texas smart grid deployment update

Texas Smart Grid Deployment Update

Christine WrightPublic Utility Commission of TexasJune 24, 2010

Overview & Contents

State of the Market Policy Overview Meter Testing Deployment Customer Access to Data Smart Grid 1.0 Market Readiness Emerging Issues & Challenges Appendices

22010 National Town Meeting on Demand Response & Smart Grid June 23-24, 2010 Washington DC

Market StructureFour electric scenarios in Texas Municipal Electric Company (ex. Austin Energy, CPS Energy) Cooperative (ex. Bluebonnet Electric, PedernalesElectric) Fully-Integrated Investor-Owned Utility (ex. Entergy, SWEPCO).

Investor Owned Utilities exist only outside of ERCOT. Competitive Market within ERCOT:

Retail Electric Providers (REPs) and interact with end-use customers to sell electricity. REPs are largely unregulated except for certification and disclosure requirements.

Transmission and distribution utilities (TDUs) operate the wires portion of the business and are fully regulated by the PUC.

Electric generation is largely unregulated except for market power issues.

The PUC has limited authority over Municipal Electric Companies and Co-Ops. The PUC regulates Investor-Owned Utilities(IOUs). PUC sets retail rates for

integrated utilities and delivery rates for Transmission and Distribution Utilities.


State of the Market

Competitive Renewable Energy Zones (CREZ) Wind Generation Build out of EHV transmission in SPP Energy Efficiency Smart Grid Activities Low Retail Electricity Prices Robust Resource Margins Lower C02 Emissions


Texas Smart Grid Policy

2005 Passage of HB 2129 2007 AMI Rule Adopted 2007 Passage of HB 3693 2008 AMI Deployment Begins 2008 Implementation Project Begins 2009 15-Minute Settlement Begins 2010 PHEV Project/Rulemaking Initiated

2010 National Town Meeting on Demand Response & Smart Grid June 23-24, 2010 Washington DC 5

Independent Testing In response to complaints from customers that smart meters were

over-charging, the PUC signed a contract with Navigant Consulting, Inc. on March 16, 2010 to evaluate Smart Meter accuracy for Oncor, CenterPoint Energy, and AEP Texas.

The Commission also waived re-read fees for customers concerned about the accuracy of the smart meters.

Study components include: Review historic customer usage. Analyze customer complaints. Evaluate utility smart meter processes, procedures and controls involving system

hardware and software. Track the accuracy of information transmitted from a smart meter to its final

destination (meter-to-bill). Sample customer (conventional meter) usage to compare information and

identify any inconsistencies with customer accounts that have smart meters. Side-by-Side testing.


Smart Meter Deployment


Access to Data

8

Customers Own their Data Customers can authorize a 3rd Party other than

their REP to have their data TDUs read meters and send meter data to

ERCOT. ERCOT prepares “settlement” of meter data

and sends to the REP REP bills the customer.


Access to Data

SECTION 7. Section 39.107, Utilities CodeAll meter data, including all data generated, provided, or otherwise made available, by advanced meters and meter information networks, shall belong to a customer, including data used to calculate charges for service, historical load data, and any other proprietary customer information. A customer may authorize its data to be provided to one or more retail electric providers under rules and charges established by the commission.


Smart Meter Texas


Smart Grid 1.0 – Market Readiness Update

This Smart Grid 1.0 (AMS Deployment) – Market Readiness Update provides an overview of the market participants’ progress toward operating in a Smart Grid 1.0 (AMS Deployment) environment.

Completion of Smart Grid 1.0 (AMS Deployment) will maintain the state’s commitment to following open standards as opposed to proprietary protocols, maintain ongoing review of data security, and enable REPs to offer innovative products to customers to facilitate competitive market opportunities.

Smart Grid 1.0 (AMS Deployment) is the foundation for which the remaining components of the Smart Grid in Texas will be developed. This is defined as: (1) meeting the minimum requirements contained in the Advanced Metering rule (2) meeting the requirements of the Final Orders issued in each AMS Deployment

and Surcharge Request proceeding, and (3) meeting the minimum requirements developed by the Advanced Metering

Implementation Team for Phase 1.


Emerging Issues & Challenges

Meter Tampering Oncor & CenterPoint 500 HAN Device

Commitment Low Income Program – Distribution of HAN

Devices HAN Functionality incorporated into

www.smartmetertexas.com ZigFestTX events Selection of a HAN “Czar”


More InformationChristine WrightPublic Utility Commission, Competitive Markets [email protected]: 512.936.7376

Advanced Metering Implementation Projecthttp://www.puc.state.tx.us/electric/projects/34610/34610.cfm

HB 2129www.capitol.state.tx.us/BillLookup/Text.aspx?LegSess=79R&Bill=HB2129

Utility Smart Meter Deployment - Monthly Status Reports http://www.puc.state.tx.us/interchange/index.cfm

AEP - Project No. 37907CenterPoint Energy – Project No. 36699Oncor Electric Delivery – Project No. 36157


Appendices

142010 National Town Meeting on Demand Response & Smart Grid June 23-24 2010 Washington DC

Advanced Metering Rule

Deployment of AMS is voluntary Includes requirements for:

Mandatory AMS capabilities including open standards (ANSI C12.19 & C12.22 or equivalent)

Communications with Home Area Network (HAN) Data Access Deployment Information Cost Recovery (surcharge)


ARRA Recipients in TX

Name of Awardee Recovery Act Funding

Total Project Value Including Cost Share

CenterPoint Energy $200,000,000 $639,187,435

Reliant Energy Retail Services, LLC $19,994,000 $65,515,000

Golden Spread Electric Cooperative, Inc. $19,995,000 $49,987,500

Denton County Electric Cooperative d/b/a CoServ Electric

$17,205,844 $40,966,296

El Paso Electric $1,014,414 $2,085,095

Center for the Commercialization of Electric Technologies

$13,516,546 $27,419,424

Pecan Street Project, Inc. $10,403,570 $24,656,485

Oncor Electric Delivery Company, LLC $3,471,681 $7,279,166


Energy EfficiencyThe commission is currently in the process of amending the

current energy efficiency goals:

Increases standards from 20% to 30% of the electric utility's annual growth in demand of residential and commercial customers by program year 2012,

Requires 40% annual growth in demand by program year 2013, Requires 50% annual growth in demand by program year 2014, Updates the cost effectiveness standard by adjusting the avoided cost

of capacity and the avoided cost of energy; Increases the performance bonus for an electric utility that exceeds

its goal. The rule should be in place to allow utilities and service providers to

implement for the 2011 calendar year.


texas smart grid deployment update

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