Proprietary and Strictly Confidential

Power Association ofNorthern California

May 2009

CURRENT Group, LLC • 20420 Century Boulevard • Germantown, MD 20874 • +1.301.944.2700 • www.currentgroup.com

Why is Smart Grid Needed Now?

Growth of renewables and distributed generationDynamics that could have a huge effect on a utility's ability to deliver reliable power at a reasonable price

Distribution systems are inefficient – Huge amounts of energy are wasted in line losses and an inefficient system (5%)

Aging infrastructure that will impact the reliability of power as well as inevitable rising costs

Generation shortfalls as demand growth well exceeds new generation

The need for infrastructure to support dispatchable demand response

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Utility distribution systems have been operated as static “as built” Utility distribution systems have been operated as static “as built” systemssystems

With the growth of dynamic generation sources and the needs of the Smart With the growth of dynamic generation sources and the needs of the Smart Grid the distribution system will need to be dynamically managed.Grid the distribution system will need to be dynamically managed.

Dynamically controlling a complex distribution system will require new tools Dynamically controlling a complex distribution system will require new tools and systems.and systems.

Utilities have generally deployed silo systemsUtilities have generally deployed silo systems

Smart Grid is about an enterprise platform. All departments sharing data and Smart Grid is about an enterprise platform. All departments sharing data and analytics. Actionable intelligence needs to be integrated between IT systems analytics. Actionable intelligence needs to be integrated between IT systems

and within the business processes.and within the business processes.

Need higher speed enterprise communications and Smart Grid Need higher speed enterprise communications and Smart Grid opens Pandora’s Box of Dataopens Pandora’s Box of Data

Huge quantities of otherwise untapped data will be available. Up till now Huge quantities of otherwise untapped data will be available. Up till now utilities focused on SCADA data. The ability to collect, store and provide utilities focused on SCADA data. The ability to collect, store and provide

data independent analytics will be required.data independent analytics will be required.

System designed to address dynamic renewable generationSystem designed to address dynamic renewable generation

Minimize costs and waste to allow for renewablesMinimize costs and waste to allow for renewables

DistributionDistributionManagementManagement

Enterprise Enterprise Not Not

Silo SystemsSilo Systems

Paradigm shift:Paradigm shift:Data andData and

CommunicationsCommunications

Maximizing Maximizing RenewablesRenewables

What Does Smart Grid Mean?

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Reduce energy and carbon by precise dynamic voltage controlReduce energy and carbon by precise dynamic voltage control Many studies have shown a 1% drop in voltage results in a close .8% Many studies have shown a 1% drop in voltage results in a close .8%

drop in energy demanddrop in energy demand

Reduce losses (I2R) due to unbalanced feeders (3 phase) and circuitsReduce losses (I2R) due to unbalanced feeders (3 phase) and circuits

Reduce carbon, energy and costs by integrating load control functions Reduce carbon, energy and costs by integrating load control functions

(voltage, DR, DG, etc.) into a single efficient solution(voltage, DR, DG, etc.) into a single efficient solution

Reduce maintenance and capital costs, improve reliability, improve Reduce maintenance and capital costs, improve reliability, improve system capacity system capacity

Supports CBM, dynamic rating, loss of life and replacement programsSupports CBM, dynamic rating, loss of life and replacement programs

VoltageVoltageControlControl

LoadLoadBalancingBalancing

Advanced Advanced Load ControlLoad Control

Real TimeReal TimeAssetAsset

AnalysisAnalysis

Solid Engineering Solutions are Available

CCOMMUNICATIONSOMMUNICATIONS&& S SENSINGENSING

IINFRASTRUCTURENFRASTRUCTURE&& D DATA ATA MMANAGEMENTANAGEMENT

AANALYTICS & NALYTICS & CCONTROL ONTROL SSYSTEMSYSTEMS

CCOMMOMM / S / SENSINGENSING G GATEWAYSATEWAYS

BBACKHAULACKHAUL G GATEWAYSATEWAYS

OOPENGRIDPENGRIDTMTM PPLATFORMLATFORM SSYSTEM YSTEM OOPTIMIZATIONPTIMIZATION

DDISTRIBUTION ISTRIBUTION MMANAGEMENTANAGEMENT

CCUSTOMER USTOMER EENERGY NERGY MMANAGEMENTANAGEMENT

Smart Grid Solutions

GEOSPATIAL DATA MODEL

NETWORK MANAGEMENT SYSTEM

DEVICE DATA MANAGEMENT SYSTEM

DSL WiMax Fiber Cable BPLCellular

“Smart Comms”

•DNP3• IEC 61850• IP•SNMPSecure & Encrypted

“Smart Integration”

• IEC 61968/61970 – CIM • ICCP, OPC• OGC GML• NRECA MultiSpeak• ANSI C12.19• Web Services (SOAP)

Middleware Neutral

UTILITY INFRASTRUCTURE COMPONENTSUTILITY

ENTERPRISE SYSTEMS

MetersCap

Banks RTUs IEDs

Distribution Transformer

PHEV Reclosers Tap

ChangersSensors Switches

MDMS

GIS

Billing/Metering

Work & Asset Mgmt

OMS

Data Historian

SCADA

Corp Service ERP/BI

SERVICES MANAGEMENT INTERFACE

Infrastructure and Data ManagementOpenGrid Architecture Overview

GRAPHICAL USER INTERFACE

ANALYTICS

• Latency Parameters• “Beyond” SCADA Data• Equipment Status Updates• Sensor Inventory & Management

• Measurement Data• Provisioning &

Network Monitoring• Alarms & Triggers

• Asset Properties• SCADA • OMS Device Status• Historical Load Data• Operational Data

SYSTEM OPTIMIZATION

DISTRIBUTION MANAGEMENT

CUSTOMER ENERGY

MANAGEMENT

System Optimization

Products that maximize the efficiency of the electricity flow from the utility to the customer.

Benefits

• Immediate savings by all rate payers

• Deferred spend on generation through the lowering of overall power requirements by up to 5%

• Reduced carbon emissions through the efficiency based reduction of overall power generation

Identification of load imbalance sections in feeders and recommendations to remedy imbalances for loading conditions and seasons

Phase Load Balancing

Voltage optimization through control of the substation Load Tap Changer Controllers based on real-time voltage measurements throughout the feeder

Dynamic Voltage Optimization

Power factor optimization through integrated control of capacitor banks

Volt/Var Control

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SmartGridCityTM – Boulder, Colorado

“The fundamental component for making the smart grid work will be a robust and dynamic communications network; providing the utility the ability for real-time, two-way communications throughout the grid and enabling interaction with

each component from fuel source to end use” (Xcel Smart Grid White Paper)

Collaborating to Build the Next Generation Utility

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SSmartGridCitymartGridCityTMTM

Consortium Consortium

Using the CURRENT portfolio, Xcel has found numerous issues on its grid• Customers back-feeding the grid

• Broken and loose neutrals

• Transformer failures

Xcel is operationally changing their behavior• CEO of Xcel and President of PSCO pushed mobile version to field crews

• Field crews liked it so much they have asked when more feeders will have this capability

Mental and fiscal shift from reactionary to preventative O&M• Area manager shifting budget from trouble shooting to preventative

Smart Grid Operational Impact - Xcel

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Helping Xcel Realize its Smart Grid City Objectives

Xcel Objective Measurement CURRENT Smart Grid Impact

Improving Customer Satisfaction by reducing customer minutes out of service

Reduce SAIDI by 10% Distribution AutomationAnalysis & Reporting of: Incipient transformer failure Secondary neutral failure Voltage exceptions Transformer Overload Underground remote fault detection Outage notification & restoration

Empowering Customers to Reduce Electricity Usage

Decrease usage by 2.5% 2-way thermostat control Demand response portals Meter consumption reporting

Reduce Service and Billing Expense, Increase Revenue Assurance

Up to 50% annually Call center meter pings Automated meter reading Proactive maintenance (reduced O&M)

Decrease System Losses Reduce CO2 emissions up to 500,000 tons annually

System Optimization Conservation voltage reduction Volt/Var Control Phase Load Balancing

Asset Optimization Reduce capital investment and distribution/substation maintenance up to $32 mil annually

Substation monitoring Targeted asset replacement (system

reports)

Develop a Smart Grid City Consortium Framework

Seamless integration of applications and business process

Open GridTM Platform

Develop a Regulatory Framework to Recover Smart Grid Investment

TBD Smart Grid Value Model

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“Issues are often resolved before consumers even realize that there was a problem”

Oncor Press Release

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Smart Grid Operational Impact - Oncor

Trees8%

Xformer25%

Xformer Lead/Connection

10%

Secondary Brkr Tripped

30%

Secondary2%

Secondary/Xformer9%

Arrestor1%

Xformer Tap1%

Capacitor2%

Sub LV Bus Voltage

6%

Secondary Neutral Connection

6%

Examples of items detected by a Smart Grid:

Smart Grid Solutions:

● 24x7 real-time distribution network monitoring in use

● Dispatching work crews to repair problems detected by CURRENT Smart GridTM

● Underground fault detection installed

● Successful distribution automation switching trial

94% of the incidents detected avoided customer complaints

54% of the incidents detected avoided outages

Conclusion

True Smart grid projects can be proposed for stimulus money. No need to dust off old projects.

Smart Grid benefits both the consumer and utility

•Consumers get lower cost, cleaner more reliable energy

•Utilities get reduced operating costs, lower generation costs, and a more reliable and efficient distribution system.