David Groarke Presentation to the Saudi Arabia Smart Grid Conference & Exhibition SASG December 2014. "Smart Grid deployments in the US - Lessons Learned and Emerging Benefits Areas.

1. 14-17 Dec, 2014
Saudi Arabia-Jeddah
SMART GRID
DEPLOYMENTS IN THE US
Presented at the Saudi Arabia Smart
Grid Conference
David Groarke, PA Consulting Group,
December 2014
Lessons Learned and Emerging
Benefit Areas

2. 14-17 Dec, 2014
Saudi Arabia-Jeddah
Agenda
US Smart Grid - The path to the present
Emerging US Smart Grid Benefit Areas
US Utility Benefit Case Study Highlights
Lessons Learned and Key Trends for 2015

3. 14-17 Dec, 2014
Saudi Arabia-Jeddah
US Smart Grid - Path to the Present
Smart grid technologies are being applied across the electricity system, including
transmission, distribution and customer-based systems
The adoption of smart grid technologies varies
across the nation and depends on many factors
including state policies, regulatory incentives,
load growth, and utility technology experience
Source: FPL

4. 14-17 Dec, 2014
Saudi Arabia-Jeddah
U.S. Smart Grid Spending 2008-2017
Source: BNEF 2014

5. 14-17 Dec, 2014
Saudi Arabia-Jeddah
Illustrative US Utility Smart Grid Journey
Smart Grid Analytics & Optimization
Low CAP EX, Not widely deployed
 Virtualization of performance and
outage data
 Data Storage & Management
 Analytical Applications;
 Outage detection and
restoration
 Voltage optimization
 Revenue protection
 Equipment Load
forecasting
 Reliability performance
prediction
 Evaluation of impact on
distribution system from
distributed resources, EV’s
Advanced Metering Infrastructure
Moderate CAP EX, Maturing
Deployment
• AMI / Smart Meters
• Intelligent Electronic Devices
• Communications
Infrastructure
• Meter Data Management
• Business Model & Process
Optimization
• Network Operations Centers
T&D Spending
High CAP EX, Mature
Deployment
• Synchrophashors, DA, Protection
& Control, Smart Switch Gear
• Aging infrastructure
replacement
StrategicValueoftheSmartGrid
Capability Maturity and Energy Market Transformation
Capability Building Across key areas;
• Increase Reliability/Resiliency
• Enhanced situational awareness
• Optimization of assets
• Integration of bulk renewables and DG
2008 2025

6. 14-17 Dec, 2014
Saudi Arabia-Jeddah
United States AMI Penetration - 2014
Cumulatively, 57 million smart meters will have been deployed in the United States in the next two years
Source: GTM 2014

7. 14-17 Dec, 2014
Saudi Arabia-Jeddah
2014 Key State-Level Developments
• New York’s Public Service
Commission initiated a State-wide
Reforming the Energy Vision
(REV) process in April 2014 and
might affect other states views on
the role of the grid and the grid
operator moving forward.
New York
• California’s new
requirements for utilities
to develop plans for
achieving new energy
storage targets and
developing distribution
resource plan to
accommodate a greater
percentage of distributed
energy resources
(DERs).
California
• Illinois Grid Modernization Act
• Return-on-equity tied to
reliability metrics including
SAIFI and SAIDI
• Metrics for elimination of
estimated billing
Illinois
• Texas continues to lead in the
implementation of deregulated retail services
and in effectively integrating large-scale wind
generation
• ERCOT has an effort underway to “rethink”
the entire existing set of ancillary services
Texas
• Increasing penetrations
of rooftop solar have led
to the need to focus on
the modernization of the
electric grid to be able to
effectively integrate and
utilize DERs.
Hawaii
Overall Need for
Utilities to show
ROI on Smart Grid
Investments

8. 14-17 Dec, 2014
Saudi Arabia-Jeddah
Agenda
US Smart Grid - The path to the present
Emerging US Smart Grid Benefit Areas
US Utility Benefit Case Study Highlights
Lessons Learned and Key Trends for 2015

9. 14-17 Dec, 2014
Saudi Arabia-Jeddah
Emerging US Smart Grid Benefit Areas
Security
Economic
• T&D O&M Savings
• Theft Reduction
• Reduced Congestion
• Energy Efficiency
• Electricity Cost Savings
• Power Quality
• Increased Reliability
• Ability to support customer
choice
• Asset Optimization
• Productivity Increases
• Enhanced System Control
• Flexible Architecture
• Economic Development
• Promote fuel diversity
• Facilitate
Renewables
• Reduced CO2
Emissions
• Facilitate EV adoption
• Integrate all types of
DERs
2
1
3
• Safety
• Maintain system
security
• Self-healing
infrastructure
• Mitigating major
outages
Smart Grid
Investment
Portfolio
Improved Operational Efficiency,
Reliability, Electric System Flexibility and
Customer Choice
Economic Benefits Environmental Benefits
Security
Benefits
We are seeing benefits of smart grid accrue across many categories, EPRI/DOE Framework suggest
three major domains
Environment

10. 14-17 Dec, 2014
Saudi Arabia-Jeddah
Illustrative US Utility Cost-Benefit Analysis
Illustrative 20 year Smart Grid cost-benefit ratio range of 2.8 to 6.0 in the US
$m
$m
$m
$m
$m
$m
$m
$m
1
Costs
Training
R&D
Software
Labor
Comms
Grid Hardware
$1
Benefits
Increased Revenue
Increased Reliability
Generation Savings
Reduced Transmission
Losses
Asset Optimization
Theft Reduction
Reduced Congestion
Reduced O&M

11. 14-17 Dec, 2014
Saudi Arabia-Jeddah
Agenda
US Smart Grid - The path to the present
Emerging US Smart Grid Benefit Areas
US Utility Benefit Case Study Highlights
Lessons Learned and Key Trends for 2015

12. 14-17 Dec, 2014
Saudi Arabia-Jeddah
Utility Benefit Case Studies
FPL’s smart grid has resulted in:
• $3.4 million in productivity savings
• average annual reduction of 4.3 million minutes of power
interruptions
• providing more than 99.98% service reliability
Central Maine Power Company has:
• reduced its meter operations costs by more than 80% with
annualized savings of about $6.7 million
• due largely to fewer service calls, resulting in about 1.4
million fewer annual vehicle miles traveled
Bonneville Power Administration will use synchrophasor data on
the 4,800-MW California-Oregon Intertie (COI) to:
• Increase energy flows by 100 MW or more using real-time
control actions as needed—reducing energy costs by an
estimated $35 million to $75 million over 40 years without
any new high-voltage capital investments
Maine
Oregon
Florida

13. 14-17 Dec, 2014
Saudi Arabia-Jeddah
Utility Benefit Case Studies Cont.
Oklahoma Gas and Electric, coupling of AMI with time-based
rates and in-home displays is:
• reducing peak demand to an extent that will potentially
enable the utility to defer the construction of a 170 MW
peaking power plant.
• To date average bill savings of about $150 per participating
residential customer
The City of Chattanooga was able to:
• instantly restore power to half of the residents affected by a
severe windstorm on July 5, 2012 (from 80,000 affected
customers to less than 40,000 within 2 seconds) using
automated feeder switching.
PPL Electric has reported a:
• 38% improvement in service reliability enabled in part by
the deployment of sophisticated analytical capabilities
Oklahoma
Tennessee
Pennsylvania

14. 14-17 Dec, 2014
Saudi Arabia-Jeddah
Building the Grid of the Future in ERCOT
The nodal market design has been implemented in
ERCOT, allowing for more efficient pricing,
dispatch, and siting of generation.
CREZ is primarily designed to
move renewable energy sources
from remote parts of Texas to
more heavily populated areas.
A number of CREZ projects also
provide transmission necessary
to meet the long-term needs of
the growing area west of the
I-35 corridor. More wind energy
will further diversify the fuel
portfolio of Texas’s generation
resources.
In ERCOT Smart
meters help with
15-minute
settlement and
replace the use of
load profiles in the
ERCOT retail
market and well
as encourage
innovative DR
products, and
facilitate EV
deployment.
Oncor has
installed more
than 3 million
smart meters in its
service area,
CenterPoint more
than 2 million, and
AEP more than 1.1
million.
Source: Texas PUC

15. 14-17 Dec, 2014
Saudi Arabia-Jeddah
Agenda
US Smart Grid - The path to the present
Emerging US Smart Grid Benefit Areas
US Utility Benefit Case Study Highlights
Lessons Learned and Key Trends for 2015

16. 14-17 Dec, 2014
Saudi Arabia-Jeddah
US Deployments - Lessons Learned
• Design for the Future
• Thorough Business Case and Risk Analysis
• Post-AMI implementation strategies
• Data Management
• Technology and Integration
• Customer Relationship Management

17. 14-17 Dec, 2014
Saudi Arabia-Jeddah
4 Key Trends and Challenges Shaping
Future US Smart Grid Deployments
1. Smart Grid Technology Valuation is Evolving and Varies Widely
across Utilities and Jurisdictions
2. Deployment of Smart Grid Analytics is the Next Frontier for US
Utilities and Will be the Proving Ground of Investments
3. Integration of Distributed Energy Resources is Transforming the
Distribution System
4. Disruptive Changes Will Require New Business Models,
Advanced System Designs, and Long-Term Planning

18. 14-17 Dec, 2014
Saudi Arabia-Jeddah
THANK YOU
David Groarke
Managing Consultant, PA Consulting
New York, NY
Tel: +1 212 499 3002
Mobile: +1 917 242 5379
E-mail: david.groarke@paconsulting.com