Connecticut's Grid Modernization and DER Integration

2. Connecticut’s Grid Modernization EffortsMarch 14, 2016

3. Grid Modernization Components

4. Connecticut’s Grid Modernization Focus Areas • Support deployment of renewable energy to meet Connecticut’s Renewable Portfolio Standard and achieve carbon reduction targets under CT’s Global Warming Solutions Act. • Procurements for all types of resources to with multiple policy benefits (ie. Environmental, reliability, economic development, system). • Promote Distributed Generation: LREC, ZREC, residential solar. • Support the development of community-scale micro grids to promote resiliency and energy security. 4

5. Developing Low-Cost Renewable Generation 2013 CT’s Comprehensive Energy Strategy (CES): Goals • Develop low-cost renewable electric generation to make the electricity sector more diverse, affordable, and reliable, while also meeting the State’s commitment to reducing the environmental impacts from electricity generation. Proposed Methods for accomplishing these goals in the 2013 CES • Connecticut’s Green Bank Residential Solar Investment Program (RSIP) • Public Act 11-80 required the Connecticut Green Bank to deploy 30 MW of Residential Solar; recent legislation permits the deployment of an additional 300 MW. • LREC/ZREC, Public Act 11-80, Sections 107 and 110 • Required the development of a Low Emissions and Zero Emissions Renewable Energy Credit Program to buy down the cost of RECs through a reverse auction process. • Utility Scale Renewable Energy Procurement, Public Act 11-80, Section 127 • Allowed DEEP to require the EDCs to enter into long-term PPAs in the procurement of renewable energy generation through a competitive bidding process. • Utility Scale Renewable Energy Procurement, Public Act 13-303, Section 6 • Allowed DEEP to require the EDCs to enter into long-term PPAs in the procurement of renewable energy generation. through a competitive bidding process. 5

6. Deploying Distributed Generation: Looking Ahead Procurements Currently Underway • Public Act 15-303, Section 7 • Procure 5% of Class 1 generation • Public Act 15-107, Section B and C, Large Scale and Small Scale Clean Energy Procurement • Requires DEEP to Procure large and small scale Class I and III energy resources for electric generation, including energy storage and transmission. DEEP can procure up to 10% of the Connecticut EDC load of the aforementioned resources. • These procurements will allow the State to meet its clean energy goals and improve winter reliability. Meet our Global Warming Solutions Act Goals by 2050 • Clean energy must be expanded beyond our 2020 RPS goals in order to meet our Global Warming Solutions Act goals in reducing our greenhouse gas emissions by 80% by 2050. • Retain non-emitting energy resources, such as nuclear generation. Utilize the Most Cost-Effective Options for Procuring Clean Energy Generation • Implement innovative mechanisms to reduce the reliance of subsidies for clean energy electric generation • Promote programs and procurements that will yield the most cost-effective clean energy sources of generation. • Balance the procurement of in-state and out-of-state resources to minimize the impact on ratepayers.

7. CT’s Grid Integration Demonstration Projects CT’s Statute (Public Act 15-5)-Requires each EDC to submit a proposal for pilot program proposal to build, own or operate grid-side system enhancements for the purpose of demonstrating and investigating integration of DERs. At least one proposal must include an energy storage system(s). Definition of Grid Side Enhancement-"Grid-side system enhancement" means an investment in distribution system infrastructure, technology and systems designed to enable the deployment of distributed energy resources and allow for grid management and system balancing, including, but not limited to, energy storage systems, distribution system automation and controls, intelligent field systems, advanced distribution system metering, and communication and systems that enable two-way power flow.

8. Grid Side Enhancement Objectives • Articulate the value of the integrated grid and provide increased transparency for our customers and other stakeholders. • Understand the technical aspects of DER integration and its impacts on system planning, design and operations. • Integrate DER with the distribution system (monitor and control) to optimize grid operation while ensuring the quality of service to all customers. • Coordinate with existing programs and activities to leverage results across multiple dimensions of DER deployment. • Capture important lessons to enable successful future wide-scale deployment. • Provide meaningful benefits for customers in support of a clean energy future.

9. Grid Modernization and DER Integration CT sees DER integration of DER is a fundamental component of the modern electric distribution system Demonstration projects for Grid Side Enhancement represent key components of an overall strategy to build a smarter, more flexible and responsive grid.

10. CT Grid Side Demonstration Proposals Energy storage to support DER integration and system planning Voltage management programs to maintain energy conservation while increasing feeder hosting capacity Inverter control for grid stability Advanced utility substation protection and control for more seamless DER interconnection Smart & Integrated Grid Advanced feeder loading analysis and forecasting Hosting capacity analysis and mapping Preparation for advanced distribution management system with DER integration and dispatch capabilities Advanced Planning On-line portal to educate customers about DER and facilitate interconnection requests Customer Engagement

11. Energy Storage to Support DER Integration and System Planning DEEP Objectives Opportunity Deploy substation level, utility owned and operated energy storage system(s) to manage the impacts of intermittent distributed energy resources and support efforts to defer capacity upgrades ($8-14) million) Benefits • Quantification of impact of energy storage for improved DER integration to inform future deployments • Voltage optimization to maximize efficiency while maintaining customer power quality • Improve system frequency management • Increase DER hosting capacity • Opportunity to explore the use of energy storage for additional benefits, including capacity deferral

12. Creating a Connected Customer Experience CUSTOMER EXPERIENCE My Account AWARENESS CONTROL EFFICIENCY • Learn • Monitor/Manage • Self-Serve • My Usage • Bill Analysis/Payment History • Pay online/E-Bill • Savings Goal/Plan • Proactive Alerts • Home Energy Report • Outage • Consumption • Billing • Payment • Analytics • Targeted • Behavior change Driving Increased Customer Engagement and Energy Efficiency

13. Questions? Tracy Babbidge Bureau Chief, Energy and Technology Policy Connecticut Department of Energy and Environmental Protection Tracy.Babbidge@ct.gov (860)827-2802 Energy Filings Webpage: http://www.dpuc.state.ct.us/DEEPEnergy.nsf/$EnergyView

14. Alternate Fuel Vehicle Opportunities

15. Incentives: ZEV Deployment Announced in May 19, 2015, the Connecticut Hydrogen and Electric Automobile Purchase Rebate (CHEAPR) offers rebates of up to $3,000 for Connecticut residents who purchase or lease a new eligible battery electric, fuel cell electric, or plug-in hybrid electric vehicle. 80% of the CHEAPR funds have been distributed within 6 months of the program being created.

16. Looking Ahead Focus on Consumer protections Clear signage at public charging stations Interoperability of charging infrastructure Time of use rates for charging stations Public charging stations v. home charging Utility notification procedures for PEV purchases and EVSE installations to ensure grid reliability. Including EV electric load in utility energy forecasts