Phillip W. Powell NCSL 2010 Legislative Summit

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1 Smart rid Deployment: Why Is This So Difficult? Phillip W. Powell NCSL 2010 Legislative Summit July 25, 2010

2 The Emergence of the Smart rid Opportunity Change in Customer Expectations/ enerational Views Rise of Energy Prices & Energy Independence Penetration of & Distributed eneration overnment as Market Maker Smart rid Development of Technical Standards Non Utility Market Entrants Information and Energy Technology Convergence Investment Environment 2

3 Today s Utility rid Regional Transmission Organization (RTO) eneration Transmission Substation Distribution Customer Loads Automated only from the central generation to the substation Distribution automation (automatic load restoration) and outage response system Limited data with one way customer communication 3

4 Tomorrow s Enabled Home Regulated Utility Customer Web Portal Energy Management Distributed Intelligence PCT Substation Automation Distributed Renewable eneration Battery Storage Voltage g Conservation Advanced Transformer & Feeder Monitoring Plug in Vehicle Smart Appliances Meter Automated Switchgear Distributed Renewable eneration Advanced Two-Way Two Way Communications Infrastructure 4

5 Tomorrow s Utility Integrated Smart Microgrid Dominion Substation E rid Database Regional Transmission Operator (RTO) Electrical IS Based Control System & Regional Operations Center L B B B B B Billingg Back Office Customer Bills B Dist Storage 5

6 Smart rid Development Map U.S. Smart rid Build Out Opportunity $165B (EPRI Report June 2004) Technologies Capabilities Electrical IS Customer Value Network Management Intelligent Applications Intelligent Agents Distributed Control Customer Portals Distributed en/storage PHEV Charge Control* Load Management Intelligent Appliances Substation Automation Preventative/Self Healing Demand Response Distribution Automation Smart rid Smart Sensors Customer Information System Asset Management Two Way Communication Voltage Conservation Outage Detection and Restoration One Way Communication Automated Billing Distribution Automation (LS) Outage Management Exi sting rid Smart rid Development Utility Market Space Customer Market Space** 6

7 Smart rid Application: Voltage Conservation Precision Voltage Control Application enabled by Smart rid Technology Uses customer voltage feedback from smart meters () Controls voltage to a more precise level Results in 4% reduction in off peak kwhs Improved Delivery of Electricity SCC Requ irem ents ts Volt Pre- Range (Higher Voltages, Increased Losses) Post- Range (Tighter Voltage Range, Lower Losses) :00am 6:00am 12:00pm 6:00pm 12:00am 7

8 Dominion Voltage Conservation Business Case Requires No Change in Customer Behavior Trabue test results confirm full deployment savings of 2.34 million MWH per year or 2.79% of the total system load Based on Trabue tests, system level energy savings to customers from Voltage Conservation is projected at $1.7 billion over 15 years $1,682B in avoided purchase power costs Total Cost of installation $600M 8

9 Smart rids and Microgrids Telecommunications eeco cato How will Technology Move? Satellite Phone Cell Phone Cell Phone Cell Phone with Texting with Internet Energy Meters In Home In Home Energy Non Realtime Energy Control Weather Monitor Network with ihreal Time lti Energy Control fully integrated Network & Security with internet applications 9

10 Regulated Utility with Smart rid 10

11 Conclusion Smart rid Deployment: Why Is This So Difficult? Phillip W. Powell Director Conservation and Load Management Dominion Alternative Energy Solutions 120 Tredegar Street Richmond, Virginia Tel (804)

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