Innovations Across the Grid Partnerships Transforming the Power Sector

VOLUME II INNOVATIONS ACROSS THE GRID PARTNERSHIPS TRANSFORMING THE POWER SECTOR

The Edison Foundation INSTITUTE for ELECTRIC INNOVATION

VOLUME II INNOVATIONS ACROSS THE GRID PARTNERSHIPS TRANSFORMING THE POWER SECTOR

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Published by: The Edison Foundation 701 Pennsylvania Avenue, N.W. Washington, D.C. 20004-2696 Phone: 202.508.5440 Web site: www.edisonfoundation.net Table of Contents

IEI MANAGEMENT COMMITTEE VI Indianapolis Power & Light Company — Distributed Solar Generation Integration 47 IEI TECHNOLOGY MidAmerican Renewables — PARTNER ROUNDTABLE VII Grid-Friendly Utility-Scale PV Plant 51 NorthWestern Energy — INTRODUCTION 1 Grid-Supported Microgrid 57 Pacific Gas and Electric Company — Battery Energy Storage System Pilots 61 FOREWORD by Chris Johns, President, Pacific Gas and Electric Company 5 PNM Resources — Geographic Information System (GIS) Data Converter 67 FOREWORD by Bob Rowe, President Portland General Electric — Integrated and CEO, NorthWestern Energy 9 Energy System Demonstration at Salem Smart Power Center 71

NEW ENERGY RESOURCES 13 Public Service Electric & Gas Company — Solar 4 AllTM 75 Avista Utilities — Economic Dispatch of Distributed Energy Resources 17 Southern California Edison — Preferred Resources Pilot 79 Dominion North Carolina Power — North Carolina Microgrid Southern California Edison — Demonstration and Research Project 21 Tehachapi Energy Storage Project 83 Dominion Virginia Power — Tucson Electric Power — Bright Tucson Solar Partnership Program 25 Community Solar Program 87 Georgia Power — Utility-Scale and Tucson Electric Power — Distributed Solar Implementation 29 Fort Huachuca Solar Power Project 93 German Transmission System Operators Amprion & TenneT — DISTRIBUTION GRID OPTIMIZATION 97 Demand Response as Ancillary Service in Germany 33 American Electric Power — Asset Health Center Improves Infrastructure Hawaiian Electric Company — Decisions; Builds Smarter Grid 101 Solar and Wind Integrated Forecasting Tool (SWIFT) for Grid Operations 37 Baltimore Gas & Electric — Implementation of Conservation Indianapolis Power & Light Voltage Reduction 105 Company — AES Battery Integration Center 43 CenterPoint Energy — Intelligent Grid 111

III Commonwealth Edison Company — Southern California Edison — Irvine Distribution Automation 115 Smart Grid Demonstration: Substation Automation Using Open Standards 187 Commonwealth Edison Company — Resilient Electric Grid Xcel Energy — Advanced Network Superconductor Project 119 Management System 191 Consolidated Edison Company of New York — CUSTOMER SOLUTIONS 197 Digital X-Ray Technology 123 Austin Energy — Power Partner Consolidated Edison Thermostat Program 201 Company of New York — Dual-Feeder Circuit Breaker 127 CenterPoint Energy — Power Alert Service 205 DTE Energy — Leveraging Hyper- Localized Weather Forecasting Commonwealth Edison Company — for Distribution System System Improvements Map 211 Damage Prediction 131 Commonwealth Edison Company — DTE Energy — Sensors for a Nest Thermostat Demand Predictive Grid in the Motor City 137 Response and Rebates 215 Duke Energy — Field Message Bus Commonwealth Edison Company — Interoperability and the Coalition Peak Time Savings 219 of the Willing Project 143 DTE Energy — DTE Insight App and Energy Bridge 223 Électricité Réseau Distribution France (ERDF) — Duke Energy — Becoming a Trusted Nice Smart Solar District 149 Energy Advisor 227 Enel — Improving Smart Grid Gulf Power — Energy Select 231 Reliability and Operational Efficiency 153 National Grid — DemandLinkTM Pilot Florida Power and Light Company — in Rhode Island for System Optimizing the Smart Grid to Reliability Procurement 235 Enhance Service Reliability 157 NV Energy — Building Energy NSTAR — Urban Grid Monitoring Intelligence in the State of Nevada 239 and Renewable Integration 163 Pacific Gas and Electric Company — Oklahoma Gas & Electric — On-Bill Financing Marketing 243 100 Analytics Apps 167 Pepco Holdings, Inc. — Oklahoma Gas & Electric — Peak Energy Savings Credit 249 Verified Service Outage 171 Pepco Holdings, Inc. — SolutionOne 253 Pacific Gas and Electric Company — Portland General Electric — Intelligent Switches: Energy TrackerSM 257 Increasing Reliability with San Diego Gas and Electric — "Self-Healing" Technology 175 Manage-Act-Save 261 Pepco Holdings, Inc. — Southern Company — Remote Disconnect and Customer Outage Communications 265 Reconnection of Electric Service 179 Pepco Holdings, Inc. — Transformer Load Management 183 COMPANY INDEX 271

Institute for Electric Innovation Management Committee

Executive Director — Lisa Wood Co-Chair — Christopher Johns, President, Pacific Gas and Electric Company Co-Chair — Robert Rowe, President and CEO, NorthWestern Energy

Nicholas Akins David Hutchens Scott Prochazka Chairman, President, and CEO President and CEO President and CEO American Electric Power UNS Energy Corporation CenterPoint Energy, Inc.

Terry Bassham Thomas King Joseph Rigby Chairman, President, and CEO President Chairman, President, and CEO Great Plains Energy, Inc. National Grid USA Pepco Holdings, Inc.

Christopher Crane Mark Lantrip Charles Schrock President and CEO President and CEO Chairman, President, and CEO Exelon Corporation Southern Company Services Integrys Energy Group, Inc.

Peter Delaney John McAvoy Eric Silagy Chairman, President, and CEO Chairman, President, and CEO President and CEO OGE Energy Corp. Consolidated Edison, Inc. Florida Power & Light Company

Anthony Earley David Meador Andrew Vesey Chairman, President, and CEO Vice Chairman and CAO Executive Vice President PG&E Corporation DTE Energy Co. and COO AES Corporation Thomas Fanning Scott Morris Chairman, President, and CEO Chairman, President, and CEO Patricia Vincent-Collawn Southern Company Avista Corp. Chairman, President, and CEO PNM Resources, Inc. Benjamin Fowke Jim Piro Chairman, President and CEO President and CEO Xcel Energy, Inc. Portland General Electric

Lynn Good Pedro Pizarro President and CEO President Duke Energy Corporation Southern California Edison

VI Institute for Electric Innovation Technology Partner Roundtable

Chair — Kevin Fitzgerald, Executive Vice President and General Counsel, Pepco Holdings, Inc.

Alstom GridSense

American Efficient IBM BRIDGE Energy Group Innovari Broadscale Group Intelligent Energy Solutions BuildingIQ Itron C3 Energy Comverge Johnson Controls Copper Development Association Opower

Ecova Oracle

Enbala RES Americas Energate Sensus EnerNOC Siemens First Solar Silver Spring Networks FirstFuel GE Power & Water Simple Energy Gridco Systems Tendril

The IEI Partner Roundtable is a select group of innovative technology companies dedicated to advancing smart technologies with electric utilities. The roundtable is a platform to share information, ideas, innovations, and results as utilities and technology companies work together.

VII “The process of integrating new resources, planning and optimizing the grid platform, and providing customer solutions is continuous, real-time, and evolving.”

VIII Introduction

The electric power distribution grid To integrate new energy resources; is an evolving plug-and-play platform To optimize the distribution grid for integrating new energy services platform; and and technologies. Public policies, new To provide customer solutions. technologies, innovation, and consumer needs are driving the transformation of Evolving Distribution Grid Platform the power grid. The significant investments being made in grid technologies, data Over the past decade, U.S. utilities have analytics, distribution system sensing been integrating increasing amounts of and monitoring, and controls to enhance large-scale variable renewable energy operational efficiency and to integrate resources into the grid each year, and this new resources are clear indicators of the is expected to continue. More recently, significant changes that are happening utilities have started to integrate more across the electric utility industry. distributed energy resources, such as rooftop solar photovoltaics (PV), storage, Through a series of case studies and other distributed resources onto the documenting “real world” projects, grid. This integration requires transforming Innovations Across the Grid (Volume II) the distribution system from a one-way shows how the distribution grid platform is delivery network to a much more complex, evolving in real-time to continuously meet actively controlled network. three critical needs: As energy resources at the edges of the grid continue to grow, the nation’s power grid is becoming more distributed, decentralized, Evolving distribution grid platform. and complex. Chapter 1 provides roughly 20 case studies detailing the development and integration of both large-scale and distributed solar, microgrids, battery storage, and community solar, as well as the monitoring and forecasting needed for the successful integration of these resources.

Utilities are investing in and upgrading their distribution systems with the goals of creating grid optimization and a more open,

1 flexible, multi-point distribution network (or As demonstrated in the case studies platform). This involves the convergence of throughout the book, the intersection of information technology (IT) and operations new energy resources, grid optimization, technology (OT) systems; the connection and customer solutions is creating new of legacy assets and systems with new services for customers, new processes ones; and the deployment of smart meters, for utilities, and new interfaces among smart sensing, and automated control customers, energy resources, third-party technologies; along with other investments providers, and utilities. that provide visibility into the grid. Overall, and with the continuous addition of new The distribution grid will provide and enable more “value” to customers as technologies, the grid is evolving to new assets and services are added to it. become more digitized and data-driven. For example, utility-provided integration Chapter 2 showcases more than 20 case of distributed energy resources and grid studies that highlight projects underway resource management are becoming aimed at grid optimization and flexibility, increasingly sophisticated as a result of including enhanced grid reliability and new technologies and data analytics. operational efficiency; grid intelligence These new resources also require new tools to optimize overall system and self-healing; substation automation; efficiency and energy use. and outage management. Managing and optimizing the Today, electricity powers nearly every distribution grid platform mean facet of everyday life, and the relationship developing the capability to manage among electric utilities and customers all grid assets and business systems to is evolving. Customers expect more achieve greater reliability, resiliency, from their electricity providers. More and energy optimization. This is a major communication methods are available to undertaking and requires significant connect customers and utilities in real- investment. First, connecting OT and time. Utilities are offering more payment IT will lay the foundation for a smarter and communication options to better serve distribution system. Second, enhancing their customers; different ways to manage data analytics and real-time optimization energy use; more rate options to capture capabilities across all assets will dynamic conditions; and other services ensure a reliable, resilient, safe, and affordable grid. behind the customer’s meter. The case studies in Chapter 3 focus on customer Innovations Across the Grid (Volume II) solutions, such as energy tracking, smart shows the wide range of projects underway pricing, bill alerts, outage communications, as the new distribution grid fully emerges. and BYOT — bring your own thermostat. However, the process of integrating new

2 Innovations Across The Grid resources, planning and optimizing the grid collaborating with two key partners: platform, and providing customer solutions with technology companies to bring is continuous, real-time, and evolving. innovative products and services to the market and to set and deploy standards, The Future is Now: Electric and with regulators to define appropriate new business models for the plug-and-play Utilities Operate the Plug-andgrid platform. Play Grid Today’s power grid is evolving from a one- Electric utilities operate and provide way centralized power delivery system to services on the plug-and-play grid platform a more open, flexible, multipoint digitized today. Oracle Co-Founder Larry Ellison network (or platform) with a collection of basically calls the electric utility industry the technologies and assets, some controlled best plug-and-play industry in the world. by the utility and some not. Discussions The current grid is already the platform for about the evolving distribution grid are basic services and ensures that electricity is unfolding across the country. Much of the reliable, affordable, secure, and increasingly dialogue is driven by the need to integrate clean. The evolving grid will expand this increasing amounts of distributed energy plug-and-play platform for new services resources and to make the overall operation and technologies to “plug” into. This means, of the grid more efficient than it is today. for example, seamlessly integrating new energy resources, such as rooftop solar PV, Managing the evolving and integrated storage, demand resources, and electric distribution “grid of things” will require vehicles, into the grid. While the concept utilities to continue to invest in upgrading and result are simple, the technology and and modifying their distribution systems. expertise to connect and to operate the The case studies in Innovations Across the system reliably at the distribution level are Grid (Volume II) give you a glimpse into not. Much planning and investment are how electric utilities are doing just that. needed to make this operate seamlessly and efficiently.

Electric utilities are indispensable to the scaled deployment of grid-related assets Lisa Wood and technologies, because only utilities Executive Director, have end-to-end platform visibility to Institute for Electric Innovation ensure system reliability, resiliency, and Vice President, Edison Foundation power quality. However, this new business environment relies increasingly on utilities

Introduction 3 “It’s a future where the grid we operate serves as the platform to interconnect and enable all of the emerging energy technologies our customers want to pursue — in other words, a 'grid of things.'”

4 Foreword

The speed of change in personal At PG&E, we have a unique vantage point technology has catapulted the expectations on this exciting time in history. The world’s of the general consumer into a different biggest names in technology — from Apple dimension. Perhaps you’ve heard the to Google — are based in our backyard; comedy bit that lampoons an airline California’s clean-energy policies are passenger for getting upset when the among the most progressive in the nation; onboard Wi-Fi stops working. How quickly rooftop solar installations and electric we’ve taken for granted that we can fly vehicle sales here far outpace anywhere comfortably at hundreds of miles an hour else in the country; and all of this comes on and be connected to anything we’d want to top of California’s longstanding leadership know, read, or watch while we’re doing it. on energy efficiency.

Our customers’ expectations around energy For our part, PG&E has embraced this spirit are changing in similar ways. Increasingly, of innovation with advancements on smart there’s a desire for energy products and meters, fleet electrification, renewable services that are clean, personalized, generation, and other areas. As you’ll see flexible, perfectly reliable, affordable as in the case studies that follow, electric ever, and — it goes without saying — safe. utilities across the country are rising to these same challenges and helping to The question is: Is the power grid, once write a new chapter for our industry. It’s a considered by the National Academy of future where the grid we operate serves as Engineering as the greatest engineering the platform to interconnect and enable all achievement of the 20th century, capable of the emerging energy technologies our of meeting the evolving expectations of the customers want to pursue — in other words, 21st century? a “grid of things.”

The short answer is absolutely yes — if we It’s a future where energy technology and focus our investments in the right way. The information technology converge and longer answer is explored in the pages that create a whole new set of opportunities. follow: 55 case studies that show ideas in Think of a homeowner with solar panels action for modernizing America’s power selling excess power to a neighbor and grid, all of which give me optimism for the brokering the deal with smart meters and future of utilities. cell phones.

5 Because of the interconnectivity this type of has to move first. This means rewarding grid provides, we not only add tremendous innovation, investing in training, and value to those individual technologies, we recruiting the right talent. The workforce of also add value to the grid itself. In fact, I’d the future will look and think differently, and argue the grid of the next 100 years will be judging by the case studies in this volume, just as relevant and essential, if not more so, that’s already happening. than it has been over the last 100. Going forward, if utilities can continue the Of course, a lot of work needs to be done type of innovation demonstrated here, I to achieve this vision. Innovations Across have every confidence the electric grid will the Grid (Volume II) captures the scope of meet the demands of the 21st century. If that work by organizing it into three areas: done well, most people will simply take it new energy resources, grid optimization, for granted, a lot like Wi-Fi on a jetliner. and customer solutions. These areas are Chris Johns right on target for where we need to focus President, Pacific Gas and Electric Company our efforts. Co-Chair, IEI Management Committee But I challenge us to also think in the bigger picture about three key groups of people who are critical to our success.

The first is our customers. Their needs and expectations must remain the principal driver behind our pursuits. So it’s imperative that we invest in better understanding those needs and expectations — and anticipating how they might change 10 to 15 years down the line.

The second is non-traditional partners. Unlike the past, where innovation in the utility industry typically came from within, much of it today is coming from elsewhere. So building the best grid for our customers will require utilities to reach out and work together with these co-innovators in energy.

The third is our employees. As important as outside partners will be, the internal culture

6 Innovations Across The Grid

“The U.S. power grid, for most customers and most applications, is amazingly 'plug and play' in a way that is still aspirational in the IT world.”

8 Foreword

A canard has it that Thomas Edison would And, we have a better understanding, still recognize today’s power grid. The based on experiences in diverse settings, implication is that not a lot has changed of the costs, benefits, and challenges of in the way electricity is generated and integrating new kinds of resources onto delivered to customers over the last 100 the grid. years. Zut alors! Nothing is further from the truth! Importantly, policymakers and regulators are engaging more frequently — and in While Edison would surely recognize the ways that are more operationally and dedication, skill, and innovation of the men financially focused than was the case just a and women who work in the power sector few years ago. today, he would be astounded by the major transformations that have changed — and Innovations Across the Grid (Volume II) continue to change — the grid. addresses:

Just a year ago, the Edison Foundation’s The role of technology in the evolving Institute for Electric Innovation (IEI) released power grid; Innovations Across the Grid, which offers How to integrate new resources onto the an accessible, practical handbook of utility grid; and technology projects that are producing The importance of understanding and value for companies and their customers engaging energy consumers, who are across the country. It was quickly adopted no longer “passive ratepayers.” as a sourcebook for good ideas in areas So much has happened within IEI as well. such as grid optimization, resiliency and Our meetings, held in conjunction with the restoration, customer engagement, and Edison Electric Institute’s conferences, pro- energy management. vide fabulous insight into forward-looking So much has happened over the past projects and innovative ideas, as well as year, and companies are eager for a fresh great discussions among electric company volume of forward-looking and practical leaders and technology partners. During ideas. Projects have come off the drawing each meeting, we do a deep dive into a board and are being implemented. Both specific set of issues. In addition to “sus- companies and vendors are developing taining” projects, we also are taking a hard clearer views of how the future may look at emerging and potentially “disrup- develop — with a premium on optionality. tive” developments. And, IEI has published

9 a timely series of case studies and sum- health care, agriculture, transportation, and maries that provide accessible insight into emergency services. According to DHS, the key developments. energy sector is unique because, “With- out a stable energy supply, health and Mid-year, we convened industry and tech- welfare are threatened, and the U.S. econ- nology leaders at a retreat designed to look omy cannot function.” Energy is “uniquely over the horizon at the range of scenarios critical because it provides an enabling for how the industry might evolve (and how function across all critical infrastructure sec- IEI should keep evolving to best serve its tors.” See DHS Energy Sector Overview, stakeholders). We particularly focused on http//www.dhs.gov/energy-sector. the “platform grid.” That’s a big responsibility, and our industry The U.S. power grid, for most customers serves critical stewardship roles, powering and most applications, is amazingly “plug our economy and providing essential infra- and play” in a way that is still aspirational in the IT world. It smoothly and seamlessly structure and services to virtually every cit- enables countless consumer and commer- izen, business, government, and non-profit cial applications. Our customers don’t need entity in America. As our companies fulfill a tri-fold accordion manual of instructions, this responsibility, we need sustainable printed in small or tiny gray type. It’s already approaches to network evolution, work- a great platform. force development, and other key areas. We need smart and sustainable business An evolving platform grid is the foundation plans and policies to support them. for integrating new supply and demand resources, for customer-facing solutions, Innovations Across the Grid (Volume II) is and for optimizing the energy value chain full of ideas that are working for utilities and from end-to-end. The evolving “Internet of their technology partners as they design Things” is, and will be, powered on the plat- and build the grid that will provide essen- form grid. tial service for the next century.

The U.S. Department of Homeland Security Bob Rowe (DHS) identifies 16 critical infrastructures in President and CEO, NorthWestern Energy areas such as communications, education, Co-Chair, IEI Management Committee

The utility grid is a national asset.

10 Innovations Across The Grid

“The nation’s power grid is becoming increasingly dependent on renewable energy and is evolving into a more distributed, more decentralized, and more complex grid.” New Energy Resources

he U.S. electric power grid is increasingly integrating new energy resources — both large- Tscale and distributed. Public policies are driving the exponential growth in both renewable energy and distributed energy resources as1 carbon-free resources for generating electricity. Over the past decade, wind- generated electricity has increased 10-fold and now represents about three percent of all of the electricity generated in the United States. Similarly, over the past five years, solar-generated electricity has grown exponentially. As a result, electric utilities nationwide are integrating increasing amounts of large (utility-scale) wind- and solar-generated electricity onto the power grid each year.

At the same time, utilities are beginning to integrate more supply-side distributed energy resources, such as rooftop solar, community solar, microgrids, and energy storage, onto the grid along with the more traditional demand-side resources such as energy efficiency and demand response. As energy resources at the edges of the grid continue to grow, the nation’s power grid is becoming more distributed, more decentralized, and more complex.

13 The case studies in this chapter detail the edges of the grid, and the expectation for development and integration of both continued growth into the future are indi- large-scale and distributed solar, microg- cators of the grid’s evolution. As a result, rids, energy storage, and community solar, utilities are developing new approaches as well as the monitoring, forecasting, and for developing and successfully integrat- resource management that are needed ing a range of new energy resources, as for the successful integration of these well as evaluating, testing, and demon- resources. The examples that are featured strating energy storage projects. The case demonstrate how utilities are: studies in this chapter focus on three key areas — renewable energy development; Utilizing rooftops, utility poles, and landfills/brownfields for large-scale, resource management and integration; and grid-connected solar projects; energy storage. Acquiring distributed resources, such as 1. Renewable Energy Development energy efficiency, demand response, distributed generation, and solar, to meet U.S. utilities are developing both large- anticipated growth in electricity demand; scale and distributed renewable energy Expanding access to solar by develop- resources, as well as integrating variable ing community-solar projects that give renewable resources owned by third-par- all customers the option to purchase ties and customers, while maintaining solar energy; power quality and system reliability.

Using demand response as an ancillary More recently, utilities have started to use service to support renewable energy a variety of approaches for developing integration; community-based solar projects by leasing Using forecasting tools to integrate solar large rooftops for installation of solar arrays; and wind for improved grid operations; directly developing the solar resource in a Integrating energy storage; and community solar garden; and partnering Developing grid-friendly solar photovol- with the military on military bases. taics (PV) plants with voltage regulation, power controls, and ramp-rate controls. 2. Resource Management As large-scale renewable energy and New Energy Resources Trends energy resources at the edges of the The exponential growth in renewable grid continue to grow, utilities are devel- energy over the past decade, the con- oping approaches to manage these tinued growth in energy resources at the resources successfully.

14 Innovations Across The Grid Avista is demonstrating economic dis- Conclusion patch of customer-owned distributed The case studies in this chapter clearly energy resources. demonstrate two things. First, the nation’s Hawaiian Electric developed a solar- power grid is becoming increasingly and wind-integrated forecasting tool dependent on renewable energy and is for short-term renewable energy fore- evolving into a more distributed, more casting to address its large penetration decentralized, and more complex grid. of renewables. Second, the role of electric utilities is both PNM Resources is using the Electric Power to develop renewable resources — both Research Institute’s OpenDSS software large-scale and distributed — as well as to more accurately analyze the impacts to integrate new energy resources into of distributed generation on the grid. the power grid successfully and seam- 3. Energy Storage lessly. This is a continuous, real-time, and evolving process. Several projects are underway to demonstrate the viability of both distributed and utility-scale energy storage. Without a doubt, successful and cost-effective energy storage is transformative for the power sector.

The AES Battery Integration Center, hosted by IPL, is focused on accelerat- ing the adoption of utility-scale energy storage systems. Pacific Gas and Electric Company is testing and demonstrating a variety of grid-scale storage functions, including wholesale market participation and integration of renewable energy resources. Portland General Electric’s Salem Smart Power Project demonstrates storage as a solution for integrating solar PV. Southern California Edison is evaluating storage for large-scale utility projects to improve the flexibility and reliability of the next generation grid.

Chapter 1 – New Energy Resources 15 “Working with Washington State University, Avista has integrated the university’s advanced building energy management system into its distributed energy resource management system, allowing for precise and automated dispatch of customer- owned resources.” NEW ENERGY RESOURCES RENEWABLE ENERGY DEVELOPMENT | RESOURCE MANAGEMENT | ENERGY STORAGE

Avista Utilities Economic Dispatch of Distributed Energy Resources

Technology Project Highlights

Partner(s) 4,000 events dispatched in first eight months to ecobee customer-owned distributed energy resources (DER).

Integral Analytics Four-quadrant value quantification to insure value to utility and each participant is clearly understood Spirae before dispatch of an event. Washington State Predictive scheduling based on four-quadrant value University quantification for automated dispatch of events. Real-time value validation allows for real-time reconciliation of scheduled event and actual transactions per participant.

Chapter 1 – New Energy Resources 17 Project Description

As part of the larger ARRA-funded Pacific consistently being manually overridden by a Northwest Smart Grid Demonstration Proj- building occupant, then the DERMS would ect, Avista implemented a distributed energy learn from this trend and develop more resource management system (DERMS) that accurate asset availability projections. can automate dispatch of customer-owned distributed energy resources, including The BEMS understands the constraints of demand response. Retail customers in Pull- individual assets. The predicted load data, man, Washington that signed on to the proj- predicted asset availability, fixed and vari- ect received a smart thermostat supplied by able power supply costs, and system con- ecobee. The DERMS can adjust the thermo- straints create a real-time four-quadrant stat temperature set points in increments validation algorithm. This algorithm deter- of one-degree with a maximum of four-de- mines the value of dispatching a particular grees. Customers receive $100 per year as asset for the utility and the customer, which incentive for participating, in addition to results in a win-win, win-lose, lose-win, or the savings that accrue from adjusting the lose-lose outcome. Given a parameter for thermostat to a more efficient temperature acceptable and desired outcomes, the sys- set point. The DERMS determines real-time tem automatically schedules assets for dis- energy value for each asset (in this case, the patch. Afterward, the results are reconciled thermostat) to schedule the highest-value with the schedule to insure that the services asset for dispatch in a manual, semi- delivered were accurately assessed. automatic or, fully automatic mode. The system went live in March 2014. As of Working with Washington State University October 2014, more than 1,000 events have (WSU), Avista has integrated an advanced been initiated. What’s unique about this sys- building energy management system tem? First, the forward prediction of asset (BEMS) with the DERMS. The BEMS is com- capacity is sufficiently accurate for dispatch. posed of five asset tiers that can be- dis Second, customers have complete control patched to either reduce load or generate of the BEMS. And third, the real-time value energy. The five tiers include air handlers quantification allows both the utility and the within 39 buildings (tier 1), nine chillers (tier customer to understand any gain or loss. 2), two natural gas generators (tiers 3 & 4), and one diesel generator (tier 5). The BEMS Thanks to the flexibility of the BEMS, cus- provides availability and capacity of each tomers are also realizing tangible savings tier, every 5 minutes, to the DERMS. The independent of the DERMS. WSU is using DERMS creates auto-correcting forward- $150,000 less electricity per month. And load-projections and asset availability based residential thermostat customers have on historical data. For example, if the call to saved between 4.5 percent and 9.0 percent shed load via the air handling system was in reduced energy consumption. Finally,

18 Innovations Across The Grid A sample four-quadrant value validation data from both WSU and thermostat cus- plot for various distributed resources. tomer systems can be used to identify further cost-effective efficiency opportunities. Avista used this diagnostic capability to identify two thermostat participants that had malfunctioning heat pumps. Once the repairs were made, these customers saved an average of $200 per month.

Avista is assessing the opportunity to use the DERMS to leverage customer-owned assets across the service territory. The initial focus is customer standby generation that can be leveraged as non-spin reserves. Given the anticipated growth of renewable generation and distributed energy resources, future areas of focus include industrial and commercial customer assets that can be leveraged to balance localized capacity, peak, and operational needs with the intent to offset capital investment.

Project Contact Company Description

Curtis Kirkeby, P.E. Avista Utilities is involved in the production, Senior Electrical Engineer II – transmission, and distribution of energy. Technology Strategy We provide energy services and electric- [email protected] ity to 365,000 customers and natural gas 509.495.4763 to 325,000 customers in a service territory that covers 30,000 square miles in eastern Washington, northern Idaho, and parts of southern and eastern Oregon, with a population of 1.5 million. Avista Utilities is an operating division of Avista Corp. (NYSE: AVA). For more information, please visit www.avistautilities.com.

Chapter 1 – New Energy Resources 19 “Dominion’s Kitty Hawk office is continuing a long tradition of research and development on the North Carolina coast with the construction of a microgrid research project.” NEW ENERGY RESOURCES RENEWABLE ENERGY DEVELOPMENT | RESOURCE MANAGEMENT | ENERGY STORAGE

Dominion North Carolina Power North Carolina Microgrid Demonstration and Research Project

Technology Project Highlights

Partner(s) Project will demonstrate and assess the installation, Aeolos operation, and integration of wind turbines, a solar PV array, an integrated battery, a fuel cell, and an existing UGE diesel generator into a facility-level microgrid. Windspire Four unique wind turbine systems will generate up to 13 kW and enable performance assessment of various turbine configurations. Solar array of 24 ground-mounted 250 watt PV cells will produce up to 6 kW of power and 7 MWh of energy annually. Integrated battery array of 53 individual 25 KW lithium-ion cells with a storage capacity of 75 kWh.

Chapter 1 – New Energy Resources 21 Project Description

In early 2012, Dominion North Carolina The solar array consists of 24 ground- Power started the process of scoping a mounted 250 watt photovoltaic cells capa- research project that would study the behav- ble of producing up to 6 kW of DC power ior and performance of integrating several and over 7,000 kWh annually at an upfront renewable generators with an existing diesel cost of approximately $35,000. The proj- generator to serve part of the building load ect will also include 53 25 kW lithium-ion for the utility’s office facility in Kitty Hawk. batteries with a storage capacity of 75 kWh The project, commissioned on July 25, 2014, and protective equipment and controls that consists of installing four wind turbines, a allow for the charging and discharging of a solar-power array, and an integrated battery battery storage system. in a microgrid as part of a three-year demon- The project will not be tied directly to the stration project for renewable generation. grid. Energy harnessed at the site will reduce the amount of grid electricity used at The four wind turbines, each of which will be the Kitty Hawk district office. of a different design, manufacture, height, and configuration, will collectively be capa- In 2015, Dominion plans to complete the ble of generating over 13 kW. Each turbine’s addition of a 3 kW fuel cell to the project. An unique cut-in wind speeds, blade configu- engineering study is currently underway. As ration, capacity factor, and annual energy part of Dominion’s renewable energy efforts, production capability will allow the utility the research project will open the possibility to assess the relative performance and effi- of developing similar technologies at other ciency of these turbines. company locations.

Project Contact Company Description

Tim Buckley Dominion North Carolina Power is a subsidi- Director, Alternative Energy T&D ary of Dominion (NYSE: D), one of the nation's Technologies largest producers and transporters of energy, [email protected] with a portfolio of approximately 27,500 mega- 804.819.2821 watts of generation. Dominion operates one of the nation's largest natural gas storage systems and serves retail energy customers in 15 states. For more information about Dominion, visit the company's website at www.dom.com.

22 Innovations Across The Grid

“The Solar Partnership Program allows Dominion Virginia Power to gain experience in operating distributed solar generation and also offers unique partner opportunities with customers.” NEW ENERGY RESOURCES RENEWABLE ENERGY DEVELOPMENT | RESOURCE MANAGEMENT | ENERGY STORAGE

Dominion Virginia Power Solar Partnership Program

Technology Project Highlights

Partner(s) Launched in late 2012, Dominion Virginia Power’s Antares Group, Inc. Solar Partnership Program will construct and operate up to 30 MW of company-owned solar facilities on Aquion Energy leased rooftops, public, and commercial properties. ViZn Energy The program will study impacts and assess benefits of distributed solar (PV) generation on heavily loaded, lightly loaded, and conservation voltage reduction circuits. Community-based distributed solar model creates opportunities for community engagement and education. 6 MW (DC) in service or in final stages of completion by year-end 2014.

Chapter 1 – New Energy Resources 25 Project Description

Launched in late 2012 in support of Chapter 771 of the 2011 Virginia Acts of Assembly, the Solar Partnership Program is a multi-year pilot program designed to expand Domin- ion Virginia Power’s (DVP's) understanding of community-based solar energy. The study will assess the impact and benefits of solar power while supporting and encourag- ing solar energy growth in Virginia. Through Solar Partnership Installation at Old the program, DVP will construct and oper- Dominion University’s Student Center. ate up to 30 megawatts of company-owned solar facilities on leased rooftops or on the will provide train-the-trainer opportunities to grounds of commercial businesses and pub- expand local faculty and student knowledge lic properties. When fully implemented, the on the operation of solar-powered systems. program will generate enough power for up DVP is also planning to study electrical stor- to 7,500 homes. age at one Solar Partnership Program site as renewable generation and its associ- The Solar Partnership Program allows DVP ated technologies become more prevalent to gain experience in operating distributed in Virginia. solar generation while also offering unique opportunities to partner with eligible busi- Over the course of the program, DVP plans ness customers with suitable facilities for to partner with twenty to thirty commercial, solar installation. For the purposes of the industrial, and academic customers. Each of program, DVP has identified two host-site these selected sites must meet one or more participant groups. The majority will con- of the study objectives to participate in the sist of larger sites which can accommodate program. DVP has identified four key study distributed solar generation greater than objectives for the Solar Partnership Program. 500 kW. The company will also partner with Determine the effects of solar distributed approximately four smaller sites capable of generation on circuit loading, analyze accommodating less than 500 kW, located the peak demand reduction benefits to on public or community buildings/sites for the distribution system, and collect the demonstration projects. These smaller instal- necessary data to develop a distributed lations provide opportunities for customer solar generation load model for the com- outreach and education on solar technolo- pany’s distribution planning process. gies. An educational program will coincide Quantify the reduction in line losses with solar installations on secondary-level from distributed solar generation at vari- academic facilities throughout the state and ous points on the distribution system.

26 Innovations Across The Grid Study the operational impact of “high model for each site and do circuit assess- saturation” solar distributed generation ments at each location for load reduction, on a single circuit. voltage profile, loss reduction, and other Assess the potential for solar distributed circuit variables. With a sufficient number generation to improve conservation of solar sites, DVP plans to forecast future voltage reduction (CVR) performance. solar generation impacts at the system level for the four study objectives. Solar Partnership Program projects utilize three key categories of circuits in order As of September 2014, Dominion has com- to study the impact of solar generation pleted two projects, including a 521 kW on the electric distribution grid. Catego- (DC) system on a heavily-loaded circuit ries include: heavily loaded circuits, lightly at Canon Environmental Technologies in loaded circuits, and CVR circuits. Using Gloucester, VA (which is currently the larg- sites selected on targeted circuits allows est rooftop solar system in Virginia) and the DVP to determine the effects of distributed first demonstration site at Old Dominion solar generation on circuit loading, ana- University in Norfolk, VA. A project located lyze the peak demand reduction effects at the Prologis Concord Distribution Center to the distribution system, and collect the in Sterling, VA was announced in July and necessary data to develop a distributed will exceed 800 kW on two adjacent roof- solar generation load model for the com- tops. Additional projects are under con- pany’s distribution planning process. DVP struction with a total of 6 MW (DC) expected will collect solar photovoltaic (PV) data to to be in service or in the final stages of com- develop a PV capacity and energy report pletion by year-end 2014.

Project Contact Company Description

Mike Gurganus Dominion Virginia Power is a subsidiary of Project Manager Dominion (NYSE: D), one of the nation's [email protected] largest producers and transporters of 804.771.3376 energy, with a portfolio of approximately 27,500 megawatts of generation. Domin- ion operates one of the nation's largest natural gas storage systems and serves retail energy customers in 15 states. For more information about Dominion, visit the company's website at www.dom.com.

Chapter 1 – New Energy Resources 27 “Georgia Power is partnering with the U.S. Army to bring 90 MW of solar generation to Fort Benning, Fort Gordon, and Fort Stewart by the end of 2016.” NEW ENERGY RESOURCES RENEWABLE ENERGY DEVELOPMENT | RESOURCE MANAGEMENT | ENERGY STORAGE

Georgia Power Utility-Scale and Distributed Solar Implementation

Project Highlights

Over 800 MW of voluntarily developed, utility-scale solar, the largest solar portfolio of any investor-owned utililty in the U.S. Three 30 MW U.S. Army solar projects to be completed by end of 2016. Two rate options for eligible net-metered customer- generated solar power. Customer solar decision tools available online.

Chapter 1 – New Energy Resources 29 Project Description

Georgia Power has a long history of innova- The PSC recently approved procurement of tion including real time pricing, solar energy 525 MW of additional solar capacity as part research, and support for the development of Georgia Power’s 2013 IRP: 425 MW of of the state’s solar industry. Georgia Power’s utility scale and 100 MW of distributed gen- strategy towards developing solar within eration. This 525 MW segment is known as the state has been implemented under the GPASI Prime. The GPASI and GPASI Prime regulatory construct of Georgia’s statutory utility scale program pricing is based on integrated resource planning (IRP) pro- competitively bid proposals, whereas dis- cess. This IRP process results in meeting tributed generation PPAs will pay prices at customers’ energy needs in a reliable and or below the current projections of long economic manner. term avoided costs of the company.

The first large solar program Georgia Power The PSC recently approved Georgia Pow- implemented was the Large Scale Solar pro- er’s announcement to partner with the U.S. gram, approved by the public service com- Army to bring 90 MW of solar generation to mission (PSC) in 2011 to purchase up to 50 U.S. Army bases in Georgia. Scheduled to MW of solar power by 2015 with a 30 MW be completed by the end of 2016, the Geor- project cap. Georgia Power signed 20-year gia Power owned facilities are expected to power purchase agreements in December be the largest solar generation installations 2011 for 49 MW of solar energy with two operating on any U.S. military base. The 30 developers in Georgia. The additional 1 MW facilities at Fort Stewart, Fort Benning, MW was added shortly thereafter. The price and Fort Gordon will be brought online at or Georgia Power pays for the solar energy was below the projections of long term avoided developed using the company's long-term cost; and bring the Army nine percent closer avoided energy cost plus a capacity credit to its commitment to President Obama to based on the operational characteristics of deploy one gigawatt of renewable energy solar energy. by 2025.

In late 2012, the PSC approved the Geor- Georgia Power customers who generate gia Power Advanced Solar Initiative (GPASI). their own solar electricity have the option This initiative added to the existing Large to sell some or all of that electricity to Geor- Scale Solar initiative, creating the largest gia Power. Customer solar generators are voluntarily developed solar portfolio of any eligible to sell their electricity as a Quali- investor-owned utility. Under GPASI, Geor- fied Facility (QF), under the Renewable & gia Power will add 210 MW of solar capacity Non-renewable Tariff (RNR), or under the in long-term PPAs through two efforts – the Solar Purchase Tariff (SP) dependent upon Utility Scale Program (120 MW) and the Dis- the generating facility’s size. Georgia Power tributed Generation Program (90 MW). will purchase energy from solar generating

30 Innovations Across The Grid facilities as a QF or through the RNR tariff can visit the Georgia Power website to learn at the company's solar avoided cost. The how solar power works, the cost and poten- SP rate is used to supply the Green Energy tial savings, and important factors influ- Program. A price of 17 cents per kWh was encing solar production. Another valuable set several years ago for the SP rate to spur resource for customers is the Solar Consul- the market and has been such a success that tants located in every region in Georgia. there is a waitlist. These Georgia Power employees are energy Georgia Power is committed to providing experts and are there to provide answers to the tools customers need to make informed customers’ questions about solar power or decisions about solar power. Customers other energy related needs.

Project Contact Company Description

Audrey Gies Georgia Power is the largest subsidiary of Renewable Energy Planning Analyst Southern Company (NYSE: SO), one of [email protected] the nation's largest generators of electric- 404.506.6004 ity. Value, reliability, customer service, and stewardship are the cornerstones of the company's promise to 2.4 million customers in all but four of Georgia's 159 counties. Committed to delivering clean, safe, reliable, and affordable energy at rates below the national average, Georgia Power maintains a diverse, innovative generation mix that includes nuclear, 21st century coal and natural gas, as well as renewables such as solar, hydroelectric, and wind. For more information, visit www.GeorgiaPower.com and connect with the company at Facebook.com/GeorgiaPower and Twitter.com/GeorgiaPower.

Chapter 1 – New Energy Resources 31 “As Germany continues to increase the share of renewable energy over the coming years, possibly reaching upward of 50 percent by 2030, demand response provides transmission system operators with a tool to help integrate renewables and manage the grid.” NEW ENERGY RESOURCES RENEWABLE ENERGY DEVELOPMENT | RESOURCE MANAGEMENT | ENERGY STORAGE

German Transmission System Operators Amprion & TenneT Demand Response as Ancillary Service in Germany

Technology Project Highlights

Partner(s) Germany currently has 88 GW of intermittent renew- EnerNOC able energy resources (RES), often representing more than 30 percent of capacity, creating gigawatt-order fluctuations in generation. Bi-directional demand response has been successfully integrated in the German market, providing transmission system operators (TSOs) with secondary control reserve capacity (SRL) and tertiary or minute reserve (MRL). SRL and MRL have been successfully delivered simul- taneously to stabilize the grid and to help integrate intermittent renewable resources. Advanced demand management technology captures sub-minute meter data and makes data available in real-time to support reliable, fast-response resource delivery.

Chapter 1 – New Energy Resources 33 Project Description

In many energy markets in Europe – as well By enacting controlled demand-side adjust- as in some U.S. markets – increasing shares ments, German TSOs have new tools and of fluctuating renewable energy resources possibilities for grid stability and manage- create the need for flexible capacity to bal- ment. In the U.S. and Canada, DR in non-reg- ance the grid. Intelligent aggregation of ulation reserves typically focuses on curtail- individual demand-side resources can pro- ment, providing synch reserves, and under vide a reliable source of capacity. Develop- frequency load shedding. Despite a num- ments in demand management technology ber of existing regulatory challenges, bi-di- create demand response (DR) performance rectional demand response has successfully levels that equal or exceed that of genera- been integrated in the German power mar- tors. DR has been recognized in Europe as ket through EnerNOC’s sophisticated real- an important approach to stabilize the grid time technology, providing TSOs with sec- and integrate intermittent renewable energy ondary control reserve capacity (SRL) and sources (RES). The recently published Euro- tertiary or minute reserve (MRL). pean Commission’s Energy Efficiency Direc- Since early 2014, EnerNOC, via Entelios AG, tive outlines clear and specific requirements has been demonstrating how both SRL and for EU Member States to encourage DR pro- MRL are successfully delivered simultane- grams. And European transmission system ously to stabilize the grid and to help inte- operators (TSOs) increasingly welcome the grate intermittent RES. EnerNOC’s archi- participation of DR as a grid-balancing ancil- tecture enables DR response times of less lary service in their reserve programs. than five minutes and delivery according to a dynamic, real-time signal from the TSO. DR as an ancillary service is already beyond EnerNOC has been providing aggregated the pilot phase and in full-scale implemen- DR resources to German TSOs specifically, tation in Europe. The German market in and European TSOs generally, employing particular offers an interesting look at how demand management technology with the that country’s drive to transform its genera- capability to aggregate loads, on-site gen- tion mix towards renewables is creating new eration, and industrial process storage to opportunities for DR to become an essential capture sub-minute meter data and make part of the grid. High penetration of inter- that data available in real-time to support mittent RES and the market’s requirement reliable, fast-response resource delivery. to prioritize dispatch of RES have created a dynamic grid in Germany, with large fluc- Simultaneous deployment of both SRL and tuations in supply, making supply-side- MRL DR resources is important. Germany only adjustments difficult and expensive currently has more than 80 GW of RES to implement. installed on its system, often representing

34 Innovations Across The Grid much more than 30 percent of system of 50 percent by 2030 — these fluctuations capacity. There are hours and days where are projected to require the ability to ramp the amount of wind and solar power on up and ramp down baseload power plants the system almost exceeds the amount at a rate of 12 GW in a quarter hour. Facing of power the entire country can use. As a more frequent, steeper, and higher ramps, result, TSOs must manage gigawatt-order DR provides TSOs with a proven tool to help fluctuations in generation. As Germany con- effectively integrate renewables and manage the grid. tinues to increase the share of renewables over the coming years — reaching upward

Project Contact Company Description

Tom Schulz Amprion operates the largest extra-high Senior Director, European Operations voltage transmission system in Germany. EnerNOC The key task of its some 900 employees is [email protected] to transmit electricity at competitive prices +(49) 89552 99680 safely and reliably any time. The system connects power plants with the load cen- tres and at the same time is an important pillar of the German and European transmission grid. Our transmission system is an important hub for electricity trading between Northern and Southern as well as Eastern and Western Europe. TenneT is a leading European electricity transmission system operator (TSO) in the Netherlands and in a large part of Germany. We ensure a reliable and uninterrupted supply of electricity for the 41 million end-users in the markets we serve. We aim to meet our stakeholders' needs by being responsible, engaged, and connected.

Chapter 1 – New Energy Resources 35 “Routinely operating with 40 percent or more penetration of renewables on the grid, renewable forecasting is a strategy for Hawaiian Electric to 'see and manage' non- dispatchable renewable generation variability.” NEW ENERGY RESOURCES RENEWABLE ENERGY DEVELOPMENT | RESOURCE MANAGEMENT | ENERGY STORAGE

Hawaiian Electric Company Solar and Wind Integrated Forecasting Tool (SWIFT) for Grid Operations

Technology Project Highlights

Partner(s) First utility to operationalize a solar and wind inte- AWS Truepower grated forecasting tool (SWIFT) and targeted network of over 50 remote sensors optimized for renewable energy forecasting. Consistent bird’s-eye view of wind and solar conditions across 5 islands. 24/7 access to near real-time delivery of 15 minute wind and solar production look-ahead forecasts. Provides CIM compliant, real-time probabilistic forecasts for short term (next 6 hours) and long-term (up to next 48 hours) for EMS integration. Integrates physics-based numerical weather prediction, statistical prediction models, local sensor data, and satellite imagery to deliver comprehensive system visibility.

Chapter 1 – New Energy Resources 37 Project Description

Hawai‘i is blessed with an abundance and Improving physics-based numerical diversity of renewable resources. With weather prediction (NWP) and terrain strong clean energy policies and favor- models for Hawai‘i’s complex terrain and able renewable production incentives, the unique tropical marine environments; Hawaiian Electric Companies are now con- Deploying and maintaining a local sen- tending with penetrations of renewable sor network sited to specifically gather generation, including distributed resources, wind and solar resource information that are among the highest in the country. (rather than airport weather condition) to With over 300 MW of nameplate distributed improve renewable forecasts and support photovoltaic (PV) solar generation installed field verification studies for Hawai'i; and on O‘ahu, the capacity of behind-the-meter Operationalizing a “15-minute look- PV systems is now greater than the largest ahead” capability and probabilistic fore- central station generating unit. casts for both wind and solar into utility Routinely operating with 40 percent or more operations and planning. penetration of renewables on the grid from The solar and wind integrated forecasting wind, geothermal, hydro, biomass, and solar, tool (SWIFT) currently uses a network of system operators faced real-time challenges more than 50 state-of-the-art, remote mon- balancing the “ups and “downs” of variable itoring sensors specifically sited to provide renewable energy generation. To address maximum benefit for short-term renewable these challenges, system operators on the energy forecasts within our service terri- Island of Hawai‘i identified renewable fore- tory. SWIFT is providing utility staff with casting as a strategy to “see and manage” valuable information on prevailing wind non-dispatchable renewable generation and solar conditions through both visual- variability on islanded systems without the ization tools and data. Graphical displays backup capabilities of an interconnected present an overall, bird’s-eye view of wind mainland grid. Hawaiian Electric is work- and solar conditions over all the islands ing with AWS Truepower, a New York-based and detailed energy production forecasts renewable energy development consultant for specific facilities or aggregates of those and forecasting service provider, to custom- ize an ensemble of renewable energy fore- facilities within the service territory. Phys- casting methods and observational target- ics-based models use information from the ing techniques providing reliable short-term National Weather Service (“NWS”), GOES renewable energy forecast information that satellite imagery for cloud prediction, as can provide visibility to system operators to well as data from the network of targeted better manage non-dispatchable renewable wind and solar sensors deployed across generating resources. A multi-phase project the islands to correct for local weather and over the past several years focused on: terrain conditions.

38 Innovations Across The Grid Bird’s eye view of integrated wind (top) and solar (bottom) information comparing (a) normal trade conditions to (b) variable conditions for wind and solar. (a) (b)

When fully integrated into the EMS, SWIFT data on speed, direction, and energy, and will provide system operators the ability to are provided for specific wind facilities at quickly assess and be aware of prevailing 80 meter elevation, the typical hub height wind and solar conditions and prior per- of modern wind turbines. Real-time solar formance trends. Key features of SWIFT irradiance forecasts and energy production include the 15 minute “look-ahead” fore- for both utility-scale solar facilities and roof- casts for the next 6 hours (short-term) and top distributed PV resources are accounted up to 48 hours (long-term) used in oper- for in forecasts to inform real-time opera- ational planning. Wind forecasts include tions and dispatch decisions.

Chapter 1 – New Energy Resources 39 System operators found tremendous value award, the Hawaiian Electric Companies in SWIFT during recent hurricanes Iselle are working with AWS Truepower, EMS ven- and Julio. SWIFT forecasts provided real- dors including Siemens and Alstom, and time updates tracking not only the location data integrators Referentia Systems Inc. but also the duration of the storm. and DNV GL to enhance operational aware-

Going forward, the project will focus on ness by combining information on variable training staff to use and seamlessly inte- renewable generation with associated grid grate forecast information into operational conditions. These efforts will provide new tools including the energy management tools for real-time decision making and system (EMS). As part of a U.S. DOE Sunshot smarter grid operations.

SWIFT probabilistic wind and solar forecast displays. The probabilistic forecast contains (A) the most probable forecast for the next 6 hours and 4 confidence levels (dotted lines); (B) a probability distribution in the forecast; (C) probable ramp rate and MW threshold levels (i.e. probability that the ramp rate will exceed the specified threshold); and (D) past 6 hours historical production for reference.

40 Innovations Across The Grid Project Contact Company Description

Dora Nakafuji Hawaiian Electric and its subsidiaries, Maui Director of Renewable Energy Planning Electric and Hawai‘i Electric Light, serve the [email protected] islands of O‘ahu, Maui, Lānaʻi, Moloka’i and 808.543.7597 (office) Hawai‘i, home to 95 percent of the popula- 808.220.2818 (cell) tion of Hawai‘i. Hawaiian Electric’s parent company is Hawaiian Electric Industries (NYSE: HE). In a changing world, the Hawaiian Elec- tric Companies are taking the lead in adding renewable energy and developing energy solutions for its customers to achieve a clean energy future for Hawai‘i. For more information, visit www.hawaiianelectric.com

Chapter 1 – New Energy Resources 41 “In just over one year, IPL has gained experience in the deployment and operation of six different energy storage systems.” NEW ENERGY RESOURCES RENEWABLE ENERGY DEVELOPMENT | RESOURCE MANAGEMENT | ENERGY STORAGE

Indianapolis Power & Light Company AES Battery Integration Center

Technology Project Highlights

Partner(s) Indianapolis Power & Light Company's (IPL’s) AES AES Energy Storage Battery Integration Center provides a platform for the utility to accelerate the adoption and implementation of energy storage systems. Developed a qualification process to validate rapid, large-scale deployment capabilities of battery and power control systems from multiple manufacturers. Since the center’s 2013 launch, four energy storage systems have been qualified, with an additional two systems to be qualified in 2014 and eight to be qualified in 2015. Validates the Advancion™ energy storage array aggregation controls, targeting 99.9 percent equiva- lent availability factor.

Chapter 1 – New Energy Resources 43 Project Description

In late 2007, Indianapolis Power and Light DCS allows for safe multi-operator man- (IPL) hosted the world’s first utility-scale agement of single or distributed arrays or lithium–ion based energy storage system, fleet of arrays. Maintenance teams have Carina, a two megawatt unit which operated appropriate local access to manual opera- at an IPL substation, proving the viability of tions modes and critical functions, like lock- battery-based energy storage. IPL continues out-tag-out, while operations teams retain to be a leader in energy storage by hosting supervisory access from central locations. the AES Battery Integration Center. Com- The Advancion DCS incorporates a Market missioned in September 2013, the mission Dispatch Unit, which provides operational of the center is to accelerate the adoption rules and algorithms tuned to comply with of utility-scale energy storage systems (i.e., all major markets and control areas. hundreds of megawatts). It does so by qual- In less than one year since its commission- ifying battery and power conversion systems ing, the AES Battery Integration Center com- to the Advancion™ standard while serving pleted the qualification of four energy stor- as a testing and validation facility for the age systems, with two additional systems Advancion Digital Control System (DCS). due to be completed by the end of 2014 The Advancion architecture allows large, and seven more in queue for 2015. Each multi-hundred megawatt arrays to be built qualified system, either a battery system or by replicating smaller units of storage. An a power conversion system, has been certi- Advancion array is built by replicating the fied for use in an Advancion array. Certified smaller units (nodes) until the desired array battery and power conversion systems are capacity is reached. These arrayed nodes interoperable and interchangeable. combine to provide unparalleled reliability, In the development of the center, IPL has surpassing the availability of most conven- gained first hand experience in design tional power plants. While a typical power and operation of energy storage systems plant may have an availability factor of 95 through oversight of facilities engineer- percent and be considered an excellent per- ing, development of safety procedures, fire former, this translates to 18 days of downtime detection and prevention systems specifica- per year; arrayed storage can achieve data- tion, environmental controls monitoring, and center-like availability, surpassing 99 per- relay protection and metering configuration. cent to 99.9 percent availability factor with Few utilities have gained this valuable expe- fewer than nine hours of downtime per year. rience with multiple systems vendors. In just The Advancion DCS is a tiered, stan- over one year of operations, IPL has gained dards-based control system which manages experience in the deployment and opera- an array, its nodes, and its components. The tion of six different energy storage systems.

44 Innovations Across The Grid The integration center experience has multiple reliability projects for commercial prompted and emboldened IPL to investi- and industrial customers, distribution feeder gate the development of multiple energy stability support in critical locations, and storage projects to provide a variety of generator capacity enhancement. services on a cost competitive basis. Proj- ects currently under consideration include

Project Contact Company Description

Brett Galura Indianapolis Power & Light Company (IPL) VP Solution Development is an electric generation, transmission, and AES Energy Storage distribution company and part of The AES [email protected] Corporation, a Fortune 200 global power 571.228.8228 company with operations in 20 countries over five continents. IPL provides retail electric service to more than 470,000 residential, commercial, and industrial customers in Indianapolis, as well as portions of other Central Indiana communities surrounding Marion County. During its long history, IPL has supplied its customers with some of the lowest-cost, most reliable power in the country. For more information about the company, visit www.IPLpower.com.

Chapter 1 – New Energy Resources 45 “IPL has the fifth largest per capita concentration of solar of U.S. cities, with approximately 68 MW of DG connected to its grid, and an additional 30 MW expected to be interconnected in 2015.” NEW ENERGY RESOURCES RENEWABLE ENERGY DEVELOPMENT | RESOURCE MANAGEMENT | ENERGY STORAGE

Indianapolis Power & Light Company Distributed Solar Generation Integration

Technology Project Highlights

Partner(s) Indianapolis Power & Light Company (IPL) is integrat- ABB ing 100 MW of distributed generation (DG) at 40 sites under contract ranging from 10 kW – 10 MW. Advanced Energy 27 sites are fully operational, representing 68 MW of GE installed DG with an additional 30 MW coming online Schneider Electric in early 2015. System protection requirements and coordination on SMA 13 kV. Solectria Renewables IPL developed communication/telemetry standard integrates site-specific energy production and voltage data to operations control center.

Chapter 1 – New Energy Resources 47 Project Description

Indianapolis Power & Light Company (IPL) Based on the proposed location and feeder has long been a proponent of developing interconnection, specific engineering site renewable energy resources for its cus- studies were performed to determine if the tomers. IPL was the first Midwestern utility distribution system could reliably support to implement a feed-in-tariff for renewable each DG resource without impacting the ser- fuels including solar, wind, and biomass. In vice reliability for existing customers. Spe- 2010, IPL received permission to offer a feed- cifically, feeder loading, protection equip- in-tariff known as the Renewable Energy ment, power factor impacts, fault currents, Production (REP) rate to foster production and possible voltage flicker were consid- of renewable energy from projects up to ered. IPL determined if there was a need for 10 MW in size. Under the REP rate, IPL pur- line extensions to support the interconnec- chases the output from the facilities based tion along with specialty equipment, known on fixed rates for 15 to 30 year periods. as “static volt-ampere reactive” equipment, or a power quality relay/meter with remote Customers and developers proposed alarming capabilities to mitigate potential renewable projects to IPL. Based on a flicker. Projects that were 500 kW–2 MW and queuing process and a reverse auction, IPL connected at a secondary voltage required selected 40 projects totaling approximately a remote shunt-trip disconnect switch for IPL 100 MW of renewable energy for its REP to safely work on distribution lines without rate offering. The projects were classified in any chance of DG backfeed. Projects with three tiers: less than 10 kW; 10 kW–2 MW; nameplate capability over 2 MW and con- and over 2 MW. nected at primary voltage required an automated recloser, which ties into the IPL smart Integrating this amount of intermittent DG grid network. Detailed information about proved quite challenging and required new the energy produced and site amperages processes to be established to maintain are transmitted every ten seconds to the IPL excellent power quality and system reli- operations control centers through two-way ability. Employees in multiple areas of IPL communicating equipment designed in IPL’s worked closely to develop efficient proce- DG communication/telemetry standard. dures and successfully interconnect the DG sites. Engineering experts in substation dis- To manage the diversity across the sites, tribution and relaying, metering personnel, IPL developed a DG solar facility commis- power quality technicians, communications sioning guide and site-specific operating specialists, operations staff, drafters, and procedures that are agreed upon by the a project coordinator met weekly to follow customer/developer and IPL prior to the each project milestone. issuance of a formal permission to operate

48 Innovations Across The Grid letter to ensure all the requirements are met. has helped IPL understand DG grid impacts. To date, IPL has successfully integrated ten The IPL team has helped several other util- different types of inverters, each with spe- ities plan how they will interconnect large- cific characteristics and system impacts. scale DG on their systems.

IPL has the fifth largest per capita concentra- Solar array at Indianapolis International tion of solar of U.S. cities to date with approx- Airport. Image courtesy of IND Solar Farm. imately 68 MW of DG connected to its grid. An additional 30 MW of DG is expected to be interconnected in the first half of 2015. Real time DG output is used to assess circuit loading if switching is required for maintenance or in response to emergencies and to calculate IPL’s daily load and generation forecasts. Analysis of changes on cloudy days and when snow covers existing panels

Project Contact Company Description

James Sadtler Indianapolis Power & Light Company (IPL) Director, Transmission Field Operations is an electric generation, transmission, and [email protected] distribution company and part of The AES 317.261.8965 Corporation, a Fortune 200 global power company with operations in 20 countries over five continents. IPL provides retail electric service to more than 470,000 residential, commercial, and industrial customers in Indianapolis, as well as portions of other Central Indiana communities surrounding Marion County. During its long history, IPL has supplied its customers with some of the lowest-cost, most reliable power in the country. For more information about the company, visit www.IPLpower.com.

Chapter 1 – New Energy Resources 49 “Development of utility- scale PV plants with grid- friendly features such as voltage regulation, active power controls, ramp- rate controls, fault ride- through, and frequency control is critical to grid stability and reliability.” NEW ENERGY RESOURCES RENEWABLE ENERGY DEVELOPMENT | RESOURCE MANAGEMENT | ENERGY STORAGE

MidAmerican Renewables Grid-Friendly Utility-Scale PV Plant

Technology Project Highlights

Partner(s) 290 MW solar PV plant connected to 500 kV transmis- First Solar sion line. Regulates voltage, power factor, and/or frequency for major transmission line. Intersolar North America’s 2014 North America Solar Project of the Year. Controls active and reactive power, ramp rates, and curtails power when necessary. Minimizes impact of cloud cover.

Chapter 1 – New Energy Resources 51 Project Description

One of the world’s largest completed and operating utility-scale PV plants to date, the 290 MW Agua Caliente Solar Plant revolu- tionizes how solar integrates with the power grid. Agua Caliente, located approximately 65 miles outside of Yuma, Arizona, is one of the first PV plants connected to a 500 kV transmission line. First Solar designed and constructed the power plant and continues to operate and maintain the facility for own- ers NRG Energy and MidAmerican Renew- ables. Pacific Gas & Electric Company has contracted to purchase the project’s output for 25 years.

The impact of PV generation on grid reliability and stability is becoming increasingly critical, especially as solar generation grows to become a significant contributor to the grid. Deploying large utility-scale PV plants of hundreds of MW in size requires the development of “grid friendly” features such as plant-level voltage regulation, active power controls, ramp-rate controls, fault ride-through, frequency control, and others.

The impact of integrating rapidly growing PV generation on power systems, especially Time scale of grid operations. as it relates to grid reliability and stability, can be broadly categorized into three areas When compared to the inherent electrome- based on the time scale of grid operation. chanical dynamics of synchronous genera- The first is related to the PV plant’s response tion, PV generation responds to power elec- to grid disturbances on the sub-seconds to tronics quite differently. In the case of Agua minutes time scale. The second is related to Caliente, a plant-level controller, designed load balancing, which is on the order of sub- to make the PV plant behave as a single hours to days. The third is related to power large generator, is able to coordinate 500 systems planning, which is on the order of individual inverters’ output to regulate the years to decades. total plant’s real and reactive power output

52 Innovations Across The Grid and voltage. Similar to a large generator, Agua Caliente plant to support maintenance plant operators can use a supervisory con- of the line voltage. By changing the mode trol and data acquisition (SCADA) human- of the PV plant operation, the line voltage to-machine interface to provide desired was stabilized, and when the PV plant went controller settings. off-line at sunset the line voltage started to fluctuate again. The Agua Caliente PV plant interconnects to a 500 kV transmission line that has several This event provides some key lessons. First, other generation plants on the line, includ- the ability to operate the plant in various ing the Palo Verde Nuclear Generating Sta- modes is critical to grid stability and reliabil- tion, which is the largest power plant in the ity. Second, even though features such as voltage regulation, active power controls, United States, with a capacity of over 3.7 ramp-rate controls, fault ride through, and GW. During normal operations, the PV plant frequency control may not be mandated, maintains unity power factor at the point of the value of PV plants with these features interconnection while the active power fol- to grid operators is evident when called lows the typical PV generation profile. upon to support the grid. In summary, the On March 21, 2014, the transmission line development of “grid-friendly” PV plants is between the Palo Verde generating station improving the reliability and stability of the and the Hassayampa substation was taken grid, and the growing sophistication and out of service. To avoid substantial devi- accuracy of short-term solar generation ation to the line voltage, the grid operator forecasts are facilitating efficient and reliable employed the “grid-friendly” features of the system operations.

Agua Caliente PV plant interconnects to 500 kV transmission line in Western Arizona.

Chapter 1 – New Energy Resources 53 Agua Caliente PV plant supports maintenance of line voltage on March 21,2014.

Project Contact Company Description

Julie White MidAmerican Renewables, LLC owns and Director, Communications operates wind, geothermal, solar and hydro [email protected] projects in the unregulated renewables mar- 515.281.2785 ket. MidAmerican Renewables is headquartered in Des Moines, Iowa, and has offices in Phoenix, Ariz., and Calipatria, Calif. Infor- mation about MidAmerican Renewables is available on the company’s website at www.midamericanrenewablesllc.com.

54 Innovations Across The Grid

“Availability of solar increases the extent to which the battery can ride through an outage, and if assumptions prove correct, the grid-supported microgrid will reduce customer service interruptions.” NEW ENERGY RESOURCES RENEWABLE ENERGY DEVELOPMENT | RESOURCE MANAGEMENT | ENERGY STORAGE

NorthWestern Energy Grid-Supported Microgrid

Technology Project Highlights

Partner(s) NorthWestern Energy is testing new technology to improve electric reliability through integration of grid-supported backup power, renewable generation, and battery energy storage. The project will determine at what price point a “grid- supported microgrid” becomes economically viable. The project will provide potential alternatives to improve rural reliability and develop an economic model for future scalability.

Chapter 1 – New Energy Resources 57 Project Description

NorthWestern Energy is siting a 40 kW pho- In the event of a fault on the 14.4 kV line tovoltaic (PV) system with battery backup on supporting the area, the microgrid enters a poorly performing rural circuit tap near “island” mode, and the battery provides Butte, Montana to determine its potential service to approximately 13 customers on to improve electric reliability and at what the microgrid. First, the recloser on the line price point the concept of a “grid-supported opens and sends an open command sig- microgrid” becomes economically viable. nal to the automatic transfer switch noting The project is designed to measure reliabil- that the fault is upstream of the recloser, ity improvements with an established base- prompting a switch to back up power. The line, track system efficiency through device battery, which remains connected to the line monitoring, perform ancillary services as and to the solar PV, will support voltage and needed (i.e., peak load shaving), and opti- frequency services until the battery is dis- mize the design to develop an economic charged. Availability of solar increases the model for future scalability. extent to which the battery can ride through an outage. If assumptions prove correct, the The system is sized to match about 40 per- grid-supported microgrid will reduce cus- cent of the average annual load for the tomer service interruption metrics. During connected customers: an 80 kW peak load islanding the customer will experience a capacity battery and an 80 kW inverter. momentary outage when switching to A/C When in grid-connected mode, the solar backup power and a second momentary system will charge the battery and work outage when restoring grid-connected in tandem with the battery to support the operations as the automatic transfer switch inverter’s ancillary capabilities. When solar closes the recloser, restoring power. is unavailable, the battery is supported by the grid.

40 kW PV system with battery backup grid-supported microgrid.

58 Innovations Across The Grid The project is entering the final stages of engineering design and is expected to be completed by mid-2015. NorthWestern Energy will be conducting several simula- tions to determine if the system is working as intended.

Project Contact Company Description

John Carmody NorthWestern Energy provides elec- Director, Asset Management tricity and natural gas in the Upper Mid- [email protected] west and Northwest, serving approxi- 406.497.2612 mately 678,200 customers in Montana, South Dakota and Nebraska. More information on NorthWestern Energy is available on the company's website at www.northwesternenergy.com.

Chapter 1 – New Energy Resources 59 “This pilot demonstrates the concept of storage supporting both energy and frequency regulation markets.” NEW ENERGY RESOURCES RENEWABLE ENERGY DEVELOPMENT | RESOURCE MANAGEMENT | ENERGY STORAGE

Pacific Gas and Electric Company Battery Energy Storage System Pilots

Technology Project Highlights

Partner(s) Successfully deployed two grid-scale battery systems NGK Insulators, LTD. for PG&E.

S&C Electric Company Developed new dispatch control system for energy storage to enable distribution support and CAISO market service multi-function use. First resource to participate in California’s CAISO new Non-Generator Resource (NGR) energy and frequency regulation markets. Demonstrated exceptional accuracy following CAISO automatic generation control signal during frequency regulation. Successfully demonstrated smoothing of intermittent renewable (solar and wind) generation. Supports California mandate of 1,325 MW of cost- effective electricity storage in place by end of 2024.

Chapter 1 – New Energy Resources 61 Project Description

Pacific Gas & Electric (PG&E) has deployed PG&E began operational testing of the Vaca two battery energy storage systems (BESS) BESS in late 2012. This testing character- as pilot projects. The Vaca-Dixon BESS is a ized baseline system characteristics for use 2 MW / 14 MWh BESS deployed at PG&E’s in evaluating resource performance over its Vaca-Dixon Substation in Vacaville, CA. The lifetime, and confirmed that the system met Yerba Buena BESS is a 4 MW / 28 MWh BESS or exceeded its operational specifications. deployed at the end of a distribution feeder Preliminary testing began with CAISO in the in San Jose, CA. Both utilize sodium-sulfur fall of 2013. As this was the first resource batteries supplied by NGK Insulators, LTD. to participate in CAISO’s Non-Generator of Japan. The systems are being used to Resource (NGR) market model developed test and demonstrate a variety of function- for limited energy storage resources, both alities of grid-scale battery storage, includ- PG&E and CAISO used this testing to iden- ing peak-shaving, participation in California tify and resolve technical issues in sched- electricity markets, integration of intermit- uling and telemetry. Market operations tent renewable generation, and in the case were put on hold pending finalization of a of the Yerba Buena BESS, islanding during storage interconnection process by PG&E’s grid disturbances. Electric Generation Interconnection group and deployment of a new dispatch control Under a project funded by California’s Elec- system developed for managing energy tric Program Investment Charge (EPIC), storage. Both were completed in July, 2014 PG&E is utilizing the Vaca BESS to conduct and the resource began participating in a robust exploration of participation in the the CAISO NGR day-ahead energy market. California ISO (CAISO) energy and ancil- In September, frequency regulation was lary services markets, including enabling added to this participation and as of Novem- full automation in CAISO markets. Under a ber, 2014, the resource has logged approxi- grant from the California Energy Commis- mately 100 hours providing both regulation sion, which also supplied some funding for up and regulation down services. This is part the deployment of the systems, the Yerba of a project under California’s EPIC program Buena BESS is being used to study the per- to robustly explore the real-world perfor- formance of battery storage for peak shav- mance of battery storage in CAISO’s NGR ing, improving power quality and reliability, market, and deploy technology to fully auto- integrating intermittent renewable gener- mate battery response in CAISO markets. ation, and participating in CAISO ancillary services markets. This work is being done The Yerba Buena BESS project began oper- in collaboration with EPRI, which is authoring ational testing in the fall of 2013. This has reports on these functionalities along with included testing for its islanding function- engineer of record reports for both systems. ality, in which the system can disconnect

62 Innovations Across The Grid Testing a variety of functionalities for grid-scale battery storage.

from the distribution feeder in the event of Due to the newness of this technology and a utility disturbance or outage and supply its multiple functional capabilities, bringing downstream loads. Other testing has been these projects online has required overcom- conducted to study the system’s impact on ing a number of organizational, technologi- system reliability, power quality, and renew- cal, and financial challenges. The BESS Pilot Project team has worked closely with staff able integration under a grant from the across PG&E to ensure that lessons learned California Energy Commission (CEC). The from these projects inform future procure- system will also be connected into and par- ments of energy storage, particularly with ticipate in the CAISO NGR market, and is in regard to PG&E’s upcoming request for the latter stages of the New Resource Imple- offers (RFO) for storage, for which the team mentation Process for doing so. It is planned helped develop technical specifications to that approximately half the energy capacity be provided to participants and clear defi- of the system will be used for distribution nitions on how systems would be tested support and half for CAISO market services. to verify their performance. This RFO is in

Chapter 1 – New Energy Resources 63 response to California’s mandate for energy allow the most promising and cost-effective storage (the first in the U.S.), requiring the energy storage projects to be developed. state's three major investor-owned utilities PG&E’s allocation of the 1,325 MW is 580 to have 1,325 MW of cost-effective electricity storage capacity in place by the end MW. On December 1, 2014, PG&E issued its of 2024. Implementing this mandate will first of four RFOs to procure energy storage.

Project Contact Company Description

Dave Fribush Pacific Gas and Electric Company is Project Manager one of the largest combination natural [email protected] gas and electric utilities in the United 415.973.7920 States. Based in San Francisco, the company is a subsidiary of PG&E Cor- poration. The company provides natural gas and electric service to approximately 16 million people throughout a 70,000 square-mile service area in northern and central California.

64 Innovations Across The Grid

“With penetration levels of distributed generation growing, utilities increasingly require tools that can more accurately analyze the complex impacts of such resources on the grid.” NEW ENERGY RESOURCES RENEWABLE ENERGY DEVELOPMENT | RESOURCE MANAGEMENT | ENERGY STORAGE

PNM Resources Geographic Information System (GIS) Data Converter

Technology Project Highlights

Partner(s) Allows for more accurate modeling of impacts from Electric Power Research distributed generation on PNM’s utility systems. Institute (EPRI) Converts PNM’s GIS data for an entire circuit into University of New OpenDSS in minutes. Mexico (UNM) Analyzed 20 circuits with the most installed solar PV to understand solar impacts on different circuit types and in combination with storage, smart inverters, and electric vehicles. Spurred development of a new course at UNM on advanced grid technology modeling, leveraging PNM’s tools and data.

Chapter 1 – New Energy Resources 67 Project Description

The PNM GIS Data Converter project was as a second. It also enables the analysis of undertaken to automate the time consum- interactions between the increasing num- ing process of converting the company’s ber of systems on the distribution system. locational and spatial data for utility assets Although the opportunity to utilize a tool such as transformers and relays, commonly like OpenDSS is tremendous, transferring referred to as GIS data, into the EPRI soft- utility asset data into the program can be a ware tool OpenDSS. With penetration lev- cumbersome manual process. For example, els of distributed generation (DG) growing, it took PNM over three years to convert a sin- especially solar photovoltaic (PV), utilities gle circuit’s GIS data into OpenDSS. PNM, in increasingly require tools like OpenDSS that collaboration with students at UNM, devel- can more accurately analyze the complex oped an application that takes the GIS infor- impacts of such resources on the grid. Exist- mation from PNM’s database and converts it ing analytical tools in many utilities are lim- to a format that OpenDSS recognizes. The ited in their ability to capture the real-time converter enabled replication of the GIS behavior of DG systems, and instead view data for multiple PNM circuits in minutes, these systems in a steady state. For utilities compared to the several years it had taken that do not have advanced metering infra- previously. Once this was completed, PNM’s structure (AMI), dynamic modeling provides monthly customer usage data, statistics the best approach to understanding the related to typical daily customer usage, and impacts of DG on a utility’s system. OpenDSS information from customer solar PV intercon- enables this type of enhanced modeling by nections were loaded into OpenDSS to cre- allowing impacts on a distribution system ate detailed models. These models are now to be estimated in increments as granular being used to analyze the 20 circuits with

GIS data conversion for dynamic distribution system modeling in Open DSS.

68 Innovations Across The Grid the most installed solar PV on the company’s modeling advanced grid technologies. The utility grid, identifying potential impacts on students’ curriculum is being created with a time scale allowed by the most granular the input of PNM’s Distribution Planning and information available from the systems. Advanced Technology departments, along PNM also plans to use these tools to simulate with EPRI. Projects conducted by students adoption of other emerging technologies, to date have tackled several challenges such as electric vehicles, battery storage, and with solar PV, including the development of even smart inverters on a given circuit. For hosting capacity metrics based on varying example, as PNM responds to customers’ thresholds and parameters, reverse power demands for electric vehicles, the modeling flow analysis, and voltage fluctuation stud- of various levels of electric vehicle penetra- ies. PNM also views the collaboration with tion on the system will allow the company UNM as helping to develop the next gener- to determine grid investments and policy ation of the utility workforce. Multiple grad- needs to seamlessly support these technologies, individually or in conjunction with solar uates from UNM that either participated in PV and smart inverters. The predictive value the efforts to develop the converter, or had of these models will help PNM be proactive taken the modeling class, have been hired and supportive in the face of new demands by PNM. EPRI’s “Integration of Distributed placed on the grid and new opportunities in Renewables” program is benefiting from the service territory. the converter as well. The EPRI initiative As an added benefit, the collaborative provided UNM funding for a student in the effort with UNM spurred the creation of a modeling course to perform analysis related new course for engineering students on to their program, utilizing PNM’s converter.

Project Contact Company Description

Brian Arellano With headquarters in Albuquerque, PNM is Project Manager, Advanced Energy the largest electricity provider in New Mex- Technology and Strategy ico, serving 500,000 customers in dozens [email protected] of communities across the state. PNM is a 505.241.2823 subsidiary of PNM Resources, an energy holding company also headquartered in Albuquerque. For more information, visit PNM.com.

Chapter 1 – New Energy Resources 69 “Smart grid technologies, like those demonstrated at the Salem Smart Power Center, represent an opportunity to enhance the value customers receive from the electric system.” NEW ENERGY RESOURCES RENEWABLE ENERGY DEVELOPMENT | RESOURCE MANAGEMENT | ENERGY STORAGE

Portland General Electric Integrated Energy System Demonstration at Salem Smart Power Center

Technology Project Highlights

Partner(s) Distribution microgrid with intelligent economic dis- Eaton patch and distribution management.

EnerDel 5 MW / 1.26 MWh lithium-ion battery array. Incorporates commercial demand response. Demonstrates integration of solar PV with energy storage and demand response.

Acknowledgment

PGE’s Salem Smart Power Project team is pleased to acknowledge the work of its partners and suppliers on this project, especially the project staff at Battelle, located in Rich- land, WA, for their guidance and support in technical and administrative matters. This material is based upon work supported by the U.S. Department of Energy under Award Number DE-OE0000190.

Chapter 1 – New Energy Resources 71 Project Description

Portland General Electric’s Salem Smart demonstrate the ability of the SSPC battery Power Center (SSPC), which opened May array to deliver high reliability to solar cus- 2013 in Salem, Oregon, is the Pacific North- tomers. PGE developed a custom algorithm west’s only substantial microgrid and a first- for the project to demonstrate how the bat- of-its-kind integrated energy system. Fea- tery can combine with solar generation sys- turing a 5 MW lithium-ion battery-inverter tems to fill in the gaps when the sun isn’t system that stores 1.26 MWh of energy, the shining and offer a seamless power flow. SSPC is one of just two such grid-connected This is one of few installations completed by batteries owned and operated by an investor- the utility industry to prove these concepts owned utility. and demonstrate the viability of energy storage as a solution for integrating solar energy. The SSPC is comprised of thousands of battery cells that are stored in racks and wired While the technologies used in this proj- together into a single system. Building the ect are currently too costly for widespread battery facility was challenging, but the real application, PGE determined that: innovation in the project has been integrating The energy storage system is an eco- the technologies. With many of the involved nomically viable solution for responding technologies new to the market, coordinat- to frequency regulation events. ing communication between the system and components was complex. Additionally, A low-cost algorithm can be imple- due to the high energy density of the SSPC, mented for under-voltage load shedding events. a unique fire control system was specially designed for the facility, including giant fans The battery system can seamlessly inte- to maintain constant battery temperature. grate real-time solar energy to peak shave and firm the feeder load profile. With the foundation of a smart grid already The project was part of the five-year, in place — 800,000 smart meters — the SSPC $178 million Pacific Northwest Smart Grid demonstrates how groundbreaking tech- Demonstration Project (PNW-SGDP) — a nologies such as feeder islanding, distribu- unique and collaborative demonstration tion automation, demand response, renew- of unprecedented technologies across five able energy integration, and transactive Pacific Northwest states managed by Bat- energy controls can work together to sup- telle. Now complete, the key focus of the ply more sustainable, efficient, resilient, and PNW-SGDP was to test how physical assets reliable power. like batteries and renewable resources PGE has partnered with a local potato chip could partner with virtual energy assets maker — Kettle Brand, whose factory facil- like demand response to react to price and ity generates distributed solar power — to power supply signals.

72 Innovations Across The Grid Smart grid technologies represent an also making major changes in the way elec- opportunity to enhance the value cus- tricity is provided and used. In the future, tomers receive from the electric system. PGE will continue to use the SSPC as a lab Integrating smart grid technologies into to develop and test smart grid technology, existing infrastructure continues to be a renewable energy integration, and other significant challenge — one that involves key features of the future electric grid. not only leveraging new technology, but

Overview of the Salem Smart Power Project.

Project Contact Company Description

Wayne Lei Portland General Electric, headquartered Corporate Research & Development in Portland, Oregon, is a fully integrated [email protected] electric utility that serves approximately 503.464.8988 842,000 residential, commercial and industrial customers in Oregon. PGE has consis- Disclaimer This report was prepared as an account of work tently delivered safe, reliable and respon- sponsored by an agency of the United States Gov- ernment. Neither the United States Government sibly generated electricity in northwest nor any agency thereof, nor any of their employees, makes any warranty, express or implied, or Oregon since 1889. We rely on several dif- assumes any legal liability or responsibility for the ferent sources to effectively balance power accuracy, completeness, or usefulness of any information, apparatus, product, or process disclosed, or supply resources with customer demand represents that its use would not infringe privately owned rights. Reference herein to any specific com- which contributes to higher reliability and mercial product, process, or service by trade name, trademark, manufacturer, or otherwise does not nec- more stable prices for our customers. essarily constitute or imply its endorsement, recommendation, or favoring by the United States Govern- For more information visit our website at ment or any agency thereof. The views and opinions PortlandGeneral.com. of authors expressed herein do not necessarily state or reflect those of the United States Government or any agency thereof.

Chapter 1 – New Energy Resources 73 “PSE&G's 125 MW Solar 4 All Program helps New Jersey reach its solar power goals, promotes a cleaner environment, turns landfills and brownfields ‘green’ with solar power, and spurs job creation.” NEW ENERGY RESOURCES RENEWABLE ENERGY DEVELOPMENT | RESOURCE MANAGEMENT | ENERGY STORAGE

Public Service Electric and Gas Company (PSE&G) Solar 4 All™

Project Highlights

125 MW (DC) grid connected solar program; 80 MW (DC) in service as of October 2014. Largest pole-attached solar project in the world; 174,000 units. 24 centralized solar sites in service. One landfill solar farm in service; two under construction. Four brownfield solar farms in service. In total, the program has returned over 110 acres of landfill and brownfield space to good use. Solar 4 AllTM will power more than 20,000 homes annually.

Chapter 1 – New Energy Resources 75 Project Description

Solar 4 All is a 125 MW (DC) program that The 80 MW of Solar 4 All capacity that is cur- utilizes rooftops, solar farms, utility poles, rently in service features 40 MW of pole-at- and landfills/brownfields for large-scale, tached solar and 40 MW of centralized solar. grid connected solar projects. As of Octo- The pole-attached portion is the first and ber 2014, 80 MW of the 125 MW total are largest solar project of its kind in the world, in service. and saves space while generating highly distributed solar energy. A 40 MW solar farm Solar 4 All helps New Jersey reach its solar would require about 130 acres of space, power goals, helps promote a cleaner envi- or about 170 football fields, while the pole- ronment, turns landfills and brownfields mounted solar units occupy no real estate. ‘green’ with solar power, and spurs economic More than 174,000 solar units are installed development by creating jobs and making in PSE&G’s electric service territory around New Jersey a center for solar development. the state. Since 2009, Public Service Electric & Gas The pole-attached initiative also includes a Company (PSE&G) has invested more than communications system that monitors the $480 million in the Solar 4 All program, cre- performance of each unit using a self-cor- ating more than 1,600 jobs while also bene- recting mesh network. System data is used fiting PSE&G customers by connecting solar for reporting energy production and to power directly into the PSE&G electric grid. identify under-performing units requiring Solar 4 All will eventually provide enough maintenance. Likewise, there is a monitor- solar electricity to power about 20,000 aver- ing system for each of the centralized Solar age-size New Jersey homes annually. 4 All solar farms, that is used to monitor the sites and measures similar parameters.

PSE&G turns NJ Landfills into solar farms. The centralized portion of Solar 4 All features 24 roof and land-mounted solar farms. Ten of these projects are built on PSE&G- owned property and the other 14 are built at third-party lease sites including four Newark Public Schools, the Community FoodBank of New Jersey, and Rider University. These third party lease arrangements help institu- tions unlock the economic value of unused roof and land space.

Solar 4 All is also helping to turn landfills and brownfields green. Of the 24 centralized solar projects currently in service, four are

76 Innovations Across The Grid located on PSE&G remediated brownfield installing more than 106,000 solar panels, sites (Trenton, Edison, Linden, and Hacken- capable of generating more than 31 MW sack) and one is located on a closed land- of solar power, which is enough to power fill site in Kearny. These sites provide more about 5,000 homes annually. than 10 MW of solar capacity. PSE&G is further authorized to build two to There are two additional landfill solar sites three more landfill solar farms by the end of under construction – the Parklands Solar 2016 that will add just over 20 MW of addi- Farm in Bordentown and the Kinsley Solar tional solar generation to Solar 4 All. The Farm in Deptford. Both of these projects are program will also support 3 MW of solar more than 10 MW in size. In the spring of generation through pilot programs featur- 2015, when the Parkland and Kinsley proj- ing unique solar technologies centered on ects are in service, PSE&G will have returned energy storage, innovative parking lot solar more than 110 acres of landfill and brown- applications, and grid-reliability/storm pre- field space across the state to good use by paredness technology.

Project Contact Company Description

Todd Hranicka Public Service Electric and Gas Company Director, Solar Energy (PSE&G) is New Jersey’s oldest and largest [email protected] regulated gas and electric delivery utility, 973.430.5103 serving nearly three-quarters of the state’s population. PSE&G is the winner of the ReliabilityOne Award for superior electric system reliability. PSE&G is a subsidiary of Public Service Enterprise Group Incor- porated (PSEG) (NYSE:PEG), a diversified energy company. www.pseg.com.

Chapter 1 – New Energy Resources 77 “The Preferred Resources Pilot represents an innovative approach to meeting customers' electricity needs by providing reliable power from diverse resources.” NEW ENERGY RESOURCES RENEWABLE ENERGY DEVELOPMENT | RESOURCE MANAGEMENT | ENERGY STORAGE

Southern California Edison Preferred Resources Pilot

Technology Project Highlights

Partner(s) SCE launched the Preferred Resources Pilot (PRP) in Clean Power Research November 2013 to determine if preferred resources (energy efficiency, demand response, distributed gen- FirstFuel eration, and energy storage) can meet over 300 MW Lawrence Berkeley of anticipated growth in electrical demand in a region National Laboratory served by two substation by 2022. Navigant SCE will implement an integrated grid project (IGP) in a portion of the PRP area to analyze the distribution circuit Sentient Energy impacts of higher penetrations of preferred resources. By the end of 2017, the utility will evaluate preferred resources’ performance capabilities to support deferral or elimination of the need for new gas-fired generation in the PRP region. The pilot’s goal is to confirm the system availability of preferred resources to meet the reliability needs in the PRP region by 2022.

Chapter 1 – New Energy Resources 79 Project Description

Southern California Edison’s (SCE’s) Pre- 81 MW reduction in potential peak demand ferred Resources Pilot (PRP) is focused on can be achieved from demand response. supporting the company’s core mission — It is expected that the market can fill the safely meeting our customers’ needs with remaining needs with distributed genera- reliable and affordable electricity — by con- tion and energy storage. ducting a multi-year pilot to investigate and demonstrate how the integrated use of pre- SCE launched the PRP in 2013 by reaching ferred resources (energy efficiency, demand out to and engaging customers, energy pol- response, clean distributed generation, and icy makers, regulators, and electric system energy storage) may meet the growth in operators; completing a local, integrated electricity demand in the PRP region. The resource plan; and developing a framework PRP region is a transmission-constrained and process to measure the performance area of SCE’s service territory encompassing capabilities of preferred resources. In the 250,000 customers. This area has an antici- coming years, SCE will continue to engage pated load growth of more than 300 MW by stakeholders, acquire preferred resources to the year 2022. It is most directly affected by meet the expected growth, look for innova- the closure of the San Onofre Nuclear Gen- tive opportunities to improve the use of pre- erating Station (SONGS) and will be affected ferred resources, and quantify the grid-level should the nearby ocean-cooled power contributions from preferred resources. plants close in 2020 as part of California’s Results from the PRP will also inform the “once-through” cooling policy. SCE seeks to development of the grid of the future and meet the expected load growth through the contribute toward California’s progressive use of preferred resources and thereby sat- isfy the reliability needs in the region. environmental and renewable energy goals. Meeting the PRP’s goal of managing the The PRP seeks to design, acquire, and local load growth may reduce or eliminate measure a diverse portfolio of preferred the need to construct new natural gas plants resources to meet the forecasted electric- in the PRP target area. By the end of 2017, ity demands in the PRP region. Successful SCE will use data collected from the pilot to resource acquisition requires understanding evaluate preferred resources’ performance the resources’ delivery capabilities in terms capabilities to support deferral or elimina- of meeting peak needs and accounting for tion of the need for new gas-fired genera- the achievable resource potential. SCE’s tion in the PRP region. most recent market potential study estimates that through the year 2017, approx- The PRP represents an innovative approach imately 65 MW in potential peak demand to meeting customer’s electricity needs. reduction can be achieved through energy One of its key goals, which is to manage load efficiency measures in targeted sectors and growth in the PRP region to net-zero solely

80 Innovations Across The Grid top-down, system-wide integrated resource planning to a bottom-up, targeted planning approach.

Additionally, SCE is incorporating a localized integrated grid project (IGP) in an area of the PRP target region to test advanced automation, enhanced communication networks, and The Preferred Resources Pilot meets local energy needs grid-management systems that in alternative ways. may enable enhanced integration of preferred resources in a with clean resources, is unprecedented for concentrated area. The information learned SCE. It also departs from SCE’s past prac- from the IGP will support development of tice of procuring clean resources simply to the clean electric grid of the future through- meet state energy policy goals, adding the out SCE’s service territory. need to meet local reliability requirements as a driver of clean resource acquisition. For more information, please visit Finally, it represents an additional departure http://on.sce.com/preferredresources or from SCE’s current practice of conducting http://edison.com/preferredresources.

Project Contact Company Description

Caroline McAndrews An Edison International (NYSE:EIX) com- Director of Preferred Resources Pilot pany, Southern California Edison is one of [email protected] the nation’s largest electric utilities, serving 626.302.4661 a population of nearly 14 million via 4.9 million customer accounts in a 50,000-square- mile service area within Central, Coastal, and Southern California. www.sce.com.

Chapter 1 – New Energy Resources 81 “The Tehachapi Energy Storage Project is one of the largest lithium-ion battery systems in the world and will allow SCE to evaluate how storing and dispatching large amounts of energy may improve the flexibility and reliability of the next-generation grid.” NEW ENERGY RESOURCES RENEWABLE ENERGY DEVELOPMENT | RESOURCE MANAGEMENT | ENERGY STORAGE

Southern California Edison Tehachapi Energy Storage Project

Technology Project Highlights

Partner(s) 8 MW / 32 MWh lithium-ion battery system connects a ABB 12 kV system to sub-transmission system via 12/66 kV step up transformer. LG Chem Uses two power conversion systems rated at 4.5 MVA Quanta Technology each (9 MVA total). Contains 604 racks, 10,800 modules, and 604,800 lithium ion cells in a 6,300 square foot facility. The project will evaluate 13 operational use cases of battery energy storage systems for transmission, systems, and market applications.

Chapter 1 – New Energy Resources 83 Project Description

The Tehachapi Energy Storage Project battery technology has been tested at a (TSP), funded by SCE and the Department smaller scale and is currently being used in of Energy as part of the American Recovery hybrid and electric vehicles, it has not been and Reinvestment Act, is one of the largest widely deployed for large scale utility pur- lithium ion battery systems in the world, with poses. The ability to store large amounts of 8 MW of power and capable of storing 32 energy will help SCE improve the flexibility MWh of energy. and reliability of the next-generation grid.

Located at Monolith Substation, in Thirteen operational uses of the battery Tehachapi, CA, TSP is a demonstration to energy storage system are being evaluated. further SCE's understanding of energy stor- There are three general evaluation catego- age, evaluate the capability of utility-scale ries: transmission uses, system uses, and lithium-ion battery technology and smart California Independent System Operator inverters to improve grid performance, and (CAISO) market uses. The transmission uses assist in the integration of variable renew- evaluate the ability of the battery system to able energy resources. The area is part of resolve capacity and stability issues on trans- the Tehachapi Wind Resource Area, cur- mission systems, especially those with inter- rently capable of delivering over 2,000 MW connected wind resources. System uses of renewable energy. Though lithium-ion provide for a means of meeting the system

SCE Tehachapi battery array.

84 Innovations Across The Grid electricity needs with stored energy. The to Tehachapi’s 604 racks. This mini-system CAISO market uses evaluate the ability of has allowed SCE both to test all functional- the battery system to provide benefits to the ity of the system for safety and operational grid in ways that meet specific needs of the readiness in a controlled lab environment system operator. before implementing the full version into service on the grid, and to test new control Several of the operational uses may be used and operating schemes that are not depen- to explore the practical business implica- dent upon conditions in the field. The tions associated with evaluating grid-connected lithium-ion battery energy storage. mini-system allowed the utility to fine-tune Specifically, the project demonstrates the the system before installation, shortening ability of lithium-ion battery storage to the commissioning process. minimize the need for fossil fuel-powered TSP is one of a number of battery storage back-up generation. testing projects that SCE is undertaking. One innovative idea employed over the Results will allow SCE to better understand course of this project has been the develop- the technology and how it may be deployed ment of a fully functioning “mini-system” at as the utility moves towards meeting the SCE’s lab in Pomona. The Pomona mini-sys- California requirement for SCE to procure tem has two racks of batteries, as compared 580 MW of energy storage by 2020.

Project Contact Company Description

Doug Kim An Edison International (NYSE:EIX) com- Director, Advanced Technology pany, Southern California Edison is one of [email protected] the nation’s largest electric utilities, serving 714.895.0253 a population of nearly 14 million via 4.9 million customer accounts in a 50,000-square- mile service area within Central, Coastal, and Southern California. www.sce.com.

Chapter 1 – New Energy Resources 85 “The Bright Tucson Community Solar Program democratizes access to solar energy. A block of solar energy costs $3 per month, less than a premium cup of coffee!” NEW ENERGY RESOURCES RENEWABLE ENERGY DEVELOPMENT | RESOURCE MANAGEMENT | ENERGY STORAGE

Tucson Electric Power Bright Tucson Community Solar Program

Technology Project Highlights

Partner(s) Community solar program empowers Tucson Elec- University of Arizona tric Power (TEP) customers to purchase solar energy "blocks" of 150 kWh at a rate that adds just $3 per month to electric bills. Launched in 2011, the program has grown quickly, from 532 customers purchasing 334 MWh of solar energy in the first year to 1,200 customers who purchased over 3,300 MWh of solar energy in 2014. Community solar democratizes access to solar, eliminates cost-shifting to non-solar customers, costs less than rooftop solar, and is regarded favorably by regulators and elected officials.

Chapter 1 – New Energy Resources 87 Project Description

Tucson Electric Power’s (TEP’s) Bright Tuc- son Community Solar (BTCS) program, launched in 2011, offers most residential and business customers an easy and affordable way to meet their electric needs with locally generated solar power. TEP’s community solar program has two core components. First, the utility sites, pro- cures, and manages the solar photovol- Community solar at University of Arizona Science and Technology Park. taic (PV) project, determining the location and scale of the project. Second, a solution for the diverse set of customers residential and commercial customers in the Tucson area. But, the program has are eligible to purchase solar energy evolved and is now also an innovative and from that project and can choose the cost-effective solution for larger customers, amount to purchase. including municipal governments. In developing BTCS, one of TEP’s goals Under BTCS, customers purchase solar en- was to offer a solar program to its residen- ergy “blocks” in 1 kW increments equal to tial and commercial customers, especial- 150 kWh for just $3 a month through a solar ly those who could not or did not want to participate in rooftop solar. This includes tariff that adds about 2 cents per kWh to the customers who live in condominiums or customer’s average rate, giving all custom- apartments, customers in single family ers access to solar energy at very reason- homes unsuited to rooftop solar, customers able prices. Customers can subscribe up to who find the upfront costs of rooftop solar their average monthly kWh consumption. prohibitive, customers who don’t want to For example, a customer with an average make a long term commitment to solar, and monthly consumption of 900 kWh would others. Basically, BTCS was designed to be be eligible to purchase as much as 6 blocks

TEP's Bright Tucson Community Solar (BTCS) Program Timeline.

Concept Next gen rooftop developed Program launched solar program

22009 2010 2011 2012 2013 2014 2015

Solar tariff ﬁled Program expanded Potential & approved to UNS Electric modiﬁcation to BTCS

88 Innovations Across The Grid The BTCS Program grew from 334 MWh in 2011 to 3,340 MWh by July 2014 through customer purchases of blocks of community solar energy. of solar energy for a premium of $18 per project at the University of Arizona Science month or as little as a single 150 kWh block and Technology Park, which offered the first of solar energy each month. When a cus- blocks of solar for sale. tomer purchases a block of solar energy, the The BTCS program has a wide range of customer receives an offsetting discount to customers — residential customers, com- the fuel and purchase power charge as well mercial customers, and communities. BTCS as the renewable surcharge on the monthly acquired 532 customers in its first year, bill. Customers that purchase solar under who purchased a total of 334 MWh of so- the BTCS program are not under a contract lar energy. Customer engagement has in- and are free to drop out of the program at creased rapidly over the past three years. any time. Today BTCS boasts over 1,200 customers Critical to the success of BTCS was its ex- who purchased over 3,300 MWh of solar tensive community involvement, including energy in 2014 — a 10-fold increase in just the development of TEP’s 1.6 MW solar three years.

Chapter 1 – New Energy Resources 89 TEP found that program marketing drove customer engagement in the program. Go- Summary of Key ing forward, TEP believes that BTCS should Advantages of include an on-bill presentation of the ben- Community Solar efits of the program. A lesson learned so far from BTCS is that some custom- Community solar democra- ers did not understand the value of BTCS tizes access to solar because it was not clearly represented Community solar eliminates on the monthly billing statement. TEP in- the cost shift to non-solar tends to modify the bill presentation to customers make it more customer-friendly. Community solar costs less than rooftop solar Community solar is regarded favorably by regulators and elected officials

Project Contact Company Description

Carmine Tilghman Tucson Electric Power provides safe, Senior Director, Wholesale, reliable power to more than 414,000 Fuels, & Renewable Resources customers in southern Arizona. TEP [email protected] and its sister company, UniSource 520.745.7108 Energy Services, are among a family of utilities owned by Fortis, Canada’s largest investor-owned gas and electric utility holding company. Fortis completed an acquisition of UNS Energy, TEP’s and UES’ parent company, in August 2014. To learn more, visit tep.com.

90 Innovations Across The Grid

“Through an innovative partnership that will help the U.S. Army achieve its renewable energy and energy security objectives, TEP will provide Fort Huachuca with cost- effective solar power in an expedited fashion.” NEW ENERGY RESOURCES RENEWABLE ENERGY DEVELOPMENT | RESOURCE MANAGEMENT | ENERGY STORAGE

Tucson Electric Power Fort Huachuca Solar Power Project

Technology Project Highlights

Partner(s) 17.2 MW fixed PV array, with plans for future expan- E.ON Climate and sion beyond 20 MW. Renewables TEP will finance, develop, own, and operate the system at Fort Huachuca U.S. Army base in Sierra Vista, AZ. The PV system will help the U.S. Army achieve its renewable power and energy security goals without increasing energy costs. TEP will retain renewable energy credits for compliance with Arizona’s renewable energy standard.

Chapter 1 – New Energy Resources 93 Project Description

Tucson Electric Power (TEP) is developing existing rates. In this way, Fort Huachuca will a large solar array to serve Fort Huachuca, achieve its renewable energy goals at no a U.S. Army base in Sierra Vista, Arizona, additional cost while TEP preserves its role through an innovative partnership that as the base’s electric service provider. satisfies the Army’s energy security and This first-of-its-kind partnership will deliver green power objectives while address- numerous benefits for the U.S. Army, Fort ing utility challenges posed by distributed Huachuca, TEP, and its customers: generation systems. By leveraging a seven-decade relation- Base officials originally sought to own a ship with TEP as its electric provider, Fort large-scale photovoltaic (PV) system in Huachuca can count on the streamlined support of the U.S. Army’s goal of deploy- development of a high-quality renew- ing one gigawatt of renewable energy by able energy resource from a stable, 2025. The development cost was prohibi- trusted provider. tive, though, and buying the output of such Because TEP will own and operate the a system through a third-party lease would solar array, the entire system will be have increased the base’s annual energy tied to the utility’s existing substation expenses by an estimated $2 million. In light through a single interconnection on the of these and other factors — including the utility’s side of the meter. When com- prospect that a distributed generation (DG) bined with energy storage and other future enhancements, an array thus system at the base would shift the recovery of configured will provide the base with fixed utility service costs to other customers unique energy security enhancements — TEP developed an alternate approach to that would be unavailable through a addressing the base’s energy needs. TEP col- third-party system. laborated closely with the U.S. Department TEP will continue to serve Fort Huachu- of Defense and the Army’s Office of Energy ca’s entire load, maintaining its exclusive Initiatives (OEI) (formerly the Energy Initia- relationship with a key customer and tives Task Force, or EITF) to establish a un- retaining revenue that would have been ique solution that allows both Fort Huachuca lost if the base reduced its consumption and TEP to achieve their green energy goals of grid power through use of a third- while mitigating impacts on other customers. party DG system. Because TEP will pre- serve its ability to recover its fixed service TEP will finance, own, and operate the sys- costs through the base’s existing rates, tem, combining its output with other grid those costs will not be shifted to other resources to reliably serve all of the base’s customers, a common consequence of electric needs without any change to third-party DG systems.

94 Innovations Across The Grid The Fort Huachuca project facilitates parties ensured that TEP will continue to TEP’s continued expansion of cost-ef- provide electric service to Fort Huachuca at fective, utility-scale PV systems. Because rates approved by the Arizona Corporation TEP will retain the renewable energy Commission. The Department of Defense credits (RECs), the system will help the also entered into a 30-year easement with company comply with Arizona’s Renew- TEP authorizing the company’s use of the able Energy Standard. land needed for the PV system and the A typical third-party DG project could not interconnection facilities. While TEP was have delivered such broad benefits. To the first utility in the nation to employ this achieve them, TEP and the Army’s OEI new contracting approach, it need not be developed a collaborative contracting the last. In fact, TEP and OEI designed this approach that could serve as a model for model so that it could easily be replicated other utilities. Through delivery orders at other military installations with a utility as the sole energy provider. issued under its Area-wide Public Utility Contract with the General Services Admin- TEP has overseen design and construction istration (GSA), TEP is able to deliver energy of the system through a contract with E.ON, and regulated energy management ser- a partner on other successful solar power vices to Fort Huachuca, thereby authorizing projects. The first 17.2-megawatt (MW) TEP’s development and operation of the PV phase of the fixed PV system is expected to system. Through three successive 10-year be complete by the end of 2014, with plans term delivery orders with the GSA, the for future expansion beyond 20 MW.

Project Contact Company Description

Philip J. Dion Tucson Electric Power provides safe, reli- Senior Vice President, able power to more than 414,000 custom- Public Policy and Customer Solutions ers in southern Arizona. TEP and its sister [email protected] company, UniSource Energy Services, 520.884.3708 are among a family of utilities owned by Fortis, Canada’s largest investor-owned gas and electric utility holding company. Fortis completed an acquisition of UNS Energy, TEP’s and UES’ parent company, in August 2014. To learn more, visit tep.com.

Chapter 1 – New Energy Resources 95 “Today’s distribution grid is evolving from a one- way, centralized power delivery system to a more open, flexible, multi-point system with a collection of technologies and assets.” Distribution Grid Optimization

he U.S. electric power grid is evolving into a platform for integrating new energy services and Ttechnologies. This includes integrating greater amounts of renewable energy and distributed energy resources, providing customer solutions,2 and optimizing the power grid itself.

Today’s distribution grid is evolving from a one-way, centralized power delivery system to a more open, flexible, multi-point system with a collection of technologies and assets, some controlled by the utility and some not. Managing the evolving distribution “grid of things” will require utilities to invest in upgrading their distribution platforms.

In the U.S., capital expenditures in the power sector are expected to total more than $90 billion per year for the next several years. And, in the future, more of those capital expenditures are expected to be allocated to the distribution system and less to generation, signaling the growing importance of the distribution grid.

The case studies in this chapter demonstrate how utilities are investing in and upgrading their evolving distribution systems with an aim toward grid optimization.

97 Examples demonstrate that: they emerge. The convergence of information technology (IT) and operations tech- Investments in field sensory equipment nology (OT) systems is critical for scalability and communications and control tech- of the grid platform. nologies are giving utilities the ability to collect and channel information more Enel has integrated 11 source systems, quickly into integrated network man- including the billing system, outage agement systems; management system, meter data man- Better integration of network operations agement system, validated theft case information from end-point devices, data, Google for address verification, such as smart meters, is providing notifi- and other systems to improve oper- cations to field service restoration crews, ational efficiency and to reduce non- technical losses through advanced helping them to avoid and to reduce power fraud detection. customer outages; Faster fault location and intelligent, Many utilities are integrating their auto- sectionalizing switches are allowing for mated metering infrastructure (AMI) and rerouting of power flows, enabling the outage management systems (OMS) to grid to self-heal; improve outage management and restoration services. Data analytics and machine learning are helping utilities to identify power Utilities are integrating sophisticated theft and feeder failure and to perform weather forecasting models to develop risk-based, preventive maintenance predictive analytic capabilities. For at substations; and example, DTE Energy is using a system Optimized voltage through integrated that integrates hyper-localized weather volt/VAR control is providing energy and forecasting models with the electrical capacity savings. distribution network to predict damage location and outage severity more accurately to optimize crew placement and Grid Optimization Trends to begin repair work sooner. Utilities are improving grid operational efficiency by integrating their systems, 2. Point Solutions deploying smart sensing and automation Utilities are deploying instruments and sen- technologies at points on the distribution sors to fix known trouble spots, to advance grid, and continuously evolving the grid a specific capability, or to provide visibility platform itself. into a specific section of the grid. These point solutions are often a step in the evo- 1. Systems Integration lution of an intelligent grid platform and Utilities are connecting legacy assets and can be leveraged once other system com- systems and are integrating new systems as ponents are in place.

98 Innovations Across The Grid For instance, Con Ed is using a high-pow- long-standing one for utilities that pur- ered digital X-ray instrument for in-ser- chase assets from multiple vendors. vice inspections of high-voltage under- Duke Energy is working with a growing ground transmission feeders. The coalition of leading technology vendors digital X-ray, far clearer than conven- to develop interoperability among dis- tional X-rays, allows Con Ed to identify parate hardware, software, and com- compromised feeder joint components munications systems. Duke’s approach easily and to prevent electrical failure. is unique in that it is using a field message bus that translates data into one Conservation voltage reduction sche- common language and allows data mes, such as those underway at BGE, to be easily shared among validated improve voltage and power factor peers. This peer-to-peer communica- management on the distribution sys- tion allows data to be delivered quickly tem while reducing peak demand and where needed without having to rely energy consumption. on a centralized management system. Rapid delivery of data is important to 3. Intelligent Platform deal effectively with the variability of distributed energy resources, and Duke is As the grid becomes digitized and data- demonstrating the value of interopera- driven, the value of data to systems oper- bility and reduced latency for effective ations and situational awareness is depen- edge of network optimization. dent upon its relevancy, accuracy, time to process, and ability to communicate. Conclusion The ability to communicate data in an Reliability and power quality remain key effective manner is central to the suc- performance metrics for the power grid. cess of CenterPoint Energy’s Intelligent As today’s power grid evolves from a one- Grid project. Since 2011, CenterPoint way, centralized power delivery system to has installed 750 intelligent grid switch- a more open, flexible, multi-point system ing devices on circuits in Houston and with distributed resources at the edges has fully automated 31 substations, of the grid, optimizing the power grid avoiding nearly 100 million outage means managing a grid that is much more minutes. Key to this achievement are dynamic, more decentralized, and more the wireless, secure telecommunica- data-driven. That presents both challenges tions networks built by CenterPoint to and opportunities. transmit the smart meter power status notifications and execute remote switching commands. Economic interoperability of assets is fundamental to optimizing the distribution network. This challenge is a

Chapter 2 – Distribution Grid Optimization 99 “AEP’s Asset Health Center tool transforms the conventional, time-based maintenance approach of asset sampling to one that acts upon specific, real- time equipment monitoring to build a smarter and better-performing grid.” DISTRIBUTION GRID OPTIMIZATION SYSTEMS INTEGRATION | POINT SOLUTIONS | INTELLIGENT PLATFORM

American Electric Power Asset Health Center Improves Infrastructure Decisions; Builds Smarter Grid

Technology Project Highlights

Partner(s) System-wide analytical tool judges the performance ABB and longevity of transmission assets. Time-based maintenance of assets will be displaced by one that acts upon specific, real-time conditions of equipment. Risk of failure calculation is being completed for over 5,400 transformers, 3,000 circuit breakers, and 300 batteries. Benefits include better operational performance, financial outcomes, compliance, and safety.

Chapter 2 – Distribution Grid Optimization 101 Project Description

AEP and other utilities confront two major (SCADA) system, integrated station infor- questions about decades-old infrastructure mation system (ISIS) database (a 15 year assets. How much longer will they last? old application that will be replaced by the When should they be replaced? IPS Energy software package in early 2015), and operational and diagnostic expertise. Getting answers has been elusive because AEP Transmission’s Advanced Transmission of a blizzard of data from inspection reports Studies team leveraged the field opera- and sensors and the long time needed to tional and diagnostic expertise of the orga- organize data into information for deci- nization’s Transmission Field Services (TFS) sions. AEP Transmission has solved the to formulate transformer and circuit breaker dilemma by developing a system-wide ana- AHC algorithms. lytical tool, the Asset Health Center (AHC), to judge the performance and longevity of By combining historical and recent data, assets and determine whether the lives of the AHC clarifies the current performance diminishing assets should be extended or and condition of each asset. That infor- ended for replacement. mation enables TFS to focus its resource deployment on O&M or asset replacement. An AEP review of infrastructure assets Specifically, AHC benefits customers and revealed that more than a third of its power shareholders by helping the utility: transformers were 50 years old or greater, and nearly 20 percent topped 60 years. Reduce the consequences of equip- The report stated that the pace at which ment failures (and outages) with real- these assets either fail or need costly care time asset condition data, predictive to extend their lives will accelerate. Such analytics, and risk modeling. findings called for a new approach to eval- Achieve system reliability, power avail- uating equipment end-of-life decisions. ability, high-quality performance, and compliance goals. AEP Transmission outlined the AHC con- Optimize workforce productivity and cept in 2007. After further development safety by targeting maintenance where with ABB, a leading power and automa- it is most needed. tion company, AEP launched development of the industry’s first system-wide AHC Synthesize data to prioritize asset in late 2012. The AHC is a fully-fledged replacements/investments. assessment tool that tracks asset health, The AHC software will be deployed in predicts asset performance, and drives successive phases over several years. In decision-making about asset management. the first phase, 15 major substations con- AEP integrated analytical technologies taining hundreds of extra-high voltage created by ABB with AEP Transmission’s (EHV) transformers, breakers, and batter- supervisory control and data acquisition ies became fully monitored by the AHC

102 Innovations Across The Grid software. Phase 2, completed in Septem- fleet of transformers, circuit breakers, and ber 2014, conducted a risk of failure cal- batteries will eventually be monitored culation for over 5,400 transformers, 3,000 and assessed through AHC algorithms circuit breakers, and 300 batteries. Phase and software. 2 also saw the implementation of monitor- The AHC project has enjoyed system-wide ing data from transformer gas monitors, support and collaboration because it affects loading, and temperatures into the AHC most AEP Transmission business units and software for over 75 transformers. An asset is projected to improve operational per- replacement dashboard was also created in formance, financial outcomes, compliance, Phase 2. In June 2014, AEP recorded their and safety. The AHC transforms Transmis- first prevented transformer failure due to sion’s conventional, time-based mainte- the AHC project. nance approach of asset sampling to one Future phases will include partial discharge that acts upon specific, real-time conditions monitoring data, bushing health monitor- of equipment in a timely and direct fashion. ing data, and fault file data and an asset Monitoring the health of key assets builds a maintenance dashboard. The entire AEP smarter and better-performing grid.

Project Contact Company Description

Jeff Fleeman Headquartered in Columbus, Ohio, AEP Director of Advanced Transmission is one of the largest electric utilities in the Studies and Technology U.S., serving over 5 million customers in [email protected] 11 states. AEP Transmission, a division of 614.552.2120 AEP, operates a transmission system of more than 40,000 miles — the largest in the nation. It supplies about 10 percent of the demand in the Eastern Interconnection, and 11 percent of the demand in ERCOT, covering much of Texas. The backbone of AEP's transmission network is its 2,100 miles of 765 kV lines, more miles of 765 kV transmission lines in service than all other U.S. electric utilities combined. For more information visit AEP at www.aep.com.

Chapter 2 – Distribution Grid Optimization 103 “Conservation voltage reduction at BGE provides additional demand and energy savings to customers through improved voltage control enabled by modern software, hardware, and communication solutions.” DISTRIBUTION GRID OPTIMIZATION SYSTEMS INTEGRATION | POINT SOLUTIONS | INTELLIGENT PLATFORM

Baltimore Gas & Electric Implementation of Conservation Voltage Reduction

Technology Project Highlights

Partner(s) Improved voltage and power factor management on ABB the distribution system.

Beckwith Electric Co. At full deployment, estimated 85 MW reduction in peak demand and 251,000 MWh reduction in energy Black & Veatch consumption. Lindsey Supports EmPOWER Maryland state goal to achieve Manufacturing Co. 15 percent reduction in per capita electricity demand OSI and consumption by 2015. Novel capacitor-only algorithms allows CVR deploy- Silver Spring Networks ment on substations with de-energized tap changers.

Structure Implementation of single-phase capacitor switching Utilidata algorithms allows CVR at locations with voltage imbalances.

Chapter 2 – Distribution Grid Optimization 105 Project Description

The goal of conservation voltage reduc- initial focus on deploying enterprise level tion (CVR) is to operate distribution feed- head-end software and implementing CVR ers at the lower end of the prescribed volt- at substations equipped with LTCs or voltage range, reducing electric demand and age regulators covering approximately 10 energy consumption compared to oper- percent of BGE’s distribution system. The ating at the midpoint of the prescribed deployment across the remainder of the voltage range. The goal of CVR imple- system equipped with DETC transformers mentation at BGE is to provide additional is expected to continue until 2019. The demand and energy savings to customers project will install a total of approximately through improved voltage control enabled 4,800 capacitor bank controllers, 9,600 by modern software, hardware, and com- overhead and pad-mount voltage sen- munication solutions. To achieve these sors, 150 voltage regulators, and 50 head- results, BGE predominantly utilizes distri- end feeder monitors, and will utilize select bution transformers with de-energized tap advanced metering infrastructure (AMI) changers (DETC), and relies on distribution end-of-line voltages as control points for capacitors to control both voltage and reac- the CVR algorithm. tive power. This approach results in a more AMI is one component enabling effective gradual voltage drop across the distribu- implementation of the BGE CVR program. tion feeder and lower overall distribution The AMI system supports monitoring of voltages, compared to traditional voltage customer voltages to ensure acceptable control utilizing load tap changing (LTC) customer voltages are maintained as CVR transformers. The energy and demand is implemented. BGE plans to utilize the savings from BGE’s CVR program will con- Silver Spring Networks UtilityIQ® Power tribute towards the goals set in the 2008 Monitor tool to provide localized monitor- EmPOWER MD legislation to achieve 15 ing for voltage sags/swells at the customer percent reduction in per capita electricity meter. Power Monitor reduces network demand and consumption by 2015, com- traffic and delivers data directly to the CVR pared to 2007 levels. head end over a common MultiSpeak inter- BGE has been piloting CVR since 2012 to face. In addition, BGE partnered with Black test various CVR algorithms and compo- & Veatch to develop a voltage analytics tool nents, and to estimate projected electric to allow historical data tracking, spatial pre- demand and energy savings. Full scale sentation, and reporting of meter voltage CVR deployment started in 2014 with the data based on BGE requirements.

106 Innovations Across The Grid Operation of single-phase capacitor bank switching.

The key to the success of the BGE CVR pro- and voltage sensors. Single phase capac- gram is the design and implementation of itor bank control allows the CVR algorithm the capacitor-only CVR algorithm, utilizing to be applied to each phase individu- single-phase capacitor switching and re-se- ally, establishing better voltage balance quencing of capacitor switching order with between phases and allowing additional the goal of minimizing the average feeder energy savings. BGE’s single-phase capac- voltage. Because the lowest phase dictates itor-only CVR algorithm has been piloted the operation of the algorithm, traditional and successfully tested, and has been imple- three-phase operation of capacitor banks mented within the OSI head-end software. may limit the ability of the CVR algorithm to adjust the voltage while maintaining all CVR factor represents the percentage three phases within the allowable range. change in energy or demand resulting from Single-phase control is enabled by the a 1 percent reduction in voltage. Based on installation of capacitor bank controllers estimates from pilot data covering nine

Chapter 2 – Distribution Grid Optimization 107 distribution circuits, the CVR energy factors and overall peak demand reduction is esti- were calculated to be 1.0 for residential mated to be 85 MW (1.17 percent of peak feeders and 0.6 for commercial and indus- demand) at full deployment. These sav- trial feeders. At full deployment, overall ings will contribute toward the EmPOWER energy savings are estimated to be 251,300 Maryland goal to achieve 15 percent re- MWh annually (0.86 percent of total energy duction in per capita electricity demand use on feeders where CVR is deployed), and consumption.

Project Contact Company Description

Aleksandar Pregelj BGE, headquartered in Baltimore, is Manager, Distribution Automation Maryland’s largest gas and electric util- and Technology ity, delivering power to more than 1.2 [email protected] million electric customers and more 410.470.7798 than 655,000 natural gas customers in central Maryland. The company’s approximately 3,400 employees are committed to the safe and reliable delivery of gas and electricity, as well as enhanced energy management, conservation, environmental stewardship, and community assistance. BGE is a subsidiary of Exelon Corporation (NYSE: EXC), the nation’s leading competitive energy provider, with 2013 revenues of approximately $24.9 billion. www.bge.com.

108 Innovations Across The Grid

“Since 2011, Houstonians have avoided nearly 100 million outage minutes due to the fault localization and remote switching capabilities of CenterPoint’s Intelligent Grid.” DISTRIBUTION GRID OPTIMIZATION SYSTEMS INTEGRATION | POINT SOLUTIONS | INTELLIGENT PLATFORM

CenterPoint Energy Intelligent Grid

Technology Project Highlights

Partner(s) 761 intelligent grid switching devices installed. ABB 50-70 percent faster fault localization. G&W Electric 97 million customer outage minutes avoided. GE 31 substations automated.

Itron Power restored to over one million customers without a phone call. SEL 30 percent reliability improvement (Jan.–Sept. 2014). Siemens

Ventyx

Chapter 2 – Distribution Grid Optimization 111 Project Description

Following Hurricane Ike in 2008, the Hous- Through the meters’ power-off notifications ton Mayor’s Task Force Report concluded (PONs), the company can identify the scope that a smart grid offers the best return-on-in- of power outages (e.g. fuse, transformer, or vestment for improving grid resilience and single meter) 50 to 70 percent faster than enabling storm recovery, and gave the Task by depending on customer phone calls. In Force’s strongest recommendation to find- fact, using smart meters and the intelligent ing the means to accelerate CenterPoint grid, CenterPoint Energy has now restored power to more than one million customers Energy’s deployment of Intelligent Grid without a single phone call. Moreover, the technology in the Houston area. company’s new power alert service noti- In 2009, the U.S. Department of Energy fies over 400,000 enrolled customers by awarded CenterPoint Energy one of just six text, email, and/or phone call when their $200 million Smart Grid Investment Grants power goes out along with an estimated to help fund construction of Houston’s time of restoration, followed by crew status intelligent grid and accelerate installation updates and confirmation of restoration. of 2.2 million smart meters in greater Hous- Houstonians are also benefiting from the ton. Construction on the project began fault localization and remote switching in 2010 and will continue throughout the capabilities of the Intelligent Grid. Cur- decade. By mid-2012, CenterPoint Energy rently, over 750 intelligent grid switching had completed installation of smart meters devices have been installed on circuits throughout greater Houston. across Houston, and 31 substations have

Visual and graphical representation of outages in CenterPoint Energy’s service territory.

112 Innovations Across The Grid been fitted with automation equipment. As CenterPoint Energy will soon launch an a result, 280,000 customers on Intelligent advanced distribution management sys- Grid circuits have avoided nearly 100 mil- tem, which will act as the Intelligent Grid’s lion outage minutes since 2011, when the “brain” to better plan, engineer, and oper- intelligent grid began being used to local- ate the grid. Faster, more accurate infor- ize outages and reroute power. In the first mation about outage types and locations nine months of 2014 alone, when Intelli- will make dispatching service crews more gent Grid automation has been used, reli- efficient, reducing outage durations while ability has improved by 30 percent. improving reliability and customer service. To enable the two-way communication In the years ahead, CenterPoint Energy at the heart of the Intelligent Grid, Cen- terPoint constructed a secure, redundant will continue to extend the Intelligent Grid wireless telecommunications network to across the company’s greater Houston elec- transmit PONs and power restored notifi- tric service territory to meet the demand for cations (PRNs) as well as execute remote a reliable and resilient electricity delivery switching commands. system in the 21st Century.

Project Contact Company Description

Valentine Emesih CenterPoint Energy's electric transmission VP Grid & Market Operations and distribution unit serves over 2.2 million [email protected] metered consumers in a 5,000 square-mile 713.207.2168 area including Houston, the nation’s fourth largest city and a consistently growing market. As a regulated "wires" utility, we neither generate power nor sell it to end- use consumers. We instead own, operate and maintain the poles, wires and substations that safely and reliably deliver electricity from power plants to consumers. With over 3,700 miles of transmission lines and 49,000 miles of distribution lines, we deliver electricity on behalf of 75 retail electric providers.

Chapter 2 – Distribution Grid Optimization 113 “The objective of the Energy Infrastructure Modernization Act is to improve system performance through accelerated investment in programs that address aging distribution infrastructure, storm hardening, and expand smart grid technology.” DISTRIBUTION GRID OPTIMIZATION SYSTEMS INTEGRATION | POINT SOLUTIONS | INTELLIGENT PLATFORM

Commonwealth Edison Company Distribution Automation

Technology Project Highlights

Partner(s) 1,400 distribution automation (DA) devices installed G&W Electric since 2012.

S&C Electric Company 2,600 DA devices targeted for installation by 2016. 375,000 avoided customer outages since 2012. Silver Spring Networks New mesh communication network enhances security of the network. DA devices connected to supervisory control and data acquisition (SCADA) system to provide situational awareness and control of distribution grid.

Chapter 2 – Distribution Grid Optimization 115 Project Description

On October 27, 2011, the Illinois General the “self-healing” nature of a smart grid. Assembly enacted the Energy Infrastruc- ComEd’s DA program includes installa- ture Modernization Act (EIMA), setting in tion of 2,600 DA devices between 2012 motion a $2.6 billion investment by ComEd and 2016, as well as the necessary secure to strengthen and modernize the state’s communications infrastructure. northern electric grid. The objective of the EIMA program is to improve system per- At the end of 2011, ComEd initiated a pilot formance through accelerated investment project to evaluate the addition of a newer in programs that address aging distribu- generation of loop scheme “sectionalizing” tion infrastructure, storm hardening, and devices. For the pilot, ComEd chose the expand smart grid technology. Viper-ST reclosers from G&W Electric fitted with SEL-651R1 recloser controls. The A key component of smart grid technol- pilot consisted of seven reclosers installed ogy is distribution automation (DA). DA in three different schemes across the com- technology uses “sectionalizing” devices pany, including a mixed scheme with exist- and remote communications to detect ing reclosers. issues on the distribution system and automatically re-route power to minimize A distribution automation scheme consists the number of customers impacted by of one or more normally closed switches outages. This is commonly referred to as with at least one normally open switch

EIMA Status - program inception to Date through July 2014.

116 Innovations Across The Grid installed at a “tie” point between two or territory, and caused severe damage to more distribution feeders. The technol- electrical infrastructure, knocking down ogy automatically re-routes power around multiple poles and power lines. There were a problem, often with no noticeable inter- nearly 430,000 customer outages across ruption of service, and reduces the number the ComEd service territory. Without the of customers affected by an outage, as well 1,400 DA devices made possible through as expediting restoration, emergency re- EIMA, there would have been approxi- sponse, and the execution of switch orders. mately 60,000 more customer outages. Over half of the avoided customer out- ComEd and the vendor worked together to ages were a result of the devices installed test the new systems and develop training through EIMA. modules. The pilot was rapidly followed by To-date, DA devices installed through EIMA a system-wide deployment in 2013, install- have avoided 375,000 customer outages. ing over 400 of the new devices. Fewer customer outages from DA and By June 2014, more than 1,400 devices reliability benefits from other EIMA invest- were installed, and on June 30th, multi- ments have resulted in ComEd’s best year- ple tornadoes and strong winds reaching end reliability performance (0.99 SAIFI) and 110 miles per hour struck the service terri- customer satisfaction rate on record. tory. These storms brought approximately 80,000 lightning strokes across the service

Project Contact Company Description

Daniel Brotzman Commonwealth Edison Company (ComEd) Manager of Reliability Programs is a unit of Chicago-based Exelon Corpo- [email protected] ration (NYSE: EXC), the nation’s leading 630.576.6834 competitive energy provider, with approximately 6.6 million customers. ComEd provides service to approximately 3.8 million customers across northern Illinois, or 70 percent of the state’s population. For more information visit ComEd.com, and connect with the company on Facebook, Twitter, and YouTube.

Chapter 2 – Distribution Grid Optimization 117 “The Chicago Superconductor project will connect several of Chicago’s Central Business District substations with a superconductor cable system at 12 kV to enhance the electric grid. The total cable length is approximately 3.8 miles — the largest superconductor cable system in the world.” DISTRIBUTION GRID OPTIMIZATION SYSTEMS INTEGRATION | POINT SOLUTIONS | INTELLIGENT PLATFORM

Commonwealth Edison Company Resilient Electric Grid Superconductor Project

Technology Project Highlights

Partner(s) Planned 3.8 mile superconductor cable system is American largest in the world. Superconductor 10–12 fold increase in carrying capacity of traditional (AMSC) cable circuits.

Department Increased resiliency of grid serving Chicago’s Central of Homeland Security (DHS) Business District. Improved restoration/blackstart times. Decreased power losses.

Chapter 2 – Distribution Grid Optimization 119 Project Description

In 1913, Dutch physicist Heike Kamer- successful superconducting cable demon- lingh Onnes of Leiden University won a strations at voltages up to 138 kV across the Nobel Prize in physics for his research in world. Earlier this year; the first commercial superconductivity. In 1911, he discov- implementation of superconducting cable ered that by cooling mercury using liquid was completed in Essen, Germany, where helium to -452° F, its electrical resistance a 1 km long, 10 kV, superconducting cable goes to zero. The main benefit of super- was installed to interconnect two substa- conducting wire is that it has nearly 200 tions for grid reliability purposes. times the current-carrying capability as a In July 2014, American Superconductor similarly sized wire of traditional conduc- (AMSC), a global energy solutions provider, tors, such as copper. In addition, it can be jointly announced with ComEd that the util- designed with inherent fault-current-limit- ity agreed to develop a deployment plan for ing capabilities that are not possible with AMSC’s high-temperature superconductor conventional conductors. technology and build a superconducting In the 100 years since the discovery of cable system that will strengthen Chicago’s superconductivity, many breakthroughs electric grid. The Resilient Electric Grid have occurred, and there have been several (REG) effort is part of the U.S. Department

Downtown Chicago "Loop" area.

120 Innovations Across The Grid of Homeland Security (DHS) Science and can carry as much power as twelve con- Technology Directorate’s work to secure the ventional 12 kV feeders. The single triax- nation’s electric power grids and improve ial superconductor cable design can be resiliency against extreme weather, acts of installed in a single duct reducing the size terrorism, or other catastrophic events. of the duct package required. The triaxial cable, including the cryostat pipe, has a The Chicago Superconductor project will diameter around six inches. A cryogenic connect several of Chicago’s Central Busi- cooling system will be installed to maintain ness District substations with a supercon- the liquid nitrogen temperatures around ductor cable system at 12 kV to enhance 70° Kelvin (-334° F). the electric grid. The total cable length is approximately 3.8 miles, making this instal- ComEd is partnering with AMSC and DHS lation the largest superconductor cable sys- to perform a 6 month feasibility study as tem in the world. This project will serve as part of a 4 year project that would lead to a platform to scale the use of superconduc- the superconducting cable loop installation tor cable systems worldwide. in the heart of downtown Chicago. Given the significant level of external funding and The cable will be installed in a conduit and the size and scale of the project, one of the manhole system using conventional meth- project goals is to significantly reduce the ods and pulling equipment. The super- cost of manufacturing and installing superconductor cable, due to its low resistance, conductor cable systems.

Project Contact Company Description

Robert Fournie Commonwealth Edison Company (ComEd) Manager, Transmission Line Engineering is a unit of Chicago-based Exelon Corpo- [email protected] ration (NYSE: EXC), the nation’s leading 630.437.2844 competitive energy provider, with approximately 6.6 million customers. ComEd provides service to approximately 3.8 million customers across northern Illinois, or 70 percent of the state’s population. For more information visit ComEd.com, and connect with the company on Facebook, Twitter, and YouTube.

Chapter 2 – Distribution Grid Optimization 121 “Digital x-ray technology helps Con Edison reduce the inspection time and better identify incipient electrical failures across 800 miles of underground transmission cables.” DISTRIBUTION GRID OPTIMIZATION SYSTEMS INTEGRATION | POINT SOLUTIONS | INTELLIGENT PLATFORM

Consolidated Edison Company of New York Digital X-Ray Technology

Technology Project Highlights

Partner(s) Innovative new technology improves x-ray imaging VJ Technologies of underground transmission feeders, allowing non-intrusive in-service inspections. Enables enhanced x-ray image quality and digital archiving. Reveals hidden defects in underground equipment, avoiding outages. Eliminates use of radioactive elements, improving crew safety.

Chapter 2 – Distribution Grid Optimization 123 Project Description

Consolidated Edison Company of New Despite the disadvantages of conven- York (Con Edison) has the largest under- tional technology, Con Edison still uses ground transmission system in North Amer- conventional x-ray to identify and quan- ica, including about 800 circuit miles of tify cable joint movement due to the transmission cables. The majority of the relatively low cost per single film. The system is comprised of high-pressure pipe- non-intrusive digital x-ray technology is type feeders, which comprise hundreds of used when conventional x-ray inspection cable sections connected by splices (joints) results identify joints that require more in underground manholes. If a joint fails, it thorough inspection. leads to a very costly and time-consuming repair or replacement that requires exten- The digital x-ray technology uses a cath- sive feeder outage time. Therefore, feeder ode ray tube as a source and digital image joints must be inspected periodically for capture device, eliminating the radioactive signs of damage or future failure. source and chemical processing of films. It is also able to digitally transfer and enhance In the past, the only feasible way to inspect captured images. The Con Edison team, feeder joints without service disruption has working with VJ Technologies, has devel- been the use of conventional x-ray imag- oped a technique to optimize x-raying high ing, utilizing radioactive isotope Cobalt-60, voltage underground transmission joints which requires special safety precautions, while maximizing the viewing window. with film as the imaging medium. There are several limitations to this approach, The digital x-ray technology started as an including difficulties in interpreting the R&D project in 2011 and developed to a image, limited dynamic range, lack of digi- service contract after extensive laboratory tal image for review and archiving, and the and field tests proved the sensitivity and long delays associated with analog image effectiveness of the digital x-ray inspection transfer and inspection. to identify cable joint mechanical and electrical condition. The engineering team at Con Edison has demonstrated and qualified an innovative Use of the digital x-ray technology in two high power digital x-ray instrument that can cases has resulted in the identification of be used for non-intrusive in-service inspec- incipient electrical failures. In one case, tions of high voltage underground trans- a 345 kV joint was identified for internal mission feeders. The digital x-ray provides inspection, and in the second case a 138 kV clearer images and details of the internal joint was identified for internal inspection. components/material of a joint that are In both cases, after the joints were opened, used to assess its condition. extensive electrical damage was observed.

124 Innovations Across The Grid Transmission cable splice x-ray.

It was verified that if these joints have been inspection of underground transmission left in service, they would have experienced feeder joints (every 6–12 months) that have electrical failures. been previously identified as requiring periodic inspection. Con Edison will con- Today, Con Edison has established a joint tinue their effort to improve the digital x-ray inspection program based on digital methodology and technique to increase its x-ray technology, which involves periodic effectiveness and reduce inspection time.

Project Contact Company Description

Arie Makovoz Consolidated Edison Company of New Senior Engineer York (Con Edison), a regulated utility, pro- [email protected] vides electric service in New York City 212.460.2914 (except for a small area of Queens), and most of Westchester County. The company provides natural gas service in Manhat- tan, the Bronx, and parts of Queens and Westchester. Con Edison also owns and operates the world’s largest district steam system, providing steam service in most of Manhattan.

Chapter 2 – Distribution Grid Optimization 125 “By reducing the risk of a large network outage, improving operational flexibility, and enhancing reliability, dual-feeder circuit breakers support Con Edison’s 3G System of the Future initiative.” DISTRIBUTION GRID OPTIMIZATION SYSTEMS INTEGRATION | POINT SOLUTIONS | INTELLIGENT PLATFORM

Consolidated Edison Company of New York Dual-Feeder Circuit Breaker

Technology Project Highlights

Partner(s) New compact breaker technology improves utilization ABB of existing substation footprint. Potential to expand substation breaker capacity of 45 percent of Con Edison 27 kV substations. Improves operational flexibility. Enables network reliability enhancement. Reduces risk to field crews.

Chapter 2 – Distribution Grid Optimization 127 Project Description

The need for electricity will continue to increase in Consolidated Edison Company of New York's (Con Edison’s) service area, but the space available for building new substations is scarce. Associated new distribution lines will also be difficult to route because of an already-crowded underground environment that accommodates dense concentrations of telephone lines, optic fiber, subways, water and sewer lines, and energy delivery systems. Con Edi- son has undertaken a long-term initiative, called 3G System of the Future, with the goal of producing new design and build approaches for substations and electric distribution installations in urban settings. Built-in ground and test device in dual- The 3G designs are based on the strategy feeder circuit breaker. to defer or minimize costs, maintain reliability and customer service, increase asset uti- method is to add a new medium-voltage lization, reduce street congestion, increase feeder with the associated station breaker operational flexibility, and reduce the risk for protection in order to supply the load of a large network outage. Dual-feeder area. Some of the existing substations circuit breakers support the 3G System of cannot accommodate the space to install the Future design concept of reducing the a new breaker position within the existing risk of a large network outage, improving footprint of the substation. Expanding the operational flexibility, and enhancing reli- existing substation, which may also require ability. In May, 2014 Con Edison installed the acquisition of nearby real estate and a compact dual-feeder breaker at one sub- extending the substation electrical bus, is station that supplies demand in Brooklyn, highly costly and often not feasible. The NY. This is the first installation of this new innovative dual-feeder circuit breaker tech- breaker technology on the Con Edison nology was developed in order to create distribution network. new feeders for distribution networks within the boundaries of the existing substation. The driver of this project is enhancing the reliability in one of the fast growing Brook- This project succeeded by installing two lyn networks. In order to improve the reli- new compact SF-6 insulated breakers ability of the network, the conventional within the boundaries of an existing single

128 Innovations Across The Grid air-insulated breaker at the substation. The will enhance safety and improve feeder dual-feeder breaker installation improves restoration time because the new feeder the reliability of the network by maintaining breaker can be visually verified through a the existing medium-voltage feeder and viewing glass and grounded by the push installing an additional breaker in order to of a button. The new SF-6 breaker was protect and establish a new feeder. designed to maintain all required safety The new compact circuit breaker technol- protocols which are needed to process the ogy is equipped with a built-in ground and medium-voltage feeder during a fault. test device, remote control capability, and a Approximately 45 percent of Con Edison’s viewing window for field verification. These innovative features eliminate the need for existing 27 kV substations can accommo- lifting a heavy separate testing device that date the installation of dual-feeder circuit is required for processing the medium-volt- breakers. The successful demonstration of age class feeder during a fault. The elimi- this new technology paves the way for new nation of a separate ground and test device substation construction in the future.

Project Contact Company Description

Baeth Fanek Consolidated Edison Company of New Section Manager York (Con Edison), a regulated utility, pro- [email protected] vides electric service in New York City 212.460.3287 (except for a small area of Queens), and most of Westchester County. The company Patrick Dilillo provides natural gas service in Manhat- Technical Specialist tan, the Bronx, and parts of Queens and [email protected] Westchester. Con Edison also owns and 212.460.4648 operates the world’s largest district steam system, providing steam service in most of Manhattan.

Chapter 2 – Distribution Grid Optimization 129 “To improve system reliability, DTE Energy is working with IBM to develop an Outage Prediction and Response Optimization system that more accurately predicts damage location, occurrence time, and outage severity of future weather events in order to optimize preparation and crew placement.” DISTRIBUTION GRID OPTIMIZATION SYSTEMS INTEGRATION | POINT SOLUTIONS | INTELLIGENT PLATFORM

DTE Energy Leveraging Hyper-Localized Weather Forecasting for Distribution System Damage Prediction

Technology Project Highlights

Partner(s) Enabled a predictive engine that correlates damage IBM history with weather features at the sub-station level, and incorporates weather forecasts from IBM’s Deep Thunder hyper-localized weather forecasting system 72 hours into the future for the DTE service territory. Optimizes utility response to outage events to reach maximum restoration up to 24 hours earlier than current practices. Operationalizes weather forecasts for utility use. Ongoing accuracy validation and optimization of damage prediction engine based on occurring events.

Chapter 2 – Distribution Grid Optimization 131 Project Description

At DTE Energy, the reliability of electrical Fundamentally, OPRO is a correlation power delivered to customers and cus- engine that matches weather features with tomer satisfaction with DTE Energy’s ability damage outcomes from actual historical to provide uninterrupted services moti- data to predict future damage based on vates the effort to innovate. To improve forecasted weather. DTE is leveraging the system reliability, DTE Energy is working IBM Deep Thunder weather system to pro- with IBM to develop a system that inte- vide ‘hyper-localized’ weather forecasting for the DTE service territory and OPRO to grates hyper-localized weather forecast- predict damage to the distribution system ing models with the electrical distribution at the sub-station level up to 72 hours in network damage history and asset health advance of the actual conditions occurring. characteristics to more accurately predict The weather features provided to DTE from damage location, occurrence time, and Deep Thunder are in ten minute intervals outage severity of future weather events in over a 72-hour period for each specific fea- order to provide utilities an opportunity to ture (wind gusts, storm intensity, precipita- optimize preparation and crew placement tion rate, etc.), at a precision level of as little planning and to begin repair work sooner. as a single square kilometer. This ongoing damage prediction project is called Outage Prediction and Response Optimization (OPRO).

IBM Deep Thunder hyper-localized weather interface.

132 Innovations Across The Grid The desire is to support decision making relative to the overall development of the at DTE by understanding the magnitude of project. Early indications support the accu- expected impact, the location of the dam- racy of location and timing, with the great- age within the DTE service territory, and the est challenges related to forecasting event time range within which damage will occur. intensity levels. It is anticipated that the results from OPRO One area of particular attention for DTE and will support utility decision making around IBM in further innovation of this technology three dimensions of repair planning: impact is to leverage the power of unstructured magnitude (as measured by class from ‘no data in the form of human experience. DTE impact’ through ‘catastrophic’), location (by believes there is a rich degree of experi- quadrant) within the service territory, and ential understanding within their existing timing (relative to scheduled crew shifts). In workforce of the impact of specific weather this way, DTE Energy expects to construct a conditions to the distribution system. It is flexible application of both the value deliv- DTE’s and IBM’s desire to facilitate appli- ered through a hyper-localized weather cation of that knowledge base by build- forecasting system (Deep Thunder) and ing modeling features into OPRO to apply a damage correlation engine (OPRO) ‘what if’ conditions to the damage correla- to the utility’s distribution operations tion engine underlying OPRO. These fea- business processes. tures are in development with IBM now, with expected availability in the 2nd quar- OPRO development has achieved the ter of 2015. Although DTE is just launching ‘establishment’ phase and is entering into into the stage of validating real-time oper- the ‘operational’ phase. The primary focus ational results, the utility is quite pleased in this phase is to validate the accuracy of that the foundational platform to leverage the current model, and incorporate on-go- historical experience has been made func- ing damage events to improve the accu- tional, and that the promise of a high value racy of the model through the upcoming business result is deemed to be plausible. winter, spring, and summer storm seasons. OPRO provides the opportunity to supplant While the utility does scrutinize the accu- current practices and allow DTE to deploy racy of the Deep Thunder forecasts at the maximum restoration levels 24 hours ear- ‘hyper-localized’ level, DTE’s real focus in lier during a weather event to shorten this phase is the efficacy of the damage the duration of customer power outages. prediction engine from OPRO at the business operational level — described as mag- OPRO is one component of DTE Energy’s nitude class, quadrant location, and shift partnership with IBM and other operating onset. This is precisely where DTE stands utilities called the Smarter Energy Research

Chapter 2 – Distribution Grid Optimization 133 Institute (SERI). The underlying principle of SERI is to augment utility companies with capability and capacity for sustained research to solve important, persistent matters of concern to the business operation. In addition to OPRO’s work in grid damage prediction, DTE has also elected to pursue research projects with independent value to DTE in the areas of logically inferred distribution connectivity and asset health. DTE intends to further leverage the research from connected distribution model and asset health projects for deeper insights with OPRO’s damage prediction model OPRO substation-level risk display. moving forward.

Project Contact Company Description

Gary Gauthier DTE Energy is one of the nation’s Manager, IT Electric Reliability Strategy & largest diversified energy compa- Research nies. Headquartered in Detroit, [email protected] Michigan, DTE Energy is involved in 313.235.5298 the development and management of energy-related businesses and Gerard Labut services nationwide. Its operating Manager, Distribution Operations units include an electric utility serving [email protected] 2.1 million customers in Southeast- 313.235.8111 ern Michigan and a natural gas utility serving 1.2 million customers in Mich- igan. The DTE Energy portfolio also includes non-utility energy businesses focused on power and industrial projects and energy trading. Information about DTE Energy is available at dteenergy.com, twitter.com/dte_energy and facebook.com/dteenergy.

134 Innovations Across The Grid

“Advanced asset visibility supports asset management and operations strategy, helping DTE Energy make strategic decisions about how to allocate capital investments across the network.” DISTRIBUTION GRID OPTIMIZATION SYSTEMS INTEGRATION | POINT SOLUTIONS | INTELLIGENT PLATFORM

DTE Energy Sensors for a Predictive Grid in the Motor City

Technology Project Highlights

Partner(s) Implementation of 81 smart grid sensors and predic- Tollgrade tive grid analytics platform at 9 substations and 24 Communications, Inc. feeders within DTE Energy’s service area. Low-cost sensor solution captures real-time fault current and waveform data. Integrated into existing Tropos wireless network. Disturbance signature analysis and predictive analytics improve capital investment decision making, decrease unplanned outages, and improve outage response. Inductively powered sensors are lightweight and easy to install with hot-stick.

Chapter 2 – Distribution Grid Optimization 137 Project Description

In order to improve system reliability by Energy needed to find a battery-free and predicting and preventing outages, to maintenance-free solution that was easy to increase situational awareness, to help install and would not require circuits to be safely restore power more quickly after shut down during installation. outages, and to inform capital investments around aging assets, DTE Energy sought a Finally, DTE Energy, like most North Amer- low-cost solution to get more real-time reli- ican utilities, found retrofitting old substa- ability data out of its distribution grid, par- tions could be as expensive as building a ticularly on poorly performing and older new substation. By finding a less expensive legacy circuits. monitoring solution with built-in wireless communications, the utility could provide Wanting to move away from traditional Fault planners and asset managers with the crit- Current Indicators (FCIs), it was important ical data they needed, without having to to DTE to incorporate real-time fault data rebuild substations. with waveform capture that could be analyzed to identify precursors to grid out- In response to these needs, DTE Energy ages and alert crews to line disturbances. installed 81 Tollgrade Smart Grid Sensors Equally important was the impact of instal- and the Predictive Grid® Analytics platform lation and maintenance requirements. DTE at 9 key substations and 24 feeders within

Tollgrade LightHouse architecture.

138 Innovations Across The Grid Integration of sensor data with multiple DTE Energy systems. its distribution network. The Tollgrade from where it is pushed to DTE Energy’s data solution offered a number of advantages, historian, geographical information system including light weight; easy installation with (GIS), and distribution management system a hot-stick; inductive power from the mon- (DMS). By integrating these systems, DTE itored line (requiring no batteries or solar Energy has achieved enhanced situational panels); near-zero maintenance; an aver- awareness about grid conditions, fault pre- age 20 year lifespan; and easy integration diction, and real-time diagnostics. with DTE Energy’s existing Itron smart meter and ABB Tropos wireless mesh networks. Currently, DTE Energy is completing the integration of the LightHouse platform When a storm hits, information from the into its pre-existing wireless mesh network, sensors can be used to improve crew safety provided by ABB Tropos, as part of its Itron by showing the status of the load on the advanced metering infrastructure (AMI) portion of the grid they are working on. By system. By using the predictive grid analyt- knowing what portions of the network are ics capabilities of the LightHouse software, de-energized, crews can more safely work DTE Energy can start identifying distur- on the network. Once repairs are com- bance precursors to avoid outages. Cost plete, crews get confirmation that power is savings occur not only in reduced drive successfully restored. times and crew overtime, but in other unex- Tollgrade’s medium voltage sensors gather pected ways as well. For example, instead real-time data using DNP3 protocol and of long lead times and costly substation send it to the LightHouse Sensor Manage- upgrades, now it takes only a few thousand ment System (SMS) software for analysis dollars to monitor a substation remotely.

Chapter 2 – Distribution Grid Optimization 139 Additionally, the ability to integrate Light- In June 2014, DTE Energy and Tollgrade House into the existing wireless RF mesh worked with the Clinton Global Initiative network saves money by leveraging the to make a “Commitment of Action” that communications infrastructure that the pledges to bring comprehensive grid mod- company had already deployed. ernization in Detroit. The commitment, entitled “Building a Predictive Grid for the Before LightHouse, DTE Energy did not Motor City,” will show how other utilities have a good way to monitor its legacy can take the same proactive measures DTE network in real time. Advanced asset vis- Energy is standardizing, to decrease the ibility supports asset management and number of outages, decrease customer operations strategy, helping DTE to make minutes without power, improve crew more strategic decisions about how to safety and save money. best allocate capital investment across their network.

Project Contact Company Description

Hawk Asgeirsson DTE Energy is one of the nation’s Manager, Power Systems Technologies largest diversified energy compa- [email protected] nies. Headquartered in Detroit, 313.235.9371 Michigan, DTE Energy is involved in the development and management of energy-related businesses and services nationwide. Its operating units include an electric utility serving 2.1 million customers in Southeast- ern Michigan and a natural gas utility serving 1.2 million customers in Mich- igan. The DTE Energy portfolio also includes non-utility energy businesses focused on power and industrial projects and energy trading. Information about DTE Energy is available at dteenergy.com, twitter.com/dte_energy and facebook.com/dteenergy.

140 Innovations Across The Grid

“Recognizing the challenges from distributed energy resources and interoperability, Duke Energy created a way to make assets interoperable using a low-cost, open-source solution while enabling new ways to optimize the grid with distributed energy resources.” DISTRIBUTION GRID OPTIMIZATION SYSTEMS INTEGRATION | POINT SOLUTIONS | INTELLIGENT PLATFORM

Duke Energy Field Message Bus Interoperability and the Coalition of the Willing Project

Technology Project Highlights

Partner(s) Demonstrated interoperability between field devices Accenture from six vendors.

Alstom Grid Created a “publish and subscribe” architecture for a field message bus. Ambient Corporation Created voltage management and solar-smoothing Echelon algorithms that produced improved voltage quality and tighter demand and generation following. S&C Electric Company Demonstrated operational efficiency gains such Verizon Wireless as reduced latency of communications and increased resiliency.

Chapter 2 – Distribution Grid Optimization 143 Project Description

Integrating distributed energy resources such solutions are expensive, and these (DERs) such as photovoltaics, battery stor- implementations tend to make information age, advanced demand response, plug-in technology infrastructure costly and diffi- electric vehicles, and smart appliances cult to maintain. In fact, Duke Energy uti- causes a wide variety of issues with power lizes thousands of vendors and purchases sector infrastructure. DERs can cause hundreds of different assets, making reverse power flow, create safety issues, and interoperability a significant challenge. make the electric grid unstable. However, proper management and optimization of Recognizing the challenges from DERs and DERs can enable a stronger, more efficient interoperability, Duke Energy employees power grid; an opportunity to sell addi- created a way to make assets interopera- tional products and services to customers; ble using a low-cost, open-source solution and a safer electrical infrastructure. Current while enabling new ways to optimize the infrastructure cannot react fast enough to grid with DERs. The solution is called the sudden changes from DERs. For example, field message bus. The field message bus as clouds pass by overhead, a solar panel is ubiquitous in modern communications, can change from full energy production to used by companies like Facebook and zero and back to full production in a matter LinkedIn, and found in Apple and Android of seconds. Traditional utility infrastructure smart phones. Simply put, a field message takes minutes to respond. At Duke Energy, bus is a piece of software that translates slow response times limit the ability to opti- data into one common language and allows mize these assets and requires significant data to be easily shared among peers. financial investment by the utility in protec- Translation of data is important to enable tive equipment to limit problems inherent interoperability because each asset speaks in the variability of distributed resources. a different “language” per se. Translation Another huge challenge for utilities is get- allows each asset to understand each other, ting assets to be interoperable in an eco- regardless of who made the asset. Simi- nomic way. Today, only assets purchased larly, sharing data on a peer-to-peer basis is from a single vendor can be relied upon critical to interoperability because it allows to be interoperable. Yet, no vendor makes data to be quickly delivered where needed assets for every use case, and neither does without having to rely on a centralized “par- any utility purchase all assets from only one ent” system to tell the data where to go. vendor. Often, utilities purchase expensive, And rapid delivery of data is important to proprietary software to force different ven- deal effectively and economically with vari- dors’ assets to work together. However, able DERs.

144 Innovations Across The Grid Demonstrating the value of distributed intelligence and interoperability.

Led by Duke Energy, a coalition of six com- Duke Energy has successfully demon- panies, including Accenture, Ambient, strated the field message bus in lab and Alstom Grid, Echelon, S&C Electric, and field trials installed at the McAlpine sub- Verizon demonstrated the interoperability station in Charlotte, N.C. Duke Energy has of hardware, software, and communica- successfully connected a distribution man- tions. Duke labeled this effort the “Coali- agement system, smart meters, communi- tion of the Willing”. Each company’s prod- cation nodes, cellular modems, capacitor ucts and services are linked together using controls, battery management systems, an open-source, standards-based field solar inverters, and transformers from mul- message bus. Each company exposed data tiple vendors. The use of this type of tech- locally to the field message bus via a stan- nology enabling interoperability between dards-based interface to create interoper- devices was achieved in four weeks and ability, increase functionality, and create for under $1,000, dispelling the notion that greater value. The field message bus pro- interoperability is too expensive and will vides support for distributed applications take too long to achieve. The solar-smooth- that are wirelessly connected to assets in ing algorithm was able to closely follow the the field at the grid edge. volatility of the PV by reducing the analysis

Chapter 2 – Distribution Grid Optimization 145 and response times for injecting a battery Duke’s response from industry, manufactur- from over one minute to under one half ers, and the media has been very positive. So second. Using the field message bus, the much so that Duke’s second phase of coali- data from these devices can now be shared tion work will include 28 companies focused on providing more interoperable solutions. locally without requiring costly integration, providing for more efficient decisions with lower latencies. Changes in equipment status can be backhauled to higher-priority systems to update system models or make more complex decisions.

Project Contact Company Description

Jason Handley Duke Energy is the largest electric Director – Smart Grid Emerging power holding company in the Unit- Technology and Operations ed States, supplying and delivering [email protected] energy to approximately 7.2 million 704.382.9787 U.S. customers. Duke Energy has approximately 57,500 MW of electric generating capacity in the Carolinas, the Midwest, and Florida – and natural gas distribution services in Ohio and Kentucky. Headquartered in Charlotte, N.C., Duke Energy is a Fortune 250 company traded on the New York Stock Exchange under the symbol DUK.

146 Innovations Across The Grid

“Local optimization in grids with large amounts of distributed energy resources will be a key feature in future power grids and in tomorrow’s smart cities.” DISTRIBUTION GRID OPTIMIZATION SYSTEMS INTEGRATION | POINT SOLUTIONS | INTELLIGENT PLATFORM

Électricité Réseau Distribution France (ERDF) Nice Smart Solar District

Technology Project Highlights

Partner(s) Large-scale integration of PV and energy storage. Alstom Distribution grid optimization and islanding operation. Saft 2.5 MW of solar generation, 1.5 MW of electricity storage, 3.5 MW of load shedding capacity, and 2,500 smart meters.

Chapter 2 – Distribution Grid Optimization 149 Project Description

The Nice Smart Solar District (Nice Grid) aggregator, and the distribution system is situated in an “electrical peninsula” near operator. The third objective is to demon- Carros, located in the southeastern region strate how to operate a small pocket of the of France. It is one of the six smart grid low voltage network in islanding mode demonstration projects funded by the Euro- during a limited period of time. ERDF pean Union’s Grid4EU program. The proj- will be able to route energy to where it is ect commenced in 2011, and is expected to needed, and end users will be able to vol- be completed in 2016. It brings together untarily control their energy consumption an industry consortium led by Électricité and monitor usagevia smart meters. In this Réseau Distribution France (ERDF), Alstom, way, the Nice Grid project will demonstrate Électricité de France (EDF) and Saft. the impact of lowering energy demand and

reducing CO2 emissions, while maintaining Nice Grid consists of seven solar districts, the quality and security of the network. each represented by one secondary substation. Hundreds of customers will be Nice Grid is using Alstom’s Distributed able to participate in the demonstrations Energy Resource Management Solution via 2,500 smart meters. The system will (DERMS) to interconnect smart homes, include distributed resources that will pro- smart industrial buildings, energy storage, vide 2.5 MW of solar generation, 1.5 MW and a large number of solar panels, gath- of electricity storage, and 3.5 MW of load ering them into a single integrated local- shedding capacity. ized part of the power grid. The DERMS will allow for more optimized energy con- Électricité Réseau Distribution France sumption and production in the grid while (ERDF) has to integrate these distributed islanded or in grid-connected mode. The energy resources (DER) into its daily grid DERMS is an integral part of the Network and commercial operations. In this regard, Energy Management (NEM). Most distribu- there are key tasks. The first is how to man- tion networks today are unable to accom- age the smooth injection of decentralized modate new types of bi-directional energy and intermittent renewable energy into the flow in distribution grids. However, local distribution grid. The project will integrate optimization and balance between produc- storage systems and deploy centralized tion, consumption, and storage appears demand management to accomplish this to be the right approach to avoid massive task. The second task is how to enable con- investments in the distribution networks. sumers to become active participants in the local energy balance via load shifting. The The Nice Grid project addresses issues that project will include design and validation utilities in the U.S. and other parts of the of a new model of interactions between world expect to face due to higher pene- energy actors: consumer, commercial trations of photovoltaic systems and other

150 Innovations Across The Grid DERs. Local optimization in grids with large Nice Grid will also study the feasibility of amounts of DERs will be a key feature in operating a low voltage feeder (e.g., with future power grids, and important com- 20 customers and 250 kW of demand) ponents in tomorrow’s smart cities. The portion of the grid that is only supplied by solar generation and batteries, and man- NEM and DERMS deployed at Nice Grid aged by a power converter with no rotating are examples of the innovative solutions for machines to determine the performance of energy management that will be designed zero or low inertia grid systems. Currently, based on a decentralized and multilayer the NEM is capturing actual operational architecture, where local intelligence and data and key performance indicators in optimization can ensure system level reli- Nice Grid. ERDF will publish preliminary ability, resilience, and security of supply. results from the project in 2015.

Project Contact Company Description

Christophe Arnoult ERDF manages the public electricity distri- Project Director bution network for 95 percent of continen- [email protected] tal France. Every day, its 36,770 employees +(33) 04 96 20 10 96 oversee the operation, maintenance, and development of a nearly 1.3 million km network. www.erdf.fr.

Chapter 2 – Distribution Grid Optimization 151 “Leveraging investments in analytical algorithms, machine learning, data integration, and cloud-scale infrastructure, Enel is successfully identifying anomalous meter activity.” DISTRIBUTION GRID OPTIMIZATION SYSTEMS INTEGRATION | POINT SOLUTIONS | INTELLIGENT PLATFORM

Enel Improving Smart Grid Reliability and Operational Efficiency

Technology Project Highlights

Partner(s) C3 Revenue Protection, C3 Predictive Maintenance, C3 Energy and C3 Residential systems deployed to 1 million meters in Italy. Planned deployment to 32 million meters across Italy, and 40 million meters worldwide. Machine learning delivers 93 percent accuracy in identifying cases of theft and meter malfunction. 50+ billion rows of data from 11 source systems integrated, normalized, and aggregated. Machine learning will improve grid reliability from 41 minutes SAIDI by predicting feeder failures.

Chapter 2 – Distribution Grid Optimization 153 Project Description

Enel, the largest power company in Italy and and capture additional revenues, Enel the second largest in the world, is deploy- deployed C3 Revenue Protection across ing C3 Energy smart grid analytics solutions one million meters in Italy. Implemented as its software platform for enabling smart in less than eight months, C3 Revenue Pro- grid and smart city services. Enel was the tection ultimately identified 93 percent of first utility in the world to replace traditional Enel’s non-technical loss cases through the electromechanical meters with digital smart initial deployment. The solution also identi- meters. By 2006, Enel had installed 32 fied new leads with similar patterns of theft million smart meters across Italy; Enel has or malfunction. since deployed a total of 40 million smart For the project, C3 Energy integrated, nor- meters, representing more than 80 percent malized, and aggregated over 50 billion of the total smart meters in Europe. rows of data from eleven utility source sys- Like other utilities, Enel has been experi- tems, including the billing system, work encing non-technical loss, including energy order system, outage management sys- loss due to power theft; a cost typically tem, producer system, meter data man- subsidized across the customer base. To agement system, validated theft case data, more efficiently address this energy loss, external weather data, and Google for rectify malfunctions or unsafe conditions, address verification.

C3 Energy's analytics system architecture.

154 Innovations Across The Grid Leveraging investments in analytical algo- million meter demonstration, Enel and C3 rithms, machine learning, data integra- Energy are working to expand the deploy- tion, and cloud-scale infrastructure, Enel ment across Enel’s power distribution net- deployed 55 unique, sophisticated meter work in Italy, which services 32 million smart theft and malfunction analytics that iden- meters. In a subsequent phase, Enel and tified anomalous meter activity. Enel is C3 Energy expect to deploy these capa- leveraging these analytics to execute rule- bilities broadly across Enel Group’s distri- based and machine learning algorithms to bution network reaching a total of approx- unlock insight from both batch and stream- imately 40 million installed smart meters. ing data. Machine learning is the ability for In addition to C3 Revenue Protection, computers to learn without being explicitly Enel is leveraging C3 Energy’s platform programmed. C3 Energy solutions lever- and deploying additional applications to age advanced machine learning analytics expand on what will be the largest deploy- to continuously improve algorithms and ment of a SaaS smart grid analytics solution. generate increasingly targeted and accu- Moving forward, C3 Energy and Enel are rate results. enabling a step change in smart grid reli- The initial deployment proved that the C3 ability and operational efficiency through Energy platform could readily handle Enel’s predictive grid maintenance and advanced smart grid data processing and aggregation power fraud detection using C3 Energy needs. Based on the results from the one smart grid applications.

Project Contact Company Description

Jack Thirolf Enel is Italy’s largest power company and Regulatory Affairs Europe’s second listed utility by installed [email protected] capacity. It is a leading integrated player 202.609.7799 in the power and gas markets of Europe and Latin America, operating in 32 countries across 4 continents, overseeing power generation from over 95 GW of net installed capacity, and distributing electricity and gas through a network spanning around 1.9 million km to serve approximately 61 million customers.

Chapter 2 – Distribution Grid Optimization 155 “Through the use of new smart devices, data analytics, and network communications technology, FPL is building a more intelligent and flexible electric grid.” DISTRIBUTION GRID OPTIMIZATION SYSTEMS INTEGRATION | POINT SOLUTIONS | INTELLIGENT PLATFORM

Florida Power and Light Company Optimizing the Smart Grid to Enhance Service Reliability

Technology Project Highlights

Partner(s) Received $200 million grant from U.S. Department GE of Energy.

Landis+Gyr Installed 4.6 million smart meters and more than 11,500 intelligent devices on the electric grid ahead S&C Electric Company of schedule. Sentient Energy Achieved average annual reduction of 5.1 million minutes of customer power interruptions. Silver Spring Networks Proactively created more than 40,000 outage tickets using smart meter information. Expected operational savings of $30 million in 2014.

Chapter 2 – Distribution Grid Optimization 157 Project Description

In March 2013, Florida Power & Light Com- FPL’s major grid optimization develop- pany (FPL) completed its $800 million ments during the past year include: Energy Smart Florida program. The pro- Automated Feeder Switches (AFSs) gram was funded, in part, by a $200 million — FPL’s extensive deployment of auto- grant from the U.S. Department of Energy mated feeder switches has proven to in 2009. Since then, FPL has invested in be a productive investment. Located further expanding smart grid technology at key points along the grid, these throughout its system. switches identify and isolate faults and, if necessary, automatically reroute In 2014, these investments, including 4.6 power around problem areas. This million installed smart meters, continue to technology also helps pinpoint the enhance service reliability while giving cus- fault location, enabling faster resto- tomers unprecedented control over their ration – meaning fewer and shorter out- energy costs. FPL is re-engineering the way ages for customers. Through Q3 2014, it operates the electric grid. Its substan- FPL had deployed more than 1,000 tial investments are helping the company automated switches, avoiding more deliver reliable and affordable electricity than 300,000 customer interruptions. while creating the foundation for new, inno- FPL also is leveraging smart line sen- vative energy services. sors, or fault current indicators (FCIs), in By year-end 2013, FPL had installed more Miami-Dade County, and plans to accel- than 11,500 intelligent devices on its elec- erate deployment across its distribution tric grid and added enhanced digital tech- network in 2015. Similar to AFS technol- nology to all of its nearly 600 substations. ogy, these devices pinpoint fault loca- The new sensors and monitors, installed on tions and direct resources to identify and transformers, breakers and battery banks, are isolate damage more quickly. Integrat- helping the company determine the health ing them into FPL’s distribution manage- of its equipment, predict potential issues ment system and mobile applications before they disrupt service to customers, allows operators, dispatchers, and field and restore power faster following outages. crews to work more effectively in restoring power following unplanned outages. FPL continues to see ongoing improve- Restoration Spatial View (RSV) — The ments and productivity savings, including company’s restoration specialists can an average annual reduction of 5.1 mil- now view extensive network information lion minutes of power interruptions. Over- on iPads using FPL’s “Restoration Spa- all operational efficiencies in 2014 are tial View” (RSV) application. This tool expected to produce savings of more than puts smart grid data into the hands of $30 million. field crews. Developed in-house, RSV

158 Innovations Across The Grid combines outage tickets, weather infor- restoring power before customers call mation, electrical network information, to report them. In the past, a customer time sensor data, customer energy con- reported an outage and an FPL cus- sumption and voltage, restoration crew tomer service representative asked location, meter status, and more — all questions to identify the problem and layered onto a map view on an iPad. its location. Today, internally devel-

oped software uses smart meter data RSV uses smart meter information and to proactively generate outage tickets telemetry from substation and distri- without customer input. Since the start bution automation devices to provide of system deployment (June 2013), a holistic view of the customer experi- FPL has proactively created more than ence. It incorporates features like resto- 40,000 tickets representing more than ration confirmation, which allows resto- 500,000 customers. ration crews to confirm the power status Proactive Transformer Replacement of all smart meters affected by an out- — FPL uses smart grid technology to age before they leave the area. This has help predict transformer equipment helped FPL identify embedded outages, failure. The company’s algorithm iden- resolve problems on the first visit, avoid tifies transformers with high voltage unnecessary truck rolls, reduce repeat readings over more than 48 continu- calls from customers, and improve cus- ous hours, ruling out temporary voltage tomer satisfaction. spikes related to switching or equip- Proactive Outage Ticket Creation — FPL ment issues. To date, the company has has developed new tools to automat- proactively replaced more than 1,000 ically detect many outages and begin distribution transformers, preventing

FPL's Integrated Grid.

Chapter 2 – Distribution Grid Optimization 159 potential unplanned outages for an esti- build a more intelligent and flexible elec- mated 10,000 customers. Pre-planned tric grid. The next step in the company’s transformer replacements have also network modernization is to expand the improved workforce productivity and reduced employee overtime. scale and scope of its digital footprint, further enhancing service reliability and oper- Today, FPL remains committed to developing new smart devices, data analytics, and ational efficiencies that will help FPL main- network communications technology to tain low bills for residential customers.

Project Contact Company Description

Bryan Garner Florida Power & Light Company is the Manager, FPL Communications third-largest electric utility in the United [email protected] States, serving approximately 4.7 mil- 561.694.4469 lion customer accounts across nearly half of the state of Florida. As of year- end 2013, FPL’s typical 1,000-kWh residential customer bill is approximately 25 percent lower than the national average and the lowest in Florida among reporting utilities. FPL’s service reliability is better than 99.98 percent, and its highly fuel-efficient power plant fleet is one of the cleanest among utilities nationwide. The company was recognized in 2014 as the most trusted U.S. electric utility by Cogent Reports, and has earned the national Service- One Award for outstanding customer service for an unprecedented ten consecutive years. A leading Florida employer with approximately 8,900 employees, FPL is a subsidiary of Juno Beach, Fla.-based NextEra Energy, Inc. (NYSE: NEE). For more information, visit www.FPL.com.

160 Innovations Across The Grid

“Enhanced monitoring on the secondary network in Boston provides NSTAR with unprecedented visibility in grid operations, improving work crew efficiency and distributed energy resource integration.” DISTRIBUTION GRID OPTIMIZATION SYSTEMS INTEGRATION | POINT SOLUTIONS | INTELLIGENT PLATFORM

NSTAR Urban Grid Monitoring and Renewable Integration

Technology Project Highlights

Partner(s) NSTAR has installed over 10,000 sensors to monitor Digital Grid the secondary network in Boston, MA. Technologies, Inc. Increased visibility into system conditions improves efficiency of work crews, eliminates blind truck-rolls, and reduces risk of manhole fires and major outages. Real-time and near-real-time systems data are integrated into maintenance and future capital expansion plans.

Chapter 2 – Distribution Grid Optimization 163 Project Description

In 2011, NSTAR, a Northeast Utilities com- Data is informing preventative maintenance pany, launched the Urban Grid Monitoring plans, making crews more efficient. For and Renewable Integration (UGM) project major nodes, NSTAR is monitoring approxi- to enhance network grid monitoring on the mately 150 manholes with the use of 6,480 secondary network in Boston. The moni- sensors in downtown Boston. Monitoring toring will provide unprecedented visibility major nodes gives real time information on into the operation of the grid, increasing manhole current (amps) and temperature, NSTAR’s knowledge of system conditions eliminating the need for blind truck-roles and ability to integrate solar photovoltaics and preventing manhole fires and major (PV), plug-in electric vehicles, and battery storage. Results and knowledge acquired outages. The enclosure injects a power from the project will benefit secondary area line communication signal at the man- networks in urban areas across the country. hole onto the secondary network. Nearby vault relays receive these packets of data With installation completed in Decem- and convert them into another message ber 2013, information from over 10,000 packet that is then injected onto the feeder sensors is collected and stored at vari- cable. The substation receiver receives this ous points in the grid, from substations to manholes. Some information is visible message and processes data to be inter- in real time, allowing for an operator to preted by the graphic interface at a central monitor the condition of manholes in the computer station. secondary network.

User interface shows feeder level data.

164 Innovations Across The Grid For minor nodes, NSTAR is monitoring approximately 350 manholes through 4,386 sensors. These manholes are equipped with sensor packages that monitor current and temperature. Information is then gathered and stored in a terminal box and collected by an automated meter reading (AMR) truck. While information is not in real time, it still allows for enhanced monitoring of the secondary area network. Like major nodes, this information allows for preventative maintenance, making crews more efficient and lowering the risk for major outages, manhole fires, and the need for blind truck roles. Transmitting secondary network grid data to operations center.

Project Contact Company Description

Amin Jessa NSTAR, a Northeast Utilities company Director Distribution Engineering (NYSE: NU), transmits and delivers electric- [email protected] ity and natural gas to 1.4 million custom- 617.541.7002 ers in Eastern and Central Massachusetts, including more than one million electric customers in 81 communities and 300,000 gas customers in 51 communities. For more information, please visit our website: www.nstar.com.

Chapter 2 – Distribution Grid Optimization 165 “OG&E's '100 Analytics Apps' is an aspirational initiative to develop applications that utilize AMI data to create value.” DISTRIBUTION GRID OPTIMIZATION SYSTEMS INTEGRATION | POINT SOLUTIONS | INTELLIGENT PLATFORM

Oklahoma Gas & Electric 100 Analytics Apps

Technology Project Highlights

Partner(s) Aspirational effort to develop applications that utilize Silver Spring Networks AMI data to drive value for improved operations or expanded customer offerings. Integrates AMI data into OMS and other applications for improved outage management and response. Combines AMI data with data from other applications to create system diagnostics and improve decision making.

Chapter 2 – Distribution Grid Optimization 167 Project Description

Since deployment of its smart grid technol- applications for predictive maintenance, ogy platform, OG&E has been looking at allowing OG&E to identify equipment ways to leverage the almost overwhelming issues before they result in an outage. amount of data that is available as a result. Additional analytics will be created for AMI The “100 Analytics Apps” project is an aspi- network diagnostics. The smart grid local rational effort with Silver Spring Networks area and wide area networks have become to develop applications that utilize AMI a critical part of OG&E’s overall smart grid data to create value for improved opera- technology platform. Changing conditions tions or expanded customer offerings. on the grid (weather, load growth, change OG&E has identified several potential use of seasons, outages, etc.) create a dynamic cases and is starting development on the environment for network operations. The first three to five apps as a proof of concept. network requires constant monitoring and At this point, OG&E anticipates 3–6 months requires additional analytic applications to get the first few proof of concept apps to diagnose network problems before into production, but expects to shorten they significantly impact latency of data. this timeframe to roughly three months for Analytic applications can help OG&E plan subsequent app development by reduc- and make network improvements before ing labor involved with deploying the latency becomes a significant problem. software platform. Other analytic applications under develop- Some example analytic applications would ment will help expand customer offerings. utilize the phase detection, power qual- As OG&E is able to use data and analytic ity, and voltage data from smart meters applications to better understand, manage, to identify and respond to nested and and respond to all kinds of outages, it will single customer outages more quickly. be able to provide customer offerings such These analytics would allow the utility as outage notification, outage restoration to identify customer-side outages with notification, and even provide estimated certainty, likely eliminating over 10,000 time of restoration. Meter data can also unnecessary truck rolls annually. They be used to develop analytic applications would also help identify more difficult to to help commercial and industrial custom- diagnose outage situations, such as sin- ers better understand what processes or gle-phasing or intermittent outages. The equipment could be causing power factor same data can be used to create analytic issues, thus helping them avoid penalties.

168 Innovations Across The Grid There are virtually unlimited applications analytics applications” aspiration is to chal- that can be developed once AMI data can lenge OG&E’s workforce to be creative and be integrated with other system data and think beyond the obvious. customer data. The purpose of the “100

Project Contact Company Description

Ken Grant OG&E is a subsidiary of OGE Energy Managing Director, IT Solutions and Corp. (NYSE: OGE), and serves more Operations than 800,000 customers in a service ter- [email protected] ritory spanning 30,000 square miles 405.553.3652 in Oklahoma and western Arkansas. www.oge.com.

Chapter 2 – Distribution Grid Optimization 169 “Integrating smart meter data with its outage management system improves OG&E’s ability to both restore power and communicate outages to customers.” DISTRIBUTION GRID OPTIMIZATION SYSTEMS INTEGRATION | POINT SOLUTIONS | INTELLIGENT PLATFORM

Oklahoma Gas & Electric Verified Service Outage

Technology Project Highlights

Partner(s) Utilized smart meters to report outages and verify CGI Group, Inc. power restoration.

Silver Spring Networks Automatic restoration validation from meters eliminated need for customer callback system. Ability to ping meter from outage management system enables voltage read for any meter from mobile data units in the field. Benefits over first six months: —— Restored an average of one outage incident per week before customer calls in. —— Average of one additional fraud detection per month. —— Average of two preventative maintenance opportunities identified per day. —— Average reduction of 30 minutes to identify nested outages.

Chapter 2 – Distribution Grid Optimization 171 Project Description

At OG&E, integrating smart meter out- enterprise service bus (ESB). The ESB filters age data with outage management sys- the data to eliminate outage reports related tems allows the utility to take a proactive to planned work, then sends the remain- approach to outage management. OG&E ing data over to CGI’s PragmaLINE outage has integrated smart meter data from each management system (OMS). The OMS ana- meter across the entire service territory into lyzes the outages reported by both meters their outage response process. During out- and customers to determine what device age scenarios, OG&E utilizes smart meters has been interrupted and creates an out- for three distinct functions within the pro- age incident. cess: last gasp, power restore notification, After power has been restored, the meter and ping response. sends a power restoration notification to When a meter loses power, it sends a the ODS, which is then transported to OMS “last gasp” notification to OG&E’s outage through the ESB to update the outage inci- detection system (ODS). OG&E uses Sil- dent. Then, an automatic power restoration ver Spring Networks’ ODS to eliminate process pings meters that did not send a blinks (outages less than 5 minutes) before power restoration notification. Any meters passing the information through to their that remain without power are identified as

Outage occurs at 11:00am (left). Feeders restored at 11:15am (right). Nested outages and two single customer outages remain.

172 Innovations Across The Grid a nested outage and the utility can respond, By integrating smart meter data with the typically before leaving the premise. In con- OMS and providing distribution control trast, prior to integrating the smart meter center and field staff innovative tools to data into the OMS, nested outages typically more effectively do their jobs, OG&E is went unnoticed for up to 30 minutes and improving their ability both to restore often required a second truck roll. The OMS power during outages and communicate records timestamps from meters for both outage notifications to customers. incident start times and energized times, which help provide a more accurate account of the incident for post-incident analysis.

The ability to manually ping meters from the OMS also enables OG&E’s distribution control center to manually validate power restoration of meters. In addition, field crews now have the ability to get a voltage read from a single meter in the field through their mobile data units.

Project Contact Company Description

Kandace Eaves OG&E is a subsidiary of OGE Energy Manager, IT Energy Operations Corp. (NYSE: OGE), and serves more [email protected] than 800,000 customers in a service ter- 405.553.4202 ritory spanning 30,000 square miles in Oklahoma and western Arkansas. www.oge.com.

Chapter 2 – Distribution Grid Optimization 173 “Since 2011, PG&E has installed intelligent switch technology on almost 20 percent of its electrical distribution circuits, avoiding nearly 50 million customer outage minutes.” DISTRIBUTION GRID OPTIMIZATION SYSTEMS INTEGRATION | POINT SOLUTIONS | INTELLIGENT PLATFORM

Pacific Gas and Electric Company Intelligent Switches: Increasing Reliability with “Self-Healing” Technology

Project Highlights

Fault Location Isolation Service Restoration (FLISR) technology utilizes advanced feeder automation software to restore power to customers utilizing SCADA switches — in less than five minutes. FLISR technology installed on nearly 600 electrical distribution circuits with over 2,800 intelligent switches. To date, PG&E’s intelligent switch systems have avoided almost 50 million customer minutes of outage time and over 492,000 sustained customer outages.

Chapter 2 – Distribution Grid Optimization 175 Project Description

PG&E is a leader in deploying intelligent PG&E’s 2014 General Rate Case. From 2014 switch systems that act to automatically – 2016, the program will expand the imple- restore customers’ electric service in the mentation of the FLISR system to hundreds wake of an outage. The Fault Location of additional circuits across the PG&E sys- Isolation Service Restoration (FLISR) proj- tem to improve customer service reliability. ect began in June 2010, when the Cali- fornia Public Utilities Commission (CPUC) PG&E’s Cornerstone Improvement Project approved PG&E’s three year Cornerstone initially targeted 400 circuits with a goal of Improvement Project. FLISR technology improving reliability. By installing new intel- utilizes advanced feeder automation soft- ligent SCADA switches and incorporating ware that can identify a fault on a feeder existing switches into feeder automation section, automatically isolate the faulted schemes, PG&E built nearly 600 circuits area, and restore power to customers uti- with “self-healing” capability. In all, 2,800 lizing SCADA switches — all in less than five intelligent switches and 600 substation minutes. PG&E began implementing FLISR breakers utilizing various communication technology in the summer of 2011, install- mediums provide real time status to PG&E’s ing detection and self-healing technology SCADA system and feeder automation (FA) on over 500 distribution circuits by the end software. The FA software is continuously of December 2013. The effort continues monitoring the system. After a fault event, with the installation of FLISR systems under the FA software will determine the location

SCADA screen of FLISR circuit and devices.

176 Innovations Across The Grid of the fault based on target information intelligent switch technology on almost from SCADA devices, isolate the fault, and 20 percent of its electrical distribution cir- automatically reconfigure to restore cus- cuits throughout Northern and Central tomers’ power. California. Since the inception of the program in 2011, the self-healing technology In 2013, PG&E customers experienced has significantly reduced the duration of the fewest minutes without electricity in involved outages from hours to minutes, company history. Smart Grid technology avoiding nearly 50 million customer out- like FLISR played a key role in deliver- age minutes and saving 492,000 customers ing this performance. PG&E has installed from a sustained outage.

Project Contact Company Description

Steve Calvert Pacific Gas and Electric Company is one Senior Manager, Distribution Asset of the largest combination natural gas and Strategy and Reliability electric utilities in the United States. Based [email protected] in San Francisco, the company is a subsidiary of PG&E Corporation. The company provides natural gas and electric service to approximately 16 million people throughout a 70,000 square-mile service area in northern and central California.

Chapter 2 – Distribution Grid Optimization 177 “Smart meters equipped with remote disconnect and reconnect switches have enabled PHI to reduce internal costs and improve customer service." DISTRIBUTION GRID OPTIMIZATION SYSTEMS INTEGRATION | POINT SOLUTIONS | INTELLIGENT PLATFORM

Pepco Holdings, Inc. Remote Disconnect and Reconnection of Electric Service

Technology Project Highlights

Partner(s) Pepco Holdings, Inc. (PHI) is currently enabling GE remote connect/disconnect capabilities for 1.4 million residential and small commercial customers with Itron smart meters in Maryland, Delaware, and the District Landis+Gyr of Columbia.

Silver Spring Networks When fully operational, remote connect/disconnect will eliminate over 20,000 truck rolls and over 100

tons of vehicle-related CO2 emissions annually across the PHI operating companies. When fully operational, PHI estimates it will realize over $1.4 million of revenue recovery annually by reducing average past due amounts. Will allow customers to select a window of time for the establishment of electric service, reducing the window from a 24-hour period down to a few hours, improving customer service.

Chapter 2 – Distribution Grid Optimization 179 Project Description

The Pepco Holdings, Inc. (PHI) operating technology, combined with updated and companies in Maryland, Delaware, and streamlined processes, has enabled PHI to the District of Columbia are leveraging reduce internal costs, improved customer advanced metering infrastructure (AMI) for service, and helped PHI avoid lost revenue. remote disconnect and reconnection of By using the smart meter’s remote discon- electric service. Most of PHI’s 1.4 million nect and reconnect capabilities, PHI has residential and small commercial meters reduced, and in some cases, eliminated the are equipped with a remote switch that need to dispatch a service person when a allows PHI customer service representa- customer moves in or out or their home. tives to connect and disconnect electric When fully operational, PHI anticipates this service without having to physically visit the capability will eliminate roughly 20,000 truck customer premise. By leveraging the tele- rolls annually across the operating compa- communications network, meter orders can nies, reducing the companies’ potential be processed much more quickly than if a for vehicle collisions and eliminating over service person had to be dispatched. The 100 tons of vehicle related CO2 emissions.

An example of updated PHI customer service processes enabled by remote meter connect/disconnect capability.

180 Innovations Across The Grid In addition to not having to wait on the arrival due amounts and the average collectable of a service technician, customers will no amount. When the remote disconnect and longer have to wonder when their electric- reconnection capabilities are in full opera- ity will be turned on. Customers will be able tion, PHI estimates it will realize over $1.4 to select a window of time for the establish- million of revenue recovery annually by ment of electric service, reducing the wait reducing average past due amounts. from a 24-hour period to just a few hours.

The AMI system also helps PHI better identify and address unbilled consumption of electricity. Improving the cash collection cycle reduces outstanding past

Project Contact Company Description

Matt Lenzini Pepco Holdings, Inc. is one of the largest Lead Project Manager, energy delivery companies in the Mid-Atlantic Business Transformation region, serving about 2 million customers in [email protected] Delaware, the District of Columbia, Maryland, 302.584.7389 and New Jersey. PHI subsidiaries Pepco, Del- marva Power and Atlantic City Electric provide regulated electricity service; Delmarva Power also provides natural gas service. PHI also provides energy efficiency and renewable energy services through Pepco Energy Services.

Chapter 2 – Distribution Grid Optimization 181 “PHI's transformer load management study demonstrates how AMI data can be leveraged to proactively manage transformer assets and prevent possible overloads, power quality issues, and long- term customer outages.” DISTRIBUTION GRID OPTIMIZATION SYSTEMS INTEGRATION | POINT SOLUTIONS | INTELLIGENT PLATFORM

Pepco Holdings, Inc. Transformer Load Management

Technology Project Highlights

Partner(s) Leveraged smart meter data to address possible Itron overload on over 5,400 transformers.

Oracle Optimized transformers decrease environmental disturbances and public safety issues associated with Silver Spring Networks transformer failure. Reduced truck rolls by right sizing transformers.

Chapter 2 – Distribution Grid Optimization 183 Project Description

Pepco Holdings, Inc. (PHI) has successfully The transformer load management (TLM) used interval consumption data from their study allowed PHI to enhance customer ser- automated metering infrastructure (AMI) vice reliability. By proactively monitoring to build load profiles for distribution trans- the load profile on transformer assets and formers on a number of feeders across performing replacement before failure, PHI their Maryland, Delaware, and District of can avoid long-term customer service inter- Columbia service territories. The under- ruptions and power quality issues. The TLM lying technology supporting the AMI data study also helps PHI make smarter deci- was provided by Silver Spring Networks, sions when purchasing and installing trans- Itron, and Oracle. formers. PHI uses the information from the AMI meter data was aggregated to deter- TLM study to provide accurate load profile mine the hourly load on over 5,400 trans- and peak load data for each transformer, formers under study. Using the load shape, enabling optimized sizing of the transform- peak load, and transformer nameplate ers. By right-sizing transformers, PHI real- capacity, PHI identified possibly over- izes capital savings and avoids losses due loaded transformers for field inspection. to suboptimal equipment allocation.

Load profile of an overloaded transformer.

184 Innovations Across The Grid By identifying and replacing overloaded PHI plans to continue using AMI and transformers, the study also reduced public other data from in field assets to diag- safety issues, environmental disturbances nose and proactively prevent transformer and risk of property damage associated overloading. with transformer failure. In addition, proactive monitoring and replacement of overloaded transformers avoids truck rolls, which are required to respond to outages caused by overloads.

Project Contact Company Description

Babak Besharati Pepco Holdings, Inc. is one of the largest Manager, Special Projects, energy delivery companies in the Mid-Atlantic Business Transformation region, serving about 2 million customers in [email protected] Delaware, the District of Columbia, Maryland, 202.872.2958 and New Jersey. PHI subsidiaries Pepco, Del- marva Power and Atlantic City Electric provide regulated electricity service; Delmarva Power also provides natural gas service. PHI also provides energy efficiency and renewable energy services through Pepco Energy Services.

Chapter 2 – Distribution Grid Optimization 185 “Open standards allow SCE to automate substation configuration during the commissioning phase, reducing the process from months to minutes.” DISTRIBUTION GRID OPTIMIZATION SYSTEMS INTEGRATION | POINT SOLUTIONS | INTELLIGENT PLATFORM

Southern California Edison Irvine Smart Grid Demonstration: Substation Automation Using Open Standards

Technology Project Highlights

Partner(s) Open standards-based approach to substation Electric Power Research and feeder automation and interoperability of third- Institute (EPRI) party technologies. GE Engineering design and specifications completed December 2012; field deployment and installation Space-Time Insight completed December 2013. SunPower Corporation Scheduled completion of systems operations, mea- University of Southern surement, and verification by June 2015. California Implementation is part of Irvine Smart Grid Demon- University of stration (ISGD). California at Irvine

Chapter 2 – Distribution Grid Optimization 187 Project Description

The Irvine Smart Grid Demonstration The goal of SA-3 is to transition substations (ISGD) implements equipment, systems, to standards-based communications, auto- and software that will help set the direc- mated control, and enhanced protection tion for Southern California Edison’s (SCE’s) design. Achieving these goals will sup- next-generation grid. ISGD has received port system interoperability and enable $39.6 million in matching funds from the advanced functionalities such as automatic U.S. Department of Energy as part of an device configuration and integration with American Recovery and Reinvestment Act legacy systems. The design incorporates demonstration grant. The project is demon- IEC 61850-compliant software and hard- strating technologies on the customer side ware from multiple vendors. of the meter, in neighborhoods, on distri- When deploying complex systems, utilities bution circuits, in distribution substations, typically procure hardware and software and in the utility back office, including from a single vendor. This helps utilities home area networks, renewable energy, avoid having to manage device interopera- battery storage, electric vehicle charging, bility, thereby mitigating deployment chal- volt/VAR control, advanced circuit protec- lenges. Open standards promote vendor tion, standards-based substation automa- competition, thereby increasing procure- tion, and the back office systems to securely ment options and reducing costs. Open integrate these systems. standards also promote flexibility by allow- ISGD is demonstrating a number of ing utilities the ability to choose best-in class advanced substation automation and dis- devices from multiple vendors. Using open tribution automation capabilities out of standards removes the need to engineer MacArthur substation, including the next and configure the substation to work with generation of SCE’s substation automation unique vendor specifications, and allows (SA-3), an automation and control design SCE to automate substation configuration based on the open standard IEC 61850. during the commissioning phase. This The IEC 61850 standard provides an inter- reduces a process that had taken months to nationally recognized method of commu- one that takes minutes. An additional ben- nications for substation equipment protec- efit is a reduction in the number of manual tion, monitoring, and control. This flexible errors that would typically be anticipated standard also provides simplified system during a protracted installation process. configuration and integration. MacArthur The open standards also anticipate future is SCE’s first substation to use this open technological improvements; new technol- standard. The standard is being supported ogies that are compliant with IEC 61850 by the UCA International Users Group, of will easily integrate with current equipment which SCE was a founding member. and technologies.

188 Innovations Across The Grid Secure communications between substation devices, field area networks, and back office systems are coordinated through a gateway installed in the substation.

As part of the MacArthur demonstration, This new automation design enabled by the a gateway was installed in the substation open standards will simplify the advanced to provide connectivity to the distribution protections and control strategies needed SCADA system as well as the distribution to incorporate distributed energy resources circuit automation. This gateway transfers reliably. The lessons learned as part of this standards-based messages to coordinate project will be freely shared with the indus- protection and control between substa- try to help other utilities accomplish smart tion automation and feeder automation, grid implementations without having to increasing customer reliability. This gate- start from scratch. way also incorporates advanced cyberse- curity features.

Project Contact Company Description

Chapter 2 – Distribution Grid Optimization 189 “Xcel Energy is realizing multiple benefits from its improved network management system in monitoring and managing the distribution grid” DISTRIBUTION GRID OPTIMIZATION SYSTEMS INTEGRATION | POINT SOLUTIONS | INTELLIGENT PLATFORM

Xcel Energy Advanced Network Management System

Technology Project Highlights

Partner(s) Network management system upgrade allows Xcel Oracle Energy to quickly address outages while at the same time significantly reducing service crew hours. Thousands of service calls avoided, resulting in an estimated $600,000 savings in the past two years. PowerFlow application determines potential system overloads, voltage issues, and suggested switching, including enhanced alert notifications for major customers. Identifies system areas that may be overloaded due to switching during both emergency and planned work, allowing employees to mitigate power-quality issues before executing switching in the field.

Chapter 2 – Distribution Grid Optimization 191 Project Description

Reliability and customer satisfaction are improvements into its electric network two of Xcel Energy’s main priorities, and management system (NMS). Part of the efficient and timely management of electric technology involves “customer pinging,” outages is critical to both of those goals. which allows system operators to “ping” an Integrating new technology with the com- individual address. This entails accessing pany’s electric system has brought big ben- a field controller that polls the individual efits, helping to quickly address outages customer’s meter to determine if it is ener- while at the same time significantly reduc- gized or not. ing service crew hours. The effort can prevent sending service crews The utility industry’s use of radio signals into the field unnecessarily. Minimizing to read meters and check their function- the need to send crews and trucks during ing is not new, but Xcel Energy has taken an outage to check on meters, that many advantage of recent developments in the times haven’t been affected, can eliminate technology by integrating state-of-the-art hundreds of unneeded trips. That saves

Power flow modeling application.

192 Innovations Across The Grid time and money while maximizing field “Pinging” isn’t the only recent improvement crews’ efficiency and their ability to restore to Xcel Energy’s NMS system. Oracle Util- service more quickly to areas in need. ities’ web-based applications have helped make the NMS more familiar and user- What’s changed is the ability to ping meters friendly for employees. The NMS upgrade from within the NMS program. The NMS can was implemented in 2012, and enhance- now show all customers who called during ments included important changes to the an outage, and all available meters that can switch-plan program, which is used to iso- be pinged for a response. If the company late areas of the grid for both planned and pings a meter that responds with ‘power emergency service. on’, employees can cancel the service call and check on the customer call-back infor- In addition, the new PowerFlow modeling mation right in the existing application. application allows company users to determine potential system overloads, voltage Ping responses had typically come back issues, suggested switching, as well as a within minutes. With the new system, dis- host of other important functions, including patchers can receive responses in as lit- enhanced alert notifications for major cus- tle as 30 seconds showing that a meter is tomers. The PowerFlow application allows on, freeing line crews to be redeployed to the company to see directional flows of the next job. The technology significantly load, and if the company has to switch elec- improves the cleanup of single customer tricity flows in the system, it can determine outages. During major storms — with more in advance if there could be issues involved users involved — the response time slows with the possible switches. PowerFlow down a bit, and the returning percentage effectively identifies areas of the system of usable pings also goes down. However, that may be overloaded due to switching the company still receives enough usable during both emergency and planned work. pings that it can cancel hundreds of unnec- It also identifies areas that may experience essary trips during a major storm. voltage issues, allowing employees to look ahead and mitigate these power-quality Throughout Xcel Energy’s service terri- issues before actually executing the switch- tory, thousands of service calls have been ing in the field. avoided thanks to the improvements, saving well over $600,000 in the past two Company teams continue to implement years, and making the technology a proven many of the new, additional features that critical resource in restoring service as effi- the Oracle software offers, further enhanc- ciently and quickly as possible. ing the efficiency of the NMS in responding

Chapter 2 – Distribution Grid Optimization 193 effectively to outages. One major issue the All told, Xcel is realizing multiple benefits technology has helped Xcel Energy with is from the enhanced and improved NMS finding errors in its connectivity model, the capabilities in managing and monitoring graphic view of the company’s electric dis- the distribution system. tribution system. As the connectivity model improves, so does the company’s ability to predict outages. This saves Xcel Energy time in the field, improves the accuracy of switching procedures, and helps with comprehensive feeder-circuit planning for engineering.

Project Contact Company Description

Troy Browen Xcel Energy (NYSE: XEL) is a major Director, Control Center U.S. electricity and natural gas com- and Trouble Operations pany with regulated operations in [email protected] eight Western and Midwestern states. 612.330.5646 Xcel Energy provides a comprehensive portfolio of energy-related Rodney Hunter products and services to 3.4 million Director, Design and Construction electricity customers and 1.9 mil- [email protected] lion natural gas customers through 303.571.3711 its regulated operating companies. www.xcelenergy.com.

194 Innovations Across The Grid

“New technologies are opening the door to meeting new customer needs, and electric utilities are responding with new solutions.” Customer Solutions

he relationship between utilities and customers is evolving, thanks, in part, to newer communication Tmethods that are better connecting customers and utilities. At the same time, customer segmentation, data analytics, and customer3 information systems that integrate with other utility systems are providing the foundation for utilities to develop and to offer new customer solutions.

On the customer side, the proliferation of behind-the- meter distributed energy resource options is changing the way customers view and think about electricity; mor- phing it from a basic commodity to a lifestyle definer. Meanwhile, businesses increasingly are looking to their utilities to provide advice on their energy use and to help them achieve energy savings goals. From a technology standpoint, connected devices and the "Internet of Things" finally are making home energy management solutions accessible to the mass market.

Electric customers typically have maintained a low level of engagement with their utilities, which is some- thing that utilities keep in mind when introducing new

197 products or services. A too-often cited some of the solutions that electric utilities industry statistic is that the average con- are offering their customers today, includ- sumer only spends a total of six minutes ing payment and communications options each year thinking about their home energy and utility program engagement. bill and interacts with their utility providers for seven minutes a year. In spite of this low 1. Payment and engagement, about 75 percent of custom- Communications Options ers express a high level of satisfaction with Choice is important for customers. They their utility providers, and the majority of want to decide how they interact with and customers view their utility as the source for receive information from their electricity how to use electricity more efficiently. That provider, as well as how they view and is very good news! pay their bills. Some customers prefer a self-serve approach via online resources, Today, new technologies are opening the while others value high-touch service. Dif- door to meeting and discovering new ferent payment options have emerged to customer needs, and electric utilities are serve the spectrum of customer prefer- responding with new solutions. In rolling ences, including prepay, online bill pay, out new customer solutions, utilities often and budget setting with alerts based on adopt an incremental approach, enabling actual usage. customers slowly to learn about the new products and services, beyond just elec- Among the ways utilities are offering cus- tricity, that are offered by their electric tomers choices: provider. While some customers feel they They are developing energy manage- already know more than enough about ment apps, such as DTE Energy’s Insight, their electricity use, others are delighted to which lets customers set monthly energy find new services that enable greater con- consumption goals, provides feedback trol and choice over their energy use. on progress, suggests energy savings projects, and can display real-time Customer Solutions Trends energy usage on smartphones; Utilities are providing peer compari- As the nation becomes more energy effi- son and usage tracking tools, such as cient and more focused on clean supply those offered by Duke Energy, Portland sources to generate energy, electric utili- General Electric, and San Diego Gas & ties are providing new customer-side solu- Electric. These are effective, low-cost tions – new products and services – that solutions that are delivered in a variety better serve the shift in customer needs of ways (e.g., online and paper) and pro- and expectations. This chapter describes vide benefits to customers; and

198 Innovations Across The Grid Many utilities are enhancing their com- Energy Savings program, and even munications around power outages commercial customer-focused initiatives and expected restoration times, which like NV Energy’s mPowered program, are tremendously popular customer participation in dynamic pricing and service offerings and demonstrated demand response programs continues by the case studies from CenterPoint to increase as electric utilities offer bet- Energy, Commonwealth Edison, and ter “reasons” for customers to engage in Southern Company. these programs and as customers gain a better appreciation of the ease and 2. Program Engagement value of participating. Electric utility programs, such as energy audits, rebates for energy-efficient appli- Conclusion ances, and participation in energy-efficiency The case studies in this chapter clearly show and demand-response programs are defi- that as the programs and services that elec- nitely nothing new. What is new is that utili- tric utilities offer become more mainstream, ties are putting customer engagement tools they open the door for more diversified to use in order to increase adoption and and sophisticated customer solutions that retention in these programs. As a result of provide even more customer value. these efforts, customers are saving energy, From the customer perspective, there is a and a sense of partnership is developing natural evolution from basic services that between the customer and the electric utility. are provided for free or incentivized to Recent examples include: stimulate adoption today to more sophisticated and targeted services. Now that the Austin Energy’s bring your own ther- market is primed, proactive strategies are mostat (BYOT) demand response pro- jumpstarting the transition toward the next gram, which enables customers to buy phase of customer solutions. their preferred thermostat at retail and to participate in the utility’s demand response program. This is a transition from first-generation demand response or load-control programs where utilities gave away thermostats for free. Now customers engage by purchasing their own device. From opt-in efforts like Gulf Power’s Energy Select program to holistic voluntary approaches like Pepco’s Peak

Chapter 3 – Customer Solutions 199 “Allowing customers to bring their own thermostats to participate in demand response events is helping Austin Energy achieve its demand response goal of 150 MW by 2020.” CUSTOMER SOLUTIONS PAYMENT AND COMMUNICATIONS OPTIONS | PROGRAM ENGAGEMENT

Austin Energy Power Partner Thermostat Program

Technology Project Highlights

Partner(s) Power Partner Thermostat program provides $85 ecobee rebate to customers who purchase, install, and enroll one of 14 eligible Wi-Fi thermostats. EnergyHub Over 7,000 thermostats representing 10 MW of Nest Labs demand response currently enrolled. Enrollment, operation, and reporting of participating thermostats supported by three thermostat vendors: ecobee, EnergyHub, and Nest. Planned program expansion to 70,000 thermostats will deliver 100 MW of peak demand reduction to support Austin Energy’s demand response goal of 150 MW by 2020.

Chapter 3 – Customer Solutions 201 Project Description

In 2001, Austin Energy initiated its residen- Austin Energy currently works with three tial demand response program through the vendors (ecobee, Nest Labs, and Energy- distribution of over 80,000 free thermostats Hub) to support the enrollment, operation, to residential, multifamily, and small busi- and reporting of the participating thermo- ness customers. Through a one-way radio stats. Each vendor provides Austin Energy signal, Austin Energy cycled the thermo- with a portal to access customer enrollment stats on-and-off during demand response data, initiate events, and review post-event events. Unfortunately, with a one-way sig- reports. Each vendor notifies customers of nal it is not possible to receive data back an event in a unique manner. Customers from the thermostats or even confirm the with Nest thermostats receive day-ahead number of active thermostats in the field. event notification via the Nest app, while In addition, this “top-down” approach customers with ecobee and EnergyHub required a significant service contract to thermostats are notified of the event in install and maintain the thermostats and progress on their thermostat display. Aus- also respond to customer concerns and tin Energy pays each vendor an annual event opt-outs. portal maintenance fee as well as quarterly payments for each enrolled thermostat. In an effort to improve its residential demand response program, in May of By allowing customers to participate in 2013, Austin Energy initiated the Power demand response events, Wi-Fi thermo- Partner Thermostat or “Bring Your Own stats play a significant role in helping Aus- tin Energy achieve its aggressive demand Thermostat” (BYOT) program for residen- response goal of 150 MW by 2020 and sup- tial customers. Under the BYOT program, port its customers by improving system reli- customers are encouraged to purchase ability and reducing transmission expenses one of 14 eligible Wi-Fi thermostats, install and fuel charges billed to the customer. If it, enroll in the program, and receive an $85 Austin Energy can reduce its contribution rebate. Under the enrollment agreement, to the ERCOT 4-coincident peak, which the customer agrees to allow Austin Energy is the average coincident peak demand to adjust the thermostat by no more than over June, July, August, and September, 4 degrees during demand response events its share of the transmission costs will be and allows the customer to opt-out if they reduced and the savings can be passed on feel the conditions are unfavorable. Events to customers. are called during the demand response season from June–September for approx- A significant advantage of the Wi-Fi model imately 2 hours (events generally occur is that customers may opt-out of an event from 3:45 to 5:45). These events typically from the thermostat. With two-way com- occur 15 times per season. munication and access to the vendor portal,

202 Innovations Across The Grid Austin Energy can identify the number of beyond expectation. In the first year of the participating thermostats and calculate an program, Austin Energy was able to meet associated savings. As an added advan- their enrollment goals for the year within the tage, by promoting Wi-Fi thermostats to first two months of working with vendors. their customers, Austin Energy is helping Currently, Austin Energy has enrolled over customers make informed decisions about 7,000 thermostats since its launch last year, their home’s energy use. Homeowners can representing an offset of about 10 MW of monitor and control their thermostat from peak demand. Austin Energy believes that anywhere, using a smartphone, tablet, or 100 MW of the 150 MW demand response computer. Thermostats covered by the goal can be met with the adoption and use BYOT program understand the weather of approximately 70,000 Wi-Fi thermostats. outside and a home’s energy performance Critical to achieving this goal is making to optimize for energy savings throughout the Wi-Fi thermostats work in multifamily settings. The success of the program has the year. been supported by advertising done pri- The program has been overwhelmingly marily through our three vendors. Efforts successful. Austin Energy has seen cus- are underway to expand the program to tomers embrace Wi-Fi thermostats at rates include an additional two vendors.

Project Contact Company Description

Karen Poff Austin Energy is the nation’s 8th largest Engineer publicly owned electric utility. It serves [email protected] more than 420,000 customer accounts 512.322.6464 and more than 1 million residents in the Greater Austin area. Operations are funded entirely through energy sales and services, and Austin Energy supports other City of Austin services with an annual transfer into the general fund of more than $100 million. The utility operates within the ERCOT market. Austin Energy’s mission is to deliver clean, affordable, reliable energy and excellent customer service.

Chapter 3 – Customer Solutions 203 “Overall, 82 percent of Power Alert Service enrollees are satisfied or extremely satisfied that CenterPoint is addressing their outage problems.” CUSTOMER SOLUTIONS PAYMENT AND COMMUNICATIONS OPTIONS | PROGRAM ENGAGEMENT

CenterPoint Energy Power Alert Service

Technology Project Highlights

Partner(s) Roughly 493,000 alerts delivered to over 400,000 Itron enrolled customers.

Send Word Now Only 7 percent of enrolled customers call to report an outage. 92 percent of customers rate program registration/ use as “easy”. 93 percent of customers find restoration alerts timely. 82 percent customer satisfaction.

Chapter 3 – Customer Solutions 205 Project Description

When power goes out, residential and busi- includes the outage cause, such as weather, ness customers want answers to two ques- wildlife, or equipment failure. tions: “Does the electric company know Within ten months of becoming publicly that my power went out?” and “When will my power come back on?” available, more than 400,000 customers were enrolled and over 493,000 alerts were CenterPoint Energy’s Power Alert Service delivered by phone, email, or text. PAS (PAS), currently serving more than 400,000 gives customers assurance that CenterPoint registered electric customers in the greater is addressing their problems; only seven Houston area, is a free tool that notifies cus- percent of PAS-enrolled customers call to tomers about power interruptions at or near report their outage – a significant reduction their home or business address and keeps in call volumes. In fact, CenterPoint Energy’s them informed during the outage event. use of smart meters’ power-off notification Notifications start when CenterPoint Energy (PON) capability, which immediately alerts believes a power outage has occurred, the company to outages, has decreased and they continue until the power has the time it takes to localize outages by 50 to been restored. 70 percent, enabling the utility to dispatch Designed as a compact system which inte- crews more efficiently to restore power for grates six pre-existing company systems, more than 875,000 customers without a and piloted with employees before being single phone call. made available to the public, PAS uses data CenterPoint Energy regularly surveys PAS collected through smart meters to pinpoint users and has received positive feedback the addresses affected by power outages via social media. About 92 percent of enroll- and notify those customers through their choice of email, text, and/or phone call ees find it easy to enroll in and use PAS. within minutes of a confirmed (non-mo- Indeed, auto-enrollment of some customer mentary) outage. The initial notification segments (customers can opt out at any includes the number of customers affected time, but few do) has created “surprise and by the outage as well as an estimated time delight” for customers discovering the new of restoration (ETR). Customers are kept service. Customers also praise the timeli- informed with status updates advising them ness of the alerts, with 93 percent satisfied when repair crews are assessing conditions, with the speed of the “power restored” and if needed, on-site repair crews can notification. In fact, many customers report revise the ETR, triggering a follow-up alert that the company informed them of an out- to customers with the newly estimated time age before a family member at home could of restoration. The final follow-up message reach them.

206 Innovations Across The Grid Power Alert Service notifies and informs customers of power delivery events.

Overall, 82 percent of enrollees are satisfied In 2015, CenterPoint Energy will continue or extremely satisfied with PAS for alerting to proactively roll out PAS across the com- them to outages, keeping them informed, pany’s electric customer base. Future saving them from waiting on hold or nav- enhancements will include increasing the igating the automated phone system, and number of people a customer can have helping them plan around an estimated notified during an event, such as a family restoration time. member or landlord. PAS, which aligns

Chapter 3 – Customer Solutions 207 with rising expectations among regulators about service-related issues, PAS will even- and customers for outage communications, tually become CenterPoint Energy’s primary can also be used to alert large numbers of method of delivering operational mes- customers before a major storm. Indeed, sages to customers in the information age. as one of the first proactive, electronic communication tools to alert electric customers

Project Contact Company Description

Lee Doehring CenterPoint Energy's electric trans- Customer Account Support Manager mission and distribution unit serves [email protected] over 2.2 million metered consumers 713.207.7780 in a 5,000 square-mile area including Houston, the nation’s fourth largest city and a consistently growing market. As a regulated "wires" utility, we neither generate power nor sell it to end-use consumers. We instead own, operate and maintain the poles, wires and substations that safely and reliably deliver electricity from power plants to consumers. With over 3,700 miles of transmission lines and 49,000 miles of distribution lines, we deliver electricity on behalf of 75 retail electric providers.

208 Innovations Across The Grid

“ComEd's System Improvements Map provides transparent and timely information to customers on completed and upcoming grid improvements in their communities.” CUSTOMER SOLUTIONS PAYMENT AND COMMUNICATIONS OPTIONS | PROGRAM ENGAGEMENT

Commonwealth Edison Company System Improvements Map

Technology Project Highlights

Partner(s) Improved communication of system investments. iFactor Increased transparency and customer access to information on grid modernization.

Chapter 3 – Customer Solutions 211 ComEd System Improvement Map Showing enhancements that improve the reliability of the electric system

The map is located under the Technology/Smart Grid section of ComEd.com

The map shows the general area of the Project Description reliability work being done in each program with a customer-friendly naming convention Under the Energy Infrastructure and Mod- ernization Act (EIMA) passed by the Illi- nois General Assembly in 2011, ComEd is investing $2.6 billion over 10 years to modernize the power system with digital technology and to replace, refurbish, and upgrade electric equipment across a northern Illinois territory that spans from Lake Michigan to the Mississippi River.

Ultimately, the grid modernization investments will help ComEd significantly reduce outages and give customers the tools to manage their energy usage and save The map shows the general area of the work being done in each program with a money. In fact, ComEd’s 2013 power system Reliability programs of work representedcustomer-friendly on the naming map convention. reliability rating of 0.99 on the System Aver- age Interruption Frequency Index (SAIFI) was the best in company history with the To help keep customers connected and fewest customer interruptions. ComEd’s informed of the modernization investments, reliability improvements stem largely from on June 30, 2014, ComEd launched an the utility’s substantial investments in build- interactive System Improvements Map. The ing a “smart grid,” implementing major System Improvements Map highlights infra-

power infrastructure upgrades, and opti- structureRegulatory improvements and Reliability completedAnalysis Team since mizing workforce performance. the beginning of the smart grid modernization program and shows planned efforts ComEd's System Improvements Map Display. for the upcoming quarter. In addition, customers can view locations where tree trimming and other reliability enhancements have been completed.

212 Innovations Across The Grid The System Improvements Map pro- hardening; and automation to improve the vides transparency and useful informa- resiliency of circuits especially susceptible tion to ComEd’s customers. Customers to storms. can engage with this interactive map to learn about the completed and upcom- Planned upgrades to the map include an ing improvements underway in their com- expansion to the frequently asked ques- munity. ComEd is excited to introduce tions section, which will further educate this interactive way to display ComEd’s customers on how system enhancements grid modernization efforts, which include will improve the reliability of the grid. investments dedicated to system reliability; including refurbishing, replacing and ComEd’s System Improvements Map can upgrading system infrastructure; storm be accessed at ComEd.com/SmartGrid.

Project Contact Company Description

Jamie Ortega Commonwealth Edison Company (ComEd) Manager of Regulatory and Reliability is a unit of Chicago-based Exelon Corpo- Analysis ration (NYSE: EXC), the nation’s leading [email protected] competitive energy provider, with approximately 6.6 million customers. ComEd provides service to approximately 3.8 million customers across northern Illinois, or 70 percent of the state’s population. For more information visit ComEd.com, and connect with the company on Facebook, Twitter, and YouTube.

Chapter 3 – Customer Solutions 213 “ComEd's Smart Ideas Central AC Cycling Pilot uses the Nest Learning ThermostatTM to help customers save money, save energy, and help the environment.” CUSTOMER SOLUTIONS PAYMENT AND COMMUNICATIONS OPTIONS | PROGRAM ENGAGEMENT

Commonwealth Edison Company Nest Thermostat Demand Response and Rebates

Technology Project Highlights

Partner(s) Up to $140 in rebates for customers who purchased Nest Labs a Nest Learning ThermostatTM and participated in ComEd’s Smart Ideas Central Air Conditioning Cycling pilot program. Over 3,200 customers participated in the Nest thermostat pilot. Preliminary analysis shows average demand reduction of 0.79-1.08 kW per customer during two events in 2014.

Chapter 3 – Customer Solutions 215 Project Description

The Nest “Learning” Thermostat is a new thermostat to adjust the customer’s air con- class of thermostat that is able to learn a ditioner, automatically helping reduce elec- customer’s schedule, reprograms itself to tric demand during peak periods. changing room temperature, and can be With Nest’s RHR program, a customer’s controlled by a customer’s smartphone. thermostat temperature is automatically During the summer of 2014 ComEd part- adjusted around rush hours events. Before nered with Nest Labs Inc. to offer up to the event, the customer’s air conditioner $140 in rebates for customers who purchased a Nest Learning ThermostatTM and can be controlled by the thermostat to pre- participated in ComEd’s Smart Ideas Cen- cool the home and can let the temperature tral Air Conditioning (AC) Cycling pilot pro- raise a few degrees during the event. This gram. Customers received a $100 rebate helps reduce the electric demand of the from ComEd for signing up to participate home during rush hour events while still in the pilot that features Nest’s Rush Hour keeping customers comfortable. Custom- RewardsTM (RHR), and an additional $40 ers can override the temperature during rebate for participating in the pilot all sum- an event by simply changing the setting on mer. RHR events only occurred from June the thermostat. 1st to September 30th, 2014 at ComEd. ComEd called two RHR events in the sum- ComEd signed up 3,200 customers to par- mer of 2014, on July 22 from 1-4 p.m. and ticipate in the pilot by recruiting customers on August 24 from 12-3 p.m. A preliminary from the ComEd and Nest websites, using analysis was performed based on a “base in store displays, posting on social media day” methodology from 136 smart meters (i.e. Facebook and Twitter), e-mailing pro- at the customer site. Based on the analysis, motional materials to customers, granting the average customer demand reduction interviews to magazines and television during the three hours for the two events news channels, and by posting stories on ranged from 0.79-1.08 kW per customer. blogs. The key message for the pilot was This result is similar to the results ComEd that you can use this enabling technol- has seen from a traditional direct load con- ogy to save money, save energy, and help trol switch having a 100 percent load inter- the environment. ruption. Pre-cooling of the home an hour before the event likely contributed greatly Demand response programs such as to the large load reduction measured in ComEd’s AC pilot can use Nest’s RHR ser- the pilot. vice to help reduce electricity demand on the hottest days of the summer. With One benefit ComEd gained by running the ComEd’s pilot, Nest sends a wireless signal Nest thermostat pilot during the summer over the customer’s home Wi-Fi to the Nest of 2014 was to gain more experience in

216 Innovations Across The Grid leveraging the benefits of programmable through a feature called the “Seasonal Sav- communicating thermostats (PCT). Using ings” program. ComEd will measure the PCTs, customers can operate their thermo- amount of energy efficiency benefits to cus- stat with their smart phone when they are tomers from the Seasonal Savings program away from home. This helps improve the for a full year, starting June 1, 2014. customer’s ability to control their thermostat As part of ComEd’s AMI roll-out, during while they are away from home, enabling the summer of 2015 customers with smart customers to more effectively participate in meters will be able to participate in ComEd’s demand response, energy efficiency, and Peak Time Savings (PTS) program. Some of dynamic pricing programs. This type of the customers that sign up in the PTS pro- Wi-Fi-enabled technology helps put addi- gram can participate in a direct load control tional control into the customer’s hands in a (DLC) pilot that will leverage a PCT device new and innovative way. similar to the Nest device used in 2014. In addition, the Nest thermostat facilitates The experience of the Nest thermostat pilot automated changes to customer’s indi- in 2014 will directly benefit ComEd’s efforts vidual schedules to drive energy savings, to operate their DLC pilot in 2015.

Project Contact Company Description

Kenneth Walsh Commonwealth Edison Company (ComEd) New Product Development is a unit of Chicago-based Exelon Corpo- Technology Manager ration (NYSE: EXC), the nation’s leading [email protected] competitive energy provider, with approx- 630.437.2411 imately 6.6 million customers. ComEd provides service to approximately 3.8 million customers across northern Illinois, or 70 percent of the state’s population. For more information visit ComEd.com, and connect with the company on Facebook, Twitter, and YouTube.

Chapter 3 – Customer Solutions 217 “To demonstrate the immediate value from ComEd’s smart meter investment, ComEd is offering its Peak Time Savings program to all customers who have smart meters.” CUSTOMER SOLUTIONS PAYMENT AND COMMUNICATIONS OPTIONS | PROGRAM ENGAGEMENT

Commonwealth Edison Company Peak Time Savings

Project Highlights

Peak Time Savings (PTS) is an opt-in residential demand response program available to all residential customers with smart meters. Bill credits of $1 per kWh saved during select summer PTS hours. PTS is expected to launch enrollments in Fall of 2014 and call its first events during summer 2015. Enroll- ment runs annually from October–April. Anticipated customer participation of 3 percent in the first year, growing to 10 percent by 2020.

Chapter 3 – Customer Solutions 219 Project Description

Smart meters are a key part of ComEd’s Eligible customers with smart meters effort to show customers the value of a installed at their homes can earn a credit smart grid-enabled future. To demon- on their electric bills of $1 per kWh saved strate the immediate and tangible benefit when they participate voluntarily on days to customers from ComEd’s smart meter with Peak Time Savings hours. ComEd will investment, ComEd will offer the Peak Time calculate each customer’s baseline electric- Savings (PTS) program to all residential ity usage, which is the expected amount of customers who have smart meters. PTS energy the customer would have consumed, is an opt-in demand response program and subtract the customer’s metered that will pay enrolled customers for saving usage to determine the rebate amount. electricity during select summer Peak Time Savings events when electricity demand is Peak Time Savings events will occur during high. Managing high-demand periods can summer months, from June to Septem- help reduce the need for additional power ber. Peak Time Savings hours will typically plants as well as lower emissions, help keep occur for a few hours between 11 a.m. and down the overall cost of electricity, and 7 p.m. on three to five days during the sum- lessen the burden on the electricity delivery mer. Customers will be notified of Peak system, all while saving customers money. Time Savings afternoons by phone call,

ComEd Peak Time Savings program marketing messages.

HOW IT WORKS: LOOK WHAT YOUR HOME’S SMART METER APPRENDA CÓMO CAN DO FOR YOU NO RISK, NO PENALTY, NO WORRIES PUEDE AHORRAR There is no cost to enroll in the Peak Time Savings program. And there is no penalty if you enroll and don’t participate.You just won’t earn a credit on your electric bill for that day and you can still Welcome to participate in future Peak Time Savings Hours. PEAK TIME SAVINGS INSCRÍBASE ENROLL Enrollment is now open to participate in the 2015 summer Peak Time Savings is a program from season. You can remain in the program for as long as you like. ComEd that pays you back for using less Visit ComEd.com/PTS or call 844-852-0347. ENROLL NOW electricity when it is most in demand. Earn a credit on your electric bill when you participate voluntarily on days with Peak ComEd will notify you on the day when Peak Time Savings Hours will occur. Time Savings Hours. GET NOTIFIED Choose your preferred method of notification when you enroll – phone call, text message or email. We’ll notify you that morning as early as 9 a.m. IT’S EASY Peak Time Savings or at least 30 minutes prior to the start. Have your account number Hours will typically 11AM handy when enrolling. occur for a few hours FPO between 11 a.m. and 7 p.m. during During Peak Time Savings Hours, use less electricity and earn a the summer—when REDUCE & credit on your electric bill. The amount you earn will be based on your 7PM most air conditioners SAVE current electricity usage. are on, stores are open See chart for examples of ACTIONS ONLINE PARTICIPE What can your household do during POTENTIAL EARNINGS and factories are running. what you can do during Peak Time Savings Hours? How much can you earn? Visit ComEd.com/PTS Peak Time Savings Hours ComEd will announce three to five days Delay using your dishwasher, vacuum, EARN $1 - $3 and how much you can clothes dryer, lighting or electronics credit on your bill AHORRE with Peak Time Savings Hours during the potentially earn.* 11 12 1 2 3 4 5 6 7 Take the actions above, plus set the EARN $4 - $12 summer of 2015.8 9 10 AM PM thermostat 4 degrees higher credit on your bill BY PHONE Reduce your8 use9 and10 save!11 12 1 2 3 4 5 6 7 ¡NUEVO! Call 844-852-0347 PROGRAMA DE AHORROS When you participate, ComEd will credit your monthly bill for reducing EARN your electricity use during Peak Time Savings Hours. A credit will appear DE HORAS PICO CREDITS as actual dollars off the total amount due on your next electric bill or the following bill. And you’ll help reduce the need for fossil-fuel power plants which helps the environment.

220 Innovations Across The Grid text message, and email at least 30 minutes Enrollment runs annually from October to prior to the start of the event. The program April. For 2014, the target audience is all will launch enrollments in the fall of 2014, eligible residential customers with a smart and events will start in the summer of 2015. meter — approximately 335,000 customers, growing to 833,000 customers with Bi-lingual marketing campaign. smart meters installed in 2015. ComEd HOW IT WORKS: LOOK WHAT YOUR anticipates 3 percent of eligible custom- HOME’S SMART METER APPRENDA CÓMO CAN DO FOR YOU NO RISK, NO PENALTY, NO WORRIES PUEDE AHORRAR There is no cost to enroll in the Peak Time Savings program. And there is no penalty if you enroll ers will opt-in during the first year, growing and don’t participate.You just won’t earn a credit on your electric bill for that day and you can still Welcome to participate in future Peak Time Savings Hours. to approximately 10 percent of customers PEAK TIME SAVINGS INSCRÍBASE ENROLL Enrollment is now open to participate in the 2015 summer Peak Time Savings is a program from season. You can remain in the program for as long as you like. by 2020. ComEd that pays you back for using less Visit ComEd.com/PTS or call 844-852-0347. ENROLL NOW electricity when it is most in demand. Earn a credit on your electric bill when you participate voluntarily on days with Peak ComEd will notify you on the day when Peak Time Savings Hours will occur. Time Savings Hours. GET NOTIFIED Choose your preferred method of notification when you enroll – phone call, PTS will complement the other smart grid/ text message or email. We’ll notify you that morning as early as 9 a.m. IT’S EASY Peak Time Savings or at least 30 minutes prior to the start. Have your account number Hours will typically smart meter-enabled initiatives ComEd is 11AM handy when enrolling. occur for a few hours FPO between 11 a.m. and 7 p.m. during During Peak Time Savings Hours, use less electricity and earn a offering under the Smart Grid Exchange the summer—when REDUCE & credit on your electric bill. The amount you earn will be based on your 7PM most air conditioners SAVE current electricity usage. are on, stores are open See chart for examples of ACTIONS ONLINE PARTICIPE (SGE), including the Nest pilot, appliance What can your household do during POTENTIAL EARNINGS and factories are running. what you can do during Peak Time Savings Hours? How much can you earn? Visit ComEd.com/PTS Peak Time Savings Hours ComEd will announce three to five days Delay using your dishwasher, vacuum, EARN $1 - $3 retailer collaborations, smart home energy and how much you can clothes dryer, lighting or electronics credit on your bill AHORRE with Peak Time Savings Hours during the potentially earn.* 11 12 1 2 3 4 5 6 7 Take the actions above, plus set the EARN $4 - $12 summer of 2015.8 9 10 AM PM thermostat 4 degrees higher credit on your bill BY PHONE management devices. Apps promoted by Reduce your8 use9 and10 save!11 12 1 2 3 4 5 6 7 ¡NUEVO! Call 844-852-0347 PROGRAMA DE AHORROS When you participate, ComEd will credit your monthly bill for reducing SGE initiatives will help customers take full EARN your electricity use during Peak Time Savings Hours. A credit will appear DE HORAS PICO CREDITS as actual dollars off the total amount due on your next electric bill or the following bill. And you’ll help reduce the need for fossil-fuel power plants advantage of PTS. which helps the environment.

Project Contact Company Description

James Eber Commonwealth Edison Company (ComEd) Manager of Demand Response is a unit of Chicago-based Exelon Corpo- and Dynamic Pricing ration (NYSE: EXC), the nation’s leading [email protected] competitive energy provider, with approx- 630.576.6762 imately 6.6 million customers. ComEd provides service to approximately 3.8 million customers across northern Illinois, or 70 percent of the state’s population. For more information visit ComEd.com, and connect with the company on Facebook, Twitter, and YouTube.

Chapter 3 – Customer Solutions 221 “DTE's Insight App helps customers understand and manage their energy use through a unique blend of coaching, gamification, and social elements.” CUSTOMER SOLUTIONS PAYMENT AND COMMUNICATIONS OPTIONS | PROGRAM ENGAGEMENT

DTE Energy DTE Insight App and Energy Bridge

Technology Project Highlights

Partner(s) Mobile app that can display real time energy usage Vectorform data on the customer’s smartphone when connected to the Energy Bridge. Launched in July 2014 and exceeded year end 10,000 download goal in less than two months. Currently at 24,000 downloads. Provides views of past energy consumption including, minute by minute, weekly, and monthly trends Provides a platform to market energy efficiency programs. Anticipated 75,000-90,000 customers will actively use app over time. 23,000-27,000 MWh energy savings expected annually. Future opportunities for demand response, home automation, and home energy management.

Chapter 3 – Customer Solutions 223 Project Description

CARRIER 10:42 PM 100% The DTE Insight app is a first-party digital 3 Electricity Usage lifestyle platform that engages users around Real-Time discovering and improving their personal Day Week Month Target energy consumption, while providing DTE On-Target Energy with a next generation platform Today 16.1kWh for a self-service customer channel that is 19.2 kWh Target 30.2 kWh rooted in positive customer touch points.

12AM

With a unique blend of coaching, gam-

M 3 P A 9 M ification, and social elements, it enables

DTE customers to engage with their per-

1.411kW 6 sonal energy consumption and find ways to M A

6 Current Use reduce their energy use and enjoy a comfortable home. Customers can use features

3 in the app to identify opportunities to apply P M M A 9

small behavioral changes that will make a

12PM big change in reducing their usage, saving energy and money. DTE Insight app. Core current features of the Insight app help customers understand when, where, and how they are using energy. A dashboard provides a coaching engine and bird’s eye view of energy efficiency perfor- directly with advanced meters to obtain mance against monthly energy consump- real time data, providing minute by minute, tion targets. The app includes tools for daily, weekly, and monthly time horizons. researching ENERGYSTAR products, and Currently over 600 Energy Bridges have iPhone users can take a “Power Scan” read- been shipped to pilot customers, and there ing of any electrical device using just its have been requests for over 5,400. power cord, instantly seeing its energy con- The app was released in July 2014. Since sumption and estimating its monthly oper- the release, customer downloads of the ating cost. To keep customers motivated, app have far exceeded DTE’s initial goal energy efficiency tasks and challenges of 10,000 before year end. Through late are provided weekly to incentivize energy October, the app has been downloaded efficient behavior through reward points. 24,000 times. Marketing has been limited Users can also view electricity consumption to two earned media events, radio ads, patterns in real-time with Energy Bridge, web banner ads, and mailers. More signif- which allows the app to communicate icant marketing is planned in 2015, which

224 Innovations Across The Grid will include a focused engagement cam- and satisfaction. The app may also serve as paign as well as broader advertisement on a platform for future in-home energy man- TV. The goals for the project are to have agement and demand response programs. 75,000 - 90,000 customers actively use the application to generate energy savings in Future features may include: the range of five to ten percent. If these Natural gas consumption patterns pow- goals were to be accomplished, the gross ered by advanced meter data (late 2014). energy savings would be between 23,000 Community feature to connect to friends, and 27,000 MWh annually. build groups, compare energy-saving Phased roll-outs will continue to add fea- performance, and share encouragement. tures based on consumer feedback. In addi- Rewards for performance, including tion to verified energy savings, DTE antic- online and retail goods and virtual ava- ipates increased customer engagement tar upgrades.

Project Contact Company Description

Emmett Romine DTE Energy is one of the nation’s largest General Manager Development, diversified energy companies. Headquar- DTE Insight tered in Detroit, Michigan, DTE Energy is [email protected] involved in the development and man- 248.387.9707 agement of energy-related businesses and services nationwide. Its operating units include an electric utility serving 2.1 million customers in Southeastern Mich- igan and a natural gas utility serving 1.2 million customers in Michigan. The DTE Energy portfolio also includes non-utility energy businesses focused on power and industrial projects and energy trading. In- formation about DTE Energy is available at dteenergy.com, twitter.com/dte_energy and facebook.com/dteenergy.

Chapter 3 – Customer Solutions 225 “By providing personalized energy insights and offers based on individual customer needs, Duke Energy has developed stronger relationships with its customers.” CUSTOMER SOLUTIONS PAYMENT AND COMMUNICATIONS OPTIONS | PROGRAM ENGAGEMENT

Duke Energy Becoming a Trusted Energy Advisor

Technology Project Highlights

Partner(s) The Duke Energy Home Energy Reports (MyHER) Tendril program is the largest of its kind in North America with 18 million paper home energy reports distributed to 1.2 million customers since 2012. Average energy savings of 1.53 percent per customers. The program has generated over 15,000 enrollments for other Duke programs. Less than 1 percent of customers opted out of the MyHER program. From March 2012 through December 2013, the program saved enough energy to provide power to more than 22,000 homes for a year.

Chapter 3 – Customer Solutions 227 Project Description

In January 2012, Duke Energy — in partner- of data into usable customer insights. ship with Tendril — launched its Home Energy Through Tendril’s physics-based home sim- Report program (MyHER) with the goal of ulation model, which leverages data such meeting regulatory requirements, strength- as home size, home age, heating fuel data, ening customer relationships, and position- usage history, and local weather patterns, ing Duke as a trusted energy advisor. With Duke Energy was able to deliver highly the MyHER program, Duke Energy wanted accurate insights and entice customers to to look beyond simply checking a compli- act with more relevant tips and promotions. ance box and understand how improved consumer engagement could take its busi- The home energy reports are designed ness and customer relationships to the next to increase awareness of energy usage, level. In order to accomplish these goals, and engage customers with personalized Duke Energy needed a robust platform recommendations and offers for reduc- that could take in and turn large amounts ing consumption. Each report details the

Duke's My Home Energy Report delivers specific advice to homeowners.

JOHN SMITH September 2013

My Home Energy Report

JOHN SMITH's Home Electricity Usage for September 2013 How am I doing?

Whose electricity usage is What is this report? being compared to mine? Duke Energy developed this 4275 nearby homes report to help you understand • Non-electric heating your energy usage and find • 1400-2000 sq. ft. ways to help you save money 1,071 1,092 • Built in 1973-1983 and energy. The report kWh kWh compares your home energy Average Your efficiency with similar homes. Home Home 822 kWh A 42” LCD TV used for 5 hours Efficient per day consumes roughly 18 kWh Home per month. Why would Duke Energy try For more examples of kWh usage, visit to help me save energy? www.duke-energy.com/homereport When customers reduce their energy needs, it reduces the costs to provide energy and the need to build more power plants, which lower bills for Based on your electricity usage, you spent about $2 more than the average you, your community, and home. Ready to be better than average? Join the ranks of the efficient. Try Duke Energy. one of the tips below.

Tips Based on Your Usage and Home Profile What can I do to save money and energy? Questions? Visit: www.duke-energy.com/homereport Take it down a notch! Baking up some savings!

Email: Turn down the thermostat on Cooking tips and tricks [email protected] your hot water heater Save up to per year. Save up to per year. Call: $20 $12 888-873-3853 M-F 7AM-7PM ET You don't have to go as far as to take cold Ovens can burn more than just food. They burn SAT 8AM-1PM ET showers, but the temperature on your water a lot of energy, too. Here's how to get the most heater may be set higher than it needs to be. out of your oven AND your energy Some manufacturers preset water heater dollars: temperatures to 140 degrees, but most 1. Start Fast – Preheat your oven for 10 households usually only need them set at minutes, if at all. 115–120 degrees. Lowering the temperature by 2. Double Down – Bake foods that require 10 degrees can save you up to 5% on your similar temperatures together. water heating costs. The savings will be more 3. Coast Out – Turn off your oven 15 minutes Check out this video to learn than a drop in the bucket! early and let residual heat finish the job. more about your personalized report.

1.36.5/20130921T000450Z

228 Innovations Across The Grid specific homeowner’s energy usage to help The MyHER program has also demon- determine how efficient they are in com- strated success in other facets of Duke parison to other similar households. The Energy’s business. Since the program report then provides the homeowner with began, Duke Energy has generated over recommendations, tips, and product rebate 15,000 sales/participants for other Duke programs via the reports’ free-text fields, offers that can help them save more energy. a customizable section of each report that Since its launch, Duke Energy’s MyHER pro- allows Duke to offer customers additional gram has become the largest paper home relevant products and services month-to- energy usage insights and comparison pro- month. By providing personalized energy insights and offers that show an under- grams of its kind in North America, result- standing of customers’ individual needs, ing in the delivery of more than 18 million Duke Energy has developed stronger rela- reports to 1.2 million residential custom- tionships with its customers. The MyHER ers across five states. From March 2012 program has not only initiated a valuable through December 2013, the program ongoing dialogue with consumers, but has saved enough energy to provide power to also opened the door for Duke Energy to 22,000 homes for a year. This represents deliver new service offerings, which gives savings of up to 1.53 percent per customer the utility a strong foothold in the rapidly receiving the MyHER reports. evolving energy space.

Project Contact Company Description

Kelly Kuehn Duke Energy is the largest electric power Senior Products and Services Manager holding company in the United States, sup- [email protected] plying and delivering energy to approxi- 704.382.4826 mately 7.2 million U.S. customers. Duke Energy has approximately 57,500 MW of electric generating capacity in the Caroli- nas, the Midwest, and Florida – and natural gas distribution services in Ohio and Ken- tucky. Headquartered in Charlotte, N.C., Duke Energy is a Fortune 250 company traded on the New York Stock Exchange under the symbol DUK.

Chapter 3 – Customer Solutions 229 “The Energy Select program allowed program participants to take advantage of lower energy prices 87 percent of the time, delivered nearly 25 MW of reliable peak demand reduction to Gulf Power, and resulted in high customer satisfaction.” CUSTOMER SOLUTIONS PAYMENT AND COMMUNICATIONS OPTIONS | PROGRAM ENGAGEMENT

Gulf Power Energy Select

Technology Project Highlights

Partner(s) The first fully-automated critical-peak pricing (CPP) Comverge program in the U.S. Nearly 14,000 enrolled participants. Program consists of four elements: a programmable thermostat and other enabling technology, a four-tier rate, a communications gateway, and an online portal to program enabling devices. Customer satisfaction rates as high as 95 percent. Four-tier rate offers lower energy prices than a standard rate 87 percent of the time.

Chapter 3 – Customer Solutions 231 Project Description Y K C M

Gulf Power Company, a subsidiary of Gulf Power Energy Select rate card. Southern Company, is located in northwest Florida and serves approximately 400,000 residential customers. Long recognized as a leader in demand-side management (DSM) at the residential level, Gulf Power Prices Effective January 1, 2014 Prices Effective January 1, 2014 continues to drive innovation in the area of The EnergySelect (RSVP) rate features four variable The EnergySelect (RSVP) rate features four variable prices. These prices are based upon the time of day and prices. These prices are based upon the time of day and automated dynamic pricing. day of week, with time periods that vary by season. By day of week, with time periods that vary by season. By responding to different prices, you have the opportunity, responding to different prices, you have the opportunity, 87 percent of the time, to buy electricity at a price lower 87 percent of the time, to buy electricity at a price lower The Gulf Power Energy Select program was than the current standard residential rate. than the current standard residential rate. initiated in 2000 and has the distinction of having been the first fully-automated criti- Price Per kWh* Price Per kWh* LOW 7.9 cents LOW 7.9 cents cal-peak pricing (CPP) program in the coun- MEDIUM 9.2 cents MEDIUM 9.2 cents HIGH 16.9 cents HIGH 16.9 cents try. A long-standing partnership between CRITICAL 69.6 cents CRITICAL 69.6 cents Gulf Power and Comverge produced what Standard Residential Rate 11.1 cents Standard Residential Rate 11.1 cents continues to be one of the largest and most * Includes fuel charge. Excludes any applicable taxes. * Includes fuel charge. Excludes any applicable taxes. successful critical-peak pricing programs. Energy Select attracts voluntary program Residential Service Residential Service participants — nearly 14,000 thus far — Variable Pricing (RSVP) Rate Variable Pricing (RSVP) Rate through cost savings, customer control, Percent of Annual Hours In Effect Percent of Annual Hours In Effect and satisfaction. of the of the 7% tim 7% tim s 8 e s 8 e Energy Select consists of four elements: a e e ic ic r Low Price r Low Price price-responsive programmable thermo- p p 28% 28% r r stat and timers for customers’ water heat- e e

w Critical w Critical

o o o

ers and pool pumps, a rate featuring four 59% Price o 59% Price

L L L prices (low, medium, high, and critical) for 1% L 1% 12% (Maximum) 12% (Maximum) electricity, a communications gateway, and High Price High Price an online programming portal. Partici- pants in the program enjoy greater con- Medium Price Medium Price trol over their energy usage and the ability to pre-program their central cooling and Call us toll free at Call us toll free at 1-877-655-4001 1-877-655-4001 heating systems, electric water heaters, gulfpower.com gulfpower.com and pool pumps to respond automatically

232 Innovations Across The Grid to specific pricing tiers and dynamic price demand for electricity by nearly 25 mega- signals from Gulf Power. By leveraging the watts. The program received the 2013 Proj- web portal capabilities of Comverge’s Intel- ect of the Year Award from POWERGRID liSOURCE demand response management International and has garnered national platform, Energy Select participants can recognition from The Wall Street Journal, also monitor HVAC run-time and program Newsweek magazine, and the National changes on the go, putting them in control Society of Professional Engineers. of how much energy they purchase, when Gulf Power plans to build on its vision by they purchase it, and at what price. continuing to grow Energy Select program participation through active promotion The Energy Select program has resulted in of the program using direct mail, outdoor customer satisfaction rates as high as 95 advertising, and the web. Information on percent, allowed program participants to the program is prominently displayed on take advantage of lower energy prices 87 the Gulf Power website home page. percent of the time, and delivered reliable peak demand reduction to Gulf Power, Learn more about the program at enabling the utility to reduce summer peak www.gulfpower.com/energyselect.

Project Contact Company Description

David Eggart Gulf Power Company is an investor-owned Energy Select Program Manager electric utility, wholly owned by Atlan- [email protected] ta-based Southern Company. Gulf Power's service territory spans the area from the Alabama border on the west to the Apala- chicola River on the east; from the Alabama border on the north to the Gulf of Mexico on the south. Gulf Power serves approximately 435,000 customers in 71 towns and communities throughout Northwest Flor- ida. www.gulfpower.com.

Chapter 3 – Customer Solutions 233 “The goal of the DemandLinkTM pilot is to determine whether a planned investment in distribution infrastructure can be deferred through investments in distributed energy resources such as energy efficiency and demand response.” CUSTOMER SOLUTIONS PAYMENT AND COMMUNICATIONS OPTIONS | PROGRAM ENGAGEMENT

National Grid DemandLink™ Pilot in Rhode Island for System Reliability Procurement

Technology Project Highlights

Partner(s) Targeted EE and DR efforts to reduce peak load on ecobee specific feeders.

2D2C Inc. 1 MW of load relief defers 2014 substation upgrade to 2018. Enhanced incentives focused on air conditioning. Preliminary results show targeted outreach increased area EE participation by roughly 50 percent.

Chapter 3 – Customer Solutions 235 Project Description

National Grid’s DemandLink pilot is a non- commercial customers or industrial cus- wires alternative demonstration project that tomers. The pilot’s goal is to create reduc- aims to reduce load during peak hours on tions in summer peak load in the amounts specific feeders in Rhode Island that were of 150 kW by the end of 2014 up to 1 MW projected to overload starting in 2014. The by the end of 2017. goal of the pilot is to determine whether or not a planned capital investment in dis- The primary mechanisms for creating tribution infrastructure can be deferred load relief on the affected feeders are tar- through investments in distributed energy geted energy efficiency (EE) and demand resources such as energy efficiency and response (DR). The pilot promotes existing demand response. incentives offered through the statewide EE programs (such as free home and business The pilot was proposed in 2011 in compli- energy assessments) as part of its dedi- ance with the System Reliability Procure- cated outreach campaign but also spon- ment (SRP) guidelines that are in place to sors a number of incentives exclusively support the Least Cost Procurement legisla- for pilot-eligible customers. Most of these tion in the state. The SRP guidelines were incentives are focused on air conditioning, compiled through a collaborative process as air conditioning was identified early as involving National Grid, the Rhode Island one of the most likely drivers of demand Energy Efficiency Resource Management during the peak hours of 3:30-7:30 p.m. In Council, the Rhode Island Division of Pub- its first year, DemandLink offered customers lic Utilities and Carriers, as well as other a free Wi-Fi thermostat and annual bill cred- agencies and advocacy groups in the state. its if they participated in all DR events. In The DemandLink pilot began operations order to qualify for this offer, customers had in 2012 and will continue through 2017, to have central AC and Wi-Fi. In its second with the first two years acting as a ramp-up year, the pilot added incentives for plug period and the remaining four years com- load devices, window AC purchases and prising the period of deferral. Each year, as window AC recycling to broaden the eligi- long as the need for load relief still exists, bility pool and increase participation. The National Grid submits an updated load outreach and education campaign (limited forecast, pilot proposal, and budget to the to targeted groups, e.g., high energy users Rhode Island Public Utilities Commission. and recently-assessed homes) and internet The affected feeders serve approximately ad campaign were significantly expanded 5,200 customers in two towns (the southern in 2013 and 2014 to include multiple direct part of Tiverton and all of Little Compton) mail and email pieces, two rounds of tele- that are predominantly residential. While marketing, and an annual community a few hundred commercial accounts exist event. Telemarketing has so far produced in the affected area, there are no large the greatest number of leads.

236 Innovations Across The Grid DemandLink™ DATE Connecting Tiverton and Little Compton with energy-efficiency solutions.

Good for you! Thank you for participating in National Grid’s DemandLink program. Working together, we are managing rising electricity demand in Tiverton and Little Compton. In fact, just in the last summer alone, you may have taken part in two demand response events that saved money, reduced electricity load, and lowered CO2 emissions.

Strength in numbers. You’re in good company – over 400 of your friends and neighbors have already participated in DemandLink. Families and businesses all over our community have completed an energy assessment and taken advantage of the enhanced incentives. >> 167 no-cost WiFi programmable thermostats installed in homes with central A/C >> 145 Smart Plug devices installed on window A/C units >> 60 ENERGY STAR® rated window A/C units purchased >> 60 inefficient window A/C units recycled

Get the most out of your WiFi Thermostat and Smart Plugs. Use the ecobee phone app to make changes to Visit your personal web portal at your cooling and heating programs on-the-go. ecobee.com regularly to see when you’re cooling and heating the most.

If you have put away your window A/C units for the season, plug other small appliances into the Smart Plugs to see how much electricity they’re using, or to automate when they turn on and off.

Need help? DemandLinkIf you need a User Guidepilot for energy installed equipment, management or are experiencing options. issues with your new equipment, call RISE Engineering at 401-784-3700 ext 6120. For all other DemandLink Pilot Program questions, call 1-855-752-6964 The pilotor email is [email protected] currently on track. to meet its reduction. Second, diversifying both the Stay Tuned! load reliefSummer targets, will be here and before National you know it andGrid when has the demandso formessaging electricity is high, weand hope youincentives will continue tocan help increase your community save by participating in the DemandLink demand participation.response events. More Different information on customers DR events is are moti- far deferredavailable inconstruction our Frequently Asked on the Questions distribution document at myngrid.com/demandlink. We will also keep you informed infrastructurethrough future investment LINKUp newsletters. until at least 2016. vated by different things. The best ways to Together we can help create a more robust, more energy-efficientbroaden community. participation are to increase the It’s good for you. It’s good for our community. And, it’s good for everyone. While the DemandLink pilot is still in prog- eligibility pool and articulate all the rea- Sincerely, ress, a number of lessons around customer sons that make the pilot worthwhile. Third, recruitment and retention have been minimizing the customer requirements to Lindsay M. Foley learnedProject in theManager, first National years Grid of its implementa- participate is key to motivating segments tion. First, when marketing such a program outside of the “early adopters.” Even cus- to a defined geographical area, communi- tomers who perceive value in the program cations touchpoints should be direct and may not participate if it is difficult or com- frequent. With a finite number of eligible plicated to do so. Finally, communication customers, the typical 5–10 percent partic- should continue after the recruitment stage NG866 // SRP Pilot // RI // February Participant Letter V2 ipation rates seen in broad-based EE and in order to maximize participant engage- DR programs will not create enough load ment and contentment with the program.

Project Contact Company Description

Lindsay Foley National Grid USA is a regulated public Senior Project Manager utility that provides electrical service to 3.3 [email protected] million customers in areas of Massachu- 781.907.2236 setts, New Hampshire, New York, Rhode Island, and Vermont. The utility operates over 9,000 miles of electricity transmission. National Grid Rhode Island serves over 460,000 customers in 38 Rhode Island communities.

Chapter 3 – Customer Solutions 237 “NV Energy’s mPowered program offers commercial customers an integrated energy efficiency and demand response program that reduces energy and peak demand without disrupting business or inconveniencing customers.” CUSTOMER SOLUTIONS PAYMENT AND COMMUNICATIONS OPTIONS | PROGRAM ENGAGEMENT

NV Energy Building Energy Intelligence in the State of Nevada

Technology Project Highlights

Partner(s) NV Energy’s mPowered program customers reduced BuildingIQ peak HVAC power consumption by as much as 15–24 percent on demand response event days. Customers lowered on-going daily HVAC energy use by 10–14 percent. The program has so far enrolled 5.7 million square feet and 3 million square feet are in ‘active optimization’ mode. Current savings targets are 4–6 million kWh per year.

Chapter 3 – Customer Solutions 239 Project Description

In order to help temper the company’s peak HVAC controls are adjusted in real-time summer demand, NV Energy, which serves 93 using BuildingIQ algorithms. The system percent of the population of Nevada, wanted also communicates via OpenADR with NV to create broad-based customer engage- Energy’s Demand Response Management ment through its mPowered program. For System and manages DR events strategically Nevada, this was an opportunity to develop in order to maintain occupant comfort. fully integrated energy efficiency (EE) and demand response (DR) systems that reduce This approach allows NV Energy to offer a energy and peak demand without disrupt- demand response program to its commer- ing business or inconveniencing customers. cial customers that will not impact occupant comfort, which is a primary concern Through NV Energy’s program, a grow- for the gaming and entertainment industry ing number of buildings in Nevada have in Nevada. The approach also allows NV deployed BuildingIQ’s cloud-based soft- Energy to use the financial benefit associ- ware, which incorporates Predictive Energy ated with year-round energy savings as the Optimization™, to bring a new level of intel- primary program incentive for participating ligence and controllability to large commer- in demand response events. cial building operations, including casinos, hotels, government facilities, and office Since 2013, the technology and program buildings. Over a four to six week period, have reduced peak HVAC power consump- BuildingIQ’s software learns a building’s tion in 11 commercial buildings throughout HVAC energy patterns to predict consump- Nevada by 15–24 percent on DR event days. tion. Based upon these predictions, the sys- In 2013, NV Energy called 12 DR events, and tem automatically optimizes energy usage; in 2014 the company called 17 DR events.

HVAC building energy savings at City Hall climbed to 14.4 percent within a few months (kWh).

240 Innovations Across The Grid The program has also significantly lowered The program continues to expand with a ongoing daily HVAC energy use at these growing list of prominent commercial and buildings by 10–14 percent. government buildings.

City Hall, one of the first buildings to participate in the mPowered program, controlled 308,000 sq. ft. of conditioned office space, resulting in cumulative energy savings of 7.4 percent during the 12-month startup period, and energy savings climbed to over 20 percent in subsequent months. On average, City Hall is saving $1,500 to $3,500 per month on energy bills due to optimized HVAC energy usage. By utilizing BuildingIQ’s optimization HVAC building dollar savings at City Hall from software, the City of Las Vegas has become HVAC energy reductions have ranged between the first major city in the country to leverage $1500 and $3500 per month following the this type of energy management solution. start-up period.

Project Contact Company Description

Michael Brown NV Energy, Inc. provides a wide range of Manager, Demand Response & energy services to 1.3 million customers Distributed Energy Resources throughout Nevada and nearly 40 million [email protected] tourists annually. NV Energy is a holding company whose principal subsidiaries, Nevada Power Company and Sierra Pacific Power Company, are doing business as NV Energy. The company is headquartered in Las Vegas, Nevada. NV Energy was acquired by Berkshire Hathaway Energy in 2013. www.nvenergy.com.

Chapter 3 – Customer Solutions 241 “PG&E’s integrated marketing strategy increased awareness and resulted in a significant increase in loan applications by small- to medium- business customers.” CUSTOMER SOLUTIONS PAYMENT AND COMMUNICATIONS OPTIONS | PROGRAM ENGAGEMENT

Pacific Gas and Electric Company On-Bill Financing Marketing

Technology Project Highlights

Partner(s) Launched in 2010, PG&E’s On-Bill Financing loan Jacobs & Clevenger program has lent more than $36.7 million to small- to medium-sized business (SMB) customers for energy Targetbase efficient retrofits. Based on 2013 research identifying program awareness as a key barrier for SMB customers, an integrated marketing strategy increased on-bill financing loans to SMB customers. Loans to SMB customers increased over 600 percent between 2012 and 2014. 2014 SMB Customer Journey pilot targeted 50,000 SMBs that have never participated in an energy efficiency rebate.

Chapter 3 – Customer Solutions 243 Project Description

Pacific Gas and Electric Company’s (PG&E) been repaid) with $16.9 million committed On-Bill Financing program helps eligible for customer projects in process. Govern- business customers pay for energy effi- ment and large business customers were cient retrofit projects with zero percent first to take advantage, whereas PG&E’s interest. The program works in conjunction 390,000 small- to medium-sized business with PG&E’s energy efficiency rebate and (SMB) customers required more education incentive programs by eliminating a key and awareness. Four years later, PG&E has barrier to entry, which is often availability executed a successful integrated market- of capital. After project completion, PG&E ing strategy targeting SMB customers, and will lend the money for the retrofit and the the SMB segment is actively submitting loan applications. customer will pay the loan — interest free — through their monthly utility bills. The In 2013, strategic marketing efforts were On-Bill Financing program launched in deployed to raise awareness of the On-Bill 2010, with a $50.5 million revolving loan Financing loan program with SMBs. Before pool funded by California utility custom- embarking on outreach, PG&E commis- ers through the California Public Utilities sioned qualitative research (focus groups) Commission. To date the program has lent with SMBs and contractors from a variety $36.7 million ($10.8 million has already of industries. The program concept was

PG&E's equipment savings cycle.

244 Innovations Across The Grid extremely appealing to all participating With the messaging and strategy estab- SMBs, but the greatest barrier to participa- lished, PG&E executed on its strategic plan tion was lack of awareness. in 2013 and 2014. Through integrated efforts, PG&E was able to incorporate As enticing as a zero percent interest loan is, financing messages in their digital market- a loan isn’t the focus; new energy efficient ing, content marketing, experiential and equipment and future savings are. Just as event marketing, email marketing, sales a customer doesn’t visit a car dealership to collateral, and the 2014 SMB Customer secure financing, but rather to buy a car, Journey pilot, as well as other tactics. and only learns about the available financing options to pay for it, SMB customers In one specific marketing campaign, the are primarily interested in the prospect of SMB Customer Journey pilot, PG&E tar- new equipment and future savings. PG&E geted prospects through a unique seg- approached on-bill financing with the same mentation based on energy management lens. The utility promoted the right energy engagement. SMB customers were divided efficiency product opportunities to cus- into three categories: tomers, and provided on-bill financing as Beginner (never participated in an an enabler to closing the “sale.” Using that energy efficiency rebate). philosophy, PG&E built a strategy to inte- Intermediate (has participated in at least grate the on-bill financing message into all one rebate). applicable energy efficiency marketing and Advanced (participated in multiple sales campaigns. For some efforts, financ- rebates or customized programs). ing was the key message; in others, it was The pilot focused on the ‘beginner’ seg- a supporting message to begin broaden- ment, creating a group of 50,000 custom- ing awareness. PG&E utilized the research ers in three sub-segments: findings to develop the following messaging framework: 10,000 customers that didn’t have an online account. Messaging A – Focus on the sale. PG&E’s energy efficiency financing makes it 37,000 customers that had an online more affordable than ever for your busi- account but hadn’t taken the Business ness to save energy and money at the Energy Checkup (PG&E’s online assess- same time. ment for SMBs). 3,000 customers that had taken an Messaging B – Focus on new equipment. assessment, but had yet to participate in It’s not the loan, it’s what the loan makes a rebate. possible: brand new energy efficient equipment to replace old and inefficient Each group had different customer expe- equipment and use less energy. rience to encourage action, with different

Chapter 3 – Customer Solutions 245 levels of customized or dynamic content The SMB customer journey pilot is ongo- communicated via different channels. As ing and results are still being analyzed, customers engaged, they would move from but it demonstrates one of the many ways one stage to the next, ideally completing in which we integrated financing into our all three actions of signing up for an online marketing efforts. PG&E looks forward to account, taking an energy assessment, and building upon this integrated strategy in ultimately applying for an energy efficiency our 2015 outreach to continue to increase rebate. On-bill financing was a key mes- the uptake of loans for the hard-to-reach sage in the majority of outreach. Through- SMB population. out the journey, tailored energy efficiency product recommendations were delivered and customers were made aware of the fact that they could take advantage of On-bill financing to pay for it.

Project Contact Company Description

Megan Erwin Pacific Gas and Electric Company is Senior Marketing Strategist one of the largest combination natural [email protected] gas and electric utilities in the United 415.973.1552 States. Based in San Francisco, the company is a subsidiary of PG&E Cor- poration. The company provides natural gas and electric service to approximately 16 million people throughout a 70,000 square-mile service area in northern and central California.

246 Innovations Across The Grid

“Enabled by smart meters, PHI’s Peak Energy Savings Credit program provides customers an opportunity to earn credits on their electric bill.” CUSTOMER SOLUTIONS PAYMENT AND COMMUNICATIONS OPTIONS | PROGRAM ENGAGEMENT

Pepco Holdings, Inc. Peak Energy Savings Credit

Technology Project Highlights

Partner(s) Pepco and Delmarva Power’s AMI-enabled Peak Aclara Energy Savings program in Maryland and Delaware service areas launched full-scale in 2013. IBM More than 500,000 participating customers saved Itron over 4 million kWh of electricity and earned approxi- Silver Spring Networks mately $5 million in bill credits. An additional phase-in of 5,000 residential customers in the Delmarva Power, Maryland service area occurred in 2014.

Chapter 3 – Customer Solutions 249 Project Description

Enabled by smart meters, PHI’s Peak Energy Savings Credit program provides opportunities to customers in Maryland and Dela- ware to reduce their energy use for a few hours during peak usage days in order to earn credits on their electric bill. Par- ticipating customers choose two of three methods to be notified of a peak event (voicemail, email or SMS text). Notifications occur the night before the event and participation in the program is voluntary. The only requirement is that the customer has a PHI's Peak Energy Savings bill credit. smart meter. In the summer of 2014, multiple events Participating customers take various mea- were called and approximately 500,000 sures to reduce usage, such as turning off customers participated, saving over 4 mil- lights, delaying running the dishwasher, lion kWh of electricity and earning approxi- delaying laundry, and adjusting their ther- mately $5 million in bill credits. mostats. Those that reduce usage earn credits at a rate of $1.25 per kWh saved. As the program matures and customers Customers can view their average usage learn how to make conservation activities online prior to the event (based on the work for their unique situations, Pepco same hours as the event), as well as check expects to see an increase in both the vol- their consumption and preliminary credit ume of customers participating as well as after the event. credits earned.

Project Contact Company Description

Rich Filler Pepco Holdings, Inc. is one of the largest Manager, PMO Business energy delivery companies in the Mid-Atlantic Transformation region, serving about 2 million customers in [email protected] Delaware, the District of Columbia, Maryland, 856.351.7352 and New Jersey. PHI subsidiaries Pepco, Del- marva Power and Atlantic City Electric provide regulated electricity service; Delmarva Power also provides natural gas service. PHI also provides energy efficiency and renewable energy services through Pepco Energy Services.

250 Innovations Across The Grid

“SolutionOne — PHI's unified, state-of-the-art customer relationship management and billing system — will mean better service to PHI customers.” CUSTOMER SOLUTIONS PAYMENT AND COMMUNICATIONS OPTIONS | PROGRAM ENGAGEMENT

Pepco Holdings, Inc. SolutionOne

Technology Project Highlights

Partner(s) The SolutionOne project will replace decades old Accenture legacy systems with a unified, state-of-the-art customer relationship management and billing SAP (CRM&B) system. Following a 28-month design, development, testing, and training period, the new system will launch in early 2015. SolutionOne converts and consolidates records from 1.8 million existing customers. The project tested 170 interfaces that link new system with 50 other internal and external data systems.

Chapter 3 – Customer Solutions 253 Project Description

The SolutionOne project will enhance the in enough platform flexibility to allow for daily business transactions of regulated future enhancements. Working from a electric and gas customers of Pepco Hold- blank canvas invites a multitude of good ings, Inc. (PHI) by replacing two separate, ideas, but not all can or should be built. decades old, command-line driven, leg- Every project decision was made with con- acy customer relationship management sideration to how PHI’s customer care and and billing information systems with a sin- operations team could use the tool to pro- gle, unified, state-of-the-art customer rela- vide an enhanced customer experience. tionship management and billing system After an intensive design, development, (CRM&B). The scope of the SolutionOne testing, and training initiative over a project is considerable; converting and 28-month period, the new system is sched- consolidating data from more than 1.8 mil- uled to go live in early 2015. During the lion existing customers from two legacy sys- development process, PHI tested approx- tems into one CRM&B will be challenging, imately 170 interfaces that link the new but the end result will mean better service system with about 50 other internal and to PHI customers. external data systems. As the cutover date Recognizing that unplanned events can approaches, the project team continues occur during a complex system conversion, with technical, operational, and business PHI has taken steps to minimize the chances readiness trainings to maintain data quality and billing accuracy. of such occurrences. To provide for a smooth transition, PHI developed guid- Every effort is being made to reduce the ing principles to address and mitigate risk expected challenges to productivity and during the process. The first guiding prin- call-response times while staff gains pro- ciple is that the quality of the implementa- ficiency in the new system following the tion is paramount. PHI partnered with SAP, launch. Training approximately 1,375 to provide a robust software platform that end-users for the new system includes would require minimal customization, and instructor-led, computer-based, and self- Accenture, to provide a structured and rig- practice components as the team transi- orous project management approach. tions from a command-line interface to a more intuitive, point-and-click interface. Another important guiding principle for the SolutionOne project is "virtue in sim- Once cutover is complete, SolutionOne plicity." A concerted effort was made to will provide customer service representa- design the system architecture so that the tives and other end-users with 21st century functionality of the customer information tools to provide prompt, effective reso- systems remains intact while also building lution of customer inquiries. PHI plans to

254 Innovations Across The Grid leverage a variety of communication chan- collaboration across various PHI business nels, including bill inserts and social media units, technology partners, and project to deliver information about the system implementers positions the project for a conversion. SolutionOne represents how quality deployment.

PHI Legacy System. Point-and-Click SolutionOne Interface.

Project Contact Company Description

Michael Poncia Pepco Holdings, Inc. is one of the largest Program Director, SolutionOne Project energy delivery companies in the Mid-Atlantic [email protected] region, serving about 2 million customers in 302.451.5561 Delaware, the District of Columbia, Maryland, and New Jersey. PHI subsidiaries Pepco, Del- marva Power and Atlantic City Electric provide regulated electricity service; Delmarva Power also provides natural gas service. PHI also provides energy efficiency and renewable energy services through Pepco Energy Services.

Chapter 3 – Customer Solutions 255 “PGE's Energy TrackerSM provides timely, accurate energy information and concrete, effective actions, giving customers the power to control their energy usage and bill.” CUSTOMER SOLUTIONS PAYMENT AND COMMUNICATIONS OPTIONS | PROGRAM ENGAGEMENT

Portland General Electric Energy TrackerSM

Technology Project Highlights

Partner(s) Usage-to-date and forecasted bill text and email alerts. Aclara 5,000 alerts per month sent to customers. Accessed by 18 percent of customer base. Daily and hourly energy use charts. Billing period comparisons. Customers using Energy TrackerSM reduce energy 3 percent faster than control.

Chapter 3 – Customer Solutions 257 Project Description

Portland General Electric’s (PGE) Energy usage-to-date in a billing cycle, and a fore- TrackerSM makes energy tangible for cus- casted bill (available to residential custom- tomers. Deployed in 2011 following the ers only) that gives customers time to plan successful installation of more than 825,000 their budget or reduce their energy use. smart meters in the Portland, Oregon metro Additionally, customers can sign up for an area, Energy Tracker is an online tool that alert notifying them whether the forecasted provides a window into energy use and bill exceeds their indicated budget target billing data to drive proactive, cost-effec- by mid-month. PGE is also finding success tive energy reduction and savings. Resi- in efforts to inform and engage low income dential and general business customers customers through local community action can access their smart meter data using the agencies. Agency staff are trained on same accounts that are used for billing and Energy Tracker and show low income cus- service requests on PortlandGeneral.com. tomers ways to reduce their energy usage and electric bill. More than 2,000 custom- Nearly one-fifth of PGE’s eligible customers ers have opted in to these alerts, resulting have accessed Energy Tracker. Custom- in over 5,000 alerts sent per month. ers are able to see their usage granularly by hour down to a 15 minute interval, and Energy Tracker is a critical effort in Port- they can compare one billing period to land General Electric’s goals laid out in another going back 13 months. This gives the company’s resource planning. Since customers tools to understand their energy the program launched in December 2011, usage and make smart changes. PGE customers using Energy Tracker have provides tips on how to save money and reduced their annual energy consumption reduce energy consumption, and custom- Energy Tracker account summary. ers are able to create a profile that helps identify a savings model appropriate for their home or business. Customers can set goals to review through Energy Tracker as usage information becomes available. This encourages active engagement that brings them back to the website, where Energy Tracker can connect them to energy efficiency programs, available incentives, and actions they can take on their own.

PGE’s new text and email alerts are an opportunity to directly engage customers. These alerts provide weekly information on

258 Innovations Across The Grid PGE is committed to ongoing improvements to Energy Tracker that give customers the power to control their energy usage and electric bill. Providing timely, accurate information and concrete, effective actions to customers in a digestible fashion is key to continued success. PGE is currently undertaking a multi-year transformation of their customer service and information systems, which will make further enhancements to Energy Tracker necessary and fea- Energy Tracker text alert. sible. This includes enabling more granular data, enabling future pricing and predictive 3 percent faster than customers not using programs. As one of the key avenues in the program, representing an additional which PGE communicates with customers, energy savings of 332 kWh per customer the utility is committed to making Energy on average. Tracker a relied-upon tool for customers.

Project Contact Company Description

Joe Keller Portland General Electric, headquartered Program Manager in Portland, OR, is a fully integrated electric [email protected] utility that serves approximately 838,000 503.464.8668 residential, commercial, and industrial customers in Oregon. We’ve been consistently delivering safe, reliable, and respon- sibly generated electricity in northwest Oregon since 1889. We rely on several different sources to effectively balance power supply resources with customer demand which contributes to higher reliability and more stable prices for our customers. For more information visit our website at PortlandGeneral.com.

Chapter 3 – Customer Solutions 259 “SDG&E's Manage-Act-Save program sustains customer engagement by targeting individual customer interests and motivations rather than taking a one-size- fits-all approach.” CUSTOMER SOLUTIONS PAYMENT AND COMMUNICATIONS OPTIONS | PROGRAM ENGAGEMENT

San Diego Gas & Electric Manage-Act-Save

Technology Project Highlights

Partner(s) SDG&E’s Manage-Act-Save program customer Simple Energy engagement program, in its second year, has about 375,000 residential customers enrolled. Preliminary indications show approximately 4.5 percent average kWh savings per customer. Email open rates among active users have remained consistently above 20 percent over 16 months. Average visitor session on the Manage-Act-Save site lasts close to 4 minutes, showing that customers are interested and engaged with the site content. Program participants have completed over 134,000 energy-saving tips to date and redeemed over 23,000 rewards.

Chapter 3 – Customer Solutions 261 Project Description

In an effort to demonstrate value from smart grid implementations to residential customers, San Diego Gas & Electric (SDG&E) partnered with Simple Energy to deliver a customer engagement program. The Man- age-Act-Save program seeks to empower about 375,000 residential customers to better manage their energy usage. It does this by utilizing data from SDG&E’s smart grid and customer information system as well as the platform’s internal continuous feedback loop of customer activity and preferences. Simple Energy’s engagement platform delivers personalized messaging to participants, encourages individual comparison and competition through gamification, and Manage-Act-Save dashboard view. rewards customers for energy savings.

Following the successful implementations does not yet have email information, in of the ‘Biggest Energy Saver’ pilot program an effort to drive them online for contin- in 2011, with roughly 100 customers, and ued digital engagement through both the the ‘San Diego Energy Challenge’ in 2012 Manage-Act-Save website and SDG&E’s My that engaged 42,400 customers, SDG&E Account. Weekly ‘Energy Insights’ emails expanded the availability of Simple Ener- help customers make sense of their recent gy’s customer engagement platform, energy usage and take action to save more. branded as ‘Manage-Act-Save’, to more of All communications (digital and direct mail) its residential customers. The Manage-Act- are personalized to the individual customer; Save program has been able to deliver sus- containing micro-targeted energy-saving tained customer engagement and success- tips and recommended SDG&E programs fully motivated customers to continuously based on a user’s SDG&E account and con- take action on the platform, even after a sumption data, as well as publicly available period of over 16 months. Average energy data and past website activity. savings per customer is around 4.5 percent. Each personalized, targeted communica- The Manage-Act-Save program is powered tion drives customers online to explore by Simple Energy software and branded as the Manage-Act-Save web platform. SDG&E. Paper reports are sent every-other There, customers can interact with a range month to customers for whom SDG&E of experiences.

262 Innovations Across The Grid Energy Insights — The data-driven mes- Energy Rewards — reward points drive sages in the Energy Insights feature customers to take specific actions and help customers better understand their increase satisfaction. Manage-Act-Save energy consumption and conserva- makes saving energy exciting and reward- tion options and put this information ing: by saving energy and taking action into context by comparing usage rela- on the platform, customers earn points tive to similar and efficient households. that are redeemable for gift cards and Weather and building information is discounts to local and national merchants. factored to help customers understand Through a network of local stores, restau- how much of their energy usage is within rants, and national partners, customers their locus of control, and then motivate have a broad range of choices where they them with goals to encourage energy can "spend" their reward points. saving behaviors and activities. Finally, Through programs like Manage-Act-Save, targeted tips and program suggestions SDG&E has found that different motiva- give customers the tools to understand tions work for different people and that and save. those motivations change over time. Sus- Energy Community — energy-saving com- tained customer engagement is achieved petitions and leaderboards encourage when utilities are able to target individual customers to take action. Customers are desires rather than take a one-size-fits-all empowered to engage with their energy approach. While some people are driven usage in the same way that they engage to save energy through neighbor compar- with everything on the web: socially. Customers can see how they compare isons, others are more interested in timely to other users on the leaderboard, information delivered on their smartphone earn virtual badges by taking certain and motivated by the opportunity to com- actions, and earn entries to win prizes by pete with others and receive virtual badges saving energy. and points.

Project Contact Company Description

Paola Rosselli SDG&E is a regulated public utility that Program Advisor provides energy service to 3.4 million [email protected] people through 1.4 million electric meters 858.654.1581 and 860,000 natural gas meters in San Diego and southern Orange counties. Our service area spans 4,100 square miles. www.sdge.com.

Chapter 3 – Customer Solutions 263 “Southern Company's suite of outage communication tools provide the kind of outage information that customers want in a timely manner.” CUSTOMER SOLUTIONS PAYMENT AND COMMUNICATIONS OPTIONS | PROGRAM ENGAGEMENT

Southern Company Customer Outage Communications

Technology Project Highlights

Partner(s) Outage map provides individual location, county, or iFactor zip code level views of outages, number of customers impacted, estimated restoration time (ERT), Oracle and outage cause. Southern Company Outage alerts selected by customer (text, email, Services IT (SCS IT) voice) provide ERT, outage cause, ERT updates, and Ventyx restoration notification. During February 2014 ice storm, Georgia Power outage map saw 860,000 hits in five days. Improves customer satisfaction. Reduces outage-related call volume.

Chapter 3 – Customer Solutions 265 Project Description

The relationship between Southern Com- Based on this feedback, Southern Com- pany and its customers has been a major pany decided to expand the customer focus for years, one built on trust through experience beyond the traditional com- consistent service. The four major operat- munication channels by designing and ing companies, Alabama Power, Georgia implementing a proactive outage commu- Power, Gulf Power, and Mississippi Power, nications technical solution. To achieve its have consistently received high customer communication goals, Southern Company satisfaction ratings for customer service. partnered with iFactor to implement a suite Customer and industry surveys found that of communication tools, including outage customers are seeking more information maps, automated alerts, and mobile appli- about outages, in a timelier manner, and cations that maintain the look and feel of wanted it in ways beyond the traditional Southern Company’s brand while allowing method of phone calls to an interactive for differences according to each operating voice response system or customer ser- company’s needs. vice consultant. Customers want access to outage maps on computers and mobile For Georgia Power, this project began Q3 devices. Customers also want to receive 2012 and had an operational outage map information from the utility via text, email, in service Q2 2013, followed by the full suite or voicemail without having to request it of outage alert notifications in Q4 2013. The and control which kinds of communications other operating companies have deployed they receive. or are currently deploying similarly.

Outage Alerts Marketing Material.

266 Innovations Across The Grid Outage Map — February 2014 Ice Storm.

The outage communication systems were Outage Map, Outage Alerts (text/email/ developed and deployed by cross-func- voice), and Outage Mobile App: iFac- tional teams with membership from mul- tor’s suite of products (including Storm Center and Notifi) visualize outages and tiple departments, including distribution, execute all proactive communications. marketing, customer service, legal, and corporate communications. Using cus- Customer Preference Center (CPC): developed by SCS IT on the corporate tomer feedback as the measuring stick, web site, this application allows custom- every aspect of the customer experience ers to input their contact information was reviewed from web site layout, internal and select their preferred communica- system links, outage messages, legend and tion channels. thematic map colors, terms and conditions, Corporate web sites (desktop and and FAQ links. mobile): promote the Outage Com- munication program, links to appli- The key technologies involved in the solu- cations, the CPC, and other outage- tion are: related information.

Outage Management System (OMS): An important design requirement for the Oracle’s NMS application suite acts as project was that it must be easy to use, and the source for all outage information. that all methods of outage communications

Chapter 3 – Customer Solutions 267 must deliver consistent and timely outage hits during a five-day period. Sign-ups for information. With the successful integra- outage alerts increased three-fold during tion and deployment of the project’s com- these five days compared to the previous ponents, these goals have been achieved. three-month period. Throughout the 2014 Beyond the technologies, employee edu- summer storm season, customer and local cation and modified work processes to sup- media utilization of the outage commu- port the information provided to customers nication tools has continued to grow. In are key ingredients to project success. addition, Georgia Power residential cus- Acceptance of the outage communication tomer satisfaction surveys completed in tools, and feedback from customers, local July 2014 show the company’s largest per- media, and other sources has been over- cent gains in the area of outage communi- whelmingly positive. As an example, during cation, helping propel Georgia Power into an ice storm in February 2014, the Georgia the top quartile of overall electric utility Power outage map received over 860,000 customer satisfaction.

Project Contact Company Description

John A. Zumbado Southern Company is one of the larg- Senior Engineer, Georgia Power est energy providers in the United [email protected] States. Based in Atlanta, Ga., Southern 404.506.6077 Company owns electric utilities in four states (Alabama Power, Georgia Power, Edwin C. (Ed) Carlsen Gulf Power, and Mississippi Power) Manager, Distribution Management and a competitive generation com- Systems pany. Known for generating, transmit- [email protected] ting, and distributing electricity and 404.506.3426 providing excellent customer service to its 4.4 million customers, Southern Company is also leading the nation’s nuclear renaissance through the construction of the first new nuclear units to be built in a generation of Americans and the development of a state-of-the-art coal gasification plant. www.southernco.com.

268 Innovations Across The Grid

Company Index

A B

ABB 47, 83, 101-102, 105, 111, 127, 139 Baltimore Gas Accenture 143, 145, 253 & Electric (BGE) III, 99, 104-108 Battelle 71-72 Aclara 249, 257 Beckwith Electric Co. 105 Advanced Energy 47 BGE see Baltimore Gas & Electric Aeolos 21 Black & Veatch 105-106 AEP see American Electric Power BRIDGE Energy Group VII AES Corporation 15 Broadscale Group VII AES Energy Storage 43-45 BuildingIQ VII, 239-240 Alabama Power 266

Alstom VII, 41, 149-150 C Alstom Grid 143 Ambient Corporation 143, 145 C3 Energy VII, 153-155 American Efficient VII CAISO see California ISO American Electric California Energy Commission (CEC) 62-63 Power (AEP) III, VI, 100-103 California ISO (CAISO) 61-63, 84 American Superconductor (AMSC) 119-121 California Public Utilities Commission (CPUC) 176, 244 Amprion III, 32-35 Canon Environmental Technologies 27 AMSC see American Superconductor CEC see California Energy Commission Antares Group, Inc. 25 CenterPoint Energy III, IV, VI, 99, 110-113, Apple 144 199, 204-208 Aquion Energy 25 CGI Group, Inc. 171-172 Arizona Corporation Commission 94 Clean Power Research 79 Austin Energy IV, 199, 200-203 Clinton Global Initiative 140 Avista Utilities III, VI, 15, 16-19 ComEd see Commonwealth AWS Truepower 37-41 Edison Company

271 Commonwealth Edison IV, 114-117, Électricité Réseau Company (ComEd) 118-121, 199, Distribution France (ERDF) IV, 148-151 210-213, 214-217, Enbala VII 218-221 Enel IV, 98, 152-155 Comverge VII, 231-233 EnerDel 71 Con Ed see Consolidated Edison Consolidated Edison IV, VI, 99, Energate VII (Con Ed) 122-125, 126-129 EnergyHub 201-202 Copper Development Association VII EnerNOC VII, 32-35 CPUC see California Public EnteliosAG 34 Utilities Commission EPRI see Electric Power Research Institute

D ERCOT see Electric Reliability Council of Texas DHS see U.S. Department of Exelon Corporation VI Homeland Security Digital Grid Technologies, Inc. 163 F DNV GL 41 Facebook 144, 216 DOE see U.S. Department of Energy First Solar VII, 51-52 Dominion North Carolina Power III, 20-22 FirstFuel Software VII Dominion Virginia Power III, 24-27 Florida Power and DTE Energy IV, VI, 98,130-134, Light Company IV, VI, 156-160 136-140, 198, 222-225 Duke Energy IV, VI, 99, 142-146, G 198, 225-229 G&W Electric 111, 115-116 E GE 47, 111, 157, 179, 187 E.ON Climate and Renewables 93, 95 GE Power & Water VII Eaton 71 Georgia Power III, 28-31, 266, 268 Echelon 143, 145 Google 98 ecobee 17-18, 201-202, 235, 237 Great Plains Energy VI Ecova VII Gridco Systems VII EDF see Électricité de France GridSense VII Electric Power Research Gulf Power IV, 199, 230-233, 266 Institute (EPRI) 62, 67-69, 187 Electric Reliability Council H of Texas (ERCOT) 202 Électricité de France (EDF) 150 Hawaiian Electric Company III, 15, 36-41

272 Innovations Across The Grid I M

IBM VII, 130-133, 249 MidAmerican Renewables III, 50-54 IEC see International Mississippi Power 266 Electrotechnical Commission iFactor 211, 265-267 N

Illinois General Assembly 212 National Grid IV, VI, 234-237 Innovari VII The National Society of Integral Analytics 17 Professional Engineers 233 Integrys Energy Group VI National Weather Service 38 Intelligent Energy Solutions VII Navigant 79 International Electrotechnical Nest Labs 201-202, 214-217, 221 Commission (IEC) 188 Newsweek 233 Intersolar North America 51 NGK Insulators, LTD. 61-62 IPL III, 42-45, 46-49 NorthWestern Energy IV, VI, 10, 56-59 IPS Energy 102 NRG Energy 52 Itron VII, 111, 179, 183-184, 205, 249 NSTAR III, 162-165 NV Energy IV, VI, 199, 238-241 J O Jacobs & Clevenger 243 Johnson Controls VII OGE Energy Corp. VI Oklahoma Gas K & Electric IV, 166-169, 170-173 Old Dominion University 27 Kettle Brand 72 Opower VII L Oracle VII, 3, 183-184, 191, 193, 265 OSI 105, 107 Landis+Gyr 157, 179 Lawrence Berkeley P National Laboratory (LBNL) 79 Pacific Gas and III, IV, VI, 6, 15, 52, 60-64, LBNL see Lawrence Berkeley Electric Company 174-177, 242-246 National Laboratory Pepco Holdings, Inc. (PHI) III, IV, VI, 178-181, Leiden University 120 182-185, 199, LG Chem 83 248-250, 252-255 Lindsey Manufacturing Co. 105 PG&E Corporation VI LinkedIn 144 PHI see Pepco Holdings, Inc.

Company Index 273 PNM Resources III, VI, 15, 66-69 SEL 111 Portland General Electric III, IV, VI, 15, Send Word Now 205 70-73, 198, Sensus VII 256-259 Sentient Energy 79, 157 POWERGRID International 233 Siemens VII, 41, 111 Prologis 27 Silver Spring VII, 105-106, 115, PSEG see Public Service Electric Networks 157, 167-168, 179, and Gas Company 183-184, 249 Public Service Electric and Simple Energy VII, 261-262 Gas Company (PSEG) III, 74-77 SMA 47 Solectria Renewables 47 Q Southern California III, IV, VI, 15, 78-81, Quanta Technology 83 Edison (SCE 82-85, 186-189 Southern Company IV, VI, 203, 264-268 R Southern Company Services VI, 265, 267 Referentia Systems, Inc. 41 Space-Time Insight 187 RES Americas VII Spirae 17 Rhode Island Division of Public Structure see The Structure Group Utilities 236 The Structure Group 105 Rhode Island Energy Efficiency Resource Management Council 236 SunPower Corporation 187 Rhode Island Public Utilities Commission 236 T

Targetbase 243 S Tendril VII, 227-228 S&C Electric TenneT III, 32-35 Company 61, 115, 143, 145, 157 Tollgrade Communications, Inc. 137-140 Saft 149-150 Tucson Electric Power III, 86-90, 92-95 San Diego Gas Twitter 216 and Electric IV, 198, 260-263 SAP 253-254 U SCE see Southern California Edison U.S. Army 28-31, 93-95 Schneider Electric 47 U.S. Department of Defense 94-95 Schweitzer Engineering U.S. Department of 41, 71, 84, 112, Laboratories see SEL Energy (DOE) 157-158, 188

274 Innovations Across The Grid U.S. Department of X Homeland Security (DHS) 10, 119-121 U.S. General Services Xcel Energy IV, VI, 190-194 Administration 95

UCA International Users Y Group (UCAIug) 188 UCAIug see UCA International Z Users Group UGE 21 # University of Arizona 87-89 University of 2D2C, Inc. 235 California at Irvine 187 University of New Mexico (UNM) 67-69 University of Southern California (USC) 187 UNM see University of New Mexico UNS Energy Corporation VI USC see University of Southern California Utilidata 105

Vectorform 223 Ventyx 111, 265 Verizon Wireless 143, 145 ViZn Energy 25 VJ Technologies 123-124

The Wall Street Journal 233 Washington State University (WSU) 17-19 Windspire 21 WSU see Washington State University

Company Index 275

The Edison Foundation INSTITUTE for ELECTRIC INNOVATION

About the Institute for Electric Innovation The Edison Foundation Institute for Electric Innovation (IEI) focuses on advancing the adoption and application of new technologies that will strengthen and transform the power grid. IEI’s members are the investor-owned electric utilities that represent about 70 percent of the U.S. electric power industry. The membership is committed to an affordable, reliable, secure, and clean energy future.

IEI promotes the sharing of information, ideas, and experiences among regulators, policymakers, technology companies, thought leaders, and the electric power industry. IEI also identifies policies that support the business case for the adoption of cost-effective technologies.

IEI is governed by a Management Committee of electric industry Chief Executive Officers. In addition, IEI has a Strategy Committee made up of senior electric industry executives and more than 30 smart grid technology company partners.

About The Edison Foundation The Edison Foundation is a 501(c)(3) charitable organization dedicated to bringing the benefits of electricity to families, businesses, and industries worldwide. Furthering Thomas Alva Edison’s spirit of invention, the Foundation works to encourage a greater understanding of the production, delivery, and use of electric power to foster economic progress; to ensure a safe and clean environment; and to improve the quality of life for all people. The Edison Foundation provides knowledge, insight, and leadership to achieve its goals through research, conferences, grants, and other outreach activities.

Institute for Electric Innovation 701 Pennsylvania Avenue, N.W. Washington, D.C. 20004-2696 202.508.5440

Visit us at: www.edisonfoundation.net.