MA DPU Electric Grid Modernization Working Group

Reports From Subcommittees

Steering Committee Meeting #2February 5, 2013

Dr. Jonathan Raab, Raab Associates

Customer-Facing Subcommittee Mtg. #1 Agenda (1/9/13)

• Briefing on Time Varying Rates, Metering, and Customer-Facing Regulatory Policies and MA Utility Pilots– NSTAR-- Doug Horton, NSTAR & Stuart Schare, Navigant

Consulting; GRID--Peter Zschokke; & Unitil--Justin Eisfeller• Time-Varying Rates

– Subcommittee View Sharing and Discussion• Metering/Data Communications

– Speakers: Itron Smart Grid Solutions: Bruce Husta; AvCom Corporation: Fred Avila; & Sentinel Works: Jim Hirni

• Regulatory Policies• Subcommittee View Sharing and Discussion

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Unitil: Pilot Program Results

3 3

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

• Automated load control via thermostats achieves reductions of 0.7 – 0.8 kW

• CPP rate without thermostats saves ~0.2 kW

• Technology group shows savings, but negligible

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* Findings based on two events in Summer 2012, with simple baseline load estimation

0.0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

Peak TimeRebate(n=349)

TOU/CPP +LC (n=309)

TOU/CPP(n=868)

Tech. Only(n=903)

Ave

rage

Loa

d Re

duct

ion

(kW

)

Peak Time Rebate : Group 2TOU/CPP + LC: Group 3TOU/CPP: Group 4Tech. Only: Group 1

Preliminary Findings

555

PilotStart

Official DOE

End of PilotOfficial

DOE

PilotKick-

offSoft

Launch

Summer 2010

January 2012

September 2012

Winter 2013 Summer 2013

December 2013

Spring 2014

24 months

Interim Report to DPU

Pilot Evaluation Timeline

• NSTAR Pilot will run through 12/31/2013 with the final evaluation to US DOE and MA DPU due April 2014.

NGRID: Customer Choices

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In Home

Small Business

Level 2

In Home

Small Business

Level 2

New Rates Hourly Pricing Program (HPP)Critical Peak Pricing (CPP) Peak Time Rebate (PTR)

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NGRID: Results To Date• Early Field Trial (EFT) meters in place since March 2012

– 5,000 meters– Tested communications– Tested reading of meter data– 299 customers opted out of meter (5.97%)

• Remaining 10,000 meters scheduled in service by May 31, 2013• Pilot start date scheduled for January 1, 2014• Provides 2 years of baseline data for summer use for 5,000 customers and

one year for 10,000 meters

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

(Software/HAN or ChoiceConnect)

• Allows customer interaction• Allows appliance control• Interval data for flexible pricing (TOU, RTP, CPP, etc.)• On demand reads• Realistic additional cost

AvCom Presentation

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Customer-Facing Subcommittee Mtg. #2 Draft Agenda (2/26/13)

• Alternative Metering Scenarios, Functions, Costs for Massachusetts– Presentation of Subcommittee’s working group on scenarios, functions, & costs– Utility current meters and meter practices

• Time-Varying Rates (Subcommittee View Sharing and Discussion)– What opportunities will time varying rates enable, and how essential are they to developing a

truly modern electric grid?– What time varying rate options hold the most promise for MA and why? – Should basic service be structured as time varying rate(s)? What about T&D rates?– What do competitive suppliers need to be able to effectively offer time varying rate options?

• Principles and Regulatory Policies for Time Varying Rates and Advanced Metering

– -Brief Presentation on Potential Principles—Barbara Alexander, Consumer Affairs Consultant to MA AG

– Readings from NASUCA and Faruqui– What principles should be considered around time varying rates and meters, including any

recommended consumer protections? – What is the appropriate pace for implementation of customer-facing grid modernization?– What regulatory policies should the group consider?

• Planning for Final Two Subcommittee Meetings

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Grid-Facing Subcommittee Mtg. #1 Agenda (1/14/13)

• Briefing Grid-Facing Options and Opportunities– David Malkin, GE

• Successful Grid-Facing Modernization—10-20 Years from Now– Utilities: Jennifer Schilling & Larry Gelbien, NU; Chris Kelly,

NGRID– Clean Energy Coalition: Ram Rao, Ambient

• Utility Planning and Decisionmaking on Grid-Facing Investments– NGRID--Chris Kelly; NU--Larry Gelbien; & Unitil--Kevin

Sprague• Subcommittee View Sharing and Discussion: Grid-Facing

Modernization

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Grid modernization maturity levelsApparatus………..Physical grid devices

Protection…………Devices to reduce injury or equipment damage

Monitoring...........Maintaining safety, reliability & quality

Metering……………Load management, billing, & system stability

Control………………Operating apparatus & control of power flows

SCADA……………….Supervisory Control And Data Acquisition

Automation………Automatically monitoring & controlling devices

Optimization…….Improving economics, efficiency, reliability & safety

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Technology taxonomy… DOE’s view

Source: US Department of Energy, Impact of Smart Grid Projects Funded by the Recovery Act of 2009

Benefits Smart Grid Technology ApplicationsConsumer-Based

Demand Management

Programs (AMI-Enabled)

Advanced Metering

Infrastructure (AMI) Applied to

Operations

Fault Location, Isolation and

Service Restoration

Equipment Health

Monitoring

Improved Volt/VAR

Management

Synchrophasor Technology Applications

• Time-based pricing• Customer devices

(information and control systems)

• Direct load control (does not require AMI)

• Meter services• Outage management• Volt-VAR

management• Tamper detection• Back-Office systems

support (e.g., billing and customer service)

• Automated feeder switching

• Fault location• AMI and outage

management

• Condition-based maintenance

• Stress reduction on equipment

• Peak demand reduction

• Conservation Voltage Reduction

• Reactive power compensation

• Real-time and off-line applications

Capital expenditure reduction – enhanced utilization of G,T & D assets

✔ ✔ ✔ ✔ ✔

Energy use reduction ✔ ✔ ✔ ✔ ✔

Reliability improvements ✔ ✔ ✔ ✔

O&M cost savings ✔ ✔ ✔

Reduced electricity costs to consumers ✔ ✔

Lower pollutant emissions ✔ ✔ ✔ ✔ ✔

Enhanced system flexibility – to meet resiliency needs and accommodate all generation and demand resources

✔ ✔ ✔ ✔ ✔ ✔

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Technology taxonomy… NEMA’s view(Grid Resiliency)

Source: National Electrical Manufacturers Association,

1. Smart Grid Solutions• Smart meters /AMI• Feeder automation• Fault detection, isolation, restoration

2. Microgrid & Energy Storage Solutions• Microgrid controllers• Distributed generation• Distributed energy storage

3. Hardened Equipment• Wiring• Cabling• Electrical components

4. Back-up Generation• Diesel or NG generators• Batteries, fly-wheels, etc.

5. Equipment Repositioning• Elevating back-up generators• Substation siting 14

Value Based ServicesTwo-way Power Flow

OpportunitiesIntegrated Demand

ResponseSmart Appliances

and StandardsNew home area networks

Secure RenewablesTwo-Way Comms

OMS/DMSReal-time Optimization

Integrated Voltage Control

Now to 5 Years 5 to 10 Years 10-25 Years

NGRID: What will the Customer See…

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Urban, SuburbanReliability Metrics

Pockets of PerformanceDevelop Value Services

Safe, Secure, Reliable and Resilient System

Grid SensingNext Generation Automation

Outage ManagementTwo-way Comms

ConvergingCyber SecurityWeb Services

Applications and DataEnergy Efficiency

Faster Interconnects

Anticipate outages, Continuous

optimization, and pin point accuracy of

system trouble and restoration

True Two-way Power FlowTransaction-less Renewables

Automated Home and Businesses

Multiple Value Services

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Asset Management and On-Line Equipment MonitoringAsset Management and On-Line Equipment Monitoring

Optimization and Improved System EfficiencyOptimization and Improved System Efficiency

Distributed Generation & Alternate Energy SourcesDistributed Generation & Alternate Energy Sources

Self-Healing Wide-Area ProtectionSelf-Healing Wide-Area Protection

NU: The Smart Grid Benefits All Stakeholders

Source: Adapted from EPRI.

The Smart Grid will create a digital energy system that The Smart Grid will create a digital energy system that integrates new tools and technologies from generation, integrates new tools and technologies from generation, transmission, and distribution all the way to consumer transmission, and distribution all the way to consumer

appliances and equipment.appliances and equipment.

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Ambient (Clean Energy Coalition)Smart Grid Emerging Technology RoadmapIncremental(0 – 3 Years)

Strategic(3 – 10 Years)

Transformational(10+ Years)

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Unitil: Goals and Objectives

* U.S. National Energy Technology Laboratory18

Unitil: Distribution Planning Approach

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

expenditure to create a cost benefit analysis

Other Considerations used in the Project Selection Process:– Municipal or DPU Commitments

– Communities with historically lower reliability performance (low months between outage)

– Effect of outages on customers (Significant hardship versus minimal impact)

– Environmental and safety concerns

– Asset age and performance

– Service quality metrics

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Grid-Facing Subcommittee Mtg. #2 Draft Agenda (2/26/13)

• Potential Grid Modernization Framework & Outcomes for Massachusetts– David Malkin, GE presents on behalf of Subcommittee’s working group

• Potential Options & Strategies for Fast Two-Way Communication• Potential Options & Strategies for Seamless Two-Way Energy Flow• Potential Options & Strategies for Voltage/Var Control

– Kelly Warner, Applied Energy Group• Subcommittee View Sharing and Discussion: Grid-Facing Modernization

– What are the most important grid-facing improvements needed?– What is the appropriate pace for implementation of grid-facing grid

modernization?– What are the most important criteria used to make grid-facing investment

choices?– What regulatory policies should the group consider?

• Planning for Final Two Subcommittee Meetings

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