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A Revolutionary Shift in Customer Focus. Our utility paradigm is changing… will YOU be ready?. Paul Kalv Smart Grid Research Consortium Electric Director October 20, 2011 Chief Smart Grid Systems Architect City of Leesburg, Florida . Leesburg Overview.
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A Revolutionary Shiftin Customer Focus Our utility paradigm is changing… will YOU be ready? Paul Kalv Smart Grid Research Consortium Electric Director October 20, 2011 Chief Smart Grid Systems Architect City of Leesburg, Florida
Leesburg Overview • 23,000 electric customers also provide gas, water & internet. • 9,700 (42%) AMR electric – 18,900 (34%) AMR total meters. (Discontinued further AMR deployment 2007) • 140 residential electric meter AMI pilot deployed January 2008. • Completed AMI Business Case December 2009. • $19,500,000 SGIG from DOE & $1,240,000 EECBG from State • Vendor selection completed… working on Best and Final Price
Thoughts on Where to Start • Identify YOUR one or two Biggest Issues • Power Supply Costs • Reliability • Workforce Retention • System Losses • ???
2007 Top Priority... Reduce Peak Demand
Startling Realization • All kilo-watt-hours are: NOT CREATED EQUAL - Cost Differences Energy Rate ≈ $0.05 / kWh Peak Hour ≈ $20.05 (400 x) Gas: $3.50 / gal. Peak Hour: $1,403.50 (400 x) • The lowest cost kilo-watt-hour is: The kilo-watt hour NOT GENERATED
Where Did We Start? 1. Developed a Vision 2. Identified 4 Broad Goals 3. Focused efforts on developing Strategies
Leesburg’s 2020 Vision Leesburg will operate the best and most secure electric grid available in the country by the year 2020 by incorporating information and control technologies that can support four goals: • (1) empowering consumers, • (2) rewarding conservation and energy efficiency, • (3) improving distribution reliability and resiliency • (4) expanding the use of renewable energy, distributed generation, and alternative technologies.
Focus - Empowering Consumers • AMI Related Technologies • Advanced Metering Infrastructure (Focus: Consumer Needs not Technology) • Smart Meters. • Communications network, or 2 or 3 or 4…. or more • Meter Data Management System • Communications infrastructure and meter installation • Enterprise Service Bus • Field Acceptance Testing • Home Area Network • In Home Display and web portal • Programmable Communicating Thermostat • Direct Load Control • Pay-as-you-go
Focus: Rewarding Efficiency & Conservation • Energy Efficiency & Conservation Initiatives • Consumer Education & Information to change behavior • Communications Plan • Who to notify • When to notify • How to notify • Create Focus Groups to receive consumer input • Time Differentiated Rate Schedules – offer choices • TOU, PTR, Direct Load Control, Other • Utility control or Consumer control • Security and Personally Identifiable Information(PII)
Focus – Improving Reliability and Resiliency • Reliability and Resiliency Initiatives (Automation) • Cyber Security • Substation Power Transformer w/Smart Grid monitoring • Distribution Transformer Monitoring • Integrated Distributed Generation • Communicating Distribution Automation equipment • SCADA Upgrades • Communicating Faulted Circuit Indicators • Trip Saver Cutouts • Integrated Volt/VAR Control
Focus – Expanding the use of Renewable Energy, Distributed Generation, and Alternative Technologies • “Preparing for the Future” Initiatives - (Complete) • Integrating customer owned Solar PV systems • Integrated Distributed Generation – Utility and Customer • “Preparing for the Future” Initiatives - (Future) • Integrating PHEV Load and Storage • 2 MW Battery Storage at each of our 5 substations • ???
Current and Emerging Technologies Ready Now: • Demand Response • DG & Renewable Resources • Distribution Automation • Metering – (Reliability and remote upgrade issues) • Meter Data Management Systems • Outage Management Systems • Field Installation Services • Business Process Change Management • Pay-as-you-go
Current and Emerging Technologies Good Improvement and Choices – will become better: • AMI Communications – (DA monitoring and control?) • DAN Communications • Customer Web Portal • In Home Display • ZigBee vs. WiFi • Storage – huge potential for reliability and DR benefits
Current and Emerging Technologies Future – Not yet ready for prime time: • Home Area Networks • Standards are slow to emerge • Smart Appliances
Leesburg’s DR Strategy To Date • Strategies • Conversation Voltage Reduction (CVR) • Integrated Distributed Generation - City Gensets (IDG) • Partnering with hospital and two Supermarkets (LRCR) • Results • Saved $1st MM in 14 months • Saved $2nd MM in 7 months and 3rd MM in 7 months CVR IDG LRCR • FY 2010 31.0 MW $591 K 35.2 MW $654 K 11 MW $222 K • FY 2011 24.6 MW $492 K 42.8 MW $861 K 15 MW $304 K
AMI Evaluation &Vendor Selection • Began with very comprehensive and detailed proposal • Selected top four proposals for final consideration • Weighted Score used to Rank final four vendors • Final four presented a 3 day AMI demonstration • Demonstration script and DA controllers • Major emphasis on demonstrating ability to deliver Distribution Functions • Secondary emphasis on gaining a better understanding of the technology and observing team interaction and problem solving
Business Case & Cash Flow • Desire project AMI elements to have good payback • DA equipment treated as Capital Improvements • Original AMI Business Case prepared in 2009 • First 2011 Project Cash Flow – Breakeven in year 19 • A dagger to the heart • Revised 2011 project Cash Flow – Breakeven in year 6 • Working to be cash positive in year one! • Customer Participation Required for Success!!!
Next Steps • Finalize Communications/Marketing Plan • Replicate successes of others • Finalize Rate and Rebate offerings • Share the savings • Revise business processes for operational benefits • One of the AMI elements • Revise business policies for operational benefits • Changing what we do as well as how we do it
Closing Thoughts to Consider • Attack your biggest issues – our needs are different • Focus on your Consumer - not the technology • Create a Vision and Goals - to drive your strategies • Prepare a Business Case – you may be surprised • Smart Grid entry points – start with what you have • AMI or Distribution Automation • Learn from others – Good, Bad, and Ugly • Replicate only the GOOD • Your business model will change – back office impacts • You must take action to compete!
Acknowledgement and Disclaimer • Acknowledgement: This material is based upon work supported by the Department of Energy under Award Number DE-OE-0000236. • Disclaimer: This report was prepared as an account of work sponsored by an agency of the United States Government. Neither the United States Government nor any agency thereof, nor any of their employees, makes any warranty, express or implied, or assumes any legal liability or responsibility for the accuracy, completeness, or usefulness of any information, apparatus, product, or process disclosed, or represents that its use would not infringe privately owned rights. Reference herein to any specific commercial product, process, or service by trade name, trademark, manufacturer, or otherwise does not necessarily constitute or imply its endorsement, recommendation, or favoring by the United States Government or any agency thereof. The views and opinions of authors expressed herein do not necessarily state or reflect those of the United States Government or any agency thereof.
Good luck, have fun, and… HANG ON TIGHT! Thank YOU paul.kalv@leesburgflorida.gov