises to be the highlight of the

industry for 2013.

Exhibit and sponsor information in

this article were accurate at press time

but are subject to change.

SUPPORTING ASSOCIATIONDistribuTECH Brasils supportin

associations include: ABRADEE Associao Brasileira de

Gerao de Energia Limpa Associao Brasileira de

Geradoras Termeltricas

ABRATE Sociedade Mineira deEngenheiors

International TechnicalCommunity


16/45August2013 | 13

www.power-grid.com

UTILITY PARTICIPATION

EXHIBITING COMPANIES

AESEletropaulo AESSulDistribuidoraGauchadeEnergia GXEnergia BCHydro CELESCDistribuioS.A. CELGDistribuicao CEMIG CIAENERGETICADEMINASGERAIS-CEMIG ComisionFederaldeElectricidad ConEdNY

The conference program will include utility speakers and authors from Brasil, the U.S., Canada, Mexico,

Venezuela and Guatemala, representing the following companies:

CORPOELEC CPFLEnergia CTEEP DME EDPBandeirante ElektroEletricidadeeServiosS.A. EletrobrasFurnas InstitutoNacionaldeElectrificacion PLC SouthernCaliforniaEdison

BAUMIERAUTOMATIONLTDA CISCO CLEVESTSOLUTIONSINC. CLICKSOFTWARE CRCPRESS/TAYLOR&FRANCISGROUPLLC CONCERTTECHNOLOGIES CST-COMPUTERSIMULATION

TECHNOLOGYAG DNVKEMABRASIL

ECILENERGIA ELETRAENERGYSOLUTIONS ENTEGRAGMBH ESRI ELO ETAP GEENERGYBRASIL GESUPPLYDOBRASILLTDA HEXINGELECTRICALCO.LTDA HIPOTRONICS-HAEFELY-TETTEX HUBBELLPOWERSYSTEMS

INFORMASOFTWARE INMARSATINC. ITRON J&DELECTRONICS KLEINTOOLS KVTEKPOWERSYSTEMPVT.LTD. MINCOMINTERNATIONAL

SERVICOSDEINFORMATICALTDA NANSEN

ORACLE REVISTAOSECTORELECTRICO RUGGEDCOM,ASIEMENSBUSINESS SAPBRASIL S&CELECTRICDOBRASIL SCHNEIDERELECTRIC SDCENGENHARIADESISTEMASLTDA SILVERSPRINGNETWORKS TOATECHNOLOGIES TRILLIANT VENTYX,ANABBCOMPANY

SPONSORSDistribuTECH Brasils sponsors include:

ClickSoftware ConcertTechnologies DNVKEMABrasil

EletraEnergySolutions ELO GeneralElectric Itron Oracle TOATechnologies Ventyx

DistribuTECH Brasil will host a networking reception in the exhibit hall from 5:30 to 7 p.m. Wednesday, Sept.

25. Attendees and guests are invited for hors doeuvres and refreshing drinks while networking with industrycolleagues and visiting exhibits of more than 30 companies.


17/45

S&C ELECTRIC COMPANY

IntelliRupterPulseCloser, available in voltage ratingsof 14.4 kV through 38 kV, features PulseClosingTechnologya unique means for verifying thatthe line is clear of faults before initiating a closingoperation. Pulseclosing is superior to conventionalreclosing. It greatly reduces stress on system

components, as well as voltage sags experienced bycustomers upstream of the fault.

Scada-MateSwitching System, in voltageratings of 14.4 kV through 34.5 kV, is ideal

for automating overhead distribution feeders.All necessary functionssensing, control,and communicationsare provided in one

economical, self-contained package.

Automation needs change and growwith increased load, capacity, and

demands for more reliable service.Scada-Mate CXSwitches meet these

changing needs, economically, involtage ratings of 14.4 kV through 25 kV.

6800 Series AutomaticSwitch Controls provide

remote reporting ofswitch status points,

current, voltage, watts,and VARs via a variety

of protocols.

IntelliNode Interface Module allowsIntelliTeam SG to work with a wide array ofnew and existing intelligent electronic devicesfrom other manufacturers.

S&Cs IntelliTeam isnt justautomatic service restorationS

ince its introduction in 1997, S&Cs IntelliTeam Automatic RestorationSystem has become the industrys standard. The latest version

IntelliTeam SGis a universal solution for improving grid reliability.It works with S&C IntelliRupter PulseClosers, Scada-Mate and Scada-

Mate CX Switches, Remote Supervisory Pad-Mounted Gear, andRemote Supervisory Vista Underground Distribution Switchgear. And,using S&Cs IntelliNode Interface Module, IntelliTeam SG works withprotection relays and recloser controls from other manufacturers too.

But we didnt stop there. Now weve developed IntelliTeam VV andIntelliTeam DEM, along with leading-edge communication products, tomeet other important needs of the intelligent grid.

S&Cs IntelliTeam VV Volt-Var Optimization Systemload-tap changers, voltage regulators, and capacitor controlsto optimize system voltage and power factor based on real-

time conditions. Our IntelliTeam DEM Distributed EnergyS&C PureWave Community Energy Storage Units, toisolate consumers from distribution system operations andtransients for hours, and also integrate the communityswind and solar power sources. And S&Cs SpeedNetRadios and IntelliCom WAN Mesh Radios are ideal for awide range of Smart Grid applications.


18/452012S&

C

ElectricCompany

1044-A1202

IntelliComWAN Mesh Radios provide

reliable, high-capacity, self-healingwireless mesh network communicationfor a wide range of applications requiringhigh throughput and very low latency.

IntelliTeamVV Volt-Var Optimization Systemachieves optimal power factor and voltage levels.It regulates VARs and voltage simultaneously.

Remote Supervisory PMH and PME Pad-Mounted Gear featurepower-operated switches which respond to opening and closingsignals from a remote location. This gear, available in ratings of

control equipment group, for a completely integrated and self-powered automated switching and protection package.

SpeedNet Radio has been optimized for IntelliTeamSG, distribution automation, and SCADA applications.Its high speed and low latency provides the fastest-

Remote Supervisory VistaUnderground DistributionSwitchgear, in ratings of 15.5 kVthrough 38 kV, provides automatedswitching and fault protection, andcan also perform auto-sectionalizingwithout tripping the main breaker.Up to six load-interrupter switchesor fault interrupters can be motoroperated in a single unit.

PureWaveCommunity EnergyStorage System provides distributedelectric energy storage, for reliable,local backup power for consumers.The multiplicity of unitsintegratedand controlled by the IntelliTeamDEM Distributed Energy ManagementSystemoffers higher aggregatedavailability . . . keeping the gridfunctioning for more consumers.

The IntelliTeamDEM Distributed Energy Management Systemaggregates PureWaveCommunity Energy Storage Units into adispatchable energy source. It provides fully automated charging anddischarging of the energy storage units, either at scheduled times or tomeet target demand at feeder and substation transformer levels.

S&Cs solutions for improved grid reliability,communication include a wide range of supportingengineering and design, and construction andimplementation services. These services can beprovided individually or on a turnkey basis with theequipment. Contact S&C today to see how we candesign and implement a solution for your system.

Visit us at sandc.com/intelliteamproducts

or call us today at 773-338-1000.

Scan this QR

Code on your

smartphone

to learn more

about S&Cs

comprehensive

solutions.

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19/45

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20/45

See us at

DistribuTECH BrasilSeptember 24-26, 2013

at the

Transamerica Expo Center

So Paulo.

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Poweringup VSAT

BY ALEXANDRE AUGSTROZE GONALVES, IDIRECT

unreliable because of line-

of-site constraints.

By contrast, VSAT net-

works can provide immedi-

ate, ubiquitous coverage to all

substations and power generation sites.

This solves the challenge of running

costly fiber or building expensive towers

for microwave radio links.

VSAT networks can run broadband

applications such as video and voice

over IP reliably and efficiently while

maintaining supervisory control and

data acquisition (SCADA) connectivity at

these sites. VSAT also can support real-

time data exchange, as well as extend

high-speed networks or VPNs to enable

secure file transfer, video or similar

broadband services.

S

atellite communications, often

referred to as VSAT (very small

aperture terminal), has enabled utilities

around the globe to expand their

network reach rapidly as they develop

the smart grid. Worldwide, governments

are mandating that utilities secure their

operations, manage energy efficiently and

ensure business continuity.

In Brazil, utilities must meet new

government laws and mandates from

industry regulators such as ANEEL, the

Brazilian electricity regulatory agency.

Effective January 2013, the Brazilian

government passed law code MP 579,

which is aimed at lowering electricity

costs through more efficient operations.

For example, ANEEL mandated an

implementation of advanced metering

infrastructures (AMIs) in all residential

areas to improve energy monitoring.

To comply with similar regulations,

utilities in North America and Europe

have turned to VSAT technology. Internet

Protocol (IP)-based VSAT systems enable

utilities to extend the smart grid anywhere

it is required and expand connectivity

across multiple utility operations over

100 percent of their coverage area. They

also can comply with government-issued

smart grid initiatives, such as setting

up high-definition cameras and

creating virtual private networks

(VPNs) for security and offering a

backup communications solution for

business continuity.

Utilities that have made advancements

in the smart grid have discovered VSAT

technology is essential. Utilities in Brazil

can strengthen their operations by

following suit.

EXTENDING SECURE

CONNECTIVITY TO REMOTE

SUBSTATIONS

Utilities in Brazil use fiber for a portion

of their networks, yet a significant number

of remote utility substations, such as

those in northern Brazil, are unable

to be connected because of distance

and environmental challenges. Investing

more in fiber to reach these locations

would be costly. Microwave links are

Alexandre Gonalves is a systems engineer with iDirect based in Rio de Janeiro. He is iDirects

resident technical expert in the Latin America region, where he is responsible for designing satellite-

based IP networks, equipment demonstrations and lab-testing network solutions. Prior to joining iDirect,

Gonalves was a technical support director with Intercel Telecoms. He has worked in the IT engineering

and satellite communications industries more than 11 years. He has a bachelors degree in computer

science from DeVry University and is fluent in Portuguese, Spanish and English.


22/45August2013 | 19

www.power-grid.com

ever, allows utilities to cover their entire

service territories. VSAT can be more

cost-effective than other core network

technologies.

For lower capital costs, a utility could

fully outsource its satellite capacity,

allowing a service provider to configure

and manage the network at an opera-

tional amount thats competitive with

monthly cellular costs.

Security. Utilities might think satellite

is not secure, but VSAT platforms, which

are configured as a closed VPN, are

secure. Adding support

for concurrent two-way

Advanced Encryption

Standard 256-bit link

encryption makes

packet transmission

via satellite as secure as

other communication

technologies, including

terrestrial and wireless.

For example, virtual

local area networks

(VLANs) allow users in a broadcast

domain to be grouped together logi-

cally and not physically. Satellite sup-

ports VLAN tagging, which requires

permission to access the network. This

guards against outside attacks and makes

IP-satellite more secure than Wi-Fi.

INVESTING WISELY

THROUGH SATELLITE

Satellite communication is needed

to advance the smart grid. No longer

challenged by initial latency or reli-

ability challenges, satellite is a cost-

effective and secure solution that can

provide backup communications and

easily support core smart grid and dis-

tribution automation applications. That

should spark some interest for Brazilian

utilities.

UNDERSTANDING THE

VALUE OF SATELLITE

Satellite networks have increased in

reliability, affordability and speed. VSAT

can provide cost-effective, two-way, real-

time communications solutions. Several

common misinterpretations about satel-

lites reliability, latency, cost and security

still exist.

Reliability. A primary misconception

is that satellite does not have the reliabil-

ity to run core operations with the same

quality as terrestrial networks; however,

recent innovations have

allowed VSAT to pro-

vide highly reliable net-

work connectivity.

First, VSAT is a pri-

vate network, which

means it is reliable and

secure. Next, second-

generation Digital Video

Broadcasting Standard

(DVB-S2) in combina-

tion with adaptive cod-

ing and modulation (ACM) and uplink

power control (UPC) and adaptive time

division multiple access (TDMA) have

boosted performance on the outbound

and inbound channels.

Latency. There is a misperception

that satellite has too much latency to

support critical applications such as

SCADA. While terrestrial latency is mini-

mal, VSATs latency, approximately 600

to 700 milliseconds roundtrip, is suitable

for most utility application, including

SCADA, substation automation, distribu-

tion automation, smart meter backhaul,

voice and video.

Cost. IP satellite platforms tradition-

ally are seen as too costly. Extending

high-speed broadband and advanced

communications applications to the

most remote locations with VSAT, how-

SMART METER

BACKHAUL SOLUTION

To improve energy monitoring, utilities

are deploying smart meters and sensor

devices across the smart grid to monitor

operational priorities such as energy distri-

bution and fault detection along distribu-

tion lines. Utilities then must aggregate

this data to gain real-time visibility into all

areas of the distribution networks. VSAT

can backhaul data efficiently from AMI

concentrators and distribution automation

networks to operation centers regardless

of location.

ENSURING CONTINUITY

OF OPERATIONS

VSAT can be a mobile solution and a

backup solution when terrestrial commu-

nications networks fail. VSAT is indepen-

dent of terrestrial infrastructures. When

a primary network goes down, VSAT can

handle data, voice and video connectivity

in any location. VSAT remotes even can be

mounted on a vehicle or trailer to provide

temporary connectivity to remote substa-

tions and emergency response personnel.

For lower capitalcosts, a utilitycould fullyoutsource itssatellite capacity,allowing aservice providerto configure andmanage thenetwork.



Back row left to right: Andrew Blaver(Program Manager), Luke van Zeller (Project Officer),Mark Goninon (Data Officer)Front row left to right: Jai Thomas (ProjectOfficer), Venetia Davies (Project Support),Rebecca Hargrave(External Affairs Manager)

Australian Utility Drives Network Efficiencies

Through Customer Engagement

BY REBECCA HARGRAVE, WESTERN POWER

of 10 in 2012. The

continuing uptake of

refrigerated air conditioner

systems, in particular during the past

10 to 15 years, is recognized as a key

driver of increasing WA s electricity

peak demand.

To address this issue, Western Power

is investigating innovative ways to ben-

efit customers and defer network infra-

structure investment via its smart grid.

Western Power is focusing on the

development of product and service

offerings to save customers money

over the longer term by operating the

network more efficiently, said Mike

Davidson, Western Powers smart grid

development manager.

Western Australia (WA) is the

largest state in Australia, occu-

pying the entire western third of the

continent. WA has some 2.3 million

residents (around 10 percent of the

national total), and most live in the

capital, Perth.

The electricity network in WA, one of

the largest and most isolated networks

in the world, is owned and operated by

Western Power.

The Western Power Network covers

253,038 square kilometres and sup-

plies electricity to more than 1 mil-

lion customers. Unlike the series of

interconnected networks that cover all

other major urban areas in Australia,

Western Powers network is isolated

and self-contained. Network custom-

ers electricity needs must be delivered

by the system itself without any outside

support or backup.

Western Power, like many network

operators across the globe, is challenged

with ensuring its infrastructure has the

capacity to meet increasing residential

peak demand. Peak demand strains

Western Powers electricity network; the

top 15 percent of electricity supplied is

used only 1 percent of the time.

With average summer temperatures

of 31 C (88 F) and sustained maxi-

mums of above 40C (104F), residen-

tial air conditioner use in Perth has

increased from 45 percent of house-

holds in 1999 to more than nine out


24/45

conferrence & expos tion

Utility Products Conference & Exposition has everything utility workers need to do their jobs from tools to

cutting-edge technology to product and safety demonstrations. Save the date for Utility Products Conference

& Exposition Jan. 28-30 in San Antonio. For more information, visit http://utilityproductsexpo.com.http://utilityproductsexpo.com

owned & produced by: supporting publications: media sponsor:presented by:

Jan. 28 30, 2014Henry B. Gonzalez Convention Center . San Antonio, Texas

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signals sent by Western Power via smart

meters and home-area networks. The

signal would command each air con-

ditioners compressor to cycle on and

off while the fan continued running,

minimizing customer discomfort. The

compressor was cycled in combinations

such as 15 minutes on and off, 10 off 20

on, or 20 off 10 on. Customers were not

advised before the events.

Results show significant network ben-

efits. Electricity consumption for par-

ticipating households fell by an average

of 0.9 kW per participant during trial

events, which equates to 33 percent of

the average air conditioner load.

Results from the trial were mod-

eled to better understand the potential

impacts of implementing similar pro-

grams across Western Powers network.

The results indicate that reducing

the electrical load of air conditioners

during times of high demand has the

capacity to reduce system peak, as

well as the potential to have an even

Installing more than 11,000 smart

meters and associated communications

infrastructure as part of its Smart Grid

Foundation Trial provided Western

Power with the technology platform

design and number of network trials to

deliver customer-focused products and

services.

Providing customers with choice

and the opportunity to benefit was

the core objective of our Smart Grid

Foundation Trial, Davidson said.

To address increasing residential

peak demand, Western Power collabo-

rated with the local electricity retailer

and ran a demand response air con-

ditioning trial (ACT) that uses smart

grid technology to target residential air

conditioners.

ACT is the first demand manage-

ment trial in Australia to utilize a home-

area network enabled by smart grid

infrastructure, Davidson said.

The primary objectives of the ACT

trial were to:

1. Confirm a measurable and control-

lable demand reduction could be

achieved;

2. Understand customer response

and quantify customer benefits;

3. Validate the use of smart meter-

ing infrastructure as a valid means

of managing residential demand

response;

4. Determine the potential for using

demand response to defer network

investment; and

5. Determine cost and scale implica-

tions of a widespread rollout.

The trial used custom demand

response enabling devices (DREDs),

which were installed in participants air

conditioners. Western Power controlled

the DREDs by sending signals to the

smart meters via a home-area network.

Year one of the trial (2011) was

designed to test the technology and

back-office systems to prove function-

ality. Year one testing was deemed suc-

cessful, so the main focus of the trial

in year two (2012) proceeded and was

designed to coincide with residential

peak demand (4-7 p.m. on the hottest

days of the year) and to understand the

customer experience.

Seven hundred eighty-eight cus-

tomers volunteered to join the trial,

with 377 meeting the selection criteria

(based on air conditioner type and size)

and participating, receiving an incen-

tive payment of $200 for two years.

Ten demand response events were

run from December 2011 to March

2012 from 4-7 p.m. on weekdays when

the maximum daily temperature was

higher than 35 C (95 F) after several

preceding hot days. During an event,

participants air conditioners were con-

trolled remotely by communications

Event Profile Case Study 1

210

190

170

150

130

110

90

70

50

AverageLoad(kW)

Event: BA

Average Reduction

4-6PM: 0.71 kW6-8PM: 0.55 kW

00:00

01:00

02:00

03:00

04:00

05:00

06:00

07:00

08:00

09:00

10:00

11:00

12PM13

:00

14:00

15:00

16:00

17:00

18:00

19:00

20:00

21:00

22:00

23:00

23:59

For event 8A, participants were divided into two subgroups: a participant group and acontrol group. The maximum temperature on this day was 40 C. The demand responseevent occurred between 4 and 8 p.m. The event used randomized 30-minute cycles (15minutes off and 15 minutes on) of the air conditioners compressor. Each cycle wasrepeated eight times during the four-hour event. The image indicated the peak demand ofthe active participant group (those whose air conditioners were cycled) was some 25

percent less than that of the passive group (those whose air conditioners were not cycled)during the event.

Nonparticipating Control Group

Event Group

Difference


26/45

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It is essentialthat customersare brought into

the electricitysupply chain tomaximize return oninvestment.

- Mike Davidson,

Western Power

needs and customer wants. It is essen-

tial that customers are brought into the

electricity supply chain to maximize

return on investment, Davidson said.

Customers have long been a pas-

sive recipient in the electricity sup-

ply chain, he said. Without fostering

community participation through edu-

cation-based community engagement,

the successful deployment of new tech-

nologies to drive network efficiency

will be compromised.

The balance of power is shifting

toward customers. Utilities who do not

deliver customers with choice and the

opportunity to benefit will be unable to

maximize their investment.

Because of the success of the trial,

Western Power will consider how this

technology can be deployed cost-effec-

tively and focus on areas of the network

that are constrained or becoming con-

strained because of air conditioning-

driven residential peak.

Editors Note: POWERGRID International

is accepting nominations for 2014 Projects of

the Year Awards. Visit www.power-grid.com for

details.

greater impact on local feeders that are

constrained due to residential peak,

Davidson said.

The customer experience was very

favorable, according to Western Power

research.

Four out of five participants had

a positive experience, and more than

one-third rated the experience as 10

out of 10, Davidson said. Over 76

percent of participants indicated that

they felt no change in comfort levels,

and 79 percent indicated that they were

happy with the performance of their air

conditioner throughout the course of

the trial.

Around half of customers reported

a sustained reduction in the use of air

conditioners as a result of the trial.

Sixty-six percent of participants

reported an increasing awareness of

their daily energy

usage and the adop-

tion of energy saving

behaviors, Davidson

said. We saw this

result as a great added

benefit of the trial.

Using the posi-

tive results from the

trial, Western Power

plans to look for other

opportunities to effec-

tively reduce peak demand in similar

ways. If used more widely, these kinds

of programs might present a viable

alternative to investing in costly new

infrastructure.

Feedback from industry has been pos-

itive, with the trial named runner-up in

POWERGRID Internationals Project of

the Year Awards in February 2013.

Western Power was honored to be

acknowledged on the international

stage, Davidson said. We are proud of

the work we are delivering in Australia,

in particular the strong, mutually ben-

eficial relationships we are building

with our customers.

Mark Paterson,

chairman of Standards

Australia EL-054

Committee, said the

Western Power trial is

a viable model.

The Western Power

trial is the first of its

kind in Australia and

provides perhaps the

nations first illustra-

tion of what the intel-

ligent networks of the future may look

like, particularly in regard to demand

response, Paterson said.

Through its Smart Grid Foundation

Trial, Western Power has delivered cus-

tomer programs such as ACT, as well

as access to real-time electricity use

data via an in-home display and vol-

untary time-of-use tariffs. These pro-

grams have provided mutual benefits

to customers and the network operator

by bridging the gap between network

2System Electricity Demand, July 1, 2011 to June 30, 2012

Demand(MW)

4,500

4,000

3,500

3,000

2,500

2,000

1,500

1,000

500

0

Jul2

011

Aug20

11

Sep2011

Oct2

011

Nov2

011

Dec2

011

Jan2

012

Feb

2012

Mar

2012

Apr2

012

May

2012

Jun2

012

Max Demand of 4,049 MW

at Jan. 1, 2012, 16:30

Min Demand of 1,525 MW

at June 11, 2012, 01:30

Date
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28/45August2013 | 25

www.power-grid.com

BY JOSE GRANADO AND JOSH AXELROD, ERNST & YOUNG LLP

related extortion.

Many of these executives are bracing

for more aggressive, larger-scale attacks.

Some 40 percent of those surveyed by

McAfee said they expected to face a

major incident that causes a loss of

services for at least 24 hours, loss of life

or injuries.

Mandiant, a U.S. cybersecurity firm,

reported in 2013 that Chinese military

personnel likely hacked into a Canadian

company that makes switches and other

gear for oil and gas pipelines. That access

was cut immediately so the intruders

could not take command of the systems.

he headlines are alarming. The

U.S. faces a possible Cyber Pearl

Harbor, former Defense Secretary Leon

Panetta warned in 2012. A cyberattack

targeting power plants might prove life-

threatening, said Janet Napolitano,

Homeland Security secretary. Enemies

of the U.S. are seeking the ability to

sabotage the power grid, President

Barack Obama said in his State of the

Union.

So far, no U.S. power plant has

suffered a significant cyberattack, and

a growing number of utilities are taking

steps to mitigate attacks. Nevertheless,

the industry remains too vulnerable.

Utilities are high-value targets. They

house a treasure trove of financial data

and provide essential services that if

disrupted for a prolonged period might

trigger civic and economic unrest.

Consider the massive 2003 blackout

that left some 50 million people across

North America without power for up

to four days. Officials said the outage,

caused when a sagging power line came

into contact with overgrown trees, cost

an estimated $6 billion and contributed

to 11 deaths. The damage caused by

a sophisticated cyberattack could be

much worse.

How real is the risk of a debilitating

cyberattack to the power and utilities

sector? According to a report from

information technology (IT) security

firm McAfee and the Center for

Strategy and International Studies in

Washington, DC, small-scale incidents

occur routinely. The 2011 report

found that 85 percent of executives

in the power, oil and gas and water

sectors globally experienced network

infiltrations, and a quarter reported

they had been victims of a network-

Jose Granado is a principal and security

practice leader for Ernst & Young LLP.

Josh Axelrod is a senior manager and

power and utilities information security

sector lead for Ernst & Young LLP.



security controls implemented for your

specific technology environment might

be as effective.

Defining the governance and support

structure necessary to maintain the

solution.

REGULATORY, COST CONCERNS

The North America Electric

Reliability Corp. (NERC) established

the critical infrastructure protection

(CIP) cybersecurity standards that

require designated utility owners and

operators to safeguard critical assets

that are essential to the operation of the

North American bulk power system.

The bulk power system as currently

defined, however, excludes facilities

below a designated threshold. In some

large cities, including New York and Los

Angeles, many facilities used for local

power distribution are not required to

be afforded the protections the NERC

CIP standards are intended to provide.

Federal regulators are concerned about

these exclusions but say theres little

they can do to address the situation.

In a 2011 appearance before Congress,

a top official with the Federal Energy

Regulatory Commission said the

organization lacks the legal authority

to protect the grid adequately from

physical and cyberthreats.

Utilities face additional challenges

with cybersecurity regulation, namely

cost. Complying with federal standards

often is prohibitively expensive. And

state regulators have been reluctant

to approve rate hikes to help utilities

recoup the costs of cybersecurity

investments. Utilities must not wait

for rate increases or direct government

funding before they address their

cybersecurity systems. Failing to invest

carries too great a risk.

Designing an effective cybersecurity

system for an electric utility is

particularly challenging. Utilities

are enormously complex entities

that depend on various devices and

technologies to make the power grid

function properly.

As a result, no single off-the-shelf

product can address the industrys

cybersecurity concerns. Many providers

offer pre-packaged solutions, but such

an approach cannot fully consider a

utilitys cybersecurity needs. Industry

security professionals

instead must develop

customized techniques

that protect legacy

technology platforms yet

remain flexible enough

to respond to the

frequent introduction

of new devices and

equipment.

To further complicate

matters, utilities also must protect

themselves from attacks caused by

well-intentioned staff members who

unknowingly cause breaches when

downloading software or using file-

sharing programs. These actions might

introduce harmful malware and viruses

to the computer network, possibly

causing service disruptions.

Power and utility companies should

consider the following when develop-

ing a successful approach. First, iden-

tify the risk profile. Tailored solutions

cannot be devised until the challenge

is articulated clearly. Questions to help

identify the risk profile of a facility

include:

How does the organization define

cybersecurity risk? Does the

potential risk affect the business?

What are the avenues by which

such threats might enter our

environment?

How prevalent are the risks in our

industry? What have our peers and

competitors faced, and what can

we learn from those incidents?

What threats might be invited

by the behavior of our own

employees? Are our policies about

network access clear and effectively

communicated?

How can we align our responses

to cybersecurity risk with industry

standard security

principles, such as ISO

27001/27002 or NIST

SP800-53?

After making the

determinations, develop

a cybersecurity strategy.

Steps utilities should

consider include:

Aligning cybersecuri-

ty to the organizations overall IT strat-

egy based on the defined risk profile.

This helps build support from company

board members and top executives, as

well as field managers and other per-

sonnel.

Analyzing the cybersecuri ty

issues unique to operations, supply,

procurement, human resources

management, etc., and noting areas of

difference and integration. Get all parts

of the organization working together.

Rather than focusing on tactics to

address possible security breaches,

develop a cybersecurity approach based

on a broad security principlea rating

of breach tolerance, for instancethat

can be achieved via several techniques.

Not assuming that a large-scale

solution, equivalent to a brand-new IT

security system, is needed. Additional

No singleoff-the-shelfproduct canaddress theindustryscybersecurityconcerns.


30/45

BY DMITRIY AYRAPETOV, DELL SONICWALL

detect and highly effective. DDoS attacks

are cheap because they can leverage

distributed networks of thousands of

zombie computers taken over by worms

or other automated methods. For instance,

the DDoS attack MyDoom used a worm to

distribute flood attacks. Because these

botnets are globally sold and available on

the black market, an attacker might buy

the use of a botnet for less than $100 for a

flood attack or contract specific attacks for

as little as $5 an hour.

Financially driven DDoS

attacks typically are based

either on extortion

or competition.

E x t o r t i o n

It is a common headline: Prominent

website brought down by attackers.

The backstory to this growing threat to

business is a distributed denial-of-service

(DDoS). Whether youre a Fortune 500

global enterprise, government agency or

small- to mid-size business, youre on

the target list of todays cyberthugs. Even

security-savvy businesses with plenty of

financial resources and experts to protect

themselves have fallen victim to this threat.

Recently, the number of DDoS incidents

has increased significantly. Attacks also

have grown in scale, exceeding traffic

volumes of 100 gigabits per second. One

prolonged attack on an e-commerce

site in Asia involved a botnet of more

than 250,000 zombie computers, many

reportedly based in China. Criminalsuse DDoS because it is cheap, hard to

Target List of Cyberthugs;Target List of Cyberthugs;

to Combat VulnerabilitySteps

Youre on the

10


31/45August2013 | 28

www.power-grid.com

such as unified threat management

and next-generation firewalls, which

protect against single-point-of-failure

breaches. Effective solutions fea-

ture multiprong defenses, including

intrusion prevention, antimalware,

content filtering and application-

intelligent firewalling.

Enforce access controls.

Criminals cannot damage or take

control of your SCADA systems

unless they can reach them. You

must design and implement rules for

access control and sharing of data,

applications and resources. You also

must define, implement and monitor

all external secure access connections

needed for business users, remote

maintenance, third parties and oth-

ers. Establish policy-based access cri-

teria, limiting access privileges to a

minimum. Keep an up-to-date list of

access accounts, periodically check

logs, and renew all access credentials

with enhanced access control where

necessary.

Secure your remote access.

The exponential growth of mobile,

wireless and widely distributed net-

works presents a vastly greater poten-

tial for unauthorized remote access.

Secure all remote access over virtual

private networks (VPNs) using tech-

nologies such as SSL VPN.

Harden SCADA features.Certain

automated SCADA features (e.g.,

remote maintenance) potentially can

undermine security by creating vul-

nerabilities for unauthorized access

or intrusion attacks. Work with your

schemes often profit by demanding sig-

nificant ransoms from victim organizations

to prevent DoS.Ideological attacks can be

launched by government

entities or grassroots

hacktivists. Hacktivists

tend to seek publicity by

obstructing high-profile

organizations or sites that

symbolize conflicting

political views or prac-

tices. One of the most

notorious examples of a

hacktivist is the loosely

affiliated group Anonymous, who have

claimed responsibility (and publicity) for

bringing down sites of such high-profile

organizations as the FBI and the CIA and

have targeted websites in more than 25

countries across six continents.

WHOS NEXT?

Because hacktivist agendas can be vola-

tile and unpredictable, business or indus-

trymight be targeted as a symbol of the

latest cause du jour. In the case of govern-

ment-launched cyberwar DDoS attacks,

not only .gov targets are vulnerable. Such

attacks also can target affiliated vendors

that supply key infrastructure, commu-

nications or transportation services or

seek to cripple key business or financial

transaction servers.

Who is next? It is unreasonable to think

it might not be you. The danger to utilities

is not simply DDoS; it is the bigger threat

of viruses designed not to steal but to

delete data

powergridinternational201308-dl.pdf

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