2018 General Rate Case. Transmission & Distribution (T&D) Volume 11 Grid Technology

Transcription

1 Application No.: A.-0- Exhibit No.: SCE-0, Vol. Witnesses: D. Kim (U -E) 0 General Rate Case Transmission & Distribution (T&D) Volume Grid Technology Before the Public Utilities Commission of the State of California Rosemead, California September, 0

2 SUMMARY The Grid Technology volume describes SCE s Advanced Technology Division, the work it performs, and the associated cost of the work. The Advanced Technology Division tests, evaluates, and pilots new and emerging technologies to meet the evolving needs of customers and to comply with many new federal and state energy policies. After new technical solutions are proven through rigorous and structured processes, SCE implements these solutions to modernize the aging grid and support its continued provision of safe, reliable, clean and affordable service to its customers. To perform these critical tasks, we are requesting $. million in O&M expenses for Test Year 0 and $ million in capital expenditures for years SCE s Advanced Technology Division was initially organized in 00 and SCE received authorization for these types of activities and costs in its 0 and 0 General Rate Cases. Grid Technology O&M Expenses 0 Forecast (Total Company Constant 0 $Millions)

3 Grid Technology Capital Expenditures 0-00 Forecast (CPUC-Jurisdictional Only Nominal $Million)

4 SCE-0: Transmission & Distribution (T&D) Volume Grid Technology Table Of Contents Section Page Witness SUMMARY OF TESTIMONY... D. Kim A. Content and Organization of Testimony.... Summary of O&M and Capital Request... 0 DECISION... A. Compliance Requirements... B. Comparison of Authorized 0 to Recorded... DESCRIPTION OF ORGANIZATION AND BACKGROUND... A. Overview of Activities... O&M... A. Grid Technology Expenses (Portions of GRC Account 0.0 and 0.0).... Cost Forecast...0 B. Advanced Outage Detection and Analytics Program.... Cost Forecast... CAPITAL EXPENDITURES... A. Advanced Technology Laboratories.... Fenwick Labs Upgrades... a) Capital Forecast... b) Project Description... c) Need for Project Including Risk Avoidance... d) Scope and Cost Forecast.... Pomona Laboratory Expansion... a) Capital Forecast... -i-

5 SCE-0: Transmission & Distribution (T&D) Volume Grid Technology Table Of Contents (Continued) Section Page Witness b) Project Description... c) Need for Project Including Risk Avoidance... d) Scope and Cost Forecast.... Equipment Demonstration Evaluation Facility...0 a) Capital Forecast...0 b) Project Description...0 c) Need for Project, Including Risk Avoided... () Scope and Cost Forecast... B. Energy Storage Pilots.... Distributed Energy Storage Integration (DESI) Pilot Program... a) Capital Forecast... b) Project Description... c) Need for Project Including Risk Avoided... () Diversity of Applications... () Other Applications...0 d) Scope and Cost Forecast... C. Technology Integration.... Distribution Volt VAR Control and Capacitor Automation Program... a) WBS Indicator of Project and Capital Forecast... b) Project Description... c) Need for Project Including Risk Avoided... -ii-

6 SCE-0: Transmission & Distribution (T&D) Volume Grid Technology Table Of Contents (Continued) Section Page Witness d) Scope and Cost Forecast.... Advanced Outage Detection and Analytics Program... a) Capital Forecast... b) Project Description...0 c) Need for Project Including Risk Avoided... () Outage Management Capability Enhancements... () Firmware Enhancements... () Bellwether Management... () Benefits... d) Scope and Cost Forecast... () Outage Management Capability Enhancements... () Firmware Enhancements... () Bellwether Management... SUMMARY OF GRC ACCOUNTS...0 A. GRC Account B. GRC Account iii-

7 0 0 SUMMARY OF TESTIMONY A. Content and Organization of Testimony This volume of testimony is organized into O&M and capital activities. The O&M activities cover the costs of evaluating new technologies and deploying and operating the Advanced Outage Detection and Analytics capital project. The capital activities are divided into three general areas.. Advanced Technology Laboratories: SCE has three laboratory facilities (Fenwick, Pomona, and Equipment Demonstration and Evaluation Facility (EDEF)), which provide long-term, comprehensive, and dynamic testing environments. Combined, these labs support investigating, modeling, validating, and piloting new and emerging technologies prior to deploying them on the grid. SCE s efforts in the labs help prudently integrate new technologies on our system to the benefit of our customers.. Pilots: Technologies such as energy storage systems are evolving. Piloting helps determine the technology s ability to perform under actual conditions on SCE s grid and helps us efficiently and safely integrate it onto the grid. Pilots also help guide us in making prudent choices in how and when we invest in more widespread deployment of advanced technologies.. Grid Integration activities: These activities encompass grid solutions that use technologies we have previously tested, evaluated and piloted, and are now deploying onto the grid.. Summary of O&M and Capital Request Table I- and Table I- below summarize the O&M and capital activities discussed in this volume along with the associated costs. Table I- Grid Technology O&M Activities (Total Company Constant 0 $000) Activity 0 Forecast Grid Advancement $, Advanced Outage Detection & Analytics Project $0 Total $,0

8 Table I- Grid Technology Capital Activities (CPUC-Jurisdictional Nominal $000) Description DVVC,,,,,0 Consrvtn Voltage Reg,0, Advanced Technology,,,,,0 Energy Storage Pilot Program,,,,,0 Advanced Outage Detection & Analytics - - 0,,, Total $, $, $, $,0 $,0

9 0 DECISION A. Compliance Requirements In D.--0, the Commission adopted the majority of SCE s request for Lab upgrades, but rejected a portion of SCE s funding request for the Westminster lab. The Commission rejected all of the funding for the EDEF, because the Commission found that SCE had not demonstrated that the problems it would address are unique to SCE and that other most cost-effective options do not exist. SCE addresses these concerns in Section V..c below, and shows that its labs are addressing SCEspecific issues in a prudent manner. D.--0 ( 0 GRC Decision ), p. 0.

10 B. Comparison of Authorized 0 to Recorded Figure II- Grid Technology 0 GRC Authorized Variance Summary 0 O&M (Total Company Constant 0 $Millions) Grid Technology recorded $. million in O&M expenses in 0, which was $0. million higher than the authorized amount of $. million. Based on the current mix of programs, Grid Technology was able to spend within % of its authorized amount. Refer to WP SCE-0 Vol., p. (O&M Authorized vs. Recorded).

11 Figure II- Grid Technology 0 GRC Authorized Variance Summary 0 Capital (CPUC-Jurisdictional Nominal $Millions) Grid Technology recorded $ million in Capital expenses in 0. This is $ million more than the $0 million authorized in SCE s 0 GRC. The increased spending was driven primarily by the EDEF. This project is discussed in greater detail in Section V..c below. Refer to WP SCE-0 Vol., p. (Capital Authorized vs. Recorded).

12 0 0 DESCRIPTION OF ORGANIZATION AND BACKGROUND A. Overview of Activities Federal and state policies are continuing to change the way electricity is produced and consumed. Customers are accelerating the adoption of technologies such as photovoltaic (PV), energy storage, and electric vehicles. Supporting the public policies and meeting our customers needs have profoundly affected how the utility must now build and operate the grid. These policies are causing SCE to advance the way it operates the grid to provide clean, safe, reliable and affordable power to its customers. Under California s recently expanded Renewable Portfolio Standard (RPS), SCE must purchase 0 percent of its energy from renewable resources by 00. Because of intermittent sun and wind conditions, renewable power can fluctuate significantly. These power quality fluctuations, if left unmitigated, can cause serious problems to electric distribution equipment, and even adversely affect customers electrical devices. The increasing number of distributed energy resources (DERs) on customer homes and businesses has increased the complexity of grid operations, and these new configurations present challenges and opportunities for the distribution grid. Under the Commission s energy storage mandate, ever-increasing amounts of energy storage are expected to connect to the grid. However, the storage systems (battery cells, the balance-of-plant electrical equipment and firmware, which manages the performance of batteries) are still evolving. These technologies need to be further tested and evaluated. We need to pilot the systems on the distribution grid to determine how these systems can provide support as the operating environment changes and potentially increase the value of DERs by mitigating any negative impacts. Such piloting helps SCE safely and reliably integrate energy storage systems onto the grid. The proliferation of electric vehicles can overload distribution circuits, and if not managed properly, will lead to grid instability or outages. SCE has approximately 0,000 light-duty (residential and fleet) electric vehicles connecting to the grid. An increasing number of commercial customers such as United Postal Services (UPS) are also adopting electric transportation for fleet operations. Transit agencies such as Foothill and Antelope Valley are planning to expand their current fleet of buses to be Refer to SCE-0, and SCE-0, Vol..

13 0 all-electric. As more heavy-duty vehicles electrify, demand for high-powered fast-charging will increase. SCE is continuing to evaluate the system impact of such charging, but also investigating ways to reasonably charge the vehicles in a way that more efficiently utilizes the infrastructure. SCE s Advanced Technology Division provides technology solutions to serve our customers changing needs and comply with many ambitious federal and state energy policy targets while maintaining grid safety and reliability. New technologies must be identified, assessed for their maturity and performance, and tested for their intended purposes. These new technology solutions must be verified and validated before SCE makes large-scale investment and deployment decisions, either to deploy or prepare its grid and operations to incorporate such technologies. After SCE applies its rigorous and robust process, the new technologies can be safely and predictably integrated into SCE s grid. Since 00, SCE has taken these types of measured and prudent steps to identify and assess promising technologies, test their performance in the laboratories, and demonstrate and pilot them in a real, integrated grid environment prior to their being deployed or otherwise connected to the grid. As public policy goals and technological capabilities continue to evolve, these efforts continue to increase in importance. Our work here helps SCE comply with policy requirements, mitigate operational challenges, and enable customer choices. The Grid Technology request I am sponsoring provides a reasonable level of resources and activities needed to support SCE continuing to provide safe, affordable, reliable, and clean electricity to its customers.

14 0 0 O&M A. Grid Technology Expenses (Portions of GRC Account 0.0 and 0.0) Grid Technology activities include: Using technology to perform advanced systems studies and develop models to better understand grid operations in an ever-changing environment. This is especially important in light of the increasing penetration of renewable and distributed energy resources, which have corresponding impacts on operations; Operating an integrated set of laboratory capabilities to develop operational and technology solutions, and safely test and evaluate those solutions prior to deploying them in the field; Supporting the development of industry standards that promote equipment interoperability, vendor diversity, and prudent long-term asset deployment strategies; and Supporting the Distribution Resources Plan, which requires the Utilities to perform five demonstration projects, as well as supporting the Commission s Energy Storage Initiative. The Energy Storage Initiative requires that SCE procure 0 MW by 00 (and online by 0). SCE s distribution grid is becoming more complex, with new challenges, but also with new opportunities to integrate clean, distributed generation resources for SCE s customers. SCE s Grid Technology efforts play a vital role in testing and evaluating these promising technologies and testing them in a laboratory setting. Grid Technology prioritizes its program with input from other SCE operating groups and through extensive external engagement with other entities, such as U.S. Department of Energy (DOE) National Labs, other utilities, industry research organizations, academia, and the vendor community. For each effort, we determine whether SCE s role will be to lead, participate in, or monitor testing activities. Typically, SCE leads on high-priority projects where it has the expertise and facilities capable of testing the technologies against SCE-specific operating protocols (e.g., the equipment and evaluation facility at SCE s facility in Westminster, California). R D

15 0 SCE participates with industry groups and agencies to evaluate new technologies and mitigate expenses and risks. As an example, SCE collaborated with the South Coast Air Quality Management District (SCAQMD) on the Zero Emission Cargo Movement, or e-highway project, to demonstrate electrified drayage trucks that can operate on the road with electric drive connected to an overhead power line. Finally, SCE monitors emerging technology testing by other parties where SCE does not possess adequate resources, seeks to avoid costs from potentially high risks, and/or can leverage the efforts of third parties. As an example, SCE monitors compressed air energy storage technology development work by others such as DOE, the Electric Power Research Institute (EPRI), and national labs on compressed air energy storage technologies and flow battery storage technologies. Grid Technology activities for transmission systems are charged to GRC Account 0.0. Work performed for the distribution system is charged to GRC Account 0.0. Since the activities are similar, and the expenses recorded in 0.0 and 0.0 in any particular year can vary based on the specific projects, SCE is combining its discussion of historical expense analysis and forecasts for these two accounts. The transport of goods over a very short distance during a single work shift.

16 . Cost Forecast Table IV- Grid Technology Expenses GRC Accounts 0.0 and Portion of 0.0 Recorded and Adjusted 0-0/Forecast 0-0 (Constant 0 $000) Recorded Forecast Labor $, $, $,0 $, $,0 $,0 $,0 $,0 Non-Labor $,0 $ $0 $ $ $ $ $ Subtotal 0.0 $,0 $,0 $, $, $, $, $, $, 0.0 Labor $,0 $, $, $,0 $, $, $, $, Non-Labor $,0 $, $,0 $, $, $, $, $, Subtotal 0.0 $, $, $,0 $,0 $, $, $, $, Total $, $,0 $, $, $, $, $, $, Labor $0, $0,0 $,0 $, $, $, $, $, Non-Labor $, $, $, $, $, $, $, $, Ratio of Labor to Total % % % 0% % % % % Basis of Forecast: Last Year Recorded Costs Basis of Labor/Non-Labor Split: Last Year Labor/Non-Labor Ratio The labor expenses for these activities include payroll for engineers and management working on the activities described above. This work is supplemented by contract personnel when the efforts are of shorter duration, or when unique subject expertise is needed. Expenses for contract personnel are recorded as non-labor. Allocated overheads, small tools and equipment, and purchases of technologies tested are also recorded as non-labor expenses. From 0 to 0, labor costs decreased by $0,000 and non-labor costs by $. million. The 0 labor decrease was primarily due to engineering personnel completing their Refer to WP SCE-0 Vol., pp. - (GRC Account 0.0) and pp. - (GRC Account 0.0). 0

17 0 0 evaluation and testing assignments and charging to the next phase of capital deployment projects. The non-labor expenses decreased because we relied less and less on consulting and contractor services for ongoing Advanced Technology activities. 0 The completion of the Westminster Laboratories and Large Energy Storage Test Apparatus also allowed SCE personnel to handle a variety of technology testing and evaluation activities and advanced system studies in-house. From 0 to 0, labor costs decreased by $,000 and non-labor costs increased by $,000. The labor decrease was primarily due to a reorganization where regulatory policy and transportation electrification policy employees moved into the Regulatory Affairs organization. The non-labor increase was primarily due to support for the Substation Automation Hybrid-Solutions effort and support of an electric vehicle smart charging pilot. From 0 to 0, labor costs decreased by $,000 and non-labor increased costs by $,000. The non-labor increase was primarily due to consultant charges associated with organizational, communications and management strategy improvement efforts. From 0 to 0, labor costs increased by $,000 and non-labor costs decreased by $,000. The labor increase was primarily due to the hiring of staff to support energy storage procurement activities. Since its inception in 00, SCE s Grid Technology has continued to mature, which has allowed it to maintain and in some instances increase work levels, while limiting cost increases. As such, SCE proposes to use the last recorded year as the basis for its test year request for both the Transmission and Distribution Grid Technology. This results in a 0 forecast of $. million, which is the same amount as the $. million recorded in 0. B. Advanced Outage Detection and Analytics Program Enhancements to SCE s Outage Management System which leverages SmartConnect meters can significantly improve the current detection, identification, and response to customer power outages. As discussed later in (reference) certain O&M costs will be incurred by this project. We include the The Centralized Remedial Action System and Phasor Measurement & Wide Areas Situational Awareness System projects moved from testing and evaluation phase to the implementation phase, thus incurring less O&M expenses. 0 SCE did, however, continue to utilize these resources for its American Reinvestment and Recovery projects. Commission Decision established an energy storage target of, megawatts for Pacific Gas and Electric Company, Southern California Edison, and San Diego Gas & Electric by 00, with installations required no later than the end of 0.

18 estimates here to present a complete set of O&M for this volume. The O&M cost estimate for the system enhancement uses standard IT estimating practices of % of total capital cost, which is approximately $. million. There is a one-time O&M cost for drafting the necessary request for information, request for proposals, and purchase orders for the firmware enhancement, bellwether management, and Outage Management System Capability enhancements. The normalized cost over 0-00 for the O&M labor and non-labor for all three enhancements is $0,000 per year.. Cost Forecast Figure IV- Advanced Outage Detection and Analytics Project Portion GRC Account 0.0 Recorded and Adjusted 0-0/Forecast 0-0 (Constant 0 $000) Recorded Forecast Labor $ $ $ $ $ $ $ $ $0 $0 Non-Labor $ $ $ $ $ $ $ $ $0 $0 Total $ $ $ $ $ $ $ $0 $0 $,00 Ratio of Labor to Total N/A N/A N/A N/A N/A N/A N/A 0% 0% 0% Basis of Forecast: Itemized Forecast (Normalized by using 0-00 Average Total Cost) Basis of Labor/Non-Labor Split: Itemized Forecast Normalized Test Year Forecast 0 Labor $ Non-Labor $ Total $0 Refer to WP SCE-0 Vol., pp. -.

19 0 0 CAPITAL EXPENDITURES SCE faces increasing operating complexities, and must properly test and evaluate emerging technologies prior to deploying potential improvements across SCE s 0,000-square mile service territory. The Commission authorized funding for SCE to develop laboratory capabilities, providing the base capabilities needed to identify issues and test potential solutions. Given the increasing operating complexity, it is prudent for SCE to continue testing and integrating new technology solutions, which is primarily accomplished through the Advanced Technology labs. To identify and determine which technological solutions will help advance the power grid with clean resources, while maintaining safety and reliability, SCE will continue to: Evaluate the business need for new technologies; Test the technology components in the laboratories to determine whether they can withstand the requirements of grid operations; Determine the broader equipment capabilities in a controlled environment without affecting service to our customers; Pilot the combined systems on SCE s grid to determine their ability to perform under actual conditions; and Deploy technological integration solutions. SCE s capital request for Grid Technology will provide the funding to continue building on existing capabilities, keep current on evolving technologies, and upgrade capabilities in a reasonable manner to meet the increasing complexity of operating requirements, driven by federal and state energy policy mandates. The areas of capital expenditures are shown in the Table below:. Advanced Technology Laboratory Facilities a. Fenwick Labs b. Pomona Lab c. Equipment Demonstration and Evaluation Facility. Energy Storage Pilots a. Distributed Energy Storage Integration Pilot Program. Technology Integration a. Distribution Volt VAR Control b. Advanced Outage Detection and Analytics

20 0 A. Advanced Technology Laboratories Advanced Technology (AT) labs allow us to safely evaluate, test, and pilot new and emerging technologies that support SCE in complying with public policies such as modernizing the grid, providing clean energy, enabling customer choice, and integrating distributed resources. The labs also provide a means to test newer versions of existing technologies to support increased operating capabilities when replacing equipment that has reached the end of its lifecycle. SCE maintains and operates AT laboratories at three locations: the Fenwick Laboratories in Westminster, CA; Pomona Laboratory, in Pomona, CA; and the EDEF, located in Westminster, CA. The Fenwick labs support technology evaluation, proof-of-concept validations, and predeployment testing. This testing includes evaluating smart grid communications and cyber-security hardware, software, and systems. Our work also examines interconnecting and testing next generation substation communications, automation, and protection equipment. Our Pomona lab tests and evaluates alternative fuel and electric vehicles, fleet vocational equipment (auxiliary support equipment our utility crews utilize once deployed to a jobsite, such as gas/diesel generators, hydraulic tools, bucketlifts/cranes and electric power tools), and electric charging infrastructure. The Pomona lab also tests and evaluates battery storage components and their integration into grid-ready energy storage systems. EDEF performs evaluations of largely unproven emerging technologies in a high-voltage grid environment, and helps address immediate operational concerns, such as integrating intelligent sensors, communication devices, solar inverters, and energy storage. See Overview of Activities section above for further details regarding energy policies integrating distributed resources. Formerly known as the Westminster Labs. Formerly known as the Electric Vehicle Technical Center (EVTC), which has been continuously operated by SCE since. The name change is due to the expansion of testing in the field of energy storage and electric transportation. The EVTC is approved by the U.S. Department of Energy to evaluate electric vehicle baseline performance and fleet operations. As a result of the EVTC s prominence in the industry and the importance of its work, President Obama made an extended visit to the facility in 00. Converts the variable direct current (DC) output of a photovoltaic (PV) solar panel into a utility frequency alternating current (AC) that can be fed into the grid.

21 Figure V- Advanced Technology 0-0 Recorded/0-00 Forecast Portion of WBS Element CET-OT-OT-AT (CPUC-Jurisdictional Constant 0 and Nominal $000). Fenwick Labs Upgrades a) Capital Forecast Table V- Fenwick Labs Upgrades 0-00 Forecast (Nominal $000) Capital Expenditures (Nominal $000) Project No CET-OT-OT-AT $, $, $, $, $, $, b) Project Description The Advanced Technology Fenwick Laboratory Facility (Fenwick Labs) enables our engineers to safely evaluate and test emerging technologies, in a dynamic and fully integrated grid environment. The Fenwick Labs are composed of eight labs, which were constructed in 00 and Refer to WP SCE-0 Vol., pp. -. Refer to CET-OT-OT-AT-0 and CET-OT-OT-AT-0.

22 0 0 became fully operational in 0. The following provides the name and a brief description of each of the labs: Situational Awareness Lab Allows SCE to monitor the status of the electric grid and display test data from adjacent labs. Utilizing a scalable video wall, this facility is also able to analyze historic outage data using proprietary system modeling tools. Communications and Computing Lab Provides a platform to test and evaluate grid communications and cyber security hardware, software and systems. Understanding the properties of high-speed, low latency, and wireless communications networks is critical to developing a secure, digitally networked grid. Power Systems Lab Utilizing real-time power systems simulators allows SCE to perform closed loop testing of protection and control equipment and power system studies. These studies are conducted to understand the impact of large scale renewable integration, as well as develop more sophisticated wide area monitoring, protection and control capabilities for the electric grid. Distributed Energy Resources Lab Inverter based generators and loads, such as residential solar panels, batteries, and air conditioners, are tested and evaluated in SCE s Distributed Energy Resources Lab. Understanding the behavior of these devices during grid faults and voltage and frequency transients will help SCE continue to maintain a reliable distribution system. Substation Automation Lab Designed for interconnecting and testing next generation substation communications, automation, and protection equipment. Incorporating these secure and open standards based systems will help SCE continue to maintain smarter, safer, reliable, and cost-effective substations. Distribution Automation Lab Evaluates the performance of advanced field devices to develop an integrated, scalable and fully automated distribution system. These efforts will help SCE safely and reliably manage the integration of distributed energy resources such as residential solar panels and PEVs. Grid Edge Solutions Lab Helps provide customers with advanced tools and resources that will enable informed and responsible energy use. The lab evaluates third party smart energy devices to help ensure compatibility with Edison SmartConnect meters and to support SCE s rate programs and services.

23 0 0 Garage of the Future Lab Demonstrates and evaluates the synergy of various technologies including distributed energy storage, renewable energy resources, PEV charging infrastructure and Edison SmartConnect meter communication. The Commission approved the construction and operations of the Fenwick Labs in the 0 GRC. SCE requested subsequent expansion of the labs in its 0 GRC, most of which the Commission adopted. Beginning in 0, the Fenwick Labs site will expand upon its existing capabilities, adding two additional labs (the Distribution Grid Analytics Lab and the Controls Lab) and a Technology Transfer Center supporting grid modernization and SCE s DRP. The Distribution Grid Analytics Lab models and analyzes circuit and customer characteristics to determine mitigation strategies for high penetration of Distributed Energy Resources. The Lab s equipment is divided into two major areas: Systems to test Smart Inverter equipment; and system models and time series data for renewable integration analytics. The Smart Inverter test equipment includes a distribution grid simulator and a solar PV simulator. The Smart Inverter is essentially connected between these two simulators to provide a test bed to analyze the operating characteristics of the inverter. The renewable integration analytics systems focus on maintaining accurate and detailed circuit, demand, and resource models. This analytic environment requires managing large time series data sets utilizing database systems and analytical tools. The Controls Lab focuses on determining the control strategies to implement those mitigation identified by the Distribution Grid Analytics Lab. These control strategies are tested and hardware control systems are evaluated against a set of scenarios to determine their effectiveness in managing and controlling the DERs. The simulation tools in the Controls Lab require similar accurate and detailed models, but these models need to operate on a larger system model to determine optimization opportunities across a particular region of the distribution grid. These systems are generally referred to as real-time digital simulators and are directly connected to hardware control systems. This hardware-in-the-loop is beneficial in testing critical control systems in a simulated lab environment ahead of integrating these systems into actual operating systems. The Technology Transfer Center provides a hands-on environment for engineers, field employees, and operators to become familiar with future, potentially deployable tools and See D.--0, p. 0.

24 0 0 0 equipment. This Center is flexible enough to feature technologies and learnings from any of SCE s laboratories and also provides a means to host technology transfer opportunities with the DOE, EPRI, and other utilities. As noted above, SCE s role will be to lead, participate in, or monitor testing activities. In addition to providing the hands-on environment for SCE-led efforts, this Technology Transfer Center provides a means to inexpensively and effectively convey the learnings from other entities, where SCE plays more of a participant or monitoring role. While each lab has a testing and evaluation element, the labs are interconnected to allow testing across the entire electric system supply chain generation, transmission, distribution, and behind-the-meter devices. The Fenwick Labs continue to support technology evaluation, proof-ofconcept validations and pre-deployment testing. This GRC request will allow the Fenwick Labs to acquire new equipment, refresh older equipment, and expand the capabilities of the labs. c) Need for Project Including Risk Avoidance The Fenwick Labs expansion will: Enhance the evaluation capabilities of the Substation Automation Lab and the Power Systems lab; Integrate capabilities of the Controls Lab and the Distribution Grid Analytics Lab spaces; and Create a Technology Transfer Center that will provide a hands-on environment for engineers, field employees, and operators that supports conveying learnings from the latest technology assessments, conducted by SCE and other entities (as appropriate). The Substation Automation Lab is currently equipped to support automation testing for distribution-level substations, which typically monitor and control an average of 0 intelligent electronic devices. To support automation testing for larger substations, which can monitor and control an average of over 00 intelligent electronic devices, SCE must increase its lab capabilities. To support and safely integrate increasing renewables and DERs on the transmission and distribution system, SCE needs an expanded representation of its system. The Power Systems Lab utilizes a real time digital simulator (RTDS) to simulate and test advanced protection control applications for SCE s transmission and distribution system in real time. The RTDS can support many applications, including relay protection, control system testing, advanced wide area protection system, synchrophasor applications, special protection schemes, distribution system application, and renewables and distributed generation integration analysis. Having RTDS in-house also allows SCE to

25 0 0 conduct comprehensive testing before making widespread field deployments. This is a prudent approach that avoids potentially costly errors or setbacks in operations. SCE is expanding the Power Systems lab to accommodate upgrades to the RTDS racks and put in additional peripheral equipment. This will enhance configurations and capabilities and allow SCE to examine: How system restoration procedures should be improved with high penetration of renewables; How DERs will affect the transmission operations; and How we can foster grid stability and damp oscillations within a high renewable area. Undamped power system oscillations can lead to grid instability. As DERs and energy storage become prevalent, these resources must be integrated into the safe and reliable operations of the grid. The Controls Lab and Distribution Grid Analytics Lab model simulate and analyze grid operations with high penetrations of DERs at the distribution level. At the Controls Lab, we focus on testing the physical DER controls in real time. The Grid Analytics Lab simulates power flows using Advanced Meter Infrastructure (AMI) data and circuit models. To help SCE advance to a more modern grid, the equipment and software we use to test and evaluate must be kept current. New and updated equipment and software improve the accuracy of analysis, help ensure lab capabilities map to more recent technologies, test and validate vendor claims of newer system capabilities, promote safety and reliability, and help us determine if and how widespread deployments can occur on SCE s grid. The Controls Lab will increase our abilities to assess and simulate the ramifications of increasing penetration of DERs on the grid over the next five years. As DER penetration increases, engineers and grid operators can no longer make power flow assumptions based on one-way power flow. This requires new simulation capabilities to process and analyze DER-related systems data. 0 Examples of DER-related systems data include load data (e.g., AMI, SCADA), Local oscillation has been observed for renewables due to incorrect settings by the generator owner. 0 To address these immediate operational needs, SCE is requesting a Grid Analytics Applications software tool (SCE-0, Vol., Information Technology). Our request aligns with (and is not duplicative of) the System Modeling Tool (SMT) (SCE-0, Vol. 0, Grid Modernization).

26 0 0 0 economic data (e.g., cost of solar PV, storage), and results data (e.g., voltage, current, real and reactive power). DERs can alter the direction of power flow. Due to their dynamic nature, the power flow can significantly vary within short time intervals. Therefore, accurate and detailed situational intelligence is needed to provide full insight into DER behavior. Situational intelligence at the distribution level will let us understand the behavior of the circuits and the power flow down to line segment levels. Such capability is needed so we can adequately support the Commission in the DRP and IDER proceedings. We require extensive circuit modeling to manage increasing DER resources. SCE s further integration of its modeling environment in the Distributed Grid Analytics Lab will gradually increase the number of circuits, until the full SCE system can be modeled down to the service transformer and customer meter levels. These modeling systems will be a hybrid of software and hardware. Specific equipment includes Power flow solvers, which support a fuller understanding of real and reactive power. Flow down to line segments and service transformers help fully capture the dynamic behavior of the distribution circuits, especially under high penetration DERs. This type of complex and granular modeling requires parallel processing servers to solve the problems within acceptable time frames. Interface servers and protocol conversion interfaces enable the power flow solvers to communicate with disparate DER systems. Finally, once the DERs are simulated and interface with the power flow solvers, large volumes of data are generated. This data needs to be analyzed via the analytics software, and presented in a manner which allows engineers and system operators to properly assess how the circuits behave with and without the high penetration of DERs. The Fenwick Labs also must upgrade and replace equipment for the lab network. The lab network supports all the labs within Fenwick, and provides a stand-alone test environment, allowing for integrated testing. All the labs are interconnected to allow us to evaluate technology across a broad spectrum of SCE grid needs. The lab network also maintains functional copies of production hardware and software. This allows us to completely simulate, test, and prove out emerging technologies prior to placing any of these technologies in in service on the grid. These upgrades and replacements will help ensure the network remains stable, while also allowing for necessary expansions of the network to support the growing volume of data and technology integration needs of the labs. SCE conducted an extensive survey comprising leading research universities, private companies, and research consortiums to determine whether any entity possesses the capabilities to address SCE s immediate operational concerns, such as providing extensive circuit modeling to 0

27 0 increase DER resources. Specifically, SCE requires extensive circuit modeling of SCE s entire distribution system. SCE requires long-term dynamic testing of emerging technologies in a simulated, integrated grid environment to test for reliability and safety. The simulated grid environment offered by the labs accurately reflect current real-life grid conditions as the grid continues to age and change. Our survey identified no single entity that can address all of SCE s operational concerns or has the diverse capabilities of Fenwick Labs. Therefore it is more efficient to leverage the existing labs and experienced staff, rather than attempting to piece-meal all the work to multiple third parties for these same testing and evaluation services. d) Scope and Cost Forecast As shown in the Table below, SCE forecasts the total cost of these enhancements to equipment and software will be $. million from These estimates were developed using existing contracts, recent purchases or accounting/engineering estimates. Please see below for further details: Year Cost Description of Expenditures 0 $.M Refresh/upgrade real-time digital simulators for the Power Systems Lab Refresh a high-power AC/DC power source and acquire a new AC/DC power source for the Garage of the Future Purchase a controls system test bed to support hardware in the loop testing for the Controls Lab Purchase a data warehouse and TB of storage for the Distribution Grid Analytics Lab Purchase a new digital load/generation simulation system for the Distribution Grid Analytics Lab Purchase two power quality data acquisition systems for the Distribution Grid Analytics Lab Improve facility test infrastructure - minor improvements to retool lab to accommodate different types of testing operations Purchase relays to expand testing in the Controls, Power Systems, and Substation Automation Labs For additional survey details, please refer to WP SCE-0 Vol., pp. - (Advanced Technology Laboratories Workpapers AT Technical Testing Facility Survey w Blinded Results). SCE provides additional detail with respect to the cost estimates and deployment of assets in WP SCE-0 Vol., pp. - (Advanced Technology Laboratories Workpapers). The costs for the structural improvements needed at the Fenwick Lab are included in SCE-0, Vol.. The costs shown here represent the new and replacement equipment for the project.

28 0 $.M Refresh/upgrade real-time digital simulators for the Power Systems Lab Purchase hardware and software technologies for use in big data test applications for the Distribution Grid Analytics Lab Purchase an additional TB of data storage for the Distribution Grid Analytics Lab Improve facility test infrastructure - minor improvements to retool lab to accommodate different types of testing operations Purchase two power system simulators for the Substation Automation Lab Purchase additional visualization hardware and installation for new and expanded lab facilities Purchase relays to expand testing in the Controls, Power Systems, and Substation Automation Labs Refresh computers and monitors for Substation Automation, Grid Edge Solutions, and Distribution Automation Labs 0 $.M Refresh/upgrade real-time digital simulators for the Power Systems Lab Purchase an additional TB of data storage for the Distribution Grid Analytics Lab Purchase an additional controls system test bed to support hardware in the loop testing for the Controls Lab Purchase two power quality data acquisition systems for the Distribution Grid Analytics Lab Purchase relays to expand testing in the Controls, Power Systems, and Substation Automation Labs Improve facility test infrastructure - minor improvements to retool lab to accommodate different types of testing operations 0 $.M Refresh/upgrade real-time digital simulators for the Power Systems Lab Refresh scalable video display and associated specialized construction Purchase.TB of data storage to support the increase in data required for simulating larger portions of the electrical grid - Refresh four power system simulators and purchase three new power system simulators Purchase two new digital load/generation simulation systems to increase the simulation and analytic abilities of the Controls Lab Purchase a controls system test bed to expand the electrical system simulations for the Controls Lab Purchase relays to expand testing in the Controls, Power Systems, and Substation Automation Labs Purchase a power quality data acquisition system for the Distribution Grid Analytics Lab Improve facility test infrastructure - minor improvements to retool lab to accommodate different types of testing operations

29 00 $.M Refresh Advanced Technology Lab Network hardware to provide increased connectivity between labs Refresh/upgrade real-time digital simulators for the Power Systems Lab Refresh Technology Transfer Center Equipment, including: benches for simulations; test relays; and a digital simulator Purchase an additional TB of data storage for the Distribution Grid Analytics Lab Purchase a controls system test bed to expand the electrical system simulation for the Controls Labs Refresh digital content in the labs to inform visitors of the work being conducted in the labs Purchase relays to expand testing in the Controls, Power Systems, and Substation Automation Labs Refresh computers and monitors for the Garage of the Future, Distributed Energy Resources, Power Systems, and Situational Awareness Labs Purchase a power quality data acquisition system for the Distribution Grid Analytics Lab Improve facility test infrastructure - minor improvements to retool lab to accommodate different types of testing operations. Pomona Laboratory Expansion a) Capital Forecast Table V- Pomona Laboratory Expansion 0-00 Forecast (Nominal $000) Capital Expenditures (Nominal $000) Project No CET-OT-OT-AT $, $,0 $,0 $,0 $,0 $,0 b) Project Description Since, SCE has operated the Pomona Laboratory (Pomona Lab) to test, evaluate, and validate the performance reliability and safety of emerging electric and hybrid vehicles and their energy storage battery technologies. The Pomona Lab is approved by the U.S. Department of Energy to evaluate electric vehicle baseline performance and fleet operations. SCE couples electric and hybrid vehicles with stationary electric storage technologies, due to the commonality of applications.

30 0 0 The Commission approved funding for the energy storage and transportation technology test facilities and pilot programs in SCE s 0 GRC decision. The current capital request includes funds to: Test Modified Test Vehicles, class- Plug-in Hybrid Electric Vehicle (PHEV) trucks and PHEV pickup trucks; Install new testing infrastructure, new and replacement equipment; and Expand and update existing lab facilities to increase testing capabilities for energy storage and electric transportation. c) Need for Project Including Risk Avoidance The Pomona Lab tests and evaluates alternative fuel and electric vehicles, and fleet vocational equipment (e.g., stationary generators, lifts and power tools). Past testing has provided vital information that has helped inform SCE s projects and activities. Based on recent advanced testing, SCE added Mitsubishi Outlander Plug-in Hybrid Electric Vehicles (PHEV) Sport Utility Vehicles (SUVs) to its vehicle fleet. Another example is found in the Pomona Lab s work in evaluating PEV charging infrastructure power quality. This work supported California s Title 0 battery charging efficiency standards with the test procedures to determine efficiency. This work influenced the Society of Automotive Engineers (SAE s) standards for Power Quality Requirements for Plug-in Electric Vehicle Chargers and Power Quality Test Procedures for Plug-in Electric Vehicles. The work also informed SCE s selection and approval of Electric Vehicle Supple Equipment (EVSE s) for SCE s Workplace Charging Pilot. Testing and evaluating the Modified Test Vehicle, alternative fuel PHEV Class trucks and PHEV pickup trucks will encompass examining the vehicles range, energy consumption, capabilities, charging system impact, and reliability under various utility duty cycles. All of this work helps us choose wisely and operate the vehicles safely and efficiently. D.--0, pp. -. Heavy-duty vehicle with a gross vehicle weight rating between,00 and,00 pounds as defined by the Environmental Protection Agency. In SCE s fleet, these vehicles are utilized as trucks with material handling booms/cranes and line trucks. Codes and Standards Enhancement Initiative for PY0: Title 0 Standards Development; Proposed Title 0 California Efficiency Standards for Battery Charger Systems. SAE defines standards for the domestic automotive market. See See

31 0 0 The Pomona Lab s current space constraints limit its capacity to support testing of electric transportation technology. SCE evaluates electric vehicle charging infrastructure to make sure that the large numbers of electric vehicles connecting to the grid, including SCE s fleet, do not adversely affect the safety and reliability of operations or customer service. However, the lack of space limits SCE s ability to test and evaluate fast-charger technology. 0 Today, many available vehicles are capable of fast charging; the popularity of this emerging technology with automakers is growing, with several automakers planning on developing more vehicles with even higher power levels. As configured, the Pomona Lab is not equipped to evaluate fast-charging technology or electric vehicles with fast-charging technology. The Pomona Lab expansion will repurpose previously unused yard space into outdoor testing space. The expansion of the Electric Vehicle Supply Equipment (EVSE) test infrastructure will allow SCE to evaluate the grid impact from fast-charging capable vehicles and will enable SCE to evaluate Vehicle to Grid two-way exchanges of energy. In addition, the request includes funding for charging infrastructure test equipment, data acquisition equipment, and emission and fuel measurement instruments. The Pomona Lab has yielded significant operational knowledge concerning energy storage systems. SCE tests and evaluates various energy storage technologies from the basic components (e.g., battery cells, battery modules, communication, and monitoring and control equipment), through complete small-scale system testing in a laboratory environment. This capability differs from the other labs and pilot projects, which test and/or pilot full-scale battery energy storage systems. SCE s testing and evaluation of energy storage systems has provided safety and reliability information that helps us better integrate energy storage systems onto SCE s grid. For example, SCE tested each of the components, which comprised the Tehachapi energy storage system at its Pomona Labs. SCE engineers conducted eleven rounds of component testing prior to allowing the manufacturer to commission the full system. Each round of component 0 Charging at a higher rate than AC Level, as defined in the Standard Automotive Engineers (SAE), Standard J. SCE s Tehachapi Wind Energy Storage Project (TSP) was funded in part by the Department of Energy as part of the American Recovery and Reinvestment Act funding and in part by SCE s customers per Commission Resolution E-. TSP was not funded as part of a general rate case proceeding and is used as an example of the type of work performed in our Pomona Labs.

32 0 0 testing discovered problems with the system s safety and operational algorithms, and resulted in a software update. Absent this evaluation, the main system would have taken several months to commission, diagnose, and repair in a remote field environment. This would have increased costs and delayed the successful delivery of the project. Final system acceptance testing would have taken many months. Instead, it only took us two weeks to perform this work because we were able to address issues beforehand in laboratory conditions. Similarly, lab testing for the residential energy storage units helped us efficiently and successfully deploy and operate the Irvine Smart Grid Demonstration residential energy storage units. The lab testing identified various over 00 safety and design issues in the early models. Without this testing, we would have seen serious safety and reliability issues, including potential fire issues. While some errors still occurred in the field, safety measures developed in lab testing and evaluation helped us avoid any safety issues. Besides the residential energy storage units, SCE thoroughly tested the Irvine Smart Grid Demonstration Community Energy Storage device and Solar Car Shade Battery Energy Storage System (BESS) in the lab, before commissioning and operating these systems in the field. Again, lab testing allowed SCE engineers to gain operational experience with the systems, and address safety and reliability issues with the manufacturers in a safe, controlled environment with no grid impact prior to operating the deployed systems on SCE s grid as part of the Irvine Smart Grid Demonstration (ISGD) project. Without the lab testing beforehand, these safety and reliability issues would have likely surfaced in the field and would have led to additional delays and costs. Pomona Lab s capacity to support the energy storage demonstrations required by the DRP proceeding, and the Commission s energy storage mandate, is constrained by lab space. SCE cannot test medium-sized energy storage systems (designed for small commercial, or industrial customers) or common storage elements for large utility energy storage systems. In light of the number of different battery systems emerging, and the needs associated with SCE s DRP demonstrations, our proposed expansion of the Pomona Lab and installation of new testing infrastructure and equipment at The Irvine Smart Grid Demonstration (ISGD) was funded in part by the Department of Energy as part of the American Recovery and Reinvestment Act funding and in part by SCE s customers per D ISGD was not funded as part of a general rate case proceeding.

33 0 0 the Advanced Energy Storage Test pad will allow SCE to test and evaluate a greater variety of battery energy storage systems. The lab expansion will allow SCE to run more simultaneous simulations. This reduces the overall test time, allows a greater number of tests, and can expedite the timelines for demonstration projects. It is vital that SCE test and evaluate the above-mentioned emerging technologies, so we can make sure that any integration on the grid is safe and reliable for our customers. To support these activities, SCE must expand existing laboratory facilities, install new test infrastructure and equipment (Advanced Energy Storage Test Pad), upgrade existing lab test equipment, and replace deteriorated equipment, including aging battery cyclers, environmental chambers and data acquisition systems. As with the Fenwick Labs, SCE conducted an extensive survey comprising leading research universities, private companies and research consortium to determine whether any entity possesses the capabilities SCE needs. Specifically, SCE needs long-term, dynamic testing, which simulates an integrated grid environment for energy storage systems, electric vehicles and vehicle charging equipment. Survey results show no single entity possesses all of SCE s needed capabilities. Given that SCE can leverage the existing Pomona Lab structure, and skilled and experienced staff are already in place, expanding the Pomona Lab to increase testing capabilities on electric transportation and larger scale energy storage systems represents the most efficient way to address SCE s testing and evaluation needs. The ability to conduct EVTC testing allows SCE to efficiently and accurately assess new technologies and their impacts on grid reliability and safety. Testing in the simulated grid environment of the Pomona Lab improves our ability to support California s transportation electrification, energy storage and other energy and environmental policy goals. The Advanced Energy Storage Test Pad is a large, outdoor concrete area designed to accommodate various large, outdoor-rated, commercial, industrial, and utility-sized energy storage systems. The pad will be designed to integrate with the Pomona Lab test infrastructure, as well as additional test connections and data acquisition systems. For additional survey details, please refer to WP SCE-0 Vol., pp. - (Advanced Technology Laboratories Workpapers AT Technical Testing Facility Survey w Blinded Results).

34 0 d) Scope and Cost Forecast As shown in the Table below, SCE forecasts the total cost of these enhancements to equipment and software will be $. million from Cost forecasts are based on current and historical quotes. The lab refresh equipment cycles are based on manufacturer data (when available), historical breakdown data for the equipment, and Pomona Lab engineering. This means that not all lab equipment is refreshed every year. For example, there are humidity-controlled environmental chambers in the Pomona Lab, which have an estimated life of -0 years. Since these machines were not all purchased in the same year, the refresh cycles are staggered across multiple years. We also consider equipment breakdown records when selecting equipment for refresh. We may refresh equipment outside of its predefined refresh cycle due to the documented frequency of breakdowns. As such, the table below shows instances of equipment refresh in multiple years. Please see below for additional details: Year Cost Description of Expenditures 0 $.M Refresh of standard-sized temperature and humidity controlled environmental chambers for use with battery and energy storage system (ESS) testing. Refresh of medium and high power advanced bidirectional cycler for use with battery and ESS testing for medium power, for high power. Refresh of low and high power grid simulator for use with ESS and electric vehicle supply equipment (EVSE) testing for low power, for high power. Purchase of new vehicle data acquisition system to expand testing capabilities for vehicle testing. Refresh of fuel flow meters for use with vehicle testing, Purchase of a lab network data control, collection, and analyzer to expand testing capabilities in the lab for use with ESS testing. Facility test infrastructure -- minor improvements to retool lab to accommodate different types of testing operations for ongoing ESS, EVSE, and vehicle testing. 0 $.0M Refresh of standard-sized temperature and humidity controlled environmental chambers for use with battery and energy storage system SCE provides additional detail with respect to the cost estimates and deployment of assets in WP SCE-0 Vol., pp. - (Advanced Technology Laboratories Workpapers). Ibid. Highly sophisticated, precise, programmable battery equipment that allows a battery to cycle (i.e., to perform a charge (energy into the battery) and discharge (energy out of the battery)).

35 (ESS) testing. Refresh of medium power advanced bidirectional cycler for use with battery and ESS testing. Refresh of dynamic power smart load banks for use with ESS and EVSE testing. Refresh of low power grid simulator for use with ESS and electric vehicle supply equipment (EVSE) testing. Refresh of data acquisition systems for use with ESS and EVSE testing. Purchasing an emissions testing unit for use with vehicle testing. Facility test infrastructure -- minor improvements to retool lab to accommodate different types of testing operations for ongoing ESS, EVSE, and vehicle testing. 0 $.0M Refresh of medium power advanced bidirectional cycler for use with battery and ESS testing. Refresh of static power load banks for use with ESS and EVSE testing. Refresh of high power grid simulator for use with ESS and electric vehicle supply equipment (EVSE) testing. Refresh of fuel flow meters for use with vehicle testing total. Facility test infrastructure -- minor improvements to retool lab to accommodate different types of testing operations for ongoing ESS, EVSE, and vehicle testing. 0 $.0M Refresh of walk-in temperature and humidity controlled environment chamber for use with battery and ESS testing. Refresh of data acquisition systems for use with ESS and EVSE testing. Purchase of an emissions testing unit for use with vehicle testing. Facility test infrastructure minor improvements -- retool lab to accommodate different types of testing operations for ongoing ESS, EVSE, and vehicle testing. 00 $.0M Refresh of standard-sized temperature and humidity controlled environmental chambers for use with battery and energy storage system (ESS) testing. Refresh of medium power advanced bidirectional cycler for use with battery and ESS testing. Refresh of dynamic power smart load banks for use with ESS and EVSE testing. Refresh of data acquisition systems for use with ESS and EVSE testing. Refresh of fuel flow meters for use with vehicle testing. Facility test infrastructure -- minor improvements to retool lab to accommodate different types of testing operations for ongoing ESS, EVSE, and vehicle testing.

36 . Equipment Demonstration Evaluation Facility a) Capital Forecast Table V- Equipment Demonstration Evaluation Facility (EDEF) 0-00 Forecast (Nominal $000) Capital Expenditures (Nominal $000) Project No CET-OT-OT-AT $, $, $ $ $ $, 0 0 b) Project Description The EDEF is a high-voltage test facility located within an existing SCE substation, which was built to test a variety of new technologies to support renewables integration, grid modernization, infrastructure replacement, and safety enhancements. The EDEF allows SCE engineers to evaluate largely unproven emerging technologies on energized high-voltage equipment and distribution circuits. These evaluations occur under real-world conditions and are crucial to determining operational successes and failures before we deploy the technologies. Testing capabilities include: Fault Testing (High Impedance or Other): High impedance fault detection testing on circuits feeding customers was not previously possible, due to the serious safety hazards a downed line would create. In addition, performing lab simulations of high impedance faults is difficult, as very little data on the characteristics of these types of faults exists. Since EDEF was designed to include areas of sand, poles, subterranean vaults, asphalt, and cement, engineers can now test for different types of high impedance faults and develop appropriate mitigation strategies to protect our customers and the public. Construction/Installation Methods Validation: Presently, apparatus engineers must develop installation standards prior to piloting any devices. However, engineers may not be certain of the methods for proper deployment and operation, given their limited experience with such equipment. EDEF provides engineers with the opportunity to become familiar with the equipment, while investigating the safest and most effective way of installing the various devices. 0

37 0 0 Distribution and Substation Automation: As technologies continue to evolve and additional demands are placed upon the system, SCE will need to deploy a variety of communicating field devices on its distribution circuits and substations to enable distribution and substation automation. These devices include controls for capacitor banks to help achieve advanced volt and VAR control goals on the distribution system, relays and switching equipment to help SCE isolate faults and reconfigure circuits to restore power to customers more quickly, and the high-speed communication network needed to tie everything together. With EDEF, SCE engineers will be able to safely demonstrate these communicating field devices and necessary communication networks prior to piloting. In this way, engineers will be able to test and judge the viability of these devices in a harsh, high-voltage environment. We simply cannot duplicate this environment in the laboratory. The flexibility provided by successful and accurate testing of these devices will allow SCE to better integrate and optimize customer-interconnected distributed energy resources (DER). By developing and constructing an EDEF, SCE will improve engineering and power delivery processes by obtaining crucial information on equipment capabilities and operations. There is increasing pressure to replace and upgrade infrastructure, and it is increasingly important to validate equipment performance in an energized facility prior to piloting or deploying that equipment on the power grid. This kv Test Track facility will provide SCE the ability to pre-test new equipment and/or systems without adversely affecting or disturbing customers. It also allows T&D to conduct tests in a safer environment than evaluating on live customer circuits in the field. SCE requested funding for the EDEF in the 0 General Rate Case to develop the ability to test and evaluate emerging technologies in a live grid environment. No party opposed the request and SCE proceeded with construction. SCE planned the EDEF project in 0 and prepared the location for site improvement in 0. In 0, SCE began constructing the facility. In November 0, the Commission issued its 0 GRC Decision. The Commission disallowed the EDEF project because SCE has not shown that the technical problems it A.--00, Exhibit SCE-0, Vol., at pp. -0. D.--0, p..

38 0 0 would address are unique to SCE and that other more cost-effective options do not exist for doing this research. 0 However, as of December 0, SCE had already spent $. million on the project. SCE was constructing and finalizing the site. At that point, SCE concluded that it would be more prudent to finish the project, rather than forgo the sunk costs. c) Need for Project, Including Risk Avoided While the Fenwick and Pomona labs enable engineers to perform technology evaluations under simulated conditions, the EDEF allows us to evaluate energized equipment in a live circuit, high-voltage environment. There can be significant differences with respect to modeling and lab testing and how a technology reacts in the live circuit environment. Moreover, there are some items that simply cannot be effectively tested in a lab, or safely and reliably tested on a live customer circuit. For example, SCE recently conducted high impedance fault tests, to better detect when a wire is on the ground and obtain prompt notification of the situation. As discussed in SCE-0, Volumes and, energized downed wires are a significant public safety risk. Our current mitigation programs focus on upgrading small wire and adding branch line fuses. Both of these efforts are designed to reduce the probability of wire down events. At EDEF, our efforts focus on developing alternate mitigations that can actually detect energized wire down events and respond quickly to de-energize the compromised conductor. These initial tests conducted at EDEF demonstrated new technologies, which show real potential to address this public safety concern. Technology evaluations using EDEF live circuits are also necessary to evaluate equipment, to better determine grid readiness prior to deployment; this is the logical next step in the work conducted in the Advanced Technology Labs and augments SCE s existing technology evaluation capabilities. The key to successful smart grid deployments is testing, evaluating and validating a technology s potential for real-world application. Prototype devices allow engineers to test and evaluate performance at a smaller scale, which helps identify any potential scale-up issues before a device is piloted on customer circuits. Since the circuit at EDEF does not service customers, it will allow SCE to 0 Id. at p. 0. For additional details, please refer to WP SCE-0 Vol., pp. - (Advanced Technology Laboratories Workpapers, EDEF: Spread Spectrum Time Domain Reflectometry for Fault Detecting in an Electricity Distribution System Phase A Extension, Final Report).

39 0 0 conduct energized demonstrations and evaluations of how emerging technologies may (or may not) be placed onto our system. Substation and distribution automation requires deploying a variety of communicating field devices on its distribution circuits. These devices include controls for capacitor banks and switching equipment to help SCE locate faults and reconfigure circuits to restore power to customers more quickly. Advanced substation and distribution automation is a key component to Grid Modernization to support high integration of DERs. EDEF provides SCE a live, energized environment to safely evaluate communicating devices and communication networks. Advancing these communicating devices and communication networks for substation automation will allow SCE to further integrate DERs onto its distribution grid. With respect to the Commission s determination that SCE had not shown that EDEF would address issues that are unique to the company, EDEF was not designed for that purpose. SCE identified a specific need for a set of capabilities that would allow it to safely, reliably, and prudently accelerate testing and deploying new technologies to support California s energy and environmental goals, and specifically with respect to its fault detection activities, work to improve grid safety. The standard in judging these expenditures is whether they are prudent. California s energy and environmental policies are leading the nation and driving the change. The Commission s focus on improving customer, employee, and public safety is supported by EDEF. In response to the Commission s query whether more cost effective options exist to do this work, SCE conducted an exhaustive survey of research laboratories, research universities, and research consortiums to determine whether any entity meets SCE s specific testing and evaluation needs. Specifically, SCE needs a facility that can provide evaluation of emerging technologies on a live circuit that replicates SCE s distribution grid environment. With these capabilities, we can address concerns that are specific to its system. The results of the surveys show that EDEF is the most efficient means to execute this work. While other entities possess testing and evaluation capabilities, no entity can provide all of the capabilities at EDEF, nor can they provide the flexibility of testing options available at SCE s facility. No entity other than EDEF possesses the vital testing and evaluation

40 0 0 capability to simulate voltage frequency and real and reactive power (utility and customer loads) on a live distribution circuit. A copy of the survey results is included with our workpapers. In designing and constructing EDEF, SCE minimized land and construction costs of the facility by using available land at its existing Shawnee substation. The test circuit is a short distance from the main circuit breaker at the substation. This reduces equipment costs. The Shawnee site had enough room on its existing equipment to dedicate access to kv for the test circuit, without compromising customer reliability or safety. () Scope and Cost Forecast In 0, SCE spent $. million to design, construct, and purchase EDEF infrastructure, including load banks, capacitors and control room equipment. This $. million also includes the construction of the kv test circuit at the site. In 0, SCE will complete the final phase of construction for $. million. These costs comprise $. million for constructing the Control Room, additional Site Improvements to secure the facility, and $,000 to procure and install equipment. SCE will also integrate the installation of Large Energy Storage Testing Apparatus (LESTA). This allows SCE to safely evaluate the performance of energy storage systems greater than 0 kw up to MW and validates manufacturers performance claims prior to deployment on the grid. The cost of this integration is $,000. In 0, SCE will complete constructing the control building and procuring and installing new equipment and devices for a total cost of $. million. In years 0 through 00 (at a cost of $,000, $,000 and $,000 respectively), SCE will procure, replace, and install lab tools and equipment. B. Energy Storage Pilots Energy storage can potentially help transform our grid, and enable more widespread use of renewable resources. To integrate storage, SCE plans to conduct pilots to better understand energy storage performance and cost competitiveness, and making sure electric service remains safe and reliable as more energy storage is integrated onto the grid. Figure V- below shows the capital forecast For additional survey details, refer to WP SCE-0 Vol., pp. - (Advanced Technology Laboratories Workpapers AT Technical Testing Facility Survey w Blinded Results). SCE provides additional detail with respect to the cost estimates and deployment of assets in WP SCE-0 Vol., pp. - (Advanced Technology Laboratories Workpapers). See A.--00, Exhibit SCE-0, Vol., Engineering and Grid Technology, p..

41 for our Distributed Energy Storage Integration (DESI) program, including the program s proposed expansion. Figure V- Energy Storage Pilots Recorded 0-0 /Forecast 0-00 Portion of WBS Element CET-OT-OT-AT- (CPUC-Jurisdictional Constant 0 and Nominal $000). Distributed Energy Storage Integration (DESI) Pilot Program a) Capital Forecast Table V- Distributed Energy Storage Integration (DESI) Pilot Program 0-00 Forecast (Nominal $000) Capital Expenditures (Nominal $000) Project No CET-OT-OT-AT $, $, $, $, $,0 $, Refer to WP SCE-0 Vol., p..

42 0 0 b) Project Description The 0 GRC Decision approved the Distributed Energy Storage Integration (DESI) Pilot Program. We developed the DESI Pilot Program to test the ability of a Battery Energy Storage System (BESS) to provide feeder load relief, give voltage support, and smooth the delivery of energy from renewable distributed generation to the grid. DESI will also establish the aggregation and control of multiple systems and the ability of energy storage systems to integrate to the grid safely and reliably. Specifically, the three DESI pilot systems are focused on how to best integrate energy storage onto the grid. The projects in DESI demonstrate a progression in complexity related to communications and control. DESI is a single self-contained energy storage system with basic communication capabilities we developed in 0. In 0, DESI will use advanced controls and monitoring, and integrate grid operations and distributed energy resources. In late 0, DESI will support the aggregation of multiple systems. Together, these projects will inform future deployments and in developing advanced network infrastructure. During 0, SCE installed the first DESI pilot (DESI ), a. MW,. MWh lithium-ion battery system. This pilot project was installed on private industrial property in the City of Orange. The BESS is connected directly to a kv distribution circuit and supports the circuit during periods of high demand by discharging energy from the BESS. The BESS operates autonomously by monitoring the dynamic conditions on the kv circuit. Typically, the battery charges during off-peak periods. DESI has two operating modes: real power (in watts) and reactive power (in VARs). SCE will continue to monitor the performance of DESI to refine its operating capabilities. SCE intends to test how DESI can be a dual-use machine; besides providing grid reliability, the system will actually participate in the wholesale market. There will be learnings associated with managing the system between the two uses, with the priority being grid reliability, and in verifying the availability of the system for market participation. DESI, a MW, MWh lithium-ion battery system will test grid operations for reliability purposes. DESI will incorporate advanced controls and lessons learned from DESI. The system will be controlled and monitored, utilizing SCE s upcoming Integrated Grid Project (IGP) The IGP is funded through our Electric Program Investment Charge.

43 0 0 demonstration control system. This will provide a unified control and communication platform for grid operations and distributed energy resources, including energy storage. DESI will be associated with circuits to support SCE s Preferred Resource Pilot (PRP) programs. DESI will pilot the optimization of distributed storage (aggregation of multiple systems) in the PRP deployment area and is planned for installation in 0. The project scope includes three systems, each rated at 0 kw / 0 kwh. The project will develop the controls and integration of utility controlled energy storage systems (utility or third party owned) and help identify additional distribution circuit benefits. Those benefits include potentially extending equipment life and enhancing DER integration; and phase balancing and voltage optimization. To continue to support market transformation, and help safely and reliably integrate energy storage on the grid, SCE will expand the pilot program from the initial three pilots previously approved to an additional ten pilots. Whereas the previous pilots focused on how to integrate energy storage onto the grid, the ten new pilots will focus on extracting value from energy storage projects and sharing the lessons learned. c) Need for Project Including Risk Avoided The Commission s Energy Storage Procurement Framework and Design Program Decision set a goal to transform the energy storage market to overcome the barriers that are hindering broader adoption of emerging technologies. This energy storage Procurement Framework and Design Program Decision established three guiding principles for the Commission s energy storage procurement policy: ) Optimize the grid, including peak reduction, contribution to reliability needs, or deferment of transmission and distribution upgrade investments; ) Integrate renewable energy; and ) Reduce greenhouse gas emissions by year 00 to 0 percent below 0 levels. 0 The deployment location of the pilots will depend on the identified need of the system, timing, and other criteria. D Id. p.. 0 Id. at pp. -0.

44 0 0 The Commission s decision also established an energy storage mandate for SCE of 0 MW. The systems must be procured by 00 and operational by 0. The pilots we propose will provide needed data and lessons learned to support the Commission s energy storage policy goals, while helping ensure that integrating energy storage does not diminish safety and reliability for our customers or workers. Lessons learned can help inform Commission efforts such as the DRP and the Integrated Distributed Energy Resources proceeding. There are few industry energy storage projects that address distribution reliability. Recognizing the need to help ensure best practices in safety and operating procedures for energy storage, the Commission is convening an Energy Storage Safety Working Group. The group is composed of the California investor-owned utilities, energy storage manufacturers (i.e., NGK Insulators and NEC Energy Solutions), and the Office of Ratepayer Advocates. The Working Group s aim is to help the Commission develop a short list of inspection guidelines for ES systems co-located at utility substations or at generation facilities. () Diversity of Applications SCE intends the DESI Pilot Program expansion to support various capabilities, including but not limited to: enhancing distribution reliability, enhancing transmission substation reliability, integrating DERs, demonstrating dual-use (serving both a grid reliability function and participating in the market), fostering microgrids, and spurring electrification of transportation. The pilots supporting these applications may vary in technology type. Even though current deployments focus on lithium-ion batteries, other storage options and battery chemistries will be explored in the future. Systems will also vary in sizing based on the power and duration needs of the application, and whether or not the BESS will participate in the wholesale market. SCE will assess the benefits of energy storage, and we expect that the benefits will depend on the application. Identification and quantification of benefits for BESS must be tracked and validated, and will contribute to future benefit-cost discussions related to the viability of energy storage as a cost-effective tool as system costs decline. Benefits such as the deferral value of traditional capital upgrades and market participation may be quantifiable, but need to be validated and monetized. The DESI Pilot Program Expansion also aims to help us (on behalf of our customers) Subject to Commission General Order.

45 0 0 understand whether energy storage can provide benefits such as equipment life extension, voltage optimization, distributed energy resources integration enhancement, phase balancing, and reactive power compensation. Further learnings include power quality, or participating in N- contingency scenarios. (a) Distribution Reliability SCE will pilot energy storage systems to test the feasibility of optimizing the grid through contribution to distribution reliability and to evaluate whether energy storage can contribute to grid needs. These pilot projects will use BESS as a tool to assess how energy storage can help mitigate distribution substation planning criteria violations, such as planned loading limit and duct-bank temperature violations. Potential pilot projects include: A pilot project planned for installation in 0, connecting to a circuit in an urban environment, within the preferred resources pilot area. The project will be sited in an SCE right-of-way. We will pilot using energy storage to solve a forecast distribution need triggered by a planning criteria violation of a duct bank temperature limit. The energy storage project could potentially defer the installation of a new duct bank structure. A pilot project planned for installation in 0 to assess whether energy storage can solve a forecast distribution need triggered by a violation of a planned loading limit, as defined in SCE s distribution substation planning criteria. A pilot project planned for installation in 0, to assess how energy storage can potentially defer traditional capital upgrades related to an N- contingency to account for the outage or failure of a single transformer or major component at a distribution substation. (b) Facilitation of Preferred Resources SCE will pilot energy storage systems to integrate renewable energy and will target areas with existing high penetration of DERs. As the penetration of DERs (such as residential PV arrays) increases on the distribution grid, system upgrades will be required to mitigate Outage or failure of a single transformer or major component at a distribution substation. SCE has established Distribution Substation Plan criteria and guidelines, which identify approved design standards to serve forecast electric distribution customer load safely and reliably. These guidelines require staying within established equipment thermal limits during normal hours. The duct bank houses the circuit cables in a substation.

46 0 0 0 the following potential impacts: () circuit overload; () voltage fluctuation; () reverse power flow; () system protection; and () system reconfiguration. SCE will test whether energy storage can mitigate some of these issues by: () charging when the generation on the circuit exceeds the load or the circuit capacity; and () discharging when the load is greater than the generation, or when circuit capacity is available. Energy storage can potentially minimize large generation output variation by smoothing the generation output -- discharging when generation decreases and charging when generation increases. This minimizes voltage fluctuation. In addition, the ability of a BESS to act as a generator or a load can improve a distribution circuit s capacity to support the power needs of customers. Potential pilot projects include: A pilot project planned for installation in 0, connecting to a circuit in an urban environment with high PV penetration resulting from many residential PV installations. The system will determine whether energy storage can help minimize voltage fluctuation, and maintain voltage compliance. The system also enables greater conservation voltage reduction capabilities. A pilot project planned for installation in 0, connecting to a circuit in a desirable PV area, such as the high desert, including mostly large PV installations. The system could increase the dependability of PV systems by supplementing their variable output. A pilot project planned for installation in 0, connecting to a circuit with high PV penetration driven by a mix of small residential system and large installation. The system will be operated to maximize the benefits storage can provide and validate the stacking of various distribution values, such as supporting the circuit voltage, improving the dependability of PV, and minimizing reverse power flow. () Other Applications SCE will seek opportunities to pilot storage where the storage characteristics solve unique operational grid problems. The criteria for these types of projects would include: () leveraging the fast response of storage systems; () increasing grid resiliency for critical and/or remote loads; () supporting microgrid developments that provide resources that benefit a region on the grid; and () supporting projects that enable electrification and carbon reduction objectives. SCE will seek diversity of storage across climate zones and rural/urban mix and load patterns to evaluate 0

47 0 0 operating performance. Pilot projects in this category are still under evaluation, and the number (within the ten pilots aforementioned) and timing are to be determined as the technical requirements and system sizing are defined. (a) Fast Response The charge and discharge characteristics of energy storage and its voltage and reactive power (VAR) control capabilities are unique for distributed resources. The ability of the BESS to charge/discharge quickly may be a foundational component of a resource intensive distribution system. SCE is working with multiple parties (e.g., General Electric, Pacific Northwest National Lab, National Renewable Energy Laboratory, California Institute of Technology) on Network Optimized Distributed Energy Systems (NODES) to investigate real-time adaptive control systems that leverage storage in combination with other distributed resources. SCE plans to integrate these technologies to provide ancillary services at the distribution level. (b) Grid Resiliency Similar to grid reliability, energy storage may also provide a resiliency benefit. To test for grid resiliency, SCE will seek to support customers with critical loads in remote areas where utility controlled storage may provide increased operating characteristics within a remote region. A potential 0 project will address an N- contingency scenario as an alternative to back-up diesel generators, supporting grid reliability and greenhouse gas reductions. A substation normally has three transmission circuits feeding its transformers, if two transmission circuits were lost due to a storm, an energy storage system could supply energy for customers for a limited time while crews repair the damaged equipment. (c) Microgrids Grid side storage may address challenges and opportunities associated with microgrid projects. Modern microgrids are primarily resourced with renewable sources, and therefore meet many of California s energy policy objectives. Enabling and integrating these complex systems onto the distribution grid will require specialized control systems and operating protocols between microgrid customers and SCE grid operators. Storage may play an important role in leveraging these microgrids to integrate and support the distribution grid and provide the individual Proposed in A and approved by the Commission in D The potential loss of two transformers or major components at a distribution substation.

48 0 0 customer needs. Energy storage can provide resource optimization, resource integration for renewable energy, and load management. Two potential pilot projects include: A pilot project planned for installation in 0, supporting a microgrid project connected to the front of the meter serving critical security loads. Examples of these loads could be, but are not limited to, law enforcement agencies, fire departments, etc. The microgrid will help ensure continued operation during an outage event through voluntary islanding. Continued operations of key agencies, such as law enforcement agencies and fire departments will improve public safety during outage events. A pilot project planned for installation in 00, supporting a microgrid project at a military base. This will help ensure continued operation of critical military loads during an outage event, and allow for voluntary islanding to serve national defense interests. (d) Electrification SCE may pilot the transition of a traditionally non-electric load to an electric load, (i.e. electrification). Energy storage may help offset the increased load that occurs when equipment and vehicles are electrified at a site. Energy storage may also help us defer capital upgrades. The potential pilot includes installation of an energy storage system to manage the load of cableconnected trucks used to transport goods. The electrification of trucks supports the reduction of greenhouse gases and will be deployed in collaboration with the local air quality management district. d) Scope and Cost Forecast SCE is projecting the total capital cost of $. million from 0-00, as summarized in Table. To develop its forecast, SCE engaged in a competitive RFP process with multiple battery integration vendors responding to the RFP. Based on pricing and technical information provided in vendor RFP responses, SCE conducted a qualitative and quantitative analysis of vendor capabilities. SCE then selected a vendor that demonstrated recent experience in deploying battery energy Islanding refers to the ability for the microgrid to operate independently of the distribution grid. Also known as catenary. SCE provides additional detail with respect to the cost estimates and deployment of assets in WP SCE-0 Vol., pp. - (Energy Storage Pilot Workpapers).

49 0 0 storage systems for our specified quantity and timeline, capable of operating under SCE parameters, while providing operational support and maintenance services, under best value contracted pricing. These estimates were developed using existing contracts, recent purchases or accounting/engineering estimates associated with acquiring the needed land (or interest in land), performing interconnection and distribution upgrades, and designing, constructing, commissioning, and testing the BESS. 0 The projects typically follow a two-year deployment timeframe. In year one, we acquire the land and complete design activities; we also initiate procurement and construction activities (including interconnection and distribution upgrades). In year two, we complete operational, procurement, construction, commissioning, and testing activities. In 0, SCE intends to acquire land, complete project design, and initiate procurement and construction activities for three projects that will be operational in 0. The cost is estimated at $. million. In 0, SCE plans to complete procurement, construction, commissioning, and testing for the three projects. We also plan in 0 to acquire land, complete project design, and initiate procurement and construction activities for four year-0 projects at a total cost of $. million. In 0, SCE will complete procurement, construction, commissioning, and testing for the four 0 projects. We also plan to acquire land, complete project design, and initiate procurement and construction activities for three year-0 projects at a total cost of $. million. In 0, SCE will complete procurement, construction, commissioning, and testing for the three 0 projects. We also plan to acquire land, complete project design, and initiate procurement and construction activities for two year-00 projects at a total cost of $. million. In 00, SCE will complete procurement, construction, commissioning, and testing for the two 00 projects at a total cost of $. million. C. Technology Integration After we have tested and evaluated emerging technologies at the Advanced Technologies Labs and in the field, and piloted technologies in an integrated grid environment, the technology can be deployed. Two such technologies are ready for further deployment on the grid: Distribution Volt VAR Control (DVVC) Program and the Advanced Outage Detection and Analytics Program. 0 Ibid.

50 . Distribution Volt VAR Control and Capacitor Automation Program a) WBS Indicator of Project and Capital Forecast Table V- Distribution Volt VAR Control Capital Expenditures 0-00 Forecast Portion of WBS Element CET-PD-LG-CV (Nominal $000) Distribution Volt VAR Control Capital Expenditures (Nominal Project No. CET-PD-LG-CV $000) Forecast PCCs Replaced 0, Total Cost $, $, $, $, $,0 $, Table V- Capacitor Automation Program Capital Expenditures Recorded 0-0/Forecast 0-00 Portion of WBS Element CET-PD-LG-CV (Nominal $000) Project No. Capacitor Automation Program Capital Expenditures (Nominal $000) CET-PD-LG-CV PCCs Replaced Total Cost $,0 $, $0 $0 $0 $,

51 Figure V- Distribution Volt VAR Control Forecast 0-00 Portion of WBS Element CET-PD-LG-CV-MTE (CPUC-Jurisdictional Constant 0 and Nominal $000) 0 b) Project Description The Distribution Volt VAR Control (DVVC) Program centralizes control of the field and substation capacitors, to coordinate and optimize voltage and VARs across all circuits fed by a substation. Supervisory-controlled distribution substation capacitors and existing standard automated distribution field capacitors on distribution circuits are leveraged to reduce energy consumption, while maintaining overall customer service voltage requirements. The DVVC is implemented at SCE as a centralized voltage and VAR control scheme through the Distribution Management System (DMS) and the Energy Management System (EMS) that controls the switching of existing capacitors in substations and on distribution circuits. The DVVC was authorized in the 0 GRC, as part of the DMS. The DVVC program has several objectives, including meeting both voltage and VAR requirements when possible, minimizing system Refer to WP SCE-0 Vol., p.. American National Standards Institute (ANSI) C. standard and SCE s Rule tariff. Previously called Advanced Voltage VAR Control (AVCC).

52 0 0 voltage at the measured points within limits, minimizing energy consumption, minimizing capacitor switching, and operating within the local distribution field Programmable Capacitor Controls (PCC) settings. c) Need for Project Including Risk Avoided Distribution voltage and VARs are controlled using automated distribution substation capacitors and automated distribution field capacitors on distribution circuits. Control of these devices is automated, but each device acts autonomously based on conditions at its location. This current configuration helps ensure distribution voltages are boosted, but is less precise and causes higher than necessary energy consumption. Deploying DVVC as a grid integration solution will optimize voltage levels on the distribution system, reducing excess voltage, which results in avoided energy procurement and capacity costs, while not compromising the safety and reliability of service. SCE estimates these avoided energy procurement and capacity costs to provide a % actual savings in energy costs for customers per % reduction in voltage. SCE s DVVC program was developed over many years through SCE s multiple pilot projects, field and laboratory testing at SCE s Advanced Technology Laboratories, and computer modeling and other industry analyses. During the 0s, the Distribution Capacitor Automation Project (DCAP) demonstrated energy savings greater than % on two distribution substations; however, broad implementation of the DCAP program required costly computer processing equipment and we concluded that a less costly software revision needed to be developed for system deployment. The recent ISGD Project, provided a test bed for piloting the DVVC utilizing more modern control systems and programmable capacitor controls (PCC), which did not exist in the 0 s, to validate potential voltage reductions and estimated energy savings associated with these technologies. SCE has demonstrated the voltage reduction, power factor correction, and energy savings of the centralized voltage and VAR optimization by DVVC Program. See below for additional details. See below. For additional details, please refer to WP SCE-0 Vol., pp. - (Capacitor Automation and DVVC Workpapers), and pp. -0 (Final TP&D Report Distribution Automation & DSEEP Support). R. Yinger and M. Irwin, Technical Report Irvine Smart Grid Demonstration, a Regional Smart Grid Demonstration Project, Advanced Technology Organization, Southern California Edison Company, Rosemead, CA, December 0. This document is awaiting final approval by the U.S. Department of Energy.

53 SCE s new DVVC program will replace the existing Capacitor Automation Program, providing a centralized control strategy. The ISGD project demonstrated that this centralized control strategy could result in a % voltage reduction, and a potential energy savings of.%. d) Scope and Cost Forecast Figure V- Capacitor Automation Program Recorded 0-0/Forecast 0-00 WBS Element CET-PD-LG-CV-MTW 0 (CPUC-Jurisdictional Constant 0 and Nominal $000) SCE s Capacitor Automation program will continue to automate existing manual capacitor controls and upgrade obsolete, first-generation automation equipment until it is fully transitioned into the DVVC program. This transition will require additional engineering, design planning and field crew time for initial visits to implement the DVVC. In 0, the DVVC program will serve as E. Kamiab et al., Distribution Volt/VAR Control to Optimize Customer Voltage Profiles at Southern California Edison: Irvine Smart Grid Demonstration, EPRI, 0000, Palo Alto, CA. SCE provides additional detail with respect to the cost estimates and deployment of assets in WP SCE-0 Vol., pp. - (Capacitor Automation and DVVC Workpapers). 0 Refer to WP SCE-0 Vol., p..

54 0 0 the primary capital and O&M funding mechanism for capacitor automation and PCC replacements. Capacitor controls are used to remotely operate switched capacitor banks installed on the distribution system to provide voltage and reactive power (VAR) support. Without capacitor banks, the voltage supplied to SCE customers would fluctuate to levels that can damage customers equipment or appliances, and present safety hazards. In addition, as DERs proliferate, large DER installations can increase voltage volatility on primary circuitry. To address these concerns, the circuit and substation voltage profiles must be continuously monitored and managed as a system rather than at independent locations through DVVC. This helps sustain VAR efficiency and maintain voltage limits across all circuits. During 0-00, we expect to see a rise in the volume of capacitor control replacements to support the implementation of DVVC throughout various areas of the SCE distribution system. There are approximately,0 capacitor banks in SCE s distribution system. Of these,0 banks, approximately 0,0 banks have radio-equipped PCCs installed. The plan for the DVVC program and the transitioning Capacitor Automation Program is to replace failed PCCs and PCCs nearing the end of their lifecycle. SCE expects to replace PCCs in 0, PCCs in 0, PCCs in 0, PCCs in 0, and PCCs in 00 at an average cost of $,0 ($0) each. In 0, DVVC will be deployed within selected areas of SCE s service territory beyond pilot or research projects. The deployment of DVVC is planned to span three years (0-0) at highly loaded distribution substations within the Los Angeles basin where a large potential for energy savings exists. This implementation is planned to occur at approximately distribution substations. SCE is looking to deploy DVVC at substations with the following traits: For DVVC O&M expenses, such as updating site-specific substation operations documents (Substation Standard Instructions) and PCC inspections, please refer to SCE-0, Vol. 0, Grid Modernization. SCE s 0 General Rate Case, Information Technology and Business Integration (IT&BI) Vol., Capitalized Software. Volt-ampere reactive power (VAR) is the unit used to measure reactive power in alternating current electric systems. Because alternating current systems have varying voltage, these systems must vary the current with the voltage to maintain stability. VARs measure the lead or lag between synchronization of voltage and current. Average cost was derived using constant dollars for the 0 recorded unit cost and nominal dollars for future years; WP SCE-0 Vol., pp. - (Capacitor Automation and DVVC Workpapers).

55 0 No active voltage regulation devices (e.g., load tap changers, line voltage regulators, and field voltage regulators), other than capacitors, because these devices do not interact with DVVC; Highly loaded; Feeder circuits which are at or near loading limits; Forecast to have substantial distributed generation penetration; Possessing the most modern substation automation capabilities; Serve temperature-sensitive loads; Areas that have radio network capacity; and/or Having the highest level of compatible PCCs.. Advanced Outage Detection and Analytics Program a) Capital Forecast Table V-0 Advanced Outage Detection and Analytics 0-00 Forecast (Nominal $000) Capital Expenditures (Nominal $000) Project No CIT-00-DM-DM- 000 ( Outage Management Enhancements) $0 $0 $, $, $, $,0 Capital Expenditures (Nominal $000) Project No CIT-00-DM-DM- 000 (Meter Firmware Enhancements) $0 $0 $, $, $ $, Capital Expenditures (Nominal $000) Project No CIT-00-DM-DM- 000 (Bellwether Management) $0 $0 $00 $,000 $,00 $,000

56 Figure V- Advanced Outage Detection & Analytics Recorded 0-0/Forecast 0-00 WBS Element CIT-OO-DM-DM (CPUC-Jurisdictional Constant 0 and Nominal $000) b) Project Description The Advanced Outage Detection and Analytics program aims to enhance the capabilities of SCE s infrastructure, and utilize the collective data to improve public safety, outage detection, outage notification, response, and work practices. SCE has deployed approximately five million smart meters, with software, firmware, and back-office systems. SCE has identified an opportunity for improvement to the current smart meter system and its operation during power outages. SCE will make improvements in three areas: Outage Management System Capabilities, Firmware enhancements, and identification and maintenance of critical, or bellwether locations. Please see the diagram below. Refer to WP SCE-0 Vol., pp. -. Firmware is a software or set of instructions programmed on a hardware device. 0

57 Diagram V- Advanced Outage Detection & Analytics Program 0 These enhancements will better identify the size of the outage along with improve the sped to which we notify the customers. Additionally, these enhancements will allow SCE to detect a single phase fault or an energized wire down. These fault conditions potentially represent a serious public safety and fire hazard. System operators would also benefit from knowledge of faults and wire down situations. Outage management capabilities will be improved to allow for single-line fault detection, quick customer notification, and analytics. The current Outage Management System Gateway is a back-office system which receives power outage notifications and power restoration notifications from the smart meters in the field. It then processes those notifications and translates them into a format the Outage Management System can accept and understand. Enhancements performed will allow SCE to process more and/or different information. The enhancements will utilize outage data and field device data to better inform outage decision-making. The enhancement should also leverage all internal and external data and filter the information to identify the outage footprint. SCE can then dispatch a truck more quickly to fix an issue in the field. The desired enhancement will analyze the patterns and relationships of data through analysis and identify affected outage customers, detect the point of failure on our distribution system, and predict potential downstream outages.