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					BPL Report [Embargoed Draft]                            NARUC   Formatted: Font: 10 pt
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          CONFIDENTIAL DRAFT
     EMBARGOED UNTIL RELEASE AT

       NARUC 2005 WINTER MEETINGS




National Association of Regulatory Utility
       Commissioners (NARUC)

   REPORT OF THE BROADBAND OVER
                                                                Comment [jab1]: Should powerlines be one
      POWER LINES TASK FORCE                                    word???




                               February 2005




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                                 EXECUTIVE SUMMARY
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The Broadband over Power Lines (BPL) Task Force of the National Association of Regulatory                 Formatted: Font: (Default) Times New Roman,
Utility Commissioners was formed in December 2003 to explore the potential for deployment of              11 pt
Broadband over Power Lines and, in particular, the State commission role in advancing use of this         Formatted: Justified
technology.                                                                                               Formatted: Font: (Default) Times New Roman
                                                                                                          Formatted: Font: (Default) Times New Roman,
BPL is a synergistic technology used to deliver high-speed data to end users over existing electric       11 pt
power networks and lines. It was the subject of an unprecedented joint statement by Chairmen of the
Federal Communications Commission and the Federal Energy Regulatory Commission because the
technology holds promise for extending service to underserved areas, facilitating broadband
competition, and enhancing both security and reliability through a “smart grid.” Throughout 2004,
Task Force met with industry experts and representatives of BPL broadband providers, electric
utilities, and trade associations. This report is the first by the Task Force, which is comprised of
commissioners involved in both the electricity and telecommunications sectors.

Early in its efforts, the Task Force saw the need to examine BPL issues within three broad areas:
Technology, Security, and Regulatory. The Task Force spent considerable time learning about the
basics of the technology. A basic understanding of the limits and potential of the technology is
necessary as a backdrop for examination of the security and regulatory issues. On security, our
review made clear that there is much to appreciate about BPL from both a homeland security
standpoint, as well as the reliability potential inherent in the many “smart grid” opportunities
presented by BPL for electric utilities. Finally, from a regulatory standpoint, we recognize that BPL
deployment will likely encounter regulatory issues that are common to network industries, e.g., pole
attachment rates, open access, cost allocation, affiliate transactions, and rights-of-way. Since BPL is
an integrated component of the electric distribution network, the Task Force believes that it will be
primarily up to the individual States to tailor appropriate regulatory roadmaps and responses.            Formatted: Font: (Default) Times New Roman
                                                                                                          Formatted: Font: (Default) Times New Roman,
The Task Force recommends State commissioners take the time now to learn more about BPL                   11 pt
technology. Policy makers will want to want monitor BPL to see whether and how it actually
delivers on its many promises. States with BPL trials or small commercial deployments are
encouraged to remain vigilant in their oversight of the offering and to share their observations with
the Task Force.

Prescribing an anticipatory form of regulation could presume that we can know how technologies
and markets will evolve. Regulators also want to avoid favoring any technology over others and
thereby distorting the market or impeding innovation. Absent any actual or imminent market failure
or other threat to the public interest, however, oversight can be minimally intrusive. For BPL, the
Task Force suggests a light-handed approach to regulation with a longer term focus on resolution of
the regulatory issues cited above.                                                                        Formatted: Font: (Default) Times New Roman

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                                          January 2005 - DRAFT
BPL Report [Embargoed Draft]                                                                 NARUC      Formatted: Font: 10 pt
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Over the coming year, the Task Force will remain engaged with industry stakeholders and                 Formatted: Font: 10 pt
customers, as we look to optimize the benefits of the technology for the public. The Task Force plans
to continue to explore regulatory policy issues, as well as to spend more time in 2005 examining
rural pilots. Specifically, we expect to:

(1)      Continue to monitor the ongoing pilot programs and commercial deployments;
(2)      Focus on emerging regulatory issues with an eye towards formulating a best practices guide
for State regulators and providing updated surveys on State and industry activity;
(3)      Scrutinize rural BPL deployments with a particular emphasis on any emerging technologies
and circumstances that can facilitate rollout

If you have surveys, white papers, studies, or technology overviews you believe may be of use to the
Task force in 2005, please send an e-mail to NARUC’s General Counsel, Brad Ramsay at                    Formatted: Font: (Default) Times New Roman
jramsay@naruc.org.                                                                                      Formatted: Font: (Default) Times New Roman,
                                                                                                        11 pt
                                                                                                        Formatted: Font: (Default) Times New Roman

(Beecher will draft)                                                                                    Formatted: Font: Not Bold, Highlight


add urls to references                                                                                  Formatted: Highlight
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                                         January 2005 - DRAFT
BPL Report [Embargoed Draft]                                  NARUC    Formatted: Font: 10 pt
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CONTENTS                                                               Decimal aligned + 6.25", Right + Not at 6"
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EXECUTIVE SUMMARY                                                i     Formatted                                     ...
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   I.INTRODUCTION                                                 1    Formatted: Right: -0.05", Tab stops: 6.13",
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   I.
                                                                       Formatted: Dotted underline, Small caps

   II.     OVERVIEW                                               2    Formatted                                     ...
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   III.    TECHNOLOGY                                           533    Formatted: Dotted underline, Small caps
                                                                       Formatted                                     ...
   IV.     SECURITY                                            1354    Formatted: Small caps
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   V.      REGULATORY                                           2025
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   VI.     GENERAL CONSIDERATIONS AND CONCLUSIONS             62831
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APPENDIX A: CHRONOLOGY OF BL TASK FORCE ACTIVITIES           A-1337
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APPENDIX B: NARUC SURVEY OF STATE COMMISSION REGARDING BPL    B-138    Formatted                                     ...
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                                January 2005 - DRAFT
BPL Report [Embargoed Draft]                                                                  NARUC       Formatted: Font: 10 pt
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EXECUTIVE SUMMARY                                                                                         Formatted: Font: 10 pt
                                                                                                          Formatted: Font: 16 pt
The Broadband over Power Lines (BPL) Task Force of the National Association of Regulatory                 Formatted: Left: 1.15", Right: 1.15"
Utility Commissioners was formed in December 2003 to explore the potential for deployment of
Broadband over Power Lines and, in particular, the State commission role in advancing use of this
technology.

BPL is a synergistic technology used to deliver high-speed data to end users over existing electric
power networks and lines. It was the subject of an unprecedented joint statement by Chairmen of the
Federal Communications Commission and the Federal Energy Regulatory Commission because the
technology holds promise for extending service to underserved areas, facilitating broadband
competition, and enhancing both security and reliability through a “smart grid.” Throughout 2004,
the Task Force met with industry experts and representatives of BPL broadband providers, electric
utilities, and trade associations. This report is the first by the Task Force, which is comprised of
commissioners involved in both the electricity and telecommunications sectors.

Early in its efforts, the Task Force saw the need to examine BPL issues within three broad areas:
Technology, Security, and Regulatory. The Task Force spent considerable time learning about the
basics of the technology. A basic understanding of the limits and potential of the technology is
necessary as a backdrop for examination of the security and regulatory issues. On security, our
review made clear that there is much to appreciate about BPL from both a homeland security
standpoint, as well as the reliability potential inherent in the many “smart grid” opportunities
presented by BPL for electric utilities. Finally, from a regulatory standpoint, we recognize that BPL
deployment will likely encounter regulatory issues that are common to network industries, e.g., pole
attachment rates, open access, cost allocation, affiliate transactions, and rights-of-way. Since BPL is
an integrated component of the electric distribution network, the Task Force believes that it will be
primarily up to the individual States to tailor appropriate regulatory roadmaps and responses.

The Task Force recommends that State commissioners take the time now to learn more about BPL
technology. Policy makers will want to want monitor BPL to see whether and how it actually
delivers on its many promises. States with BPL trials or small commercial deployments are
encouraged to remain vigilant in their oversight of the offering and to share their observations with
the Task Force.

Prescribing an anticipatory form of regulation could presume that we can know how technologies
and markets will evolve. Regulators also want to avoid favoring any one technology over others and
thereby distort the market or impede innovation. Absent any actual or imminent market failure or
other threat to the public interest, however, oversight can be minimally intrusive. For BPL, the Task
Force suggests a light-handed approach to regulation with a longer term focus on resolution of the
regulatory issues cited above.

Over the coming year, the Task Force will remain engaged with industry stakeholders and
customers, as we look to optimize the benefits of the technology for the public. The Task Force plans
to continue to explore regulatory policy issues, as well as to spend more time in 2005 examining
rural pilots. Specifically, we expect to:

(1)     Continue to monitor the ongoing pilot programs and commercial deployments;                        Formatted: Indent: Left: 0", Hanging: 0.5"
(2)     Focus on emerging regulatory issues with an eye towards formulating a best practices guide        Formatted: Centered, Right: -0.25", Border:
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                                          iJanuary 2005 - DRAFT
BPL Report [Embargoed Draft]                                                                NARUC      Formatted: Font: 10 pt
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(3)     Scrutinize rural BPL deployments with a particular emphasis on any emerging technologies       Formatted: Font: 10 pt
        and circumstances that can facilitate rollout.

If you have surveys, white papers, studies, or technology overviews you believe may be of use to the
Task force in 2005, please send an e-mail to NARUC’s General Counsel, Brad Ramsay at
jramsay@naruc.org.
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                                        iiJanuary 2005 - DRAFT
BPL Report                                                                                    NARUC




                                                  I.                                                   Formatted: Font: 15 pt, Small caps
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INTRODUCTIONI. INTRODUCTION                                                                            width)
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On December 16, 2003, the National Association of Regulatory Utility Commissioners (NARUC)             Formatted: Font: 11 pt
announced the creation of a Ttask Fforce designed to explorecharged with exploring the potential for   Formatted: Justified
deployment of Broadband over Power Lines (BPL) and, in particular, the potential role of State
public utility commissions in advancing the use of this technology. Then NARUC President, the
Hon. Stan Wise of the Georgia Public Service Commission, stated that:                                  Formatted: Font: 11 pt, Not Bold
                                                                                                       Formatted: Font: 11 pt
         “(B)roadband over Power Lines may prove to be the third broadband pipe into
                                                                                                       Formatted: Justified, Indent: Left: 0.5", Right:
         residential consumers’ homes, providing significant competition for cable                      0.7"
         modem and DSL service. I am pleased to announce that six extremely capable
         State regulators have agreed to join this effort. I am charging them with the task            Formatted: Font: 11 pt
         of seeing what States can do to complement the investigations of the FCC and the
                                                                                                       Formatted: Font: 11 pt
         FERC in this area.1”
                                                                                                       Formatted: Justified
Commissioner Wise appointed the following State persons regulators to the Task Force:                  Formatted: Justified, Right: 0.45"
                                                                                                       Formatted: Font: 11 pt, Not Bold
        Hon. Laura Chappelle, Michigan Public Service Commission, Task Force Chair and                Formatted: Font: 11 pt
         Vice Chair of the NARUC Committee on Electricity.
                                                                                                       Formatted: Font: 11 pt, Not Bold
        Hon. Thomas J. Dunleavy, New York Public Service Commission, Co-Vice Chair of
         the NARUC Committee on Telecommunications.                                                    Formatted: Font: 11 pt

        Hon. Julie Caruthers Parsley, Texas Public Utility Commission, Member of the                  Formatted: Font: 11 pt, Not Bold
         NARUC Committee on Electricity.                                                               Formatted: Font: 11 pt
        Hon. Tony Clark, President, North Dakota Public Service Commission, Co-Vice                   Formatted: Font: 11 pt, Not Bold
         ChairMember of the NARUC Committee on Telecommunications.                                     Formatted: Font: 11 pt
        Hon. Denise A. Bode, Chairman, Oklahoma Corporation Commission, Member of
                                                                                                       Formatted: Font: 11 pt
         the NARUC Committee on Telecommunications.
                                                                                                       Formatted: Font: 11 pt, Not Bold
        Hon. Connie O. Hughes, New Jersey Board of Public Utilities, Member of the
         NARUC Committee on Telecommunications and Chair of the NARUC Ad Hoc                           Formatted: Font: 11 pt
         Committee on Critical Infrastructure.                                                         Formatted: Font: 11 pt, Not Bold
                                                                                                       Formatted: Font: 11 pt
With the exception of Commissioner Chappelle, who serves as Vice Chair of NARUC’s Committee
                                                                                                       Formatted: Justified
on Electricity, each of the the NARUC BPL Task Force members also belong to NARUC’s
Committee on Telecommunications. Commissioner Dunleavy is Co-Vice Chair of that Committee.             Formatted: Font: 11 pt, Not Bold

Additionally, In addition, the Hon. Robert B. Nelson of the Michigan Public Service Commission,        Formatted: Font: 11 pt
who chairs the NARUC Committee on Telecommunications, participated as a source of valuable             Formatted: Font: 11 pt, Not Bold
guidance in the BPL Task Force’s meetings and deliberations of the Task Force.                         Formatted: Font: 11 pt
                                                                                                       Formatted: Indent: Left: 0"
In January 2005, NARUC President, the Hon. Marilyn Showalter, Chairwoman of the Washington
Utilities and Transportation Commission, reconfirmed the Task Force membership.                        Formatted: Not Highlight
                                                                                                       Formatted: Highlight
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11
  Source:        Source: “NARUC Taskforce on Broadband Over Power Lines” (January 29, 2005) URL:       width), Tab stops: 6.25", Right + Not at 6"
http://www.naruc.org/displaycommon.cfm?an=1&subarticlenbr=334                                          Formatted: Font: 10 pt


January 2005 - DRAFT                               1
BPL Report                                                                                    NARUC


                                                                                                          Formatted   ...
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Throughout its discussions, the Task Force benefited from the active participation and insights of
                                                                                                          Formatted   ...
staff from the Federal Energy Regulatory Commission (FERC), ably represented by David
Tobenkin, and the Federal Communications Commission (FCC), through Rodger Woock. At the                   Formatted   ...
NARUC Summer Committee meetings on July 23, 2004, The Task Force Chair, the Hon. Laura                    Formatted   ...
Chappelle, moderated a BPL panel discussion at the NARUC Summer Committee meetings on July                Formatted   ...
23, 2004 with participation by the Hon. Nora Mead Brownell of the FERC and the Hon. Kathleen Q.
                                                                                                          Formatted   ...
Abernathy of the FCC.
                                                                                                          Formatted   ...
NARUC’s Charles D. Gray, Executive Director,; James Bradford Ramsay, General Counsel,; and                Formatted   ...
Brian Adkins, Legislative Director for– Telecommunications, all, provided valuable contributions.         Formatted   ...
The Task Force wishes to thank the FERC, the FCC, and NARUC for the contributions of their                Formatted   ...
respective representatives. lending providing assistance through the valuable contributions of key
                                                                                                          Formatted   ...
personnel and to acknowledge those contributions. Staff participants from a number of state State
commissions, especially Don Jones (Texas), Steve Wilt (Oklahoma), Illona Jeffcoat-Sacco (North            Formatted   ...
Dakota), and Jeffrey Pillon (Michigan), and Kenneth Roth Kenneth Roth (Michigan) also made                Formatted   ...
provided substantial inputimportant substantial inputcontributions. . Additional technical review and     Formatted   ...
editing of the report was provided by Dr. Janice Beecher, Director of the Institute of Public Utilities   Formatted   ...
at Michigan State University. The Task Force could not have had such a busy, busyproductive, and
                                                                                                          Formatted   ...
insightful year, had were it not been for the hard work and valuable contributionsinsights of from all
these individuals as well as the efforts of many that we were unable to separately list here.so many      Formatted   ...
people.                                                                                                   Formatted   ...
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II. OVERVIEW                                                                                              Formatted   ...
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January 2005 - DRAFT                              2
BPL Report                                                                                         NARUC



II.

OVERVIEW


The year 2004 was an important year for BPL, . As many now know, BPL refers to the technology
used to deliver high-speed data to end users over the existing electric power networks and lines. and
network to the end user. On the one hand, BPL is a communications technology that allowsenables
electric customers to obtain broadband service and, with it, access to the seemingly virtually limitless      Formatted: Font: 11 pt, Highlight
content of the Internet. In rural areas, BPL could provide much needed desired access to broadband            Formatted: Font: 11 pt
service, either as an initial sole service or a competitive optionne, in an otherwise expensive-to-serve      Formatted: Font: 11 pt, Highlight
markets. In more densely populated markets that already have broadband options via digital
                                                                                                              Formatted: Font: 11 pt
subscriber line (DSL) or cable-modem, BPL could provide that sometime eillusive sometimes
illusive rare “third pipepipemile” or “third wire” facilities-based option needed to, thus stimulating        Formatted: Font: 11 pt, Highlight
facilitatingenablingfacilitate vigorous real competition.                                                     Formatted: Font: 11 pt
                                                                                                              Formatted: Font: 11 pt, Highlight
Equally as important are, however, is the potential “smart grid” capabilities of BPL. As discussed in
                                                                                                              Formatted: Font: 11 pt
Part III of this report, concerning dealing with security, BPL mightay allowenable electric utilities to
significantlyvastly improve their ability to monitor and control their lines and facilities. The
integration of BPL technology with electrical operations means that the utility may be position a
utilityed to achieve more network automationed usages of its network. While operational
enhancements have always been of interest to the electric industry’s engineers and managers, the
August 14, 2003 Northeast power blackout and its aftermath broadened interest in the preventative
measures that might be achievable though BPL.the importance of such benefits, including the use of            Formatted: Font: 11 pt, Highlight
preventative measures became especially evident to a far wider public after the “blackout” ofthe
August 14, 2003 Northeast power blackout and its ramifications broadened the interest in the                  Formatted: Font: 11 pt
potential benefits of preventive measures that might be achieved through BPL. .                               Formatted: Font: 11 pt, Highlight
                                                                                                              Formatted: Font: 11 pt
In the wake of the blackout, and the inceptionnstigation of severala number of BPL pilot programs,
                                                                                                              Formatted: Font: 11 pt, Highlight
thee nascent technology Due to a few emerging BPL pilots, and certainly understanding the
ramifications of the blackout, BPL became has been was the subject of numerous articles in trade              Formatted: Font: 11 pt
journals, industry white papers, and federal policy initiatives.policy-related activitiesactions at the       Formatted: Font: 11 pt, Highlight
federal level. This uptick in interest emerged just as theThe nation seemed to be learning the status         Formatted: Font: 11 pt
and potential of BPL about the time that theIncreasing amounts of information emerged just as the
                                                                                                              Formatted: Font: 11 pt, Highlight
Task Force began investigating the technology.the process of informing itself.
                                                                                                              Formatted: Font: 11 pt

Later, BPL saw expanded attention onoOn ’s newfound prominence received a further boost on                    Formatted: Font: 11 pt, Highlight
October 14, 2004, when the FCC and the FERC joined to focus national attention on BPL. The FCC                Formatted: Font: 11 pt
voted to approveset BPL standards relating to the issue of radio frequency interference to reduce             Formatted: Font: 11 pt, Highlight
concerns that ,     and thus providinged a measure of assurance that interferencethose
                                                                                                              Formatted: Font: 11 pt
problemsconcerns would not significantly impede BPL’s development.2
                                                                                                              Formatted: Font: 11 pt

The same day, the FERC and FCC chairmen of the FCC and the FERC issued an unprecedented                       Formatted: Font: 11 pt
joint statement that in support of BPL deployment.

2
        Carrier Current Systems, including Broadband over Power Line Systems, ET Docket No. 03-104;           Formatted: Left, Right: -0.05", Border: Top:
Amendment of Part 15 regarding new requirements and measurement guidelines for Access Broadband over          (Single solid line, Gray-50%, 0.25 pt Line
Power Line Systems, ET Docket No. 04-37, noticed at 70 Fed. Reg. 1360. The FCC issued the text of the rules   width), Tab stops: 6.25", Right + Not at 6"
on October 28, 2004.                                                                                          Formatted: Font: 10 pt


January 2005 - DRAFT                                 3
BPL Report                                                                                      NARUC




The joint FCC/FERC statement expresseexpressings both agencies’ commitcommits their respective
agencies toment to embrace fostering foster policies tohat will encourage the rapid deployment of          Formatted: Font: 11 pt, Highlight
BPL’s deployment. According to Chairmen Powell and Wood, whatever the underlying technology,               Formatted: Font: 11 pt
The statement noted that broadband is essential to the national well-being. They agreed that,
regardless of the technology or mode used to provide it, suggesting . It suggested that “ . . .
[p]olicy-makers at all levels should coordinate their efforts to promote a minimally intrusive policy
framework for such technologies.” The statement identifiesd BPL as onean emerging technology
that could increase competitive broadband choices. It acknowledgesd that BPL may also improve
electric utilities’ communications and control capabilities and thereby enhance their reliability and
efficiency. The joint statement concludes with the following areas of agreement:

        Utilities shouldare being urged “to pursue new . . .and developing technologies,                  Formatted: Justified
         such as BPL, that will foster greater customer options in broadband, provide
         more efficient management of the power supply system, and ensure increased
         operational reliability.”
        Utilities should “appropriately allocate revenues and costs related to new
         technologies, such as Access BPL, between regulated and unregulated
         functions.”
        The Ddevelopment of new competitive broadband technologies shouldis toshould                      Formatted: Font: 11 pt, Highlight
         be encouraged.                                                                                    Formatted: Font: 11 pt
        The FCC and the FERC should “monitor experience with Access BPL to ensure
         that existing regulations do not stifle [its] development.”

To surmount its own learning curve,In its information-gathering phase, Over the last year, tthe the        Formatted: Font: 11 pt, Highlight
Task Force has heldconducted numerous phone conferences with technology and industry experts, as           Formatted: Justified
well as and representatives of BPL broadband providers, electric utilities, and trade associations.
                                                                                                           Formatted: Font: 11 pt
On October 24, 2004, the Task Force was convened called together for a day-long session in
Arlington, Virginia, for the opportunity to where the Task Force interacted with several leading
commentators on BPL-related developments. Several members of the Task Force also benefited
from a One A highlight of the Task Force’s undertakings was a A highlight of the workshop was
hands-on demonstration of BPL home applications provided by Current Communications Group,
LLC (Current) at a residence it maintains for that purpose in Potomac, Maryland.3 Appendix A               Formatted: Default Paragraph Font
provides a summary of the Task Force’s Arlington meeting and numerous teleconference calls.                Formatted: Font: 11 pt

Suffice it to say, theOver the course of its undertakings,During these meetings and calls, the Task        Formatted: Font: 11 pt, Highlight
Force heard from many diverse sectors of the BPL community, such as enthusiast trade groups (the           Formatted: Font: 11 pt
United PowerLine Council,, the Power Line Communications Association), individual BPL
providers (Current Communications Group, LLC,; Amperion, Inc.), investor-owned electric
companies (Consumers Energy Company, Cinergy Corp), a municipal utility (the City of Manassas,
Virginia), a rural electric cooperative (Central Virginia Electric Cooperative), industry trade groups
(National Energy Marketers Association, Edison Electric Institute), a cable company (Cox
Communications, Inc.), and a number of prpreeminent consultants and industry observers.4 The               Formatted: Font: 11 pt
Task Force also heard some cautionary advice input regarding radio frequency interference, most

3
         Appendix A provides a summary of the Task Force’s Arlington meeting and numerous teleconference   Formatted: Left, Right: -0.05", Border: Top:
calls.                                                                                                     (Single solid line, Gray-50%, 0.25 pt Line
4
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calls.                                                                                                     Formatted: Font: 10 pt


January 2005 - DRAFT                                4
BPL Report                                                                                   NARUC



notably from the American Radio Relay League (ARRL). Although of general interest, Although
this issue was necessary to learn and understand from a full picture standpotheint, the Ta Task Force
deferred to the thought it best to defer this issue to the FCC on this issue, due to a pending
rulemaking by the commission, the fact that it had pending a rulemaking docket during most of
2004, which resulted in the promulgation of final rules in October 2004.5                                Formatted: Font: 11 pt
                                                                                                         Formatted: Font: 11 pt
Early in its effortson, the Task Force saw the need to group this information intoexamine BPL issues
within three broad areas: Technology, Security, and Regulatory. The Task Force divided itself into
three working subgroups to concentrate on these major areas of interest as follows:

        Technology:       (Commissioner Bode and Commissioner Parsley)
        Security:         (Commissioner Chappelle and Commissioner Hughes)
        Regulatory:       (Commissioner Clark and Commissioner Dunleavy)

        As a foundation for While the Task Force’s examination of security and regulatory issues,       Formatted: Right: 0", No bullets or
                                                                                                         numbering, Tab stops: Not at 5.5"
the member s spent considerable time learning about and discussing thee fascinating technology and
different modes for deploymentical aspects of BPL., Site visits and related demonstrations and           Formatted: Font: 11 pt
discussions provide policy makers an invaluable backdrop on the possibilities and potential issues
raised by this synergistic technology. The Task Force strongly encourages commissioners and other
                                                                                                         Formatted: Font: 11 pt, Highlight
policy makers to view BPL pilots where available. we know, as Commissioners well-recognize that
, that this is not our area of expertise. However, t! The demonstrations and discussions and hands-      Formatted: Font: 11 pt
on observations enabled us to obtain a fuller appreciation for this synergistic technology and the       Formatted: Font: 11 pt, Highlight
Task Force . We strongly encourages commissioners to view BPL pilots where available.                    Formatted: Font: 11 pt
                                                                                                         Formatted: Justified
                                                                                                         Formatted: Justified, Indent: First line: 0",
                                                                                                         Right: -0.05", Tab stops: 6.2", Left + 6.25",
                                                                                                     T   Left
he investigation of security related issuesportion area of our review was perhaps the mostparticularly   Formatted: Right: -0.05", Tab stops: 6.2",
timely and interesting. As discussed in more detail below, BPL raises many intriguing possibilities      Left + 6.25", Left + Not at 5.5"
From from both a homeland security standpoint, as well as the many “smart grid” optionsportunities       Formatted: Font: 11 pt, Highlight
it providesfor electric utilities, .
                                                                                                         Formatted: Font: 11 pt

there is much to this new technology to appreciate in the application of BPL technology..                Formatted: Justified
                                                                                                         Formatted: Justified, Right: -0.05", Tab stops:
                                                                                                          6.2", Left + 6.25", Left
Finally, Ffrom a regulatory standpoint, BPL deployment will eventually require resolution of several
issues common to network industries. we suggest like to say that BPL deployment may encounter            Formatted: Font: 11 pt, Highlight
some “old fashioned” regulatory issues, some of which have the potential to will have a tendency to      Formatted: Font: 11 pt
bump into, and perhaps impede , BPL’s growth. Issues such as Ppole attachments, open access, cost        Formatted: Font: 11 pt, Highlight
allocation, affiliate transactions, and rights-of-way and other issues will require resolution. How
                                                                                                         Formatted: Font: 11 pt
these issues are resolved will impact how may alter affect the development of BPL is ultimately
provided. Since BPL is an integrated component of the electric distribution network, we the Task         Formatted: Font: 11 pt, Highlight

Force believes that it will be primarily up to the iindividual sSstates to tailor the appropriate        Formatted: Font: 11 pt
regulatory roadmaps and responses.                                                                       Formatted: Font: 11 pt, Highlight
                                                                                                         Formatted: Font: 11 pt
                                                                                                         Formatted: Font: 11 pt
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5
        See supra note 21. A more detailed discussion appears in Part III of this paper.                 Formatted: Font: 10 pt


January 2005 - DRAFT                                  5
BPL Report                                                                                    NARUC



TheOur belief is that,Members of the Task Force’s examination to date suggests BPL potentially
offers multifaceted benefits ranging from enhancing the security and reliability of electric service to
enhancingbelieve that once t competition in the broadband space. he Task Force members agree
generally with the FERC/FCC Joint statement that the development of new competitive broadband
technologies should be encouraged and that a.y have had an opportunity to learn more about this           Formatted: Font: 11 pt
promising technology, state public utility regulators NARUC as a whand NARUC ole, and states              Formatted: Font: 11 pt, Highlight
individually, will look for ways to advance this technology andto obtain the multifaceted benefits        Formatted: Font: 11 pt
that it promises to offer in terms of extending broadband to the underserved and facilitating
                                                                                                          Formatted: Font: 11 pt, Highlight
competition, as well as for , both for extending broadband competitively or to the underserved, and
for enhancing the security and reliability of electric service. It is our the sincere hope of the Task    Formatted: Font: 11 pt
Force that regulation will not prove to be an obstacle. Indeed fact, we arethe Task Force is
Aconfident that a minimally intrusive approach to resolution of the issues surrounding BPL service
is possible. The long term r, esolution of the various outstanding issues should not effectively favor
any technology over another. Aside from its potential smart grid applications, iIf BPL can play a
role in expanding efficient broadband access, the public interest will be served.
 as long as the regulatory framework does not effectively favor any broadband technology over             Formatted: Font: 11 pt, Highlight
others. . If BPL can play a role in expanding efficient broadband access, flourish, the public interest   Formatted: Font: 11 pt
will be the winnerserved.                                                                                 Formatted: Font: 11 pt, Highlight
                                                                                                          Formatted: Font: 11 pt
                                                                                                          Formatted: Font: 11 pt, Highlight
                                                                                                          Formatted: Font: 11 pt
                                                                                                          Formatted: Font: 11 pt, Highlight
                                                                                                          Formatted: Font: 11 pt
                                                                                                          Formatted: Font: 11 pt, Highlight
                                                                                                          Formatted: Font: 11 pt




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January 2005 - DRAFT                              6
BPL Report                 NARUC




III. TECHNOLOGY                    Formatted: Font: 15 pt

                                   Formatted: Font: 11 pt
                                   Formatted: Left




                                   Formatted: Left, Right: -0.05", Border: Top:
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January 2005 - DRAFT   7
BPL Report                                                                                      NARUC



III.

TECHNOLOGY


Currently, broadband Internet access is currently commonly offered to residential and small-business        Formatted: Justified
customers through xDSL, cable-modem, wireless, optical fiber, and satellite technologies.
Broadband over Power Lines, or BPL, is yet another mode of broadband d communications access.
Current BPL, although its deployment remainsat the time of this writing report is largely confined to
in the developmental stage in most locales where it is available.

How BPL Works

BPL, also known as power- line communication, utilizes electric power distribution wires for the            Formatted: Justified
high-speed transmission of data by transmitting high-frequency data signals through the same power
distribution network used for carrying electric power to household users. In a common form of BPL,
the broadband connection is provided over the electrical wires that enter a house; , and a customer
can obtain Internet access by plugging a BPL modem into any residential electric outlet served by
the BPL system. In another form of BPL, Internet access is provided using a wireless device (such
as a WiFi access point) connected to a BPL distribution system outside of the home that , which
communicates with the customer’s computer or other equipment inside the home.

The low-power, unlicensed equipment that is being employed in modern BPL systems couples radio
frequency signals onto the existing electric power distribution lines for distribution throughout a
neighborhood. A BPL system requires a means of getting the data signal from an Iinternet service
provider (ISP) to a location where the broadband signal is injected into a power line. The data signal
can be provided to the injection point over conventional copper, fiber, or wireless facilities. The
principalle benefits of BPL are that no new wires need to be installed in order to distribute the
broadband connection to each house in a neighborhood, and BPL can be accessed anywhere in each
house without additional inside wiring.

It is important to note that BPL technology, in its current form, is not suitable for carrying              Formatted: Font: 11 pt, Italic
broadband signals over long distances. The broadband communication channel must be brought                  Formatted: Font: 11 pt
into a neighborhood by other means, and then BPL can be used as the distribution mechanism to
reach individual homes or businesses.

Strategic Strategic aAdvantages attributed to BPL include relatively easy installation, low cost of         Formatted: Font: 11 pt, Highlight
market entry, and quick deployment.          BPL allows power lines to carry signals for moderate           Formatted: Font: 11 pt
distances without requiring regeneration, , requires no changes to be made in business or household         Formatted: Font: 11 pt, Highlight
wiring for broadband access, provides broadband access from every electric outlet in every room,
                                                                                                            Formatted: Font: 11 pt
poses a relatively low entrymarket-entry barrier for electricelectric utilities wanting wishing tto offer
broadband service, and utilizes a pre-existing infrastructure—the , the electric power grid.                Formatted: Font: 11 pt, Highlight
                                                                                                            Formatted: Font: 11 pt
BPL equipment manufacturers and service providers anticipate a wide range of applications that may          Formatted: Font: 11 pt, Highlight
be offered to their subscribers. High quality, multi-channel video, audio, voice- over-i Internet
                                                                                                            Formatted: Font: 11 pt
pProtocol (VoIP), and on-line gaming applications are expected to rapidly increase the demand for
additional bandwidth. To support the typical subscriber at 1 megabit per second (Mbps), BPL                 Formatted: Left, Right: -0.05", Border: Top:
                                                                                                            (Single solid line, Gray-50%, 0.25 pt Line
systems are expected in the near future to operate at speeds of 100 Mbps or more on the medium              width), Tab stops: 6.25", Right + Not at 6"
voltage (MV) power lines. in the near future. Most of the presentations made to the Task Force
                                                                                                            Formatted: Font: 10 pt


January 2005 - DRAFT                               8
BPL Report                                                                                    NARUC



indicateagree confimred that the BPL industry is already gearing itself up for growth. The level of
activity and interest, as evidenced by NARUC’s state sState-by-state survey results (attached as          Formatted: Font: 11 pt
Appendix B), is clearly on the rise.also suggests that rapid growth is possible.

In addition to providing broadband connectivity to customers in an electric- service area, BPL
systems may be used by electric utilities to manage their electric power networks more efficiently.
Possible electric utility uses for BPL include automatic meter reading, voltage control, supervisory
control and data acquisition (SCADA), equipment monitoring, energy management, remote connect
and disconnect, power outage notification, and the ability to collect detailed power usage information
(such as time-of-day power demand).

BPL is a “carrier-current” system that operates in the United States on an unlicensed basis under         Formatted: Font: 11 pt, Italic
Part 15 of the FCC’s rules, 47 C.F.R. §pt. 15.1 et seq. (2004), which allows certain low-power            Formatted: Font: 11 pt
unlicensed equipment to operate on a non-interference basis. Carrier-current is a term used to            Formatted: Font: 11 pt, Italic
describe systems that intentionally conduct signals over electrical wiring or power lines. Prior
                                                                                                          Formatted: Font: 11 pt
carrier-current systems have been used for many years to conduct low-speed data over power lines.
Because of the inherent impedance and attenuation variations of power lines, as well as and noise         Formatted: Font: 11 pt, Italic
from devices such as dimmer switches, motorized electrical appliances, and computers switching on         Formatted: Font: 11 pt
and off, and other devices, reliable high-speed communication over power lines has been difficult to      Formatted: Font: 11 pt, Italic
achieve. However, the recent availability of faster digital processing technologies and the
                                                                                                          Formatted: Font: 11 pt
development of sophisticated modulation schemes have produced new designs that can overcome
                                                                                                          Formatted: Font: 11 pt, Italic
these technical obstacles. These new designs have led to the development of new BPL systems that
use spread- spectrum or multiple- carrier techniques and that incorporate adaptive algorithms to          Formatted: Font: 11 pt
overcome the problems associated with noise in the power lines.                                           Formatted: Font: 11 pt, Italic
                                                                                                          Formatted: Font: 11 pt
In this report we are primarily discussingThis report considers primarily This report considers
                                                                                                          Formatted: Font: 11 pt, Italic
primarily what the FCC refers to as “Access BPL.,” In Access BPL,wherein electric power lines are
                                                                                                          Formatted: Font: 11 pt
used to provide Internet connectivity into a home from an outside source. Access BPL employs
outdoor devices that inject data signals into the medium- and low-voltage power distribution network      Formatted: Font: 11 pt, Highlight
to provide Internet access to a neighborhood. Since BPL signals cannot usually pass through an            Formatted: Font: 11 pt
electric distribution transformer, additional equipment is usually is required to bypass allow the data   Formatted: Font: 11 pt, Highlight
signal to bypassaround distribution transformers, or to regenerate the data, in order to get the data
                                                                                                          Formatted: Font: 11 pt
signal into customers’ homes.

In contrast to Access BPL, so-called “in-house BPL” utilizes indoor adapters to transmit data signals
over existing interior electric wires within a home, and to connect the data signals to various
appliances. In-house BPL systems use the electrical outlets available within a building to transfer
information between computers and other home electronic devices and appliances, eliminating the
need to install additional wires among devices. install new wires among between devices.                  Formatted: Font: 11 pt
                                                                                                          Formatted: Font: 11 pt, Highlight
                                                                                                          Formatted: Font: 11 pt




                                                                                                          Formatted: Left, Right: -0.05", Border: Top:
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January 2005 - DRAFT                              9
BPL Report                                                                                   NARUC



                                                                                                         Formatted: Font: 11 pt




                            Exhibit 1. Plug-in Ethernet BPL Modem6                                       Formatted: Font: 11 pt
                                                                                                         Formatted: Heading 7
                                                                                                         Formatted: Font: 11 pt

 In a typical Access BPL system, the equipment required to provide service includes (1) injectors, (2)   Formatted: Justified
repeaters, and (3) extractors. BPL injectors are connected to the Internet via conventional
technologies (e.g., fiber, copper, or wireless) and couple the broadband signal to the medium voltage
(MV, or (1,000-40,000 volts) power lines bringing power from an electrical substation to a
residential neighborhood. MV power lines may be located overhead on utility poles or underground
in buried conduit.; , and BPL systems can be employed in either case. BPL systems are not
presently deployed on high-voltage electric transmission lines.

The BPL signals are conditioned and conveyed between the MV power distribution lines and the
households within the service area by “extractors,” that which move the broadband data in both
directions. An extractor is typically is located at each low voltage (LV) distribution transformer
providing power to a group of homes. Some extractors boost BPL signal strength sufficiently to
allow transmission through the LV transformer; , and others relay the BPL signal around the              Formatted: Font: (Default) Times New Roman
                                                                                                         Formatted: Left, Right: -0.05", Border: Top:
                                                                                                         (Single solid line, Gray-50%, 0.25 pt Line
6
        Current Communications website at: http://www.current.net/LearnMore/HowItWorks/. Used with       width), Tab stops: 6.25", Right + Not at 6"
permission.                                                                                              Formatted: Font: 10 pt


January 2005 - DRAFT                             10
BPL Report                                                                                          NARUC



transformer via couplers on the adjoining MV and LV power lines. Other kinds of extractors
interface with non-BPL broadband devices (e.g., Wi-Fi transceivers) that extend the BPL network to
the customers’ premises.

A typical BPL signal will only propagate down along a power line for 1,000 to 3,000 feet before it
becomes too weak or distorted to be useful. To span longer distances between injectors and
extractors, repeaters may can be usedemployed to , which regenerate and amplify the signal and
achieved to provide the required strength and fidelity. It should be noted that some BPL providers
choose not to employ repeaters, as they decrease overall available bandwidth, require the use of
additional frequency spectrum, and introduce some latency (delay) in the data signal.as they decrease       Formatted: Font: 11 pt, Highlight
overall available bandwidth, and require the use of additional frequency spectrum,, and they
introduce some latency (delay) in the data signal.                                                          Formatted: Font: 11 pt
                                                                                                            Comment [jab2]: Check for accuracy
The following figure illustrates a basic BPL system, which can be deployed in cell-like fashion over
a large area served by existing MV power lines by installing multiple injectors, repeaters, and             Formatted: Font: 11 pt
extractors.                                                                                                 Formatted: Font: 11 pt
                                                                                                            Formatted: Font: 11 pt
                                              Access
                                               BPL                                                          Formatted: Font: 11 pt
                                                                                                            Formatted: Font: 11 pt



                                    Medium Voltage
                                     Power Lines
                       BPL
                     Injector



                                     BPL
                                   Repeater

                                                                     Distribution
                   Fiber / T1                            BPL         Transformer
                                                       Extractor



                                                                   Low Voltage
               Internet


                                                                                     Subscriber’s
                                                                                    In-House BPL
                                                                                     Modem + PC             Formatted: Font: 11 pt


                                   Exhibit 2. Basic BPL System7                                             Formatted: Font: 11 pt
                                                                                                            Formatted: Font: 11 pt

                                                                                                            Formatted: Font: 11 pt




                                                                                                            Formatted: Left, Right: -0.05", Border: Top:
7
       “Potential Interference from Broadband Over Power Line Systems to Federal Government                 (Single solid line, Gray-50%, 0.25 pt Line
Radiocommunications at 1.7 – 80 MHz, Phase 1 Study,” NTIA Report 04-413, April 2004Ssource ????, at p.      width), Tab stops: 6.25", Right + Not at 6"
2-2.                                                                                                        Formatted: Font: 10 pt


January 2005 - DRAFT                                   11
BPL Report                                                                                    NARUC



Network Architecture                                                                                     Formatted: Font: 11 pt, Bold, Underline
                                                                                                         Formatted: Font: 11 pt
There are aA number of different network architectures are used by BPL providers. In a report
                                                                                                         Formatted: Justified
issued to address radio interference, the National Telecommunications and Information
Administration (NTIA)8 identified three principal network architectures used by BPL equipment            Formatted: Font: 11 pt
vendors, as. These three architectures are described below here..:                                       Formatted: Font: 11 pt

One system uses Orthogonal Frequency Division Multiplexing (OFDM) to distribute the BPL signal
over a wide bandwidth using many narrow-band sub-carriers. At the BPL injector, data from the
Internet backbone is converted into the OFDM signal format and is then coupled onto one phase of
the MV power line. An injector also converts BPL signals in the other direction from the MV power
lines to the format used at the Internet backbone connection. The two-way data flow is transferred to
and from the LV lines, each feeding a cluster of homes, using BPL extractors to bypass the LV
distribution transformers. The extractor routes data and converts between access and in-house BPL
signal formats.

The subscribers access this BPL signal using standard in-house BPL devices.

To span long distances between a BPL injector and the extractors it serves, repeaters may be
employed. Current Technologies (a Current Communications Group affiliate) employs this type of
system architecture.

In this arrangementembodimentarrangement, the injector and extractors share a common frequency           Formatted: Font: 11 pt, Highlight
band (F1) on the MV power lines, different than the frequency band (F2) used on the LV lines by the      Formatted: Font: 11 pt
subscriber’s in-house BPL devices. In order to minimize contention for the broadbandthe
broadband channel, Carrier Sense Multiple Access (CSMA) is used with Collision Avoidance (CA)
extensions.    This type of system is designed to accept some amount of co-channel interference
between quasi-independent BPL cells without the use of isolation filters on the power lines, as all
devices on the MV lines operate over the same frequency band. This embodiment couples BPL
signals are coupled into one phase line. The BPL signal may be sufficiently tolerant of co-channel
BPL interference to enable implementation of two or three of these independent systems
independently on adjacent MV power lines.                                                                Comment [jab3]: Check


A second BPL network architecture also uses OFDM as its modulation scheme, but differs from the          Formatted: Font: 11 pt
first system in the way it delivers the BPL signal to the subscribers’ homes. Instead of using a         Formatted: Font: 11 pt
device that connects to the LV power lines, thise second architecture extracts the BPL signal from
the MV power line and converts it into an IEEE 802.11b WiFi signal for a wireless interface to
subscribers’ WiFi enabled appliances as well as to local portable computers having WiFi adapters.
Technologies other than WiFi may also be used to interface to subscribers’ devices with the BPL
networnetwork. The distinguishing feature in this case is k, the important point being that BPL is not   Formatted: Font: 11 pt, Highlight
used on LV power lines in the second embodiment. This wireless architecture that bypasses the            Comment [jab4]: Check
house LV wiring is used by Amperion, Inc. An example of Amperion’s equipment is shown below.
                                                                                                         Formatted: Font: 11 pt
                                                                                                         Formatted: Font: 11 pt

                                                                                                         Formatted: Font: Italic
                                                                                                         Formatted: Left, Right: -0.05", Border: Top:
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8
       Id.“Potential Interference from Broadband Over Power Line (BPL) Systems to Federal Government     width), Tab stops: 6.25", Right + Not at 6"
Radiocommunications at 1.7 – 80 MHz, Phase 1 Study,” NTIA Report 04-413, April 2004.                     Formatted: Font: 10 pt


January 2005 - DRAFT                              12
BPL Report                  NARUC




                                    Formatted: Font: 11 pt




                                    Formatted: Font: 11 pt
Exhibit 3.                          Formatted: Font: 11 pt, Bold




                                    Formatted: Left, Right: -0.05", Border: Top:
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                                    width), Tab stops: 6.25", Right + Not at 6"
                                    Formatted: Font: 10 pt
                                    Formatted: Font: 10 pt


January 2005 - DRAFT   13
BPL Report                                                                                   NARUC




                Amperion Power Line Coupler and Weatherproof Enclosure9                                 Formatted: Font: 11 pt



This second architecture uses different radio frequency bands to separate upstream (from the user)      Formatted: Justified
and downstream (to the user) BPL signals, and to minimize co-channel interference with other
nearby Access BPL devices. To span long distances between a BPL injector and the extractors it
serves, repeaters may be employed. Like the injectors, the BPL repeaters transmit and receive on
different frequencies, and they use different frequencies from those used by the injector and other
nearby repeaters. In this embodiment,A a repeater may also provide the capabilities of an extractor
when outfitted with a WiFi transceiver. Like the first architectureembodiment described above, this
architecture approach couples BPL signals onto one phase of the MV power line.

Finally, a third type of BPL network architecture uses Direct Sequence Spread Spectrum technology
to transmit the BPL data over the MV power lines. All users within a BPL cell share a common
frequency band. In order to minimize contention for the channel, CSMA technology is used. Like
the first embodiment described aboveAs in the first architecture described, , this type of system is
designed to accept some amount of co-channel interference between cells, as all devices operate over
the same frequency band. At one deployment site using this third type of architecture, the BPL
service provider independently implements two channels on the same run of three- phase power
lines.

Each cell in this third embodiment includes a concentrator (injector) that provides an interface to a
T1 or fiber link to the Internet backbone, a number of repeaters (extractors) to make up for signal
losses in the electric power line and through the distribution transformers feeding clusters of
dwellings, and customer premises BPL equipment, which is used to bridge between the user’s
computer or other appliance and the electrical wiring carrying the BPL signal. Adjacent cells           Formatted: Highlight
typically overlap, and the customers’ BPL terminals and repeaters are able to communicate with the      Formatted: Left, Right: -0.05", Border: Top:
                                                                                                        (Single solid line, Gray-50%, 0.25 pt Line
                                                                                                        width), Tab stops: 6.25", Right + Not at 6"
9
    Ssource     Amperion website, at www.amperion.com/products.asp. Used with permission.               Formatted: Font: 10 pt


January 2005 - DRAFT                             14
BPL Report                                                                                   NARUC



concentrator that affords the best communication path at any time. An injector in this type of system
couples the BPL signal onto the power line using a pair of couplers, one on one of the phase lines
and the other on the neutral line. This architecture has been is employed by Main.net.                  Formatted: Font: 11 pt


Another experimental BPL architecturetechnology utilizes the 2.4 gigahertz (GHz) and 5.8 GHz
unlicensed bands. An implementation using multiple IEEE 802.11b/g Wi-Fi chips sets has been used
to demonstrate the concept of carrying data over MV power lines at rates exceeding 200 Mbps.
However, no party filed comments in the FCC’s BPL proceeding contending that this technology and
these associated frequencies should be considered in the Part 15 BPL proceedings.

Radio Interference

In accordance with Part 15 of FCC regulations, 47 C.F.R. pt. 15, BPL must operate on a non-
interference basis relative to licensed services. It must accept interference from licensed
servicesthem and not cause harmful interference to them. Examples of licensed services below 30         Formatted: Font: 11 pt
megahertz (MHz) are AM broadcasters, amateur radio operations, aeronautical services, maritime          Formatted: Font: 11 pt
operations, and land mobile services. Users of this spectrum also include, for example, public safety
and federal government agencies.

Most Access BPL systems today operate on frequencies up to 80 MHz with very low power signals
spread over a broad range of frequencies. BPL must comply with federal radiated emission limits for
CCS (below 30 MHz) and Class A/B digital devices (above 30 MHz).

One of the main issues that need to be addressedrequiring attention in connection with BPL
deployment is actual and potential radio interference. BPL systems use frequencies that radiate into
the air from the open wire power conductors, causing possible interference to licensed services,
including emergency services and amateur radio operators. Unlike other broadband conductors,
open-air power lines are excellent radiators of the frequencies used in BPL systems, so they behave
as transmitting (and receiving) antennas. This issue has not arisen in connection with other
broadband distribution technologies because copper twisted-pair wiring (used for xDSL), coaxial
cable, and fiber are all effectively non-radiating mediums.

The radio frequencies used in BPL systems generally lie in a the “high- frequency” range, between 1     Formatted: Font: 11 pt
and 80 MHz. This part of the radio spectrum has unique properties that do not occur at other
frequencies. Of particular importance is the fact that radio waves at these frequencies can “bounce”
off the ionosphere to travel very long distances. Certain frequency bands in the high-frequency
range are used by amateur radio operators to communicate around the world using very low
transmitted power levels. Harmful interference can occur if a BPL system operates in the vicinity of
a licensed operator using the same frequency. system is operatesd in the vicinity of a licensed radio   Formatted: Font: 11 pt, Highlight
station using the same on a frequency used by the radio station. However, BPL providers addressing      Comment [jab5]: Check
interference issues claim that the technology now exists to “notch-out” (refrain from using)
frequency bands that are used by proximate amateur radio operators. They also suggest that , and        Formatted: Font: 11 pt
improved modulation schemes may help address issues regarding signal-to-noise ratio at very low         Formatted: Font: 11 pt
power levels required to avoid interference. Data- encoding methods may be employed to prevent
electronic eavesdropping, in order to provide confidential and secure communications using a BPL
system. However,
                                                                                                        Formatted: Left, Right: -0.05", Border: Top:
                                                                                                        (Single solid line, Gray-50%, 0.25 pt Line
The potential for BPL to interfere with existing uses of the radio spectrum has raised concerns about   width), Tab stops: 6.25", Right + Not at 6"
radio interference among stakeholderes. g Groups that have an interest in maintaining authorized
                                                                                                        Formatted: Font: 10 pt


January 2005 - DRAFT                             15
BPL Report                                                                                    NARUC



uses of the radio airwaves (such as, e.g., ham and shortwave radio operators and, emergency
governmental frequency users) , have been adamant in arguing thattheir argument tthat BPL
causesdoes in fact cause radio interference and will create widespread problems if it is widely
deployed. if it gains consumer acceptanceits use is widely adopted. Some radio amateurs and               Comment [jab6]: Slightly different meaning
broadcasters contend that, in addition to causing interference near the power lines on the particular     Formatted: Font: 11 pt, Highlight
frequencies used, BPL will be a ubiquitous polluter of the radio spectrum, causing a substantial rise
                                                                                                          Formatted: Font: 11 pt
in background radio-frequency noise levels—something , causing something akin to “radio smog.”
                                                                                                          Formatted: Font: 11 pt
The ARRL has demonstrated both the interference effects of BPL on amateur radio communications
, and also demonstrated the strong interference from very low-power high-frequency transmitters           Formatted: Font: 11 pt
into a BPL network, using BPL test sites operating running in the United States. These concerns           Formatted: Font: 11 pt
merit consideration, if only because much much of the emergency response systems in place today
depend upon these userelies in part on these s of radio frequencies.

AdditionallRy, radio broadcasters have also expressed concern about the potential of BPL to prevent
their signals from reaching listeners. The Research and Development branch of the British
Broadcasting Corporation (BBC) has released a report on a brief BPL trial in Scotland. . The two
competing BPL systems in operation in the town of Crieff both interfered with high frequency
broadcast reception. Tests were conducted at four locations. At the first location, a residence,
interference from a Main.net modem was audible even on very strong broadcast signals. Reception
was also significantly impaired at a neighbor’s house, as well as at various locations in the street
between the residence and the substation serving it. This was despite the fact that the main electrical
distribution cable was underground.

BPL technology already has been deployed in some European countries, and amateurs there have
complained about interference. Japan—responding in part to concerns expressed by its amateur
radio community—decided last year not to adopt the technology because of its interference potential.

In the United States, the FCC has been the primary forum for for achieving a resolutionresolving of       Formatted: Font: 11 pt
radio interference claims. Throughout most of 2004, the FCC conducted a rulemaking proceeding to
consider BPL-specific changes to its Part 15 rules that govern radio frequency interference. 10           Formatted: Font: 11 pt
Instrumental to the FCC’s deliberations was the exhaustive Phase 1 study on radio interference            Formatted: Font: 11 pt
conducted by the NTIA, which resulted in an April 2004 report , with recommendations, issued in
April 2004.11                                                                                             Formatted: Font: 11 pt
                                                                                                          Formatted: Font: 11 pt
As referenced earlier, tThe FCC concluded its Part 15 rulemaking in October 2004 and made several
s. Among the significant changes in its rules applicable to BPL. For example, the FCC rules: are the
following:

        Clarifyies that the existing Part 15 radio frequency emissions standards will apply to           Formatted: Justified, Right: 0.45"
         BPL;.
        Imposes operational requirements for BPL systems to promote avoidance and
         resolution of harmful interference, including such technical mitigation capabilities
         likeas “notching;.”
        Prohibits BPL in specified frequencies and geographical areas designated for
         licensed uses for aeronautical and maritime functions;.
        Creates consultation requirements with public entities related to public safety;.
                                                                                                          Formatted: Left, Right: -0.05", Border: Top:
                                                                                                          (Single solid line, Gray-50%, 0.25 pt Line
10
         See supra note 21.                                                                               width), Tab stops: 6.25", Right + Not at 6"
11
         See supra note 63.                                                                               Formatted: Font: 10 pt


January 2005 - DRAFT                              16
BPL Report                                                                                           NARUC



        Establishes a publicly accessible database of Access BPL systems as a means of
         public notification;
        Impose FCC certification requirements on Access BPL equipment; and.Mandates                           Formatted: Justified, Right: 0.45", Bulleted +
         that Access BPL equipment equipment authorization for BPL devices requires FCC                        Level: 1 + Aligned at: 0.25" + Tab after: 0.5"
                                                                                                               + Indent at: 0.5"
         certification.
                                                                                                               Formatted: Font: 11 pt, Highlight
        Introduces improved measurement procedures and guidelines to test BPL equipment
         for radio interference.12                                                                             Comment [jab7]: Per Don Jones
                                                                                                               Formatted: Font: 11 pt
To implement interference mitigation solutions while simultaneously maximizing the usable                      Formatted: Font: 11 pt
bandwidth of the broadband channel provided, BPL systems are expected to use new modulation
                                                                                                               Formatted: Justified, Right: 0.45"
techniques that can support more sub-carriers that are more finely spaced. As data rates and
                                                                                                               Formatted: Font: 11 pt
bandwidth requirements grow, the BPL systems may operate at greater overall transmitted power
levels but not necessarily with higher power density than is used today. BPL vendors may employ                Formatted: Font: 11 pt
techniques to dynamically adjust the power level to maintain a minimum signal-to-noise ratio over              Formatted: Justified
the entire BPL spectrum, while limiting emissions to levels compliant with Part 15. One vendor has
proposed such a solution for adjusting transmitted power to maintain a constant signal-to-noise ratio
across the BPL spectrum, with a hard limit based on Part 15 rules. The challenge will be to develop
a control mechanism that can optimize the broadband signal while simultaneously limiting the
radiated emissions, perhaps in conjunction with frequency agility and adaptive filtering.

Nortel has developed and patented a filter that blocks BPL signals while concurrently passing
medium-voltage AC power. The judicious use of such blocking filters could could will enables                   Comment [jab8]: Will or could? Do we know
segmentation of BPL networks into adjacent cells of various sizes having low conducted interference            for certain and does the TF want to make technical
                                                                                                               conclusions?
from neighboring cells. This technology will cshould give a BPL operator more flexibility to
mitigate local interference and , and it will enable a greater level of frequency reuse in BPL systems         Formatted: Font: 11 pt, Highlight

than what is currently available.possible.                                                                     Formatted: Font: 11 pt
                                                                                                               Formatted: Font: 11 pt
Aside from the technical advances findings reflected in the Part 15 rule revisions, the FCC’s decision         Formatted: Font: 11 pt
to address thesose issues head-on is itself significant. TThe Task Force is hopeful that Hopefully, the
                                                                                                               Formatted: Font: 11 pt, Italic
rules shouldwill foster BPL’s acceptance as a mass-market technology by conferring a measure of
assurance that radio interference issues will not frustrate its progress. The FCC expressed                    Formatted: Font: 11 pt
confidence that its new Part 15 would be adequate for this purpose:

         It is our intention to ensure that Access BPL operations do not become a source of                    Formatted: Justified, Right: 0.58"
         harmful interference to licensed radio services. Based on extensive research,
         analyses, and practical experience, we also continue to believe that the interference
         concerns of licensed radio users can be adequately addressed and that Access BPL
         systems will be able to operate successfully on an unlicensed, non-harmful
         interference basis under the Part 15 model. In this regard . . . we find that the
         harmful interference potential from Access BPL systems operating in compliance
         with the existing Part 15 emission limits for carrier current systems is low in
         connection with the additional rules we are adopting. From the information
         provided by our field tests, the tests conducted by NTIA, theoretical predictions by
         NTIA and ARRL, and experience of the several tests of Access BPL systems, we
         observe that the potential for any harmful interference is limited to areas within a
                                                                                                               Formatted: Left, Right: -0.05", Border: Top:
12
         This synopsisconcise summarization of the FCC’s technical rules is based in part on the October 24,   (Single solid line, Gray-50%, 0.25 pt Line
2004 presentation of the FCC’s Bruce Franca to the Task Force, as well as the FCC’s October 14, 2004 press     width), Tab stops: 6.25", Right + Not at 6"
release.                                                                                                       Formatted: Font: 10 pt


January 2005 - DRAFT                                 17
BPL Report                                                                                             NARUC



         short distance of the power lines used by this technology. As emphasized by
         NTIA’s Phase I study and comments, interference can be rapidly eliminated
         through various means should it occur. . . . . [T]he broadband service capabilities of
         Access BPL systems offer important opportunities for establishing a new medium
         for broadband access and for introducing new competition in the broadband
         market. We believe that it is important to set forth rules that will promote this
         service now, rather than delay. . . . . While some cases of harmful interference may
         be possible from Access BPL emissions at levels up to the Part 15 limits, we agree
         with NTIA that the benefits of Access BPL service warrant acceptance of a small
         and manageable degree of interference risk.13                                                            Formatted: Font: 11 pt
                                                                                                                  Formatted: Font: 11 pt
Report and Order at para. 23. It is likely , however, that interference concerns will continue to be              Formatted: Justified
debatedlinger to some degree. Commissioner Copps also noted his lingering concerns regarding
                                                                                                                  Formatted: Font: 11 pt
with radio interference. Although Commissioner Copps approved the technical rule changes, he
dissented in part to the FCC’s decision.14                                                                        Formatted: Font: 11 pt
                                                                                                                  Formatted: Font: 11 pt
At the Task Force meeting on October 24, 2004, Paul Rinaldo, ARRL’s Chief Technology Officer,
cogently summarized ARRL’s views on interference. He cautioned that avoiding radio frequency
interference is not a matter of core competence for the electric utility industry.

NARUC and the Task Force recognize the FCC’s jurisdiction over radio emissions and its role as
arbiter of these issues. T                                                                                        Formatted: Font: 11 pt


Commissioner Copps also noted lingering concerns with radio interference.         Although
Commissioner Copps approved the technical rule changes, he dissented in part to the FCC’s
decision.15                                                                                                       Formatted: Font: 11 pt
                                                                                                                  Formatted: Font: 11 pt
The NARUC BPLhe The Task Force is both hopeful and optimistic, however, that the FCC’s
                                                                                                                  Formatted: Font: 11 pt
solution will sufficiently resolve the interference issues , so that BPL can deliver make good on its
promise of delivering universal, and, economical broadband service and improvements to electricity
delivery systems. We recognize, however, that the FCC has jurisdiction over radio emissions and
will be the arbiter of these issues.

13
        FCC Report and Order at ¶para. 23.
14
        Commissioner Copps also criticized the unduly technical scope of the rulemaking, arguing that the         Formatted: Font: 10 pt
FCC should have gone on to address “issues such as universal service, disabilities access, E911, pole
                                                                                                                  Formatted: Font: 10 pt
attachments, competition protections, and, critically, how to handle the potential for cross-subsidization
between regulated power businesses and unregulated communications businesses.” Statement of Michael J.
Copps at 2, Carrier Current Systems, including Broadband over Power Line Systems, ET Docket No. 03-104;
Amendment of Part 15 regarding new requirements and measurement guidelines for Access Broadband over
Power Line Systems, ET Docket No. 04-37 (Oct. 28, 2004).
                                                                                                                  Formatted: Normal
15
  Commissioner Copps also criticized the unduly technical scope of the rulemaking, arguing that the FCC
should have gone on to address “issues such as universal service, disabilities access, E911, pole attachments,
competition protections, and, critically, how to handle the potential for cross-subsidization between regulated
power businesses and unregulated communications businesses.” Statement of Michael J. Copps at 2, Carrier
Current Systems, including Broadband over Power Line Systems, ET Docket No. 03-104; Amendment of Part             Formatted: Left, Right: -0.05", Border: Top:
15 regarding new requirements and measurement guidelines for Access Broadband over Power Line Systems,            (Single solid line, Gray-50%, 0.25 pt Line
ET Docket No. 04-37 (Oct. 28, 2004).                                                                              width), Tab stops: 6.25", Right + Not at 6"
                                                                                                                  Formatted: Font: 10 pt


January 2005 - DRAFT                                  18
BPL Report                                                                                    NARUC




Technical Constraints on Rural Service

Because electric distribution lines exist in most rural areas, many have hoped that BPL would help        Formatted: Justified
solve the problem of how to extend economical broadband services to underserved areas that are too
sparsely populated to have broadband access through cable television lines or DSL. However, most
observers close to the BPL industry are not optimistic on this count.with regard to this potential.

As noted earlier in this discussion, BPL configurations use electric lines to provide a last broadband
link to end-users that are already proximate to (within ¼ to ½ of a mile of) fiber optic nodes or other
modes of broadband services. In other words, the electric line acts as a means of distribution, not as    Formatted: Font: 11 pt, Italic
a long-haul carrier; , and, even then, the signal must be regenerated frequently (every 1,000 to 3,000
feet) with repeaters.
                                                                                                          Formatted: Font: 11 pt, Italic
                                                                                                          Formatted: Font: 11 pt
Some have viewed the relatively low cost of BPL as a relativelyn economical means of providing
distribution service to smaller numbers of closely-spaced users than would be justified by other
technologies. A good example is Central Virginia Electric Cooperative, which is initiating service
on a pilot basis to a rural area. However, even this approach is financially viable only if enough
customers (e.g., a small residential subdivision) are located sufficiently close to a point where a
signal can be injected from a long-haul broadband medium to the electrical system. Under the              Formatted: Font: 11 pt, Italic
current state of technology, BPL is both density- and distance-sensitive; as in other utilities, scale    Formatted: Font: 11 pt, Italic, Not Highlight
economies apply..                                                                                         Formatted: Font: 11 pt, Italic
                                                                                                          Formatted: Font: 11 pt, Italic, Not Highlight
The Task Force has yet to be presented with hear from anyone with a technical solution fix that
would enable extend BPL to widely dispersed single rural users, each miles apart from the others.         Comment [jab9]: Beecher added
However, technology may advance to the point where truly rural service viarural BPL may become            Formatted: Font: 11 pt, Italic, Highlight
possible. The WeTask Force continues to remains optimistic that sufficient rural demand will drive        Formatted: Font: 11 pt, Italic
innovation and such thelp make broadband hat access in rural areas becomes more of a reality for
                                                                                                          Formatted: Font: 11 pt, Italic
rural areas. We will continue to monitorlook more in depth into rural BPL developmentsstatus and
                                                                                                          Formatted: Font: 11 pt
issues throughout 2005.
                                                                                                          Formatted: Justified
BPL Projects and Deployment                                                                               Formatted: Font: 11 pt
                                                                                                          Formatted: Font: 11 pt
To date, BPL’s apparent technological promisepotential has induced a variety of electric utilities to
deploy it throughout the United States, although, in most cases, on an experimental or “pilot” basis.
The most notable examples of the relatively few full-scale commercial deployments are those by
Cinergy in Cincinnati, Ohio and the municipal utility in Manassas, Virginia. In late 2004, NARUC
surveyed the state States regarding in BPL deployments; across the country, and the detailed results
of that survey are attached toincluded as this report as Appendix B to this report.


                                                                                                          Formatted: Font: 15 pt

                                                                                                          Formatted: Font: 11 pt
                                                                                                          Formatted: Justified
                                                                                                          Formatted: Left, Right: -0.05", Border: Top:
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                                                                                                          width), Tab stops: 6.25", Right + Not at 6"
                                                                                                          Formatted: Font: 10 pt


January 2005 - DRAFT                              19
BPL Report                                                                                    NARUC



IV.

SECURITY
                                                                                                          Formatted: Font: 11 pt, Not Italic
                                                                                                          Formatted: Font: 11 pt
A premise of this discussion is that the concepts of security and reliability are closely intrinsically
related. In the electricity context, reliability typically means that customers can obtain a given
quality and quantity of electrical energy, more or less on demand, within the parameters specified in
national electric reliability standards, quality- of- service rules enforced by Sstate
commissionsregulators, and utility tariffs. The concept of reliability directly triggers security
concerns, as the greater part of modern-day society, including functions services integral to our
health and well-being, simply does not work function without a reliable supply of electricity (or
reliable means of emergency backup power when normal distribution is interrupted). Other utilities
and networks are highly dependent on electricity. If there is an interruption occurs, arrangements
must be in place to ensure that hospitals can continue to provide care, traffic signals continue to
work, water and wastewater are pumped, public transportation systems runfunctions, emergency
communications are effective, economic losses and disruptions to businesses are minimized, etc.and
so on.

The events of September 11, 2001 and August 14, 2003 provide a contextdramatic illustrations of
for the relationship between security and electric reliability. However, disruptions on a smaller scale
also raise these concerns. The growing reliance of the economy integration ofon complex and               Formatted: Font: 11 pt, Not Highlight
integrated information and data processing systems as part of normal business practices has               Formatted: Font: 11 pt
increased the demand for a higher quality of reliable power and simultaneously has reduced                Formatted: Font: 11 pt, Not Highlight
customers’ tolerance for even momentary disruptions of their electric supply.electricity outages.
                                                                                                          Formatted: Font: 11 pt

A discussion of BPL’s implications for security would not be complete without acknowledging radio         Formatted: Font: 11 pt, Not Highlight
interference issues. Emergency response capabilities in use today often depend upon unlicensed            Formatted: Font: 11 pt
frequencies to maintain communications. As noted earlier, these issues have been entrusted to the         Formatted: Font: 11 pt, Not Highlight
FCC, which has promulgated its Part 15 rules to accommodate the needs of users of unlicensed
                                                                                                          Formatted: Font: 11 pt
frequency users.




                                                                                                          Formatted: Left, Right: -0.05", Border: Top:
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                                                                                                          width), Tab stops: 6.25", Right + Not at 6"
                                                                                                          Formatted: Font: 10 pt


January 2005 - DRAFT                              20
BPL Report                                                                                             NARUC



Enhanced Electric Utility Reliability and Security                                                             Formatted: Font: 11 pt
                                                                                                               Formatted: Justified
Even though BPL is commonly viewed as a communications technology that uses electrical power
                                                                                                               Formatted: Justified, Indent: First line: 0"
lines, it has tremendous potential implications for the enhancing the ed operability of the electric grid
itself. An excellent example of potentical technological synergy, cCommunications capabilities                 Formatted: Font: 11 pt, Not Highlight
embedded within the electric system could make possible dramatic enhancements in the efficiency                Formatted: Font: 11 pt
and reliability of electric utilities’ power operations. The ultimate goal, in this respect , is to embrace
                                                                                                               Formatted: Font: 11 pt, Not Highlight
the concept ofis development of the a “intelligent” or “”smart” grid.” A very good useful
explanation of the smart grid concept appears in a June 2003 report authored by the Smart Grid                 Formatted: Font: 11 pt

Working Group of the Energy Future Coalition:1615,17 as follows:                                               Formatted: Font: 11 pt, Not Highlight
                                                                                                               Formatted: Font: 11 pt
                                                                                                               Formatted: Font: 11 pt
       The term “smart grid” refers to an electricity transmission and distribution system that
                                                                                                               Formatted: Font: 11 pt
       incorporates elements of traditional and cutting-edge power engineering, sophisticated
       sensing and monitoring technology, information technology, and communications to                        Formatted: Font: 11 pt

       provide better grid performance and to support a wide array of additional services to                   Formatted: Font: 11 pt
       consumers. A smart grid is not defined by what technologies it incorporates, but rather                 Formatted: Justified
       by what it can do. The key attributes of the 21st century grid include the following:                   Formatted: Indent: First line: 0"
                                                                                                               Formatted                                      ...
              The grid will be “self-healing.” Sophisticated grid monitors and controls will
                                                                                                               Formatted: Justified, Indent: Left: 0.25"
               anticipate and instantly respond to system problems in order to avoid or mitigate
               power outages and power quality problems.                                                       Formatted: Font: 11 pt, Italic, No underline
              The grid will be more secure from physical and cyber threats. Deployment of                     Formatted                                      ...
               new technology will allow better identification and response to manmade or                      Formatted: Font: 11 pt, Italic
               natural disruptions.                                                                            Formatted: Font: 11 pt
              The grid will support widespread use of distributed generation. Standardized
                                                                                                               Formatted: Font: 11 pt, Italic, No underline
               power and communications interfaces will allow customers to interconnect fuel
               cells, renewable generation, and other distributed generation on a simple “plug                 Formatted: Font: 11 pt, Italic
               and play” basis.                                                                                Formatted: Font: 11 pt
              The grid will enable consumers to better control the appliances and equipment                   Formatted: Font: 11 pt, Italic, No underline
               in their homes and businesses. The grid will interconnect with energy                           Formatted: Font: 11 pt, Italic
               management systems in smart buildings to enable customers to manage their
                                                                                                               Formatted: Font: 11 pt
               energy use and reduce their energy costs.
                                                                                                               Formatted: Font: 11 pt, Italic, No underline
              The grid will achieve greater throughput, thus lowering power costs. Grid
               upgrades that increase the throughput of the transmission grid and optimize                     Formatted: Font: 11 pt, Italic
               power flows will reduce waste and maximize use of the lowest-cost generation                    Formatted: Font: 11 pt
               resources. Better harmonization of the distribution and local load servicing                    Formatted: Font: 11 pt, Italic, No underline
               functions with interregional energy flows and transmission traffic will also
                                                                                                               Formatted: Font: 11 pt, Italic
               improve utilization of the existing system assets18.19
                                                                                                               Formatted: Font: 11 pt
                                                                                                               Formatted: Font: 11 pt
16
           The report can be found at http://www.energyfuturecoalition.org/full_report/app_smart_grid.pdf.
17                                                                                                             Formatted: Font: 11 pt
     The report can be found at http://www.energyfuturecoalition.org/full_report/app_smart_grid.pdf.
                                                                                                               Formatted: Font: 11 pt
                                                                                                               Formatted: Normal
                                                                                                               Formatted: Font: 10 pt
15
           The report can be found at http://www.energyfuturecoalition.org/full_report/app_smart_grid.pdf.     Formatted: Font: Italic
18
           Report of the Smart Grid Working Group at 3-4.
                                                                                                               Formatted                                      ...
19
           Report of the Smart Grid Working Group at 3-4.                                                      Formatted: Font: 10 pt


January 2005 - DRAFT                                   21
BPL Report                                                                                     NARUC



                                                                                                           Formatted: Indent: First line: 0"
Report of the Smart Grid Working Group at 3-4. The report explains how the smart grid could                Formatted: Justified
enhance security and reliability. While As such, it promising es dramatic improvements, . However,
it is probably fair to characterize the smart grid currently remainsas a futuristic concept. Some of the
enabling technologies may actually exist or appear in various stages on the drawing board, but they
are not yet widely deployed. In this respect, the smart grid is much like BPL itself; both concepts are
technically viable as a matter of technology, but neither concept has yet to been widely deployed.
Viewed in context, BPL could become one of many enabling technologies that could helps to turn
the smart grid a working reality.
                                                                                                           Formatted: Justified, Indent: Left: 0"
Most of the presentations and literature reviewed by the Task Force have focused on BPL as a               Formatted: Justified
communications technology that would enable electricity customers to obtain broadband service.
Usually,Typically, utilities undertaking BPL as a business opportunity (—tto earn additional
revenues from communications services) —roll it out put it in place on a small scale, so as to
minimize the risks of project failure. Most utilities that have actually deployed BPL service fall in
this category.follow this profile.
                                                                                                           Formatted: Font: 11 pt
                                                                                                           Formatted: Justified, Indent: Left: 0"
There has beenL less discussion has centered on how BPL will facilitate enhanced utility network
                                                                                                           Formatted: Justified
operations as conceptualized as smart- grid applications. However, Ssome observers have suggested
that BPL could, in the end, prove to have more value as a means of enhancing electric utility
operations than as a means of extending broadband. Consolidated Edison Company and Hawaiian
Electric Company are two utilities are examples of utilities that that have implemented BPL projects
to improve their electric operational capabilities. Mike McGrath, Executive Director of – Retail
Energy Services for the Edison Electric Institute (EEI), has advised the Task Force that electric
system enhancement is the primary objective for roughly half of the investor-owned utilities
interested in BPL. He pointed out that other non-BPL communication technologies can also
contribute to electric system enhancement. Others present at the October 24, 2004 Task Force               Formatted: Font: 11 pt
meeting disagreed, asserteding that every electric utility pursuing BPL is actively interested in          Formatted: Font: 11 pt
system enhancement, even if its small-scale rollout to date appears to focus on the business
opportunity of profiting from end-use broadband services.despite the apparent focus on small-scale
roll-outs for revenue enhancement. According to Current’s Jay Birnbaum, Cinergy, – which may
can probably claim to have the most extensive rollout of BPL-enabled broadband service to electric
customers, – remains vitally interested in BPL’s ppromise otential for improving electric service.
Although Cinergy has not yet implemented applications related to system-wide applications, utility
operations, it is pursuing them and might not have started down the BPL path were it not for the           Formatted: Font: 11 pt
promise of enhanced electric utility operations.

Work by the Electric Power Research Institute’s (EPRI) IntelliGrid Consortium has focused on an an
openopen- source communication architecture and and is looking at hhow communication between
elements of the power supply system could be handled so that smart devices can tie into any
available communication medium. This means BPL can be an enabling technology in support of
these smart systems. Analysis suggest that a communications system that enables better
management of power use and demands could be roughly worth seven times the initial expenditure. 20         Formatted: Font: 11 pt
                                                                                                           Formatted: Font: 11 pt

                                                                                                           Formatted: Left, Right: -0.05", Border: Top:
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20
       Clark W. Gellings and Karen George, “Broadband Over Powerline 2004: Technology and Prospects,”      width), Tab stops: 6.25", Right + Not at 6"
EPRI, November 2004, p. 17. Citation and analysis used with permission of EPRI.                            Formatted: Font: 10 pt


January 2005 - DRAFT                              22
BPL Report                                                                                     NARUC




BPL could enable enhanced electric reliability and security and provide new services to customers
and greater operational control to utilities. A BPL-enabled intelligent grid could have a greater
ability to detect and automatically repair potential problems before they occur. It could also make
the grid less susceptible to terrorists, technological failures, or natural disasters. It also would
require means that these communications capabilities would need to be seamlessly capable of
tapping into BPL, cable modem DSL, WiFi, and WiMax. Metering aThe range of applications
include could run from the ability to do remote meter reading, remote metering reading, meter theft
and tampering detection, and net metering. Demand-side management applications include offering
more tailored time- of- use pricingrates, application of net metering, and control of customer’s
electrical systems for load control. Within the power delivery system, the ability to monitor
substation and various equipment components could enhance security, as well as may allow sensors           Formatted: Font: 11 pt, Not Highlight
to detect the potential for equipment failure, and facilitate allow its replacement before an outage       Formatted: Font: 11 pt
occurs, and restore service expeditiously when an outage occurs..                                          Formatted: Font: 11 pt, Not Highlight
                                                                                                           Formatted: Font: 11 pt
                                                                                                           Comment [jab10]: Rewrote this to reduce
                                                                                                           redundancy below
The BPL rollout by the City of Manassas, Virginia, while not rising to the level of the smart grid, is a
promising example of how an electric utility can enhance its electric system monitoring capabilities.      Formatted: Font: 11 pt, Not Highlight
According to Allen Todd, the City’s Director of Utilities, the Manassas BPL buildout application is        Formatted: Font: 11 pt
somewhat unusual in its that the primary focus on improving system monitoring. was to improve              Formatted: Font: 11 pt
the ability to monitor its system from about 26 circuits to 2,600 separate points [verify number].         Formatted: Font: 11 pt
Using BPL to makeMaking high-speed Internet access available to city residents was is an added
                                                                                                           Comment [jab11]: Deleted specifics
bonus, but not the original impetus for BPL. By installing this communications capability, Manassas
can pinpoint where faults and failures are occurring in much finer geographic detail. The CityIt has
                                                                                                           Formatted: Font: 11 pt
also has converted from manual to automated readings of electric meters to reduce costs and improve
accuracy.                                                                                                  Formatted: Font: 11 pt


Other enterprises formed to exploit BPL as a business opportunity are also touting its advantages as
an operational enhancement of electric operations. Current and Amperion are both providing BPL
service in working partnerships with the backing of affiliates of investor-owned electric utilities.       Formatted: Font: 11 pt
Both contend that BPL can provide various enhanced operational electrical capabilities, including
outage and restoration detection, network security and monitoring, automated meter reading, meter
theft and tampering detection, and more efficient demand-side management services..

BPL customer service and applications should consider both the range of “value-added customer
services” such as Internet access, VoIP, and real-time billing data and energy consumption along
with “utility network management,”, which would include a range of capabilities such as automated
meter reading, outage detection, dynamic pricing communicationinformation, security monitoring,
etc.21 If BPL can be used to enable the communication capability of the power supply system, the           Formatted: Font: 11 pt
benefits of to customers and to mmore efficient, secure, and reliable utility operations can be            Formatted: Font: 11 pt
achievedderived.

Whatever technology is utilized, tThe potential benefits of the Intelligent Gridsmart grid of the          Formatted: Justified
future, as envisioned in EPRI research efforts,for both security and reliability are significant, as
envisioned and . These benefits have been quantified in a July 2004 EPRI report prepared by
                                                                                                           Formatted: Left, Right: -0.05", Border: Top:
                                                                                                           (Single solid line, Gray-50%, 0.25 pt Line
                                                                                                           width), Tab stops: 6.25", Right + Not at 6"
21
        Id. at p. 16.                                                                                      Formatted: Font: 10 pt


January 2005 - DRAFT                              23
BPL Report                                                                                        NARUC



EPRI.22 According to the Onestudy, a goal of the power system of the future is to achieve “[p] of the        Formatted: Font: 11 pt
specific goals of the power system of the future as stated in this study isis stated in the study as         Formatted: Font: 11 pt
follows:

“Physical and information assets that are protected from man-made and natural threats and a                  Formatted: Justified, Indent: Left: 0"
power delivery infrastructure that can be quickly restored in the event of an attack.” 23                    Formatted: Font: 11 pt
                                                                                                             Formatted: Font: 11 pt
The benefits of the smart grid Intelligent Grid of the future accrue to both the power delivery
                                                                                                             Formatted: Justified, Indent: Left: 0", Right:
systems and to consumers, as shown below. The attributes in the following table show the                     0.5"
relationship. While one of the areas of focus of the NARUC BPL Task Force has been on the
security, reliability, and availability benefits, it is important to note that that there are additional
benefits.These benefits extend well beyond the security and reliability considerations that are at the
center of the Task Force’s attention in this report.
                                                                                                             Formatted: Centered




                                                                                                             Formatted: Left, Right: -0.05", Border: Top:
22
       Power Delivery System of the Future: A Preliminary Estimate of Costs and Benefits, EPRI. Palo Alto,   (Single solid line, Gray-50%, 0.25 pt Line
CA: 2004, 1011001. Citation and analysis used with permission of EPRI.                                       width), Tab stops: 6.25", Right + Not at 6"
23
       Id. at p. 2-1.                                                                                        Formatted: Font: 10 pt


January 2005 - DRAFT                                24
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                                    Formatted: Font: 11 pt
                                    Formatted: Font: 11 pt




                                    Formatted: Left, Right: -0.05", Border: Top:
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January 2005 - DRAFT   25
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                                                                                                            Formatted: Font: 11 pt
                                                                                                            Formatted: Font: 11 pt




                                                                                                            Formatted: Centered
                                                                                                            Formatted: Font: 11 pt, Bold
     Exhibit 4. Attribute and Types of Improvements Assumed in the Value Estimation of the                  Formatted: Font: 11 pt
                             Future Power Deliver System.24 footnote                                        Formatted: Font: 11 pt
                                                                                                            Formatted: Font: 11 pt
                                                                                                            Formatted: Font: 11 pt, Highlight
                                                                                                            Formatted: Font: 11 pt, Bold
                                                                                                            Formatted: Font: 11 pt
                                                                                                            Formatted: Justified, Indent: Left: 0"
                                                                                                            Formatted: Highlight
                                                                                                            Formatted: Left, Right: -0.05", Border: Top:
24
  Source         Power Delivery System of the Future: A Preliminary Estimate of Costs and Benefits, EPRI.   (Single solid line, Gray-50%, 0.25 pt Line
Palo Alto, CA: 2004, 1011001. Reproduced Citation and analysis used with permission of EPRI.                width), Tab stops: 6.25", Right + Not at 6"
                                                                                                            Formatted: Font: 10 pt


January 2005 - DRAFT                                26
BPL Report                                                                                         NARUC



                                                                                                           Formatted: Font: 11 pt
                                                                                                           Formatted: Font: 11 pt




                                                                                                           Formatted: Justified
The EPRI study did quantify quantified the net benefits from investing in this futuristice grid power
delivery system.25 The scope of the applications required applications included automation,                Formatted: Font: 11 pt
communication architecture (a key foundation), distributed resources, electronic based controllers,        Formatted: Font: 11 pt
and consumer portals, to name a fewand more. Over and above the investments needed to meet load
growth and correct existing limitations, the cost of the systemimplementation was estimated at as
envisioned in this study is $165 billion over 20 years. This constitutes is an annual investment of
$8.3 billion above the approximately $18 billion in the current level of annual investment.                Comment [jab12]: Check
According to the study, this results in athe investment would yield a 20-year net benefit of between       Formatted: Font: 11 pt
$638 billion and $802 billion, or a cost benefit-cost ratio rangingthat ranges from about 4:1 to 5:1.
                                                                                                           Formatted: Font: 11 pt
From the perspective of this inquiry, what is most interesting is thatImportantly, most of the benefits
                                                                                                           Formatted: Font: Italic
                                                                                                           Formatted: Left, Right: -0.05", Border: Top:
25
        Id.Power Delivery System of the Future: A Preliminary Estimate of Costs and Benefits, EPRI. Palo   (Single solid line, Gray-50%, 0.25 pt Line
Alto, CA: 2004, 1011001. Citation and analysis used with permission of EPRI.                               width), Tab stops: 6.25", Right + Not at 6"
                                                                                                           Formatted: Font: 10 pt


January 2005 - DRAFT                                27
BPL Report                                                                                   NARUC



are attributable to reliability and security, as can be seen on the following graph based on the more
conservative lower bound of the range of estimates. The principal benefits to reliability are the
reduction in costs associated with poor power quality and outages that together , cost United States
consumers $119 billion to 188 billion per year.annually.



                           Aggregrate Net Present Value All Attribute s
                                           ($Billions)
                           Aggregrate Net Present Value All Attribute s
                                                    ($Billions)

                                              Quality, 36
                              Enviromental, 48
                                              Quality, 36
                                Safety, 11
                              Enviromental, 48
                                 Safety, 11
                     Quality of Life, 65                              Reliability, 247

                     Quality of Life, 65                              Reliability, 247
                       Productivity, 1                                                                  Formatted: Font: 11 pt

                             Cost, 1
                       Productivity,50

                              Cost, 50

                               Capacity, 49

                               Capacity, 49
                                                      Security, 133
                                                                                                        Formatted: Font: 11 pt
                                                      Security, 133

                                                  Exhibit 5.




                                                                                                        Formatted: Left, Right: -0.05", Border: Top:
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January 2005 - DRAFT                                   28
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              Estimated Net Present Worth ($ Billions) of the Improvements for all                       Formatted: Font: 11 pt, No underline
                            Attributes Over the 20-Year Study Period                                     Formatted: Font: 11 pt, Bold
                               (Assuming Primend Lower Bound) 26                                         Formatted: Font: 11 pt, No underline
                          Net Present Worth (5% Discount Rate) = $638 Billion
                         Annualized Value (5% Discount Rate) = $5.1 Billion/Year                         Formatted: Font: 11 pt
                                                                                                         Formatted: Font: 11 pt, No underline
                                                                                                         Formatted: Font: 11 pt, No underline
                                                                                                         Formatted: Font: 11 pt
                                                                                                         Formatted: Font: (Default) Times New Roman
                                                                                                         Formatted: Centered
                                                                                                         Formatted: Font: 11 pt, No underline
                                                                                                         Formatted: Font: 11 pt
                                                                                                         Formatted: Left
                                                                                                         Formatted: Font: 11 pt
                                                                                                         Formatted: Font: 11 pt




                      Net Present Worth (5% Discount Rate) = $638 Billion
                      Annualized Value (5% Discount Rate) = $5.1 Billion/Year

                                                                                                         Formatted: Justified


                                                                                                         Formatted: Font: 11 pt




26
        Id. Reproduced with permission of EPRI. Power Delivery System of the Future: A Preliminary       Formatted: Left, Right: -0.05", Border: Top:
Estimate of Costs and Benefits, EPRI. Palo Alto, CA: 2004, 1011001. Citation and analysis used with      (Single solid line, Gray-50%, 0.25 pt Line
permission of EPRI.                                                                                      width), Tab stops: 6.25", Right + Not at 6"
                                                                                                         Formatted: Font: 10 pt


January 2005 - DRAFT                               29
BPL Report                                                                                 NARUC




                                                                                                      Formatted: Justified, Indent: Left: 0"
These findings suggest that BPL can contribute tohelp realizirealizeng a future power supply system   Formatted: Justified
that is more reliable, and more secure, and one that is better able to meet the technology needs of
the future, as well as provide for other significant benefits.




                                                                                                      Formatted: Left, Right: -0.05", Border: Top:
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January 2005 - DRAFT                            30
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                                                                                                           Formatted: Font: 11 pt
                                                                                                           Formatted: Normal, Justified
System Interdependencies                                                                                   Formatted: Normal, Don't keep with next



                                                                                                           Formatted: Font: 11 pt
If BPL providers develop their own equipment and infrastructure, they may end up with athe                 Formatted: Justified, Indent: First line: 0",
multiplicity of technologies may result in that are incapable of operatingincompatibility with other       Don't keep with next
systems, raising a number of questions:. If each provider or electric utility develops its own             Formatted: Justified
architecture for a BPL-enhanced smart-grid technology, what would be the effect on the reliability
and security of the electric grid as a whole? Could there be a loss of efficiency as different electric
systems deploy incompatible equipment? Could there be a loss of thescale economies be foregone in
the absence of of scale that would be achieved with standardized equipment or technologies?

Erich W. Gunther, Chairman and Chief Technology Officer of EnerNex Corporation, is an expert on
technological issues who has considered and has done considerable work on how to design an
architecture for a future intellithe architectural design needs of a smart grid. gent grid. In his view,
the strength of BPL is that it makes more communications capability available at a lower cost. He
believes that BPL is technically viable as a means of making the grid work smarter.
                                                                                                           Formatted: Justified, Indent: Left: 0"
According to Mr. Gunther, the sticking point is that there has beenthe little progress to date in          Formatted: Justified
addressing how to make the security of a BPL-based technology platform compatible with the dual
functions of enhanced electric grid operation and high-speed Internet access. AHe observessays that
a single system makes both functions interdependent and, as such, creates its own security risks. He
contendsalso notes that the vulnerabilities of electric utility operations and Internet services are
different and that the risks of security breaches for each type of system also differ considerably. As a
simplistic example, the vulnerability of a BPL-based SCADA system to computer hacking could
threaten the electrical supply and disrupt the economies of entire regions. The threat posed by a
hacker to a broadband subscriber is also serious, but the harm tends to be more localized; i.e., only      Comment [jab13]: See Don Jones – is this
the targeted individual is affected. Thus, relying onThe criminal prosecutions used to deter against       better?
“conventional” hackers may be an effective and cost-justified deterrent to protect against computer-       Formatted: Font: 11 pt
based identify theft, butin it may be less adequate as a means of protecting an entire society against
                                                                                                           Formatted: Font: 11 pt
an overseas terrorissomeonet intent on jamming the entire BPL system to disrupt electricity service,
communications, or both. on causing a large electrical outage.                                             Formatted: Font: 11 pt, Not Highlight
                                                                                                           Comment [jab14]: c-b does not “anticipate
                                                                                                           obstacles”
Mr. Gunther states finds that the development of appropriate software is a possible means of
reconciling the security needs of an interdependent system. Encryption of communications signals           Formatted: Font: 11 pt
will probably be part of any solution. In addition, it is necessary to undertake cost-benefit              Formatted: Font: 11 pt
analysesevaluation studies that justifycan be used to assess the costs and benefits of potential           Formatted: Font: 11 pt
solutions across the entire range of interdependent functionalities and, as well as anticipate obstacles
                                                                                                           Formatted: Justified
to implementation. before they occur. Mr. Gunther predictsbelieves that a solution for BPL-
enhanced electric security is at least five years away. He cautions that no technology should be           Formatted: Font: 11 pt, Not Highlight

deployed for its own sake.                                                                                 Formatted: Font: 11 pt
                                                                                                           Formatted: Font: 11 pt, Not Highlight
According to Mr. Gunther, also notes that the current modes of communications used by electric             Formatted: Font: 11 pt
utilities for their operations are very insecure. Theyseir systems are typically radio-based or rely on
                                                                                                           Formatted: Left, Right: -0.05", Border: Top:
closed- circuit lines. A radio signal can be intercepted , and a telephone line can be tapped, but         (Single solid line, Gray-50%, 0.25 pt Line
either approach requires physical proximity to the communications signal. In contrast, BPL-based           width), Tab stops: 6.25", Right + Not at 6"
communications are not distance-sensitive. It appears thDat dIronically, devising an encryption-           Formatted: Font: 10 pt


January 2005 - DRAFT                              31
BPL Report                                                                                      NARUC



based solution for BPL could help accomplish an improvementimprove over the present level of grid
security, but only if it is tamper proof.


It should be noted that BPL raises another interdependency issue by combining two public
necessities—electric supply and communications services—on the electrica common grid. Unlike
plain old telephone service, which can work reasonably well during electrical outages, BPL would be
subject to the same degree of interruption as electric service. Thus, moving Internet access and other
communications capabilities (e.g., voice over Internet protocol, orsuch as VoIP) to a BPL platform
may diminish some of tthe protection afforded through the redundancy built into today’s systems.
infrastructures.

A final comment onFinally, regarding cybersecurity, . Mr. Gunther advises that BPL raises                   Formatted: Justified
roughlymostly the same security issues as other forms of broadband communications. One possible
exception is some BPL providers’ reliance on WiFi to provide a final link to the broadband
subscriber. WiFi and other wireless forms of broadband connection present some different
vulnerabilities than cable television or DSL access. While these issues are important in relation , as
they relate to such matters as intrusions upon privacy, identity theft, and police surveillance, they are
beyond the scope of this discussion. of What is not beyond this discussion is the cyber security
requirements associated with utility enhanced operations using intelligent smart grid concepts.

These issues considerations would need to be carefully addressedrrequire careful
considerationimplementation at the onset of the use of these technologies to enassure that one set of
physical vulnerabilities would not simply be and not simply trtraded for a nother set of potential
cyber vulnerabilities. From a security and reliability perspective, the electricity system must be
made fail-safe with respect to BPL; electricity must continue to flow regardless of whether the BPL
system is operating, damaged, or compromised. Likewise, the implications of an electricity system
failure for loss of communications service must be fully understood and appreciated, with
appropriate safeguards put into place prior to wide applications. It would be useful to evaluate BPL
and other broadband technologies in terms of their comparative implications for security, reliability,
and other performance criteria.                                                                             Comment [jab15]: read carefully-- new based
                                                                                                            on comments from Don Jones
                                                                                                            Formatted: Font: 11 pt
                                                                                                            Formatted: Font: 11 pt
V. REGULATORY                                                                                               Formatted: Left
                                                                                                            Formatted: Font: 15 pt
                                                                                                            Formatted: Font: 11 pt
                                                                                                            Formatted: Left




                                                                                                            Formatted: Left, Right: -0.05", Border: Top:
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January 2005 - DRAFT                               32
BPL Report                                                                                              NARUC



V.

                                              REGULATORY


The state regulatory issues and concerns posed by the deployment of BPL can be divided into two                   Formatted: Justified
general categories: iIssues arising from the regulation of electric companies and issues arising from
the regulation of communications. Each of these broad categories includes several subcategories,
and each carries involves consequences that evolve from the regulatory perspective of the underlying
industry.issues that relate specifically to the federal and Sstate regulation of the two industries.
Generally, though,however, regulatory issues thfor both sectors ese issues overlap and can be
organized into fall into five areas of concerncategories: cost allocation; affiliate transactions; rights-
of-way; provider access; and licensing and telephone legacy regulation. Most of these rest squarely
within the purview of State commissions.

While this list will certainly not prove to beis certainly not exhaustive, it contains what the Task
Force believes to be the crucial state regulatory issues surrounding BPL deployment facing State
policy makersregulators as this nascent impressive new ttechnology continues to unfold. The Task
Force welcomes input on these and other regulatory issues. While few States have formal dockets
open to examine these issues, the Task Force, and hopes to spend more of its efforts in 2005
formulating a collection of best practices as a reference tools for State regulators.more concrete
recommendations regarding these matters.in terms of regulatory policy.


Cost and Revenue Allocation

The distribution portion of the electric industry is still, overwhelmingly, traditionally regulated.
Electricity distribution remains a highly regulated function across the state States. This means                  Formatted: Justified
thatFor the most part, traditional, cost-based rate- of- return methods policies and standards apply to
investment in and cost recovery for the electricity distribution companiessystem. If and when the
distribution system is used to provide another unrelated service, traditional regulatory questions arise
regarding allocation of costs and revenues.

One keyAn initial and important question state presented to State policy makersregulators may ask                 Formatted: Justified
face is whether andand how to assign an appropriate allocation of the costs of the electric distribution          Formatted: Font: 11 pt, Highlight
system to the BPL service.; that is, who pays for what?. The telecommunications industry faced an                 Formatted: Font: 11 pt
analogous situation when local telephone companies began to install modern switching equipment,
                                                                                                                  Formatted: Font: 11 pt, Highlight
which came with the vertical features, functionalities, and capabilities that made possible, among
other things, such discretionary services as call waiting and caller ID. Sensing a new revenue                    Formatted: Font: 11 pt
opportunity, telephone companies began to market these new, non-traditional, discretionary services
to their plain old telephone service (POTS) customers; many and often were faced with competition
ve alternatives from inside and outside the traditional telephone industry. Arguments for allocating
only the negligible incremental cost of providing the vertical telecommunications services27                      Formatted: Font: 11 pt
                                                                                                                  Formatted: Font: 11 pt

27
          Basically zero or close to it, given that the cost of investing in the new switching equipment was      Formatted: Underline
largely fixed. See, generally, Khahn, Alfred E., Letting Go: Deregulating the Process of Deregulating, (MSU       Formatted: Left, Right: -0.05", Border: Top:
1998) at 83-89 as perhaps the best known and strongest proponent for minimal allocations. An interesting          (Single solid line, Gray-50%, 0.25 pt Line
aside is found in n. 112 page 83 of this book, where Kahhan suggests for any direct transfer/divestiture of       width), Tab stops: 6.25", Right + Not at 6"
assets that “purchasers of regulated services would, indeed, be entitled, under original cost regulation to any   Formatted: Font: 10 pt


January 2005 - DRAFT                                   33
BPL Report                                                                                              NARUC



(basically zero or close to it, given that the cost of investing in the new switching equipment was
largely fixed) were counteredoffset by arguments that these discretionary services should bear their
share of fully allocated costs. By so doingallocating costs in this manner, the vertical services would
fund some portion of the investment in local switching, help subsidize universal service, and help
keep the cost of POTS affordable.

The sameComparable questions arise for BPL, which, for the present , involves mainly small pilot                  Formatted: Justified
programs. As deployment becomes more widespread, cost allocation issues will come to the fore,
particularly if raised in the context of electric rate cases. Based on historic cost accounting principles
utilized by many regulatory commissions, the direct costs of BPL , and that portion of the common
costs of the distribution system attributable to BPL,BPL probably should not be paid supported by
core electric ratepayers; rather, these costs , but rather should be imputed to BPL service. If these
costs are not removed from electric rates, the captive electric ratepayers would arguably be
subsidizeing the deployment of BPL and also bear a degree of risk for what could be a speculative                 Formatted: Font: 11 pt, Not Highlight
venture.                                                                                                          Comment [jab16]: Schriber
                                                                                                                  Formatted: Font: 11 pt
The question differs somewhat, but not necessarily completelyentirely, if the electric utility usesis
                                                                                                                  Formatted: Font: 11 pt
using BPL, in whole or in part, for its own electric utility operational purposes. SomeThere
certainly are those electric companies may , such as Cinergy, that see BPL principally as a valuable              Formatted: Font: 11 pt
communications options to offer their customers. OthersThere are other companies, however, who                    Formatted: Justified
appear are far more interested in the use of BPL technology as a stepping stone to the “smart grid” or            Formatted: Font: 11 pt
to otherwise enhance their electric distribution capabilities, as discussed earlier. Several
                                                                                                                  Formatted: Font: 11 pt
commentators have suggested that the benefits on the electric sideof enhanced operations—to – to
both the company and its customers—may with time -- may cover most , if not all, of the expenses
related to any communications offeringsdeployment. Improving system reliability and the
efficiencies gained through the use of remote load management, outage detection and management,
customer notice, trouble reporting, and the like, may will likely certainly be worthbe used to justify            Formatted: Font: 11 pt, Not Highlight
the investment in the technology.                                                                                 Formatted: Font: 11 pt

Using a fully allocated cost methodology, BPL would fund a portion of the distribution system’s
investment and maintenance cost and thereby help lower electric costs allocated to electricity use.               Comment [jab17]: need to be very precise here
                                                                                                                  Formatted: Font: 11 pt
Using an incremental- cost methodology, the costs of entry into the BPL market would probably be                  Formatted: Font: 11 pt
evenlikely be lower (as in the example aboveof vertical telecommunications features being offered in
addition to POTS)), making broadband availability more affordable and thus more ubiquitous and
more affordable to the communications customer. .

Traditionally, regulated utilities that engage in unregulated activities (assuming no divestiture)
generally are required to segregate costs and risks, in order to protect core customers. Sometimes,               Comment [jab18]: seems wrong as written but
however, revenues from Under traditional electric utility ratemaking principles, the revenues earned              this is a sig change
from unregulated activities are used , net of allocated costs, are often used tto reduce the cost of              Formatted: Font: 11 pt
regulated electric service. If the embedded distribution system cost of BPL is BPL is treated as                  Formatted: Font: 11 pt
absorbing a fully allocated share of electric distribution costs, some arguean strong argument can be             Formatted: Font: 11 pt, Not Highlight
made that any revenues that the utility deriveds from BPL probably should fall to the unregulated
                                                                                                                  Formatted: Font: 11 pt
side of the electric utility business and, without being not be used to offset or lower electric rates.
The allocation question becomes more complicated for utilities that also use the technology This
                                                                                                                  Formatted: Left, Right: -0.05", Border: Top:
                                                                                                                  (Single solid line, Gray-50%, 0.25 pt Line
capital gains – the difference between depreciated acquisition costs and sales prices – on any assets sold or     width), Tab stops: 6.25", Right + Not at 6"
otherwise transferred: the same would seem to apply to access transferred to an unregulated affiliated entity.”   Formatted: Font: 10 pt


January 2005 - DRAFT                                   34
BPL Report                                                                                      NARUC



alternative would, however, be subject to the considerations noted above regarding company use of
the technology for the benefit of the regulated electric utility business (as in “smart grid”
applications, remote meter readings), as well as for retail broadband service to customers (whose           Formatted: Font: 11 pt, Not Highlight
customers may may but are not necessarily in all cases also probably not identical to its electricity       Formatted: Font: 11 pt
customers). . Situations in which an electric utility’s BPL expenditures produce a combination of           Formatted: Font: 11 pt, Not Highlight
benefits in the form of both enhanced utility operations and additional communications revenues
                                                                                                            Formatted: Font: 11 pt
would call for even more difficult judgments. In that case, some suggest BPL costs couldmust be
carefully allocated to both regulated and unregulated functions, based on burdens and benefits.             Formatted: Font: 11 pt, Not Highlight
Regardless, costs must be somehow recorded in the system of accounts prior to judgments about               Formatted: Font: 11 pt
their allocation. the question remains of what portion of the BPL-related costs, if any, benefit            Formatted: Font: 11 pt, Not Highlight
unregulated or non-utility operations. Perhaps that portion is so incidental that the cost to separate it
                                                                                                            Formatted: Font: 11 pt
out is greater than the contribution it could make, but perhaps not. At any rate, the allocation issues
                                                                                                            Formatted: Font: 11 pt, Not Highlight
would be even harder to determine given this scenario.
                                                                                                            Formatted: Font: 11 pt
Various stakeholders have expressed views on cost allocation issuesin this policy area. EEI                 Comment [jab19]: removed – seems speculative
contendshas stated that utility the costs of of BPL to utilities costs may include labor, equipment,        Formatted: Font: 11 pt
management, and reasonable fees to ensure removal of the BPL system, if required. EEI also asserts
                                                                                                            Formatted: Font: 11 pt
thatIt states that:
                                                                                                            Comment [jab20]: Beecher added

            Costs incurred for the benefit of improving the operation of the electric system               Formatted: Font: 11 pt
             should be allocated to regulated customers just as any other electric system                   Formatted: Font: 11 pt
             investment would be allocated; and
            Remaining costs should be allocated to the BPL activity, and recovered from the
             activity or the provider.

The Power Line Communications Association (PLCA) suggestsstates that state State commissions
should:
                                                                                                            Formatted: Justified, Tab stops: 5.75", Left
                                                                                                            Formatted: Font: 11 pt, Not Highlight
            Require BPL affiliates to pay their share of fully loaded incremental costs of
             BPL deployment;                                                                                Formatted: Font: 11 pt
            Require a level playing field: DSL and cable modem only pay iincremental costs                 Formatted: Justified
             of POTS and cable television networks; and                                                     Comment [jab21]: again, precision
            Not to require BPL affiliates to bear any sunk costs in the existing electric                  Formatted: Font: 11 pt, Not Highlight
             network.
                                                                                                            Formatted: Font: 11 pt

The National Energy Marketers Association (NEMA) posed several questions regarding BPL costs                Formatted: Font: 11 pt, Not Highlight

allocations:                                                                                                Formatted: Font: 11 pt
                                                                                                            Formatted: Font: 11 pt, Not Highlight
            What specific costs are associated with using space for BPL?                                   Formatted: Font: 11 pt
            What other costs should fairly be allocated to the space used by BPL?                          Formatted: Font: 11 pt
            Should BPL customers pay twice for system maintenance or upgrades included
                                                                                                            Formatted: Font: 11 pt, Not Highlight
             in rate base?
            Who owns the unused space on power lines?                                                      Formatted: Font: 11 pt

            Who should receive revenues from the use of this space?                                        Formatted: Font: 11 pt, Not Highlight
                                                                                                            Formatted: Font: 11 pt
Some BPL providers and electric companies have argued that if regulators choose to impose limits            Formatted: Left, Right: -0.05", Border: Top:
on BPL revenue retentions, the earning potential , the return earned by of a company for providing          (Single solid line, Gray-50%, 0.25 pt Line
the service may not be sufficient to motivate investment. However, But many state States have code          width), Tab stops: 6.25", Right + Not at 6"
                                                                                                            Formatted: Font: 10 pt


January 2005 - DRAFT                               35
BPL Report                                                                                      NARUC



of conduct rules, methodologies, of practice, precedents, or statutes in place that necessitate some
type of fair allocation of costs and sharing of revenues.address fairness in cost allocation and revenue
sharing. The Task Force realizes that, as with other with any similar accounting or allocation issues,
a one-size-fits-all answer mayis not be suitable for all state States. However, the BPLThe Task
Force hopes plans a continued focus on this issue to spend more time hearing from interested parties
in the upcoming year so that a reasonable alternativesrecommendations can be offered for made for
individual state States to consider.

Affiliate Transactions

Another cost allocation issue A related issue related to cost allocation is concerns that of affiliate      Formatted: Justified
transactions. Generally, state State rules and/or law prohibit electric companies from cross-
subsidizing their non-regulated activities with monies collected from captive ratepayers. In all
probabilitylikelihood, this restriction would apply to BPL communications services as well. State
State regulators are rightly concerned about potential cross-subsidization issues, including the
unlikely possibility that captive electric ratepayers may be forced to subsidize a failing BPL business
though, inter alia, an increase in the cost of capital, to save the core utility as a whole.                Formatted: Font: 11 pt, Italic
                                                                                                            Formatted: Font: 11 pt
While cross-subsidization is a concern to captive ratepayers within the regulated electric utility, it is
                                                                                                            Formatted: Justified
also a major concern to competitors in the communications industry. When a company can subsidize
its competitive product or service, its behavior is behaves anti-competitive because it enjoys ly,
gaining an unreasonable advantage over competitors. If costs and revenues related to BPL are not
allocated properly, some one service will likely subsidize the other. Unless tangible benefits are
perceived to accrue fairly to all ratepayers, ratepayer groups advocates of all types willould likely
object, would oppose such an allocation, but competitors using different technologies willould
certainly point to a regulatory tilt in favor of the subsidized service. disadvantaged playing field as
well.

One approach to protecting ratepayers (and competition) is from this scenario is to require structural      Formatted: Justified
or functional separation between the regulated electric company and itsan affiliate BPL provider.
Structural separation could provide protection in the event of a catastrophe, but it does not avoid the
cost allocation work challenge described above (that is, the allocation of embedded or marginal costs       Formatted: Font: 11 pt, Not Highlight
to the respective services). . Cost and revenue allocation decisions would have to be made                  Formatted: Font: 11 pt
regardless.     Moreover, sStructural separation couldmay result in unnecessary duplication of
                                                                                                            Formatted: Font: 11 pt, Not Highlight
resources and defeat some of the other efficiencies that could otherwise be gained by electric
                                                                                                            Formatted: Font: 11 pt
companies providing BPL. Structural separation would most certainly add to the utility’s cost of
entering the market. market entry.

An alternative approach would be to impose a type of functional separation, via using appropriate
                                                                                                            Formatted: Font: 11 pt, Not Highlight
accounting rules, to delineate properfacilitate cost allocation and guard against cross-subsidization.
While traditional cost allocation and ratemaking methods allow for some forms of inter-class                Formatted: Font: 11 pt
subsidy. Participants in the regulatory process often disagree about whether the residential class is       Formatted: Font: 11 pt, Not Highlight
subsidized by the commercial and industrial classes, and whether such subsidies are justified.              Formatted: Font: 11 pt
However, subsidy of unregulated activities is not accepted. New protective accounting techniques in
                                                                                                            Formatted: Font: 11 pt, Not Highlight
this regard are ring-fencing and firewalls.    while keeping the cost of entry low. Traditionally, at
                                                                                                            Formatted: Font: 11 pt
least as argued by investor-owned utilities, monopoly residential service has always been subsidized,
either by similar business and commercial services, by unregulated services, or by both. In the             Formatted: Left, Right: -0.05", Border: Top:
                                                                                                            (Single solid line, Gray-50%, 0.25 pt Line
traditional regulatory world, subsidization is not a bad word, at least when the direction of the           width), Tab stops: 6.25", Right + Not at 6"
                                                                                                            Formatted: Font: 10 pt


January 2005 - DRAFT                               36
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subsidization is toward the residential ratepayer. Any subsidization the other way, however, is
strictly prohibited.                                                                                        Comment [jab22]: perhaps unintentional, but
                                                                                                            rhetorical and somewhat loaded and not entirely
                                                                                                            accurate
Regarding affiliate transactions, EEI has stated that:
                                                                                                            Formatted: Font: 11 pt

            A public utility commission’s review should be limited to review of the utility’s              Formatted: Font: 11 pt
             transactions alone;                                                                            Formatted: Justified
            Specific BPL regulations are counter-productive;
            All BPL providers, including affiliates, should be free to set rates and terms
             based upon market conditions; and
            Affiliate transaction rules should not prohibit using the “scope and scale” of the
             utility – including the use of the utility’s name.

Cinergy specifically points out that in its wholly-owned subsidiary, in Ohio, The Cincinnati Gas &          Formatted: Justified
Electric Company (CG&E), provides access to its electric distribution network to has a joint venture        Formatted: Font: 11 pt
betweenwith Current and another Cinergy subsidiary, Cinergy Broadband. This venture, which                  Formatted: Font: 11 pt
operates under Current’s name, is an unregulated broadband provider. as the unregulated entity
                                                                                                            Formatted: Font: 11 pt
providing that provides the broadband service. Through the arrangement, Current utilizes few
CG&E assets and pays the legally required rate for those that it does use. As a general rule, Current
does not rely on the utility for other assets or services. For example, the customer- care operations of
CG&E (billing, credit, collection, and call centers) are not used forby BPL operations. In addition,
Current uses CG&E-approved contractors, retained and paid for directly by Current, , such as line           Formatted: Font: 11 pt
crews, rather than CG&E line crews. Similarly, when CG&E employees provide other services to
Current, such as by assisting in safety evaluations of BPL equipment designs, CG&E employees
keep track of their time using accounting codes that cause their work to be billedused to bill to the
joint venture at CG&E’s fully allocated cost. Finally, Cinergy states notes that any affiliate
requirements established by the Public Utility Commission of Ohio pertain to its BPL deployment in
the same manner as it is applied to any other non-regulated affiliate of Cinergy.

The Task Force has found noted that Iin many of the current deployments of BPL, currently taking            Formatted: Right: -0.05"
place, electric utilities have sought to structure their business relationships with non-affiliated BPL
providers through arm’s-length contractual relationships. A good example of this type of
arrangement is Consumers Energy Company, which is planning a BPL deployment in Grand Ledge,
Michigan. Gerald D. Wyse, an engineer with the company, observed:

        “We have no intention of getting into the communications business, but we are                       Formatted: Right: 0.58"
        going to be a landlord for communications companies. Our own business will
        remain that of an electric utility, with poles and wires. Because our relationship
        with communications providers will be entirely at arm's length, we foresee no
        affiliate transaction issues.”
                                                                                                            Formatted: Font: 11 pt
If this trend become the norm, many , if not most , of the affiliate transaction issues could become        Formatted: Justified
moot, as the utilities collect negotiated rents for using their facilities and free their BPL partners to
market broadband service and manage retail broadband relationships. This idea also lends credence
to the many electric companies that have clearly stated that they intend to continue to focus first and
foremost on their electricity operations. Deployment is not extensive at this point, and there has
                                                                                                            Formatted: Left, Right: -0.05", Border: Top:
been but no evidence has emerged to suggest that that the electric companies are profiting unfairly at      (Single solid line, Gray-50%, 0.25 pt Line
ratepayers’ expense.                                                                                        width), Tab stops: 6.25", Right + Not at 6"
                                                                                                            Formatted: Font: 10 pt


January 2005 - DRAFT                               37
BPL Report                                                                                       NARUC



This will remainbe an one issue, though, that state State policy makersregulators will want to
continue to monitorexamineing and, , where appropriatenecessary and possible, to set up clear                Formatted: Font: 11 pt
requirementscommunicate clear expectations and policies to for all investor-owned utilities and BPL
participants.

Easements and Rights-of-Way
                                                                                                             Formatted: Tab stops: 2.59", Left
The Task Force did not hear much a lot of concern on behalf of providers or electric companies               Formatted: Font: 11 pt
regarding problems with easements and rights-of-way, although all parties seem to agree that these
                                                                                                             Formatted: Justified
remain fundamental issues—especially s mostly for new competitors coming intoentering local
areas. Perhaps due to the fact that almost all of the small-scale BPL deployments involve
commercially-negotiated agreements, this issue has not been as controversial as it has become for
competitiorsve providingers using other types of broadband access.

EEI has suggested that local jurisdictions may see BPL as an opportunity to increase rights-of-way or
franchise fees for electric service, even though there are no significant additional impacts on land use
due to BPL deployment. According to EEI, bBecause BPL piggybacks on existing electric wires and
facilities, the argument that it should be free of additional or cumulative franchise or right-of-way
obligations has even moresome force. EEI suggests that stateStates may want to consider
establishing state State-wide limits on additional fees and service regulations. Michigan’s 20020
broadband law established such standardized, limited, state State-wide fees for all broadband
providers that can not be increased at the local level through its new broadband laws in 2000.28 See         Formatted: Font: 11 pt
Mich. Comp. Laws § 484.3101 et seq. The Task Force plans further scrutiny of right-of-wayROW                 Formatted: Font: 11 pt
issues going forwardwill want to look more in-depth at this issue in depth, however, and may wish to
provide additional observations concerning possible best practices.recommendations where helpful             Formatted: Justified
and appropriate.                                                                                             Formatted: Font: 11 pt
                                                                                                             Formatted: Font: 11 pt
Pole Attachments
                                                                                                             Formatted: Justified
Many interested parties commented to the Task Force regarding about pole attachments. Yet theThe             Formatted: Font: 10 pt
Task Force believes finds that this is yet another area where state State commissions already have in        Formatted: Left
place practices and procedures that should be adequate to address any disputes caused by a BPL               Formatted: Font: 10 pt
deployment.29
                                                                                                             Formatted: Font: 10 pt, Italic

By and large, if an electric utility provides pole access to affiliates, including a BPL provider, it must   Formatted: Font: 10 pt
provide similar access to its utility poles to other requesters under uniform rates, terms, and              Formatted: Font: 10 pt, Underline
conditions. Providing such access will carry with it costs that theoretically should be paid by those        Formatted: Font: Not Italic, Underline
requesting access. Regulators must be careful to assure that these costs caused by a competitor’s
                                                                                                             Formatted: Underline
access are not paid by either captive electric ratepayers. or BPL customers.
                                                                                                             Formatted: Font: Not Italic, Underline

Yet the issue of an attachment to an electric pole and the potential to , affecting crucial electricity      Formatted: Underline
service, adds a layer of sensitivity and complication perhaps greater than that with                         Formatted: Font: 10 pt, Underline
telecommunication and cable interconnections. Many commentators have noted that an electric                  Formatted: Underline
utility’s primary responsibility is safe, reliable, and efficient delivery of power. Attachment issues
                                                                                                             Formatted: Font: 10 pt, Underline
                                                                                                             Formatted: Font: 10 pt
28
        See Mich. Comp. Laws § 484.3101 et seq.                                                              Formatted: Left, Right: -0.05", Border: Top:
29
        See generally, “Pole Attachments: White Paper by an Ad Hoc Group of the 706 Federal/State Joint      (Single solid line, Gray-50%, 0.25 pt Line
Conference on Advanced Services” ( NARUC July 2001)                                                          width), Tab stops: 6.25", Right + Not at 6"
                                                                                                             Formatted: Font: 10 pt


January 2005 - DRAFT                               38
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presented by the provisioning of BPL should not in no way compromise an electric utility’s delivery
of electricity in any way. As Charles A. Zielinski, former chairman of the New York State Public
Service Commission, recently stated:

        “Section 224 of the Communications Act protects this policy. It grants only a
        conditional right of access to an electric utility’s ‘poles, ducts, conduits, and rights-
        of-way’ for the facilities of cable television systems and telecommunications service
        providers, which electric utilities historically have accommodated. It properly
        permits an electric utility to deny access ‘where there is insufficient capacity and for
        reasons of safety, reliability and generally applicable engineering purposes.’ It
        grants no right of access for the attachment of BPL facilities to an electric utility’s
        distribution lines. Thus, BPL developers initially need to satisfy electric utilities and           Formatted: Font: 11 pt
        their regulators that BPL systems will not compromise the safety and reliability of
        electric power distribution.”30                                                                     Formatted: Font: 11 pt
                                                                                                            Formatted: Font: 11 pt
EEI has suggested that pole- attachment arrangements and fees should be the result of a market-
based decision between willing buyers and sellers, further urging that . It urges that pole attachment
fee regulation should be avoided.

NEMA has asked whether the utilities should be able to charge non-approved rates for access, and
has questioned whether or not there should be uniform pole attachment formulas.

Cinergy states that Ohio, like many other jurisdictions, already has in place pole- attachment (and         Formatted: Justified
conduit) fees to govern use of poles by phone and cable companies. Therefore, Current obtains pole
attachments at tariffed rates, and on nondiscriminatory terms and conditions; obtains conduit and
collocation space on the same terms CG&E make available to other requesters;, and pays for power
to run its BPL network devices at tariffed rates.

And the PLCA has stated suggests that state State regulators:

            Should require BPL affiliates providing telecom services to pay telecom pole
             attachment fees for installations outside the electric space; but
            Should NOT require BPL affiliates to pay pole attachment fees for installations
             inside the electric space.

The Task Force will continue to examinelook more in-depth to themore closely issues ofat the pole-
attachment issues associated with BPL s and the related topic of provider access, discussed below,
during the upcoming year. The Task Force seeks to ensure that pole attachments are allowed , where
feasible and appropriate , and that the commensurate rates do not become an undue barrier to entry
for new BPL providers.




Provider Access
                                                                                                            Formatted: Left, Right: -0.05", Border: Top:
                                                                                                            (Single solid line, Gray-50%, 0.25 pt Line
30
          Charles A. Zielinski, “Barriers to Entry: The Fight Against Power-Line Communications,” Public    width), Tab stops: 6.25", Right + Not at 6"
Utilities Fortnightly. December, 2004, pp. 19-20.                                                           Formatted: Font: 10 pt


January 2005 - DRAFT                                 39
BPL Report                                                                                      NARUC




The broader concept implicated by the pole attachment issue is that of making reasonable access             Formatted: Justified
available , in general, to all who want it and are willing to pay for it. Put in a BPL context, the
access question is whether any and every provider seeking to use an electric utility’s wires for BPL-
based communications service should be entitled to get it.

Many have touted BPL as the crucial third-wire facilities-based option for what can be accurately
described as a wireline duopoly in broadband. The other current players arethe last mile broadband ,
the other two being Digital Subscriber LineSL service provided by local phone companies and
cable-modem access. Many argue that existing wireless and satellite broadband technologies,
because of their inherent price and technical limitations, do not provide significant competitive
pressures in broadband service markets. But, however the market is defined, BPL clearly thus has            Formatted: Font: 11 pt, Italic
the real potential to significantly enhance competition for broadband services.help of turning an           Formatted: Font: 11 pt
otherwise “duopoly” broadband market existing in many places today into a workably real,
competitive marketplace in terms of broadband options.

In theory, all technologiesthree options should be regulated equally, allowing an level equal playing       Formatted: Justified
field on which the various the three alternatives can technologies could compete fairly with each
other. Given that DSL and cable modem services Since the original two alternatives are currently
not subject to the same degree of regulatory oversight,regulated equally today, it may not seem to
matter which course is taken with the BPL alternative. But of course, variations in the degreethe
differential application of regulation will always matters. The rules that apply will invariably it
does matter (just as it does betw een DSL and cable), because the consequences of each of the
alternative regulatory schemesin terms of its impact on the availability of a the technology, the price     Formatted: Font: 11 pt, Not Highlight
and terms of service, the usefulness, and how well the technology competes.                                 Formatted: Font: 11 pt
                                                                                                            Formatted: Font: 11 pt, Not Highlight
Because it is a nascentAs befits a new technology, regulation of BPL could follow the hands-off
                                                                                                            Formatted: Font: 11 pt
regulatory approach currently applied to cable. At least in the near term,; , and providers of BPL
would not be obliged to provide nondiscriminatory network access to their physical networks to              Formatted: Justified
competitors. This would level the playing field between cable and BPL, but still leave the incumbent
telecommunications providers subject to the regulatory burdens of access-related obligations
imposed by federal regulation. The FCC’s recent actions in relieving incumbents from physical
access requirements foropen- access obligations for “fiber to the premisesprices” evidences a               Formatted: Font: 11 pt, Not Highlight
significant retreat from this federal policy. Overlapping the problems associated with those that           Formatted: Font: 11 pt
want physical access to a carrier’s facilities is effective customer access to providers of information
services that are not affiliated with the BPL provider.

Some argue that an unevenlevel playing field is acceptable, in that requiring open access is
appropriate with existing sunk investment, but not for prospective investment by would-be
competitors. Unfortunately, while this argument might apply to new broadband infrastructure, it is
less applicable to an electric utility with existing distribution plant. An alternative approach, perhaps
more justifiableacceptable because new entrants need not given the entry of a third-wire alternative
that need not completely build out new plant, would be to free all providers from open- access
obligations. Obviously, sSuch a course of action should not be taken without an examination of the
impactefforts of removing those obligationse protecti on customer choice.on for customers. This
appears to be one of the key regulatory issues facing Congressional leaders in the upcoming rewrite
of the federal Telecommunications Act. rewrite.                                                             Formatted: Left, Right: -0.05", Border: Top:
                                                                                                            (Single solid line, Gray-50%, 0.25 pt Line
                                                                                                            width), Tab stops: 6.25", Right + Not at 6"
                                                                                                            Formatted: Font: 10 pt


January 2005 - DRAFT                               40
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NEMA has argued for mandatory open access controlled by FERC jurisdiction.                          Regarding
technology-on-technology based competition, the associationit asks:

            Will the fastest, best, and lowest cost provider to win?
            Are utilities the best innovators of Internet protocol technology?
            Can utilities maximize revenues by maximizing competition?
            Is there a limit to the number of competitors on one line?
            Can advanced technology increase the number of competitors?

EEI has stated that access to the electric system should be negotiated between willing participants:

            Electric utilities do not have market power over broadband services;
            BPL is a nascent technology which will currently not support multiple BPL
             technologies operating on the same distribution line;
            Mandatory access should not be required at the expense of the safety and
             reliability of the electric system;
            Attempts to impose mandatory access requirements, if successful, may conflict
             with utility plans to integrate BPL or other communications technology with
             their electric system operation;
            Mandatory access regulations would not apply to most co-ops and municipal
             utilities – excluding 25-30% of the population; and
            Mandatory access requirements would require burdensome regulatory action on
             terms and costs – and could lead to under-recovery of electric or BPL costs
             recovered from electric service customers.

Charles Zielinski has argued against open access requirements of government-mandated
standardization constraints, such as standard nonproprietary protocols (e.g., TCP/IP):, stating:

        “…BPL platforms with proprietary protocols and designs different from those                             Formatted: Font: 11 pt
        employed by cable and telephone companies may facilitate new applications, such
        as the automated load controls in which electric utilities are interested. Thus, if the                 Formatted: Font: 11 pt
        policy goal is to encourage economic broadband transport platform entry, regulators                     Formatted: Font: 11 pt
        should support flexible, creative designs, and should not mandate standardization.” 31                  Formatted: Font: 11 pt, Italic
                                                                                                                Formatted: Font: 11 pt
Interestingly, unlike traditional telecommunications and electric competitors, most BPL providers at
this stage of development are NOT not requesting any form of open or /mandatory access. They                    Formatted: Font: 11 pt
state that the The technology is nascent, they say, and , unlike other advanced telecommunications              Formatted: Font: 11 pt
services, there are simply not multiple providers are simply not interested in the same pole at this            Formatted: Font: 11 pt, Not Highlight
time. For the moment, most also agree that the technology to accommodate multiple providers of                  Formatted: Font: 11 pt
BPL service, each maintaining their own adaptive equipment on a single set of electric wires, does
                                                                                                                Formatted: Font: 11 pt, Not Highlight
not exist. As a practical matter, this assessment, if true, makes provider access appears to be a
hypothetical issue for now,.32 but on Howevee that r, regulators and the Task Force will need to                Formatted: Font: 11 pt
watch. As referenced earlier, iIn addition to physical access, another important dimension of this              Formatted: Font: Italic
                                                                                                                Formatted: Left, Right: -0.05", Border: Top:
31
          Charles A. Zielinski, supra, p 20.                                                                    (Single solid line, Gray-50%, 0.25 pt Line
32
  It also would not prohibit a single BPL provider operating on an electric grid from allowing multiple ISP     width), Tab stops: 6.25", Right + Not at 6"
providers to use its broadband signal to offer retail broadband access.                                         Formatted: Font: 10 pt


January 2005 - DRAFT                                  41
BPL Report                                                                                      NARUC



issue is customer access to multiple internet service providers (ISPs) over the broadband network.          Formatted: Font: 11 pt, Highlight
should watch this issue.                                                                                    Comment [jab23]: see Don Jones
                                                                                                            Formatted: Font: 11 pt, Highlight
At this juncture, the Task Force does notis seem not inclined to addressrespond to some of the ward
                                                                                                            Formatted: Font: 11 pt, Highlight
the open access arguments further. espoused. The Task Force was particularly impressed with the
sensitivity of the electric pole space from a reliability standpoint. Furthermore, and, as the BPL          Formatted: Font: 11 pt
providers point out, there simply is not the demand yetdemand for access is not sufficient to that
would engender a fuller discussion on the issue. Some members of the Task Force have expressed              Formatted: Font: 11 pt, Not Highlight
concerns about were cautious, though, as to not create a system that foreclosinges regulatory               Formatted: Font: 11 pt
oversight of potentially anti-competitive behavior. At this stage of BPL’s evolutionpoint, however,         Comment [jab24]: see Schriber
it appears as ifthat commercial negotiations are taking place in a competitively-neutral manner that
                                                                                                            Formatted: Font: 11 pt
satisfies the key BPL providers, as well as regulated electric utilities and their state respective State
regulators. and the regulators in their states.                                                             Formatted: Font: 11 pt


Licensing and Telephone Legacy Regulation

The most obvious additional obligation that could be imposed by regulators on BPL providers is a            Formatted: Justified
requirement to obtain regulatory permission prior to entering the BPL business. Traditional tools for
regulating market entry include registration, licensure, or even the issuance of certificates of            Formatted: Font: 11 pt, Not Highlight
convenience and necessity. Conceivably, all of the same telecommunications considerations                   Formatted: Font: 11 pt
currently applicable to VoIP and Internet issues generally would apply to BPL. Theoretically, these         Comment [jab25]: added
range from whether tono requirerequirement by government for entry permission to enter the market
                                                                                                            Formatted: Font: 11 pt
tto full government economic regulation by the government.. The Task Force finds that Likewise,
the pros and cons of each also apply. The answers to these questionsentry requirements for                  Formatted: Font: 11 pt
broadband providers should be consistent among across providers and should not depend on the                Formatted: Font: 11 pt, Not Highlight
underlying technology.                                                                                      Formatted: Font: 11 pt
                                                                                                            Formatted: Font: 11 pt, Not Highlight
USF
                                                                                                            Formatted: Font: 11 pt

Another regulatory issue facing concernBPL and impacting affecting theits deployment of BPL, and            Comment [jab26]: Is this right???
broadband services in generally, is the issue of whether providers of BPL should pay into the federal       Formatted: Font: 11 pt
Universal Service Fund (USF), and any similar state State fund. TelepPhone companies that pay into          Formatted: Font: 11 pt
these funds argue that such an obligation puts them at a competitive disadvantage. Alternative point-
                                                                                                            Formatted: Justified
to-point voice service providers using , such as those offering VoIP, that do notdo not haveare not
required to currently pay into these funds. They argue that relief from such an obligation is
necessary to provide them a needed opportunity toin order for them to gain a competitive foothold in
the business. Regulators will have to choose on which side of the USF issue they fall.The
issuechoice is a challenging one for policymakers and regulators. Among the factors to consider:
(1)One consideration is the degree to which requiring contributions to a state State and/or federal
USF imposes a barrier to entry for potential BPL providers; and (2). Another consideration is t the
fact that broadband service is not currently funded through the federal high- cost fund. Some argue
that , if and when broadband becomes eligible for such funding, then it may, it is, that wcould be an
appropriate time to impose a requirement on BPL providers to contribute to a fund as they may also
then be able to directly benefit from the program. from which they will also benefit. In all
                                                                                                            Formatted: Left
probability, this issue will be one that the FCC and Congress closely examine in terms of the overall
                                                                                                            Formatted: Left
USF debate during this coming Congressional Session. over the future of the USF.
                                                                                                            Formatted: Left, Right: -0.05", Border: Top:
                                                                                                            (Single solid line, Gray-50%, 0.25 pt Line
                                                                                                            width), Tab stops: 6.25", Right + Not at 6"
                                                                                                            Formatted: Font: 10 pt


January 2005 - DRAFT                               42
BPL Report                                                                                      NARUC




VI. GENERAL CONSIDERATIONS AND CONCLUSIONS                                                              Formatted: Font: 15 pt
                                                                                                        Formatted: Font: 15 pt, Bold, Small caps
Looking ahead, John J. Joyce, President and CEO of Ambient Corporation, predicted:                      Formatted: Font: 11 pt


       “2005 is shaping up to be a pivotal year for [power line communications (PLC) and
       BPL]. It will ultimately be the marketplace that will determine the success or failure
       of this technology. If the state regulatory environment encourages deployment of
       PLC/BPL in order to enhance utility operational capabilities, including better
       management of their assets, as well as supports new product offerings to utility
       customers, then significant commercial deployments in 2005 should be a reality.”
                                                                                                        Formatted: Font: 11 pt
                                                                                                        Formatted: Left




                                                                                                        Formatted: Left, Right: -0.05", Border: Top:
                                                                                                        (Single solid line, Gray-50%, 0.25 pt Line
                                                                                                        width), Tab stops: 6.25", Right + Not at 6"
                                                                                                        Formatted: Font: 10 pt


January 2005 - DRAFT                            43
BPL Report                                                                                    NARUC



VI.

                     GENERAL CONSIDERATIONS AND CONCLUSION


The potential benefits of BPL are certainly manifest.. From a reliability, systems operation,             Formatted: Justified
management, and competitive offering perspective, the technology appears promising. holds great
promise. As in so many areas, tThe regulatory environment in general and BPL-related regulatory           Comment [jab27]: tone
decisions involving the issues addressed above will impactwill affect the degree of interest and          Formatted                                      ...
motivation of electric utilities and BPL providers in deploying and the BPL players and electric
companies have in advanciadvancing tng heand deploying the technology. Regulatory uncertainty
remains a concern for all involved.                                                                       Comment [jab28]: Beecher added
                                                                                                          Formatted                                      ...
In any sector of any industry, regulatory policy should be clearly defined, fair, and reasonably
predictable and clearly defined. Investment, business, and consumer decisions are made based on
known informed estimates and projections. While perhaps impossible to have clearly defined rules
and policies to satisfy all industry players and consumers, state State commissions strive to do their
part to determine complex and controversial issues in a manner that both facilitates technological
advancements and protectprotects the interests of core customersratepayer interests. Well deployed,       Formatted                                      ...
BPL presents a unique opportunity to do both.

Over the coming year, Perhaps regulators should adopt a stance of carefully monitoring BPL to see
how (and if) it does deliver on its enormous promise. In any event, a light-handed approach is
usually in order with respect to nascent technologies; prescribing an anticipatory form of regulation
would presume that we can know how a technology will develop and how markets will respond.
Instead, our presumption has been one of minimizing regulation, absent any actual or imminent
market failure or other threat to the public interest. In the meantime, wthe Task Force will continue
to monitore expects to watch and wait on BPL’s progress in , technology innovation,                       Formatted                                      ...
security/reliability concerns, and regulatory oversight. all the time observing, learning, and engaging
in co ntinuous dialogue with industry stakeholders and customers, as we look to optimize the
benefits of the technology for the public. The Task Force plans to continue to explore regulatory
policy issues, as well as to spend more time in 2005 examining, in particular, the issue of rural
deployment of BPL.
The Task Force recommends State commissioners take the time now to learn more about BPL                   Formatted: Font: (Default) Times New Roman,
technology. Policy makers will want to want monitor BPL to see whether and how it actually                11 pt
delivers on its many promises. States with BPL trials or small commercial deployments are                 Formatted: Justified, Don't adjust space
encouraged to remain vigilant in their oversight of the offering and to share their observations with     between Latin and Asian text, Don't adjust
                                                                                                          space between Asian text and numbers
the Task Force.
It is theThe Task Force’s recommendsation , at this early juncture, that state commissioners take the     Formatted                                      ...
time to learn more about thisBPL fascinating technology. Regulators will want to want monitor BPL         Formatted                                      ...
to see whether and how it actually delivers on its many promises. For those states that have BPL
trials or small commercial deployments, we urge commissions are encouraged to remain vigilant in
                                                                                                          Formatted                                      ...
their oversight of the offering, and to share their observations with the Task Force.
                                                                                                          Comment [jab29]: This is a new meaning. See
                                                                                                          Don Jones
Prescribing an anticipatory form of regulation could presume that we can know how technologies
                                                                                                          Formatted                                      ...
and markets will evolve. Regulators also want to avoid favoring any technology over others and
thereby distorting the market or impeding innovation. Absent any actual or imminent market failure        Formatted: Left, Right: -0.05", Border: Top:
                                                                                                          (Single solid line, Gray-50%, 0.25 pt Line
or other threat to the public interest, however, economic regulation can be minimally intrusive. For      width), Tab stops: 6.25", Right + Not at 6"
BPL, the Task Force suggests but to take a light-handed approach to regulation and the resolution of
                                                                                                          Formatted: Font: 10 pt


January 2005 - DRAFT                              44
BPL Report                                                                                   NARUC



the regulatory issues cited above, as seems appropriate for this nascent but potentially beneficial     Formatted: Font: 11 pt
technology. some of the historic regulatory issues discussed above so as not to impede its growing      Formatted: Font: 11 pt, Not Highlight
potential. The Task Force hopes to spend more time in 2005 examining, in particular, the issue of       Comment [jab30]: Rewritten -- Please read
rural deployment of BPL.                                                                                carefully!!!!
Prescribing an anticipatory form of regulation could presume that we can know how technologies          Formatted: Font: 11 pt, Highlight
and markets will evolve. Regulators also want to avoid favoring any technology over others and
                                                                                                        Formatted: Font: 11 pt
thereby distorting the market or impeding innovation. Absent any actual or imminent market failure
or other threat to the public interest, however, oversight can be minimally intrusive. For BPL, the     Formatted: Font: (Default) Times New Roman,
                                                                                                        11 pt
Task Force suggests a light-handed approach to regulation with a longer term focus on resolution of
the regulatory issues cited above.

In 2005, the Task Force will remain engaged with industry stakeholders and customers, as we look to
optimize the benefits of the technology for the public. The Task Force plans to continue to explore
regulatory policy issues, as well as to spend more time in 2005 examining rural pilots. Specifically,
we expect to:

(1)     Continue to monitor the ongoing pilot programs and commercial deployments;
(2)     Focus on emerging regulatory issues with an eye towards formulating a best practices guide      Formatted: Indent: Left: 0", Hanging: 0.5"
        for State regulators and providing updated surveys on State and industry activity;              Formatted: Font: 11 pt
(3)     Scrutinize rural BPL deployments with a particular emphasis on any emerging technologies        Formatted: Font: (Default) Times New Roman,
        and circumstances that can facilitate rollout                                                   11 pt
                                                                                                        Formatted: Font: 11 pt
If you have surveys, white papers, studies, or technology overviews you believe may be of use to the
                                                                                                        Formatted: Font: (Default) Times New Roman,
Task force in 2005, please send an e-mail to NARUC’s General Counsel, Brad Ramsay at                    11 pt
jramsay@naruc.org.
                                                                                                        Formatted: Font: (Default) Times New Roman
                                                                                                        Formatted: Font: 11 pt
                                                                                                        Formatted: Font: (Default) Times New Roman
                                                                                                        Formatted: Font: 11 pt
                                                                                                        Formatted: Font: (Default) Times New Roman,
                                                                                                        12 pt




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                                                                                                        width), Tab stops: 6.25", Right + Not at 6"
                                                                                                        Formatted: Font: 10 pt


January 2005 - DRAFT                             45
BPL Report                 NARUC



                                   Formatted: Centered
                                   Formatted: Left: 1.15", Right: 1.15", Top:
                                   1.15", Bottom: 1.15", Footer distance from
                                   edge: 0.75"




                                   Formatted: Left, Right: -0.05", Border: Top:
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                                   width), Tab stops: 6.25", Right + Not at 6"
                                   Formatted: Font: 10 pt


January 2005 - DRAFT   1
BPL Report                                                                                     NARUC


                                                                                                           Formatted: Centered, Right: 0", Border:
                          APPENDIX A:                                                                      Bottom: (No border)
             CHRONOLOGY OF BPL TASK FORCE ACTIVITIES                                                       Formatted: Left: 1.15", Right: 1.15", Bottom:
                                                                                                            1"

APPENDIX A                                                                                                 Formatted: Font: 11 pt
                                                                                                           Formatted: Justified
                                                                                                           Formatted: Justified, Indent: First line: 0"
This appendix provides a brief chronology of the NARUC BPL Task Force’s activities during 2004,
                                                                                                           Formatted: Justified
with a focus on presentations made by experts and representatives of interest groups. (Unless
otherwise noted, dates refer to meetings conducted by teleconference.)

January 26, 2004. Brett Kilbourne, Director of Regulatory Services and Associate Counsel for the
United PowerLine Council (UPLC) made a presentation. (The UPLC is a trade group that
represents utilities and providers interested in BPL.) Mr. Kilbourne provided an overview of BPL’s
deployment to date in the United State States and identified relevant public policy and regulatory
issues.

February 23. Alan Stillwell, Associate Chief, Office of Engineering and Technology, Federal
Communications Commission (FCC), provided an update on the FCC’s issuance of a notice of
proposed rulemaking to add BPL-specific requirements to its existing Part 15 rules.33 James                Formatted: Font: 11 pt
Bradford Ramsay, NARUC’s General Counsel, provided a regulatory commentary on BPL.                         Formatted: Font: 11 pt
[PLEASE CHECK THIS INFO; I DID NOT PARTICIPATE IN THIS CALL.]

March 15. Allen Todd, Director of Utilities for the City of Manassas, Virginia, described the city’s
pilot project and its decision to offer broadband service via BPL on a commercial basis to all of its
municipal electric customers. He discussed the options electric utilities have for contracting out the
provision of BPL service to other partners and explained that Manassas had opted for a “developer
model;” i.e., it installs the devices necessary to provide BPL service over its electric facilities, but   Formatted: Font: 11 pt, Italic
contracts all aspects of the retail relationship with BPL customers to a partnering entity in exchange     Formatted: Font: 11 pt
for a share of the revenues. He said that Manassas’s business decision to deploy BPL rested on its
enhancements to the operation of its electric system, e.g., improved capabilities for monitoring the
location of outages, and that the revenues it collected from communications services were a side
benefit.

Also on March 15, 2004, Steve Greene, Director of Utility Relations and Regulatory Affairs,
Amperion, Inc., and Angel Cartagena, Jr., President of Cartagena & Associates, LLP, (and former
Chairman of the District of Columbia Public Service Commission), made presentations. Mr. Greene
provided an overview of the BPL industry in general and of Amperion’s own activities. Mr.
Cartagena summarized his article, “Broadband over Powerlines,” Electric Perspectives (March/April
2004), which surveys the regulatory issues that BPL is likely to raise.

April 15. The presentations focused on the security implications of BPL. Presenters were Erich W.
Gunther, Chairman and Chief Technology Officer of EnerNex Corporation, and Jeff Pillon,
supervisor of the Energy Data, Security & Market Monitoring Section of the Michigan Public
Service Commission’s Competitive Energy Division. Mr. Gunther, an expert in security issues
raised by new or emerging technologies, discussed BPL’s security vulnerabilities and possible


33
  See Carrier Current Systems, including Broadband over Power Line Systems, ET Docket No. 03-104;
Amendment of Part 15 regarding new requirements and measurement guidelines for Access Broadband over       Formatted: Font: 10 pt
Power Line Systems, ET Docket No. 04-37 (Feb. 23, 2004), noticed at 69 Fed. Reg. 12612.                    Formatted: Font: 10 pt



                                                3
                                           Appendix A - 1
BPL Report                                                                                   NARUC


solutions. Mr. Pillon talked about BPL as an enabling technology for the intelligent grid that
promises future enhanced capabilities.

April 29. Jay Birnbaum, Vice President & General Counsel, Current Communications Group,
LLC (Current), provided an overview of Current’s plans to deploy BPL, particularly in the area of
Cincinnati, OhioPotomac, Maryland.                                                                       Formatted: Font: 11 pt

                                                                                                         Formatted: Font: 10 pt
Each Task Force working subgroup began to draft its paper discussing its subject area (technology,       Formatted: Font: 11 pt
security, and regulatory). In August of 2004, two of the papers were posted on NARUC’s website
(www.naruc.org).                                                                                         Formatted: Font: 11 pt
                                                                                                         Formatted: Font: 11 pt
July 13. At a General Session of NARUC’s Summer Committee meetings in Salt Lake City, Utah,
the Hon. Laura Chappelle, Task Force Chair, moderated a panel discussion on BPL, which the
Hon. Denise A. Bode, another Task Force member, participated as a panelist. Lead presenters were
the Hon. Kathleen Q. Abernathy of the Federal Communications Commission (FCC) and the
Hon. Nora Mead Brownell of the Federal Energy Regulatory Commission (FERC), who
provided a federal perspective supportive of the development of BPL. Commissioner Bode provided
a technological perspective based on the work product of the Task Force’s technology working
group (for which much credit must go to Steve Wilt of the Oklahoma Corporation Commission
Staff). Jay Birnbaum of Current and Richard Keck, an attorney with Troutman Sanders LLP,
speaking as General Co-Counsel for the Power Line Communications Association (PLCA, a trade
association of electric utilities interested in BPL deployment) represented the perspective of the BPL
industry, advocating for regulatory policies that would promote deployment. John Hewa, Assistant
Electric Director of the City of Manassas, provided a municipal utility’s perspective.

July 29. Howard Scarboro, President and CEO, and Gregory J. Kelly, Member Services &
Business Development Manager, both of Central Virginia Electric Cooperative, made a
presentation describing their cooperative’s introduction of BPL service. Their presentation was of
interest in part because it spoke to the potential for BPL to provide service in rural areas. Craig G.
Goodman, President of National Energy Marketers Association (NEMA), began a presentation
regarding technological advances and innovations that promise to carry BPL beyond its current
applications as a means of enhancing the provision of electric service.

August 23. Mr. Goodman completed his presentation that was truncated during the July 29, 2004
conference call. He urged the FERC to take a hard look at the jurisdictional issues posed by BPL.
Barry Goodstadt of WirthlinWorldwide, a marketing research firm, and Llew Davies of Davies
Associates Incorporated, a management consulting firm, detailed factors that would make a
business case for investing in BPL deployment.

September 16. Presenters were William J. Grealis, Executive Vice President, Cinergy Corp.;
Gerald D. Wyse, Manager of Distribution System Planning & Performance – West, Consumers
Energy Company (Consumers); and Mike McGGrath, Executive Director, Retail Energy Services,               Formatted: Font: 11 pt, Not Bold
Edison Electric Institute (EEI). Mr. Grealis explained the business and regulatory thinking behind       Formatted: Font: Not Bold
Cinergy’s decision to form a partnership with Current to roll out broadband service to electric          Formatted: Font: 11 pt, Not Bold
customers in the greater Cincinnati area. (To date, the Cinergy/Current partnership accounts for the
                                                                                                         Formatted: Font: 11 pt
single largest number of retail customers subscribing to BPL service.) Mr. Wyse explained
Consumers’ approach to partnering with a communications provider in starting a pilot program in a
portion of its electric service territory encompassing Grand Ledge, Michigan. Mr. McGrath
discussed EEI’s concerns regarding regulatory policies that would provide incentives for its             Formatted: Font: 10 pt
membership of investor-owned electric utilities to undertake BPL ventures.
                                                                                                         Formatted: Font: 10 pt



                                               3
                                          Appendix A - 2
BPL Report                                                                                     NARUC



October 24. The Task Force convened its only in-person meeting to date, in Arlington, Virginia,
immediately prior to the NARUC/NECA National Summit on Broadband Deployment III.
Commissioner Chappelle opened the meeting and introduced Bruce Franca, Deputy Chief of the
FCC’s Office of Engineering and Technology, and David Tobenkin, Attorney-Advisor of the
FERC’s Office of Market Oversight & Investigations, to provide a perspective on the FCC’s Part 15
rulemaking decision and the joint FCC/FERC statement regarding BPL, both announced on October              Formatted: Font: 11 pt
14, 2004. NARUC’s Brad Ramsay provided an overview of the regulatory approaches confronting                Formatted: Font: 11 pt, Bold
the Task Force.                                                                                            Formatted: Font: 11 pt

The Task Force also heard from a diverse array of panelists during its Arlington meeting. Paul
Rinaldo, the Chief Technology Officer of the American Radio Relay League (ARRL), provided a
cautionary note regarding radio frequency interference. He noted that those concerns go both ways:
just as interference caused by BPL can impair other unlicensed uses of spectrum, e.g., ham radio,
those uses can also interfere with BPL’s functionality. Craig Goodman of NEMA urged the Task
Force not to foreclose the possibility that BPL systems could, with technological advances,
accommodate multiple broadband providers in an open access regime. The UPLC’s Brett Kilbourne
reminded the Task Force that the response of state State regulators would be a critical determinant
affecting whether BPL will become commercially successful. Richard Keck urged state States to be
pro-active in encouraging BPL and to ensure a level playing field for BPL to compete with other
broadband technologies. EEI’s Mike McGrath outlined utility industry recommendations dealing               Formatted: Font: Not Bold
with safety and reliability, access to the electric system, cost allocation, affiliate transactions, and
other issues. Scott C. Cleland, Chief Executive Officer of The Precursor Group, opined that BPL            Formatted: Font: 11 pt
was at a “viability tipping point.” He said that state State regulators should not over regulate BPL or
attempt to pick winners and losers. Thereafter, Commissioner Nelson conducted an interchange of
views with the panelists, Task Force members, and others in the audience.

Coincident with the National Summit on Broadband Deployment, Jay Birnbaum of Current hosted
several Task Force members and other state State commissioners on a visit to Current’s BPL
demonstration site in Potomac, Maryland. The site is a residence that has been outfitted with BPL
capabilities that provide an impressive array of broadband applications.

November 22. James Guest, the FERC’s Chief Accountant, made a presentation outlining how the
FERC’s Uniform System of Accounts might affect accounting and cost allocation issues related to
BPL. [PLEASE CHECK – I WAS NOT PRESENT FOR THIS CALL.]

December 15. Robert J. Howley, Regulatory Affairs, Cox Communications, Inc., made a
presentation on pole attachment issues. The Hon. Alan R. Schriber, Chairman of the Public
Utilities Commission of Ohio, followed up with some observations about pole attachment issues
related to the deployment of BPL in Cinergy’s service territory in Cincinnati and resulting conflicts
with other providers of broadband services in that area.

In late November and early December, Brad Ramsay of NARUC conducted a survey of state State
commissions regarding BPL developments. The results of that survey are attached to this report as
Appendix B. During this timeframe, the Task Force also made arrangements with Janice A.
Beecher, Director of the Institute of Public Utilities, Michigan State University, to provide
proofing services for this paper. These contributions are gratefully acknowledged.

The Task Force also wishes to thank and acknowledge the efforts of numerous state State
commission staffers, both as valuable contributors to the Task Force’s efforts to surmount the BPL         Formatted: Font: 10 pt
                                                                                                           Formatted: Font: 10 pt



                                                3
                                           Appendix A - 3
BPL Report                                                                                     NARUC


learning curve and, in several cases, as contributors to this white paper. The following is a listing of
those staffers:

State Commissioners Appointed to Task Force
     Laura Chappelle (MI)                                                                                 Formatted: Bullets and Numbering
     Thomas Dunleavy (NY)
     Julie Parsley (TX)
     Tony Clark (ND)
     Denise Bode (OK)
     Connie Hughes (NJ)

With assistance from:
    Robert Nelson (MI) *                                                                                  Formatted: Bullets and Numbering
    Alan Schriber (OH) *
    Charles Gray (NARUC)

Federal Commissioners that have participated in Task Force efforts
    FERC Commissioner Nora Brownell                                                                       Formatted: Bullets and Numbering
    FCC Commissioner Kathleen Abernathy

Staff Support for the Task Force
     David Tobenkin (FERC)                                                                                Formatted: Bullets and Numbering
     M. Henry (FERC)
     Rodger Woock (FCC)
     Jeffrey Pillon (MI)
     Kenneth M Roth (MI)
     Karen Feldpausch (MI)
     Illona Jeffcoat-Sacco (ND)
     Charlene Magstadt (ND)
     Dotti Leonard (NJ)
     Jane Kunka (NJ)
     Gary Walker (OK)                                                                                     Formatted: Font: 11 pt, Not Highlight
     Steve Wilt (OK)                                                                                      Formatted: Font: 11 pt
     Joyce Davidson(OK)
     Joseph Witmer (PA)
     Don Jones (TX)
     Sheri Sanders (TX)                                                                                   Formatted: Font: 11 pt, Not Highlight
     Brad Ramsay (NARUC)                                                                                  Formatted: Font: 11 pt
     Debra Scott (NARUC)




       State Commissioners Appointed to Task Force                                                         
          Laura Chappelle (MI)                                                                            Formatted: Bullets and Numbering
          Thomas Dunleavy (NY)
          Julie Parsley (TX)
          Tony Clark (ND)                                                                                 Formatted: Font: 10 pt
                                                                                                           Formatted: Font: 10 pt



                                                3
                                           Appendix A - 4
BPL Report                                                                 NARUC



             Denise Bode (OK)
             Connie Hughes (NJ)

      With assistance from:
         Robert Nelson (MI) *                                                     Formatted: Bullets and Numbering
         Alan Schriber (OH) *
         Charles Gray (NARUC)

      Federal Commissioners that have participated in Task Force efforts
         FERC Commissioner Nora Brownell                                          Formatted: Bullets and Numbering
         FCC Commissioner Kathleen Abernathy

      Staff Support for the Task Force
         David Tobenkin (FERC)                                                    Formatted: Bullets and Numbering
         M. Henry (FERC)
         Rodger Woock (FCC)
         Jeffrey Pillon (MI)
         Kenneth M Roth (MI)
         Karen Feldpausch (MI)
         Illona Jeffcoat-Sacco (ND)
         Charlene Magstadt (ND)
         Dotti Leonard (NJ)
         Jane Kunka (NJ)
         David Butler (OK)                                                        Formatted: Highlight
         Steve Wilt (OK)
         Joyce Davidson(OK)
         Joseph Witmer (PA)
         Don Jones (TX)
         Sheri Snaders (TX)                                                       Formatted: Highlight
         Brad Ramsay (NARUC)
         Debra Scott (NARUC)




                                                                                   Formatted: Font: 10 pt
                                                                                   Formatted: Font: 10 pt



                                        3
                                   Appendix A - 5
BPL Report                                                                           NARUC
                                                                                                                                     Formatted: Right: 0.63"


                                                          APPENDIX B

                                           BROADBAND OVER POWERLINES (BPL)
                                                 -- State Survey Results --
                                                                                                                                     Formatted: Border: Bottom: (No border)
                                                           January 2005
                                                                                                                                     Formatted: Centered, Border: Bottom: (No
                                                                                                                                     border)
This short survey was conducted at the request of the NARUC Broadband over Powerlines (BPL) Task Force Chair, Commissioner Laura
Chappelle of Michigan. The question was originally posed to State PUC/PSCs November 19, 2004. Total number of State responses: 43.
  Responding States: AL, AZ, AR, CA, CT, DE, FL, HI, ID, IL, IN, IA, KS, KY, ME, MD, MA, MI, MN, MO, MT, NE, NV, NH, NJ,
                         NM, NY, NC, ND, OH, OK, OR, PA, SC, SD, TN, TX, UT, VA, WA, WI, and WY.
                                                                                                                                     Formatted: Normal, Centered


                                                            Responses:                                                               Formatted: Normal
                                                                                                                                     Formatted: Centered
                                                  (Listed alphabetically by State)                                                   Formatted: Normal
                                                                                                                                     Formatted: Normal, Centered




                                                                                                                                     Formatted: Font: 10 pt
                                                                                                                                     Formatted: Font: 10 pt



                                                               9
                                                          Appendix B - 1
   BPL Report                                                                                                                             NARUC




                                                                                    QUERY FROM NARUC BPL TASK FORCE
                                                                                                                                                                                                                                        Formatted: Centered
                                                                                                                                                                                                                                        Formatted: Centered, Indent: Left: 0", First
                                                                                                                 * Location;
                                                                                                                                                                                                                                        line: 0"
                                                                                              * Municipality/City/State involvement (?) in trial;
                                                                                                       * Companies involved in trial;
                                                                                                                                                                           Does your State have any                                        Formatted: Centered
  State                                    Are there any ongoing BPL trials or                    * Number of households involved in trial;                                                                  Has your state concluded any proceedings
                     Contact Person                                                                                                                                        open proceedings that are
Commission                                            deployments?                * Services being offered/tested: (1) Local Phone Service; (2) Toll phone                                                                on BPL issues?
                                                                                                                                                                            examining BPL issues?
                                                                                    service; (3) Broadband Internet Access; (4) Auto Meter Reading; (5)
                                                                                    Residential Demand Management/Smart Grid/Grid Management? (6)
                                                                                                                    Other?
                                                                                                                                                                             No previous or scheduled
                                                                                                                                                                            proceedings. While there
                                                                                   Location: Hoover, Alabama; Municipality/City/State involvement (?) in trial: no;            may be other trials in
                                                                                 Companies involved in trial: Southern Telecom, Alabama Power Company; Number of                Alabama, the only
                                                                                                                                                                                                                                        Formatted: Centered
  Alabama              Gene Hanes,                                                  households involved in trial: 115; Services being offered/tested: (1) Local Phone      jurisdictional electric utility
Public Service        Energy Federal                      Yes                     Service: not yet; (2) Toll phone service: not yet; (3) Broadband Internet Access: yes;      the APSC regulates is                           No
 Commission              Affairs                                                     (4) Auto Meter Reading: not yet; (5) Residential Demand Management/Smart               Alabama Power Company.
                                                                                                    Grid/Grid Management: not yet; (6) Other: not yet.                       The Commission has no
                                                                                                                                                                           authority or jurisdiction over
                                                                                                                                                                            municipals or cooperatives.

                                                                                  Location: Cottonwood, Arizona; Municipality/City/State involvement: Cottonwood
                                                                                          Town supports the trial. Companies involved in trial: APS, Mountain
   Arizona                                                                        Telecommunications, Inc., and Mitsubishi. Number of households involved in trial:
                        Del Smith,                                                                                                                                                                                                      Formatted: Centered
 Corporation                                              Yes                    Ten. Services being offered/tested. (1) Local Phone service - Not yet; (2) Toll phone                  N/A                                  N/A
                     Utilities Division
 Commission                                                                      service - Not yet; (3) Broadband Internet Access - Yes; (4) Auto Meter Reading - Not
                                                                                 yet; (5) Residential Demand Management/Smart Grid/Grid Management - Not yet; (6)
                                                                                                                     Other - None.

  Arkansas
                                                                                                                                                                                                                                        Formatted: Centered
Public Service      Arthur H. Stuenkel                     No                                                             N/A                                                           No                                    No
 Commission



                         Mark A.
  California
                   Vandervelden, CPUC                                                                                                                                                                                                   Formatted: Centered
Public Utilities                                           No                                                             N/A                                                           N/A                                  N/A
                   Division of Strategic
 Commission
                         Planning


 Connecticut
                                                                                                                                                                                                                                        Formatted: Centered
Department of
                    Peter Pescosolido                      No                                                             N/A                                                           No                                    No
Public Utility
  Control

                                                                                                                                                                                                                                        Formatted: Font: 10 pt
                                                                                                                                                                                                                                        Formatted: Font: 10 pt



                                                                                                      9
                                                                                                 Appendix B - 2
    BPL Report                                                                                                                                   NARUC



  Delaware
                                                                                                                                                                                                                                     Formatted: Centered
Public Service     Constance A. Welde                        No                                                                 N/A                                                         No                            No
 Commission


                                                                                                                       * Location;                                                                                                   Formatted: Centered
                                                                                                    * Municipality/City/State involvement (?) in trial;
                                                                                                             * Companies involved in trial;
                                                                                                                                                                                  Does your State have any
  State                                    Are there any ongoing BPL trials or                          * Number of households involved in trial;                                                              Has your state concluded any
                     Contact Person                                                                                                                                               open proceedings that are
Commission                                            deployments?                      * Services being offered/tested: (1) Local Phone Service; (2) Toll phone                                               proceedings on BPL issues?
                                                                                                                                                                                   examining BPL issues?
                                                                                          service; (3) Broadband Internet Access; (4) Auto Meter Reading; (5)
                                                                                          Residential Demand Management/Smart Grid/Grid Management? (6)
                                                                                                                          Other?

                                                                                      Information received for an August 2004 survey response indicated that Florida Power
   Florida                                                                            and Light had a small pilot of 25 connections in the FPL system and planned to add 25
                                                                                                                                                                                                                                     Formatted: Centered
Public Service          Rick Moses                           Yes                      more. There was no charge to customers. Gulf Power reported a trial in Birmingham,                     No                            No
 Commission                                                                            Alabama, with less than 200 customers. Progress Energy Florida had a trial in North
                                                                                           Carolina where Earthlink Service was offered to 400 customers in Raleigh.


                                                                                          Location: McCully neighborhood of Honolulu, Hawaii; Municipality/City/State
                                                                                        involvement: No; Companies involved: Hawaiian Electric Company and Current
                                                                                         Technologies (BPL vendor); Number households involved: Four; Services being
                                                                                      offered/tested: Testing VoIP, broadband internet, utility applications (see below). (1)
   Hawaii
                     Lisa Y. Kikuta,                                                  Local phone service: Yes (2) Toll phone service: Yes (3) Broadband Internet Access?                                                            Formatted: Centered
Public Utilities                                             Yes                                                                                                                             No                            No
                    Chief Researcher                                                    Yes (4) Auto Meter reading? Yes, testing an IP addressable meter. (5) Residential
 Commission
                                                                                        Demand Management/Smart Grid/Grid Management? No, working with vendor to
                                                                                      develop load management switch. (6) Other: Testing utility applications at distribution
                                                                                       substation - monitoring current, temperature and voltage measurements/readings, and
                                                                                                                           power quality.


                                                                                        Location: Boise; Municipality/City/State involvement (?) in trial: No; Companies
                                            Idacomm, a sister company of Idaho
                                                                                         involved in trial: Idacomm; Number of households involved in trial: There were
                                           Power, the largest IOU in the state, has                                                                                                                                                  Formatted: Centered
    Idaho                                                                              approximately 50 households participating in the trials at the end of 2004. More are
                                            conducted limited trials at employee
Public Utilities       Wayne Hart                                                     expected as the subdivisions build out; Services being offered/tested: (1) Local Phone                 No                            No
                                           residences, and is currently conducting
 Commission                                                                               Service; (2) Toll phone service; (3) Broadband Internet Access; (4) Auto Meter
                                               limited technology trials in two
                                                                                        Reading; (5) Residential Demand Management/Smart Grid/Grid Management? (6)
                                                         subdivisions.
                                                                                       Other? At this stage of the tests, only high speed internet services are being provided.



   Illinois
                    Bud Green, Chief                                                                                                                                                                                                 Formatted: Centered
  Commerce                                                   No                                                                 N/A                                                          No                            No
                    Telecom Engineer
 Commission



                                                                                               Location: South-Central Indiana, more specifically, Martinsville, IN;
                       Joel Fishkin,                                                  Municipality/City/State involvement: No Companies involved in trial: South- Central
Indiana Utility
                   Asstistant. Director,                                              Indiana REMC and International Broadband Electric Communications, Inc. Number of                                                               Formatted: Centered
  Regulatory                                                 Yes                                                                                                                  No, but we had a workshop.               No
                   Telecommunications                                                   households: 1,100. Services being offered/tested: Local phone service - No; Toll
 Commission
                         Division                                                         phone service - No; Broadband Internet Access - Yes Auto Meter Reading - No
                                                                                      Residential Demand Management/Smart Grid/Grid Management - No Other - Outdoor                                                                  Formatted: Font: 10 pt
                                                                                                                            cameras.
                                                                                                                                                                                                                                     Formatted: Font: 10 pt



                                                                                                            9
                                                                                                       Appendix B - 3
    BPL Report                                                                                                                                    NARUC




 Iowa Utilities     John Ridgway,
                                                             No                                                                   No                                                           No                              No        Formatted: Centered
    Board          Manager - Telecom



                   Guy McDonald, KCC
   Kansas
                       Staff, Senior                                                                                                                                                                                                     Formatted: Centered
 Corporation                                                 No                                                                   No                                                           No                              No
                   Telecommunica-tions
 Commission
                         Analyst

                                                                                                                        * Location;                                                                                                      Formatted: Centered
                                                                                                     * Municipality/City/State involvement (?) in trial;
                                                                                                              * Companies involved in trial;
                                                                                                                                                                                   Does your State have any
   State                                  Are there any ongoing BPL trials or                            * Number of households involved in trial;                                                                 Has your state concluded any
                     Contact Person                                                                                                                                                open proceedings that are
 Commission                                          deployments?                        * Services being offered/tested: (1) Local Phone Service; (2) Toll phone                                                  proceedings on BPL issues?
                                                                                                                                                                                    examining BPL issues?
                                                                                           service; (3) Broadband Internet Access; (4) Auto Meter Reading; (5)
                                                                                           Residential Demand Management/Smart Grid/Grid Management? (6)
                                                                                                                           Other?

                    Jim Stevens, CPA,
   Kentucky
                   Telecommunications                                                                                                                                                                                                    Formatted: Centered
 Public Service                                              No                                                                  N/A                                                           No                              No
                         Revenue
  Commission
                   Requirements Branch


                                          No BPL activity in Maine. There is a
    Maine                                  rumor of a pilot project in southern
                     Phillip Lindley,                                                                                                                                                                                                    Formatted: Centered
Public Utilities                          Maine using a utility district's plant, but                                            N/A                                                           No                              No
                     Utilities Analyst
 Commission                                         nothing to report.



                                                                                         There is an ongoing trial in Potomac, Maryland. It involves the private firm called
                                                                                                                                                                                  There are no open proceedings
   Maryland         Carlos Candelario,                                                        Current Technologies, which is using PEPCO facilities for the purposes of
                                                                                                                                                                                   or proceedings that have been                         Formatted: Centered
 Public Service     Assistant Director,                      Yes                           transmission. There is no government involvement at any level. There are 100                                                        No
                                                                                                                                                                                  concluded on BPL issues in the
  Commission       Telecommunications                                                   residential customers involved and the two services being trialed are internet services
                                                                                                                                                                                               State.
                                                                                                                       and auto meter reading.


                                                                                          Agawam, MA. Municipality/City State involvement: None. Companies involved in
                                                                                        trial: Western Massachusetts Electric Co. is starting up a 25-home trial in Agawam of
                                                                                        a hybrid system that carries Net traffic on medium-voltage lines and uses wireless gear
 Massachusetts
                     Ashish Shrestha,                                                    for the last-mile connection to homes. Services being offered/tested. (1) Local phone                                                           Formatted: Centered
 Department of
                     Analyst, Telecom                     Yes, trial.                     service - No (2) Toll phone service - No (3) Broadband Internet Access - Free high-                  No                              No
Telecommunicat
                    Division. & Energy                                                  speed internet access. (4) Auto Meter Reading - the electric company is also exploring
ions and Energy
                                                                                          using the connections to link its own equipment, including residential meters, to the
                                                                                          Internet. This would allow for remote reading of meters or equipment that measures                                                             Formatted: Font: 10 pt
                                                                                           current flow. (5) Residential Demand Management/Smart Grid/Grid Management?
                                                                                             See below. (6) Other? The utility could install "smart streetlights" that send a                                                            Formatted: Font: 10 pt



                                                                                                             9
                                                                                                        Appendix B - 4
    BPL Report                                                                                                                         NARUC


                                                                               message via the Internet when their lamps burn out. An electric grid with more
                                                                               monitoring devices linked to the utility's operations center could give warning of
                                                                                                  outages before they occur, officials said.




  Michigan
                   Laura Chappelle,                                          Consumers Energy Company and the Shpigler Group are implementing a pilot project                                                                 Formatted: Centered
Public Service                                        Yes                                                                                                                         No                                No
                    Commissioner                                                         for BPL in Grand Ledge, Michigan in the Spring of 2005.
 Commission



  Minnesota                                                                                                                                                           No. Additional Information:
                                                                                                                                                                                                                              Formatted: Centered
Public Utilities     Diane Wells                       No                                                            N/A/                                             Rochester Public Utilities is                 No.
 Commission                                                                                                                                                              doing a trial of BPL.



  Missouri         Natelle Dietrich:                                          Location: Cape Girardeau, Missouri. Municipality/City State involvement: None
                                                                                                                                                                                                                              Formatted: Centered
Public Service       Regulatory                       Yes                     known. Companies involded in trial: Ameren Union Electric. Ameren has a trial                       No                                No
 Commission         Economist III                                                           program in this area. Specific details are unknown.


                                                                                                             * Location;                                                                                                      Formatted: Centered
                                                                                          * Municipality/City/State involvement (?) in trial;
                                                                                                   * Companies involved in trial;
                                                                                                                                                                     Does your State have any
  State                                Are there any ongoing BPL trials or                    * Number of households involved in trial;                                                                 Has your state concluded any
                   Contact Person                                                                                                                                    open proceedings that are
Commission                                        deployments?                * Services being offered/tested: (1) Local Phone Service; (2) Toll phone                                                  proceedings on BPL issues?
                                                                                                                                                                      examining BPL issues?
                                                                                service; (3) Broadband Internet Access; (4) Auto Meter Reading; (5)
                                                                                Residential Demand Management/Smart Grid/Grid Management? (6)
                                                                                                                Other?

  Montana
                                                                                                                                                                                                                              Formatted: Centered
Public Service        Mike Lee                         No                                                            N/A                                                          No                                No
 Commission

                                                                                                                                                                         None. There is proposed
                                                                                                                                                                      legislation (LB 136) titled the
                                                                                                                                                                       "Public Power Infrastructure
  Nebraska                                                                                                                                                               Act" that centers on the
                                                                                                                                                                                                                              Formatted: Centered
Public Service       Gene Hand                                                                                                                                       difference between information
                                                       No                                                            N/A                                                                                            No
 Commission                                                                                                                                                         service and telecommunications
                                                                                                                                                                      service including establishing
                                                                                                                                                                     that the governing boday of the
                                                                                                                                                                    public power supplier will be the
                                                                                                                                                                               sole regulator.

   Nevada
                    Charlie Bolle,                                                                                                                                                                                            Formatted: Centered
Public Utlitiies
                   Manager, Policy                     No                                                            N/A                                                          No                                No
 Commission
                      Analysis

                                                                                                                                                                                                                              Formatted: Font: 10 pt
                                                                                                                                                                                                                              Formatted: Font: 10 pt



                                                                                                 9
                                                                                            Appendix B - 5
    BPL Report                                                                                                                                  NARUC



New Hampshire
                     Jody O'Marra,                                                                                                                                                                                                      Formatted: Centered
Public Utilities                                             No                                                                 No                                                         No                                 No
                   Utility Analyst, III
 Commission



 New Jersey         Robert Melendez,
                                                                                                                                                                                                                                        Formatted: Centered
Board of Public     Issues Manager –                         No                                                                N/A                                                         No                                 No
   Utilities            Telecom



 New Mexico
                   Michael Ripperger;                                                                                                                                                                                                   Formatted: Centered
    Public
                   Telecommunications                        No                                                                N/A                                                         No                                 No
  Regulation
                        Bur. Chief
   Comm.




                                                                                                                                                                                                                                        Formatted: Centered




                                                                                                                       * Location;                                                                                                      Formatted: Centered
                                                                                                    * Municipality/City/State involvement (?) in trial;
                                                                                                             * Companies involved in trial;
                                                                                                                                                                                Does your State have any
  State                                   Are there any ongoing BPL trials or                           * Number of households involved in trial;                                                               Has your state concluded any
                    Contact Person                                                                                                                                              open proceedings that are
Commission                                           deployments?                       * Services being offered/tested: (1) Local Phone Service; (2) Toll phone                                                proceedings on BPL issues?
                                                                                                                                                                                 examining BPL issues?
                                                                                          service; (3) Broadband Internet Access; (4) Auto Meter Reading; (5)
                                                                                          Residential Demand Management/Smart Grid/Grid Management? (6)
                                                                                                                          Other?

                                                                                                                                                                                                                No. Additional Information: (1) One
                                                                                                                                                                                                                 additional BPL trial which was much
                                                                                                                                                                                                            publicized in the past two years was in Penn
                                                                                        Location: Briarcliff Manor, New York; Solvay, New York. Municipality/City/State                                       Yan, New York. That BPL trial has been
                                            Yes Broadband Horizons (BH) is the             involvement: Ossining Police Dept., Village of Solvay Electric Department.                                           shut down apparently due to not being
                                           first company to launch BPL in Central       Companies involved: Consolidated Edison of New York, Village of Solvay Electric                                     commercially viable, as well as to its having
                   Steven Sokal, Office
New York State                            Texas. Initial installations began in June     Department/ Ambient Corporation; New Visions PLC; Earthlink; Main.net PLC.                                               caused significant radio frequency
                       of Economic                                                                                                                                                                                                            Formatted: Centered
Public Service                            2004. Its offices are based out of Blanco,     Number of households involved: 2 Unknown. Services being offered/tested: (1)                      No                  interference. The negative results of the
                    Development and
 Commission                                 Texas. Additional information about        Local phone service - No; (2) Toll phone service - No; (3) Broadband Internet Access -                                     Penn Yan test may have influenced
                   Policy Coordination
                                                 their services may be found at           Yes; (4) Auto Meter Reading: Yes; (5) Residential Demand Management/Smart                                            decisions whether to proceed with some
                                                   http://www.broadbandhor                 Grid/Grid Management: Yes; (6) Other - Substation SCADA control; Video                                            other BPL tests by utilities in western New
                                                                                                                      surveillance Telemetry.                                                               York. (2) The Briar Cliff Manor test now,
                                                                                                                                                                                                              apparently, has a documented situation of
                                                                                                                                                                                                            harmful radio interference caused by BPL in
                                                                                                                                                                                                                                              Formatted: Font: 10 pt
                                                                                                                                                                                                             that area, and a formal complaint has been
                                                                                                                                                                                                              filed in the last few weeks with the FCC.
                                                                                                                                                                                                                                        Formatted: Font: 10 pt



                                                                                                            9
                                                                                                       Appendix B - 6
   BPL Report                                                                                                                                NARUC


                                                                                                                                                                                                                    We do not believe that the FCC has yet
                                                                                                                                                                                                                            followed up on this.




                                                                                                                                                                                                                                                Formatted: Centered, Adjust space between
                                                                                    Progress Energy completed its market trial in August 2004 to provide broadband
                                                                                 service to about 400 Wake County homes for six months. Currently, the company does                                                                             Latin and Asian text, Adjust space between
                                                                                   not have plans for a large-scale commercial rollout of BPL in the company's service                                                                          Asian text and numbers
                                                                                                                       territories.
                                    Yes Duke Power is in the final stages of
                                                                                                                                                                                                                                                Formatted: Centered, Adjust space between
                                      evaluating its market trial with AT&T           Integrated communications provider Fonix Telecom is partnering through its
                                        Corp., Earthlink Inc., and LecStar       subsidiary, LecStar Telecom, with Duke Power to expand on ongoing test of broadband                                                                            Latin and Asian text, Adjust space between
                                       Telecom Inc. to provide high-speed                       over power line (BPL) technology and market acceptance.                                                                                         Asian text and numbers
North Carolina
                                     Internet to about 100 Charlotte residents
   Utilities      Teresa Kelly
                                    for six months. Out of their options is to     The trial, which will be expanded to 10,000 to 15,000 homes in North Carolina and
                                                                                                                                                                                              No                                     No         Formatted: Centered
 Commission
                                    become a wholesale network provider for      South Carolina, represents an expansion of a 500-home trial currently being conducted
                                        existing internet providers, such as     by the companies. The trial's specific locations will be determined in the first quarter of
                                        EarthLink, Microsoft, and AT&T.          2005, and the companies expect service to be available to businesses and consumers in
                                                                                                                some markets in mid-2005.
                                                                                                                                                                                                                                                Formatted: Centered
                                                                                  As part of the BPL trials, Fonix also is continuing to test Voice over IP via BPL. This
                                                                                                                                                                                                                                                Formatted: Centered
                                                                                  service will be tested by current trial participants and is expected to become available
                                                                                                to all customers in the next phase of the trial by mid-2005.



North Dakota
                   Tony Clark,                                                                                                                                                                                                                  Formatted: Centered
Public Service                                         No                                                                   N/A                                                               No                                     No
                  Commissioner
 Commission


                                                                                 We have a major BPL program underway in Ohio, specifically in Cincinnati. Cinergy              Wars are brewing in Cincinnati
 Ohio Public
                                                                                 is deploying BPL in certain neighborhoods and is beginning to spread out. They had a          between Time Warner, Cinergy,                                    Formatted: Centered
   Utilities
                  Alan Schriber                        Yes                         successful pilot program earlier. I have visited with Current Technologies, which is        and to a lesser extent, Cincinnati                    No
 Commission
                                                                                    doing the "business side" of the BPL and have seen their demo house in Maryland.            Bell. The big fight is over pole
  (PUCO)
                                                                                                       They now have a demo facility in Cincinnati.                                       attachments.
                                                                                                                 * Location;                                                                                                                    Formatted: Centered
                                                                                              * Municipality/City/State involvement (?) in trial;
                                                                                                       * Companies involved in trial;
                                                                                                                                                                                Does your State have any
  State                             Are there any ongoing BPL trials or                           * Number of households involved in trial;                                                                           Has your state concluded any
                 Contact Person                                                                                                                                                 open proceedings that are
Commission                                     deployments?                       * Services being offered/tested: (1) Local Phone Service; (2) Toll phone                                                            proceedings on BPL issues?
                                                                                                                                                                                 examining BPL issues?
                                                                                    service; (3) Broadband Internet Access; (4) Auto Meter Reading; (5)
                                                                                    Residential Demand Management/Smart Grid/Grid Management? (6)
                                                                                                                    Other?
                                                                                    Location: Cinergy's Electric service territory (Cincinnati Area); AEP Facilities in
                                                                                 Dublin, Ohio. Also, small REC's and Municipal co-ops (just started). AEP/Amperion:
                                                                                 N/A Municipality/City/State involvement: Under Cinergy/Current, only to the extent
                                       Yes, one trial and one trial that has
                                                                                  that Municipal electric operations buy into the product. None have thus far, although
                                        progressed into a deployment.
   Ohio          Cheryl Williams,                                                 some are considering it. Under AEP/Amperion: None. Companies involved in trial:
                                           AEP/Amperion (trial) and                                                                                                                           No                                     No         Formatted: Centered
 Commission       Chris Kotting                                                    Under Cinergy/Current: Cinergy/Current Communications. Under AEP/Amperion:
                                       Cinergy/Current Communications
                                                                                    AEP/Ohio Power, and Amperion. Number of households involved in trial: Under
                                           (deployment in progress).
                                                                                    Cinergy/Current, 100 in trial, deployment customer counts unknown at this time.
                                                                                 Under AEP/Amperion, None (At this time, the trial is limited to AEP's own facilities).                                                                         Formatted: Font: 10 pt
                                                                                 Services being offered/tested: (1) Local phone service; No for Cinergy/Current; No for
                                                                                                                                                                                                                                                Formatted: Font: 10 pt



                                                                                                       9
                                                                                                  Appendix B - 7
    BPL Report                                                                                                                                   NARUC


                                                                                            AEP/Amperion. (2) Toll phone service: No for Cinergy/Current; No for
                                                                                       AEP/Amperion. (3) Broadband Internet Access: Yes for Cinergy/Current; Yes for
                                                                                      AEP/Amperion. (4) Auto Meter Reading? Testing, for Cinergy/Current; Testing, for
                                                                                        AEP/Amperion. (5) Residential Demand Management/Smart Grid/Grid Mgmt:
                                                                                      Testing, for Cinergy/Current; Testing, for AEP/Amperion. (6) Other: Unknown, for
                                                                                                        Cinergy/Current; Unknown for AEP/Amperion.


 Oklahoma          Steve Wilt, Public
                                                                                                                                                                                                                                   Formatted: Centered
Public Utility     Utility Regulatory                       No                                                                  No                                                          No                           No
Commission         Analyst – Telecom.

                                               No Currently there are no trial
                                          deployments, or network construction of
                                           this technology in the State. There is
                                         some interest in the technology for use by
                                           electric companies for the purpose of
                                           Auto Meter Reading (AMR). There is
                                         one operator, which serves a sliver of the
                                          Eastern Oregon border area near Idaho,
                                             who has recently completed a trial
                                          deployment in Meridian, Idaho, west of
                   Rick Carter, MIEEE,
   Oregon                                   Boise. The Company is IDAComm,
                          Senior                                                                                                                                                                                                   Formatted: Centered
Public Utilities                          which is an affiliate of IDACorp, which                                              N/A                                                          No                           No
                   Telecommunica-tions
 Commission                                also owns Idaho Power. I have talked
                         Engineer
                                           with the operators of a BPL system in
                                         Sault Ste. Marie, Canada, regarding their
                                                trial deployment, and several
                                                conversations with technical
                                             representatives at Amperion, who
                                          manufacture equipment for BPL. These
                                          discussions took place to help develop a
                                                  presentation for informing
                                               Commissioners of the nascent
                                                          technology.



                                                                                                                                                                                                                                   Formatted: Centered


                                                                                                                      * Location;                                                                                                  Formatted: Centered
                                                                                                   * Municipality/City/State involvement (?) in trial;
                                                                                                            * Companies involved in trial;
                                                                                                                                                                                 Does your State have any
  State                                  Are there any ongoing BPL trials or                           * Number of households involved in trial;                                                             Has your state concluded any
                    Contact Person                                                                                                                                               open proceedings that are
Commission                                          deployments?                       * Services being offered/tested: (1) Local Phone Service; (2) Toll phone                                              proceedings on BPL issues?
                                                                                                                                                                                  examining BPL issues?
                                                                                         service; (3) Broadband Internet Access; (4) Auto Meter Reading; (5)
                                                                                         Residential Demand Management/Smart Grid/Grid Management? (6)
                                                                                                                         Other?

                                              Pennsylvania experience. PPL            Pennsylvania involvement at FCC. Pennsylvania was one of two states that submitted
 Pennsylvania                                 Telecomm (a subsidiary of PPL            comments in the recently concluded BPL docket. The PaPUC suggested that (a) an
                                                                                                                                                                                                                                   Formatted: Centered
Public Utilities     Joseph Witmer           Corporation, a major provider of          ancillar NOPR was needed to address non-technical issues, such as universal service                 N/A                           N/A
 Commission                                  electricity in Eastern and Central        and the role of the states; (b) the final regulations should not apply for 36 months to
                                            Pennsylvania to approximately 1.3               entities deploying BPL as of the date of enactment, unless there is evidence                                                           Formatted: Font: 10 pt
                                           million customers) has been involved        establishing an inability to solve technical issues absent application of any final BPL
                                                                                                                                                                                                                                   Formatted: Font: 10 pt



                                                                                                           9
                                                                                                      Appendix B - 8
    BPL Report                                                                                                                                NARUC


                                          with BPL since 1999. PPL originally          rules; (c) the spectrum be divided into "notched" or exempt sections (primarily for
                                          used Main.net technology supplied by      Verizon, Spring, Boeing, ARR, CSAA, NAS-RAS, and NCTA) and non-notched (non-
                                           Amperion, Inc., in an experiment in      exempt) sections (primarily all other spectrum); (d) BPL equipment should incorporate
                                        Whitehall, PA, that passed approximately         state-of-the-art power reduction, frequency modulation, and shut-off devices to
                                         2,500 homes. PPL estimates that of the     mitigate any potential interference; (e) the FCC should create a BPL Engineering Task
                                            approximately 375,000 customers             Force modelled on the Internet Engineering Task Force; (f) procedures should be
                                        evaluated for potential BPL service, more      developed for posting information about BPL in the respective states; and (g) state
                                          than two-thirds do not have access to       commission should have the option of "opting in" to be a first-cut mediator for any
                                         equivalent two-way broadband service.      alleged interference from BPL to customers or entities using spectrum that experiences
                                        PPL has not yet made a final decision on                                      interference from BPL.
                                                 a full scale deployment.



South Carolina
                                                                                                                                                                                                                                Formatted: Centered
Public Service       Douglas Pratt                         No                                                                N/A                                                         No                           No
 Commission



South Dakota
                     Bob Sahr,                                                                                                                                                                                                  Formatted: Centered
Public Utilities                                           No                                                                N/A                                                         No                           No
                    Commissioner
 Commission



                                                                                        Location: Fayetteville, Tennessee. Municipality/City/State involvement: Yes
                                                                                    Companies involved in trial: Fayetteville Public Utilities & GridStream TechnologYes
  Tennessee                                                                         Number of households involved: this trial is no longer active, two approximately three
                   Darlene Standley,                                                                                                                                                                                            Formatted: Centered
  Regulatory                                              Yes                        businesses still have modems that are active. Services being offered/tested: (1) Local              No                           No
                   Chief of Utilities
  Authority                                                                          hone service - No; (2) Toll phone service - No; (3) Broadband Internet Access - Yes;
                                                                                     (4) Auto Meter Reading - No; (5) Residential Demand Management/Smart Grid/Grid
                                                                                                              Management - No; (6) Other – No

                                                                                                                                                                                                                                Formatted: Centered




                                                                                                                    * Location;                                                                                                 Formatted: Centered
                                                                                                 * Municipality/City/State involvement (?) in trial;
                                                                                                          * Companies involved in trial;
                                                                                                                                                                              Does your State have any
  State                                 Are there any ongoing BPL trials or                          * Number of households involved in trial;                                                            Has your state concluded any
                   Contact Person                                                                                                                                             open proceedings that are
Commission                                         deployments?                      * Services being offered/tested: (1) Local Phone Service; (2) Toll phone                                             proceedings on BPL issues?
                                                                                                                                                                               examining BPL issues?
                                                                                       service; (3) Broadband Internet Access; (4) Auto Meter Reading; (5)
                                                                                       Residential Demand Management/Smart Grid/Grid Management? (6)
                                                                                                                       Other?
                                                                                                                                                                                                                                Formatted: Font: 10 pt
                                                                                                                                                                                                                                Formatted: Font: 10 pt



                                                                                                         9
                                                                                                    Appendix B - 9
   BPL Report                                                                                                                                       NARUC



                                            Yes. Broadband Horizons (BH) is the
                                           first company to launch BPL in Central
                                                                                        Location: Broadband Horizons' home office is located in Blanco, Texas. It currently
                                         Texas. Initial installations began in June
                                                                                       has pilot projects in Burnet, Weimar and Blanco, Texas. BH is initially targeting rural
                                         2004. Its offices are based out of Blanco,
                                                                                               and semi-rural communities, generally under 20,000-30,000 population.
                                            Texas. Additional information about
                                                                                          Municipality/City/State involvement. The City of Blanco is served by Perdenales
                                                 their services may be found at
                                                                                         Electric Cooperative, a private electric utility owned by its customers. The City of
                                         http://www.broadbandhorizons.com/inde
                                                                                          Burnet owns its own electric utility. The City of Weimar is served by the Fayette
                                              x.htm. Additionally, in summer of
                                                                                       Electric Cooperative, District 6. The current contracts are for limited projects for 90 to
                    Sheri Sanders,          2004, TXU Electric Delivery hosted a
   Texas                                                                                180 days. For the pilot projects, there will be no cost to the muncipal utility districts.
                   Attorney, Policy          small-scale BPL retail demonstration                                                                                                              Formatted: Centered
Public Utility                                                                          Companies involved in Trial: Broadband Horizons and its ISP, Momentum Online..               No   No
                    Development            project in Irving, Texas, providing five
Commission                                                                              Number of households involved in trial: The initial pilots are limited in size, and the
                       Division             homes with Internet service to test the
                                                                                         company reports approximately 25 users on the system, mostly in Weimar, TX. In
                                              technical feasibility of BPL. Utility
                                                                                         Burnet, BH provides BPL broadband service to a municipal building and a nearby
                                         applications were not tested. The vendor
                                                                                           commercial building. Services being offered/tested: (1) Local phone service -
                                                 withdrew interest. Larger scale
                                                                                         Unknown; (2) Toll phone service - Unknown; (3) Broadband Internet Access - Yes.
                                                commercial deployment is being
                                                                                          (4) Auto Meter Reading - Unknown. (5) Residential Demand Management/Smart
                                             considered, and TXU is interviewing
                                                                                                        Grid/Grid Management - Unknown. (6) Other - None.
                                          suppliers, technology partners, and retail
                                         ISP providers. No additional information
                                                 about this project is available.



    Utah            Peggy Egbert,
                                                                                                                                                                                               Formatted: Centered
Public Service   Technical Consultant,                      No                                                                    N/A                                                No   No
 Commission      Telecommunications



Virginia State     Steven Bradley,
                                                                                                                                                                                               Formatted: Centered
 Corporation       Deputy Director,
                                                            No                                                                    N/A                                                No   No
Commission           Division of
                   Communications


                                                                                       One trial is located in Wenatchee Heights, a housing development of approx. 35 homes
                                                                                            using capacitive coupling, HPA (Home Plug Alliance) protocol BPL equipment
                                                                                       provided by Gridstream. Started in May of 2004 this trial has never fully functional. A
                                                                                        total equipment redesign will be completed and the trial will restart early 1st Q 2005.
                                                                                       The second trial is in the Peshasin area and connects approx. 30 homes using induction
                                                                                       coupling BPL equipment from MainNet providing 500-700Kb of bandwidth. The trial
 Washington
                                                                                         is functional and in use by two customers at this time. Ham radio organizations have                  Formatted: Centered
 Utilities and                            Yes two trials are in progress by Chelan
                 Bob Williamson, Sr.                                                      assisted in radio interference testing at both locations. using capacity coupled, HPA
Transportation                           County PUD in rural Eastern Washington
                   Technical Staff                                                       (Home Plug Alliance) protcol BPA equipment provided by GridStream. Gridstream.
 Commission                                          State. Washington
                                                                                            Started in May 2004 this trial has never been fully functional. A total equipment
  (WUTC)
                                                                                       redesign ha been completed and the trial is set to begin again the first quarter of 2005.
                                                                                        The second trial is in the Peshastin area connecting approx. 30 homes using inductive
                                                                                          coupled, proprietary protocol BPL equipment proprietary protocol, BPL equipment
                                                                                         provided by MainNet. Fully functional since its inception in September of 2004, this
                                                                                        system provides 500-700 Kb of broadband data bandwidth per subscriber. Ham radio
                                                                                                 operators have assisted with radio interference testing at both locations.




                                                                                                                                                                                               Formatted: Font: 10 pt
                                                                                                                                                                                               Formatted: Font: 10 pt



                                                                                                             9
                                                                                                       Appendix B - 10
   BPL Report                                                                                                              NARUC


                                                                                                          * Location;                                                                                   Formatted: Centered
                                                                                       * Municipality/City/State involvement (?) in trial;
                                                                                                * Companies involved in trial;
                                                                                                                                                      Does your State have any
  State                              Are there any ongoing BPL trials or                   * Number of households involved in trial;                                              Has your state concluded any
                 Contact Person                                                                                                                       open proceedings that are
Commission                                      deployments?               * Services being offered/tested: (1) Local Phone Service; (2) Toll phone                               proceedings on BPL issues?
                                                                                                                                                       examining BPL issues?
                                                                             service; (3) Broadband Internet Access; (4) Auto Meter Reading; (5)
                                                                             Residential Demand Management/Smart Grid/Grid Management? (6)
                                                                                                             Other?

  Wisconsin       Scot Cullen
                                                                                                                                                                                                        Formatted: Centered
Public Service   Chief Engineer                      No                                                      N/A                                                 No                           No
 Commission      Energy Division



  Wyoming                                                                                                                                                                                               Formatted: Centered, Adjust space between
                   Mike Korber,
Public Service
                 Lead Rate Analyst
                                                     No                                                      N/A                                                 No                           No        Latin and Asian text, Adjust space between
 Commission                                                                                                                                                                                             Asian text and numbers
                                                                                                                                                                                                        Formatted: Centered
                                                                                                                                                                                                        Formatted: Centered

                               APPENDIX B: NARUC SURVEY OF STATE COMMISSIONS REGARDING BPL                                                                                                              Formatted: Centered

                                                                                        APPENDIX B                                                                                                      Formatted: Centered, Indent: First line: 0"
                                                                                                                                                                                                        Formatted: Centered, Right: 0", Border:
                                                                   BROADBAND OVER POWERLINES (BPL)                                                                                                      Bottom: (No border)

                                                                         -- State Survey Results --
                                                                                                                                                                                                        Formatted: Border: Bottom: (No border)
                                                                                         January 2005
                                                                                                                                                                                                        Formatted: Centered, Border: Bottom: (No
                                                                                                                                                                                                        border)
   This short survey was conducted at the request of the NARUC Broadband over Powerlines (BPL) Task Force Chair, Commissioner Laura
   Chappelle of Michigan. The question was originally posed to State PUC/PSCs November 19, 2004. Total number of State responses: 28.                                                                   Formatted: Normal, Centered

    Responding States: AZ, CA, CT, DE, FL, HI, IN, IA, KS, MD, MA, MI, MO, NH, NJ, NM, NY, NC, OH, OK, OR, PA, SD, TN, TX,
                                                            UT, VA, and WA.


                                                                                      Responses:
                                                                            (Listed alphabetically by State)

                                                                                                                                                                                                        Formatted: Font: 10 pt
                                                                                                                                                                                                        Formatted: Font: 10 pt



                                                                                             9
                                                                                       Appendix B - 11
BPL Report                                                                                                                                NARUC




                                                                                     QUERY FROM NARUC BPL TASK
                                                                                              FORCE
                                                                                                                                                                                                            Formatted: Centered
                                                                                                                                                                                                            Formatted: Centered, Indent: Left: 0", First
                                                                                                           * Location;
                                                                                                                                                                                                            line: 0"
                                                                                       * Municipality/City/State involvement (?) in trial;
                                                                                                 * Companies involved in trial;                                Does your State have       Has your state    Formatted Table
   State                               Are there any ongoing BPL trials                    * Number of households involved in trial;                           any open proceedings       concluded any
                  Contact Person                                                                                                                                                                            Formatted: Centered
 Commission                                    or deployments?                 * Services being offered/tested: (1) Local Phone Service; (2) Toll             that are examining BPL   proceedings on BPL
                                                                                 phone service; (3) Broadband Internet Access; (4) Auto Meter                          issues?               issues?
                                                                                Reading; (5) Residential Demand Management/Smart Grid/Grid
                                                                                                    Management? (6) Other?
                                                                                  Location: Cottonwood, Arizona; Municipality/City/State involvement:
                     Del Smith,                                                  Cottonwood Town supports the trial. Companies involved in trial: APS,
                       Arizona                                                 Mountain Telecommunications, Inc., and Mitsubishi. Number of households
 Arizona PUC        Corporation                        Yes                     involved in trial: Ten. Services being offered/tested. Local Phone service -            N/A                    N/A
                                                                                                                                                                                                            Formatted: Centered
                   Commission,                                                 Not yet; Toll phone service - Not yet; Broadband Internet Access - Yes; Auto
                  Utilities Division                                           Meter Reading - Not yet; Residential Demand Management/Smart Grid/Grid
                                                                                                   Management - Not yet; Other - None.


 Arkansas State      Arthur H.
                                                       No                                                         N/A                                                  No                     No            Formatted: Centered
  Commission         Stuenkel



                    Mark A.
                  Vandervelden,         No. The CPUC is unaware of any
   California
                  CPUC Division        trials or deployments taking place in                                      N/A                                                  N/A                    N/A           Formatted: Centered
     PUC
                   of Strategic                         CA.
                    Planning



  Connecticut     Peter Pescosolido                    No                                                          No                                                  No                     No
                                                                                                                                                                                                            Formatted: Centered




                                                                                                                                                                                                            Formatted: Centered




                                                                                                                                                                                                            Formatted: Font: 10 pt
                                                                                                                                                                                                            Formatted: Font: 10 pt



                                                                                                      9
                                                                                                Appendix B - 12
BPL Report                                                                                                                        NARUC


                                                                                                   * Location;                                                                                       Formatted: Centered
                                                                               * Municipality/City/State involvement (?) in trial;
                                                                                         * Companies involved in trial;                                 Does your State have       Has your state
   State                           Are there any ongoing BPL trials                * Number of households involved in trial;                            any open proceedings       concluded any
                  Contact Person
 Commission                                or deployments?             * Services being offered/tested: (1) Local Phone Service; (2) Toll              that are examining BPL   proceedings on BPL
                                                                         phone service; (3) Broadband Internet Access; (4) Auto Meter                           issues?               issues?
                                                                        Reading; (5) Residential Demand Management/Smart Grid/Grid
                                                                                            Management? (6) Other?

   Delaware
                   Constance A.                                                                                                                                                                      Formatted: Centered
 Public Service                                  No                                                       N/A                                                   No                     No
                     Welde
  Commission                                                                                                                                                                                         Formatted Table

                                                                      Information received for an August 2004 survey response indicated that Florida
                                                                        Power and Light had a small pilot of 25 connections in the FPL system and
                                                                         planned to add 25 more. There was no charge to customers. Gulf Power
  Florida PSC       Rick Moses                   Yes                                                                                                            No                     No
                                                                          reported a trial in Birmingham, Alabama, with less than 200 customers.                                                     Formatted: Centered
                                                                       Progress Energy Florida had a trial in North Carolina where Earthlink Service
                                                                                           was offered to 400 customers in Raleigh.
                                                                                                                                                                                                     Formatted: Centered




                                                                                                                                                                                                     Formatted: Font: 10 pt
                                                                                                                                                                                                     Formatted: Font: 10 pt



                                                                                              9
                                                                                        Appendix B - 13
BPL Report                                                                                                                           NARUC



                                                                                                      * Location;                                                                                            Formatted: Centered
                                                                                  * Municipality/City/State involvement (?) in trial;
                                                                                            * Companies involved in trial;                                 Does your State have            Has your state
   State              Contact         Are there any ongoing BPL trials                * Number of households involved in trial;                            any open proceedings            concluded any     Formatted Table
 Commission           Person                  or deployments?             * Services being offered/tested: (1) Local Phone Service; (2) Toll              that are examining BPL        proceedings on BPL
                                                                            phone service; (3) Broadband Internet Access; (4) Auto Meter                           issues?                    issues?
                                                                           Reading; (5) Residential Demand Management/Smart Grid/Grid
                                                                                               Management? (6) Other?
                                                                                     Location: McCully neighborhood of Honolulu, Hawaii;
                                                                          Municipality/City/State involvement: No; Companies involved: Hawaiian
                                                                              Electric Company and Current Technologies (BPL vendor); Number
                                                                           households involved: Four; Services being offered/tested: Testing VoIP,
                   Lisa Y. Kikuta,                                       broadband internet, utility applications (see below). Local phone service: Yes
 Hawaii State
                        Chief                       Yes                     Toll phone service: Yes Broadband Internet Access? Yes Auto Meter                        No                        No            Formatted: Centered
 Commission
                     Researcher                                               reading? Yes, testing an IP addressable meter. Residential Demand
                                                                           Management/Smart Grid/Grid Management? No, working with vendor to
                                                                            develop load management switch. Other: Testing utility applications at
                                                                              distribution substation - monitoring current, temperature and voltage
                                                                                           measurements/readings, and power quality.
                                                                             Location: South-Central Indiana, more specifically, Martinsville, IN;
                                                                         Municipality/City/State involvement: No Companies involved in trial: South-
                     Joel Fishkin,
 Indiana Utility                                                         Central Indiana REMC and International Broadband Electric Communications,
                   Asst. Director –                                                                                                                                                                          Formatted: Centered
   Regulatory                                       Yes                    Inc. Number of households: 1,100. Services being offered/tested: Local         No, but we had a workshop.           No
                   Telecommunica-
  Commission                                                             phone service - No; Toll phone service - No; Broadband Internet Access - Yes
                    tions Division
                                                                         Auto Meter Reading - No Residential Demand Management/Smart Grid/Grid
                                                                                          Management - No Other - Outdoor cameras.


                   John Ridgway,
 Iowa Utilities
                     Manager -                      No                                                        No                                                     No                        No            Formatted: Centered
    Board
                      Telecom


                   Guy McDonald,
   Kansas             KCC Staff,
                                                                                                                                                                                                             Formatted: Centered
 Corporation            Senior                      No                                                        No                                                     No                        No
 Commission        Telecommunica-
                    tions Analyst
                                                                                                      * Location;                                                                                            Formatted: Centered
                                                                                  * Municipality/City/State involvement (?) in trial;
                                                                                            * Companies involved in trial;                                 Does your State have            Has your state
   State              Contact         Are there any ongoing BPL trials                * Number of households involved in trial;                            any open proceedings            concluded any
 Commission           Person                  or deployments?             * Services being offered/tested: (1) Local Phone Service; (2) Toll              that are examining BPL        proceedings on BPL
                                                                            phone service; (3) Broadband Internet Access; (4) Auto Meter                           issues?                    issues?
                                                                           Reading; (5) Residential Demand Management/Smart Grid/Grid
                                                                                               Management? (6) Other?
                        Carlos                                                                                                                                                                               Formatted: Centered
                                                                          There is an ongoing trial in Potomac, Maryland. It involves the private firm
                     Candelario;                                                                                                                               There are no open
                       Assistant
                                                                         called Current Technologies, which is using PEPCO facilities for the purposes
                                                                                                                                                          proceedings or proceedings                         Formatted Table
 Maryland PSC                                       Yes                  of transmission. There is no government involvement at any level. There are                                           No
                       Director,                                                                                                                           that have been concluded
                                                                            100 residential customers involved and the two services being trialed are                                                        Formatted: Centered
                   Telecommunica-                                                                                                                         on BPL issues in the State.
                                                                                             internet services and auto meter reading.
                        tions                                                                                                                                                                                Formatted: Font: 10 pt
                                                                                                                                                                                                             Formatted: Font: 10 pt



                                                                                                 9
                                                                                           Appendix B - 14
BPL Report                                                                                                      NARUC


                                                      Agawam, MA. Municipality/City State involvement: None. Companies
                                                  involved in trial: Western Massachusetts Electric Co. is starting up a 25-home
                                                  trial in Agawam of a hybrid system that carries Net traffic on medium-voltage
                                                    lines and uses wireless gear for the last-mile connection to homes. Services
                                                       being offered/tested. Local phone service - No Toll phone service - No
 Massachusetts   Ashish Shrestha,
                                                      Broadband Internet Access - Free high-speed internet access. Auto Meter                   Formatted Table
 Department of      Analyst,
                                                   Reading - the electric company is also exploring using the connections to link
 Telecommunic       Telecom         Yes, trial.                                                                                       No   No
                                                    its own equipment, including residential meters, to the Internet. This would
   ations and      Division. &
                                                   allow for remote reading of meters or equipment that measures current flow.
     Energy          Energy
                                                  Residential Demand Management/Smart Grid/Grid Management? See below.
                                                  Other? The utility could install "smart streetlights" that send a message via the
                                                     Internet when their lamps burn out. An electric grid with more monitoring
                                                   devices linked to the utility's operations center could give warning of outages
                                                                           before they occur, officials said.
                                                                                                                                                Formatted: Centered




                                                                                                                                                Formatted: Font: 10 pt
                                                                                                                                                Formatted: Font: 10 pt



                                                                          9
                                                                    Appendix B - 15
BPL Report                                                                                                                     NARUC



                                                                                                    * Location;                                                                                  Formatted: Centered
                                                                                * Municipality/City/State involvement (?) in trial;
                                                                                          * Companies involved in trial;                            Does your State have       Has your state
   State           Contact          Are there any ongoing BPL trials                * Number of households involved in trial;                       any open proceedings       concluded any     Formatted Table
 Commission        Person                   or deployments?             * Services being offered/tested: (1) Local Phone Service; (2) Toll         that are examining BPL   proceedings on BPL
                                                                          phone service; (3) Broadband Internet Access; (4) Auto Meter                      issues?               issues?
                                                                         Reading; (5) Residential Demand Management/Smart Grid/Grid
                                                                                             Management? (6) Other?


                                                                       Consumers Energy Company and the Shpigler Group are implementing a pilot
 Michigan PSC   Laura Chappelle                   Yes                                                                                                       No                     No
                                                                            project for BPL in Grand Ledge, Michigan in the Spring of 2005.                                                      Formatted: Centered



                Natelle Dietrich:                                       Location: Cape Girardeau, Missouri. Municipality/City State involvement:
 Missouri PSC     Regulatory                      Yes                  None known. Companies involded in trial: Ameren Union Electric. Ameren               No                     No
                                                                                                                                                                                                 Formatted: Centered
                 Economist III                                                 has a trial program in this area. Specific details are unknown.



    New         Jody O'Marra,
                                                                                                                                                                                                 Formatted: Centered
  Hampshire     Utility Analyst,                  No                                                      No                                                No                     No
    PUC                III



                    Robert
  New Jersey    Melendez, Issues
                                                  No                                                     N/A                                                No                     No            Formatted: Centered
    BPS           Manager –
                   Telecom

                                                                                                                                                                                                 Formatted: Centered




                                                                                                                                                                                                 Formatted: Font: 10 pt
                                                                                                                                                                                                 Formatted: Font: 10 pt



                                                                                             9
                                                                                       Appendix B - 16
BPL Report                                                                                                                       NARUC



                                                                                                   * Location;                                                                                                Formatted: Centered
                                                                               * Municipality/City/State involvement (?) in trial;
                                                                                         * Companies involved in trial;                                Does your State have         Has your state
   State        Contact       Are there any ongoing BPL trials                     * Number of households involved in trial;                           any open proceedings         concluded any             Formatted Table
 Commission     Person                or deployments?                  * Services being offered/tested: (1) Local Phone Service; (2) Toll             that are examining BPL     proceedings on BPL
                                                                         phone service; (3) Broadband Internet Access; (4) Auto Meter                          issues?                 issues?
                                                                        Reading; (5) Residential Demand Management/Smart Grid/Grid
                                                                                            Management? (6) Other?
                                                                                                                                                                                No. Additional Info: (1)
                                                                                                                                                                                 One additional BPL trial
                                                                                                                                                                               which was much publicized
                                                                                                                                                                               in the past two years was in
                                                                                                                                                                               Penn Yan, New York. That
                                                                                                                                                                                  BPL trial has been shut
                                                                                                                                                                               down apparently due to not
                                                                                                                                                                               being commercially viable,
                                                                                                                                                                                   as well as to its having
                                                                               Location: Briarcliff Manor, New York; Solvay, New York.                                            caused significant radio
                              Yes Broadband Horizons (BH) is the      Municipality/City/State involvement: Ossining Police Dept., Village of Solvay                               frequency interference.
              Steven Sokal,     first company to launch BPL in          Electric Department. Companies involved: Consolidated Edison of New                                     The negative results of the
                Office of      Central Texas. Initial installations     York, Village of Solvay Electric Department/ Ambient Corporation; New                                     Penn Yan test may have
  New York      Economic       began in June 2004. Its offices are     Visions PLC; Earthlink; Main.net PLC. Number of households involved: 2                                       influenced decisions
                                                                                                                                                               No                                             Formatted: Centered
    DPS       Development         based out of Blanco, Texas.         Unknown. Services being offered/tested: Local phone service - No; No Toll                                   whether to proceed with
               and Policy      Additional information about their      phone service - No; No Broadband Internet Access - Yes; Yes Auto Meter                                    some other BPL tests by
              Coordination          services may be found at             Reading: Yes; Yes Residential Demand Management/Smart Grid/Grid                                          utilities in western New
                                   http://www.broadbandhor                 Management: Yes; Yes Other - Substation SCADA control; Video                                         York. (2) The Briar Cliff
                                                                                                 surveillance Telemetry.                                                       Manor test now, apparently,
                                                                                                                                                                               has a documented situation
                                                                                                                                                                                       of harmful radio
                                                                                                                                                                               interference caused by BPL
                                                                                                                                                                                 in that area, and a formal
                                                                                                                                                                               complaint has been filed in
                                                                                                                                                                               the last few weeks with the
                                                                                                                                                                                 FCC. We do not believe
                                                                                                                                                                                    that the FCC has yet
                                                                                                                                                                                    followed up on this.
                                                                                                                                                                                                              Formatted: Centered




                                                                                                                                                                                                              Formatted: Font: 10 pt
                                                                                                                                                                                                              Formatted: Font: 10 pt



                                                                                              9
                                                                                        Appendix B - 17
BPL Report                                                                                                                                 NARUC



                                                                                                           * Location;                                                                                              Formatted: Centered
                                                                                       * Municipality/City/State involvement (?) in trial;
                                                                                                 * Companies involved in trial;                                   Does your State have            Has your state
   State             Contact         Are there any ongoing BPL trials                      * Number of households involved in trial;                              any open proceedings            concluded any     Formatted Table
 Commission          Person                  or deployments?                   * Services being offered/tested: (1) Local Phone Service; (2) Toll                that are examining BPL        proceedings on BPL
                                                                                 phone service; (3) Broadband Internet Access; (4) Auto Meter                             issues?                    issues?
                                                                                Reading; (5) Residential Demand Management/Smart Grid/Grid
                                                                                                    Management? (6) Other?
                                     Yes Duke Power is in the final stages
                                       of evaluating its market trial with
                                       AT&T Corp., Earthlink Inc., and
                                     LecStar Telecom Inc. to provide high-        Progress Energy completed its market trial in August 2004 to provide
                                     speed Internet to about 100 Charlotte        broadband service to about 400 Wake County homes for six months.
 North Carolina    Teresa Kelly                                                                                                                                             No                        No
                                     residents for six months. Out of their      Currently, the company does not have plans for a large-scale commercial                                                            Formatted: Centered
                                       options is to become a wholesale                      rollout of BPL in the company's service territories.
                                     network provider for existing internet
                                         providers, such as EarthLink,
                                            Microsoft, and AT&T.

 New Mexico           Michael
                                                                                                                                                                                                                    Formatted: Centered
    Public           Ripperger;
                                                      No                                                           N/A                                                      No                        No
  Regulation      Telecommunicat
   Comm.          ions Bur. Chief

                                                                                                           * Location;                                                                                              Formatted: Centered
                                                                                       * Municipality/City/State involvement (?) in trial;
                                                                                                 * Companies involved in trial;                                   Does your State have            Has your state
   State             Contact         Are there any ongoing BPL trials                      * Number of households involved in trial;                              any open proceedings            concluded any     Formatted Table
 Commission          Person                  or deployments?                   * Services being offered/tested: (1) Local Phone Service; (2) Toll                that are examining BPL        proceedings on BPL
                                                                                 phone service; (3) Broadband Internet Access; (4) Auto Meter                             issues?                    issues?
                                                                                Reading; (5) Residential Demand Management/Smart Grid/Grid
                                                                                                    Management? (6) Other?

 New Mexico           Michael
                                                                                                                                                                                                                    Formatted: Centered
    Public           Ripperger;
                                                      No                                                           N/A                                                      No                        No
  Regulation      Telecommunicat
   Comm.          ions Bur. Chief

                                                                                                                                                                    Wars are brewing in
                                                                              We have a major BPL program underway in Ohio, specifically in Cincinnati.
  Ohio Public                                                                                                                                                    Cincinnati between Time
                                                                              Cinergy is deploying BPL in certain neighborhoods and is beginning to spread                                                          Formatted: Centered
   Utilities                                                                                                                                                     Warner, Cinergy, and to a
                   Alan Schriber                      Yes                     out. They had a successful pilot program earlier. I have visited with Current                                           N/A
  Commission                                                                                                                                                      lesser extent, Cincinnati
                                                                               Technologies, which is doing the "business side" of the BPL and have seen
   (PUCO)                                                                                                                                                        Bell. The big fight is over
                                                                              their demo house in Maryland. They now have a demo facility in Cincinnati.
                                                                                                                                                                      pole attachments.
                                                                              Location: Cinergy's Electric service territory (Cincinnati Area); AEP Facilities
                                                                                  in Dublin, Ohio. Also, small REC's and Municipal co-ops (just started).
                                                                                    AEP/Amperion: N/A Municipality/City/State involvement: Under
                                      Yes, one trial and one trial that has
                                                                              Cinergy/Current, only to the extent that Municipal electric operations buy into
                                       progressed into a deployment.
    Ohio          Cheryl Williams,                                               the product. None have thus far, although some are considering it. Under
                                          AEP/Amperion (trial) and                                                                                                         None.                     None.          Formatted: Centered
  Commission       Chris Kotting                                              AEP/Amperion: None. Companies involved in trial: Under Cinergy/Current:
                                      Cinergy/Current Communications
                                                                              Cinergy/Current Communications. Under AEP/Amperion: AEP/Ohio Power,
                                          (deployment in progress).
                                                                                      and Amperion. Number of households involved in trial: Under                                                                   Formatted: Font: 10 pt
                                                                                Cinergy/Current, 100 in trial, deployment customer counts unknown at this
                                                                               time. Under AEP/Amperion, None (At this time, the trial is limited to AEP's                                                          Formatted: Font: 10 pt



                                                                                                      9
                                                                                                Appendix B - 18
BPL Report                                                                                        NARUC


                                         own facilities). Services being offered/tested: Local phone service; No for
                                             Cinergy/Current; No for AEP/Amperion. Toll phone service: No for
                                        Cinergy/Current; No for AEP/Amperion. Broadband Internet Access: Yes for
                                        Cinergy/Current; Yes for AEP/Amperion. Auto Meter Reading? Testing, for
                                              Cinergy/Current; Testing, for AEP/Amperion. Residential Demand
                                         Management/Smart Grid/Grid Mgmt: Testing, for Cinergy/Current; Testing,
                                          for AEP/Amperion. Other: Unknown, for Cinergy/Current; Unknown for
                                                                       AEP/Amperion.
                   Steve Wilt,
  Oklahoma        Public Utility
                                                                                                                                 Formatted: Centered
 Public Utility    Regulatory      No                                       No                                         No   No
 Commission         Analyst –
                    Telecom.

                                                                                                                                 Formatted: Centered




                                                                                                                                 Formatted: Font: 10 pt
                                                                                                                                 Formatted: Font: 10 pt



                                                               9
                                                         Appendix B - 19
BPL Report                                                                                                                                  NARUC



                                                                                                           * Location;
                                                                                       * Municipality/City/State involvement (?) in trial;
                                                                                                 * Companies involved in trial;                                    Does your State have             Has your state
   State           Contact        Are there any ongoing BPL trials                         * Number of households involved in trial;                               any open proceedings             concluded any           Formatted Table
 Commission        Person                 or deployments?                      * Services being offered/tested: (1) Local Phone Service; (2) Toll                 that are examining BPL         proceedings on BPL
                                                                                 phone service; (3) Broadband Internet Access; (4) Auto Meter                              issues?                     issues?
                                                                                Reading; (5) Residential Demand Management/Smart Grid/Grid
                                                                                                    Management? (6) Other?
                                        No Currently there are no trial
                                    deployments, or network construction
                                    of this technology in the State. There
                                    is some interest in the technology for
                                       use by electric companies for the
                                        purpose of Auto Meter Reading
                                    (AMR). There is one operator, which
                                     serves a sliver of the Eastern Oregon
                                       border area near Idaho, who has
                                    recently completed a trial deployment
                   Rick Carter,   in Meridian, Idaho, west of Boise. The
                MIEEE, Senior        Company is IDAComm, which is an                                                                                                 There are no current      There have been no formal
 Oregon PUC                                                                                                         N/A
                Telecommunica-     affiliate of IDACorp, which also owns                                                                                          proceedings regarding BPL.   proceedings regarding BPL.   Formatted: Centered
                 tions Engineer      Idaho Power. I have talked with the
                                  operators of a BPL system in Sault Ste.
                                      Marie, Canada, regarding their trial
                                  deployment, and several conversations
                                       with technical representatives at
                                         Amperion, who manufacture
                                  equipment for BPL. These discussions
                                          took place to help develop a
                                           presentation for informing
                                         Commissioners of the nascent
                                                   technology.
                                        Pennsylvania experience. PPL
                                                                                 Pennsylvania involvement at FCC. Pennsylvania was one of two states that
                                        Telecomm (a subsidiary of PPL
                                                                                  submitted comments in the recently concluded BPL docket. The PaPUC
                                       Corporation, a major provider of
                                                                                  suggested that (a) an ancillar NOPR was needed to address non-technical
                                       electricity in Eastern and Central
                                                                                    issues, such as universal service and the role of the states; (b) the final
                                      Pennsylvania to approximately 1.3
                                                                              regulations should not apply for 36 months to entities deploying BPL as of the
                                    million customers) has been involved
                                                                                 date of enactment, unless there is evidence establishing an inability to solve
                                    with BPL since 1999. PPL originally
                                                                               technical issues absent application of any final BPL rules; (c) the spectrum be
                                   used Main.net technology supplied by
                                                                                  divided into "notched" or exempt sections (primarily for Verizon, Spring,
 Pennsylvania                         Amperion, Inc., in an experiment in
                Joseph Witmer                                                  Boeing, ARR, CSAA, NAS-RAS, and NCTA) and non-notched (non-exempt)                            N/A                          N/A               Formatted: Centered
    PUC                                    Whitehall, PA, that passed
                                                                              sections (primarily all other spectrum); (d) BPL equipment should incorporate
                                      approximately 2,500 homes. PPL
                                                                              state-of-the-art power reduction, frequency modulation, and shut-off devices to
                                      estimates that of the approximately
                                                                                     mitigate any potential interference; (e) the FCC should create a BPL
                                       375,000 customers evaluated for
                                                                               Engineering Task Force modelled on the Internet Engineering Task Force; (f)
                                   potential BPL service, more than two-
                                                                                  procedures should be developed for posting information about BPL in the
                                   thirds do not have access to equivalent
                                                                                respective states; and (g) state commission should have the option of "opting
                                    two-way broadband service. PPL has
                                                                                    in" to be a first-cut mediator for any alleged interference from BPL to
                                    not yet made a final decision on a full
                                                                               customers or entities using spectrum that experiences interference from BPL.
                                               scale deployment.



                                                                                                                                                                                                                            Formatted: Font: 10 pt
                                                                                                                                                                                                                            Formatted: Font: 10 pt



                                                                                                      9
                                                                                                Appendix B - 20
BPL Report                                                                                                                      NARUC


                                                                                                 * Location;
                                                                             * Municipality/City/State involvement (?) in trial;
                                                                                       * Companies involved in trial;                                 Does your State have       Has your state
   State          Contact        Are there any ongoing BPL trials                * Number of households involved in trial;                            any open proceedings       concluded any     Formatted: Centered
 Commission       Person                 or deployments?             * Services being offered/tested: (1) Local Phone Service; (2) Toll              that are examining BPL   proceedings on BPL
                                                                       phone service; (3) Broadband Internet Access; (4) Auto Meter                           issues?               issues?
                                                                      Reading; (5) Residential Demand Management/Smart Grid/Grid
                                                                                          Management? (6) Other?
                                                                    Location: Fayetteville, Tennessee. Municipality/City/State involvement: Yes
                                                                       Companies involved in trial: Fayetteville Public Utilities & GridStream
  Tennessee        Darlene                                           TechnologYes Number of households involved: this trial is no longer active,
                                                                                                                                                                                                   Formatted: Centered
  Regulatory   Standley, Chief                 Yes                  two approximately three businesses still have modems that are active. Services            No                     No
  Authority      of Utilities                                          being offered/tested: Local hone service - No; Toll phone service - No;                                                     Formatted Table
                                                                       Broadband Internet Access - Yes; Auto Meter Reading - No; Residential
                                                                        Demand Management/Smart Grid/Grid Management - No; Other - No
                                                                                                                                                                                                   Formatted: Centered




                                                                                                                                                                                                   Formatted: Font: 10 pt
                                                                                                                                                                                                   Formatted: Font: 10 pt



                                                                                            9
                                                                                      Appendix B - 21
BPL Report                                                                                                                                    NARUC



                                                                                                                 * Location;
                                                                                                                                                                                                                                     Formatted: Centered
                                                                                              * Municipality/City/State involvement (?) in trial;
                                                                                                       * Companies involved in trial;                                  Does your State have any open
    State                            Are there any ongoing BPL trials or                                                                                                                                 Has your state concluded any proceedings on
                  Contact Person                                                                  * Number of households involved in trial;                         proceedings that are examining BPL                                    Formatted Table
  Commission                                    deployments?                                                                                                                                                             BPL issues?
                                                                                 * Services being offered/tested: (1) Local Phone Service; (2) Toll phone                         issues?
                                                                                    service; (3) Broadband Internet Access; (4) Auto Meter Reading; (5)
                                                                                Residential Demand Management/Smart Grid/Grid Management? (6) Other?
                                     Yes Broadband Horizons (BH) is the
                                         first company to launch BPL in
                                       Central Texas. Initial installations
                                                                                  Location: Broadband Horizons' home office is located in Blanco, Texas. It
                                       began in June 2004. Its offices are
                                                                                    currently has pilot projects in Burnet, Weimar and Blanco, Texas. BH is
                                           based out of Blanco, Texas.
                                                                                 initially targeting rural and semi-rural communities, generally under 20,000-
                                       Additional information about their
                                                                                30,000 population. Municipality/City/State involvement. The City of Blanco
                                             services may be found at
                                                                               is served by Perdenales Electric Cooperative, a private electric utility owned by
                                    http://www.broadbandhorizons.com/in
                                                                                  its customers. The City of Burnet owns its own electric utility. The City of
                                    dex.htm. Additionally, in summer of
 Texas (Public                                                                  Weimar is served by the Fayette Electric Cooperative, District 6. The current
                   Sheri Sanders,   2004, TXU Electric Delivery hosted a                                                                                                                                                             Formatted: Centered
    Utility                                                                        contracts are for limited projects for 90 to 180 days. For the pilot projects,
                    Atty, Policy     small-scale BPL retail demonstration
 Commission of                                                                   there will be no cost to the muncipal utility districts. Companies involved in              No                          No
                   Development      project in Irving, Texas, providing five
    Texas                                                                           Trial: Broadband Horizons and its ISP, Momentum Online.. Number of
                     Division       homes with Internet service to test the
   (PUCT))                                                                          households involved in trial: The initial pilots are limited in size, and the
                                      technical feasibility of BPL. Utility
                                                                               company reports approximately 25 users on the system, mostly in Weimar, TX.
                                        applications were not tested. The
                                                                                In Burnet, BH provides BPL broadband service to a municipal building and a
                                    vendor withdrew interest. Larger scale
                                                                                   nearby commercial building. Services being offered/tested: Local phone
                                        commercial deployment is being
                                                                               service - Unknown; Toll phone service - Unknown; Broadband Internet Access
                                     considered, and TXU is interviewing
                                                                                          - Yes Auto Meter Reading - Unknown. Residential Demand
                                       suppliers, technology partners, and
                                                                                     Management/Smart Grid/Grid Management - Unknown. Other - None.
                                       retail ISP providers. No additional
                                         information about this project is
                                                     available.
                                                                                 One trial is located in Wenatchee Heights, a housing development of approx.
                                                                               35 homes using capacitive coupling, HPA (Home Plug Alliance) protocol BPL
                                                                               equipment provided by Gridstream. Started in May of 2004 this trial has never
                                                                                  fully functional. A total equipment redesign will be completed and the trial
                                                                                    will restart early 1st Q 2005. The second trial is in the Peshasin area and
                                                                                   connects approx. 30 homes using induction coupling BPL equipment from
                                                                                MainNet providing 500-700Kb of bandwidth. The trial is functional and in use
  Washington
                                                                                by two customers at this time. Ham radio organizations have assisted in radio                                                                        Formatted: Centered
  Utilities and   Bob Williamson,     Yes two trials are in progress by
                                                                               interference testing at both locations. using capacity coupled, HPA (Home Plug
 Transportation    Sr. Technical     Chelan County PUD in rural Eastern
                                                                                       Alliance) protcolprotocol BPA equipment provided by GridStream.
  Commission           Staff           Washington State. Washington
                                                                                 Gridstream. Started in May 2004 this trial has never been fully functional. A
   (WUTC)
                                                                                 total equipment redesign ha been completed and the trial is set to begin again
                                                                                  the first quarter of 2005. The second trial is in the Peshastin area connecting
                                                                                      approx. 30 homes using inductive coupled, proprietary protocol BPL
                                                                                 equipment proprietary protocol, BPL equipment provided by MainNet. Fully
                                                                                functional since its inception in September of 2004, this system provides 500-
                                                                               700 Kb of broadband data bandwidth per subscriber. Ham radio operators have
                                                                                             assisted with radio interference testing at both locations.

                                                                                                 APPENDIX B

                                                                       BROADBAND OVER POWERLINES (BPL)
                                                                             -- State Survey Results --
                                                                                                                                                                                                                                     Formatted: Font: 10 pt
                                                                                                                                                                                                                                     Formatted: Font: 10 pt



                                                                                                        9
                                                                                                  Appendix B - 22
BPL Report                                                                              NARUC


                                                                February 2005                                                                     Formatted: Font: 11 pt


This short survey was conducted at the request of the NARUC Broadband over Power Lines (BPL) Task Force Chair, Commissioner Laura Chappelle       Formatted: Font: 11 pt
of Michigan. The question was originally posed to State PUC/PSCs on November 19, 2004. The survey contains responses from all 50 States and the
District of Columbia.


Responses: (Listed alphabetically by State)




                                                                                                                                                  Formatted: Font: 10 pt
                                                                                                                                                  Formatted: Font: 10 pt



                                                                    9
                                                              Appendix B - 23
    BPL Report                                                                                                                         NARUC




                                                                               QUERY FROM NARUC BPL TASK FORCE

                                                                                                                                                                                                                               Formatted Table
                                                                              * Location;
                                                                              * Municipality/City/State involvement (?) in trial;
                                                                              * Companies involved in trial;                                                                                                  Has your state
                                                                                                                                                                       Does your State have any
   State                                   Are there any ongoing BPL trials   * Number of households involved in trial;                                                                                       concluded any
                    Contact Person                                                                                                                                     open proceedings that are
 Commission                                        or deployments?            * Services being offered/tested: (1) Local Phone Service; (2) Toll phone                                                        proceedings on
                                                                                                                                                                       examining BPL issues?
                                                                              service; (3) Broadband Internet Access; (4) Auto Meter Reading; (5)                                                             BPL issues?
                                                                              Residential Demand Management/Smart Grid/Grid Management? (6)
                                                                              Other?
                                                                                                                                                                       No previous or scheduled
                                                                                                                                                                       proceedings. While there may
                                                                              Location: Hoover, Alabama; Municipality/City/State involvement (?) in trial: no;
                                                                                                                                                                       be other trials in Alabama, the
                                                                              Companies involved in trial: Southern Telecom, Alabama Power Company; Number of
                                                                                                                                                                       only jurisdictional electric utility
Alabama            Gene Hanes,                                                households involved in trial: 115; Services being offered/tested: (1) Local Phone
                                                                                                                                                                       the APSC regulates is Alabama
Public Service     Energy Federal          Yes                                Service: not yet; (2) Toll phone service: not yet; (3) Broadband Internet Access: yes;                                          No
                                                                                                                                                                       Power Company. The
Commission         Affairs                                                    (4) Auto Meter Reading: not yet; (5) Residential Demand Management/Smart
                                                                                                                                                                       Commission has no authority or
                                                                              Grid/Grid Management: not yet; (6) Other: not yet.
                                                                                                                                                                       jurisdiction over municipals or
                                                                                                                                                                       cooperatives.



Regulatory         Lori Kenyon,
Commission of      Common Carrier          No                                 N/A                                                                                      No                                     No
Alaska             Specialist

                                                                              Location: Cottonwood, Arizona; Municipality/City/State involvement: Cottonwood
                                                                              Town supports the trial. Companies involved in trial: APS, Mountain
Arizona                                                                       Telecommunications, Inc., and Mitsubishi. Number of households involved in trial:
                   Del Smith,
Corporation                                Yes                                Ten. Services being offered/tested. (1) Local Phone service - Not yet; (2) Toll phone    N/A                                    N/A
                   Utilities Division
Commission                                                                    service - Not yet; (3) Broadband Internet Access - Yes; (4) Auto Meter Reading - Not
                                                                              yet; (5) Residential Demand Management/Smart Grid/Grid Management - Not yet; (6)
                                                                              Other - None.

Arkansas
Public Service     Arthur H. Stuenkel      No                                 N/A                                                                                      No                                     No
Commission



                   Mark A.
California
                   Vandervelden, CPUC
Public Utilities                           No                                 N/A                                                                                      N/A                                    N/A
                   Division of Strategic
Commission
                   Planning



Colorado           Warren Wendling,
Public Utilities   Chief Professional      No                                 N/A                                                                                      N/A                                    N/A              Formatted: Font: 7 pt
Commission         Engineer
                                                                                                                                                                                                                               Formatted: Font: 10 pt
                                                                                                                                                                                                                               Formatted: Font: 10 pt



                                                                                                   9
                                                                                             Appendix B - 24
    BPL Report                                                                                                                                NARUC



                                                                                   * Location;
                                                                                   * Municipality/City/State involvement (?) in trial;
                                                                                   * Companies involved in trial;                                                                                              Has your state
                                                                                                                                                                              Does your State have any
   State                                 Are there any ongoing BPL trials          * Number of households involved in trial;                                                                                   concluded any    Formatted Table
                     Contact Person                                                                                                                                           open proceedings that are
 Commission                                      or deployments?                   * Services being offered/tested: (1) Local Phone Service; (2) Toll phone                                                    proceedings on
                                                                                                                                                                              examining BPL issues?
                                                                                   service; (3) Broadband Internet Access; (4) Auto Meter Reading; (5)                                                         BPL issues?
                                                                                   Residential Demand Management/Smart Grid/Grid Management? (6)
                                                                                   Other?

Connecticut
Department of
                   Peter Pescosolido    No                                         N/A                                                                                        No                               No
Public Utility
Control



Delaware
Public Service     Constance A. Welde   No                                         N/A                                                                                        No                               No
Commission



District of
                                                                                                                                                                              We have opened a proceeding -
Columbia Public
                   Ellen Brown          No                                         N/A                                                                                        F.C. No. 1021. That proceeding   No
Service
                                                                                                                                                                              has not been concluded.
Commission


                                                                                   Information received for an August 2004 survey response indicated that Florida Power
Florida                                                                            and Light had a small pilot of 25 connections in the FPL system and planned to add 25
Public Service     Rick Moses           Yes                                        more. There was no charge to customers. Gulf Power reported a trial in Birmingham,         No                               No
Commission                                                                         Alabama, with less than 200 customers. Progress Energy Florida had a trial in North
                                                                                   Carolina where Earthlink Service was offered to 400 customers in Raleigh.


Georgia            Leon Bowles,
Public Service     Unit Director,       No                                         N/A                                                                                        No                               No
Commission         Telecommunications

                                                                                   Location: McCully neighborhood of Honolulu, Hawaii; Municipality/City/State
                                                                                   involvement: No; Companies involved: Hawaiian Electric Company and Current
                                                                                   Technologies (BPL vendor); Number households involved: Four; Services being
                                                                                   offered/tested: Testing VoIP, broadband internet, utility applications (see below). (1)
Hawaii
                   Lisa Y. Kikuta,                                                 Local phone service: Yes (2) Toll phone service: Yes (3) Broadband Internet Access?
Public Utilities                        Yes                                                                                                                                   No                               No
                   Chief Researcher                                                Yes (4) Auto Meter reading? Yes, testing an IP addressable meter. (5) Residential
Commission
                                                                                   Demand Management/Smart Grid/Grid Management? No, working with vendor to
                                                                                   develop load management switch. (6) Other: Testing utility applications at distribution
                                                                                   substation - monitoring current, temperature and voltage measurements/readings, and
                                                                                   power quality.
                                                                                   Location: Boise; Municipality/City/State involvement (?) in trial: No; Companies
                                        Idacomm, a sister company of Idaho
                                                                                   involved in trial: Idacomm; Number of households involved in trial: There were
                                        Power, the largest IOU in the state, has
Idaho                                                                              approximately 50 households participating in the trials at the end of 2004. More are
                                        conducted limited trials at employee
Public Utilities   Wayne Hart                                                      expected as the subdivisions build out; Services being offered/tested: (1) Local Phone     No                               No
                                        residences, and is currently conducting
Commission
                                        limited technology trials in two
                                                                                   Service; (2) Toll phone service; (3) Broadband Internet Access; (4) Auto Meter                                                               Formatted: Font: 10 pt
                                                                                   Reading; (5) Residential Demand Management/Smart Grid/Grid Management? (6)
                                        subdivisions.
                                                                                   Other? At this stage of the tests, only high speed internet services are being provided.                                                     Formatted: Font: 10 pt



                                                                                                         9
                                                                                                   Appendix B - 25
     BPL Report                                                                                                                                      NARUC


                                                                                                                                                                                                                                      Formatted: Font: 7 pt
                                                                                          * Location;
                                                                                          * Municipality/City/State involvement (?) in trial;
                                                                                          * Companies involved in trial;                                                                                             Has your state
                                                                                                                                                                                    Does your State have any
   State                                  Are there any ongoing BPL trials                * Number of households involved in trial;                                                                                  concluded any    Formatted Table
                    Contact Person                                                                                                                                                  open proceedings that are
 Commission                                       or deployments?                         * Services being offered/tested: (1) Local Phone Service; (2) Toll phone                                                   proceedings on
                                                                                                                                                                                    examining BPL issues?
                                                                                          service; (3) Broadband Internet Access; (4) Auto Meter Reading; (5)                                                        BPL issues?
                                                                                          Residential Demand Management/Smart Grid/Grid Management? (6)
                                                                                          Other?
Illinois
                   Bud Green, Chief
Commerce                                  No                                              N/A                                                                                       No                               No
                   Telecom Engineer
Commission
                                                                                          Location: South-Central Indiana, more specifically, Martinsville, IN;
                                                                                          Municipality/City/State involvement: No Companies involved in trial: South- Central
                   Joel Fishkin,
Indiana Utility                                                                           Indiana REMC and International Broadband Electric Communications, Inc. Number of
                   Assistant. Director,
Regulatory                                Yes                                             households: 1,100. Services being offered/tested: Local phone service - No; Toll          No, but we had a workshop.       No
                   Telecommunications
Commission                                                                                phone service - No; Broadband Internet Access - Yes Auto Meter Reading - No
                   Division
                                                                                          Residential Demand Management/Smart Grid/Grid Management - No Other - Outdoor
                                                                                          cameras.

Iowa Utilities     John Ridgway,
                                          No                                              No                                                                                        No                               No
Board              Manager - Telecom


                   Guy McDonald, KCC
Kansas
                   Staff, Senior
Corporation                               No                                              No                                                                                        No                               No
                   Telecommunications
Commission
                   Analyst


                   Jim Stevens, CPA,
Kentucky
                   Telecommunications
Public Service                            No                                              N/A                                                                                       No                               No
                   Revenue
Commission
                   Requirements Branch



Louisiana
                   Eve Kahao Gonzalez,
Public Service                            No                                              N/A                                                                                       No                               No
                   General Counsel
Commission



                                          No BPL activity in Maine. There is a
Maine
                   Phillip Lindley,       rumor of a pilo project in southern Maine
Public Utilities                                                                          N/A                                                                                       No                               No
                   Utilities Analyst      using a utility district's plant, but nothing
Commission
                                          to report.


                                                                                          There is an ongoing trial in Potomac, Maryland. It involves the private firm called
                                                                                                                                                                                    There are no open proceedings
Maryland           Carlos Candelario,                                                     Current Technologies, which is using PEPCO facilities for the purposes of
                                                                                                                                                                                    or proceedings that have been
Public Service     Assistant Director,    Yes                                             transmission. There is no government involvement at any level. There are 100                                               No
                                                                                                                                                                                    concluded on BPL issues in the
Commission         Telecommunications                                                     residential customers involved and the two services being trialed are internet services
                                                                                                                                                                                    State.
                                                                                          and auto meter reading.
                                                                                                                                                                                                                                      Formatted: Font: 10 pt
                                                                                                                                                                                                                                      Formatted: Font: 10 pt



                                                                                                                9
                                                                                                          Appendix B - 26
     BPL Report                                                                                                                      NARUC



                                                                           * Location;
                                                                           * Municipality/City/State involvement (?) in trial;
                                                                           * Companies involved in trial;                                                                                                Has your state
                                                                                                                                                                     Does your State have any
   State                                Are there any ongoing BPL trials   * Number of households involved in trial;                                                                                     concluded any    Formatted Table
                    Contact Person                                                                                                                                   open proceedings that are
 Commission                                     or deployments?            * Services being offered/tested: (1) Local Phone Service; (2) Toll phone                                                      proceedings on
                                                                                                                                                                     examining BPL issues?
                                                                           service; (3) Broadband Internet Access; (4) Auto Meter Reading; (5)                                                           BPL issues?
                                                                           Residential Demand Management/Smart Grid/Grid Management? (6)
                                                                           Other?
                                                                           Agawam, MA. Municipality/City State involvement: None. Companies involved in
                                                                           trial: Western Massachusetts Electric Co. is starting up a 25-home trial in Agawam of
                                                                           a hybrid system that carries Net traffic on medium-voltage lines and uses wireless gear
                                                                           for the last-mile connection to homes. Services being offered/tested. (1) Local phone
                                                                           service - No (2) Toll phone service - No (3) Broadband Internet Access - Free high-
Massachusetts
                   Ashish Shrestha,                                        speed internet access. (4) Auto Meter Reading - the electric company is also exploring
Department of
                   Analyst, Telecom     Yes, trial.                        using the connections to link its own equipment, including residential meters, to the     No                                  No
Telecommunicat
                   Division. & Energy                                      Internet. This would allow for remote reading of meters or equipment that measures
ions and Energy
                                                                           current flow. (5) Residential Demand Management/Smart Grid/Grid Management?
                                                                           See below. (6) Other? The utility could install "smart streetlights" that send a
                                                                           message via the Internet when their lamps burn out. An electric grid with more
                                                                           monitoring devices linked to the utility's operations center could give warning of
                                                                           outages before they occur, officials said.
Michigan
                   Laura Chappelle,                                        Consumers Energy Company and the Shpigler Group are implementing a pilot project
Public Service                          Yes                                                                                                                          No                                  No
                   Commissioner                                            for BPL in Grand Ledge, Michigan in the Spring of 2005.
Commission

Minnesota                                                                                                                                                            No. Additional Information:
Public Utilities   Diane Wells          No                                 N/A/                                                                                      Rochester Public Utilities is       No.
Commission                                                                                                                                                           doing a trial of BPL.

Mississippi
Public Service     Patricia Trantham    No                                 N/A                                                                                       N/A                                 N/A
Commission

Missouri           Natelle Dietrich:                                       Location: Cape Girardeau, Missouri. Municipality/City State involvement: None
Public Service     Regulatory           Yes                                known. Companies involved in trial: Ameren Union Electric. Ameren has a trial             No                                  No
Commission         Economist III                                           program in this area. Specific details are unknown.

Montana
Public Service     Mike Lee             No                                 N/A                                                                                       No                                  No
Commission

                                                                                                                                                                     None. There is proposed
                                                                                                                                                                     legislation (LB 136) titled the
                                                                                                                                                                     "Public Power Infrastructure
Nebraska                                                                                                                                                             Act" that centers on the
Public Service     Gene Hand                                                                                                                                         difference between information
                                        No                                 N/A                                                                                                                           No
Commission                                                                                                                                                           service and telecommunications
                                                                                                                                                                     service including establishing
                                                                                                                                                                     that the governing body of the
                                                                                                                                                                     public power supplier will be the
                                                                                                                                                                     sole regulator.                                      Formatted: Font: 10 pt
                                                                                                                                                                                                                          Formatted: Font: 10 pt



                                                                                                9
                                                                                          Appendix B - 27
     BPL Report                                                                                                                       NARUC


                                                                             * Location;
                                                                             * Municipality/City/State involvement (?) in trial;
                                                                             * Companies involved in trial;                                                                                       Has your state
                                                                                                                                                                      Does your State have any
   State                                  Are there any ongoing BPL trials   * Number of households involved in trial;                                                                            concluded any
                    Contact Person                                                                                                                                    open proceedings that are
 Commission                                       or deployments?            * Services being offered/tested: (1) Local Phone Service; (2) Toll phone                                             proceedings on
                                                                                                                                                                      examining BPL issues?
                                                                             service; (3) Broadband Internet Access; (4) Auto Meter Reading; (5)                                                  BPL issues?
                                                                             Residential Demand Management/Smart Grid/Grid Management? (6)
                                                                             Other?

Nevada
                   Charlie Bolle,
Public Utilities
                   Manager, Policy        No                                 N/A                                                                                      No                          No
Commission
                   Analysis



New Hampshire
                   Jody O'Marra,
Public Utilities                          No                                 No                                                                                       No                          No
                   Utility Analyst, III
Commission



New Jersey         Robert Melendez,
Board of Public    Issues Manager –       No                                 N/A                                                                                      No                          No
Utilities          Telecom



New Mexico
                   Michael Ripperger;
Public
                   Telecommunications     No                                 N/A                                                                                      No                          No
Regulation
                   Bur. Chief
Comm.

                                                                             Location: Briarcliff Manor, New York; Solvay, New York. Municipality/City/State
                                                                             involvement: Ossining Police Dept., Village of Solvay Electric Department.
                                                                             Companies involved: Consolidated Edison of New York, Village of Solvay Electric
                   Steven Sokal, Office
New York State                                                               Department/ Ambient Corporation; New Visions PLC; Earthlink; Main.net PLC.
                   of Economic
Public Service                            Yes                                Number of households involved: 2 Unknown. Services being offered/tested: (1)             No                          No
                   Development and
Commission                                                                   Local phone service - No; (2) Toll phone service - No; (3) Broadband Internet Access -
                   Policy Coordination
                                                                             Yes; (4) Auto Meter Reading: Yes; (5) Residential Demand Management/Smart
                                                                             Grid/Grid Management: Yes; (6) Other - Substation SCADA control; Video
                                                                             surveillance Telemetry.




                                                                                                                                                                                                                   Formatted: Font: 10 pt
                                                                                                                                                                                                                   Formatted: Font: 10 pt



                                                                                                  9
                                                                                            Appendix B - 28
     BPL Report                                                                                                                                NARUC



                                                                                   * Location;
                                                                                   * Municipality/City/State involvement (?) in trial;
                                                                                   * Companies involved in trial;                                                                                                     Has your state
                                                                                                                                                                                 Does your State have any
   State                              Are there any ongoing BPL trials             * Number of households involved in trial;                                                                                          concluded any    Formatted Table
                  Contact Person                                                                                                                                                 open proceedings that are
 Commission                                   or deployments?                      * Services being offered/tested: (1) Local Phone Service; (2) Toll phone                                                           proceedings on
                                                                                                                                                                                 examining BPL issues?
                                                                                   service; (3) Broadband Internet Access; (4) Auto Meter Reading; (5)                                                                BPL issues?
                                                                                   Residential Demand Management/Smart Grid/Grid Management? (6)
                                                                                   Other?
                                                                                   Progress Energy completed its market trial in August 2004 to provide broadband
                                                                                   service to about 400 Wake County homes for six months. Currently, the company does
                                                                                   not have plans for a large-scale commercial rollout of BPL in the company's service
                                      Yes Duke Power is in the final stages of
                                                                                   territories.
                                      evaluating its market trial with AT&T
                                                                                   Integrated communications provider Fonix Telecom is partnering through its
                                      Corp., Earthlink Inc., and LecStar
                                                                                   subsidiary, LecStar Telecom, with Duke Power to expand on ongoing test of broadband
                                      Telecom Inc. to provide high-speed
North Carolina                                                                     over power line (BPL) technology and market acceptance.
                                      Internet to about 100 Charlotte residents
Utilities        Teresa Kelly                                                      The trial, which will be expanded to 10,000 to 15,000 homes in North Carolina and             No                                   No
                                      for six months. Out of their options is to
Commission                                                                         South Carolina, represents an expansion of a 500-home trial currently being conducted
                                      become a wholesale network provider for
                                                                                   by the companies. The trial's specific locations will be determined in the first quarter of
                                      existing internet providers, such as
                                                                                   2005, and the companies expect service to be available to businesses and consumers in
                                      EarthLink, Microsoft, and AT&T.
                                                                                   some markets in mid-2005.
                                                                                   As part of the BPL trials, Fonix also is continuing to test Voice over IP via BPL. This
                                                                                   service will be tested by current trial participants and is expected to become available
                                                                                   to all customers in the next phase of the trial by mid-2005.
North Dakota
                 Tony Clark,
Public Service                        No                                           N/A                                                                                           No                                   No
                 Commissioner
Commission

                                                                                   We have a major BPL program underway in Ohio, specifically in Cincinnati. Cinergy             Wars are brewing in Cincinnati
Ohio Public
                                                                                   is deploying BPL in certain neighborhoods and is beginning to spread out. They had a          between Time Warner, Cinergy,
Utilities
                 Alan Schriber        Yes                                          successful pilot program earlier. I have visited with Current Technologies, which is          and to a lesser extent, Cincinnati   No
Commission
                                                                                   doing the "business side" of the BPL and have seen their demo house in Maryland.              Bell. The big fight is over pole
(PUCO)
                                                                                   They now have a demo facility in Cincinnati.                                                  attachments.
                                                                                   Location: Cinergy's Electric service territory (Cincinnati Area); AEP Facilities in
                                                                                   Dublin, Ohio. Also, small REC's and Municipal co-ops (just started). AEP/Amperion:
                                                                                   N/A Municipality/City/State involvement: Under Cinergy/Current, only to the extent
                                                                                   that Municipal electric operations buy into the product. None have thus far, although
                                                                                   some are considering it. Under AEP/Amperion: None. Companies involved in trial:
                                                                                   Under Cinergy/Current: Cinergy/Current Communications. Under AEP/Amperion:
                                      Yes, one trial and one trial that has
                                                                                   AEP/Ohio Power, and Amperion. Number of households involved in trial: Under
                                      progressed into a deployment.
Ohio             Cheryl Williams,                                                  Cinergy/Current, 100 in trial, deployment customer counts unknown at this time.
                                      AEP/Amperion (trial) and                                                                                                                   No                                   No
Commission       Chris Kotting                                                     Under AEP/Amperion, None (At this time, the trial is limited to AEP's own facilities).
                                      Cinergy/Current Communications
                                                                                   Services being offered/tested: (1) Local phone service; No for Cinergy/Current; No for
                                      (deployment in progress).
                                                                                   AEP/Amperion. (2) Toll phone service: No for Cinergy/Current; No for
                                                                                   AEP/Amperion. (3) Broadband Internet Access: Yes for Cinergy/Current; Yes for
                                                                                   AEP/Amperion. (4) Auto Meter Reading? Testing, for Cinergy/Current; Testing, for
                                                                                   AEP/Amperion. (5) Residential Demand Management/Smart Grid/Grid Mgmt:
                                                                                   Testing, for Cinergy/Current; Testing, for AEP/Amperion. (6) Other: Unknown, for
                                                                                   Cinergy/Current; Unknown for AEP/Amperion.

Oklahoma         Steve Wilt, Public
Public Utility   Utility Regulatory   No                                           No                                                                                            No                                   No
Commission       Analyst – Telecom.
                                                                                                                                                                                                                                       Formatted: Font: 10 pt
                                                                                                                                                                                                                                       Formatted: Font: 10 pt



                                                                                                         9
                                                                                                   Appendix B - 29
     BPL Report                                                                                                                                 NARUC


                                                                                      * Location;
                                                                                      * Municipality/City/State involvement (?) in trial;
                                                                                      * Companies involved in trial;                                                                                        Has your state
                                                                                                                                                                                Does your State have any
   State                                 Are there any ongoing BPL trials             * Number of households involved in trial;                                                                             concluded any
                    Contact Person                                                                                                                                              open proceedings that are
 Commission                                      or deployments?                      * Services being offered/tested: (1) Local Phone Service; (2) Toll phone                                              proceedings on
                                                                                                                                                                                examining BPL issues?
                                                                                      service; (3) Broadband Internet Access; (4) Auto Meter Reading; (5)                                                   BPL issues?
                                                                                      Residential Demand Management/Smart Grid/Grid Management? (6)
                                                                                      Other?
                                         No Currently there are no trial
                                         deployments, or network construction of
                                         this technology in the State. There is
                                         some interest in the technology for use by
                                         electric companies for the purpose of
                                         Auto Meter Reading (AMR). There is
                                         one operator, which serves a sliver of the
                                         Eastern Oregon border area near Idaho,
                                         who has recently completed a trial
                                         deployment in Meridian, Idaho, west of
                   Rick Carter, MIEEE,
Oregon                                   Boise. The Company is IDAComm,
                   Senior
Public Utilities                         which is an affiliate of IDACorp, which      N/A                                                                                       No                          No
                   Telecommunications
Commission                               also owns Idaho Power. I have talked
                   Engineer
                                         with the operators of a BPL system in
                                         Sault Ste. Marie, Canada, regarding their
                                         trial deployment, and several
                                         conversations with technical
                                         representatives at Amperion, who
                                         manufacture equipment for BPL. These
                                         discussions took place to help develop a
                                         presentation for informing
                                         Commissioners of the nascent
                                         technology.
                                         Pennsylvania experience. PPL
                                                                                      Pennsylvania involvement at FCC. Pennsylvania was one of two states that submitted
                                         Telecomm (a subsidiary of PPL
                                                                                      comments in the recently concluded BPL docket. The PaPUC suggested that (a) an
                                         Corporation, a major provider of
                                                                                      ancillar NOPR was needed to address non-technical issues, such as universal service
                                         electricity in Eastern and Central
                                                                                      and the role of the states; (b) the final regulations should not apply for 36 months to
                                         Pennsylvania to approximately 1.3
                                                                                      entities deploying BPL as of the date of enactment, unless there is evidence
                                         million customers) has been involved
                                                                                      establishing an inability to solve technical issues absent application of any final BPL
                                         with BPL since 1999. PPL originally
                                                                                      rules; (c) the spectrum be divided into "notched" or exempt sections (primarily for
Pennsylvania                             used Main.net technology supplied by
                                                                                      Verizon, Spring, Boeing, ARR, CSAA, NAS-RAS, and NCTA) and non-notched (non-
Public Utilities   Joseph Witmer         Amperion, Inc., in an experiment in                                                                                                    N/A                         N/A
                                                                                      exempt) sections (primarily all other spectrum); (d) BPL equipment should incorporate
Commission                               Whitehall, PA, that passed approximately
                                                                                      state-of-the-art power reduction, frequency modulation, and shut-off devices to
                                         2,500 homes. PPL estimates that of the
                                                                                      mitigate any potential interference; (e) the FCC should create a BPL Engineering Task
                                         approximately 375,000 customers
                                                                                      Force modelled on the Internet Engineering Task Force; (f) procedures should be
                                         evaluated for potential BPL service, more
                                                                                      developed for posting information about BPL in the respective states; and (g) state
                                         than two-thirds do not have access to
                                                                                      commission should have the option of "opting in" to be a first-cut mediator for any
                                         equivalent two-way broadband service.
                                                                                      alleged interference from BPL to customers or entities using spectrum that experiences
                                         PPL has not yet made a final decision on
                                                                                      interference from BPL.
                                         a full scale deployment.
Rhode Island
                   Stephen Scialabba,
Public Utilities                         No                                           N/A                                                                                       No                          No
                   Chief Accountant
Commission

South Carolina
Public Service     Douglas Pratt         No                                           N/A                                                                                       No                          No               Formatted: Font: 10 pt
Commission
                                                                                                                                                                                                                             Formatted: Font: 10 pt



                                                                                                           9
                                                                                                     Appendix B - 30
     BPL Report                                                                                                                                     NARUC



                                                                                        * Location;
                                                                                        * Municipality/City/State involvement (?) in trial;
                                                                                        * Companies involved in trial;                                                                                           Has your state
                                                                                                                                                                                     Does your State have any
   State                                   Are there any ongoing BPL trials             * Number of households involved in trial;                                                                                concluded any    Formatted Table
                    Contact Person                                                                                                                                                   open proceedings that are
 Commission                                        or deployments?                      * Services being offered/tested: (1) Local Phone Service; (2) Toll phone                                                 proceedings on
                                                                                                                                                                                     examining BPL issues?
                                                                                        service; (3) Broadband Internet Access; (4) Auto Meter Reading; (5)                                                      BPL issues?
                                                                                        Residential Demand Management/Smart Grid/Grid Management? (6)
                                                                                        Other?

South Dakota
                   Bob Sahr,
Public Utilities                           No                                           N/A                                                                                          No                          No
                   Commissioner
Commission

                                                                                        Location: Fayetteville, Tennessee. Municipality/City/State involvement: Yes
                                                                                        Companies involved in trial: Fayetteville Public Utilities & GridStream TechnologYes
Tennessee                                                                               Number of households involved: this trial is no longer active, two approximately three
                   Darlene Standley,
Regulatory                                 Yes                                          businesses still have modems that are active. Services being offered/tested: (1) Local       No                          No
                   Chief of Utilities
Authority                                                                               hone service - No; (2) Toll phone service - No; (3) Broadband Internet Access - Yes;
                                                                                        (4) Auto Meter Reading - No; (5) Residential Demand Management/Smart Grid/Grid
                                                                                        Management - No; (6) Other - No
                                           Yes. Broadband Horizons (BH) is the
                                           first company to launch BPL in Central
                                                                                        Location: Broadband Horizons' home office is located in Blanco, Texas. It currently
                                           Texas. Initial installations began in June
                                                                                        has pilot projects in Burnet, Weimar and Blanco, Texas. BH is initially targeting rural
                                           2004. Its offices are based out of Blanco,
                                                                                        and semi-rural communities, generally under 20,000-30,000 population.
                                           Texas. Additional information about
                                                                                        Municipality/City/State involvement. The City of Blanco is served by Perdenales
                                           their services may be found at
                                                                                        Electric Cooperative, a private electric utility owned by its customers. The City of
                                           http://www.broadbandhorizons.com/inde
                                                                                        Burnet owns its own electric utility. The City of Weimar is served by the Fayette
                                           x.htm. Additionally, in summer of
                                                                                        Electric Cooperative, District 6. The current contracts are for limited projects for 90 to
                   Sheri Sanders,          2004, TXU Electric Delivery hosted a
Texas                                                                                   180 days. For the pilot projects, there will be no cost to the muncipal utility districts.
                   Attorney, Policy        small-scale BPL retail demonstration
Public Utility                                                                          Companies involved in Trial: Broadband Horizons and its ISP, Momentum Online..               No                          No
                   Development             project in Irving, Texas, providing five
Commission                                                                              Number of households involved in trial: The initial pilots are limited in size, and the
                   Division                homes with Internet service to test the
                                                                                        company reports approximately 25 users on the system, mostly in Weimar, TX. In
                                           technical feasibility of BPL. Utility
                                                                                        Burnet, BH provides BPL broadband service to a municipal building and a nearby
                                           applications were not tested. The vendor
                                                                                        commercial building. Services being offered/tested: (1) Local phone service -
                                           withdrew interest. Larger scale
                                                                                        Unknown; (2) Toll phone service - Unknown; (3) Broadband Internet Access - Yes.
                                           commercial deployment is being
                                                                                        (4) Auto Meter Reading - Unknown. (5) Residential Demand Management/Smart
                                           considered, and TXU is interviewing
                                                                                        Grid/Grid Management - Unknown. (6) Other - None.
                                           suppliers, technology partners, and retail
                                           ISP providers.



Utah               Peggy Egbert,
Public Service     Technical Consultant,   No                                           N/A                                                                                          No                          No
Commission         Telecommunications



Vermont
Public Service     Peter Bluhm             No                                           N/A                                                                                          No                          No
Board
                                                                                                                                                                                                                                  Formatted: Font: 10 pt
                                                                                                                                                                                                                                  Formatted: Font: 10 pt



                                                                                                              9
                                                                                                        Appendix B - 31
     BPL Report                                                                                                                               NARUC



                                                                                   * Location;
                                                                                   * Municipality/City/State involvement (?) in trial;
                                                                                   * Companies involved in trial;                                                                                          Has your state
                                                                                                                                                                               Does your State have any
   State                               Are there any ongoing BPL trials            * Number of households involved in trial;                                                                               concluded any
                  Contact Person                                                                                                                                               open proceedings that are
 Commission                                    or deployments?                     * Services being offered/tested: (1) Local Phone Service; (2) Toll phone                                                proceedings on
                                                                                                                                                                               examining BPL issues?
                                                                                   service; (3) Broadband Internet Access; (4) Auto Meter Reading; (5)                                                     BPL issues?
                                                                                   Residential Demand Management/Smart Grid/Grid Management? (6)
                                                                                   Other?


Virginia State   Steven Bradley,
Corporation      Deputy Director,
                                       No                                          N/A                                                                                         No                          No
Commission       Division of
                 Communications

                                                                                   One trial is located in Wenatchee Heights, a housing development of approx. 35 homes
                                                                                   using capacitive coupling, HPA (Home Plug Alliance) protocol BPL equipment
                                                                                   provided by Gridstream. Started in May of 2004 this trial has never fully functional. A
                                                                                   total equipment redesign will be completed and the trial will restart early 1st Q 2005.
                                                                                   The second trial is in the Peshasin area and connects approx. 30 homes using induction
                                                                                   coupling BPL equipment from MainNet providing 500-700Kb of bandwidth. The trial
Washington                                                                         is functional and in use by two customers at this time. Ham radio organizations have
                                       Yes, two trials are in progress by Chelan
Utilities and    Bob Williamson, Sr.                                               assisted in radio interference testing at both locations. using capacity coupled, HPA
                                       County PUD in rural Eastern Washington
Transportation   Technical Staff                                                   (Home Plug Alliance) protcol BPA equipment provided by GridStream. Gridstream.
                                       State.
Commission                                                                         Started in May 2004 this trial has never been fully functional. A total equipment
                                                                                   redesign ha been completed and the trial is set to begin again the first quarter of 2005.
                                                                                   The second trial is in the Peshastin area connecting approx. 30 homes using inductive
                                                                                   coupled, proprietary protocol BPL equipment proprietary protocol, BPL equipment
                                                                                   provided by MainNet. Fully functional since its inception in September of 2004, this
                                                                                   system provides 500-700 Kb of broadband data bandwidth per subscriber. Ham radio
                                                                                   operators have assisted with radio interference testing at both locations.
                                       No. American Electric Power was
                                       approached by a BPL company in either
West Virginia
                 Dannie Walker,        2003 or 2004; however, the power
Public Service                                                                     N/A                                                                                         No                          No
                 Technical Analyst     company decided against a trial with
Commission
                                       them because of the repair response times
                                       that the BPL company demanded.


Wisconsin        Scot Cullen
Public Service   Chief Engineer        No                                          N/A                                                                                         No                          No
Commission       Energy Division



Wyoming
Public Service
                 Mike Korber,
                                       No                                          N/A                                                                                         No                          No               Formatted: Centered, Indent: First line: 0"
                 Lead Rate Analyst
Commission
                                                                                                                                                                                                                            Formatted: Font: 12 pt
                                                                                                                                                                                                                            Formatted: Centered
                                                                                               Additional Resources
                                                                                                                                                                                                                            Formatted: Font: 10 pt
                                                                                                                                                                                                                            Formatted: Font: 10 pt



                                                                                                         9
                                                                                                   Appendix B - 32
                                                                                                                                      Formatted: Font: 11 pt
      Aggregrate Net Present Value All Attribute s
                               ($Billions)
 BPL Report                                                                                         NARUC



                         Quality, 36   Broadband Over Power Line: Are Electric Utilities the Next Big Player in Broadband? (July04)   Formatted: Centered, Space Before: 0 pt,
                                                                                                                                      After: 0 pt, No bullets or numbering
         Enviromental, 48                                          Current Communications Group (April04)
           Safety, 11                                   Update on Broadband over Power Line in the U.S. (Jan04)
                                                        Central Virginia Electric Cooperative Presentation (July04)
Quality of Life, 65                    Current Communications Group: Broadband over Powerline (BPL) Communications (July04)
                                                  Reliability, 247
                                                                        Powerline Broadband (July04)
  Productivity, 1                                  Broadband over Power Lines: A PLCA Industry Viewpoint (July04)
                                                                                                                                      Formatted: Centered
         Cost, 50
                                                                                                                                      Formatted: Indent: First line: 0"


          Capacity, 49

                                 Security, 133




                                                                                                                                      Formatted: Font: 10 pt
                                                                                                                                      Formatted: Font: 10 pt



                                                                               9
                                                                         Appendix B - 33

				
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