FACULTY: James Hoecker, Counsel to WIRES Matthew Gardner, Engineer, Transmission Planning & Marketing,

1. ELECTRIC TRANSMISSION 103: New Technologies and Grid ModernizationJUNE 4, 2009 2 P.M. 210 Cannon House Office Building FACULTY: James Hoecker, Counsel to WIRES Matthew Gardner, Engineer, Transmission Planning & Marketing, Dominion Virginia Power Katherine Hamilton, President, Gridwise Alliance Paul McCoy, President, Trans-Elect Development Brian Slocum, Director of Engineering, ITC Holdings Corporation John Ulliman, Vice President, American Superconductor Corp. Presented by WIRES - a national coalition of entities dedicated to investment in a strong, well-planned and environmentally beneficial high voltage electric transmission system in the US. (www.wiresgroup.com)

2. What We Learned In Transmission 101 • The transmission system is: • A massive, highly integrated machine • A basic component of a vibrant economy • Regional in operation • Impacted by many federal, state and local authorities • Essential to delivering remote clean energy resources

3. Evolving Transmission Grid—Evolving Issues • Before 1920 transmission was not an identifiable asset • By mid-century, transmission was being built to serve local needs and for reliability and cost control purposes; very little interstate grid existed • As larger generator plants located farther from load, transmission expanded, reducing what was needed to serve load • In the 1960s and 1970s, voltages increased, transmission helped reduce reserves, costs, and blackouts • Transmission integration increased bulk power transactions, market integration

4. Today’s National Grid • Key network infrastructure vital to the nation’s economy • A nationwide164,000-mile, highly-integrated network of transmission lines and control facilities, interconnecting over 750,000 MW of generating capacity to millions of customers in all regions, and 3000 utilities

5. “This is your father’s electric system–but it can’t stay that way for long” (Sue Tierney, 2008) • The “Grid” Is the Enabler Of New Technologies and System Innovation. • Primary Benefits of transmission: network reliability, lower costs of energy/capacity • Strategic Benefits: renewable resource development and integration, lower GHG emissions, fuel diversity, market power mitigation • Extreme Event Benefits: mitigate impact of multiple contingencies, reduce price volatility from outages • Secondary Benefits: economic development, new investment, tax base (LBNL, Public Interest Energy Research • But transmission Faces Challenges )

6. What We Learned In Transmission 102 • Today’s challenges to investment: • Planning • Cost recovery • Cost allocation • Siting

7. The Challenges Facing Transmission Investment • Aging and deteriorating infrastructure • More dispersed sources of generation • Wholesale competition among generators • Complex bulk power markets • Arrival of the digital economy • Electricity consumption doubled after 1980; consumer electronics increase

8. Basic Definitions • Alternating Current – “AC”. Magnitude of current varies as a function of time. Typical systems in the U.S. are AC. • Direct Current – magnitude of current is fixed. Some applications of high voltage direct current (HVDC) in U.S. and elsewhere. • Interconnection – a system of generators, loads, and transmission that are electrically synchronous.

9. Basic Definitions • How much is 1 MW? • 1 MW is one million watts. • 1 MW will power 10,000 one hundred watt light bulbs • 1 MW will power about 800 “average” homes in North America or about 250 “average” homes during the summer in Phoenix

10. Source: www.nerc.com Components of the Grid: Overview • The “grid” can be broken down in to four main components: Generation, Transmission, Distribution, and Load • This diagram is a basic overview, but does not truly illustrate the HIGHLY interconnected nature of the transmission system.

11. Components of the Grid: Transmission • Used to move power long distances from generators to load with low losses. • Highly interconnected for enhanced reliability • The “interstate system” for electricity • Traditionally built to enhance reliability for vertically integrated utilities. • Now a critical part of the electric markets

12. SMART GRID: HOW DOES TRANSMISSION FIT IN? Katherine Hamilton GridWise™ Alliance 12

13. Today’s Grid 13

14. Tomorrow’s Grid 14

15. Basic Transmission Concepts UBIQUITOUS TWO-WAY COMMUNICATION, DATA, AND CONTROL BETWEEN SUPPLY AND DEMAND SIDES EFFECTIVE OUTAGE PREVENTION, MANAGEMENT, AND RECOVERY OPTIMIZATION OF SYSTEM FOR EFFICIENCY AND FLEXIBILITY INTEGRATION AND DISPATCH OF RENEWABLE RESOURCES WITH STORAGE INTEROPERABILITY AND CYBER SECURITY WORK GROUP TECHNOLOGY GOALS 15

16. Key Policy Messages Legislative and Regulatory Ensuring effective spending of stimulus Embedding smart grid in all energy legislation Including smart grid as enabler in state and federal regulatory policies Conveying message of smart grid as a means to an end—not an end unto itself POLICYINITIATIVES 16

17. www.gridwise.org 17

18. SMART TECHNOLOGIES: An Over View of Smart Grid At The Transmission Level Brian Slocum ITC Holdings Corporation 18

19. The Smart Grid Defined Technology Two-way communication Advanced sensors Distributed computing Reliability Interconnectivity Renewable integration Distributed generation Efficiency Demand response Consumer savings Reduced emissions Common themes: FERC:“Grid advancements will apply digital technologies to the grid and enable real-time coordination of information from both generating plants and demand-side resources.” DOE:“A smarter grid applies technologies, tools, and techniques available now to bring knowledge to power – knowledge capable of making the grid work far more efficiently…” GE: “The Smart Grid is in essence the marriage of information technology and process-automation technology with our existing electrical networks.” IEEE:“The term ‘Smart Grid’ represents a vision for a digital upgrade of distribution and transmission grids both to optimize current operations and to open up new markets for alternative energy production.” Wikipedia: “A Smart Grid delivers electricity from suppliers to consumers using digital technology to save energy, reduce cost, and increase reliability.” • A precise definition of the Smart Grid remains elusive as organizations invest in the idea that the development and application of technology to the electrical grid has value today and in the future. 19

20. EISA & FERC Regulatory Goals FERC is granted authority to oversee development of new Smart Grid standards by the Energy Independence and Security Act of 2007 (EISA), not all of which apply to transmission. 20

21. Fundamental Areas for Implementation • Customers benefit from a smarter transmission system; the use of select Smart Grid technologies provides customers with • Increased reliability • Fewer interruptions to business • Improved customer satisfaction • Enhanced event analysis • Quicker response to events • Identification of corrective actions Three fundamental areas that ITC views as aligned with Smart Grid for transmission today: Communications Network: a robust communication network is fundamental to Smart Grid deployment • System uses a secure broadband logical network • Outsourcing leverages the network and expertise of AT&T Real-time Monitoring and Control: Sensors and intelligent devices enable enhanced real-time observation and rapid analysis and response to system disturbances • Substation security enhancements • Transmission asset health monitoring Event Analysis: Enhanced monitoring and data analytics provide robust analysis of system events • Advanced system fault monitoring • Data analysis • GPS time-stamped data 21

22. Smart Grid Today ITC operates its widely distributed assets via an internet based broadband communication network 22

23. Grid Intelligence • Field intelligence enhances system operations • In separating transmission assets from the incumbent utilities, ITC installed new remote terminal units (RTUs) and intelligent electronic devices (IEDs) to provide SCADA data to the Transmission Management System (TMS) • Dynamic displays provide regional visualization • Displays have been configured to provide TSCs with information related to system integrity with regard to established operating limits • Advanced tools help mitigate instability and secure system integrity • State Estimator • Approximates system status • Runs once per minute • Contingency Analysis • Tests system integrity by simulating failure of individual grid components • Provides results of contingencies and their impact, in order of severity for both voltage and thermal limits • These analytical tools alert TSCs to system instabilities that might otherwise go unobserved 23

24. Critical Equipment Monitoring • Intelligent electronic devices (IEDs) and online monitoring of equipment make it possible to take preventive measures based on changes in key indicators. • Relays and other IEDs are utilized in the field • Where once only general status alarms were provided to Transmission System Coordinators, IEDs allow intelligence to be distributed beyond the Control Room and RTU and into the device itself • IEDs are able to self diagnose their condition and report back to the Control Room, virtually eliminating the need for field calibration and inspection to ensure the device will operate reliably when needed • In the case of relays, when a fault is detected, the relay sends a signal directly to the breaker to trip with no delay • The Transformer Monitoring Project (T-Medic) provides protection for transformers by analyzing system conditions and sending alerts to subject-matter experts for further analysis • Dissolved gas in oil analysis • Power factor bushing monitor • Full range of temperature monitoring • Current monitoring of fans and pumps • Active cooling control as primary control system • Traditional fan and pump (as back-up) 24

25. Smart Grid Hurdles Several hurdles must be overcome to reach this future. • Technology • Many of the technologies needed to reach the full promise of the Smart Grid are only in the early stages of development or are not yet commercialized • Policy • The FERC has issued a preliminary policy, but there are various stakeholders that must weigh in • States’ utility commissions will make the decisions about what is appropriate at the retail level • Interconnectivity and standardization • Various devices and protocols are currently being developed; ensuring interoperability across devices will be key • Rate recovery • Depending on the type of entity, FERC, state regulators, or both will determine the degree to which investments in Smart Grid technologies are recoverable Technology is not a panacea for an aging infrastructure (i.e., the Smart Grid does not replace the “real grid”). • The real grid is the hard assets that make up the traditional infrastructure (i.e., wires, substations) • The Smart Grid is the application of advanced technologies that enhance the operation of the real grid 25

26. SYNCHROPHASORS: BUILDING BLOCKS OF THE DIGITAL SYSTEM Dr. Matthew Gardner Dominion Virginia Power

27. Background: What is a SynchroPhasor? • Definition: SynchroPhasors are precisely time-synchronized, high resolution measurements of the electrical waves on the electric grid.

28. Why SynchroPhasors?A field of “firsts…” • SynchroPhasor technology provides observability of previously unobservable power system health metrics (namely phase angle) • High-resolution nature of synchrophasor data provides near real-time information: • Faster reaction to developing power grid issues • Clearer anticipation of incipient problems allowing for preemptive actions • Development of faster controls • SynchroPhasors make use of GPS satellites for precise time tracking: • Electric grid behavior over a wide area can be tracked in a synchronized fashion • SynchroPhasors are the backbone of the “smart grid” at the transmission level

29. SynchroPhasor Measurement Points: Where are they? • About 40 Phasor Measurement Units (PMUs) online in Eastern Interconnection right now • North American SynchroPhasor Initiative (NASPI) facilitating industry-wide collaboration including: • Utilities • Regulators • Equipment Manufacturers • Research/Universities • Technology Consultants • DOE stimulus and non-stimulus grants

30. Industry Challenges in the Adoption of SynchroPhasor Technology • Communications • Synchrophasor measurements typically taken continuously and output 30 to 60 times per second • Conventional technology measurements taken about once every 4 seconds • Higher bandwidth communications obviated • Data Processing and Concentration • No commercially available standard tools • Data concentration, processing, and application are R&D grade • Standards • IEEE and IEC standards not unified • NIST standards still developing • NERC compliance (CIP and other developing standards) • Operator Training and Familiarity

31. SynchroPhasor Example:Florida Blackout of February 26, 2008

32. “To measure is to know … if you cannot measure it, you cannot improve it.”--Lord Kelvin

33. CONDUCTOR TECHNOLOGIES AND THERMAL MONITORING John Ulliman American Superconductive Corporation

34. Renewable Generation NotLocated Near Population Centers

35. Current Electric Generation Sites Are Located Near Population Centers

36. Today’s Key Energy Challenge: Carrying 100’s of Gigawatts ofGreen Power to Market Wind, solar and electric utility industries have considered many transmission options

37. Current Transmission System Miles of Transmission lines Source: NERC - Transmission Availability Data System 2008 Automatic Outage Metrics and Data Report, May 22 2009

38. Long Distance Transmission With Conventional Lines Assumes adequate reactive compensation is provided along the line length to facilitate power transfer

39. Advanced Conductors Can Improve Transfer Capability Aluminum Conductor CompositeCore ACCC Aluminum Conductor Steel Reinforced ACSR • 93ºC • ~150ºC • Steel 90ºC ~200ºC High tensile carbon fibers strand in an epoxy matrix + special protective layer • Design Continuous Operating Temperature • Emergency Operation Temperature • Strength Bearing Material Increase power transfer capability up to 40% on the same ROW increases efficiency by 30%

40. Long Distance Transmission Using ACCC Assumes adequate reactive compensation is provided along the line length to facilitate power transfer

41. Superconductor “Electricity Pipeline”

42. Superconductor Power Cables Have Operated in the U.S. Grid for Several Years… Transmission superconductor cable system energized in Long Island Power Authority’s grid in 2008. Capable of carrying 574 megawatts. Can be scaled to many gigawatts.

43. Line Losses Become Extremely Important Over Long Distances 345kV Overhead Lines Note: 765kV overhead line losses based on a variety of two and three 2400MVA SIL line designs using 4-, 6-, and 8-conductor bundles Losses for Superconductor Electricity Pipeline based on 2% DC converter losses and 35 kW/mile refrigeration losses.

44. Notional Overlay Of Superconductor Electricity Pipeline Transporting Renewable To The Nation Superconductor Electricity Pipeline AC/DC Converter Stations

45. IMPLICATIONS AND OPERATIONS OF HIGH VOLTAGE DIRECT CURRENT SYSTEMS; “FACTS” AND OTHER INNOVATIONS Paul McCoy Trans-Elect Development

46. HVDC Technology– What IS it? The transmission of electricity using High Voltage Direct Current (HVDC). Typical application utilizes special substations to convert AC current to DC current for transmission. This is clearly an “advanced technology” and a “smart grid” application at the transmission voltage level

47. When Might HVDC Be Considered? • Long distances (350+ miles) • Under water • Cross-Sound cable • Neptune • Chesapeake crossing of the MAPP Project • Future offshore wind • Connecting different HVAC networks • Stabilizing the HVAC network • Avoiding the need for certain HVAC network reinforcement

48. North America HVDC

49. Joint Coordinated Plan 49

50. Comparative Costs & Losses (by ABB)(6,000 MW capacity @ 75% utilization)