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Smart Grid Strategy and Roadmap Foundation Project EXHIBIT A PAGE 1 OF 40 Smart Grid Strategy and Roadmap March 2016 Update Hawaiian Electric Maul Electric Hawal'l Electric Light EXHIBIT A PAGE 2 OF 40 Forward In 2014, the Hawaiian Electric Companies^ filed a Smart Grid Roadmap and Business Case with the Commission,^ proposing to implement Smart Grid at all three of our operating utilities, on the five islands we serve. As noted in the Commission’s Inclinations,' the Commission believes Hawaii should be poised to lead the world in the development of advanced grids....” Our Smart Grid will help modernize our power grids, enable integration of more renewable energy, reduce outage times, increase the efficiency of our operations, reduce costs, further public policy goals and deliver benefits to our customers. This Smart Grid Strategy and Roadmap (“Smart Grid Plan”) supersedes that prior filing, and provides a framework to more comprehensively “connect the dots” between the many components, projects and associated Commission applications needed to execute our Smart Grid vision by investing in new technologies to deliver the benefits of a smart grid to customers. The evolution of Smart Grid technology is driving unprecedented changes in the energy industry in general and Hawai‘i in particular. Implementing a Smart Grid efficiently and cost- effectively is a challenging endeavor. Smart Grid brings major changes for the Companies, our customers and the State of Hawai‘i. Our plan reflects our understanding of the complexity of this undertaking and our efforts to lead the way on energy produced from natural resources such as solar, wind and hydropower, which are constantly replenished. This Smart Grid plan is considered to be a “living document” that will be updated periodically in accordance with the Companies’ Smart Grid vision, increasingly refined assumptions, applicable technology improvements and the constantly evolving needs and wants of our customers, including reliability, affordability, safety and peace of mind. This document is specifically intended to provide our policymakers, third-party partners and technology suppliers a more detailed understanding of the Hawaiian Electric Companies’ Smart Grid vision, strategy, roadmap and related projects. Collectively, these initiatives represent one of the largest coordinated efforts we have ever undertaken. Throughout its progressive implementation. Smart Grid will play an increasingly pivotal role in Hawaii’s energy future, and the Companies look forward to working with the Commission, the Consumer Advocate and other stakeholders to make Hawaii’s Smart Grid a leading model within the industry, while demonstrating how it will benefit customers, enable more renewable energy and improve customer service. Hawaiian Electric, Maui Electric and Hawaii Electric Light are collectively referred to herein as the “Hawaiian Electric Companies” or “Companies.” ^ Filed March 17, 2014 in Docket 2008-0303. ^ See paoes 10-11 ofAppendixA: Commission’s Inclinations on the Future of Hawaii’s Electric Utilities lo Decision and Order No. 32052, filed April 28, 2014 in Docket No. 2012-0036, referred to herein as the “Commission’s Inclinations.” ▼ Hawaiian Electric ^ Maul Electric A. ▲ Hawal'l Electric Light EXHIBIT A PAGE 3 OF 40 Table of Contents SMART GRID STRATEGY AND ROADMAP OVERVIEW.................................................................. 1 I. What is a Smart Grid? How does it work? Why do we need it?........................................................ 2 n. Our Smart Grid Vision......................................................................................................................... 5 III. Key Strategic Themes to Accomplish our Smart Grid Vision.......................................................... 6 A. Customer Empowerment................................................................................................................... 7 B. Distributed Energy Resource Integration.......................................................................................... 8 C. Grid Efficiency, Reliability and Resiliency...................................................................................... 9 D. Safety and Workforce Efficiency...................................................................................................... 9 E. Innovation, Information and Connectivity...................................................................................... 10 IV. Our Smart Grid Value Proposition.................................................................................................. 10 V. Our Smart Grid Development and Approach..................................................................................... 15 A. Guiding Principles for Smart Grid Architecture and Design.......................................................... 16 B. Overall Process Methodology......................................................................................................... 17 C. Engaging Our Smart Grid Customers............................................................................................. 19 1. Safety.......................................................................................................................................... 20 2. Security....................................................................................................................................... 20 3. Privacy........................................................................................................................................ 21 4. Communications Plan................................................................................................................. 21 D. Partnerships and Third-Party Collaborations..................................................................................21 VI. Our Smart Grid Roadmap............................................................................................................... 22 A. Overall 20-Year Long-Term Smart Grid View (2012-2031)..........................................................22 B. Near-Term Smart Grid Related Projects View (2016-2021)..........................................................24 1. Customer Empowerment............................................................................................................. 26 2. Distributed Energy Resources Integration..................................................................................28 3. Grid Efficiency, Reliability and Resiliency................................................................................ 29 4. Safety and Workforce Efficiency................................................................................................30 5. Innovation, Information and Connectivity..................................................................................31 VII. CONCLUSION............................................................................................................................... 32 APPENDIX A - Definitions and Abbreviations...................................................................................... A-1 •V V Hawaiian Electric ^ Maul Electric A. ^ Hawal'l Electric Light EXHIBIT A PAGE 4 OF 40 SMART GRID STRATEGY AND ROADMAP OVERVIEW Smart Grid is a key component of the Hawaiian Electric Companies’ business strategy and ongoing transformation into a next generation energy company that is committed to improving the way energy is delivered using new technologies that benefit customers. Our Smart Grid is defined as the integration and application of real-time monitoring, advanced sensing, communications, analytics and control that enable the dynamic flow of both energy and information to accommodate existing and new forms of energy supply, delivery and use in a secure, reliable and efficient electric power system from generation source to customers.^ Our Smart Grid vision is to provide an increasingly intelligent and automated electric system that utilizes technology advancements to leverage capabilities in telecommunications, computing, sensing and controls for transmission and distribution to all service locations via a multi-direction flow of energy and information. Smart Grid will enable our customers and us to control and make more informed and timely energy decisions. We will utilize these technology advancements to better meet customers’ expectations, the State’s energy policy objectives, communities’ energy demands, and our overarching responsibility to provide safe, reliable and secure electric service. Smart Grid will modernize our power grids, enabling a more seamless integration of renewable energy, increasing reliability and efficiency, protecting the environment, lowering costs, and providing customers with greater visibility of their energy usage, as well as more options for energy choices. The value proposition for a Smart Grid is unique in that many of its related benefits - such as lower dependence on imported fuel, lower greenhouse gas (“GHG”) emissions and increased clean energy economic growth - are community based, complex and/or difficult to readily quantify. There are also hard benefits that are not only quantifiable but also realized as a result of implementing our Smart Grid strategy. Hence, we present an overarching compelling case that appeals not only to those who desire direct benefits but also for those who desire to improve our community and environment. As a result, the strategy for realizing our Smart Grid vision is focused on five strategic themes: (A) customer empowerment;
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