Enabling the Smart Grid with AMI and SAP at PSE&G

1. Enabling the Smart Grid with AMI and SAP at PSE&G Jerry Casarella Chief Architect PSEG

2. Contents • Smart Grid Scope and Definition • Smart Grid Key Components • Smart Grid Key Characteristics and Applications • Smart Grid Architecture • AMI Definition and Components • AMI and Smart Grid

3. Smart Grid Scope and Definition

4. Part of the overall energy ecosystem that included Generation, Transmission, Distribution and the Customer premise Energy Markets Energy Markets Smart Smart Smart Smart Smart Smart Smart Smart Smart Smart Smart Smart Generation Generation Generation Generation Grid Grid End Use End Use Grid Grid End Use End Use Commercial/ Commercial/ Centralized Centralized Distributed Distributed Commercial/ Commercial/ Centralized Centralized Distributed Distributed Transmission Transmission Distribution Distribution Residential Residential Transmission Transmission Distribution Distribution Residential Residential Industrial Industrial Industrial Industrial Distribution Distribution Distribution Distribution Baseload Baseload Transmission Transmission Smart Motors Smart Motors Baseload Baseload Transmission Transmission Smart Smart Smart Motors Smart Motors Smart Smart Operations Operations Operations Operations Operations Operations & Devices & Devices Operations Operations Appliances Appliances & Devices & Devices Appliances Appliances Information Information Information Information Peaking Peaking Peaking Peaking Plug Plug - - in in Plug Plug - - in in Systems Systems Systems Systems Hybrids Hybrids Hybrids Hybrids Demand Demand Demand Demand Intermittent Intermittent Intermittent Intermittent Response Response Response Response Critical / Critical / Asset Asset Advanced Advanced Building Building Critical / Critical / Asset Asset Advanced Advanced Building Building Backup Backup Management Management Metering Metering Automation Automation Backup Backup Management Management Metering Metering Automation Automation Green Green Grid Grid Site Energy Site Energy Green Green Grid Grid Site Energy Site Energy Photovoltaic Photovoltaic Photovoltaic Photovoltaic Power Power Monitoring Monitoring Mgmt Systems Mgmt Systems Power Power Monitoring Monitoring Mgmt Systems Mgmt Systems Grid Grid Grid Grid Automation Automation Automation Automation Power Power Power Power Electronics Electronics Electronics Electronics Smart Smart Communication Communication Smart Smart Communication Communication Dist. Devices Dist. Devices & Control & Control Dist. Devices Dist. Devices & Control & Control Smart Smart Smart Smart Storage Storage Storage Storage Enterprise Enterprise Enterprise Enterprise Integration Integration Integration Integration Smart Grid Scope Source: Global Environment Fund and The Center for Smart Energy 4

5. Smart Grid ScopeSmart Grid encompasses the entire Electric Delivery System • Transmission Grid • Control/Indication (SCADA) • Advanced Sensors supporting overall grid reliability • Phasor Measurement Units • Temperature sensors to support dynamic line ratings • Substation • Control/Indication of major equipment (SCADA) • Time synchronized real-time data from major equipment and relays • Smart Sensors • Voltage/load control • Distribution Grid • Demand response • Outage Management • Grid Management • Asset Management

6. Smart Grid Definition – Key Technology Components Source: DOEModernGrid The Modern Grid Initiative has defined a Smart Grid as a modernized Electricity Network using the following digital and informational technologies to meet key characteristics: Integrated Communications – High-speed, fully integrated, two-way communication technologies Sensing and Measurement – Technologies to: enhance power system measurements, evaluate the health of equipment and the integrity of the grid, support advanced protective relaying. eliminate meter estimations. prevent energy theft, enable consumer choice and demand response Advanced Components – Advanced components used to determine the grid’s behavior. These power system devices will apply the latest research in materials, superconductivity, energy storage, power electronics, and microelectronics. Advanced Control Methods – New methods to monitor essential components and enable the rapid diagnosis and timely, appropriate response to any event. Improved Interfaces and Decision Support – Seamless, real-time use of applications and tools that enable grid operators and managers to make decisions quickly.

7. Substation Generation Metering Distribution System Transmission System Electric Grid Today… • Communications technology has limited information available to grid operators • Some data from substations • Monthly meter readings • Customer calls for outages and other issues • Lack of information limits the grid operator’s ability to manage the grid efficiently • Limited customer motivation to manage usage

8. Substation Analysis Systems Grid Operator Generation Metering Distribution System Transmission System A “Smart Grid” Would be Much Different… • Information from across entire grid • Two-way communications reaching inside the home • Advanced sensors and metering • Customer motivated to manage load • Advanced applications to support decision making

9. Smart Grid Key Components

10. Smart relays Substation Smart meters Generation Smart sensors Distribution System Transmission System Key Smart Grid ComponentsSmart Meters and Sensors • Smart meters at all customer locations • Automated Meter Infrastructure (AMI) • Smart relays at all substations • Advanced sensors on transmission and distribution lines

11. High Speed Two-way Communications Substation Home Area Network Generation Distribution System Transmission System Key Smart Grid ComponentsCommunications Across Grid • High-speed communications to substation and distribution devices • Two-way communications to the customer (AMI) • Enable Home Area Networks (HAN)

12. Key Smart Grid ComponentsAdvanced Components • Distributed generation and energy storage • Solar and/or wind installations • Home Area Network (HAN) in customer homes • Smart thermostats/Energy Management and Demand Response • Smart appliances • Plug-in Electric Hybrid Vehicles • Equipment monitoring devices in stations Energy Management Substation Solar Generation Smart Appliances PHEV Distributed Generation Distribution System Transmission System

13. Key Smart Grid ComponentsDecision Support Systems • Distribution Management System to support Grid Operator • 3 million+ devices on the system • Data from across system (voltage, power factor, outages, etc) • Automated control throughout grid • Enhancements to existing systems needed • Outage Management, Asset Management, etc • Must leverage available data Advanced Applications to support Grid Operator Substation Generation Distribution System Transmission System

14. Smart Grid Key Characteristics and Applications

15. Smart Grid Definition – Key Characteristics Source: DOE Modern Grid • Seven principal characteristics comprise the systems view of the modern grid • Self-heals • Motivates and Includes the consumer • Resists attack • Provides power quality for 21st century needs • Accommodates all generation and storage options • Enables markets • Optimizes assets and operates efficiently

16. Rationale Minimize interruptions Restore service quickly Real-time data supporting condition assessment and contingency analysis Benefits Lower SAIFI, MAIFI & CAIDI Improved Customer Satisfaction Reduce outage related cost for customers Key Characteristics: Rationale, Benefits, Technologies Self-heals Supportingtechnologies • 13kV Loop-scheme • Class H transfer scheme • Energy Management System • Contingency Analysis • Synchrophasors • Dynamic transmission line ratings • Outage Management System • Advanced-loop scheme • Distribution/Substation automation • Distribution Management System • High speed two way communications (AMI) • Real-time customer outage information • Control/indication across system

17. A Smart Grid “Self-heals” A Smart Grid reports outages and automatically restores customers Substation CURRENT GRID SMART GRID Substation Grid Operator Outage Reports X X Plant damage can interrupt multiple customers Automatic Restoration

18. Rationale Real-time demand and price to the customer Modified customer consumption Benefits Lower cost for customers Reduce system peak Lower capital expenditure & improve utilization Environmental benefits Key Characteristics: Rationale, Benefits, Technologies Motivates and Includes the Customer Supporting technologies • Two-way real-time communications with customer (AMI) • Real-time consumption • TOU pricing • Home Area Network (AMI) • Efficient/smart appliances

19. A Smart Grid “Motivates and Includes Customers” Substation Grid Operator Price signals sent to customer Time-of-Use rates measured During peak periods Customers adjust usage

20. Rationale Resist physical and cyber attacks Minimize consequence and rapid restoration Benefits Reduce vulnerability Key Characteristics: Rationale, Benefits, Technologies Resists Attack Supporting technologies • NERC CIP Standard • Physical security and monitoring at key sites • Encrypted communication • Security risk part of planning/design criteria

21. A Smart Grid “Resists Attack” Substation

22. Rationale Limit momentary interruptions Tight voltage tolerances Clean power - no sags, surges, harmonics Benefits Improved customer productivity Improved customer satisfaction Improved voltage to customer Improve PQ metrics (SARFI) Key Characteristics: Rationale, Benefits, Technologies Power Quality for the 21st Century Supporting technologies • Advanced-loop scheme • Substation automation • Distribution Management System • System-wide volt/var control • High speed two way communications (AMI) • Real-time customer outage information • Control/indication across system • PQ enabled meters • Transient suppression equipment • Reduce customer induced PQ problems and improve PQ sensitivity of loads

23. A Smart Grid provides “Power Quality for 21st Century” Substation Substation Advanced Loop Scheme High speed communications and additional switching devices Power Quality Monitoring Premium Power Programs

24. Rationale Enables wide variety of generation/storage options Simplified interconnection process – “Plug-and-Play” Enable profitability of small, distributed generation Accommodate large renewable plants into transmission system Benefits Improved customer productivity Improved customer satisfaction Increase reliability and capacity Environmental benefits Renewables Key Characteristics: Rationale, Benefits, Technologies Accommodate all Generation and Storage Options Supporting technologies • Two-way real-time communications with customer • Real-time pricing signals • TOU pricing (AMI) • Home Area Network (AMI) • Distribution Management System • Real-time control/indication of local generators • Support for PHEVs • Demand Side Management • Advanced planning tools

25. Substation Grid Operator Generator Control & Indication A Smart Grid “Accommodates All Generation & Storage Options”

26. Rationale Increased generation paths - more market participation Leverage supply/demand of markets Improved demand response Benefits Open access drives efficiency Buyers and sellers brought together Lower capital/operating costs Key Characteristics: Rationale, Benefits, Technologies Enable Markets Supporting technologies • Two-way real-time communications with customer • Real-time pricing signals • TOU pricing (AMI) • Home Area Network (AMI) • Distribution Management System • Real-time control/indication of local generators • Support for PHEVs • Advanced planning tools

27. Rationale Near real-time data: Improves condition assessment and Asset Management Improves distribution operations decision making Benefits Lower capital/operating costs Improved maintenance processes Improved reliability Environmental benefits Lower losses Key Characteristics: Rationale, Benefits, Technologies Optimize assets and operates efficiently Supporting technologies • Substation automation • Widespread uses of sensors & IEDs • CMMS • Advanced trending algorithms • Automated trouble notification • EMS • Contingency analysis • Green Circuit Initiative (EPRI) • Distribution Management System • Contingency analysis • System-wide volt/var control • Dynamic transmission lines ratings

28. A Smart Grid “Optimizes Assets & Operates Efficiently” Substation Substation Grid Operator Asset Manager Investment Plan Voltage & PF Measures Voltage & PF Control Equipment Status Load Data

29. Smart Grid Architecture

30. Communications Infrastructure Improved Decision Support Advanced Control Methods Executive Dashboards T&D Operations T&D Planning & Engineering DMS EMS Systems Planning SAP CMMS SAP Asset Mgmt Enterprise Information Integration SAP XI SCADA DSM Distribution Management GIS OMS SAP WM Procurement & Market Ops Planning & Forecasting Bidding & Scheduling Trading & Contracts Customer Services AMI Head-end MDUS SAP CCS/CRM Resource Dispatch Settlements Integrated Communications Advanced Meters Communication Infrastructure Home Area Network (HAN) Smart In-home devices • SCADA • IEDs/Smart sensors • Equipment monitoring • Relays • PMUs-synchrophasors Plant Info Substation Automation Advanced Metering Infrastructure Distributed Generation Transmission Info Advanced Components Line sensors Renewables Distribution Automation PHEVs • Control/indication • Reclosers • Cap banks • Automated Switches • Smart sensors • Fault Indicators Sensing & Measurement Smart Grid Architecture and Technology Components (source: KEMA, DOE)

31. AMI Definition and Components

32. Meter Reading has gone through several evolutionary cycles, with AMR more recently giving way to AMI. Manual Meter Reading Electronic Meter Reading (EMR) Off-Site Meter Reading (OMR) Automated Meter Reading (AMR) Advanced Metering Infrastructure (AMI) Gateway/ Home Automation Advanced Metering Infrastructure (AMI) is a term coined to differentiate bidirectional, high functionality technologies from older, automated meter reading (AMR) technologies. According to FERC: Advanced metering is a metering system that records customer consumption [and possibly other parameters] hourly or more frequently and that provides for daily or more frequent transmittal of measurements over a communication network to a central collection point.

33. Utility Operational Benefits: Improved Outage Detection – smart meters automatically send information when power is removed and restored Improved Meter to Billing Processes – moves from a manual to automated process Faster Customer Inquiry Response Time – enables operators ready access to customer information Fewer Customer Complaints, More Customer Control – provides system operator with near-real time information Customer Service Connection Convenience – can remotely provision service Active Tracking of Inactive Meters and Theft – allows verification that no consumption is measured on inactive locations Customer and Societal Benefits: Lower Energy Bills – by shifting consumption to off-peak periods and by conservation Lower Market Price Benefits – reduces the need to purchase energy at higher spot prices Deferred Generation Construction Costs – energy reduction can help avoid new generation Smart In-home Systems – to provide energy information and consumption feedback Distributed Generation Assets – to measure resources that feed or reduce grid requirements Smart Grid Technologies – provides means to improve the performance and reliability of the grid When utilities explore AMI, they realize that it enables key utility, customer and societal benefits

34. SAPUtilitiesExtensions “IS-U” SAP Generic Applications Customer Relationship Management & Billing Enterprise Asset Management Energy Capital Management Enterprise Management & Business Support SAP for Utilities Business Process Platform AMI Technology OverviewSupporting End-to-End Processes + Meter & Communications Infrastructure + Meter&Event Data Management = Advanced Metering Infrastructure (AMI) Meter Data Unification & Synchronizat. System Marketing&Sales Customer Service Billing Premise Equipment Home Area Network Customer Retail “Smart” Meter Internet, CTI, IVR, Call Center Measures, collects, transmits and stores end-user consumption. Configured remotely. Local Area Network (LAN) Wide Area Network (WAN) HAN Home Automation Network Consumer Products Endpoint Devices Concen trator AMI Head End MDUS* Central repository for meter&event data collected from all AMI Head Ends. Dispatches AMI Head Ends. Accessed by all apps responsible for processing the data Most end-to-end processes are either directly or indirectly initiated by the customer and are the consequence of or result in customer services and have an impact on the customers bill (supply contract) • Integration of • Marketing&Sales • Customer Service • Billing • EAM • to MDUS. • System of Record for all customer and commercial data and the related processes that leverage AMI. Devices in the home that can be remotely updated and controlled by the utility. Connected to meter via gateway Transmits data between meters and the collector. Solution specific protocols. Emergingstandards. Controls Meters & Communic. Infrastructure Manages Meter & Event Data and forwards to MDUS Transmits data between concentrator and AMI head end. Solution specific protocols. The network connecting consumer products and endpoint devices Collects, stores and transmits messages to and from multiple meter points. .. consuming energy Distribution Equipment Distribution Automation elements that use the same infrastructure to transmit or receive commands.

35. Meter Data Management ApplicationsCentral repository for meter data that facilitates operationalizing and monetizing the benefits of AMI Customer Service Operations • Move in/Move out • On Demand Meter Read • Service Connect Disconnect • Meter Read Data Quality • Energy Diversion Identification • Date Validation, Editing, Estimation Systems that could make use of Meter Data Customer Programs • Mass Market Demand Response • Web Data Access • Billing Options & Tariffs • Automated Controls Traditional, Value-added use of Meter Data Metering Operations • AMI Asset Management • Meter O&M Management • AMI Installation Management • AMI Diagnostics and Error Flag Management Non-Traditional, Value-added use of Meter Data Distribution Operations & Planning • Outage event processing • Restoration Verification • Transformer Load Monitoring

36. The SAP AMI solution consists of: • Meter Data Unification System (MDUS) provided by the MDM vendors and acting as a link between the AMI communications systems and SAP • Standard, tight integration between the MDUS and the SAP for Utilities modules • Enhancement to SAP for Utilities functionality to support new processes such as On-Demand Reads, Remote Connects/Disconnects MDUS SAP for Utilities High Speed Meter Data Handler Meter & Energy Data Management Meter&Energy Data Repository AMI System 1 Meter & Device Management Meter & Device Master Data AMI Enabling Marketing/Sales (Self) Service Billing/Invoicing AccRec/C&C . . . . . Set of Enterprise Services along defined Industry Standards Meter Data Repository CRM/CIS Data Intercompany Data Exchange Master Data Synchronization Command Mgr & Event Handler AMI System Unification Service Provider Data Enterprise Role: Full Service Provider • Enterprise Asset • Management • Service Mgmt EAM Data AMI System n Enterprise Management & Business Support NetWeaver SAP XI NetWeaver Enterprise Service Repository Dependent on vendor compatibility MDM-Vendors  SAP AMI-Vendors AMI/MDM-Vendors SAP AMI@SAP System Architecture

37. AMI, MDUS (MDM), SAP for Utilities Roles Advanced Metering Infrastructure • Smart Meter, Communication Infrastructure, AMI Head End System • Collecting/Forwarding Metering Data • Receiving/Forwarding Event Data MDUS • Specialized to manage very large volumes of (Basic Interval data) BID and very large volumes of events at highest speed and lowest TCO • Integrates and unifies several AMI Systems • Synchronizes master data for AMI Systems with those back office applications that are the System of Record for the respective master data • The System of Record for all BID collected through AMI Systems • Provides BID to applications (such as SAP) • Validates BID, Estimates missing BID • 24 x 7 availability SAP for Utilities • Responsible for Customer Relationship & Billing, Enterprise Asset Management and basic ERP processes • The System of Record for all „processing-relevant“ metering data • Selected/Limited volumesof BID that was read 1:1 from the MDUS (C&I/Small Retailers) • Discrete meter readings • Responsible for various Energy Capital Mgmt Processes (processing Non-BID Load Profiles) • Validates/estimates „processing relevant“ metering data

38. AMI and Smart Grid

39. Smart Grid and AMIHow AMI reinforces the seven principal characteristics of the Modern Grid • Motivation and inclusion of the consumer is enabled by AMI technologies that provide the fundamental link between the consumer and the grid. • Generation and storage options distributed at consumer locations can be monitored and controlled through AMI technologies. • Markets are enabled by connecting the consumer to the grid through AMI and permitting them to actively participate, either as load that is directly responsive to price signals, or as part of load resources that can be bid into various types of markets, • AMI smart meters equipped with Power Quality (PQ) monitoring capabilities enable more rapid detection, diagnosis and resolution of PQ problems. • AMI enables a more distributed operating model that reduces the vulnerability of the grid to terrorist attacks. • AMI provides for self healing by helping outage management systems detect and locate failures more quickly and accurately. It can also provide a ubiquitous distributed communications infrastructure having excess capacity that can be used to accelerate the deployment of advanced distribution operations equipment and applications. • AMI data provides the granularity and timeliness of information needed to greatly improve asset management and operations.

40. Smart Grid and AMIHow AMI relates to the 5 key technology areas of the Modern Grid • Integrated Communications: AMI provides the last and by far the most extensive link between the grid (including the consumer’s load) and the system operator. • Sensing and Measurement: Smart meters extensively measure system conditions (including PQ) down to the consumer level. • Advanced Control Methods: Consumer-side applications process information and initiate control actions locally (sometimes based on real time pricing). Distribution operations centers process AMI information and take control actions at the system and regional level. • Advanced Grid Components: AMI supports the deployment of distributed energy resources and can reduce the communication network costs of deploying pole-top distribution automation components. • Improved Interfaces & Decision Support:: AMI consumer portals, home area networks, and in-home displays provide the human interface and support consumer decision-making. Decision support at distribution operations centers is enabled by the additional information provided by AMI.

41. Head-End MDUS How SAP supports AMI and Smart Grid

42. Demand Response and Distributed Energy Resources (DR/DER) are key areas of AMI and Smart Grid intersection • Time-based tariff programs enabled by AMI can help meet customers need for more efficiency • TOU linkage to Thermostat program are an effective means of helping consumers capture economic benefits • In-home display units can help customers better understand the connection between consumption and costs • Metering will be used for Measurement and Verification. • Distributed energy resources can be effectively managed, administered and incorporated into integrated reserve management programs: Metering will provide the requisite monitoring • Energy storage can be effectively dispatched to offset peaks; Metering will be used to capture the net results • Distributed Generation can be viewed, managed and controlled as required; Metering will provide net use calculations

43. Meters can provide “Last Gasp” messaging that indicates a power failure or restoration conditions; Back office applications can leverage this to supplement other network monitoring functions. Linkage between meter physical and electrical addresses can be used for further circuit failure analsys Power restoration notification and the ability to individually “ping” a meter for status can help ensure full restoration in a given area; This could help eliminate “nested” outage call backs for field crews. ReliabilityAutomated outage and restoration processing at service points is a key function that can augment existing outage management processes.

44. Distribution Grid ManagementFeeder and Distribution Automation can be enabled through the AMI infrastructure and with selected upgraded meter functionality • Distribution Grid Management • Communication/control of distribution switches • Distribution transformer load management • Utilization of sensors for advanced functions/analysis (fault detectors, equipment/conductor temperatures, etc) • Contingency analysis and overload mitigation • Distribution system voltage management/control • Self Healing System/High Speed Communication for control/protection • High speed communication to support advanced sectionalizing schemes • Sensors and other IED’s are being included as AMI network peripherals • Many DA vendors are beginning to support open standards that are being used for AMI networks • This helps further justify AMI and DA infrastructure investments

45. Smart Grid and AMI Alignment Asset ManagementImproved equipment health assessment and associated asset management functions • Regular data capture from field assets can be used to drive intelligence-based maintenance programs. • Linking status reports with other key parameters (such as temperature) can now provide additional criteria to be used for field operations • Preventative Maintenance routines can begin to displace more expensive Corrective Maintenance dispatches • Inventory management can be optimized based on more accurate models • Load data can be aggregated to identify key areas of interest • Actual field data from meters can be used to verify load design forecasts and limits • Critical conditions can be addressed prior to failure or overstressed states

46. Summary

47. AMI Background Linking AMI, Smart Grid, and SAP • AMI provides the link between the customer and the grid via: • Smart Meters and Home Area Networks • AMI communication network • The AMI communication network can be leveraged to support deployment of sensors and monitoring equipment • The MDUS and SAP are key components that need to be integrated to support the required AMI functionality

48. AMI and SAP components leveraged to enable Smart Grid functions

49. Jerry Casarella Chief Architect - PSEG Jerry.Casarella@pseg.com