ACTA-10-014R1 Smart Grid Communications Overview

1. ACTA-10-014R1 Smart Grid Communications Overview Trone Bishop Service Provider Representative (Verizon) September 9, 2010

2. What is the Smart Grid? According to the United States Department of Energy [1], a modern smart grid must: - Be able to heal itself - Motivate consumers to actively manage usage - Resist attack - Provide higher quality power - Accommodate all generation and storage options - Enable electricity markets to flourish - Run more efficiently - Enable intermittent power generation sources ACTA-10-014R1

3. Smart Grid Applications • Advanced metering infrastructure (AMI): Establish two-way communications between advanced meters and utility business systems. • Cyber security: Ensure the confidentiality, integrity and availability of the electronic information. • Demand response and consumer energy efficiency: Provide mechanisms and incentives for customers to cut energy use during times of peak demand. • Distribution grid management: Maximize the performance of feeders, transformers, and other components of distribution systems. • Electric transportation: Enable large-scale integration of plug-in electric vehicles. • Energy storage: Provide the means to store energy. • Network communications: Identify performance metrics and core operational requirements of various Smart Grid applications. • Wide-area situational awareness: Monitoring and display of power-system components over large geographic areas in near real time to optimize management of grid components and performance and respond to problems before disruptions arise. • [3] ACTA-10-014R1

4. U.S. Electric Power Transmission Grid [2] ACTA-10-014R1

5. Basic Power Grid Generation Transmission Distribution Customer Premises Substation HV to MV Step down transformer Power Plant MV to LV Transformer Meter HV lines Loads Coal 45% Natural Gas 23% Nuclear 20% Hydro 7% Other 5% 750, 500, 345, 230, and 138 kV 69, 26, 13 & 4kV 120 & 240V ACTA-10-014R1

6. Smart Grid Needs Secure Communications [3] ACTA-10-014R1

7. Smart Grid Needs Broadband • Nick Sinai (FCC) believes that electric utilities will need broadband to manage the Smart Grid.[4] • Advanced sensors, which sample the state of the power transmission system 30 times per second, will help grid operators prevent blackouts. Deployments of these sensors require the high speed and low latency of broadbandnetworks.[4] • Utilities will need more information about how the energy flows in the distribution grid.  Putting more broadband connected sensors in substations and in transformers can improve the quality and reliability of the power and help grid operators more efficiently deliver power. [4] • Broadband is also important in connecting smart meters.  Many utilities are using 3G cellular connections.  Utilities are looking at LTE and WiMax solutions for their wide area connectivity needs.  Advanced metering is one of many applications that a utility could run over a 4G wireless network. [4] • Broadband is also important to mobile workforces.  Utility crews need updated information about the state of the grid, especially with electricity flowing both ways in the distribution grid. [4] ACTA-10-014R1

8. Electric Utility Communications Architecture Control/Operations Centers Communications Networks Generation Transmission Distribution Customer Premises Power Plant Field Devices Field Devices Field Devices Meter Loads ACTA-10-014R1

9. No Single Broadband Solution • The Smart Grid will not use just one type of communications network.[4] • 2. There is not a single solution or a representative network for the Smart Grid.[4] • 3. There are over 3,000 electric utilities across the country, with different topographies, regulatory regimes, and legacy communications systems.[4] • 4. Today, U.S. electric utilities use a variety of communications networks, including wired and wireless, licensed and unlicensed, private and commercial, fixed and mobile, narrowband and broadband. [4] • 5. Utilities will use a wide variety of communications networks as they evolve the basic power grid into a Smart Grid.[4] ACTA-10-014R1

10. Electric Utility Communications Architecture Control/Operations Centers 3rd Party Services Communications Networks Distribution Access Point Regional Interconnection Wide Area Network Backhaul/WAN Public Networks Field Area Network Neighborhood Area Network Workforce Mobile Network Home Area Network Power Plant Energy Management System Grid Energy Resources Field Devices Field Devices Field Devices Field Devices Smart Meter Consumer Electric Products Generation Transmission Distribution Customer Premises [5] ACTA-10-014R1

11. Electric Utility Communications Architecture Control/Operations Centers 3rd Party Services Communications Networks Distribution Access Point Regional Interconnection Wide Area Network Backhaul/WAN Public Networks Field Area Network Neighborhood Area Network Workforce Mobile Network Home Area Network Power Plant Energy Management System Other Energy Resources Field Devices Field Devices Field Devices Field Devices Smart Meter Consumer Electric Products Generation Transmission Distribution Customer Premises [5] Potential application for Power Line Carrier technology * * Equipment connecting directly to the power grid using PLC or connecting directly to utility-owned wireline facilities does not fall under Part 68. ACTA-10-014R1

12. Is Part 68 Applicable to the Smart Grid? When electric utilities use wireline carrier networks for Smart Grid applications, will the equipment utilities connect to wireline carrier networks need to comply with 47 C.F.R. Part 68 of the FCC’s rules and regulations? Answer: Yes, under certain conditions specified in 47 C.F.R. Part 68. ACTA-10-014R1

13. When is Part 68 Applicable? Part 68 compliance is required when and if: (a) The equipment can be connected directly (i.e., it has a physical connection) to a wireline carrier network. (b) The equipment has certain FCC-regulated features. [6] ACTA-10-014R1

14. What are FCC-Regulated Features? Part 68 requires terminal equipment to provide equal access to common carriers. Telephones must be compatible with hearing aids. Part 68 places limits on equipment with automatic dialing capability. Part 68 places limits on automatic telephone dialing systems. Telephone facsimile machines must clearly mark identifying information on each transmitted message. If any of the requirements in 68.318 are applicable to the equipment, then the equipment needs to comply. [6] ACTA-10-014R1

15. Conclusions • Utilities will use a wide variety of broadband communications systems as they evolve the current U.S. power grid into a Smart Grid. [4] • 2. Smart Grid communications will use a variety of facilities, including Power Line Carrier (PLC), utility-owned wireless and wireline facilities, leased wireline facilities, and commercial wireless networks. [3][4] • Electric utilities using leased wireline carrier services, such as DS1, for Smart Grid applications must connect equipment that is approved according to Part 68. [6] • The FCC does not treat electric utilities as wireline carriers when they use PLC technology or their own wireline facilties for Smart Grid communications. Thus, TE connecting directly to the power grid using PLC or connecting directly to utility-owned wireline facilities does not fall under Part 68. • 5. Allowing consumers to connect any thermostat, any appliance, and any new device to their new smart meter -- as long as it doesn’t do harm to the smart grid -- is FCC’s vision for the future. [4] Whether they codify that vision remains to be seen. ACTA-10-014R1

16. Bibliography [1] National Energy Technology Laboratory, A Vision for the Modern Grid; United States Department of Energy. July 27, 2007. (pdf). [2] Federal Emergency Management Agency (FEMA); image of United States transmission grid. [3] National Institute of Standards and Technology, NIST Framework and Roadmap for Smart Grid Interoperability Standards, Release 1.0. [4] Sinai, Nick (FCC Energy and Environment Director); speech at Broadband Breakfast Club, Washington D.C., July 20, 2010. [5] Diagram based on Figure 16 of IEEE P2030 Smart Grid Architectural Reference Model.2030-10-0297-00-0015-ieee-scc21-p2030-draft-3-0.doc [6] 47 C.F.R. Part 68. ACTA-10-014R1