Application of San Diego Gas & ElectricCompany (U902M) for authority to update its gasand electric revenue requirement and...
CAPITAL PROJECT WORKPAPER                                                                                       Page 2 of ...
CAPITAL PROJECT WORKPAPER                                                                                     Page 3 of 27...
CAPITAL PROJECT WORKPAPER                                                                                      Page 4 of 2...
CAPITAL PROJECT WORKPAPER                                                                                     Page 5 of 27...
CAPITAL PROJECT WORKPAPER                                                                                     Page 6 of 27...
CAPITAL PROJECT WORKPAPER                                                                                      Page 7 of 2...
CAPITAL PROJECT WORKPAPER                                                                                    Page 16 of 27...
CAPITAL PROJECT WORKPAPER                                                                                   Page 17 of 27P...
CAPITAL PROJECT WORKPAPER                                                                                     Page 18 of 2...
CAPITAL PROJECT WORKPAPER                                                                                  Page 19 of 27PR...
CAPITAL PROJECT WORKPAPER                                                                                 Page 27 of 27PRO...
Application of San Diego Gas & ElectricCompany (U902M) for authority to update its gasand electric revenue requirement and...
TABLE OF CONTENTSI.          INTRODUCTION....................................................................................
1                                PREPARED DIRECT TESTIMONY OF 2                                   THOMAS BIALEK, Ph.D., P....
1   A list of the Smart Grid projects by categories and testimony sponsors is shown below: 2   RENEWABLE GROWTH 3    Energ...
1   SMART GRID DEVELOPMENT 2      Integrated Test Facility           Capital         Thomas Bialek, Exhibit SDG&E-11 3    ...
1           C.       Challenges Facing Operations 2                    As described in the testimony of Mr. Lee Krevat, Ex...
1                    SDG&E’s current portfolio of T&D Smart Grid projects focus on four specific areas: 2           renewa...
1                             a.      Distributed Photovoltaic Growth 2                                     At year end 20...
12         Figure TOB-1 – PV Penetration YE 2009 as a Percentage of Circuit Load on April 1, 2009, 13   pm456    SDGE Doc ...
12                Figure TOB-2 – Actual Historical PV Installations and CEC PV Forecast    SDGE Doc #249440               ...
12      Figure TOB-3 – Impact of Increasing PV Penetration versus year with CEC Forecast Installations34           SDG&E h...
12                 Figure TOB-4 – PV System Output Variability Impact on Primary Voltage34          One component of a sol...
1   value streams in order to provide a least-cost solution. The value streams for energy storage are as 2   follows: 3   ...
1 2           The summary results of the SNL study are shown below. 3           “Figure 17 shows the present worth of bene...
1            well as the large loads that these vehicles will impose on the system as a result of the rapid 2            d...
1              load is comparable to an air conditioner load which now suddenly is placed onto the grid. 2              SD...
1 2                    As SDG&E works to further reduce the risk of fires and strive to improve its ability to 3          ...
1          out by Mr. Lee Krevat Exhibit SDG&E-10, for SDG&E to test the function of new consumer 2          focused techn...
1   II.    NONSHARED SERVICES 2          A.      Introduction 3                  1.     Smart Grid Team 4                 ...
1                 workshops and commented on Commission questions. The DOE released its funding 2                 opportun...
1          projects are particularly synergistic as the projects can be designed with a goal of providing 2          more ...
1   SMART GRID DEVELOPMENT 2      Integrated Test Facility 3 4      CAPITAL SUMMARY REQUEST 5 6 7                         ...
1                 system output and low circuit loads and 2) substation energy storage of utility scale, size 2           ...
1                 ground clearances and weather conditions to calculate the amount of current that can be 2               ...
1                 PV systems, indentify changes in PV output and enable the dispatch of energy storage 2                 d...
1                       4.      Renewable Growth: Capacitor SCADA (Budget Codes: 10261) 2                       A cost for...
1                        •       SCADA controls provide monitoring of all power system parameters 2                       ...
1                         As the penetration of distributed renewables increases on the distribution system, 2            ...
1                3 years (2010-2012) are included in associated capital projects of Mr. Alan Marcher as 2                m...
1                          One transformer monitoring device will be installed on each distribution transformer 2         ...
1                     commercially or economically desirable, but needed to serve the broader and growing PEV 2           ...
SDG&E's Energy Storage and EV Proposed Rate Case
SDG&E's Energy Storage and EV Proposed Rate Case
SDG&E's Energy Storage and EV Proposed Rate Case
SDG&E's Energy Storage and EV Proposed Rate Case
SDG&E's Energy Storage and EV Proposed Rate Case
SDG&E's Energy Storage and EV Proposed Rate Case
SDG&E's Energy Storage and EV Proposed Rate Case
SDG&E's Energy Storage and EV Proposed Rate Case
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SDG&E's Energy Storage and EV Proposed Rate Case

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SDG&E has submitted one the of most progressive and well funded energy storage programs in their 2012 General Rate Case to the CPUC. Also included is their electric vehicle program plans.

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SDG&E's Energy Storage and EV Proposed Rate Case

  1. 1. Application of San Diego Gas & ElectricCompany (U902M) for authority to update its gasand electric revenue requirement and base rateseffective on January 1, 2012.Application No. 10-12-___Exhibit No.: (SDG&E-11-CWP) CAPITAL WORKPAPERS TO PREPARED DIRECT TESTIMONY OF THOMAS O. BIALEK, Ph.D., P.E. ON BEHALF OF SAN DIEGO GAS & ELECTRIC COMPANY BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA DECEMBER 2010 TOB-CWP-1
  2. 2. CAPITAL PROJECT WORKPAPER Page 2 of 27PROJECT TITLE SBUDGET NO.Smart Grid Portfolio 10261WITNESS IN SERVICE DATELee Krevat/Tom Bialek various PROJECT COST PRIOR REMAINING ($000 in 2009$) YEARS 2009 2010 2011 2012 YEARS TOTALDIRECT LABOR 0 0 0 9696 15093 0 24789DIRECT NONLABOR 0 0 0 26872 42176 0 69048TOTAL DIRECT CAPITAL 0 0 0 36568 57269 0 93837COLLECTIBLENET CAPITAL 0 0 0 36568 57269 0 93837FTE 0 0 0 129.3 201.2 0 330.5BUSINESS PURPOSEThis project portfolio incorporates smart grid technologies into the electric system infrastructurewith a goal of maintaining and/or improving system performance and operational flexibility andreliability. As the penetration levels of renewables and electric vehicles increase relative to thelocal load on the system, they are expected to impact system operations and reliability and thisportfolio will provide implementation of effective measures to mitigate these impacts. Relativeto infrastructure expansion, projects that involve building completely new large scale elements ofthe distribution network such as new substations and new circuits shall be designed with aperspective that strives to incorporate smart grid concepts and equipment where applicable.This project portfolio also integrates with system improvement work being done to reduce thefire threat in the overhead electric system located in the very high/extreme fire threat zone as thishardening work provides a unique opportunity to incorporate smart grid elements to achieve themost overall effective and superior solution. Smart grid and the fire hardening rebuildingprojects are particularly synergistic as the projects can be designed with a goal of providing moreoperational flexibility, improved reliability and at the same time reduce fire risk. Smart gridsensor technology, advanced system monitoring and control features can be integrated into the TOB-CWP-2
  3. 3. CAPITAL PROJECT WORKPAPER Page 3 of 27PROJECT TITLE SBUDGET NO.Smart Grid Portfolio 10261WITNESS IN SERVICE DATELee Krevat/Tom Bialek variousoperation of the system which is especially valuable during storms and extreme fire risk weatherevents. In addition to maintaining and/or improving reliability, the circuit hardening work withsmart grid technologies should facilitate integration of distributed energy resources such as solarand wind, as well as energy storage for back up of important community infrastructure such ascell phone networks, communications devices and small water pumps used to supply drinkingwater and fill small storage tanks that otherwise may lose power during extreme conditions. Thisproject portfolio should provide the ability to incorporate technologies that can keep morecustomers and critical infrastructure safely in service during extreme fire risk weather events aswell as during storm periods and times when the electric system is stressed due to high operatingloads or operational emergencies. Specific categories of technologies to be provided by thisproject are listed below.PROJECT DESCRIPTION AND JUSTIFICATIONThe description and justification for each of the Smart Grid technologies included in this capitalproject are given below:RENEWABLE GROWTHƒEnergy Storage (ES) - A cost forecast is provided for two types of energy storage systems to assist in addressing intermittency issues created by the variable output of renewable energy resources. One solution will place distributed energy storage systems on circuits with high penetration of customer photovoltaic systems. Additionally, energy storage systems will be strategically located in substations to mitigate the impact of multiple circuits with PV as the second budget item.ƒDynamic Line Ratings – A cost forecast is provided for implementation of dynamic ratings for distribution circuits. The implementation of dynamic line ratings has the potential for increasing circuit capacity and accommodating new renewable generation.ƒPhasor Measurement Units – A cost forecast is provided for implementation of phasor measurement units on the electric distribution system. Installation of phasor measurement units TOB-CWP-3
  4. 4. CAPITAL PROJECT WORKPAPER Page 4 of 27PROJECT TITLE SBUDGET NO.Smart Grid Portfolio 10261WITNESS IN SERVICE DATELee Krevat/Tom Bialek various on the electric distribution system are expected improve reliability by employing high speed, time synchronized measurement devices. These devices will be utilized in conjunction with energy storage devices to create a closed loop control system to mitigate the impact of intermittent renewables.ƒCapacitor SCADA – A cost forecast is provided to implement SCADA control of all capacitors on SDG&E’s distribution system and is distinct from the SCADA expansion for switches discussed below. Benefits of SCADA for capacitors should include: better voltage and VAr control, reduced maintenance, and better system diagnostics. When coupled with energy storage, dynamic line ratings and phasor measurements new control schemes can be implemented which will mitigate the impact of PV system output fluctuations on system voltage.ƒSCADA Expansion – A cost forecast is provided for expansion of SCADA to expand remote operability and automated operation of distribution SCADA capable switches. This will continue SDG&E’s goal of providing faster isolation of faulted electric distribution circuits and branches, resulting in faster load restoration and isolation of system disturbances.ELECTRIC VEHICLE GROWTHƒSmart Transformers – A cost forecast is provided for the installation of sensors and technology on distribution transformers so that they can monitor and report loading, and the state of the transformers. This project has the potential to allow increased transformer capacity utilization and accommodate future loads such as electric vehicle charging.ƒPublic Access Charging Facilities – A cost forecast is provided for the installation of utility owned public charging facilities for electric vehicles. SDG&E will install and own the charging facilities in under-served areas in order to broaden the coverage of public charging stations within its service territory. This project will also help to develop the services offered by 3rd parties to support vehicle charging facilities. TOB-CWP-4
  5. 5. CAPITAL PROJECT WORKPAPER Page 5 of 27PROJECT TITLE SBUDGET NO.Smart Grid Portfolio 10261WITNESS IN SERVICE DATELee Krevat/Tom Bialek variousRELIABILITYƒWireless Faulted Circuit Indicators - A cost forecast is provided for implementation of wireless faulted circuit indicators. This system is expected to provide rapid identification and location of faulted distribution circuits resulting in reduced outage and repair times.ƒPhase Identification – A cost forecast is provided for accurate identification of phasing for implementation in the new distribution operating system. This project should enable improved worker safety, more accurate fusing, improved system planning, and reduced system losses.ƒCondition Based Maintenance Expansion – A cost forecast is provided for expansion of CBM to include distribution substation transformers at 4 kV substations. This project should reduce the risk of catastrophic failures and improve customer satisfaction.SMART GRID DEVELOPMENTIntegrated Test Facility – A cost forecast is provided to construct facility upgrades andpurchase and install equipment to create an integrated test facility. This will allow testing of theintegration of multiple complex hardware and software systems comprising smart gridtechnologies. TOB-CWP-5
  6. 6. CAPITAL PROJECT WORKPAPER Page 6 of 27PROJECT TITLE SBUDGET NO.Smart Grid Portfolio 10261WITNESS IN SERVICE DATELee Krevat/Tom Bialek variousRENEWABLE GROWTH: ENERGY STORAGEA cost forecast is provided for two types of energy storage systems to assist in addressingintermittency issues created by the variable output of renewable energy resources. One solution willplace distributed energy storage systems on circuits with high penetration of customer photovoltaicsystems. Additionally, energy storage systems will be strategically located in substations to mitigatethe impact of multiple circuits with PV as the second budget item.Energy storage systems will be used to demonstrate the ability to enhance the value of energyfrom renewable distributed generation in at least two fundamental ways: minimize theintermittency problem of renewables by installing storage and if appropriate and possible, usestorage so that electric energy generated during times of lowest system need can be “time-shifted” and used during time of greatest need to the electric system.As the penetration of distributed energy resources, DER, continues to increase, the need fordistributed storage will also increase in order to mitigate intermittency problems at the local 12kV feeder level. This project will install energy storage in two forms: 1) distributed storage inthe form of community energy storage, CES, devices in those circuits where the penetration ofdistributed PV is 20% or more of the circuit load at times of high photovoltaic system output andlow circuit loads, and 2) substation energy storage of utility scale, size anticipated to be 1 MW orgreater, which will be installed to mitigate the effects of utility scale (up to 2 MW) PV projectsthat will be installed in various locations.Storage devices will be installed at substations with identified large PV additions (Creelman,Pala, Valley Center, Lilac) and substations with high forecasted PV growth (Border, Kyocera,Middletown, Poway). Unit-cost estimates for substation Storage are based on price quotationobtained from Bulk Storage providers in September, 2009. TOB-CWP-6
  7. 7. CAPITAL PROJECT WORKPAPER Page 7 of 27PROJECT TITLE SBUDGET NO.Smart Grid Portfolio 10261WITNESS IN SERVICE DATELee Krevat/Tom Bialek variousEnergy Storage, installed in conjunction with the appropriate sensors, control andcommunication systems should provide a solution for the mitigation of intermittency via themanagement and discharge of stored energy in a controlled and coordinated way.Based on the historical and forecasted penetration of distributed PV in the SDG&E serviceterritory, CES devices, which are small, 50kW batteries, will be installed on 11 circuits in 2011,and on 14 more circuits in 2012. In addition to the CES devices, substation energy storageamounting to 4 MW will be installed in 2011 and another 4 MW will be installed in 2012.A prioritized list of circuits that are good candidates for distributed storage, based on PV growthprojections, has been developed. CES unit-cost estimates were obtained from the EPRI StorageSystem Cost Workbook, published in March, 2010.Cash Flow:($000 in 2009$)Year: 2010 2011 2012 TotalDirect Labor: 0 6281 7427 13708Direct Non-labor: 0 18912 22363 41275Total Capital: 0 25193 29790 54983 TOB-CWP-7
  8. 8. CAPITAL PROJECT WORKPAPER Page 16 of 27PROJECT TITLE SBUDGET NO.Smart Grid Portfolio 10261WITNESS IN SERVICE DATELee Krevat/Tom Bialek variousELECTRIC VEHICLE GROWTH: SMART TRANSFORMERSA cost forecast is provided for the installation of sensors and technology on distribution transformersso that they can monitor and report loading, and the state of the transformers. This project has thepotential to allow increased transformer capacity utilization and accommodate future loads such aselectric vehicle charging.Distribution line transformers can be converted into smart devices by installing monitoringequipment on the secondary bushings. These monitors will provide information to engineers andoperators about the state of the grid including distributed resources and loads at the location ofthe transformers. This data will be especially valuable for monitoring the load and condition oftransformers feeding plug-in electric vehicles. It will also provide information about the stateand condition of the transformer. Transformer monitors will facilitate dynamic ratings for thetransformers, the ability to verify energy consumed or generated by new distributed resources orloads for potential management applications, and the ability to assess detailed transformerconditions in order to proactively troubleshoot customer or secondary voltage problems.This project will install transformer monitoring devices on all transformers serving customerswith plug-in electric vehicles. Sensing devices attached to transformers will be used to monitorreal-time loading and establish accurate load profiles. This information will be available tosystem operators to alert them to possible overloads, imbalances, voltage excursions or otheroperational issues. Additionally, engineers will use this information to revise transformerloading guidelines which may lead to optimizing the number of customers that may be servedfrom an individual transformer and reducing transformer loading problems.One transformer monitoring device will be installed on every distribution transformer that servesa customer with a PEV and associated charge stations. The number of PEV charge stations isanticipated to be: TOB-CWP-16
  9. 9. CAPITAL PROJECT WORKPAPER Page 17 of 27PROJECT TITLE SBUDGET NO.Smart Grid Portfolio 10261WITNESS IN SERVICE DATELee Krevat/Tom Bialek variousYear: 2010 2011 2012 TotalPEV Charge Stations: 600 2150 700 3450This estimated number of charge stations is based on the expected sales of battery electricvehicle and plug-in hybrid electric vehicle sales in the San Diego area. This estimate is basedupon a DOE sponsored program with partnership by ECOtality and Nissan to deploy up to 5,000electric vehicles and charging infrastructure in San Diego and four other U.S. cities.This project will begin in 2011, therefore the number of transformer monitors installed in 2011will match the number of charge stations installed in 2010 and 2011. The cost estimate for thisproject is derived from an estimated average cost of $744 per transformer monitor installed on2750 transformers in 2011 and on 700 transformers in 2012. The average cost estimate pertransformer was based on information provided by a manufacturer of transformer monitoringequipment that could be used for this project.Cash Flow:($000 in 2009$)Year: 2010 2011 2012 TotalDirect Labor: 0 680 173 853Direct Non-labor: 0 1367 348 1715Total Capital: 0 2047 521 2568 TOB-CWP-17
  10. 10. CAPITAL PROJECT WORKPAPER Page 18 of 27PROJECT TITLE SBUDGET NO.Smart Grid Portfolio 10261WITNESS IN SERVICE DATELee Krevat/Tom Bialek variousELECTRIC VEHICLE GROWTH: PUBLIC ACCESS CHARGING FACILITIESA cost forecast is provided for the installation of utility-owned, public access charging facilitiesfor electric vehicles. SDG&E will install and own the charging facilities in under-served areas inorder to broaden the coverage of public charging opportunities within its service territory. Thiseffort will allow SDG&E to continue the momentum of the stakeholder charging facility sitingand installation process established by ECOtality as part of their government funded EV Projectbetween 2010 and mid-2011. As planned, this project will increase the number of chargingfacility services offered by 3rd parties, specifically to provide PEV charging facilities in locationsthat are not necessarily commercially or economically desirable, but needed to serve the broaderand growing PEV charging needs of the public.SDG&E will work with the CPUC to develop broad criteria for evaluating the installation of“public access charging facilities” with the objective to ensure a network of public chargingfacilities is developed in the public interest over time that would provide sufficient support forthe adoption and use of PEVsThe number of 240V Level 2 charges installed will be approximately 1% of the cumulative plug-in hybrid electric vehicles, PHEVs, anticipated in the 2012 through 2015 period, and the numberof DC Fast Chargers will be approximately 0.1% of the cumulative PHEV’s in the 2012-2015period (see table below). PEV charging facility users will pay for the use of these chargingfacilities through an applicable PEV tariff that will be developed in accordance with policyestablished in the CPUC’s Alternative Fueled Vehicle Order Instituting Rulemaking.Year: 2010 2011 2012 Total240V Level 2 Charge Stations 0 0 129 129480V DC Fast Charger Stations: 0 0 13 13 TOB-CWP-18
  11. 11. CAPITAL PROJECT WORKPAPER Page 19 of 27PROJECT TITLE SBUDGET NO.Smart Grid Portfolio 10261WITNESS IN SERVICE DATELee Krevat/Tom Bialek variousThe cash flow below reflects the public access charging facilities funding requirements for theentire SDG&E system taking place over a four year period (2012-2015) with the work beginningin 2012. The cash flow below reflects the public access charging facilities funding requirementstaking place over a four year period (2012-2015). This cost estimate is derived from anestimated average cost of approximately $33,000 per 240V charging facility times 129 suchfacilities per year, plus approximately $71,000 per 480V charging facility times 13 such facilitiesper year.Cash Flow:($000 in 2009$)Year: 2010 2011 2012 TotalDirect Labor: 0 0 1503 1503Direct Non-labor: 0 0 3727 3727Total Capital: 0 0 5230 5230 TOB-CWP-19
  12. 12. CAPITAL PROJECT WORKPAPER Page 27 of 27PROJECT TITLE SBUDGET NO.Smart Grid Portfolio 10261WITNESS IN SERVICE DATELee Krevat/Tom Bialek variousCash Flow:($000 in 2009$)Year: 2010 2011 2012 TotalDirect Labor: 0 45 120 165Direct Non-labor: 0 457 1220 1677Total Capital: 0 502 1340 1842SUMMARY CASH FLOWA summary table of the cash flows for all projects in this workpaper is provided below. TOB-CWP-27
  13. 13. Application of San Diego Gas & ElectricCompany (U902M) for authority to update its gasand electric revenue requirement and base rateseffective on January 1, 2012.Application 10-12-____Exhibit No.: (SDG&E-11) PREPARED DIRECT TESTIMONY OF THOMAS BIALEK, Ph.D., P.E. ON BEHALF OF SAN DIEGO GAS & ELECTRIC COMPANY BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA December 2010SDGE Doc #249440
  14. 14. TABLE OF CONTENTSI. INTRODUCTION...................................................................................................................... 1 A. Purpose of Testimony ................................................................................................................ 1 B. Overview of Operations ............................................................................................................. 3 C. Challenges Facing Operations .................................................................................................. 4 C. Reliability .................................................................................................................................. 14 D. Smart Grid Development ........................................................................................................ 15 E. Summary of Request................................................................................................................ 16II. NONSHARED SERVICES ..................................................................................................... 17 A. Introduction .............................................................................................................................. 17 1. Smart Grid Team ............................................................................................................... 17 B. Discussion of O&M Activities ................................................................................................. 17 1. Smart Grid Team Salaries and Benefits .......................................................................... 17III. CAPITAL.................................................................................................................................. 18 A. Introduction .............................................................................................................................. 18 B. Capital Request Detail ............................................................................................................. 20 1. Renewable Growth: Energy Storage (Budget Codes: 10261) ....................................... 20 2. Renewable Growth: Dynamic Line Ratings (Budget Codes: 10261) ........................... 21 3. Renewable Growth: Phasor Measurement Units (PMU) - Synchrophasors (Budget Codes: 10261) ..................................................................................................................... 22 4. Renewable Growth: Capacitor SCADA (Budget Codes: 10261) ................................. 24 5. Renewable Growth: SCADA Expansion (Budget Codes: 10261) ................................. 25 6. Electric Vehicle Growth: Plug-In Electric Vehicles ...................................................... 26 7. Electric Vehicle Growth: Smart Transformers (Budget Codes: 10261) ...................... 27 8. Electric Vehicle Growth: Public Access Charging Facilities (Budget Codes: 10261) 28 9. Reliability: Wireless Fault Indicators (FCI) (Budget Codes: 10261) .......................... 31 10. Reliability: Phase Identification (Budget Codes: 10261) ............................................... 32 11. Reliability: Condition Based Maintenance (CBM) Expansion (Budget Codes: 10261) ....................................................................................................... 33 12. Smart Grid Development: Integrated Test Facility (Budget Codes: 10261) ............... 35IV. CONCLUSION ........................................................................................................................ 35V. WITNESS QUALIFICATIONS ............................................................................................. 37SDGE Doc #249440 TOB-i
  15. 15. 1 PREPARED DIRECT TESTIMONY OF 2 THOMAS BIALEK, Ph.D., P.E. 3 ON BEHALF OF SAN DIEGO GAS & ELECTRIC COMPANY 4 5 6 I. INTRODUCTION 7 8 A. Purpose of Testimony 9 1. New Projects Incremental to Historical Activities10 The purpose of this testimony is to sponsor the Smart Grid capital forecasts for11 San Diego Gas & Electric Company, SDG&E, for the years 2010, 2011 and the test12 year 2012. The Smart Grid portfolio of projects that are presented in this immediate13 general rate case, GRC, application also have a life span that extend beyond the test14 year. Additionally, this GRC funding request is not to be viewed as the entirety of15 Smart Grid projects that SDG&E may request since other projects may be necessary in16 the future as requirements change and as new technologies and solutions become17 available.18 As discussed in the Smart Grid policy testimony of Mr. Lee Krevat, Exhibit19 SDG&E-10, there are many drivers for SDG&E’s Smart Grid activities. Based upon20 these drivers, SDG&E has developed a limited portfolio of projects with the goal of21 applying Smart Grid technologies to effectively integrate intermittent renewable22 generation sources and plug-in electric vehicles, and includes other capabilities23 designed to maintain and/or improve system reliability. The projects included in this24 general rate case include only the distribution component of each project. The25 information technology, IT, capital portions associated with these projects are26 necessary to provide the communication devices, IT infrastructure and applications27 required to derive the functionality envisioned with the individual project. The IT28 components required for the Smart Grid portfolio of projects, while need-justified29 within the scope of this testimony, are presented in the testimony of Mr. Jeff Nichols,30 Exhibit SDG&E-18. What might be described today as the conventional or on-going31 capital and operations and maintenance forecasts are presented in the testimonies of32 Mr. Alan Marcher, Exhibit SDG&E-06 and Mr. Scott Furgerson, Exhibit SDG&E-0533 respectively. SDGE Doc #249440 TOB-1
  16. 16. 1 A list of the Smart Grid projects by categories and testimony sponsors is shown below: 2 RENEWABLE GROWTH 3 Energy Storage (ES) Capital Thomas Bialek, Exhibit SDG&E-11 4 IT Mr. Jeff Nichols, Exhibit SDG&E-18 5 Dynamic Line Ratings Capital Thomas Bialek, Exhibit SDG&E-11 6 IT Mr. Jeff Nichols, Exhibit SDG&E-18 7 Phasor Measurement Units Capital Thomas Bialek, Exhibit SDG&E-11 8 IT Mr. Jeff Nichols, Exhibit SDG&E-18 9 Capacitor SCADA Capital Thomas Bialek, Exhibit SDG&E-1110 IT Mr. Jeff Nichols, Exhibit SDG&E-1811 SCADA expansion Capital Thomas Bialek, Exhibit SDG&E-1112 IT Mr. Jeff Nichols, Exhibit SDG&E-18131415 ELECTRIC VEHICLE GROWTH16 Plug-in Electric Vehicles Capital Mr. Alan Marcher, Exhibit SDG&E-0617 IT Mr. Jeff Nichols, Exhibit SDG&E-1818 Smart Transformers Capital Thomas Bialek, Exhibit SDG&E-1119 IT Mr. Jeff Nichols, Exhibit SDG&E-1820 Public Access Charging Facilities Capital Thomas Bialek, Exhibit SDG&E-1121 IT Mr. Jeff Nichols, Exhibit SDG&E-182223 RELIABILITY24 Wireless Faulted Circuit Indicators Capital Thomas Bialek, Exhibit SDG&E-1125 IT Mr. Jeff Nichols, Exhibit SDG&E-1826 Phase Identification Capital Thomas Bialek, Exhibit SDG&E-1127 IT Mr. Jeff Nichols, Exhibit SDG&E-1828 Condition Based Maintenance29 Expansion Capital Thomas Bialek, Exhibit SDG&E-1130 IT Mr. Jeff Nichols, Exhibit SDG&E-183132 SDGE Doc #249440 TOB-2
  17. 17. 1 SMART GRID DEVELOPMENT 2 Integrated Test Facility Capital Thomas Bialek, Exhibit SDG&E-11 3 IT Mr. Jeff Nichols, Exhibit SDG&E-18 4 5 2. Smart Grid Team 6 This testimony also sponsors the ongoing funding of the cost center for the 7 Smart Grid Team. This small group of individuals: a Director, Chief Engineer, Lead 8 Architect, Policy Manager, Customer Manager and Administrative Associate; are 9 responsible for developing SDG&E’s Smart Grid strategy and policy. The organization10 is also responsible for aligning the strategy and policy across SDG&E.1112 Table TOB -113 Summary of TY2012 Change14 (Thousands of $2009)15 Functional Area: SMART GRID Description 2009 TY2012 Change Testimony Adjusted- Estimated Reference Recorded Total Non-Shared 330 1,003 673 Section II Total Shared Services (Book 0 0 0 Expense) Total O&M 330 1,003 673 Total Capital 0 57,269 57,269 Section III1617 B. Overview of Operations18 Smart Grid is a new activity. A special cost-center function has been created to deal19 just with this topic, and that cost center’s role is to provide steering and strategic guidance20 throughout the organization to coordinate the adoption and implementation of Smart Grid21 related technologies.222324 SDGE Doc #249440 TOB-3
  18. 18. 1 C. Challenges Facing Operations 2 As described in the testimony of Mr. Lee Krevat, Exhibit SDG&E-10, SDG&E is 3 committed to meeting California policy goals of promoting increased levels of renewable 4 energy resources and the deployment of electric vehicles to meet greenhouse gas reduction 5 targets. However, with advancements in environmentally friendly technologies such as solar 6 and wind generation, plug-in electric vehicles, and energy storage, as well as the deployment 7 of new customer empowering Smart Meter technology, the electric system is in the midst of 8 significant change. SDG&E recognizes the need to leverage equally advancing information 9 and communication technologies, ICT, to ensure the continued safety, reliability, security, and10 efficiency of the electric grid as utilization of intermittent energy resources and demand for11 plug-in electric vehicle, PEV, increases.12 In addition to the traditional grid management and customer-facing projects utilities13 have undertaken in the past, environmental policy and legislation encouraging customer14 empowerment over energy management is driving the need to accelerate the integration of15 digital and communications technology with the electric delivery system, creating a smarter16 grid. The public policy objectives of California and the situation faced in San Diego create a17 need to move forward with the implementation of advanced technology in order to meet the18 State’s ambitious energy policy goals.19 The seven characteristics or performance features of a Smart Grid as developed by the20 Department of Energy’s, DOE, Smart Grid Task Force and referenced by the CPUC are1:21 • Anticipating and responding to system disturbances in a22 self-healing manner;23 • Enabling active participation by consumers;24 • Operating resiliently against physical and cyber attack;25 • Accommodating all generation and storage options;26 • Enabling new products, services, and markets;27 • Optimizing asset utilization and operating efficiently; and28 • Providing the power quality for the range of needs in a29 digital economy.30 1 CPUC R.08-12-009, Order Instituting Rulemaking to consider Smart Grid Technologies Pursuant to Federal Legislation and on the Commission’s own Motion to Actively Guide Policy in California’s Development of a Smart Grid System, p 11. SDGE Doc #249440 TOB-4
  19. 19. 1 SDG&E’s current portfolio of T&D Smart Grid projects focus on four specific areas: 2 renewable generation growth, electric vehicle growth, reliability and Smart Grid development. 3 In the first area SDG&E is focused on mitigating the impact of renewable photovoltaic, PV, 4 distributed generation. For the second area, SDG&E is deploying new Smart Grid 5 technologies as well as traditional infrastructure to mitigate reliability issues due to customer 6 adoption of PEVs. The third area focus is to mitigate the reliability impacts of an aging 7 electric infrastructure by implementing advanced sensors and associated systems. For the last 8 area, SDG&E is planning to create an integrated test facility to put various emerging 9 technology solutions together to test for interoperability and provide proof-of-concept10 demonstrations.11 As indicated by Mr. Lee Krevat, Exhibit SDG&E-10, SDG&E needs to mitigate the12 impacts of renewable generation development that is planned and occurring in the San Diego13 region to satisfy California’s 33% Renewable Portfolio Standard, RPS. Additionally, San14 Diegans have installed more total systems and nameplate capacity of distributed photovoltaic15 generation than consumers in any city in the state based on 2009 data2. The arrival of 1,00016 Nissan Leaf all-electric vehicles starting in December of 2010 will also increase the immediate17 need for Smart Grid technologies on the electric grid in San Diego.18 Increased situational awareness enabled by sensors, communications, data, analysis and19 remote control allows the system to be operated with increased reliability and safety. Dynamic20 measurement of system characteristics and improved distribution management also increases21 the capabilities and resiliency of energy delivery. However, as a result, the complexity of grid22 operations is increased significantly.2324 1. San Diego Drivers25 The specific drivers of Smart Grid investments in the San Diego Gas & Electric26 service territory are the growth of distributed photovoltaics, PV, the expected growth of27 plug-in electric vehicles, PEVs and SDG&E’s aging infrastructure.2829 2 “California’s Solar Cities: Leading the Way to a Clean Energy Future”; Environment California Research and Policy Center, Summer 2009; accessed July 15, 2010 at http://www.environmentcalifornia.org/reports/energy/energy-program- reports/californias-solar-cities SDGE Doc #249440 TOB-5
  20. 20. 1 a. Distributed Photovoltaic Growth 2 At year end 2009 distributed PV accounted for approximately 65 MWac 3 of generating capacity on the SDG&E system. As of the same timeframe, 4 SDG&E has ten primary distribution circuits with over 20% of the load served5 by PV at times of low circuit loading as shown in Figure TOB-1.3 Figure TOB-6 2 illustrates both the actual recorded PV installations and the California Energy 7 Commission, CEC, forecast based on past PV growth.4 Applying the CEC 8 forecast to existing installations on circuits produces Figure TOB-3 which 9 shows the circuits with levels of over 20% PV generation at year end 2020.10 This figure shows sixty circuits meet this criteria, which SDG&E believes is an11 appropriate threshold to conduct more detailed studies to determine if the circuit12 can accommodate these levels of PV without impacting grid voltage operating13 limits or creating any operations and maintenance issues.1415 3 While SDG&E’s Rule 21 places an emphasis on percentage nameplate capacity as a function of peak line section rating, for PV systems the maximum output at times of lower system load (no air conditioning) are more critical. 4 CEC CALIFORNIA ENERGY DEMAND 2010-2020 December 2009, CEC-200-2009-012-CMF, ADOPTED FORECAST , Form 1.4, Page 149. SDGE Doc #249440 TOB-6
  21. 21. 12 Figure TOB-1 – PV Penetration YE 2009 as a Percentage of Circuit Load on April 1, 2009, 13 pm456 SDGE Doc #249440 TOB-7
  22. 22. 12 Figure TOB-2 – Actual Historical PV Installations and CEC PV Forecast SDGE Doc #249440 TOB-8
  23. 23. 12 Figure TOB-3 – Impact of Increasing PV Penetration versus year with CEC Forecast Installations34 SDG&E has been able to instrument a circuit with a high PV nameplate capacity at a time of 5 low circuit loading. Figure TOB- 4 shows the impact of a 1 MWac PV system on SDG&E’s primary 6 voltage for one day recorded with this instrumentation. The upper set of curves shows the impact of 7 fog burning off on the output of the PV system and the commensurate changes in primary voltage8 during the day. The lower set of curves is a magnified view, 10 minutes of one particular change in 9 the PV system output data. Operational issues that are noted from these curves include the following:10 high primary voltage coincident with PV system output and an approximately 15% swing in primary11 voltage coincident with PV system output change. These measured and changes in values are outside12 SDG&E’s design tolerance limits. Therefore, from the data and forecast currently available, SDG&E13 believes investment in mitigation of intermittent photovoltaic generation is necessary.1415 SDGE Doc #249440 TOB-9
  24. 24. 12 Figure TOB-4 – PV System Output Variability Impact on Primary Voltage34 One component of a solution to this problem is to incorporate energy storage as a grid device.5 With energy storage, given its cost today, it is necessary to accrue benefits associated with multiple SDGE Doc #249440 TOB-10
  25. 25. 1 value streams in order to provide a least-cost solution. The value streams for energy storage are as 2 follows: 3 • Grid operation to islanded system operation 4 • Smoothing electrical transition 5 • Power quality 6 • Power leveling / regulation on grids with connected variable, renewal energy sources, 7 such as Wind, PV, etc. 8 • Peak load shifting / shaving 9 • As needed10 • Daily11 • Energy storage for off-peak / on-peak energy arbitrage12 • Energy regulation / ancillary services related to CAISO operations13 • T&D capacity deferral1415 SDG&E has utilized a report published by Sandia National Labs as a reference guide for16 energy storage applications which states5:17 "The work documented in this report represents another step in the ongoing investigation of18 innovative and potentially attractive value propositions for electricity storage by the United19 States Department of Energy (DOE) and Sandia National Laboratories (SNL) Energy Storage20 Systems (ESS) Program. This study uses updated cost and performance information for21 modular energy storage (MES) developed for this study to evaluate four prospective value22 propositions for MES. The four potentially attractive value propositions are defined by a23 combination of well known benefits that are associated with electricity generation, delivery,24 and use. The value propositions evaluated are: 1) transportable MES for electric utility25 transmission and distribution (T&D) equipment upgrade deferral and for improving local26 power quality, each in alternating years, 2) improving local power quality only, in all years, 3)27 electric utility T&D deferral in year 1, followed by electricity price arbitrage in following28 years; plus a generation capacity credit in all years, and 4) electric utility end-user cost29 management during times when peak and critical peak pricing prevail." 5  Sandia National Laboratory, SANDIA REPORT SAND2008-0978, Unlimited Release Printed, February 2008, Benefit/Cost Framework for Evaluating Modular Energy Storage, A Study for the DOE Energy Storage Systems Program, Susan M. Schoenung and Jim Eyer.   SDGE Doc #249440 TOB-11
  26. 26. 1 2 The summary results of the SNL study are shown below. 3 “Figure 17 shows the present worth of benefits and costs for lead-acid battery storage used for 4 the four value propositions investigated. Most notably: value proposition 1 (T&D deferral plus 5 PQ), value proposition 2 (PQ/reliability only) and value proposition 3 (high value T&D 6 deferral plus arbitrage and generation capacity credit) show promise as they have a benefit/cost 7 ratio greater than 1. 8   9  1011 Other components of the multi-faceted solution include dynamic line ratings, phasor12 measurement units and supervisory control and data acquisition, SCADA, expansion to enable remote13 control of capacitor banks and other switches on the system.1415 B. Plug-In Electric Vehicle (PEV) Growth16 As also discussed in the testimony of Mr. Lee Krevat, Exhibit SDG&E-10, the impact17 of PEVs on SDG&E’s system is expected to be significant. He discussed the US Department18 of Energy, DOE, and California Energy Commission, CEC, grants awarded to ECOtality6 as 6 ECOtality is a San Francisco based company specializing in the development and commercialization of electric transportation and storage technologies. SDGE Doc #249440 TOB-12
  27. 27. 1 well as the large loads that these vehicles will impose on the system as a result of the rapid 2 deployment of PEVs and residential, commercial and public charging facilities in the SDG&E 3 service territory beginning in 2010. He also mentioned the need to make infrastructure 4 investments to empower customers and to minimize barriers that would be created without 5 immediate action taken to ensure the deployment of adequate charging infrastructure. This 6 position is also supported by the Commission as described in the testimony of Ms. Kathleen 7 Cordova, Exhibit SDG&E-15 (SDG&E’s Electric Clean Transportation Program). In January 8 2010, the Commission recognized the importance of early action to support the electric 9 transportation market in defining the scope for the alternative-fueled vehicles rulemaking and10 stated that it will follow the directive set forth in Senate Bill 626 to evaluate policies to develop11 infrastructure sufficient to overcome any barriers to the widespread deployment and use of12 plug-in hybrid and electric vehicles.713 Figure TOB-5 shows SDG&E’s estimates of PEV sales in its service territory. This14 estimate of PEV sales was based upon several independent analysts’ forecast of light duty15 vehicles PEV penetrations adjusted to be applicable to SDG&E’s service territory and related16 impacts. By 2012 approximately 15,000 PEVs are estimated to be owned by customers in17 SDG&E’s service territory. With an estimated load of 3 kW per vehicle this equates to 45 MW18 of new load, that if not managed properly could have a significant impact on the local19 distribution system and potential generation needs. It should be noted that the Commission20 approved in June of 2010 the use of three experimental PEV time-of-use rates, each with21 varying differences between on-peak and off-peak pricing to explore the degree to which rates22 (and enabling PEV technology) impacts consumer time-of-day charging decisions and23 behavior.824 One of many challenges associated with PEV growth rates will be with customers who25 purchase these vehicles and are located in the older coastal areas of SDG&E’s service territory.26 In most instances these homes are smaller, do not have air conditioning and the number of27 customers connected per transformer is greater than in the inland valleys. A 3 kW charging 7 January 12, 2010 Scoping Memo in R.09-08-009, Commission Rulemaking on alternative-fueled vehicle tariffs, infrastructure and policies to support Californias greenhouse gas emissions reduction goals. 8 http://docs.cpuc.ca.gov/word_pdf/AGENDA_RESOLUTION/119477.pdf Res.E-4334 – The CPUC approved SDG&E’s request to establish three new temporary experimental residential rate schedules for plug-in electric vehicle (PEV) charging to be used coincident with the EV Project (ECOtality’s deployment of home, commercial and public charging facilities in collaboration with Nissan’s deployment of the Leaf PEV in SDG&E’s services territory). This Resolution approves implementation of the experimental rate schedules beginning January 1, 2011. The temporary rates will remain in effect until November 30, 2012 (or until completion of the related pricing pilot research project.) SDGE Doc #249440 TOB-13
  28. 28. 1 load is comparable to an air conditioner load which now suddenly is placed onto the grid. 2 SDG&E is currently involved in an Electric Power Research Institute, EPRI, project9 to further 3 understand the impact of PEVs on the grid. Proactively, SDG&E believes it is imperative to 4 fund three areas of activities: existing facility upgrades, smart transformers and public charging 5 infrastructure in order address the coming PEV consumer demand and to reduce potential 6 market barriers to PEV adoption due to inadequate charging infrastructure. 7   Cumulative and annual PEV sales (2010 to 2020) 8 BEVs and PHEVs (x 1,000) 9 300 Cumulative B EVs10 Cumulative PHEVs 250 2 7.511 Annual PEV s ales 23 6.612 200 2 1.613 1 83 .614 150 16 .5 1 40 .115 12 .01 100 10 6.116 8.4 7 9.317 50 5.6 3 .7 56 .9 58.918 0 .2 2.1 2.2 2 .6 38 .6 38.4 48.7 1 .1 5.2 1 3.1 2 4.1 25.2 30.5 15.619 0 1.3 6.1 7.9 11.4 20.2 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 20202021 Figure TOB-5 – SDG&E’s Estimate of PEV Sales2223 C. Reliability24 As discussed at length in the testimony of Mr. Alan Marcher, Exhibit SDG&E-06,25 SDG&E has an aging infrastructure and a need to continue to improve its fire preparedness.26 Seventy-eight percent of SDG&E’s 4 kV substation transformers have been in-service 50 years27 or more while only thirty seven percent of 12 kV substation transformers have been in-service28 40 years or more. It is not just transformers but basic equipment such as poles, wire and cable.29 Putting this in context, these pieces of equipment have to handle not only existing historical30 loads but now also the intermittent power flows associated with PV systems that have been31 installed and the PEV loads that are poised to make an appearance at the end of 2010. 9 EPRI Project ID No. 065939. SDGE Doc #249440 TOB-14
  29. 29. 1 2 As SDG&E works to further reduce the risk of fires and strive to improve its ability to 3 respond and restore electrical service as quickly as possible, it is leveraging advances in 4 technology and systems. SDG&E believes that by putting the “smarts” in the grid it should be 5 possible to maintain and/or improve reliability in the face of these challenges. Therefore, 6 SDG&E has developed cost forecasts for three Smart Grid projects for incorporation in this 7 general rate case: wireless faulted circuit indicators, phase identification and an expansion of 8 condition based maintenance. 910 D. Smart Grid Development11 As the Commission has noted in its recent Smart Grid OIR decision, D.10-06-047,12 “…that deployment plans should include a discussion of an IOU’s Smart Grid strategy,13 and that the strategy should offer a sense of direction and guidance, rather than setting rigid14 requirements. This is clearly a reasonable approach since there are significant uncertainties15 surrounding future technologies that may be part of a Smart Grid.” 1016 also17 “There is a consensus among those parties providing comments that a18 roadmap can provide useful information concerning technologies and their19 deployment, even though they will remain subject to change.”112021 and finally22 “In addition, there is near universal agreement that it is difficult to provide a reliable cost23 estimate based on future and unknown technologies and infrastructure investments….but the24 Commission does not find that it would be possible to require detailed, projected cost estimates25 for technology that is undergoing dramatic changes in costs and technology today, or has yet to26 be invented.”1227 Given that Smart Grid technologies, solutions and standards are rapidly evolving and it28 is difficult to estimate costs and requirements in the next five years, there is a need, as pointed 10 R.08-12-009, Order Instituting Rulemaking to Consider Smart Grid Technologies Pursuant to Federal Legislation and on the Commission’s own Motion to Actively Guide Policy in California’s Development of a Smart Grid System, D.10-06- 047 (Decision Adopting Requirements For Smart Grid Deployment Plans Pursuant To Senate Bill 17 (Padilla), Chapter 327, Statutes Of 2009)., pg. 47. 11 Ibid, pg. 64. 12 Ibid, pg. 68. SDGE Doc #249440 TOB-15
  30. 30. 1 out by Mr. Lee Krevat Exhibit SDG&E-10, for SDG&E to test the function of new consumer 2 focused technologies on the installed smart meters and associated systems to enable two Smart 3 Grid characteristics. These characteristics are enabling active participation by consumers and 4 new products, services, and markets. Therefore, SDG&E has developed a cost forecast for an 5 integrated Smart Grid test facility to address standard, integration and interoperability 6 challenges for these technologies. 7 8 E. Summary of Request 910 Table TOB - 211 O&M Non-Shared Services12 Testimony Section II13 (Thousands 2009 dollars)14 SMART GRID Categories of Management 2009 Adjusted- TY2012 Change Recorded Estimated A. Smart Grid Electric Distribution 330 1,003 673 Total 330 1,003 67315161718 Table TOB - 319 Capital Expenditures20 (Thousands 2009 dollars)21 SMART GRID Category Description 2009 2010 2011 2012 Recorded Estimated Estimated Estimated 1. Smart Grid Portfolio $0 $0 $36,568 $57,269 Total Capital: $0 $0 $36,568 $57,26922232425262728 SDGE Doc #249440 TOB-16
  31. 31. 1 II. NONSHARED SERVICES 2 A. Introduction 3 1. Smart Grid Team 4 This testimony also sponsors the ongoing funding of the cost center for the 5 Smart Grid Team. This small group of individuals: a Director, Chief Engineer, Lead 6 Architect, Policy Manager, Customer Manager and Administrative Associate; are 7 responsible for developing SDG&E’s Smart Grid strategy and policy. The organization 8 is responsible for aligning the strategy and policy across SDG&E. 910 Table TOB - 411 O&M Non-Shared Services12 (Thousands of 2009 dollars)13 SMART GRID A. Smart Grid Electric Distribution 2009 Adjusted- TY2012 Change Recorded Estimated 1. Smart Grid Electric Distribution 330 1,003 673 Total 330 1,003 673141516 B. Discussion of O&M Activities17 1. Smart Grid Team Salaries and Benefits18 This funding covers the salaries and incidental O&M expenses of the Smart19 Grid Team. This small team was first formed in 2009 as a result of the significant20 activities at both the Federal and State level with regards to Smart Grid. It was21 recognized that with Federal legislation and the DOE driven activity in this area that a22 team was required to specifically focus on this topic; driving SDG&E’s strategy and23 vision in this important area. As a consequence, in June 2009, a Director, Chief24 Engineer, Lead Architect and an Administrative Associate were brought together to25 begin work. In 2010, a Policy Manager and Customer Manager were also brought into26 the team completing the staffing goals.27 The team spent most of 2009 developing a SDG&E strategy and vision and28 subsequently communicating both internally and externally. The Commission’s Smart29 Grid Rulemaking was also underway at this time and the team participated in SDGE Doc #249440 TOB-17
  32. 32. 1 workshops and commented on Commission questions. The DOE released its funding 2 opportunity notice for Smart Grid and the team spent the summer developing proposal 3 for both the investment grant and regional demonstration solicitations. 4 In 2010 the work on the Smart Grid OIR continued with a decision being 5 released regarding the implementation of SB17. Work has also begun to deliver the 6 SDG&E Smart Grid vision and roadmap by the required July 1, 2011 deadline. The 7 team directed SDG&E’s effort in the EPRI-led California utilities Smart Grid 2020 8 Vision activity in response to the CEC solicitation of the same name. An internal 9 stakeholder effort also occurred to align and drive SDG&E’s strategy and policy across10 the organization.11 Future work activities will include the SB17 mandated yearly updates to12 SDG&E’s Smart Grid roadmap, responding to other Commission rulings, other pending13 legislation and driving Smart Grid solutions to system problems to name but a few14 activities.1516 III. CAPITAL17 A. Introduction18 This project portfolio incorporates Smart Grid technologies into the electric system19 infrastructure with a goal of maintaining and/or improving system performance and operational20 flexibility and reliability. As the penetration levels of renewables and electric vehicles increase21 relative to the local load on the system, they are expected to impact system operations and22 reliability and this portfolio will provide implementation of effective measures to mitigate23 these impacts. Relative to infrastructure expansion, projects that involve building completely24 new large scale elements of the distribution system such as new substations and new circuits25 shall be designed with a perspective that strives to incorporate Smart Grid concepts and26 equipment where applicable.27 This project portfolio also integrates with system improvement work being done to28 further reduce the fire threat in the overhead electric system located in the very high/extreme29 fire threat zone. As discussed in the testimony of Mr. Alan Marcher, Exhibit SDG&E-06, this30 system hardening work provides a unique opportunity to incorporate Smart Grid elements to31 achieve the most overall effective and superior solution. Smart Grid and the fire hardening SDGE Doc #249440 TOB-18
  33. 33. 1 projects are particularly synergistic as the projects can be designed with a goal of providing 2 more operational flexibility, improved reliability and at the same time further reduce fire risk.3 Smart Grid sensor technology, advanced system monitoring and control features can be4 integrated into the operation of the system which is especially valuable during storms and5 extreme fire risk weather events. In addition to maintaining and/or improving reliability, the 6 circuit hardening work with Smart Grid technologies should facilitate integration of distributed 7 energy resources such as solar and wind, as well as energy storage for back up of important 8 community infrastructure such as cell phone networks, communications devices and small 9 water pumps used to supply drinking water and fill small storage tanks that otherwise may lose10 power during extreme conditions. This project portfolio should provide the ability to11 incorporate technologies that can keep more customers and critical infrastructure safely in12 service during extreme fire risk weather events as well as during storm periods and times when13 the electric system is stressed due to high operating loads or operational emergencies.14 The Smart Grid portfolio is divided into four principal categories. These are Renewable15 Growth, Electric Vehicle Growth, Reliability and Smart Grid Development. Individual16 projects comprising the portfolio are grouped into these categories:1718 RENEWABLE GROWTH19 Energy Storage (ES)20 Dynamic Line Ratings21 Phasor Measurement Units22 Capacitor SCADA23 SCADA Expansion24 ELECTRIC VEHICLE GROWTH25 Plug-in Electric Vehicles26 These costs are incorporated in the testimony of Mr. Alan Marcher, Exhibit SDG&E-06.27 Smart Transformers28 Public Access Charging Facilities29 RELIABILITY30 Wireless Faulted Circuit Indicators31 Phase Identification32 Condition Based Maintenance (CBM) Expansion SDGE Doc #249440 TOB-19
  34. 34. 1 SMART GRID DEVELOPMENT 2 Integrated Test Facility 3 4 CAPITAL SUMMARY REQUEST 5 6 7 Table TOB - 5 8 Capital Expenditures 9 (Thousands of 2009 dollars)10 2009 2010 2011 2012 Category Description Recorded Estimated Estimated Estimated 1. Smart Grid Portfolio $0 $0 $36,568 $57,269 Total Capital: $0 $0 $36,568 $57,2691112 B. Capital Request Detail13 1. Renewable Growth: Energy Storage (Budget Codes: 10261)14 A cost forecast is provided for two types of energy storage systems to assist in15 addressing intermittency issues created by the variable output of renewable energy16 resources. One solution will place distributed energy storage systems on circuits with high17 penetration of customer photovoltaic systems. Additionally, energy storage systems will be18 strategically located in substations to mitigate the impact of multiple circuits with PV as the19 second budget item.20 Energy storage systems will be used to demonstrate the ability to enhance the value21 of energy from renewable distributed generation in at least two fundamental ways:22 minimize the intermittency problem of renewables by installing storage and if appropriate23 and possible, use storage so that electric energy generated during times of lowest system24 need can be “time-shifted” and used during time of greatest need to the electric system.25 As the penetration of distributed energy resources, DER, continues to increase, the26 need for distributed storage will also increase in order to mitigate intermittency problems at27 the local 12 kV feeder level. This project will install energy storage in two forms: 1)28 distributed storage in the form of community energy storage, CES, devices in those circuits29 where the penetration of PV is 20% or more of the circuit load at times of high photovoltaic SDGE Doc #249440 TOB-20
  35. 35. 1 system output and low circuit loads and 2) substation energy storage of utility scale, size 2 anticipated to be 1 MW or greater, which will be installed to mitigate the effects of utility 3 scale (up to 2 MW) PV projects that will be installed in various locations. 4 Energy Storage, installed in conjunction with the appropriate sensors, control and 5 communication systems should provide a solution for the mitigation of intermittency via the 6 management and discharge of stored energy in a controlled and coordinated way. 7 Based on the historical and forecasted penetration of distributed PV in the SDG&E 8 service territory, CES devices, which are small, 50 kW batteries will be installed on 11 9 circuits in 2011, and on 14 more circuits in 2012. In addition to the CES devices, substation10 energy storage amounting to 4 MW will be installed in 2011 and another 4 MW will be11 installed in 2012.1213 Table TOB - 614 Renewable Growth, Energy Storage Capital Expenditures15 (Thousands of 2009 dollars)16 Description 2009 Adjusted 2010 2011 TY2012 Recorded Estimated Estimated Estimated Category 1 $0 $0 $25,193 $29,7901718 2. Renewable Growth: Dynamic Line Ratings (Budget Codes: 10261)19 A cost forecast is provided for implementation of dynamic ratings for distribution20 circuits. The implementation of dynamic line ratings has the potential for increasing circuit21 capacity and accommodating new renewable generation.22 Dynamic ratings of equipment provide an opportunity to optimize capital23 investments and operate the grid at higher efficiencies. Dynamic line ratings compare the24 weather-adjusted, thermal rating of a conductor against the static design rating. The pre-25 calculated static value for the thermal rating of a conductor is developed to protect the26 conductor from damage due to annealing and from excessive sag during extreme heat.27 This project will install dynamic line rating technologies on ten distribution circuits28 per year. Installations will be made on the most critical distribution circuits which include29 those circuits with significant renewables penetration and energy storage. Sensors on30 overhead distribution lines will be used to monitor the line conductor tension and determine SDGE Doc #249440 TOB-21
  36. 36. 1 ground clearances and weather conditions to calculate the amount of current that can be 2 transmitted in real time. This information is then provided to system operators or engineers 3 for their use in safe, reliable and economic system operation. By monitoring wind speed, 4 conductor tension and solar heating, a real-time line rating that is indicative of current 5 conductor capability can be calculated. An advanced human interface will also be 6 developed to assist system operators with managing the information. 7 SDG&E has 995 distribution circuits, and high loading is anticipated on 1% of 8 circuits that will warrant close monitoring and dynamic line rating. Installing dynamic line 9 rating technology on 10 distribution circuits per year will result in the following cash flow.1011 Table TOB - 712 Renewable Growth, Dynamic Line Ratings Capital Expenditures13 (Thousands of 2009 dollars)14 Description 2009 Adjusted 2010 2011 TY2012 Recorded Estimated Estimated Estimated Category 1 $0 $0 $1,963 $1,9631516 3. Renewable Growth: Phasor Measurement Units (PMU) -17 Synchrophasors (Budget Codes: 10261)18 A cost forecast is provided for implementation of phasor measurement units on the19 electric distribution system. Installation of phasor measurement units on the electric20 distribution system are expected improve reliability by employing high speed, time21 synchronized measurement devices. These devices will be utilized in conjunction with22 energy storage devices to create a closed loop control system to mitigate the impact of23 intermittent renewables. Phasor measurement technologies are a leading example of a new24 generation of advanced grid monitoring technologies that rely on high speed, time-25 synchronized, digital measurements.26 Phasor measurement technologies will help mitigate the intermittency issues27 associated with distributed renewables by employing high-speed, time-synchronized28 measurement devices installed in substations and at key points on the distribution system.29 Using time stamped, digitized waveform measurements, SDG&E can analyze the output of SDGE Doc #249440 TOB-22
  37. 37. 1 PV systems, indentify changes in PV output and enable the dispatch of energy storage 2 devices to counteract the effects of the PV output fluctuation. 3 Phasor measurement technologies are also needed for understanding potential 4 problems with the grid and are therefore a key component of a stable, self-healing grid. As 5 the penetration of renewables increases, there will be increased voltage and phase-angle 6 fluctuations at various points on the system. PMU data can equip system operators with 7 better real-time information about actual operating margins so that they can better 8 understand and manage the risk of operating closer to the operating limits. Specifically, 9 some of the functionality enabled by PMU technologies include:10 • monitoring and visualization for improved control room operations11 • wide-area control and protection12 • power system restoration13 • time-synchronized, waveform measurements.1415 This project calls for the installation of PMU equipment on 11 distribution circuits16 with a high penetration of PV: 4 circuits in 2011 and seven circuits in 2012. The equipment17 will be installed at points on the circuit where there is significant aggregation of PV18 systems. Additionally, a Phasor Data Collector (PDC) will be installed at each substation.19 An assessment tool will be developed to provide the ability to record, archive, analyze and20 display phasor data. The interconnection and link of PMUs into a network will bring time-21 synchronized data to a central location to create a wide-area view of the grid.2223 Table TOB - 824 Renewable Growth, Phasor Measurement Units Capital Expenditures25 (Thousands of 2009 dollars)26 Description 2009 Adjusted 2010 2011 TY2012 Recorded Estimated Estimated Estimated Category 1 $0 $0 $1,475 $2,581272829 SDGE Doc #249440 TOB-23
  38. 38. 1 4. Renewable Growth: Capacitor SCADA (Budget Codes: 10261) 2 A cost forecast is provided to implement SCADA control of all capacitors on 3 SDG&E’s distribution system and is distinct from the SCADA expansion for switches 4 discussed below. Benefits of SCADA for capacitors should include: better voltage and VAr 5 control, reduced maintenance, and better system diagnostics. When coupled with energy 6 storage, dynamic line ratings and phasor measurements new control schemes can be 7 implemented which will mitigate the impact of PV system output fluctuations on system 8 voltage. 9 SDG&E has been using SCADA (Supervisory Control and Data Acquisition)10 controlled devices in various types of equipment for many years. SCADA controlled11 capacitor banks will provide local and remote control, failure prediction and detection,12 reduced operating cost, and should enhance distribution system performance through13 improved voltage and reactive power control. As certain elements of Smart Grid evolve,14 including less predictable DER, the ability to dynamically adjust reactive power flow will15 become more critical. Presently, SDG&E discovers capacitor issues during the annual16 capacitor survey or through customer voltage problems. SCADA controlled capacitors will17 provide SDG&E the ability to be proactive in capacitor maintenance, instead of reactive.18 Furthermore, SCADA control will provide a faster and more economical way to update the19 software and to adjust control settings.20 Installing SCADA on capacitor controllers will yield the following capabilities:21 SCADA controls offer the ability to over-ride automatic controls of the bank to22 adjust voltage or reactive support to the distribution system. Reprogramming capability may23 reduce the need for future field visits by line personnel.24 • SCADA controls can alert utility personnel of capacitor failures and/or25 fuse operations. This will increase capacitor bank reliability, minimize26 downtime, and expedite repair work.27 • SCADA controls may be used to help facilitate the annual Capacitor28 Survey for those sites that are on SCADA.29 • SCADA provides for remote monitoring of the status of the control30 devices for the bank. SDGE Doc #249440 TOB-24
  39. 39. 1 • SCADA controls provide monitoring of all power system parameters 2 (i.e. voltage, current, reactive power, real power, power factor, etc…) 3 associated with the capacitor bank. This provides a key diagnostic tool 4 when power quality concerns arise. This is becoming more critical, as 5 the digital economy demands a higher level of power quality. 6 7 • Improved voltage and reactive power control to mitigate the impact of 8 distributed PV. 910 At this time there are 1,404 capacitors in the SDG&E service territory, 959 are11 overhead capacitors and 445 are underground capacitors. The cash flow below reflects12 adding SCADA to all these capacitors over a seven year period with the majority of work13 taking place over the 2011-2016 period.1415 Table TOB - 916 Renewable Growth, Capacitor SCADA Capital Expenditures17 (Thousands of 2009 dollars)18 Description 2009 Adjusted 2010 2011 TY2012 Recorded Estimated Estimated Estimated Category 1 $0 $0 $2,902 $2,9021920 5. Renewable Growth: SCADA Expansion (Budget Codes: 10261)21 A cost forecast is provided for expansion of SCADA to expand remote operability22 and automated operation of distribution SCADA capable switches. This will continue23 SDG&E’s goal of providing faster isolation of faulted electric distribution circuits and24 branches, resulting in faster load restoration and isolation of system disturbances.25 This project provides funding for the installation, upgrades, and expansion of the26 Supervisory Control and Data Acquisition (SCADA) system at substations and on27 distribution circuits through the addition of automated switches. SDG&E’s radial, open-28 loop distribution circuit design philosophy incorporates 1.5 SCADA switches per circuit:29 one at the midpoint, and one at a strong tie. This design philosophy improves system30 reliability while avoiding a full network design. SDGE Doc #249440 TOB-25
  40. 40. 1 As the penetration of distributed renewables increases on the distribution system, 2 this SCADA expansion will allow SDG&E to re-configure circuits. By automatically re- 3 configuring circuit the amount of PV and load can be balanced to better accommodate areas 4 of high PV penetration. 5 This will be incremental to work being done on existing budgets. In addition, to 6 fully realize the functionality of the line SCADA, the associated feeding substation needs to 7 be on SCADA as well. The scope of work required to achieve the capabilities above will 8 require installation of SCADA at 13 substations serving 76 circuits, and 281 SCADA 9 switches on circuits that lack SCADA line or SCADA tie switches. The cash flow below10 reflects this scope of work being implemented over a five year period from 2012-2016.11 Expenditures are expected to begin in 2012 as shown below.1213 Table TOB - 1014 Renewable Growth, SCADA Expansion Capital Expenditures15 (Thousands of 2009 dollars)16 Description 2009 Adjusted 2010 2011 TY2012 Recorded Estimated Estimated Estimated Category 1 $0 $0 $0 $5,9641718 6. Electric Vehicle Growth: Plug-In Electric Vehicles19 This is project is required to upgrade primary and secondary voltage infrastructure to20 accommodate the rollout of electric vehicles in San Diego County in the 2010, 2011 and21 2012 timeframe. Transformers, secondary and primary conductors associated with22 customers who participate in the Nissan Leaf and Chevrolet Volt rollout will be evaluated23 for adequate capacity. If upgrades are required, they will be covered as part of this project.24 These costs are incorporated in the testimony of Mr. Alan Marcher, Exhibit SDG&E-06.25 Large numbers of PEV’s (both battery electric vehicles and plug-in hybrid electric26 vehicles) are estimated to interconnect to the SDG&E grid over the next 10 years, requiring27 improvements to the electric distribution system. This may also create opportunities in the28 future to use PEVs as distributed energy resources by discharging their batteries into the29 grid during times of system resource needs or economic benefit. The upgrade of services30 and transformers resulting from residential PEV impacts to the grid occurring over the next SDGE Doc #249440 TOB-26
  41. 41. 1 3 years (2010-2012) are included in associated capital projects of Mr. Alan Marcher as 2 mentioned earlier. Therefore the costs being included on this Smart Grid capital project 3 associated with impacts due to PEVs, in post test years, will cover distribution feeder 4 upgrades and infrastructure for larger public charging stations. The cost estimates for this 5 timeframe are based on a projection of 8300 residential charging stations and 328 public 6 charging stations 7 8 7. Electric Vehicle Growth: Smart Transformers (Budget Codes: 10261) 9 A cost forecast is provided for the installation of sensors and technology on10 distribution transformers so that they can monitor and report loading, and the state of the11 transformers. This project has the potential to allow increased transformer capacity12 utilization and accommodate future loads such as plug-in electric vehicles.13 Distribution line transformers can be converted into smart devices by installing14 monitoring equipment on the secondary bushings. These monitors will provide information15 to engineers and operators about the state of the grid including distributed resources and16 loads at the location of the transformers. This data will be especially valuable for17 monitoring the load and condition of transformers feeding plug-in electric vehicles. It will18 also provide information about the state and condition of the transformer. Transformer19 monitors will facilitate dynamic ratings for the transformers, the ability to verify energy20 consumed or generated by new distributed resources or loads for potential management21 applications, and the ability to assess detailed transformer conditions in order to proactively22 troubleshoot customer or secondary voltage problems.23 This project will install transformer monitoring devices on all transformers serving24 customers with plug-in electric vehicles. Sensing devices attached to transformers will be25 used to monitor real-time loading and establish accurate load profiles. This information will26 be available to system operators to alert them to possible overloads, imbalances, voltage27 excursions or other operational issues. Additionally, engineers will use this information to28 revise transformer loading guidelines which may lead to optimizing the number of29 customers that may be served from an individual transformer and reducing transformer30 loading problems. SDGE Doc #249440 TOB-27
  42. 42. 1 One transformer monitoring device will be installed on each distribution transformer 2 that serves a customer with a PEV and associated charge stations. The number of PEV 3 charge stations is anticipated to be: 4 5 Table TOB - 11 6 PEV Charging Stations 7 Year: 2010 2011 2012 Total PEV Charge Stations: 600 2150 700 3450 8 9 This estimated number of charge stations is based on the expected sales of battery10 electric vehicle and plug-in hybrid electric vehicle sales in the San Diego area. This11 estimate is based upon a DOE sponsored program with partnership by ECOtality and Nissan12 to deploy up to 5,000 electric vehicles and charging infrastructure in San Diego and four13 other U.S. cities.1415 Table TOB - 1216 Electric Vehicle Growth, Smart Transformers Capital Expenditures17 (Thousands of 2009 dollars)18 Description 2009 Adjusted 2010 2011 TY2012 Recorded Estimated Estimated Estimated Category 1 $0 $0 $2,047 $5211920 8. Electric Vehicle Growth: Public Access Charging Facilities (Budget21 Codes: 10261)22 A cost forecast is provided for the installation of utility-owned, public access23 charging facilities for electric vehicles. SDG&E will install and own the charging facilities24 in under-served areas in order to broaden the coverage of public charging opportunities25 within its service territory. This effort will allow SDG&E to continue the momentum of the26 stakeholder charging facility siting and installation process established by ECOtality as part27 of their government funded EV Project between 2010 and mid-2011. As planned, this28 project will increase the number of charging facility services offered by 3rd parties,29 specifically to provide PEV charging facilities in locations that are not necessarily SDGE Doc #249440 TOB-28
  43. 43. 1 commercially or economically desirable, but needed to serve the broader and growing PEV 2 charging needs of the public. 3 4 Charging Facility Site Selection 5 SDG&E will work with the CPUC to develop broad criteria for evaluating the installation of 6 “public access charging facilities” with the objective to ensure a network of public charging facilities 7 is developed in the public interest over time that would provide sufficient support for the adoption and 8 use of PEVs. 9 As part of the selection process, SDG&E will use an independent entity to assist in the10 development of site evaluation criteria to be used in a regional stakeholder charging facility site11 selection process. The process will be led by an independent coordinating entity, such as the San12 Diego Association of Governments, SANDAG. SDG&E will adapt the process that has been13 successfully implemented in the deployment of charging facilities by ECOtality, under an ARRA,14 DOE grant.13 Once ECOtality completes the charging facility installation portion of their EV Project15 by mid-2011, SDG&E will continue to play a role in working with stakeholders to help determine the16 location of the charging facilities that will have the least cost, least impact to the electric distribution17 system. SDG&E will implement this service as part of a long-term process to extend the deployment18 of public charging facilities as the growth of PEVs continues.19 To support the development of electric vehicles and to engender the broad public benefits this20 yields (lower GHG and other harmful emissions, improve local air quality, less reliance on foreign21 oil), SDG&E will play an important role during the formative years of market development to ensure22 that electric charging infrastructure develops which can support the rapid adoption of plug-in electric23 vehicles. Also, because of their limited range, in order to foster market acceptance of these vehicles, a24 seamless network of charging facilities will be needed. In order to ensure that this network of25 charging infrastructure does not have significant voids, SDG&E proposes these "public interest"26 charging facilities.27 As a result of the development of a more robust availability of charging facilities, this effort28 will also help to stimulate market growth for PEV related services and equipment in general, and29 specifically in under-served areas. Although SDG&E will own these charging facilities, it will also30 contract with 3rd parties to build, operate and maintain the charging facilities. This approach will help 13 http://www.ecotalityna.com/pdf/100109_eTec_DOE_Contract.pdf SDGE Doc #249440 TOB-29

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