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Hosting Capacity Analysis and Distribution Grid Data Security (Report)

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Hosting Capacity Analysis and Distribution Grid Data Security (Report) April 30, 2021 Will Seuffert Executive Secretary Minnesota Public Utilities Commission 121 7th Place East, Suite 350 Saint Paul, Minnesota 55101-2147 RE: Comments of the Minnesota Department of Commerce, Division of Energy Resources Docket No. E999/CI-20-800, Docket No. E002/M-19-685 Dear Mr. Seuffert: The Minnesota Department of Commerce, Division of Energy Resources (Department) secured technical consulting services to provide recommendations on privacy and security in Northern States Power Company’s d/b/a Xcel Energy’s next hosting capacity report, as requested by the Minnesota Public Utilities Commission (Commission) in the Commission’s July 31, 2020 Order in Docket No. E002/M-19-685. On October 30, 2020, the Commission initiated a Commission Investigation on Grid and Customer Security Issues Related to Public Display or Access to Electric Distribution Grid Data (Commission’s Investigation) in Docket No. E999/CI-20-800 and issued a Notice of Comment Period (Notice). The Department’s consultant, Synapse Energy Economics, Inc. (Synapse), provided a report entitled Hosting Capacity Analysis and Distribution Grid Data Security (Report). The Report offers recommendations on Xcel’s hosting capacity analysis and distribution grid data security, in response to both the Commission’s July 31, 2020 Order and to the Commission’s Notice. Attached to this letter is the Report. Both the Department and Synapse are available to answer any questions that the Commission may have in this matter. Sincerely, /s/ MATTHEW LANDI Rates Analyst ML/ja Attachment 85 7th Place East - Suite 280 - Saint Paul, MN 55101 | P: 651-539-1500 | F: 651-539-1547 mn.gov/commerce An equal opportunity employer Hosting Capacity Analysis and Distribution Grid Data Security (MPUC Docket Nos. E999/CI-20-800 and E002/M-19-685) Prepared for Minnesota Department of Commerce April 30, 2021 Prepared by: Shannon Liburd Elijah Sinclair Tim Woolf Cheryl Roberto 485 Massachusetts Avenue, Suite 3 Cambridge, Massachusetts 02139 617.661.3248 | www.synapse-energy.com Acknowledgements Synapse would like to thank Professor Emeritus Vicki Bier, of the University of Wisconsin Madison, and Associate Professor Tony Cox, of the University of Colorado Denver, for providing their time, guidance, and feedback on the application of the Risk-Benefit Framework. Any opinions, findings, and conclusions or recommendations expressed in this publication are those of the authors and do not necessarily reflect the views of Professors Bier and Cox. CONTENTS EXECUTIVE SUMMARY ......................................................................................... I 1. INTRODUCTION.......................................................................................... 1 1.1. Background.............................................................................................................. 1 1.2. Report Overview....................................................................................................... 2 1.3. Workshops .............................................................................................................. 3 2. HOSTING CAPACITY..................................................................................... 4 2.1. Hosting Capacity Use Cases ........................................................................................ 4 2.1.1. Hosting Capacity as a Development Guide .................................................................... 5 2.2. Current State of the Industry ...................................................................................... 8 3. CUSTOMER CONFIDENTIALITY AND GRID SECURITY .............................................. 17 3.1. Overview ................................................................................................................17 3.2. Aggregation Standards and Customer Confidentiality....................................................17 3.3. Critical Energy Infrastructure Information....................................................................21 3.4. Grid Security and Resilience ......................................................................................23 3.5. Grid Resilience ........................................................................................................30 3.6. Balancing grid security with the public benefits of HCA map data....................................33 3.7. HCA Map Integration with Pre-Application Data Report.................................................51 4. FRAMEWORKS FOR ASSESSING INCLUSION OF GRID DATA IN HCA MAPS .................... 58 4.1. Overview ................................................................................................................58 4.2. Risk-Benefit Framework............................................................................................59 4.3. Cost-Benefit Framework ...........................................................................................71 5. MODELS FOR INFORMATION SHARING............................................................. 77 5.1. Introduction............................................................................................................77 5.2. Types of Data-Sharing Models ...................................................................................79 5.3. Benchmarking Sharing Hosting Capacity Map Data .......................................................85 5.4. Models for Data-Sharing in Minnesota ........................................................................86 5.5. Models for Data-Sharing in New York .........................................................................88 5.6. Models for Data-Sharing in California..........................................................................94 5.7. Models for Data-Sharing in New Hampshire.................................................................96 5.8. Comparison of Energy Access Platforms ......................................................................96 5.9. Guiding Principles for Tiered Access............................................................................97 6. RECOMMENDATIONS ................................................................................. 97 7. CONCLUSION .......................................................................................... 99 APPENDIX A. PRE-APPLICATION REPORT DATA ................................................. A-1 APPENDIX B. DEVELOPER SURVEY RESULTS .......................................................B-1 TABLE OF TABLES Table ES-1. Hosting Capacity Use Cases ......................................................................................... iii Table 1: Hosting Capacity Use Cases ............................................................................................. 5 Table 2: Utility Hosting Capacity Analysis Benchmark ...................................................................... 9 Table 3: Hosting Capacity Map Comparison Across Advanced Utilities ..............................................15 Table 4: Typical Aggregation Standards ........................................................................................20 Table 5: DHS Critical Infrastructure Sectors ...................................................................................22 Table 6: NERC Critical Infrastructure Protection Standards ..............................................................22 Table 7: Options for Enhancing Grid Resiliency ..............................................................................32 Table 8: Benefits of Hosting Capacity Information to Developers .....................................................36 Table 9: Comparison of Pre-Application Report data elements with HCA...........................................54 Table 10: Risk Framework Analysis ..............................................................................................62 Table 11: Vulnerability Characterization .......................................................................................65 Table 12: Resilience Characterization ...........................................................................................67 Table 13: Consequence Characterization - Economic Impact to Utility ..............................................67 Table 14: Consequence Characterization - Economic Impact to Community.......................................68 Table 15: Risk Analysis ...............................................................................................................69 Table 16: Risk Characterization ...................................................................................................69 Table 17: Public Benefit Valuation ...............................................................................................70 Table 18: Public Benefit Characterization .....................................................................................70 Table 19: Cost-Benefit Analysis ...................................................................................................75 Table 20: Models for Information Sharing Pre-Interconnection ........................................................85 Table 21: MVDS Data Categories and Elements .............................................................................90 Table 22: Overview of Energy Access Platforms .............................................................................97 Table A.1. Comparison of Pre-Application Report data elements with HCA ...................................... A-1 TABLE OF FIGURES
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