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					PHI’s Plans for Smart Grid

                         Robert Stewart
                         Mgr Technology Evaluation
                         and Implementation

PHI‟s Smart Grid Vision…

    “Through the „Smart Grid‟, customers will become empowered to make choices
    regarding their use and cost of energy.

    It will open opportunities for innovation.

    It will provide the ability for a utility and its customers to take advantage of energy
    alternatives and efficiencies regarding both the production and consumption of

    It includes a solid foundation of intelligent grid sensors, components and
    operational design to improve control, quality, reliability, and security.

    Adding, operating and maintaining grid assets will be based upon more up-to-
    date, fact-based data. This will enable the evolution from preventative and
    reactive to predictive and self healing for more efficient use of resources.”

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

                                                                                                              Step 5
                                                                                                          – Capability of
                                                                                      Step 4
                                                                                • Analytical                optimization of
                                                                                    infrastructure:         distribution
                                                              Step 3                                        network

                                                                                       – Development of     performance
                                                              Integration:                new data
                                                                                                          – Decisions based
                                                              – Corporate IT              analysis
                                                                                                            on near real-time
                                         Step 2                  systems                  capabilities
                                                                                                            information, no
                                   • Communications              integrated to allow – Increased ability longer only
                                                                 rapid processing         to display        historical data
                                     infrastructure:                                      information (in
                     Step 1                                      of data
                                       – Enterprise                                       form of
                                                              – Open architecture
              •   Intelligent devices    communication
                                                                 based design to          dashboards,
                  infrastructure:        system for rapid                                 etc.)
                                                                 facilitate sharing
                                         and accurate
                     – AMI, or „Smart                           of information
                                         transmission of
                     – Distribution
                                       – Integration of fiber
                                         and mesh
                     – Demand Response   networks
                     – Substation IED
                         Controllers                    Capability
  Adapted from IBM
                              PHI’s Smart Grid activities will provide numerous benefits
                              for customers, the economy, the environment and society…

                                                                                                                                                   Smart Grid Benefits

                                                                                     Customer Benefits                                            Economic Growth Benefits                             Environmental and Societal Benefits

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

                               Advanced Metering

PHI’s Smart Grid Activities

                               Demand Response
                                 Dynamic Rates

                               Direct Load Control


                                  Smart Home

                              Distributed Generation

                                Energy Efficiency

        Full Smart Grid


                               degree of

PHI‟s Smart Grid Domains and Integrated Communications

          Home Intelligence                   Feeder Automation                          Substation Automation                                                  Transmission Automation

                                           Collector                                        Communications
                          Solar (or
                           Wind)                                               SF6
                                                                           Line Switch
                Smart                                                      With Radio
              Thermostat                                                   Transceiver
                                                                                                     Radio            Substation
                                                                                                                        WAN                     Substation

                                                                                                              Smart              Controller
                                                                                                              RTU                  PC

                                                                                                                                                                    PHI Central   PJM
                                                                                                                        LAN                                         Operations
                              Smart                Distribution Poles                           Smart        Smart     . . . .      Smart     Legacy
                                                                                                Relays       Meters                Monitors    RTU

                  House                                                                        Smart Substations
                                                                                                     (Transmission &
    Electric Vehicles

                                                                                                                                                                PHI Central
                                                                                              Substation                                                        Operations
      Customer              Meter                      Collector                                                                                                                   PJM

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

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

DE Smart Grid Progress to Date

Vendor Selection
 •   Comverge – Direct Load Control
 •   Silver Spring Networks – AMI
     communication network
 •   IBM – system integrator
 •   GE and Landis + Gyr – meter                •   Two-way communication to the meter/IMU (Gas
                                                    has battery)
                                                •   HAN using ZigBee protocols (Electric only)
 •   Scope Services – Meter Installation        •   Power quality reporting (Electric only)
     Contractor                                 •   Hourly or 15 minute interval data recording for
                                                    electric customers, depending on their rate
Delaware Deployment
                                                •   Daily consumption for gas customers (hourly
 •   Field Acceptance Test in progress              reads for gas once a day)

 •   System development and integration in      •   Diagnostic Alarms, Tamper Flags, and
                                                    Outage/Switch Counters (E&G)
     progress                                   •   Time stamped outage and restoration reporting
 •   4Q 2009 - Commence AMI deployment              (Electric only)
                                                •   Remote programming and software upgrade
     in Delaware                                    capabilities (E&G)
 •   1Q 2010 - Initial customer functionality   •   Backup memory in the meter/IMU (E&G)
                                                •   Net energy metering capability (Electric only)
                                                •   Capable of supporting remote turn on/off under
                                                    glass (Electric only)
Delaware Deployment – Initial Functionality

The ADSI and CBSI initiatives focus on enabling the following operational and customer
functionality which was specified by PHI’s senior leadership and which is necessary to
meet the expectations set by the Blueprint & AMI Business Case filings
     • Automated Deployment – Includes the integration of PHI‟s legacy systems with Scope
       Services and Silver Spring Networks‟ Utility IQ (IUQ v3.8) Head End System to support
       the procurement, receipt, installation and provisioning of LAN equipment and AMI devices
     • Meter to Bill – Includes the integration of Silver Spring Networks‟ Utility IQ (UIQ v3.9)
       Head End System, Itron‟s Enterprise Edition (IEE v7.0) Meter Data Management System
       and PHI‟s C3 Billing System to support the transfer of and billing based on monthly
       register reads collected “over the air” in addition to remote turn-on and turn-off of a
       customer‟s electricity via a switch in the electric AMI meter
     • Outage – Includes the integration between UIQ v3.9, PHI‟s Oracle SPL Outage
       Management System (SPL), PHI‟s Outage Notification Engine (WebSphere Business
       Events - WBE), and C3 to transfer and process outage messages received from AMI
       meters for use in both proactive customer outage and restoration of service notifications
       sent via the customer‟s mechanism of choice (e.g. email and text)
     • Web Presentation – Includes the implementation, configuration and integration of
       Aclara‟s Load Analysis Module to support presentation electric and gas consumption
       profiles to customers in addition to the presentation of daily usage on the customer‟s bill
     • AMI Portal – Includes the creation of a PHI AMI Portal which allows CSRs and other
       designated departments to communicate directly with UIQ v3.9 to request and receive on-
       demand information stored by AMI electric meters, verify AMI electric meter status, obtain
       outage information and view customer‟s interval usage data
 Smart Grid Key Maturing Standards…

       There are a number of standards that are emerging from the Smart Grid
       and are in the process of maturing…             ISO     IEC   IEC
                                                                 1046           61968             61850

The 2007 EISA States that NIST:                                                                                         IEC
                                                       EIA 600
    “….shall have primary responsibility to                                 Smart Grid
 coordinate development of a framework that             IEEE                                                       ASHRAE
 includes protocols and model standards for            SCC31                                                       SSPC 135

      information management to achieve
                                                                 ANSI           IEC TC             IEEE
   interoperability of smart grid devices and                     C12             13                1459
                                                                 Smart Energy
                                                                                  Note: Zigbee is a consortia rather
                                                                   Protocol       than a standard and therefore not
                                                                                  included above

                                                The goal of the Interoperability Effort is to:
                                                • Respond to the NIST Charter as defined in EISA 2007
                                                • Provide the status of key elements of Smart Grid related
                                                  Standards, recommended Practices and infrastructure
                                                • Provide a proposed pathway to the development of a
                                                  robust, open, well managed and secure infrastructure for
                                                  smart grid development, deployment and life-cycle

     NIST Interoperability Efforts

                                                                                           • Held a series of cross-industry
                                                                                           • Focus on identifying “low
                                                                                             hanging” standards for Smart
                                                                                             Grid and developing Priority
                                                                                             Action Plans (PAPs)
                                                                                           • Initial 16 Standards extended to
                                                                                             31 (with 46 additional under
                           14 Priority Action Plans                                          review)
1.      IP for the Smart Grid              8.    CIM for Distribution Grid Management      • NIST identified 14 PAPs key to
2.      Wireless Communications for the
        Smart Grid
                                           9.    Standard DR Signals
                                                                                             the development of the Smart
3.      Common Pricing Model
                                           10.   Standard Energy Usage Information
4.      Common Scheduling Mechanism
                                           11.   Common Object Models for Electric
                                                 Transportation                            • Includes Cyber Security
5.      Standard Meter Data Profiles       12.   IEC 61850 Objects / DNP3 Mapping
                                                                                           • Announced this week the
6.      Common Semantic Model for Meter
        Data Tables
                                           13.   Time Synchronization, IEC 61850 Objects
                                                 / IEEE 37.118 Harmonization                 formation of a Smart Grid
7.      Electric Storage Interconnection   14.   Transmission and Distribution Power
                                                 Systems Model Mapping
                                                                                             Interoperability Panel

Standards Development Coordination – Getting Utility

                                NIST Coordination

             *                     *              OpenSG    *    IEEE

                                                    .             IEC

                                                  61850ug         .
                                              DNP3 Users group    .
Policy Issues              Technical Requirements                SDOs
* Groups where PHI has active participation
PHI’s security framework has a holistic approach…

PHI‟s Smart Grid is being designed to protect and mitigate these threats.

We are using a security framework that:
• Takes a holistic approach to security, providing protection at all levels with the intent of minimizing the
  impact/exposure to our systems and customer data
• Evaluates the appropriate level of security at each point in the network
            ie, the security level at a substation will be greater than that at a meter
• Regularly assesses risks and dynamically monitors for any malicious attacks to our networks which
  may adversely impact our business, our customers and the public at large
• Provides the capability to dynamically change security rules, policies and procedures to ensure that
  we remain agile against a changing risk environment
• Leverages security experts from other industries that have already been through these issues
• Uses design standards that include, for example, the Advanced Encryption Standard (AES) and
  Control & Limit Access (Radius Authentication Standard)
• Extends the use of Firewalls to distribution substations and out to the feeder level as well, both
  minimizing and isolating the impact of external threats. Traditionally, Firewalls were placed only in
  centralized IT systems

      Customer Privacy Concerns – A Key Issue

NARUC & NASUCA privacy-related
                                      How power use can reveal personal activities1
 “should support legislative and
    administrative efforts that, to
    the extent practical, give
    customers the ability to
    choose the degree of privacy
    protection, both with respect
    to information outflows and
    inflows. Unless a customer
    grants explicit, affirmative
    informed consent, customer-
    specific information about
    utility service should only be
    used in connection with
    rendering or billing for that
    service or other services
    requested by the customer.
    That data should not be
    otherwise available to affiliates
    or third-parties, unless by
    federal or State commission                                1
                                         Elias Leake Quinn, A Report for the Colorado Public Utilities Commission, Spring 2009, pg. 3. (citing M.
    order.”                             Newborough & P. 3Augood, Demand-side Management Opportunities for the UK Domestic Sector, IEEE
                                        Proceedings of GenerationTransmission and Distribution 146 (3) (1999) 283–293).

Key Takeaways

“The smart grid will only work to the extent that customers win,”
Joseph Rigby, CEO of Pepco Holdings
• Customer Adoption and Participation is a key enabler

• Smart Grid will move at the Speed of Value
    – Utilities will still need Regulatory approval for large projects related to Smart Grid
    – Standards and Interoperability are key to preventing stranded assets

• Interoperability and Standardization are not spectator activities.
    – Utilities need to get involved and make their voices heard

• Through the Smart Grid, Utilities will become “Technology” Companies
    – No longer the “best solutions” but rather iterations of “Better Solutions”
    – Similar to Electric System Operations, Communication Network Operations and
      enhanced Cyber Security will become part of our future DNA

• Legislation should be applied judiciously
    – Standards are hard to change, laws are nearly impossible.