2. Topics Who is Bridge Energy Group Smart Grid is a “Game Changer” for Traditional Utility Regulation Applied Regulatory Issues with Smart Grid Regulatory Roles, State Versus Federal How Should Utility Commissions Address Cost/Benefit? 8/19/2010
8. Currently working on many Smart Grid ProjectsBRIDGE is Not Aligned with any Tool, Product or Technology Vendor Advantage: BRIDGE works for the client’s cause. BRIDGE coordinates as neutral third party with all vendors without conflict of interest. BRIDGE will be Your Trusted Advisor and Implementation Partner. 8/19/2010
9. The Traditional Regulated Utility Bundled Investment Made on Behalf of Consumers & Society Investment in Long Lived, Predictable Assets Retail Rates Expected to be Stable Utilities Manage a Centrally Controlled Network Utility Planners Focus on Stability and are Responsible for Reliability 4
10. The National Electric System Historically Central Station Driven Since Restructuring Focused on a National Transmission Superhighway Top Down Resource Planning via Utilities, Regulators and RTO’s Since 2003 Blackout Accountability for Reliability Raised Significantly 5
11. National Energy Policy Starting with PURPA in 1978, Efficiency & Resource Diversity (Renewables) EPAct 1992 Increased Emphasis on Efficiency, Launch of EWG’s, Restructuring Increasing Emphasis on Environmental Attributes in Light of Climate Change BUT Most Solutions are Instituted via Mandates to Utilities 6
13. Old Ratepayer Profile All Set, Taken Care of Disengaged, Uninterested Content that the Lights Come On, Flat Screen Works Occasionally Awakened When Rates Increase or a Transmission Line is Proposed Pays their Bill via the U.S. mail 8
14. New Ratepayer Profile Banks, Christmas Shops, Plans Vacation & Has a Garage Sale (eBay) all online Has at least one cell phone Owns not just a DVR, But Streams Movies, Even Netflix in the Mailbox is Old Already Very aware of and cares about the environment Has installed or is thinking about installing their own solar panels, or wind turbine 9
37. The SG “Line of Scrimmage” is the State Utility Commission
38. Federal SG Role Has Been one of Vision & Certainly Stimulus $$
39. However FERC Must Engage on Price Responsive Demand Development within Wholesale Power Markets15
40. Determining SG Cost/Benefit Cost and benefit extends well beyond AMI Distribution Automation a Major Driver of Ratepayer Benefit Measuring Ratepayer Benefit Greatest Challenge Uniformity of Approach Should Be Explored
41.
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44. “Rethinking ‘Dumb’ Rates, Achieving the Smart Grid’s Potential Requires a Revolution in Electricity Pricing.” Rick Morgan, Public Utilities Fortnightly, March 2009.http://www.fortnightly.com/exclusive.cfm?o_id=158 18
45. Questions ? David J. O'Brien Director of Regulatory Strategy & ComplianceBRIDGE Energy Group Inc. 508.281.7133 x210 | M: 802.522.0917 DOBrien@bridgeenergygroup.com www.BridgeEnergyGroup.com
Editor's Notes
18 years in Information Technology; focused network engineering, application, system and security implementation, program and project management12 years in program and project management roles supporting infrastructure deployment, application development and delivery, large-scale technology deployment/transition, and process development5+ years in the ISO/RTO business delivering projects and consulting in program and project management development and process definition
18 years in Information Technology; focused network engineering, application, system and security implementation, program and project management12 years in program and project management roles supporting infrastructure deployment, application development and delivery, large-scale technology deployment/transition, and process development5+ years in the ISO/RTO business delivering projects and consulting in program and project management development and process definition