Pepco’s Plans for

Rob Stewart Blueprint Technology Strategist

0 Pepco’s Smart Grid Vision…

“Through the ‘Smart Grid’, customers will become empowered to make choices regarding their use and cost of energy. It will open opportunities for innovation. It will provide the ability for a utility and its customers to take advantage of energy alternatives and efficiencies regarding both the production and consumption of energy. It includes a solid foundation of intelligent grid sensors, components and operational design to improve control, quality, reliability, and security. Adding, operating and maintaining grid assets will be based upon more up-to-date, fact-based data. This will enable the evolution from preventative and reactive to predictive and self healing for more efficient use of resources.”

Vision, without an Action Plan, is just a Dream……

1 Pepco believes there are 5 evolutionary steps to achieving the Smart Grid…

Step 5 Optimization: Step 4 – Capability of real-time • Analytical optimization of infrastructure: distribution Step 3 network – Development of performance new data Integration: – Decisions based analysis – Corporate IT on near real-time

Maturity Step 2 capabilities systems information, no • Communications integrated to allow – Increased ability longer only to display infrastructure: rapid processing historical data Step 1 of data information (in – Enterprise – Open architecture form of • Intelligent devices communication based design to dashboards, system for rapid infrastructure: facilitate sharing etc.) and accurate – AMI, or ‘Smart of information transmission of Meters’ data – Distribution – Integration of fiber Automation and mesh Devices broadband – networks Devices – Substation IED Controllers Capability

Adapted from IBM 2 Pepco’s Smart Grid footprint is not just AMI, but rather the entire electric system, from the customer to the transmission system

MAPP Communications Transmission Infrastructure Line

Transmission Substation

Distribution AMI (‘Smart Meters’) Automation & Demand Side Substation Automation Management Feeder Automation Home Intelligence

3 Pepco’s Integrated Smart Grid Communications Infrastructure

Home Intelligence Feeder Automation Substation Automation Transmission Automation

AMI Collector Communications Tower Solar (or Wind) SF6 Line Switch Smart With Radio Thermostat Transceiver

Radio Substation WAN Substation HMI

Smart Controller RTU PC PHI Central PJM Substation LAN Operations Distribution Poles Smart Smart . . . . Smart Legacy Smart Relays Meters Monitors RTU Meter House Smart Substations (Transmission & Distribution) Electric Vehicles

PHI Central Substation Operations Customer Meter Collector PJM

Home Area 3/16/2009 9/14/2009 Wireless Mesh Network Broadband Wireless Network Fiber-Optic Network Network

3/16/2009 9/14/2009

3/16/2009 9/14/2009 Growing volume of data...

4 Pepco Smart Grid Device Map

A’ A B CDE

“Home Intelligence” “Feeder Intelligence” “Substation Intelligence” “Transmission Intelligence”

Advanced Metering Smart Meter MDMS, OMS, CIS Infrastructure

Substation LAN (?) Automatic Circuit (ACR) EMS Automatic Sectionalizing & Automatic Sectionalizing and Tie Restoration (ASR) scheme Switches Microprocessor/Smart Relays Advanced Voltage Control Distribution Application Servers VAR Control / Capacitors Automation Smart Monitoring & Controls Network Protector Monitoring & Control Distributed Smart Remote Network Cable / Vault Monitoring Terminal Unit (RTU) Distributed Smart RTUs Voltage Control, Substation- Fuses Level by Smart Relays or EMS Fault Detectors

Synchrophasor Motor Operated Disconnect (MOD) Transmission Dynamic Ratings Automation State Estimation High Voltage Direct Current (HVDC) Static VAR Compensator (SVC) Demand Response Smart Thermostat (DLC & Dynamic Demand Side Management (?) Rates) In-Home Display

Distributed Micro-generation (solar, wind) Generation Vehicle-to-Grid EMS

Energy Efficiency Smart Appliances Demand Side Management (?)

5 Pepco’s Smart Grid activities will provide numerous benefits for customers, the economy, the environment and society…

Smart Grid Benefits

Customer Benefits Economic Growth Benefits Environmental and Societal Benefits

Better Promote US Reduces Increases Combats Better Lowers Improves Improves Greener Create US Enables New High Inter- Resists Better Billing Energy Info Energy Energy Green Global Planning & Energy Bills Reliability Restoration Options Jobs Markets operability Attack & Control Independ. Usage Energy Warming Forecasting

Advanced Metering Infrastructure

Distribution Automation

Demand Response Dynamic Rates

Direct Load Control

Transmission Automation

Smart Home Automation PHI’sPHI’s Grid Grid Activities Activities Smart Smart Distributed Generation

Energy Efficiency

Full Smart Grid Deployment

Key:

Increasing degree of benefits

6 Smart Grid: PHI Progress to Date and AMI Meter Capabilities

PHI filed its Blueprint for the Future program with local regulators back in 2007. This program incorporated several key Smart Grid initiatives. Already PHI has chosen several vendors and begun deploying Smart Meters…

Smart Grid Vendor Selection: AMI Meter Capabilities • Comverge – selected vendor for Direct Load Control – Radio Frequency (RF) communication to in Maryland Field Network Devices – Radio Frequency (RF) communication to In- • Silver Spring Networks – selected vendor for AMI Home Devices via Zigbee protocol. communication network – Connect/Disconnect Switch • IBM – system integrator for Delaware deployment to – Load Limiting capabilities enable over the air meter read, outage detection, on – Bi-Directional Metering demand meter reads and remote disconnect – Interval Register data • GE and Landis + Gyr – selected as meter – Voltage Readings/Power Quality manufacturers – Outage notification, power restoration, and energized meter verification • Scope Services – selected as the Meter Installation – Configurable Settings and Internal Clock Contractor – Diagnostic Alarms, Tamper Flags, and Delaware Deployment of Smart Meters Outage/Switch Counters – 35 Days non-volatile storage of data • 3Q 2009 Complete field acceptance testing of the – Updateable Communication Firmware AMI equipment and systems – Register Display • 4Q 2009 Commence deployment of AMI equipment in – Support for Home Area Network, Delaware Distribution Automation, and Demand Response.

7 Smart Grid Investment Grant

• Commonly known as Section 1306. Notice of Intent (NOI) issued on April 17. Comments due by May 6

•Key focus: Development of smart, strong and secure electrical grids – which will create new jobs and deliver reliable power with less impact on environment

• Funding Opportunity Announcement (FOA) to be issued on June 17. Application deadline is July 29.

• Total funding proposed: $3.375 billion. Maximum funding for a project $ 200m, maximum grant 50% of the project

• Duration of construction/spend: 2 years

8 Green Power Connection

• Pepco has established a Green Power Connection Website: http://www.pepco.com/home/choice/dc/greenpower/

• Customers who plan to install sources must first submit an application to link their system to Pepco's; this is to ensure safety and compatibility with our electrical system. Here are some tips to get you started: – Research the types of systems available to you. Renewable energy-generating systems can be sized to meet all, or part, of your overall energy needs. – Once your research is complete, decide which type of system is best suited to meet your energy needs. – Interview and select a reputable installation contractor, who will typically handle the application process both with Pepco and the District of Columbia, any rebate forms, permits, inspections, etc.

9 3 Things You Should Know

• Pepco is focused on the future. This will require our employees to embrace new ways of doing things and to adopt new skills and abilities. • Implementation of new technology is not the end, but rather the beginning… • The Blueprint will obviously be a great benefit to our customers, but it will also be critical in enabling regulators, legislators and other entities in realizing future energy and environmental goals, objectives and aspirations.

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