EI June13

The Association of Electrical Equipment and Medical Imaging Manufacturers nwww.nema.orgn June 2013 n Vol. 18 No.
Smart Grid The Year of Customer Engagement
n Engaging the Consumer
INSIDE
n Technology/Applications n Renewables and the Grid n Emerging Issues n Economic Benefits
CONTENTS
FEATURES
Engaging the Consumer
Has your view of the Smart Grid changed?.............................................................................................11 The Connected Home and the Smart GridIcing on the Comfort Cake....................................................12 Behavioral Demand Side Management Programs Offer Utilities Means to Engage Customers ...................15
Technology / SG Applications
Responding to Dynamic Electricity Pricing Signals as Demand Response..................................................16 Integrated Volt/VAR Control Optimizes Smart Grid Strategies.................................................................18 Grid Therapy for Tension and Congestion ..............................................................................................19 Smart Meters Weather the Storm .........................................................................................................20 Achieving Customer Engagement through Smart Thermostats and Peak Load Management Controls.......23
Renewables and the Grid

Smart Grids Maximize Renewable Energy Use........................................................................................24 More Sustainable Future Propelled by Robust Services Organizations.....................................................26 Cost-Effective Electric Storage Harnesses the Wind.................................................................................28 Microgrids Integrate Reliability and Renewables ..................................................................................29 MicrogridsUpstarting Our Energy Future...........................................................................................30 City of BataviaA Case Study in Self-Healing .......................................................................................32
Emerging Issues
Big DataReshaping the Way Utilities Establish Grid Metrics ...............................................................34 How to Achieve Interoperable Products Based on Emerging Smart Grid Standards...................................36 Interteks Role in Moving the World toward a Smarter Grid.....................................................................39 Securing the Smart Grid ......................................................................................................................41 Overview of EEI-NEMA Cybersecurity Supply Chain Integrity Collaboration Efforts ...................................43 Improving Grid Resiliency through Cybersecurity ..................................................................................44 What Do Consumers Expect from the Grid?............................................................................................45 SGIP 2.0 Exceeds Expectations..............................................................................................................46
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electroindustry
electroindustry (ISSN 1066-2464) is published monthly by NEMA, the Association of Electrical Equipment and Medical Imaging Manufacturers, 1300 N. 17th Street, Suite 1752, Rosslyn, VA 22209; 703.841.3200. FAX: 703.841.5900. Periodicals postage paid at Rosslyn, VA, and York, PA, and additional mailing offices. POSTMASTER: Send address changes to NEMA, 1300 N. 17th Street, Suite 1752, Rosslyn, VA 22209. The opinions or views expressed in electroindustry do not necessarily reflect the positions of NEMA or any of its subdivisions. Subscribe to electroindustry at www.nema.org/subscribe2ei Contact us at comm@nema.org Follow NEMA: www.nema.org/facebook, blog.nema.org, podcast.nema.org, twitter.com/NEMAupdates, www.youtube.com/NEMAvue, www.nema.org/linkedin
Publisher | Paul Molitor Managing Editor / Editor in Chief | Pat Walsh Contributing Editors | Chrissy L. S. George William E. Green III Economic Spotlight | Timothy Gill Codes & Standardization | Vince Baclawski Government Relations Update | Kyle Pitsor Art Director | Jennifer Tillmann Media Sales Team Leader | Stephanie Bunsick
Newsmakers
NOTES
NEMA Officers........................................................................................................................................................................................3 Comments from the C-Suite..................................................................................................................................................................3 View from the Top..................................................................................................................................................................................4 View from the Hill..................................................................................................................................................................................6 View from the Industry..........................................................................................................................................................................7 View from the State...............................................................................................................................................................................8 Learn More...........................................................................................................................................................................................60
Bill Beile Awarded CANENA Chairman Gavel
48 49 49
DEPARTMENTS
Government Relations Update................................................................................................................9 Federal and State Regulations Update..................................................................................................................................................9 NEMA Highlights Openness as Goal for U.S.-EU Trade Talks...............................................................................................................10 Working Group on Conflict Minerals to Meet June 25.......................................................................................................................10 NEMA Testifies on Trade Facilitation and Trade Enforcement Act........................................................................................................10 Electroindustry News...........................................................................................................................47 NEMA Hosts First Meeting of US TAG to IEC TC120, Electrical Energy Storage Systems.....................................................................47 NEMA to Convene Members for Recycling Summit...........................................................................................................................47 Kerry McManama of Underwriters Laboratory Retires.......................................................................................................................48 Bill Beile Awarded CANENA Chairman Gavel......................................................................................................................................48 Lutron Founders Honored ...................................................................................................................................................................49 Jim Pauley Inducted into Hall of Distinction.......................................................................................................................................49 Listen Up!.............................................................................................................................................................................................50 EVSE-Ready and Smart GridWhat Does It All Mean?...................................................................................................................51 Code Actions/Standardization Trends....................................................................................................52 North American Fast-Track Harmonization for EVSE Successfully Concluded...................................................................................52 Smart MetersA Consumers Connection to the Smart Grid and Beyond......................................................................................53 Jack Lyons Takes the Reins as Northeast Field Representative ..........................................................................................................54 Nationally Recognized Testing Laboratory Program Undergoes Improvement ................................................................................55 NEMA SSL 7A Phase Cut Dimming for Solid State Lighting: Basic Compatibility..............................................................................56 ANSI Approves Two Safety-Related Distribution Equipment Standards............................................................................................56 International Roundup........................................................................................................................57 U.S.Mexico City Smart Grid Business Conference Advances Significant Smart Grid Market .........................................................57 Medical Technology Industry Calls for Regulatory Convergence in U.S.EU Trade Deal....................................................................58 CANENA 2014 to Convene in Washington, D.C. .................................................................................................................................58 Economic Spotlight..............................................................................................................................59 Smart Grid Development Has Economic Benefits, Too.......................................................................................................................59
Lutron founders Joel and Ruth Spira Honored
Jim Pauley Inducted into Hall of Distinction
ECO BOX
NEMA electroindustry text and cover pages are printed using SFI certified Anthem paper using soy ink. SFI certified products come from North American forests managed to rigorous environmental standards. SFI standards conserve biodiversity and protect soil and water quality, as well as wildlife habitats. SFI forests are audited by independent experts to ensure proper adherence to the SFI Standard. SFI participants also plant more than 650 million trees each year to keep these forests thriving.
Officers
Chairman John Selldorff President & CEO Legrand North America First Vice Chairman Christopher Curtis President & CEO Schneider Electric Second Vice Chairman Thomas S. Gross Vice Chairman & COO Eaton Corporation Treasurer Don Hendler President & CEO Leviton Manufacturing Co., Inc. Immediate Past Chairman David J. FitzGibbon Vice Chairman & CEO ILSCO Corporation President & CEO Evan R. Gaddis Secretary Clark R. Silcox
COMMENTS FROM THE C-SUITE

The first commercial cell phone was sold in 1983, yet just 30 years later I can read this magazine on my smart phone. However, if Thomas Edison (who was born 166 years ago) were to look at our grid today, he wouldnt have a problem explaining how it functions because little has changed. But that wont be the case for much longer, because the electrical industry is on the cusp of a technological breakthrough comparable to moving from rotary to digital phones. The self-healing Smart Grid will mitigate future power outages by re-routing electricity to minimize the scope of outages and enable faster restoration of services. The simplest definition of Smart Grid is an electric grid capable of managing two-way power flows and communications. Data are constantly flowing in real-time, helping grid operators optimize efficiency and decrease outages. When the Smart Grid interfaces with smart technologies in a building, the benefits are limitless: Demand response systems allow utilities to remotely adjust power consumption, reducing the need for additional power generation capacity. Smart meters empower consumers to make energy-efficient decisions. Appliance manufacturers are already making dishwashers, refrigerators, and clothes dryers with smart chips that allow users to operate them when electricity is cheapest. Electric vehicles are providing backup power and grid-balancing services in pilot projects. Smart inverters are helping utilities integrate solar power from residential and commercial rooftops. Microgrids are keeping critical hospital and first responder systems powered during natural disasters like Superstorm Sandy. All of this is made possible by advances in smart meters, microgrids, battery storage, and the vast array of smart technologies being developed by the electroindustry. Moreover, broader deployment of Smart Grid technologies will enable utilities to protect the electric grid from the growing risk of a cyberattack. This months issue of electroindustry magazine focuses on the Smart Grid, and I invite you to use your imagination when thinking about the possibilities. Just 10 years ago I couldnt have imagined turning down the air conditioning with my smart phone; what might the next 10 years bring us? ei
John Selldorff, President and CEO, Legrand North America

NEMA electroindustry June 2013
Views from the Top

Our Industry Needs to Work Together to Build a Better Future for Electricity Users
John W. Estey, Executive Chairman, S&C Electric Company Weve come to expect reliable electricity. Every time we experience an outage, were reminded of all our day-to-day activities that depend on power from the grid. Its woven into the very fabric of our economy. For the U.S. to stay competitive especially in an increasingly contentious global financial environmentits essential that we invest in this key pillar that keeps our economy running. That pillar is weakening, year after year, as the electric grid continues to age. For example, the Galvin Initiative has noted that the average age of a substation transformer in the U.S. today is around 42 yearsyet those transformers were only designed for a service life of 30 to 40 years. As the grid ages, the risk to our economy rises. A 2005 study by the Lawrence Berkeley National Laboratory estimated that power outages cost the nation almost $80 billion annually. According to a recent report by the American Society of Civil Engineers, national investment in local distribution systems peaked in 2006 and has since declined to less than the level observed in 1991. Happily, the aging of the grid presents a real opportunity to replace the old infrastructurenot with the same hundred-year-old technology, but with equipment employing technologies that make the grid smarter and provide real, quantifiable benefits to consumers. So why isnt this taking place in a widespread fashion? The answer lies in the regulatory regime and the associated financial models for electric utilities that have been in place for decades and thus are not relevant to todays technologies. Consider conservation voltage reduction, a technique that flattens and reduces system voltage along the line. It cuts consumers electric bills without the need for any lifestyle changes, but also lowers utility revenue. So why would a utility invest in such a technology if theres no way to earn a return on its investment? Similarly, why would a utility embrace distributed generation if it means lower revenue, especially when its still obligated to operate and maintain an expensive delivery system to provide backup when the distributed generation isnt producing? The regulatory structure needs to change to accommodate these new technologies. annualized investment in distribution automation of only $60,000 could save those users more than $300,000 per year in outage costs. Thats an impressive return on investment, but it isnt even considered in most of todays regulatory decisions, especially those involving investor-owned utilities. It is not sufficient to make investment decisions based solely on utility costs and benefits. We need to consider the bigger picture and move from the traditional least-cost ratemaking framework to one that considers overall value by including consumer benefits. If we dont, the solution will be seriously suboptimal. The challenge we face is not how to make our grids smarter, or even the cost of doing so, but rather how to get the new technologies into widespread use in a smarter grid that delivers important benefits for everyone. To get us moving aggressively in that direction, we, as an industry, need to get to work informing policymakers, regulators, and utility executives and help them address the sadly out-of-date regulatory model. In doing so, it is important to align the interests of electric utilities with those of electricity consumers. NEMA members, electric utilities, and electricity consumers must work together to craft a system that is fair and provides the right incentives and rewards for implementing the system of the future. Yes, doing so will boost sales for NEMAs members. But its also a responsibility we owe to our communities whose standard of life, employment prospects, and general well-being depend on a smart and reliable electrical delivery infrastructure. ei Salman K. Gill, Manager Strategic Planning, contributed to this article.
Consider the advantages of greater reliability, which can slash the economic costs of outages.
The revamped regulatory regime also needs to take into account the significant benefits a smarter grid delivers to electricity users. Consider the advantages of greater reliability, which can slash the economic costs of outages. The latest statistics from the IEEE Distribution Reliability Committee show that the average U.S. utility customer experiences 1.29 outages and suffers 143 minutes of power interruptions annually, numbers that do not compare favorably with other industrial countries. For a typical feeder serving 2,000 customerswith a mix of 90 percent residential users and 10 percent commercial and industrial usersan
Views from the Top

Demand Response: The Smart Grids Killer App
Chris Curtis, President & CEO, Schneider Electric As key suppliers to the utility industry, we see firsthand the transformation happening in the relationships between utilities and electricity consumers. For the first time, utilities are being pushed to adapt to a more customer-centric modeland in many ways, the Smart Grid is driving this shift. The Smart Grid puts more power in the hands of the energy consumer, allowing them to have more control over their energy use and costs. This results in utilities and ratepayers having to interact in ways that they never have before. One example of this new type of interaction enabled by the Smart Grid is demand response (DR). In 2010 FERC Chairman Jon Wellinghoff famously called DR the killer app of the Smart Grid. Given how Ive seen it evolve over the past three years, I have to agree that DR has an outsized potential to have a lasting impact on the ways we use energy, and weve only seen the tip of the iceberg. In fact, its been forecasted that over the next 20 years, 50 percent of all carbon emissions reductions will result from the improved efficiency that DR enables. What is DR? DR has transformed electrical power from what was traditionally a one-way street of communications and energy distribution into a bidirectional, twoway street that gives energy consumers greater control of their electricity usage and costs. In concept, it works by offering direct financial incentives to consumers for their willingness to lower their energy consumption briefly or shift usage to another period of timeusually one in which the electrical grid experiences lower overall demandbased on signals from the grid. The grid operator provides compensation either in the form of payments or a variable power pricing system that lowers the total cost of energy. This enables electricity consumersmany times large manufacturers or commercial buildingsto adjust their energy consumption to reduce costs and help maintain grid stability. As more renewable energy sources and electric vehicles (EVs) integrate into the grid, they add demand. DR is critical to helping manage these additional grid stressors and also take advantage of EV storage and recharging devices. locate trouble spots or provide the data to customers to alert them to predicted spot price increases proactively. DR 2.0 offers significant opportunities for the Smart Grid, as it is predicted to be faster, less expensive, and more targeted. Additionally, this next iteration of demand response will enable ratepayers to not only curtail usage, but also increase on-site output of electricity to meet increasing demand and help utilities maintain grid stability. Enabling a Smarter Grid To fully activate the benefits of a Smart Grid, businesses and cities must begin using the intelligent energy technologies available to them today, in turn evolving from passive to active consumers of energy. This includes utilizing DR to its fullest extent, and our industry plays an important role in educating utilities and consumers on this opportunity. Technologies like DR are available today to gain insight into available energy options, increase situational energy awareness, and enable consumers to capitalize on energy opportunities. Though there have been numerous federal rulings and legislation to move DR forward, these progressive milestones mean nothing unless utilities, consumers, and governments have the willingness to participate and know how to implement the right technologies. As an industry, we have to focus on influencing and informing higher-level decision makers to drive productivity with energy assets. We need to help our customers take energy out of the boiler room and into the board room. ei
DRgives energy consumers greater control.

By participating in DR activities such as modifying, curtailing, limiting, or postponing electricity usage when rates are high, manufacturers, commercial buildings, and other consumers sell their unused power back to the grid, creating significant new revenue streams for themselves, saving money on energy costs and contributing to the efficient flow of energy across the entire system. DR 2.0 DR is continuing to evolve. Its next generation, often referred to as DR 2.0, will include additional real-time automation capabilities that will allow building management systems to communicate in real time with the utility or DR broker. On the grid side, utilities will be able to use similar models to monitor overall health and power costs. They can then use the wealth of data that is created to
View from the Hill

Knocking Down Barriers with Cybersecurity
Throughout the course of this year, hackers working for Chinese government intelligence agencies will steal an estimated $400 billion in trade secrets and intellectual property from American companies. These are the ideas and innovation that drive our economy and hold the potential to create thousands of manufacturing jobs innovation and ideas that would have helped put Detroit and other industrial cities back to work. Unfortunately, these stolen trade secrets are now creating jobs in China instead of here at home. American ingenuity is systematically being stolen, repackaged, and sold on the international market to compete against the very companies from which they were stolen. And the thieves are getting away with it. The United States has always been, and continues to be, a leader in manufacturing innovation. American manufacturers have long served as a model of innovation to the world, creating new and more efficient products and processesnot Michael J. Mike Rogers (R-MI), Chairman of the Permanent Select Committee on Intelligence because the government mandated them but because consumers demand the latest and best technologies. Unfortunately, our economy is already struggling to maintain strong growth and create a steady stream of new jobs. Once the lifeblood of our country, manufacturing is particularly hard hit, leaving abandoned factories, foreclosed housing communities, and full lines at food banks. We would like to tell you that this is a new phenomenon, but it is not. While there are certainly several factors that can be attributed to the decrease in American manufacturingsome of which, like energy costs, are actually showing signs of improvement pervasive cyber theft persists unchecked. Beijing is waging a massive trade war on the U.S. and urgent action is required to stem the bleeding of American trade secrets through economic cyber espionage. Beijings continued theft of sensitive economic information is a threat to our national security, hurts American businesses and workers, and causes incalculable harm to the global economy. Both chambers of Congress and the White House must work to pass common sense legislation to give American businesses the tools to protect their systems. My Cyber Intelligence Sharing and Protection Act legislation, which passed the House floor in April with a strong bipartisan vote of 288 to 127, would knock down the many barriers that prevent American companies from working together to deal with significant foreign cyber threats. This important bill permits the private sector to expand its own cyber defense efforts and to employ classified information to protect systems and networks. This legislation will help create a more robust cybersecurity marketplace with expanded service offerings. By allowing the government to do what it does bestcollect intelligence overseas about advanced foreign cyber threatswe can empower our manufacturers to do what they do best innovate. If we can knock down the barriers that impede cooperation between the private sector and the government on these dangerous cyber threats, we can work together to keep that $400 billion here at home, protect our infrastructure, and give our economy a much-needed shot in the arm. ei
NEMA Weighs In on Cybersecurity Executive Order

Since President Obamas Executive Order (EO) Improving Critical Infrastructure Cybersecurity was released in February 2013, NEMA has provided comments about its implementation. As a mandatory federal cybersecurity program looks less and less politically feasible, the administration has moved toward establishing a voluntary program that would incent private sector participants to adopt a federally recognized cybersecurity framework for critical infrastructure. NEMA commented on the development of the framework (www.nema.org/NISTRFI-Cybersecurity-Framework), which according to the EO shall include a set of standards, methodologies, procedures, and processes that align policy, business, and technological approaches to address cyber risks. NEMA provided further comments on the types of incentives (www.nema.org/ NIST-Cyber-Incentives-NOI ) that would encourage private sector entities to participate in such a voluntary program. The framework is due for completion by February 2014. ei Jim Creevy, Director of Government Relations | jim.creevy@nema.org
View from the Industry

Seeing Your Lifes Work through a Smart Grid Lens
If you spend a valuable part of your life participating in Smart Grid activities that are abstract, frustrating, and time consuming, take a step back and see your efforts through a Smart Grid lens. When I get home from a trip involving interoperability or grid modernization, I (try) to leave work behind and slip into the role of husband and dad of six-year old twin girls. Still, it comes up: What did you do on your trip, Daddy? Its a challenge to explain work that takes up days, months, and years to family, neighbors, or even co-workers. In 2005, the Department of Energy gathered a diverse group to envision a modern grid. There were so many potential technologies, innovations, and points of view that complexity interfered with vision at every turn. The group solved this problem by changing the question from What is a modern grid? to How will we recognize a modern grid as it emerges? While you may have had great success enthralling your significant other with tales of NAESB REQ 21, Ive found better luck translating that into principal characteristics: a grid thats getting smarter; empowers consumers; accommodates all sources of generation and storage; enables new products, services, and markets; increases power quality for our connected economy; optimizes asset use and operates efficiently; anticipates and responds to Chris Irwin, Smart Grid Standards and Interoperability Coordinator, Office of Electricity Delivery and Energy Reliability, U.S. Department of Energy disturbances; and operates resiliently against attack and natural disaster. Has my work empowered consumers with greater access to information or provided them with more options or greater control? The Green Button Initiative is an obvious example that it does. Smart Energy Profile 2.0 expands options and control. And OASIS WS Calendar, OASIS eMIX, and Open ADR all widen options at multiple points in the grid. Various physical layer standards, such as IEEE 1901, are relevant too. They all lead to new products, services, and market opportunities. Information access and control cant advance without commensurate advances in privacy and security. Can the grid better accommodate generation and storage options because of my work? The flexibility that comes with integrating wind and solar expands whats possible for all resources. IEEE 1547 in particular benefits distributed and renewable resources, but the ability to call on those resources for either control or market participation is just as essential. Has my work made new products, services, and markets possible? Work doesnt have to lead to innovation to be relevant. The rise of analytics is a testament to increasing standardization of data and data exchange protocols. Rigor from a semantic standpoint allows the meaning of information to remain consistent. New products are possible because data moves faster. Have hours locked in rooms with good company but bad coffee led to increased power quality that a 24/7/365 economy needs? Power quality isnt just about keeping it at 60Hz and 240V. Reactive power controls need better sensor data, higher resolution, and cost-effective high-speed communications links. Even more relevant to power quality is the ability to identify equipment issues before they ever affect power quality. Can the grid make greater use of controls and components through my work, and thus reduce energy use, cost, or effort? The cost to produce and deliver energy will increase over time, and efficiency is the word of the day from the home to the intertie. Volt/VAR controls make distribution systems more efficient, and dynamic line ratings increase the carrying capacity of transmission lines and increase the efficiency of the system. Ambient and line temperature data is essential in one example, and data from the meter data management system and distribution substation have to blend easily for the other to be optimal. Has my work led to increasing resilience to attack and natural disaster? This is the ultimate goal of all those seemingly endless discussions on encryption alternatives, data structures that enable logging and audit trails, and systemto-system coexistence mechanisms. A thorough, systematic approach, as illustrated in the NISTR 7628 cybersecurity report, is what keeps the grid up when others wish it were down, or when weather and natural disasters knock parts of it down. ei Mr. Irwin represents DOE in the Smart Grid Interoperability Panel, and manages several projects under the Smart Grid Investment Grant program.
View from the States

Partnership, Collaboration Key to Addressing Cybersecurity State Regulatory Perspective
Philip Jones, President, National Association of Regulatory Utility Commissioners (NARUC) Commissioner, Washington Utilities and Transportation Commission Under current law, FERC approves, rejects, or returns with recommendations for revision proposed standards developed by the North American Electric Reliability Corporation (NERC). This process puts those who know their system bestthe companies themselvesin charge of putting the standards together, and gives the federal government an opportunity to review and revise. Any congressional cybersecurity legislation should retain this system. We have worked closely with Congressman Mike Rogers, chair of the House Intelligence Committee. His legislation marks a strong starting point in recognizing that the federal government will not have all the answers. The electric utility sector should rest easy. The existing process is a good, transparent way of developing standards for vulnerabilities on the nations electric grid, but it may not be enough to handle dynamic cyber threats. These threats have the exact opposite characteristics of the FERC-NERC process in that they are hidden, dormant, fast-acting, and do not care about audits or transparency. The industry and the federal government must find better ways to communicate and share information. Federal intelligence agencies have the resources, capabilities, and personnel to keep tabs on those who are trying to wreak havoc with the nations infrastructure. The federal government should address imminent threats to our electric distribution system quickly. In terms of vulnerabilities, however, the companies who own the distribution networks should know them best. Utilities and states should take the lead in securing less-pressing vulnerabilities State utility regulators deal with a broad range of threats every day. Aging infrastructure, required investments on pipelines, cleaner and more efficient power plants, transmission, and Smart Grid technology raise financial and economic risks. Uncertainty over the direction of energy policy in the U.S. creates political risk. They all have one common elementthe need to work together, either between different levels of government or public/ private partnerships to keep the lights on and the rates affordable. Under this backdrop, state utility regulators are addressing the issue of cybersecurity. Through workshops, events, primers, and much more, NARUC and state regulators are educating ourselves, asking tough questions, and working as closely as possible with federal counterparts to ensure that the nations regulated utilities are shoring themselves up against a potential cyberattack. Thankfully, the electric utility industry is already well underway to protect itself. The industry is subject to mandatory cybersecurity standards through North American Electric Reliability Corporation Critical Infrastructure Protection standards, approved by the Federal Energy Regulatory Commission (FERC). Whether this process should be replicated for other utility industries is a decision pending before Congress, but we believe the existing system for the electric industry works reasonably well. However, we recognize the nature and frequency of threats are increasing. on local systems. The needs of a utility in the states of Washington and New York, for example, are likely far different from a utility in Missouri. State utility regulators understand what is at stake, and through NARUC and other resources, we are asking key questions of our regulated utilities, interacting with federal agencies, and building greater awareness of the situation. Some have asked why regulators are so active on this topic, and that shouldnt they await federal action? The answer is simple: We cant wait. We are supportive of the efforts of Chairman Rogers and other leaders in the House and Senate to enact cyber legislation, but whether Congress can agree on a plan this year or next is unknown. Therefore we must be proactive at the state and local levels, working with utilities and infrastructure owners. We may not be software engineers or IT experts, but we understand what is at stake. We know well-placed questions will prompt deliberated responses. If utility consumers are paying for cyber protections, we must be confident utilities have fully vetted plans that have been approved by their boards of directors. For state regulators, cybersecurity is a new kind of risk. It is constantly evolving and requires immediate action when we know of imminent breaches to the system. We stand ready to work with federal government agencies and those utilities we regulate so we can protect our infrastructure, and, in doing so, our countrys economic vitality. ei
Government Relations Update

Federal and State Regulations Update
By the end of the first quarter of 2013, nearly 20 significant regulatory actions were well underway. In January, NEMA replied to the third draft of version one of the new ENERGY STAR Lamps Specification. A fourth draft was published for comment just before Light Fair International 2013. It received fewer comments because of successfully negotiated changes to draft three, NEMA advocacy, and NEMA member comments and discussions with the Environmental Protection Agency. Meanwhile in the Department of Energy (DOE), rulemaking milestone documents were published and public meetings were held for commercial and industrial pumps, ceiling fans and light kits, furnace fans, commercial and industrial fans and blowers, residential water heaters, battery chargers and external power supplies, general service fluorescent lamps and incandescent reflector lamps, high intensity discharge lamps, and distribution transformers. The first rulemakings on pumps, ceiling fans, furnace fans, fans and blowers, and residential water heaters involve NEMA members tangentially as component suppliers. NEMA monitored discussions for potential impacts. The main concern was what DOE terms extended product regulation, in which all components typically supplied with an end-use product from the final manufacturer end up being tested asdelivered for systems-level efficiency. While NEMA is a strong proponent of systems-level efficiency programs, DOEs point-of-sale regulatory reporting and enforcement models lack flexibility and place the onus on modeling and testing of final configurations. Some NEMA component products are already regulated, and thus should be protected; others are not, and might become regulated by association. NEMA continues to monitor these effects. For battery chargers and external power supplies, DOE issued a request for information seeking feedback from industries that had already made inroads to meeting California Energy Commission regulations for residential product battery chargers. DOE asked for information on technical feasibility and cost. Since most NEMA members are involved in commercial markets, we are participating with joint-trade association working groups to develop comments for positions and concerns. The primary concerns are the continued delay in releasing the federal standards and the impacts of delayed federal preemption of California regulations. The NEMA Lamp Section developed lengthy comments to the DOEs Technical Support Documents for general service fluorescent lamps and incandescent reflector lamps (GSFLIRL) and high intensity discharge lamps. GSFL-IRL rulemaking is proceeding despite strong industry objections. The current rule has only gone into effect and its impact cannot yet be judged, and minor efficiency gains remain to be realized for products that have already been through the process multiple times. The Federal Appliance Standards and Rulemaking Advisory Committee (ASRAC) met in February to discuss opportunities to improve and accelerate the DOE regulatory process. NEMA is a member of this committee. ASRAC will suggest the creation of working groups of appliance stakeholders for the purpose of attempting negotiated regulations. It will then evaluate progress and make recommendations to the Energy Secretary. In the States California is ramping up activity on Title 24 Building Efficiency Regulations, Title 20 Appliance Efficiency Regulations, and Title 20 Enforcement Rulemaking. There are only two code cycles of Title 20 and Title 24 before 2020, and the state mandates drastic increases of energy savings over 2006 baselines. NEMA is monitoring these activities for overambitious proposals and is coordinating member involvement in the proposal development and comment process. NEMA involvement in Title 20 centers on the promotion of sensible enforcement processes and practices, which fairly target scofflaws while minimizing burdens on responsible manufacturers and distributors. In early 2013, the Federal Trade Commission issued an Appliance Labeling Rulemaking notice, making adjustments to large appliance labeling as well as minor changes to small appliance labeling and catalog listing requirements. NEMA commented on behalf of members of the Lighting Systems Division for this rulemaking. We expect successful incorporation of our comments. NEMA staff and consultants participated in battery charger minimum electrical efficiency regulation proposals in Washington and Oregon. Both attempted to copy the California regulations with some differences. NEMAs goal was first to argue the impending federal preemption (noted above) and suggest the proposals be scrapped. When they proceeded, NEMA submitted comments to harmonize the bills wording and scopes with that of existing California regulation. These attempts appear successful. The Washington bill was passed and is proceeding, while the Oregon bill died in committee. NEMAs public comments to rulemaking and regulation activity can be found at www.nema.org/Policy/Pages/RulemakingComments.aspx. Members may access the detailed NEMA Regulatory Update master list document on NEMA Workspaces. ei Alex Boesenberg, Regulatory Affairs Manager | alex.boesenberg@nema.org
Government Relations Update

NEMA Highlights Openness as Goal for U.S.-EU Trade Talks
On May 10, NEMA filed comments with the Office of the U.S. Trade Representative with priority recommendations for upcoming trade negotiations with the 27-nation European Union (EU). NEMA cited goals and objectives in three primary areas: regulatory coherence, technical barriers to trade (TBTs), and emerging industries. NEMA called for the EU to fully adopt the World Trade Organizations definition of an international standard and to open up its legislative process to allow references to non-EU standards. In addition, the U.S. and EU should: provide full national treatment to U.S. and EU conformity assessment (testing and certification) bodies work closely and collaboratively to define open and compatible standards in these new technology areas including Smart Grid, advanced lighting technologies, and intelligent transportation systems pursue discussions on regulatory cooperation in the area of energy efficiency, with emphasis on productlevel efficiency and system-level efficiency NEMA also called for the bilateral elimination of U.S. and EU customs tariffs on electroindustry products manufactured in the two countries and greater collaboration and alignment on customs classification and enforcement. The U.S.-EU negotiations, termed the Transatlantic Trade and Investment Partnership, were announced by President Obama on February 12 and are expected to begin formally in July. ei Craig Updyke, Manager, Trade and Commercial Affairs | craig.updyke@nema.org
Working Group on Conflict Minerals to Meet June 25

NEMAs working group on conflict minerals will meet at NEMA headquarters on June 25 to discuss issues on which clarification or interpretation is needed in the August 2012 regulations promulgated by the Securities and Exchange Commission (SEC). The volunteer working group, open to all interested NEMA member companies, has met three times via teleconference since November 2012 to help public companies grapple with achieving compliance with SEC rules by May 2014. SEC rules require companies whose products contain gold, tin, tantalum, or tungsten to survey and audit their supply chains for signs that the material originated in the conflict zones of central Africa. Many companies that are not directly regulated by the SEC are also caught up in the rules because their customers are. Among the issues with which the NEMA group is wrestling are privatelabel manufacturing and requirements for supplier due diligence and documentation. Membership of the working group expanded most recently in April to include several representatives of electrical distributors. Contact Craig Updyke to get involved in the working group. ei Craig Updyke, Manager, Trade and Commercial Affairs | craig.updyke@nema.org
NEMA Testifies on Trade Facilitation and Trade Enforcement Act

NEMA General Counsel Clark Silcox testified before the Senate Finance Committee last month on S 662 Trade Facilitation and Trade Enforcement Act of 2013. The bill contains several provisions aimed at enhancing enforcement of intellectual property laws at ports of entry, including provisions directing port officials to share images and samples of products with trademark and copyright owners to assist inspectors in determining whether merchandise is genuine or counterfeit. Mr. Silcox told the committee that U.S. Customs, when in doubt about the authenticity of a product, should permit the manufacturer who owns the trademark or copyright to examine the merchandise. It is the most capable entity to respond quickly and accurately to facilitate trade and enforce trade laws when help is needed. Members of our industry, along with the testing and certification industry whose certification marks have been counterfeited, have worked with U.S. Customs at the ports to help them identify suspect counterfeit products, educating them where genuine products are made, and where counterfeit products come from, he said. Read more: www.nema.org/ Silcox-Testifies-On-Trade-Act
ei
10
The Year of Customer Engagement
Earlier this year, Zypryme asked survey participants, Over the past 12 months how has your view of the Smart Grid changed? As this chart shows, the percentage of U.S. adults who dont know about Smart Grid is increasing. Only a meaningful experience of enablement, empowerment, and
education will engage the end user to fully exploit what it has to offer. Overall success ultimately depends on whether or not customers take a more proactive role in managing their energy use. We rely on electricity daily, often taking it for granted. In the digital age, it is absolutely essential for a vibrant
economy and for a high quality of life. As utilities seek to update the Smart Grid to meet our demands, there is an increased need to improve customer engagement. This is the Year of Customer Engagement. ei Steve Griffith, PMP, NEMA Smart Grid Industry Director
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The Connected Home and the Smart GridIcing on the Comfort Cake
Tariq Samad, PhD, Corporate Fellow, Honeywell Wendy Foslien, CEM, Research Fellow, Honeywell
he benefits of managing electricity consumption across the 115 million homes in America are substantial and widely shared: utilities, homeowners, tenants, and society in general can save money, conserve resources, and reduce the environmental impact associated with power generation.
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Realizing the potential of managing electricity consumption is a difficult undertaking. Consumers care about their energy costs, but a monthly household savings of a few dollars is insufficient motivation for the typical homeowner to expend much effort managing electricity consumption. Attempts to date have had limited success. Scheduling features of conventional programmable thermostats can go underused; direct control of electrical loads in the home by utilities (e.g., turning down a homes central air conditioning during peak times of consumption) is encountering increasing resistance; and dynamic pricing is limited in deployment and not particularly dynamic. But theres no question of the residential sectors importance in energy management. In the United States, more electricity is consumed in homes than in commercial buildings or industrial facilities. Its hard to see how we can meaningfully realize objectives of the Smart Gridsuch as improving overall energy efficiency and reducing grid-wide peak electricity usewithout engaging residential consumers. Hence the conundrum: How can we resolve the conflict between the limited returns to the individual homeowner and the critical need for engagement at the societal level? The opportunities dont stop there. Home comfort isnt just about thermostat settings. Its also about controlling appliances, home security, and other aspects of our personal lives. In todays connected, mobile world, consumers demand seamless experiences across related functions and features. We have to begin looking at our homes as an entire ecosystem of devices.
The Connected Home

These are not pie-in-the-sky imaginings. The enabling technologies have been developed, consumers are primed, and the marketplace beckons suppliers of home energy solutions. Manufacturers are taking these lessons to heart. At Honeywell, for example, Total ConnectTM systems, including Wi-Fi thermostats, security, and home automation systems, allow monitoring and control of home comfort, security, lights, locks, and other devices with apps that feature a common look and feel.
Comfort, Convenience, Control, and Connectivity

Consumers may not care about a few dollars saved on their monthly utility bills, but research from Honeywell and other sources has shown that comfort and convenience matter considerablyand the desire for both can be leveraged for energy efficiency. Its also clear that consumers want to control their energy consumption and not have decisions about things like thermostat temperature set points and appliance use imposed on them by device manufacturers, energy suppliers, or third parties. The challenge is to give consumers the means to conveniently enhance their comfort. The solution? Well-designed systems where significant economic savings from energy management accrue directly. Conservation is icing on the comfort cake. This is where todays digital technology comes in. Walking up to a wall-mounted thermostat to program it through an interface unlike other interfaces consumers regularly use isnt convenient. But what if you could access the thermostat from your Android device or iPhone? What if this access could be from anywhere on the planet? What if the mechanics and ergonomics of the interaction were identical to the apps that you use regularly? And what if an ecosystem of analytics and decision support tools were literally at your fingertips? Were convinced the story will be different.
Images courtesy of Honeywell
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These and other systems allow for exciting analytics engine opportunities. Combining thermostat data, utility billing data, weather, and usage patterns with consumer-focused mobile applications will increase participation in demand response and energy efficiency programs. Wi-Fi thermostats are capable of being enrolled in a utility demand response or energy-efficiency program, or could work with third-party analytics providers. Within the Smart Grid context, home connectivity also extends to utilities. Communicating thermostats allow electricity suppliers to send messages to users through various over-the-air communication protocols and effect direct load control where and when homeowners have agreed to it. Its also worth noting the national Green Button initiative advocated by the Obama administration. This emerging voluntary standard lets homeowners access their archived electricity consumption data from their utilities and share it with energy service providers. To date, commitments from utilities mean 27 million households will be able to access their historical consumption data in a standardized format.
CASHEM demonstrated that all sources of energy use in a home can be integrated through a novel home energy management system, and that a convenient, easy-to-use system helps homeowners cut their energy use and save money. Potential extensions include integrating other energy assets, including storage (thermal and electrical), electric vehicles, rooftop solar PVs, and micro wind turbines.
Engaging Consumer Is Good For Utilities

The Smart Grid has expanded the traditional boundaries of the electricity system to the consumer. Yet fully engaging the residential space in the Smart Grid remains a challenge. We maintain that the solution lies in well-designed energy management systems that conform to users lifestyles and expectations. With digital connectivity and mobile apps enabling homes to become truly connected, homeowners can reduce energy consumption and save on energy costs conveniently and without sacrificing comfort. And in this context, whats good for the consumer is good for utilities and other stakeholders. ei Dr. Samad has led automation and control technology developments related to clean energy, building management, and electric power systems at Honeywell. He is an IEEE Fellow and president-elect for the American Automatic Control Council, and serves on the board of directors for the Smart Grid Interoperability Panel. Ms. Foslien has a wide range of experience performing research in systems and control analysis, with an emphasis on the development of mathematical and statistical analysis software applications and the visualization of time series numeric data.
Envisioning the Future: CASHEM

Finally, we offer a glimpse of what the future holds for the connected home vision. The Department of Energy (DOE) Building Technologies Program recently supported a project called CASHEMContext-Aware Smart Home Energy Manager. This early-stage research project was undertaken by DOE, Honeywell International, Inc., Honeywell Automation and Control Solutions, Whirlpool Corporation, Pentair, Inc., and the Pacific Northwest National Laboratory. It is a novel, integrated home energy management solution simple enough for the average homeowner to use.
Conservation is icing on the comfort cake.

The primary purpose of CASHEM was to explore how consumers can be empowered to manage the full energy load in their homes. The Honeywell team designed several experiments to understand what motivates users and why. The prototype systems developed and deployed by our team in a number of Minneapolis-area homes integrated thermostats, pool pumps, refrigerators, and whole-house electric meters, and then advised users on how to reduce their energy bills. These customized recommendations were generated automatically based on data collected from all connected devices in an individuals home and served up to homeowners on their tablets.
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Behavioral Demand Side Management Programs Offer Utilities Means to Engage Customers
Jeremy Kirsch, Senior Vice President, Client Solutions, Opower
ix minutes. According to Accenture, thats how much time the average person spends a year thinking about energy consumption. Why is that? Energy is boring, energy is relatively inexpensive, and for most consumers, its easily accessible. Unless the light doesnt turn on, most customers dont think about their power or where it comes from. This is largely because electric utilities have optimized supply side management, ensuring reliable power supply.
However, new challengesincluding energy-efficiency regulations, the growing populations energy demand, and Smart Grid deploymentsare changing the relationship between the utility and the customer. Instead of a one-sided relationship where the utility supplies power and a monthly bill, utilities are now deploying behavioral demand side management (DSM) programs that create a dynamic relationship with their customers. Behavioral DSM programs offer utilities a highly effective approach by utilizing customers as a valuable asset for meeting energy reduction goals. DSM is a critical long-term strategy that has advanced dramatically over the last 10 years. Years of behavioral science research have affected DSM practices. Opower, for example, reviewed a study from renowned behavioral scientist Robert Cialdini. In 2005, after California was forced to implement rolling blackouts to alleviate excessive demand on the power supply in the early 2000s, Mr. Cialdini set out to answer the question, What motivates behavior change? What he found is counter to the general perception that money or environmental concerns would have an impact on consumption; what actually motivates consumers is normative comparisons, or having their energy use compared to similar homes. This research demonstrated that homeowners reduced energy consumption by an average of six percent just through the use of normative messaging. DSM programs employ normative comparisons and other behavioral science-informed techniques that reach customers through a variety of communications channels. Starting with monthly reports sent by mail, customers may receive timely data about their energy use along with tips for saving energy through web portals, emails, texts, phone calls, social media, mobile apps, and even thermostats. Results have been massive in scale. Nearly 90 utilities globally have reported that with behavioral DSM, consumers use about 2.5 percent less energy on average, and save more than 2,000 GWh and $250 million on their bills, collectively.
Figure 1. Behavioral DSM programs reach customers through a variety of communications channels. Courtesy of Opower
Energy savings arent the only positive outcomes of behavioral DSM; utilities can also strengthencustomer relationships. Consumers who are engaged by their utilities through the behavioral DSM programs register higher satisfaction scores than those who dont. Surveys have shown a three percent increase in the respondents who agree that their utility is a trustworthy source of energy efficiency information; a seven percent increase in responses that their utility wants to help them save money; and an eight percent total increase in agreement to the statement, My utility wants to help me reduce my home energy use. The need to meet energy efficiency goals, manage future energy demand, and engage consumers is transforming the utility industry. While utility-customer relationships were once one-sided, they are now fully dynamic. No longer are utilities just energy suppliers, they are evolving into energy management solutions providers. Customer engagement, driven through behavioral DSM programs, is driving that relationship change by providing a highly effective way increase customer satisfaction, increase Smart Grid and rate acceptance, and increase energy efficiency. ei A former special operations officer in the U.S. Navy, Mr. Kirsch has been leading high-performance teams, working with customers and partners, and building businesses for more than 12 years.
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Responding to Dynamic Electricity Pricing Signals as Demand Response

Steven R. Montgomery, PE, Chief Operating Officer, 2D2C, Inc.
tility companies often experience a peak demand for electricity on hot summer afternoons as a result of extended air conditioner pump operation added to normal industrial, commercial, and residential loads. On hot days, peak demand hours are usually between 2 and 5 p.m. If this peak exceeds electricity generation capacity, it can result in blackouts.
program incentive payouts control hardware and communication infrastructure to and within the customer site, such as remote controllable thermostats and load control switches installation Furthermore, DR programs can incur liabilities from damage to loads including HVAC systems, pumps, or water heaters.
To prevent an unplanned blackout, utility companies either provide temporary extra capacity or reduce grid loads via demand response. This extra capacity usually comes at high expense from either new generator assets, starting up old generators, or buying power from other distant sources. Therefore, the preferred approach is to reduce the peak load via demand response so existing generators can supply the demand. The Federal Energy Regulatory Commission (FERC) defines demand response (DR) as a reduction in the consumption of electric energy by customers from their expected consumption in response to an increase in the price of electric energy, or incentive payments designed to induce lower consumption of electric energy.1 Utility companies have traditionally used incentive payments to encourage participation in DR events. In exchange for a payment to the customer, the customer allows the utility company to temporarily turn off customer loads to prevent a blackout. In commercial and residential applications, DR events have focused on air conditioner (a/c), pump, and heater loads. During the DR event, the a/c thermostat set point is temporarily adjusted remotely by the utility company to a higher temperature so that its pump motor does not run as often. In residential instances, the utility company may temporarily turn off other loads too, such as pool pumps and water heaters. In most programs, the customer may opt-out of a DR event but he or she loses the associated incentive payment. Although incentive payment programs can be less expensive for the utility company than generating more electricity, the programs still cost money. The utility company has three major expenses:
Dynamic Pricing Offers Alternatives

In contrast, by dynamically adjusting the price of electricity to encourage customers to reduce consumption, utility companies may achieve the same peak reduction with a lower investment and less liability. If a program is implemented optimally, the customer wants to conserve during the peak periods when the utility company charges more for electricity. On the utilities side, advanced metering infrastructure (AMI) enables them to log consumption in 15 minute buckets throughout the day. AMI allows the utility to bill customers based on time of use with higher electricity prices during peak consumption hours. By reducing consumption during highpriced peak periods, the customer can save more money than by simple conservation in a flat-rate billing model. To effectively implement the dynamic pricing model, the utility must have a reliable way to publish the price of electricity to the customer and the customer must have the tools to enable an automatic response to the dynamic prices. A good solution consists of an automated building control system that can receive the dynamic electricity prices from the utility company and act upon consumer rules for when to shut off loads. In general, for DR based upon dynamic pricing, the following conditions help build a tight relationship between grid load reduction and electricity price now: The price of electricity must either be reliably communicated to the customer in real-time or published in advance. The peak-load electricity price must be high enough compared to the low-peak price to cause electricity bill pain for the customer when running loads during peak load periods.
FERC Docket No. RM05-5-020 Standards for Business Practices and Communication Protocols for Public Utilities, 18 CFR 35.28(b)(4) (2012), issued Feb. 21, 2013
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A customer solution to the dynamic pricing must exist (i.e., an energy control system to automatically turn off loads at price set points), must be easy to purchase (i.e., low price, local store, in stock), and must be easy to install and to program rules. The automated control solution must pay for itself in monthsnot yearsthrough reduced electricity bills or the system must also provide other non-energy benefits. These benefits include monitoring building activity remotely, simulating occupancy when away for security, preventing human hazards such as fires and shocks, and/or protecting appliances and electronics from damage due to poor quality power. After installation, the automated control solution must be reliable, fail-safe, easy to accommodate schedule changes, and require very little maintenance or re-programming. ei
Mr. Montgomery serves on the Smart Grid Interoperability Panel, NEMA Smart Grid Council, NEMA High Performance Buildings Council, NEMA Wiring Devices Section, and the International Association of Electrical Inspectors.
Figure 1. In the traditional incentive approach, the utility company shuts off air conditioners, pool pumps, and water heaters using dedicated controllers they installed and paid for. Figure 2. In the dynamic pricing approach, the consumer purchases and installs a multipurpose automation system that can reduce peak demand from a wide range of loads.
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Integrated Volt/VAR Control Optimizes Smart Grid Strategies

Thomas Pitstick, Vice President and General Manager of Energy Automation Solutions, Eaton-Cooper Power Systems
oltage/VAR regulation or control is essential to electrical utilities ability to deliver power within appropriate voltage limits so that consumers equipment operates properly, and at an optimal power factor that minimizes losses.
Factors affecting voltage levels throughout the distribution network include substation bus voltages; length of feeders; conductor sizing; type, size, and location of different loads (resistive, capacitive, inductive, or a combination of these); type, size, and location of distributed energy resources (photovoltaics, distributed wind, various storage technologies, etc.); and others. The complexity and dynamic nature of these characteristics make the task of managing electrical distribution networks a challenging one. While voltage and VAR (volt-ampere reactive, a unit used to measure reactive power) regulation are often referenced in combination (i.e., volt/VAR control), they are perhaps easier to understand if they are described as two separate, but interrelated concepts. Voltage Regulation Regardless of nominal operating voltage, a utility distribution system is designed to deliver power to consumers within a predefined voltage range at the terminals of service entrance equipment. Typically, the service entrance is at or near the consumers meter. Under normal conditions, the service voltage must remain within what ANSI C84.1-2011 defines as Range A. On a 120V base, this is 114126V. From the standpoint of minimizing losses, it is in the best interest of a utility to provide service at the highest voltage allowable. From a practical standpoint, however, utilities have limited opportunity to maximize voltage. Utilities must also consider the capital costs of feeder construction. A feeder must be designed so that service voltages for customers near the substation dont rise too high under light loading conditions and dont fall too low for customers near the end of the line under heavy loading conditions. It must also carry the required load with allowance for load growth. VAR Regulation Nearly all power system loads require a combination of real power (watts) and reactive power (VARs). Real power must be supplied by a remote generator while reactive power can be supplied either by a remote generator or a local VAR supply, such as a capacitor. Utilities prefer to deliver reactive power from a local source because delivery of reactive power from a remote VAR supply results in additional feeder voltage drop and losses. Since demand for reactive power is higher
during heavy load conditions, VAR supply on a distribution feeder is regulated or controlled by switching capacitors on during periods of high demand and off during periods of low demand. As with voltage control, there are feeder design and operating considerations. Volt/VAR Regulation Supplying VARs when and where demanded is inherent to operating an electrical power system. The effects of real power flow nearly always have negative effects on voltage while the effects of reactive power flows are sometimes positive and sometimes negative. Experience has proven that overall costs and performance of operating a power system can be best managed if voltage control and reactive power control are well integrated.
Adjusting to Target Needs

Different types of utilities face different challenges and different drivers associated with volt/VAR control technologies. Given the range of regulatory environments, load characteristics, and economic drivers that different types of utilities experience, it is important that any technologies or systems deployed are able to adjust accordingly to different target needs. With the development of microprocessor-based controls and computing platforms, pervasive communications technologies, and widely deployed sensor technology (including advanced metering infrastructure systems and advanced software algorithms), it is now possible to coordinate these devices to optimize the broader electrical system at the feeder, substation, or utility level. With integrated systems in place, utilities can optimize a variety of objectives including reducing peak demand, targeting certain power factor levels to minimize losses, or implementing conservation voltage reduction. They can also change target objectives at different times of the day/week/month/year. We believe the time is now for regulators and utilities to support the wide deployment of these systems to address the increasing challenge of effectively and efficiently managing voltage and power factor on electrical systems. ei As vice president and general manager of Eatons Cooper Power SystemsEnergy Automation Solutions business unit, Mr. Pitstick oversees AMI, demand response, distribution automation and substation automation solutions. He also serves as vice chairman of NEMAs Smart Grid Council.
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Grid Therapy for Tension and Congestion

Eric Hsieh, Director of Business and Market Development, Nexans TVG
s sunbeams and raindrops rouse spores and stamen, allergy sufferers arent the only ones experiencing congestion. A mini-boom in wind capacity has left some grids wheezing for more capacity. Like diet and exercise, transmissionthe ultimate long-term solutionis replete with immediate pain. Fortunately, like many things, theres both a pill and an app for that.
The problem of too much wind is no longer theoretical. PJM, NYISO, CAISO, and ERCOT1 already allow negative energy prices, which have occurred as wind production gusts and customer demand stalls. Wind generators in the Pacific Northwest have seen their output curtailed in favor of local hydro during high runoff conditions. Virtually every organized market has created some form of dispatchable wind service, from the Do Not Exceed limits in ISO New England to the Renewable Integration Market and Product Review in CAISO. These new services are designed to incentivize or penalizedepending on your perspectivethe ability of any generatorrenewable or traditionalto dump power onto the grid without scheduling. These market reforms can help solve mismatches between supply and demand, but are less helpful in clearing blockages between producers and consumers. The inevitability of death, taxes, and load growth implies that new wires will eventually be strung, but even the best-laid transmission expansion plans are no match for realitys check points. Like a billion-dollar game of Mad Libs, the perpetually delayed [insert line name here] continues to reduce the deliverability of [insert wind project name here]. Bottled-up renewable capacity can create losses for developers and higher costs for consumers, often persisting for years before an upgrade is complete.
the line. As wind production increases, so too does a soothing, cool breeze that draws heat from neighboring wires. As the antihistamine of the power grid, the DLR frees up congested interfaces, letting clean energy flow to inhaling customers. Like the problem of excess wind, DLRs have made the move from theory to practice. An ARRA-funded pilot project, now nearing completion, is expected to show a five to 30 percent increase in monitored lines during periods of high loading. These modest increases have already translated into large savings in operational benefits, including reduced congestion costs. A subsequent deployment, completed in less than 120 days, will specifically target an area saturated with wind and wind farms. The DLR pill also comes with a stress-relieving app. When integrated into the energy management system of the transmission operator, these real time data points contribute to visibility and situational awareness, helping the operator increase overall reliability. DLRs are among the most powerful of many prescriptions on the grid technology counter; the technology has been shown to be highly effective even in small doses. If your grid suffers from chronic congestion and is seeking immediate relief, ask your doctor about it. ei Before joining NEXANS, Mr. Hsieh was an engineer at the Federal Energy Regulatory Commission and a power industry lobbyist at NEMA.
Nursing Systems back to Health

Such high stakes have, not surprisingly, incentivized smart solutions. From storage to phasor measurement units, new devices from NEMA member companies are helping utilities correct chronic deficiencies and nurse their systems back to good health. Dynamic line ratings (DLRs), one such prescription, specifically correlate well with wind. Laboratory studies (in this case, Oak Ridge National Laboratory) show that DLRs accurately interpret average transmission line temperature over multiple spans, which in turn provides precise information on the real time capacity of
1
Regional transmission organizations / independent system operators (ISOs)
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Smart Meters
Weather the Storm

Dave Buster, Manager, Solutions Marketing, Elster Solutions
ver the last decade, smart meter technology has been installed for use in millions of residential and commercial buildings in the U.S. Indeed, the U.S. is ahead of much of the world as utilities install smart meters in their service areas. For much of the industry, the primary business drivers for deployment have been cost reduction and energy savings. Cost reduction is relatively easy to justify because smart meters can reduce or eliminate the cost of physically visiting meters to collect readings for billing purposes. Advanced meters also include remote control switches to disconnect power as well as measure time-of-use, again without the need for physical visits. For energy savings, smart meters also provide a way for utilities to offer services to reduce consumption by managing individual appliances in return for a reduced rate. These technologies are proven, mature, and are widely deployed.
Less prominent, but just as important, is the role of smart meters in disaster recovery situations. Its important to remember that smart meters are smart sensors. In addition to measuring energy usage for billing purposes, these sensors can provide valuable functions during disasters and during recovery. As a storm rolls in, utility managers begin preparing for outages by comparing real and reactive power measurements on commercial and industrial meters to see which customers are still running large inductive loads. These loads indicate which factories are running or shutting down. Smart meters provide these measurements over short periods, allowing utility managers to see which motor loads are shed prior to a storm. Information on factory shutdowns can be forwarded to public disaster coordinators. Next, utility managers verify that known vacant buildings and houses have been disconnected from the grid by sending messages to smart meters. This action helps to prevent fires in case of major structural damage that would otherwise go unreported. If circuits are still active, disconnect commands
can be sent to properly equipped smart meters and executed within seconds. As the storm blows through, inevitable power outages begin to occur as power assets are disrupted. In some cases, distribution feeders are cut and power is restored automatically through another path. In other cases, however, distribution feeders are completely disrupted and power is lost. In still other locations, individual drops are cut, or transformers or other assets are damaged. These disruptions are extremely difficult to diagnose from a utility standpoint, because most utilities have little or no instrumentation on them. Similar to the fog of war, utility operators are overwhelmed by waves of information from telephone calls, first responders, and their own crews. Its difficult to prioritize the work or even know what kind of crew to dispatch to a particular location. Luckily, smart meters can help. They use capacitors or batteries to store energy, allowing them to send a dying gasp message in the event of power loss As this information is collected and analyzed, a clear picture of the various outages emerges. If a large group of meters goes out at the same time on the same distribution feeder, its likely that the feeder is damaged. Likewise, if all meters on a particular transformer or particular street report outages, the problem can be isolated to that location. Smart meters can even be used to detect disruptions to individual drop wires if neighbors still have power. More importantly, these disruptions can be located, analyzed, and acted on long before consumers begin to report in with phone calls. This enables the utility and emergency coordinators to not only know where power is out, but predict when it will be restored to individual addresses. In particularly bad situations with significant building damage, it may be necessary for emergency coordinators to cut power to certain areas to minimize the risk of fire or injury due to
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energized lines until they can be inspected, but with the use of smart meters, power can be shut off remotely to individual addresses reported by emergency personnel. If generation or feeder capacity is adversely affected during the storm, the utility may choose to shed load by implementing a demand response system. This enables the utility to send a message to turn off water heaters, air conditioners, and other appliances on a temporary basis. Normally, demand response systems are offered to consumers in exchange to favorable rates in order to balance and level loads; however, during a disaster situation, these same tools can be used to reduce the load on an otherwise stressed distribution system. Smart meters enable this capability by providing the communications path for the utility to send load commands to consumer appliances and verify their execution. Finally, during the restoration phase of the disaster, smart meters are critical in reporting the resumption of power. Often there are nested outages in an area. When a utility crew notifies their dispatcher that power has been restored, it is a simple matter to verify that all the smart meters in that area are responding appropriately, but often a second, hidden outage is exposed deeper in the neighborhood by the smart meters. If that is the case, the utility crew can easily fix it while still onsite, rather than dispatching another crew later. Smart meters are critical during disasters and during recovery. In preparation for an emergency, they can be used to disconnect empty buildings and detect large motor loads. During the disaster, smart meters provide practically real-time views of
Got Questions? NEMA Has Answers

NEMA members manufacture equipment that is building Americas Smart Grida 21st century electric grid that uses information and communications technologies, such as smart meters, to maximize the efficiency, reliability, affordability of electricity, and ultimately help consumers make informed choices usage. As with any new technology, users and potential users of new products can be hungry for information, yet vulnerable to misinformation. With utilities installing smart meters across the country in order to bring the benefits of a modernized electric grid to consumers, NEMA offers convenient access to information about smart meter technologies. Visit: www.nema.org/Smart-Meter-Facts
outages and disruptions before they are reported by consumers. The visibility they provide greatly reduces restoration time by giving operations personnel, field crews, and emergency coordinators a view of the restoration process. ei Mr. Buster is an industry veteran whose experience includes designing, building, and operating communications systems.
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Developing sustainable power grids, with Alstom

ELECTRICAL GRID ENGINEERING Alstom builds power grids for now and the future. We interconnect major grids, ensure an intelligent balance between production and consumption, and improve the integration of renewable energy.
www.alstom.com
Achieving Customer Engagement through Smart Thermostats and Peak Load Management Controls
Geoff Godwin, Marketing Vice President and Brand Officer for Emerson Climate Technologies
mart meters are opening up a new world of possibilities when it comes to understanding energy use and thermostats are positioned to play an important and growing role in acting as the interface for consumers to access their energy usage information.
without changing their behavior. If consumers do decide to do things differently, such as run the dishwasher or dryer when rates are lower, they can save even more money. Many consumers may not be aware of the potential pricing changes that are being considered by regulators today, but when they do they will seek technology that enables them to automatically reduce the largest loads in their homes during these peak pricing periods. Companies focused on enhancing consumer engagement in the energy utility market, like Emerson, are developing products and solutions to address the needs of smart energy customers. Advanced thermostats that communicate with smart meters can provide value to consumers and utilities alike by highlighting energy usage and providing the ability to monitor and control usage against self-selected energy and cost limits. The information age has given way to the age of the consumer, and providing intelligence when, where, and how the consumer wants it will be a winning strategy for companies of the future. ei As marketing leader for White-Rodgers, a business of Emerson, Mr. Godwin is responsible for communications, advertising, product development, and market planning.
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Approximately half of all U.S. homes will have smart meters by 2016. More than 40 million smart meters have already been deployed, with another 25 million under contract. First and foremost, consumers want to understand what their utility bills look like in real time, rather than waiting to receive a bill in the mail two weeks after its too late for them to do anything. A number of studies have found that when consumers are armed with real-time energy usage information they, on average, will reduce their energy consumption by up to 10 percent simply by making smarter decisions about their usage behavior when it matters most.
With Smart Meters Come Smart Rates

Most utilities today charge customers a fixed rate no matter what generation costs the utility may be exposed to at any given time. In terms of economic policy, this is incredibly inefficient as the pricing does not reflect the true cost of the commodity. As a result, the utility is forced to charge a risk premium to all consumers, even those that dont use much electricity during peak hours when electricity is the most expensive. Think about a cell phone plan in which the customer pays more when the network is the most bandwidth-constrained (during business hours); but when there is adequate supply (nights and weekends), the customer can make calls without fear of price penalties. The electric industry has similar timedependent capacity constraints and now that it has a two-way communication path into homes, it will gradually shift to more logical pricing plans. Analysis has shown that under a fixed rate pricing model, approximately 95 percent of consumers are subsidizing the costs for five percent of the consumers who use the most power during peak hours. By shifting to a variable rate pricing model, those 95 percent of consumers will save money, and thats
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A Smart Grid ensures that renewable energy sources can be better integrated into the grid, thanks to a two-way flow of energy (orange line) and a bidirectional flow of communication data (blue-green line). Whereas the generation of power in conventional power supply networks depends on consumption levels, a Smart Grid also is able to control consumptiondepending on the availability of electrical power in the grid. Image courtesy of Siemens
Smart Grids Maximize Renewable Energy Use

Ken Geisler, Vice President of Strategy for Siemens Smart Grid
enewable energy resources exist ina variety of formswind, solar, biomass, hydro, tidal, geothermal, wave, and more.They are being implementedat the transmission and distribution levels of the energy distribution system in growing levels to help meet objectives to improve energy conservation/efficiency and reduce greenhouse gasemissions.
Large wind farms, for example, are generally located in remote areas connected to load centers through the transmission system.Similarly, photovoltaic (PV) solarimplementations havebeenappearing inrapidlygrowing rates in many distribution systems.In most cases these resources vary over a large rangebased on the availability and intensity oftheir power source. The current lack of utility scalestorage makes management of this variationa significant challenge.Additionally, thelocationand magnitude of these resourceshave typically
notbeenplanned in the existing design of the grid, presenting challenges inmanaging capacity, voltage, frequency, equipment protection, and safety.
Observing, Assessing, Managing Variable Sources

The Smart Grid provides options to better observe and managetheeffects of variable energy sources on the grid. At the transmission level, dynamic analysis applicationsare added to assessstability conditionsin control centers while high speed phasor measurement units are added to networks to increase situational awareness, facilitate better wide area management, and provide forensic data for improved post-event analysis. These elementsare Smart Grid technologies that helpmaximize the value and potential of integrating renewable capacitywhile maintaining stable operations.
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At the distribution level, significant penetration of PV and other renewables can provide situations where the direction of power flow, which has historically been from substation to consumer (one-way), now can be reversed (two-way), depending on conditions which can change in five to 15-minute time frames. This change presents safety considerations for field crews and control centers, as well as provides operating conditions that were generally not considered when the power infrastructure was designed. New distribution system designs, automation, improved forecast and analysis applications, and extended direct control capabilities are being applied to address this growing need. In some cases, designs for coordinatedeco-districts and microgrids arebeing assessed and implementeda development that also begins to address the issue of resilience. Smart Grid is important to the integration of renewables because it provides the capability to more fully use them. Without it, there is less capability to manage the variable nature of renewables and a significant amount of generation is lost. In other words, unless Smart Grid is incorporated into the current electrical grid, the model of generation following load cannot shift toward more load following generation. More capacity inthe form of spinning reserve (the extra generating capacity that is available by increasing the power output of generators that are already connected to the system) that is powered by traditional forms of generation will have to be maintained without Smart Grid technologies. There is simply less capability to effectively manage the variability of renewable generation usage without a smarter grid.
There is simply less capability to effectively manage the variability of renewable generation usage without a smarter grid.
Although most utilities are at the early stages ofrenewable penetration, some are initiating projects to promote greater use: One large-scale project to integrate renewables at a transmission level is the Competitive Renewable Energy Zone project in Texas, where new transmission is being constructed to handle significant wind generation in the panhandle of Texas and its transport to dense load centers elsewhere (e.g., Dallas and Houston). Hawaii Electric is installing wind farms in an area where there is already a significant PV penetration at the distribution level. Kansas City Power & Light provides an example at the distribution level within its Smart GridGreen Impact Zone demonstration program. PSE&G has the highest penetration of PV in the U.S. at distribution levels. Independent system operators (ISOs) are also looking to offset traditional generation with green generation and pair it with demand-response capacity to help address reserves. PJM, a regional transmission organization, offers day- and hour-ahead demand capacity bidding options. California ISO is following suit with variations appropriate for its market, and Southwest Power Pool will allow the forward sale of demand capacity in 2014. Renewable energy sources continue to offer cleaner ways to answer many of our power needs, but without an efficient grid to manage this energy effectively, it can be underutilized or lost altogether. Smart Grid technologies have the ability to integrate renewables onto the grid to optimize energy usage and make these sources of power generation viable for years to come. ei Mr. Geisler has more than 29 years of management and technical experience in defining, designing, developing, and implementing large integrated solutions in the energy industry.
Electrical grids can hardly handle the amounts of power flowing through them today. Eco-electricity from the sun and wind flows into the grids irregularly, making them unbalanced. With an intelligent Smart Grid network, IT and communication technology make it transparent and controllable. Image courtesy of Siemens
Coordination with demand-response capabilities, for example, provides a potential avenue for better utilization of available renewable resources. Meter data management systems document energy use and record its response under demand-response requests, which provide the base information to create response models under different conditions of renewable generation variation. The integration of these systems and models with control center systems provides an integral component in establishing the Smart Grid and integrating renewables.
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Smart Grid Project Engineer Kevin Whitener operates the inverter switchboard in the Salem Smart Power Center, part of Portland General Electrics Northwest Smart Grid Demonstration Project. Photo courtesy of Portland General Electric
More Sustainable Future Propelled by Robust Services Organizations

Gregg Turner, Eaton Segment Director for Utilities
oday, Smart Grid systems are helping us generate, distribute, and consume electrical power more intelligently and efficiently. They enable smarter homes, buildings, factories, and transportation across the grid, helping better control energy costs, reduce their energy requirements, support sustainability initiatives, and improve power reliability for mission critical applications.
A Smart Grid is a system of intelligent devices, two-way communication technologies, and software solutions that are designed to improve power generation, delivery, reliability, and efficiency. They often link power producers with the consumer in a seamless and intelligent architecture. Smart meters and distribution automation are Smart Grid applications that are already widely deployed. Their functionality continues to evolve as software solutions take advantage of the increasing intelligence across the grid. These systems require power management expertise and smart technologies to meet quickly evolving grid and consumer demands. Experienced power system companies and engineers that have knowledge of low and medium voltage electrical design and applications are providing the skills and project
management services to successfully design, build, and support these systems. Government-, utility-, institution-, and business-driven Smart Grid projects are expanding the scale of their applications and propelling new technologies. Applications in microgrids, energy storage (battery, flywheel, compressed gas, pumped storage), distributed generation management, and self-diagnosing equipment are examples of emerging applications built on expanding grid intelligence.
Microgrid Projects Demonstrate Efficacy

The primary driver for microgrids is the ability to achieve reliable, clean power to critical applications during an extended period of islanding. Microgrid projects are helping to better manage local power generation, quality, stability, and consumption on a small but critical scale. For example, a recent project with the U.S. Army at Fort Sill, Oklahoma, intends to demonstrate the ability of a microgrid to be isolated at will from the primary grid and achieve uninterrupted power supply independent of utility power. One application is designed to maintain mission critical and support
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functions on military bases regardless of the availability of the primary grid. The project integrates a combination of solar, wind, and traditional backup generation sources in a microgrid that is isolatedintentionally or otherwisefrom the macrogrid. One of the goals of this project is to demonstrate how a combination of variable renewable energy sources and traditional backup power generation resources can be managed through the use of intelligent controls to maintain power quality and reliability. Typical objectives for microgrid projects include: ability to seamlessly isolate a smaller infrastructure of power generation and delivery from the main grid integrate a range of variable power generation resources including backup generators and renewables to create a reliable power source maintain power quality to critical equipment such as radar and communications increase energy security by enabling the base to dynamically reconfigure the electrical infrastructure (i.e., smartly change the pathway of power from source to load) to ensure available resources are used for the most critical loads As the capabilities of microgrids continue to be demonstrated, expect to see more open-sourced architecture and plug-andplay capabilities. These kinds of projects are expanding the scale of new technologies and solutions in ways that reduce overall generation needs and greenhouse gas emissions. With advanced system diagnostics and predictive maintenance, Smart Grid systems are achieving improved reliability. Advanced diagnostic technologies are availablefor Smart Grid and traditional applicationsthat help to predict potential equipment failures before they happen to avoid downtime. Early warning systems detect conditions including potential equipment mechanical malfunctions, humidity, smoke, floor water, high temperature, and electrical stress. Electrical power management systems are aggregating data and information from electrical distribution equipment into a dashboard format to facilitate maintenance planning and reduce investments. Additional automation systems are harnessing equipment intelligence to make existing grid infrastructure more efficient and reliable by eliminating system power losses through tight volt/VAR control and by automatically detecting service losses and reconfiguring existing resources around failed equipment to quickly restore power.
Expert Resources Support Demands

Robust power systems engineering organizations are providing the expertise to optimize operations and reduce energy consumption. Specific areas of expertise that are helping to support Smart Grid projects include: substation design protection and control design transmission and distribution line design automation and SCADA system studies renewable generation and interconnection design energy storage system integration power generation design, automation, excitation, and upgrades energy audits and remediation studies Advanced power management expertise and skilled services organizations are required to create and support these systems so that customersfrom military bases to residential homes can better control costs, reduce their energy requirements, and support sustainability. ei Mr. Turner is actively involved in developing solutions to automate the grid infrastructure including substation and distribution automation, energy storage, and asset management applications. He has held various leadership roles in sales, marketing, and operations.
Improving Reliability
Regional Smart Grid demonstration projects spearheaded by the Department of Energy are expanding on existing utility electrical infrastructure and testing new Smart Grid technologies with residential and business customers. These projects analyze novel combinations of devices, software, and advanced analytics tools that manage energy consumption and enhance the power grids reliability and performance. Through intelligent power management, Smart Grid projects are helping to manage peak demand periods during the winter and summer, lower utility costs, and decrease greenhouse gas emissions. These projects also document how Smart Grid technologies are helping to maintain the electrical systems reliability when integrating variable renewable power resources with energy storage. Using intelligent sensors and controls, stored energy is managed in a way that levels the peaks and valleys inherent of renewable generation sources, while improving the overall power quality. Smart Grid projects also enable consumers to be active participants in improving power grid efficiency and reliability. By connecting utilities with consumers in an intelligent way, dynamic load management and overall energy reduction can be achieved without sacrificing consumer comfort.
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Cost-Effective Electric Storage Harnesses the Wind

Paul Steffes, PE, CEO, Steffes Corporation
tilities always face the challenge of balancing generation with demand, but now they are taking on an additional challenge with variable renewable energy, such as wind. Predicting hourly, daily, and seasonal patterns with wind is particularly difficult. Peak wind generation also coincides with periods of lowest demand, and, paradoxically, wind provides its lowest output during periods of highest demand. Added to that, moment to moment fluctuations in all renewable generation make it hard to maintain electrical stability, especially as larger quantities are installed.
electric water heaters and enhanced electric thermal storage (ETS) space heaters make up the GETS system. GETS interfaces with standard load management systems or other Smart Grid signals to provide very responsive balancing and creates a precise, dependable, predictable, and verifiable up and down dispatchable load. GETS goes beyond traditional demand response tools not only by reducing loads but also by storing extra amounts of energy. Extra energy helps manage the power system while balancing the needs of the consumer, utility, and electrical grid. This distributive electric storage technology functions as a low-cost, long-life thermal energy batteryand it is available today.
Currently, grid stability is maintained by withholding and adjusting redundant and slow-moving fossil generation assets in conjunction with a currently effective and affordable form of energy storage like pumped hydro. Additional renewable generation greatly increases our need for balancing resources now on a second-to-second basisfar outstripping the traditional approach. Energy storage helps maintain reliability and ensures that sufficient energy is available to meet demand, while minimizing the use of fossil fuel from traditional generation sources. It also provides carbon-free reserves. Emerging energy storage technologies (mostly battery) provide a faster acting resource, but currently carry high capital costs. There is a growing, real, and immediate need for greater quantities of affordable and effective energy storage for balancing supply and demand in real time while simultaneously maintaining power grid stability. Grid-interactive electric thermal storage (GETS) is a low-cost electric storage option for homes and buildings. Combining two-way grid communication and controls with conventional
Getting GETS
GETS space and water heaters are thermal energy batteries that store electricity as heat in dense ceramic bricks located inside the heater or in water. Energy is stored during preferential times or as dictated by real-time needs of the grid. Delivery of heat energy occurs as needed by the consumer. A great advantage to these modular and scalable distributive energy storage devices is that when aggregated, they are very affordable grid management tools. They are versatile enough to respond to smart control signals as well as to time clocks, legacy load management relays, or other utility signals. They can also precisely follow desired utility load shapes. This load shape can be set beforehand and then altered hourly and again every few minutes or seconds to meet real-time needs. Since space and water heating are the largest energy loads in homes and many businesses, this combination of ETS, space, and water heating along with smart (grid-interactive) control provides utilities a great tool for managing and regulating sources of power supply, transmission, and distribution while optimizing economic and environmental benefits for the utility and consumer. For example, space heating demand peaks in winteras does wind generation. A water heater can be programmed to charge at night (during the peak availability of wind) or when there is an unexpected wind event that either happens too quickly or occurs without an offsetting demand load. GETS effectively becomes a huge wind energy sponge readily soaking up and balancing energy supply with demand. ei
Images courtesy of Steffes Corporation
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Mr. Steffes has 25 years of experience designing load and demand management products to better use electrical utility assets.
Microgrids Integrate Reliability and Renewables

Philip Barton, Microgrid and Advanced Reliability Program Director, Schneider Electric
afety and prosperity depend on the modern grid more than ever, but they are routinely rocked by natural disasters and volatile weather that may cause power outages of up to two weeks.
Outages cost millions of dollars and put lives at risk. The Department of Energy estimates that this country spends more than $26 billion annually on outages of more than five minutes. While the U.S. grid is good, its reliability does not compare well to other industrialized nations in Europe and Asia. Backup generation helps, but too often the emergency fuel is exhausted before the grid is restored. One technology that increases energy security, improves efficiency, and often betters air quality is the microgrid, essentially a miniature version of the bigger macrogrid. Featuring localized generation and/or storage, it embodies the capability to island, or separate from the grid, while running parallel to it. Offering reliability and stability as well as renewable integration, microgrids command a harder look. The concept of the microgrid goes back to 1882 when Thomas Edison developed the first power plantthe Manhattan Pearl Street Stationas the first source of power before the electric grid as we know it was established. The technology has certainly evolved since then, but the fundamental concept remains the same. For example, in the aftermath of Superstorm Sandy, universities such as New York University and Princeton demonstrated how well-managed cogeneration systems kept campuses running for nearly two days. A microgrid can be improved by fuel diversification. Florida experienced several hurricanes in 2004. Tampa General Hospital, which features a Level 1 trauma center and an 11MW campus, can be islanded intentionally to protect the facilitys mission. In an emergency, Tampa Generals microgrid may draw from grid power, diesel-fueled generators, and perhaps in the future clean, natural gas-fired cogeneration. Localized and increasingly clean generation allows the microgrid to provide power to campuses and small communities independent of a macrogrid. These stability islands can keep whole communities of rate payers warm, fed, and safe. Of course, emergency services, communications, shelters, fuel movement, and supermarkets cannot tolerate weeks without the grid. Following a disaster, microgrids allow first responders to start their work sooner. They can be a super set of emergency power systems that use and ration distributed generation through pre-arranged plans and automated controls.
Cogeneration and emergency generation are increasingly used to anchor local renewable generation sources as well. Renewables that are always on are grid-tied, meaning they must go offline when the electrical grid is disrupted. When the microgrid islands, the anchor resource provides a stable source of voltage and frequency, which transitions grid-tied resources to microgrids. This happens regardless of macrogrid availability. Other features of microgrids are sophisticated switching between diverse sources and black start capability. If power is disrupted, restoration of the ancillary systems providing lubrication, cooling, and starting current are necessary to restart generation or cogeneration.
Bringing Generation Closer to Loads

By bringing generation closer to the loads, we can achieve a higher penetration of renewables, mitigating costly grid modifications to manage the intermittent nature of renewable energy. Diverse energy sources or energy storage can fill supply gaps due to a lack of sun or wind. Further, the storage element and its high-speed power electronics can make the microgrid more fault-tolerant. Recent projects seek to further monetize microgrids through participation in the ancillary services market. By providing local power for peak demand and regulation services, microgrid owners are capturing credits and reducing rates. But there is more to do. Permitting, codes, and standards must continue to evolve to enable new generation technologies. Special rate structures for certain power must be approved by public utility commissions. The important work on IEEE 1547 Interconnecting Distributed Resources with Electric Power Systems must continue. It is important for more utilities to adapt to and embrace the microgrid momentum. While upfront costs, pricing, and regulation are being managed, increased collaboration with utilities, public utility commissions, and public-private partnerships will help the technology reach its wide-scale potential. Pike Research predicts that more than 3.1GW of microgrid capacity will be available by 2015. ei Mr. Barton leads Schneider Electrics U.S. activity to organize microgrid projects and solutions.
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MicrogridsUpstarting Our Energy Future

Said Kayal, Smart Grid Innovation Manager, Alstom Grid
icrogrids are independent, small-scale electricity systems for communities, towns, campuses, and even individuals. They deliver integrated distributed renewable energy, improved grid reliability, personal energy usage data, and customized control. Microgrids play an integral role in the development of smart cities.
Smart Grids are fundamental to transform todays electrical grids to address growing demand, renewable intermittent and distributed generation, and environmental pressures. Microgrids are an integral part of the transformation. As grids evolve, the balance of energy on the grid will rely on larger volumes of distributed energy resources (renewable energy, demand response, and storage). Because todays distribution network does not accommodate these new types of energy flows, smart local optimization is needed, while maintaining the quality and security of energy supply. Microgrids are the building blocks of tomorrows smart cities. They take full advantage of the flexibility of prosumers (consumers who also produce electricity) while integrating new distributed energy resources and storage solutions. Fragile areas susceptible to blackouts, as well as densely populated cities, will eventually be made up of autonomous grids within an overall Smart Grid able to survive major disturbances. Tomorrows energy management systems will be designed around a decentralized, multilayer architecture, where microgrids provide the local intelligence and optimization. New sources of renewable energies (e.g., biomass and microhydro solutions) as well as new storage solutions (e.g., thermal storage in district heating networks) will be integrated at the local level. Local microgrids and smart campuses will be part of smart districts, which in turn will be part of smart cities. Each layer will optimize the layer below it to build up overall Smart Grid infrastructure.
Nice Grid: Testing the Future

The Nice Grid Microgrid is one of six Smart Grid projects of the European Unions Grid4EU program with a team of partners including ERDF (French distribution network operator), EDF (electricity supplier), Alstom, and others. It is located in Carros, in the southeast region of France. The principle objectives of Nice Grid are: test massive photovoltaic integration enable islanding based on solar power generation and electricity storage guarantee continuity of supply provide demand response for flexible consumption Although they are a hot topic, few fully commercialized state-ofthe-art microgrids with significant generation capacity are actually up and running. Nice Grid, a living laboratory located in the south of France, is one of the rare demonstrations of microgrids in the world. The project, which is expected to last four years, brings together ERDF, EDF, Alstom, battery maker Saft, other industrial partners, and innovative subject matter experts. The project will test an innovative architecture for mediumand low-voltage (MV/LV) distribution networks with smart houses capable of managing their electricity needs and new architecturescalled Virtual Power Plantsto run them. A total of 1,500 end users are expected to participate. Nice Grid is one of 15 Smart Grid demonstration projects in which Alstom is actively participating. The project will study the economic, technical, and social issues related to microgrids of the future. These include optimization and use of MV/LV networks with a massive contribution from decentralized and variable renewable energy sources (principally photovoltaic) as well as the behavior of customers, who will become agents for their own production, consumption, and storage of electricity. The operation of an independent consumption zone equipped with energy storage resources and isolated from the main network will also be studied.
Overcoming Challenges
Nice Grid will use a distributed energy resource management solution (DERMS) to interconnect smart homes, smart industrial buildings, energy storage, and solar panels, gathering them into a single microgrid. DERMS is a means to optimize energy consumption in the microgrid and connect it to the main ERDF distribution network.
A microgrid improves grid reliability by integrating distributed energy resources (renewable energy, demand response, and storage). Illustration courtesy of Alstom Grid
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The current distribution network is unable to accommodate this new type of energy flow. ERDF and EDF will integrate distributed energy resources (DER) into their daily grid and commercial operations. Nice Grid will attempt to answer their business needs in terms of DER enrollment, optimization, and dispatch around an MV/LV grid node. The southeastern region of France where Nice Grid will be located is an electric peninsula. It produces only 40 percent of its energy needs but has a high concentration of solar panels connected to the grid, making it an ideal location for experimentation. The demonstration will capture around 2MW of installed photovoltaic capacity in the region. In extreme situations, the microgrid can also be islanded. This principle works on the basis that if the distributed network experiences a blackout or other extreme condition, the microgrid will continue to draw power from internal DER (e.g., solar panels, storage, or demand response) as an independent, autonomous network. One of the key challenges of the project includes the smooth injection and management of decentralized and intermittent renewable energy into the distribution grid. The project integrates storage systems together with distributed hierarchal decision tiers in the microgrid control and communication architecture. Another key challenge of the project is to enable consumers to become active participants in the local energy balance via demand response. Nice Grid will attempt to validate a new model of interactions between energy actorsconsumer, commercial aggregator, and the distribution system operator (DSO) at the microgrid level. The DSO (ERDF) will be able to route energy to where it is needed, and end users will be able to monitor and control their energy consumption via smart meters. Nice Grid will demonstrate the impact of lowering energy demand and reducing CO2 emissions, while maintaining the quality and security of the network, acting as a kind of laboratory for experiments that are not yet possible on a working national grid. ei
IssyGrid is Frances first Smart Grid eco-district in Issy-les-Moulineaux, near Paris. Photo courtesy of Alstom Grid
Mr. Kayal has 10 years experience as an innovative solutions marketer covering sales, delivery, and support for energy management solutions.
Other Smart Cities News

IssyGridAn Urban Microgrid The IssyGrid demonstration project is Frances first Smart Grid eco-district in Issy-les-Moulineaux, outside of Paris. A consortium of industry partners including Alstom, Bouygues, and EMBIX are leading the projects Smart Grid dimension through interactive energy monitoring and control technology to help consumers reduce energy costs and minimize their carbon footprints. Through the integration of renewables and optimization of energy and transportation resources, IssyGrid will exemplify sustainable urban living. The five-year project will be delivered in segments, starting with the citys Seine Ouest district. Implementation of renewable energy and storage devices is currently underway at Seine Ouest, while deployment of a cloud-based interconnection service is taking place throughout Issy-les-Moulineaux. When complete, Issy-les-Moulineaux will feature photovoltaic and cogeneration, energy storage, advanced building management systems, smart street lighting, electric vehicle chargers, and other components. IssyGrids green city infrastructure is suited to meet to the needs of 10,000 users across a 160,000 sq. meter area. VendeRegional Grid Gets Smart As part of Frances national energy transition campaign to increase use of renewable energy and reduce reliance on nuclear energy, Prime Minister Jean-Marc Ayrault has implemented two new energy-efficiency projects valued at over $117M. One of these, the Smart Grid Vende project located on Frances western Atlantic Coast, is designed to demonstrate that greater overall energy efficiency can be achieved through local energy supply chain management and the integration of renewable energy sources. The automated regional grid system will improve costs through measures that enhance the flexibility of distributed energy sources taking account production and consumption. ei
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City of BataviaA Case Study in Self-Healing

Patrick Avery, General Manager, Distribution Automation, G&W Electric Company
2
Photos courtesy of G & W Electric Company
Issue
3
1 Photo 1. Reclosers were installed on the two
Rubicon Technology, a major Midwest manufacturer of raw material used in making LCD chips, needed to expand its manufacturing operation to accommodate a substantial increase in business. Rubicon already had two plants that were filled to capacity so it decided to build a new facility that would more than double the output of its existing operations. Besides the need for a new facility, the industrial customer had several critical power requirements. One was for maximum service reliability because of the estimated millions of dollars of lost revenue if any significant downtime were to occur. This is a classic Premium Power Smart Grid application. The other requirement was an unusually short lead time to research, design, procure, test, and commission the best power distribution system for the application. After a thorough
overhead lines.
2 Photo 2. PNI-style switch with two automated source
ways, three load ways, and an additional way for PT protection only.
3 Photo 3. An RTAC, located in one of the padmount
switch control enclosures, served as the master control for reconfiguration after a fault occurrence.
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investigation, the industrial customer found a location near their existing sites and a municipal utility willing to take on the short lead time challenge. It chose a site within the city of Batavia, located 40 miles west of Chicago. These PTs provided real-time voltage values and power for the controls. A battery backup system was provided in the event of a widespread, extended power outage.
Solution
Batavia determined it needed a feeder restoration system that could automatically sense and isolate an electrical problem without dispatching a crew. The utility chose G&W because it offered a field-proven solution and was willing to work with the utilitys engineers to accommodate its specific requirements. G&Ws distribution automation system offered a pre-engineered package of field-switching devices and a complete control package, providing a single-source solution.
Operation
The automated system operated as an open loop with fault interruption occurring at the feeder reclosers. When a fault or voltage loss was detected, the line recloser would open to clear it. Fault indicators on the line ways of the switches were tied through the relays and back to the controller, which would then determine the location of the fault by which fault sensors had been activated. Once the fault was located, the controller would open the closest switches very quickly to isolate the faulted section and close the midpoint switch, if necessary, to allow power flow to all of the loads. Finally the recloser would close back into the re-configured circuit to restore power. This allowed all of the loads to be reenergized while the faulted line section was isolated. The RTACbased design offered excellent flexibility for future modifications and allowed all system currents, voltages, and power to be compiled into a single device. The system was programmed and tested to operate on its own with the ability to integrate to a future SCADA system.
System Configuration
The new industrial site already had two 35kV overhead distribution lines nearby. The municipality decided to tap off these lines and feed the new industrial plant underground through four padmount switches. The new plant was divided into 12 separate loads, with three loads being fed through each switch. Reclosers were installed on the two overhead lines, one feeding two switches and the other feeding the remaining two switches (Photo 1). One of the switches had a normally open point which would automatically switch from one source to another if a problem occurred. The switches incorporated two automated source ways and three, three-phase load ways (Photo 2). Each source way switch was controlled with an SEL-451 relay and incorporated a stored energy mechanism for high speed switching. An SEL RTAC (real-time automation controller), located in one of the padmount switch control enclosures, served as the master control for reconfiguration after a fault occurrence (Photo 3). Each switch had an additional way to protect the potential transformers (PTs), which were located in a side enclosure.
Solution results
The system was programmed and fully tested prior to shipment. All reconfiguration scenarios were confirmed and the reconfiguration time was verified as less than one second. The switches and reclosers were installed onsite and are fully operational. ei Mr. Avery, who has more than 25 years of experience in executive sales and marketing in the power industry, also has extensive international experience evaluating new markets and executing localization strategies.
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Big DataReshaping the Way Utilities Establish Grid Metrics

Lawrence Jones, PhD, Vice President, Utility Innovations & Infrastructure Resilience, Alstom Grid Inc.
ata is among the most basic element and perhaps the most valuable asset of any utility. Yet most utilities use only a small fraction of the data they possess. In current discussions about Big Data, we see potential for utilities to extract new insights and generate new value streams by harnessing their full wealth of available data. Instead of looking only at smaller data sets, utilities can now take a broad view of larger volumes of data captured from myriad systems and subsystems across the entire enterprise. This includes structured and unstructured data generated in real-time as well as nonoperational data. Utilities also can collect and use vast amounts of data from external sources like weather agencies and financial markets.
Utilities operations generate volumes of data every day, and deployment of Smart Grid technologies will exacerbate those volumes. Data is created in different departments and often functional silos including asset management, grid operations, planning, customer service, corporate finance, regulatory compliance, engineering, and design. That data typically is stored in separate data repositories, although some utilities are more frequently consolidating their gargantuan datasets in central locations. The largest consumers and producers of power grid data are the hundreds of millions of sensors and controls embedded in devices or installed in buildings, at substations, generators, transformers, and other equipment in electricity transmission and distribution networks. Discretely, continuously, or heuristically, these controls interact alone or in combination with other controllers using historical or real-time data and generating new statistics that are part of the utility data asset.
resilience to other system abilities such as flexibility, vulnerability, controllability, observability, configurability, dispatchability, interoperability, predictability, reachability, and securability. Metrics and key performance indicator (KPIs) typically are defined and assessed based only on a subset of a utilitys full trove of enterprise data. For example, metrics for grid reliability (e.g., SAIDI, CAIDI) are based on distribution management systems and outage management systems, while metrics for the health and maintenance of assets are derived from asset management systems. Similarly, business model KPIs may originate from regulatory and policy information and customer service metrics are the result of customer satisfaction surveys. Only in rare cases do utilities today assign KPIs using all available data at their command.
Correlation Analysis Supports Predictive Operations

Performing causal analysis in human-cyber-physical systems (i.e. Smart Grids and transactive energy networks) is difficult due to the complexity of such systems, which are in reality systems of systems (SOS) impacted by a large number of variables and phenomena. Causality-based metrics are useful understanding why the Smart Grid performs in a certain way. However, in an environment replete with complexities, uncertainties, and interdependencies, it may not be possible to identify and explain causal relationships. On the other hand, correlational analysis of Big Data coupled with predictive, statistical, and data mining tools can help utilities discover the degree to which two variables or metrics are correlated and the likelihood that one will impact the other. Correlation analysis does not negate the need to understand causation, but it does provide valuable additional insight to predict what-affects-what. With this information, more indepth analysis can be carried out to better understand the causal dimension of the problem. Typically, strong correlation means there is a high likelihood of a link between the two variables. A good characterization of this is given by Kenneth Cukier and Viktor Mayer-Schonberger in Big Data.1
Measuring Benefits of New Technologies

The need for new metrics to predict the performance of electricity grids in light of the new Big Data reality is gaining the attention of executives who must manage companies facing uncertainty brought on by higher penetration of variable renewable generation, demand response, distributed energy resources, etc. Utilities also have to cope with uncertainty about regulation, aging workforces, aging grid assets, and other external factors such as extreme weather events. Furthermore, with increasing investments in Smart Grid, policymakers, regulators, customers, shareholders, and utilities all want to measure the benefits of new technologies. Those benefits range from ways in which the Smart Grid improves
Cukier, Kenneth and Mayer-Schonberger, Viktor, Big Data: A Revolution that Will Transform How We Live, Work, and Think (2013)
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According to them, correlation helps us capture the present and predict the future: if A often takes place together with B, we will need to watch out for B to predict that A will happen. Using B as a proxy helps us capture what is possibly taking place with A, even if we cant measure or observe A directly. ...It helps to predict what may happen to A in the future. Arguably, no one can with absolute certainty predict when a blackout will occur, the number of customers who will be in the dark, the scope of damage to an electric power grid in the aftermath of major storm, the restoration time for customers, or what may cause a transformer to explode and when. But, through the use of predictive metrics and correlational analysis, one might be able to gain insights about the likelihood of such events happening. Big Data and correlational analysis can be used to solve difficult problems for which causal relationships cannot be easily identified nor explained. One problem is how to determine which manholes in major cities, e.g. New York, Rio de Janeiro, and London, need maintenance to reduce explosion risk. In New York City, Consolidated Edison (Con Ed) applied correlational analysis to historical big data about its power grid and was able to predict which of the hundreds of manholes in the city should be prioritized for maintenance thereby reducing fire risk and increasing resilience. Big Data solutions can also be used to design and analyze the efficacy of policies for tackling big problems such as global climate change, reducing carbon and water footprint, integration of disruptive technologies, and how to protect the power grid and other critical infrastructure from cyberattacks. To maximize the value extracted from their data assets, utilities must look beyond the primary reason for capturing and storing that data. Because data is reusable and inherently adaptable, its value can be extensible. An elegant metaphor for the renewable property of information is explained by Larry Downes in his book, The Laws of Disruption.2 He argues that Information cannot be used up. Once it has been created, it can be used over and over again. Most new information, moreover, is created from other information making it a renewable energy source. The total value of data will depend on the ability of the holder to find innovative ways to use it. The Con Ed example demonstrates these important properties of data by using decades of information about underground cables and maintenance records to solve a problem completely unrelated to the original reason for data collection.
Reinventing Business and Regulatory Models

Like Con Ed, other utilities and government agencies have amassed all sorts of historical data which could prove valuable in applying new Big Data and predictive analytics. Disruptive technologies (e.g., microgrids and photovoltaic rooftops) and industry restructuring (e.g., retail competition) are disrupting the traditional utility business model and transforming the way electricity is generated, delivered, and consumed. With correlation analysis and other big data analytics, utilities can discover how to adapt their existing business models in response to the changing industry landscape. Decision makers in the utility C-suite can make better decisions by monitoring changes in key performance metrics based on predictive analytics. Regulatory agencies such as NERC, FERC, and public utility commissions possess huge volumes of historical data. Predictive analytics can provide insights into what KPIs are effective in measuring how different regulatory policy signals affect the performance of utilities. Regulators also can use Big Data to design better electricity markets. NERC and other oversight agencies can mine their historical Big Data to help update and improve existing reliability metrics and develop new ones.
Predictive OperationsThe Next Big Thing

Making the most of Big Data will require fresh perspectives on its use and value. In order to take command of their data, utilities will need to acquire new staff to analyze, manipulate, and interpret large and complex datasets. Just as Wall Street attracted quants to make sense of massive volumes of financial data, utilities will need to recruit data scientists, statisticians, visualization, and cognitive engineersor retrain existing staffto extract greater value from their daily data deluge. The utility industry stands at the dawn of an era of Big Data and predictive analytics. Ultimately, the benefits of this new era will revolve around making better predictions in order to improve performance. Big Data and predictive analytics will require a new mindset about the kinds of metrics needed to manage utility companies and operate electricity grids in the face of uncertainty. It will usher in a new paradigm of predictive operations. Solutions to predict the performance of power grids and utilities as well as gain more value from all the data could be the next big thing. ei Dr. Jones is a member of NIST Federal Smart Grid Advisory Committee and editor of the forthcoming book, Renewable Energy Integration: Practical Management of Variability, Uncertainty and Flexibility in Power Grids.
Downes, Larry, The Laws of Disruption: Harnessing the New Forces that Govern Life and Business in the Digital Age (2009)
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How to Achieve Interoperable Products Based on Emerging Smart Grid Standards

James Mater, QualityLogic, Inc.
he Smart Grid industry has made great strides in establishing and maturing technology standards that facilitate interoperability of Smart Grid products. To achieve in-the-field interoperability, however, requires a standardized set of engineering test tools integrated with a robust certification program.
Engineering test tools are as essential to successful products based on interoperability standards as are the technical specifications themselves. Industry certification programs need to be part of a comprehensive set of test tools and a continuous development, test, and certification process. Benefits include accelerated interoperability, shorter development and certification schedules, and dramatically reduced engineering costs.
representations of time for different contexts, it wouldnt specify two different meanings of time. By the same logic, why would you have two tests that expect different results for the same definition of time? You might have context-sensitive definitions of time but for any specific context, youd want only one test result that proves that the product understands time in the context specified. Yet we find two glaring problems in the efforts to enforce standards for products claiming to conform to a standard through certification: competing test labs may develop their own sets of tests; and certification tests do not provide the richness, depth, and type of test coverage needed to ensure that compliant products will actually interoperate. The more exhaustive the test, the more expensive and time consuming it is.
One Standard, One Set of Tests

The whole point of an industry standard is to have one agreed upon definition of what a technology does and how it communicates. For instance, a standard may have a single definition of time. Two systems that conform to the standard would understand what each means when it communicates a timestamp. While a standard may specify different
Development Testing and Certification

Achieving interoperable products based on a technical specification requires an industry-standard set of tests for many more features and functions than are tested in a typical certification process, such as:
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Conformance test specifications address mandatory and profile-identified options as well as all options and features. Functional test suites (FTS) cover the entire technical specification including most commonly used optional features as well as those used for functional security. Comprehensive engineering tests (CET) are similar to FTS but go into more detailed testing, including illegal combinations. Interoperability test suites could consist of simulations of different products or applications. These tests must be from a single independent source or a carefully controlled coordination of multiple sources and updated in parallel with the evolution of the technology standard itself. The availability of an industry standard set of test tools can facilitate integration and improved efficiency and effectiveness of industry certification programs in several ways: If the certification program is a subset of broader conformance and interoperability, then preparation for certification is already embedded in the use of those tools. To the extent that a vendor acquires and uses industrystandard test tools in the development process, it is possible to streamline the certification process for those vendors. By making a comprehensive set of tests available to vendors early in development, feedback will improve the certification tests more rapidly than introducing certifications tests late in the process. varied as the standards themselves and the industry alliances that perform certifications. There seems to be several different, though not necessarily mutually exclusive, emerging models: A trade alliance funds the development of certification and pre-certification tools and owns them. There is a single set of tests but not in-depth engineering tests. The alliance develops the basic test specification but not specific tests or tools. It asks partner test labs to develop specific tests, creating multiple tests for the same features and functions. Slight variations can cause major interoperability issues. No certification program exists for a standard; each vendor develops its own. A consortium of customers ( e.g., utilities) funds an entity like EPRI to develop test tools for a standard. Then they donate these tools to the industry. These tools are not likely to address the breadth of tests that development needs and may become obsolete or independently maintained with diverging interpretations. The federal government (i.e., NIST) could continue to fund Smart Grid standardization, including specific tools and tests. This has similar challenges to funding as a customer consortium in terms of scope and sustainability. It provides a source of funding that can jumpstart a vigorous set of standard test tools if a long-term structure is also in place.
Who Pays for What?

Level of Interoperability
One reason that so much attention is being focused on Smart Grid tests and certification programs is that the technical, business, and financial models for testing and certification are as
Device Simulation Interop Test Additional Physical Layer support to FTS Full Conformance Test Spec and Test Cases (CET) Early Interop Tests Interop Testing
Functional Conformance Test Spec and Test Cases (FTS) Ad Hoc Tester Plugfests Pre-Certification Tests
Plugfests Certification Testing
Plugfests
2011
2012 Protocol Interoperability Roadmap

Figure 1 shows the relation between standardized functional and interoperability development tests and certifications.
2013
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Hypothetical Model What seems to be lacking in the Smart Grid ecosystem is the understanding and availability of the more comprehensive engineering test tools. Given twin goals of creating a comprehensive, supported set of standard development and certification tests for a standard and optimizing investment in such tools, it is instructive to review an example: A product based on an industry standard (e.g., SEP 2) may be used for energy management (e.g., a home system). An alliance to certify compliance exists. The typical vendor pays $5,000 to $10,000 per year in member fees plus staff participation. 50 major vendors develop products based on an industryaccepted technical specification for the interface to and behavior of the products. Customers may be end-users, utilities, and third parties that sell and support the products. The technology is complex. Developing a commercial-quality, supported, certification test may be $100,000; a full FTS $200,000; CET $400,000; interoperability tests $500,000. A full range of engineering test tools thus cost $1.1 million. Performance, security, and other tests are outside the scope of this model but nonetheless will be additional costs. Plugfests in the early stages of the technology development might cost a vendor $5,000 per event. Organization of such events costs $25,000. Assuming that vendors will not produce commercial-quality tests, they might develop what they need for 50 percent of the estimated $1.1 million. This does not include ongoing costs of support and maintenance, which could add another $2.75 million. They may spend an additional $500,000 to $1 million in pre-certification tools, engineering time, plugfests, and certification fees. Someone could fund the development of a dynamic set of standard tools and make them available to vendors engineering teams. It could be an alliance, government entity, consortium, commercial test tool developer, or other entity capable of putting up $1.1 million for development. On a commercial basis with an investor putting up the $1.1 million and expecting a reasonable return on investment, tools might sell for $100,000 or be licensed at $25,000$50,000 per year, including support and updates. For an individual vendor, this means investing $100,000 plus annual support of $15,000 or an amount based on annual license fees of $25,000$50,000 per year. When this is compared to investing $550,000 plus $55,000 per year for support, most vendors would purchase the commercial tools if they were available.
The integrated model brings several major advantages: All vendors use the same standard tests. Vendors save significant investment and engineering time that can be devoted to other, higher value activities. Vendors get supported, maintained, and well-documented tests faster than if they developed their own. The industry alliance saves costs to develop the certifications, making pre-certification tests lower or unnecessary. The industry reduces the total investment in test tools by a factor of 5X while increasing interoperability. Instead of collectively investing $30 million in test tools, the industry can invest $6 million and achieve better results.
Conclusions and Recommendations

Achieving interoperable products in the Smart Grid domain is based on emerging industry standards. Key conclusions are: For every adopted technology standard there needs to be an equally robust standard set of engineering tests for conformance and interoperability. While the industry understands and supports standards development, understanding of and support for comparable engineering test tools lags significantly behind. Industry certification programs are generally not comprehensive and only test a subset of functions and features for conformance and interoperability. Numerous business models can address investments needed to achieve tests that produce interoperable products. If the industry funded a common set of engineering tests for a given standard, it could accelerate interoperability significantly. Based on these conclusions, we recommend that industry alliances: find a mechanism to develop or support development of a comprehensive set of engineering tests and test tools that are independent design certification programs to utilize a sub-set of the engineering tests develop incentives to encourage the use of engineering test tools ei Mr. Mater is chair of Smart Grid Oregon; work group chair of Smart Grid Interoperability Panel, Test and Certification Committee; and holds membership in the Steering Committee, First International Transactrive Energy Conference; Gridwise Architecture Council; and Project Review Board, PNW Regional Smart Grid Demonstration Project.
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Interteks Role in Moving the World toward a Smarter Grid

Julie Chavanne, Communications Director, ESFI
unny Rai, regional vice president for Interteks Renewable Energy Business Line, provides strategic directions for its Smart Grid, photovoltaic, wind, and semiconductor businesses.
Q: What are some of the identified challenges brought

on by the advent of the Smart Grid? Rai: One major challenge is the misinterpretation of signals, which could result in a device getting turned on or off at the wrong time. Also, some existing equipment, like transformers outside homes, are designed for a certain duty cycle. With efforts to shave the peaks, heavy power-related activities like charging cars could be moved to late night hours. This solution might not allow enough time to recuperate before going back into a peak cycle.
In his 25 years with Intertek, Mr. Rai has helped several equipment manufacturers and users establish product safety and regulatory compliance programs. He is also implementing the end-to-end Smart Grid testing, certification, and consulting services for safety, compliance, and interoperability. A recognized expert in the field of solar module testing and certification, Mr. Rai shed insight on Interteks pivotal role in moving the world toward a smarter grid in a recent interview with electroindustry.
Q: What are some of the widely adopted standards used
Q: Intertek provides a wide range of services across the
today to regulate the Smart Grid, and who is involved in creating these standards?
Smart Grid. What is included in Interteks portfolio of Smart Grid solutions and services?
Rai: Intertek offers precision testing, certification, interoperability, and expert consulting services from a single source. These services not only include traditional safety evaluations to ensure that equipment meets recognized international and industry standards, but also go beyond to test that radio frequency levels are in compliance with Federal Communications Commission guidelines. Additionally, we offer an extension of our standard testing services to include communication device testing to ensure that the infrastructure can deliver the 24/7 high speed communication necessary for the deployment of the Smart Grid. As for certification and interoperability, Intertek serves on the Smart Grid Interoperability Panel (SGIP), which develops the National Institute of Standards and Technology (NIST) standards for Smart Grid interoperability. Intertek is the exclusive testing and certification partner, providing conformance and interoperability testing and certification for OpenADR 2.0 compliant products. OpenADR is the most comprehensive standard for automated demand response, which provides the industry with a solution for balancing the supply and demand across the electric grid in real-time. Lastly, our global network of experts and laboratories can help deploy devices and Smart Grid programs in a speedy and cost efficient manner no matter where installation or manufacturing facilities are located.
Rai: The safety standards for equipment remain the same as technologies that preceded the Smart Grid including UL, ANSI, and NFPA standards. The OpenADR standard was developed to provide both a common language and a common platform for all providers and consumers of demand response through the functions and features of a demand response automation server. The interoperability standards are developed by NIST, which brings together manufacturers, consumers, energy providers, and regulators. SGIP was established to support NIST in fulfilling its responsibility under the Energy Independence and Security Act of 2007 to coordinate standards development for the Smart Grid.
Q: What Smart Grid developments can we anticipate in

the near future? Rai: As more and more utilities continue to adopt Smart Grid and interoperability standards, we will continue to see sustained growth for adoption rates. Large utilities, with the support of public utility commissions around the world, are moving toward adopting OpenADR as basic communication standards for Smart Grid communications between the utilities and their customers. ei Ms. Chavanne (julie.chavanne@esfi.org) promotes ESFI through media relations, marketing, public relations, and communications.
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Securing the
Smart Grid
Bob Fesmire, ABB Strategic Communications Manager, North America
ecurity is primarily about people, processes, and technologies working together to prevent an attack. It is not just technology or a set of procedures, and it is not a one-time investment. There is no single solution that is effective for all organizations or applications, but effective solutions can be realized through the cooperation of vendors, systems integrators, and end users.
Ultimately, security is about managing risk, but the task of defining security threats to power utility systems is a difficult one, in part because there is relatively little statistical data on security breaches. Security threats also do not know technical limits (i.e., there are many potential vectors of attack that might be used to circumvent security measures). This is why security experts often refer to the need to have defense in depth, a combination of policies, procedures, and technologies that are mutually reinforcing. Another distinction that should be made with regard to security in utility systems is the relationship between security and reliability. These two objectives are not always aligned, given the priorities behind each of them. For example, the increasing amount of data flowing out of substations back to utility control centers is highly useful for managing reliability, but it presents additional challenges from a security perspective. Modern routable communication protocols are seen as vulnerable, and with the proliferation of intelligent electronic devices (IEDs), the utilitys exposure to cyberattack seems to grow by the day. Connections to and from external networks (e.g., office intranets) to industrial automation and control systems have opened systems and can be misused. Cyberattacks on industrial automation and control systems are real and increasing, leading to large financial losses. However, a return to older serial protocols would not allow the bandwidth required to run advanced applications like widearea monitoring, and would also not offer nearly as much as IP-based protocols in the way of security tools to harden utility systems. Ultimately, though, reliability and security are on the same team. If a security breach allows an intruder to disrupt the utilitys operations and cause a blackout, then clearly reliability has also been compromised.
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Challenges for Utilities

Security within the modern utility organization is by necessity a complex and high visibility function. Utilities must assess the security of their existing systems, evaluate and plan for new costs associated with security, craft security policies and procedures, train their employees on those policies and procedures, and establish a management mechanism that ensures all of these things get done in a thorough and timely fashion. Managing security as a corporate function requires balance in order to draw on the skill sets of the user and the security professional alike.
using and listening to alarms removing unused software from servers and workstations disabling unused services removing unused accounts changing default passwords regularly verifying system setup on a redundant or test system, not the production server using host-based firewalls regularly updating antivirus software
Everybodys Business
Security must be formally established within the utility and that can sometimes present a problem in terms of who owns security within the company. Cross-functional teams are vital because security spans the entire organization (and because similar challenges are faced in different departments), but the lines of responsibility should be well defined and a security czar or stand-alone department should coordinate the various activities. To be successful, the cybersecurity program must integrate strategy and investment, policies and procedures, awareness, and key partnerships. In addition, utilities need technical controls like data encryption, antivirus software, firewalls, etc.; physical controls such as perimeter controls; and a cybersecurity program that is supported by the IT security management and operations. When we look at the organizations involved in maintaining utility system securityvendors, integrators, end users its fair to say that security is everybodys business. To the extent these groups cooperate with one another throughout the system lifecycle, security will be enhanced. At the same time, perhaps the most important aspect of security for the various players to keep in mind is that it is a journey and not a destination. There will always be new threats. Likewise, there will be new methods and technologies for meeting those threats. Vigilance, cooperation and technical expertise, when applied in unison, offer the best defense. ei Mr. Fesmire is the co-author of Energy Explained, a book providing an overview of the energy industry for the lay reader.
For the utility, security begins with policies that address human behavior, which is the basis for all security whether technical, procedural, or organizational.
An additional challenge to utilities includes liability as a result of non-compliance with regulatory directives or industry best practices. For the utility, security begins with policies that address human behavior, which is the basis for all security whether technical, procedural, or organizational. Relatively few security breaches can be attributed solely to a technological failure. What is far more likely is that a technological weakness will be exploited through the application of social engineering on the part of the intruder, or through a seemingly innocuous oversight on the part of the system operator. Monitoring log files is an important, if unglamorous, way for utilities to keep track of the nature and frequency of attempted security breaches their systems are facing. If all goes well, policies, systems, and procedures in place will deter the garden-variety threat, but log files provide valuable information on unsuccessful attacks that may be applied to preventing more sophisticated ones. There are many simple things that utilities already do to maintain IT system security. They may seem obvious, but the key to their successful application lies in the organizations ability to stick with them. Some examples include:
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Overview of EEI-NEMA Cybersecurity Supply Chain Integrity Collaboration Efforts

Steve Griffith, PMP, NEMA Smart Grid Industry Director
lthough one of the objectives of the 2013 NEMA Smart Grid initiative approved by the NEMA Board of Governors in July 2013 was to collaborate with Edison Electric Institute (EEI) to define an agreeable cybersecurity policy, NEMA and EEI actually began discussions on a shared cybersecurity interest one year earlier.
According to an EEI cybersecurity study completed in 2012, supply chain disruption and compromise was identified as one of the nine major threats facing the electric utility industry. EEI recognizes that addressing this threat may require collaboration with other electric industry organizations. NEMA is a logical starting point as it represents electrical manufacturers who supply products and services to electric utilities. NEMA and EEI staff met in December 2012 to continue working toward potential deliverables that put forth an industry position that cybersecurity aspects should be built-in and not bolted-on manufacturers products. NEMA and EEI reasoned that additional federal legislation would be required for liability protection. There was also a consensus that both entities can work together to form the basis of a joint statement/guideline that addresses cybersecurity supply chain integrity. Once that is developed, it would ideally require a third-party security association to validate it, and then government acknowledgment. A subsequent meeting was held in February 2013 with Doug Myers, chief information officer of Pepco Holdings (an EEI member) and co-lead of EEIs Chief Information Officer Executive Advisory Committees (CIO EAC) Cybersecurity Supply Chain Integrity Sub-team. At that meeting, Mr. Myers reviewed four key areas in the supply chain framework where cybersecurity plays a role: technical standards, procurement, manufacturing, and ongoing assurance.
Key takeaways included: Specific cybersecurity aspects need to be included in the technical standard. The corresponding cybersecurity language would then be embedded in subsequent procurement documents. There should be more up front information sharing between purchaser and supplier. Manufacturers will need to validate compliance with their product designs. Finally, ongoing assurance is needed once these products arrive at the purchasers docks (i.e., tamper resistant packaging, software/firmware assurance, perhaps a post-delivery onsite inspection). NEMA Smart Grid Council members Panasonic and Eaton Cooper Power were present and in agreement with these takeaways. On March 20, NEMA Emerging Technologies Panel chief technology officers (CTOs) and EEI CIOs met during the EEI CIO EAC quarterly meeting. NEMA CTOs, including Eaton, GE, Honeywell, S&C Electric, Schneider Electric, and Siemens Corporate Technology, presented an outline for supply chain integrity. EEI and NEMA believe there should be a policy component to cybersecurity that is focused on indemnification and liability protection. Addressing cybersecurity in the supply chain is an important topic for both EEI and NEMA from both a policy and technical perspective. By working and collaborating together the two organizations can mitigate its vulnerabilities. ei Before joining NEMA, Mr. Griffith (steve.griffith@nema.org) managed projects in communications and IT networking infrastructures for Department of Defense facilities. An engineer, he also holds a PMP certification.
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Improving Grid Resiliency through Cybersecurity

David Sampson, Senior Security Engineer, GE Digital Energy
he electrical grid is one of our nations most important infrastructure assets. Every aspect of our economy and modern living depends on the reliable flow of electricity. A system failure due to a cyberattack, especially during severe weather or other events, can be devastating.
As utilities rush to restore service during an outage, they need to have confidence that the system can be restored to a known good stateensuring a system or process starts from and operates in a verifiable and acceptable condition. This confidence depends in large part on a utilitys ability to identify intentional or unintentional changes to operational programs or equipment settings, which could cause additional damage or prolong outages if left undetected. As a result, utilities must maintain a high level of trust in their systems to ensure the return to a known good state. Effective cybersecurity requires multiple layers of defense to protect the core of an operation from unauthorized intrusions and activities. Common defense-in-depth applications include behavioral policies, firewalls, intrusion detection systems, and patch management processes. Trust-based controls can enhance cybersecurity and improve overall network resilience.
enough to ensure the system is secure. Secure operations require knowledge that the equipment is configured and is operating correctly. If both conditions exist, then the utility has confidence in the trust level of the grid and will know that a specific level of security is in place to help defend against intrusions and unexpected events.
Determining Consistent Operation

When a utility powers up complex equipment, the operator must have confidence that the asset will consistently perform in a known good state. To achieve this, modern equipment often includes a trusted platform module (TPM) to control the devices boot sequence. A TPM is an integrated circuit that measures the software resident in the equipment when it starts. At power-on, a TPM will measure and validate the startup code by taking a hash on the file and comparing it to a known good hash. A cryptographic hash function is an algorithm that takes a block of data, such as a file or program, and returns a unique number that is similar to a serial number. The (cryptographic) hash value establishes the identity of the device, with any subsequent changes to the data or program resulting in a change to the hash value. By comparing the measured hash value to the known value, the TPM can identify code modifications and alert the utility operator, who in turn will determine if the equipment should be permitted to come online. TPM functionalities can ultimately improve a utilitys situational awareness and strengthen the resilience of its networks to a range of threats. Controlled equipment configuration consists of two activities: establishing operational parameters and updating embedded software. Equipment operators need to know if and when operational parameters change and fall out of tolerance limits. Utilities also need the capability to remotely and automatically update embedded software as security patches become available. Currently, most utilities manually configure and update embedded software, either in their center or by sending a technician to the field. This is a slow and costly process that often results in multiple revision levels running across a utilitys equipment base. Historically, utilities have been slow to implement timely updates. By deploying a modern two-way communications network, a utility can remotely configure a devices operational parameters and continuously monitor that equipment for anomalies or changes to settings. If such events occur, the control center is automatically notified and an operator is assigned to determine a course of action. In this scenario, the operational center maintains the configuration of all devices in a central secure database.As unauthorized change alerts are received, staff can take action to
Establishing Trust
Todays modern electrical grid is comprised of many different assets that work together to control the flow and delivery of power. The utility relies on each piece of equipment to perform a specific function. Although the operator implicitly trusts the equipment to continuously perform in the intended manner, the possibility exists than an individual, either with evil intent or inadvertently, might modify the equipment settings or operating program, thereby resulting in damaged assets, extended outages, or compromised safety. This raises questions fundamental to the establishment of trust: ProvenanceWho built the equipment? Who delivered it? Who installed it? ManagementWho manages it? Who might have tampered with it or modified it? StatusIs the equipment patched? Is there a virus? Is there a rootkit? These issues concern supply chain management. Utilities control their supply chains and only have authorized trained personnel that install and maintain equipment. Utilities conduct system performance tests to ensure that components and systems are operating correctly after installation and whenever they are modified. However, these operational tests are often not
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determine the appropriate next steps including remotely pushing the correct configuration settings back out to the device.If an authorized technician changes the device in the field, the utility staff in the control center can pull the configuration from the reprogrammed device and update the central repository with the new configuration.As with TPM functionalities, configuration control can improve utility response time to unexpected events and improve system resiliency. operations. To avoid the simultaneous operation of inconsistent software versions, the system that updates the embedded software must function in a full transactional mode. This allows an operator to specify a group of devices to be updated with a single software package. At the end of the updating process, all equipment will be running the same revision level; however, if one device fails to update, all of the devices roll back to their previous version to ensure consistent and reliable operations.
Software Updates
Vendors periodically release updates to software programs that run utility systems and equipment. In current configuration control practices, utilities typically dispatch a technician to manually update the devices. This leads to a similar problem of multiple software versions running across a utilitys equipment base. Using the same communications network described above, utilities can remotely update field devices from the control center. This process can be secured through a combination of vendor-specific private key certificates and embedded public key certificates. Specifically, a software vendor will digitally sign a software update with a unique private key certificate. By using the vendors public signing key, the utility can verify that the software update came from that vendor and was not altered in transit. The vendor will also embed the public key certificate of authorized users in the hardware prior to shipping. This methodology of certificates enables a device to verify a users signature prior to accepting a software update, thereby introducing an additional trust-based control to the utilitys
Roadmap Recommendations
While trust-based controls are typically designed to defend against cyber-based threats, these same controls can drastically enhance a utilitys ability to detect and recover from equipment anomalies or system integrity problems, especially during weather-related events. To establish an appropriate level of trust, utilities should focus their efforts on three activities: Ensure that equipment consistently starts in a known good state through the use of TPM and software verification techniques. Deploy an automated secure communications network to control and update equipment operational configurations. Utilize the secure communications network to conduct transaction-based software updates of field devices. ei Mr. Sampson has more than 30 years experience in systems, software, and security design.
What Do Consumers Expect from the Grid?
Anto Budiardjo, Clasma Events, Inc.
For years, the utilities sector has been working on the Smart Grid, or perhaps working on a path to modernize the grid from a century-old wonder. One hundred years ago, nobody knew what a grid could do. People probably just wanted better illumination. With Smart Grid being a more radical, information-controlled, bidirectional power flow system, how do consumers know what to ask for? And how does the industry deliver it? This is the current dilemmadeveloping a grid that is paid for up front with mostly unknown benefits. For past six years, the GridWeek advisory board has been taking the pulse of the industrys challenges. It will address some of them during GridWeek 2013, Anticipating Consumer Expectations, scheduled for October 2830 in Washington, D.C. A key part of anticipating expectations is looking back. We know that the grid is reliable when weather and environmental issues are stable. But
as we move toward a more complex world, the delicate balance of the electrical system can get scrambled quite easily. The first challenge is to change the discussion from a reliable grid to a resilient one. Resiliency is the ability to withstand or recover quickly from difficult conditions. From microgrids to local generation and energy storage, we need to take a hard look at the reliability assumptions weve banked on for a century. What are the roles of utilities, governments, prosumers (consumers who also produce electricity), and how can critical infrastructure players better collaborate to make power more resilient? Another focus of this years GridWeek is the industrys dialog with consumers as they become prosumers. Should the industry be using the term partner instead of customer to better understand their needs? Explore what consumers need at GridWeek. Visit www.GridWeek.com
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SGIP 2.0 Exceeds Expectations

John Caskey, Assistant Vice President for Industry Operations; Vice Chair of SGIP Board of Directors and Technical Committee Chair
he Smart Grid Interoperability Panel (SGIP) recently underwent a major transformation. The original SGIP was established in 2009 to support the National Institute of Standards and Technology (NIST) in fulfilling its responsibilities to coordinate standards development for the Smart Grid. This responsibility was given to NIST via the Energy Independence and Security Act of 2007.
In this act, NEMA was asked to support NIST in the Smart Grid effort to develop a Smart Grid framework and to coordinate the development of Smart Grid interoperability standards. NEMA has been at the forefront of these activities even before the creation of SGIP. Until recently, the administration of the NIST Smart Grid effort was funded entirely by NIST for roughly $4 to $5 million per year. However, NIST envisioned that at some point, the control (and funding) of the SGIP would be transferred from NIST to the private sector. This handoff was accomplished on January 1, 2013. The new organization was incorporated in Delaware as SGIP 2.0, Inc. NEMA loaned Paul Molitor (NEMA Smart Grid Director at that time) to the new organization as the interim executive director until a new executive director (Patrick Gannon) could be hired. In addition, John Caskey (NEMA Assistant Vice President for Operations) serves as an officer of the SGIP 2.0 corporation, and is also the vice chair of the board of directors and chair of the technical committee. NEMA has invested not only a lot of money, but also invested a lot of labor to make the new organization successful. Its investment has been complemented by numerous NEMA members supporting the new organization in a variety of
functions. The most notable is John McDonald of GE who is serving as the chairman of SGIP Board of Directors. As of April, the membership of SGIP 2.0 had grown to more than 170 paying members, representing more than $1 million in revenue to the new organization. SGIP 2.0 also has entered into a collaborative agreement with NIST to receive $750,000 in funding from NIST in 2013 and $1 million in each of 2014 and 2015. In essence, the new SGIP organization has quickly grown into a $2 million per year organization that can sustain not only the business functions of the new corporation, but also effectively manage the technical work needed to support NISTs obligations under EISA 2007 and move Smart Grid interoperability forward. According to George Arnold (NIST Director, Smart Grid and Cyber Physical Systems Program Office, and National Coordinator for Smart Grid Interoperability), SGIP has been a remarkable success. It has empowered a standards coordination process that is broader, faster, and stronger. Weve been able to make a great start on achieving our long-term goal of Smart Grid interoperability. Were delighted that private industry has now been able to take over its proper role in our American standards process, which is built on industry-led, voluntary standards. (NIST Engineering Laboratory Newsletter, Spring 2013) ei Mr. Caskey (john.caskey@nema.org) was appointed by Secretary of Energy Steven Chu on January 16 to the Appliance Standards and Rulemaking Federal Advisory Committee (ASRAC). He has supported various Smart Grid activities at DOE, NIST, FERC, Edison Electric Institute, Electric Power Research Institute, IEEE, and Power and Energy Society. He also served as chairman of the Smart Grid Task Force for IEEE Surge Protective Devices Committee.
Learn more:
Governments and industries worldwide are looking to SGIP to assure that the thousands of components in a modernized electric system can operate and communicate seamlessly with one another. Learn more at sgip.org.
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Electroindustry News
NEMA Hosts First Meeting of US TAG to IEC TC120, Electrical Energy Storage Systems
Dr. Mitsuru Toyoda, Toshiba, IEC TC120 Assistant Secretary, explains the proposed scope and organization of the committee to the U.S. TAG. Photo by Ryan Franks
In March, 30 energy-storage industry experts gathered in Rosslyn, Virginia, for the first meeting of the U.S. TAG to the newly-created IEC TC120 Electrical Energy Storage Systems. This technical committee is one of the first to take a systems approach to standardization in the IEC. The U.S. TAG has attracted interest and participation not only from manufacturers, but also users, testing labs, and other industry stakeholders.
The highlight of the event was the attendance of five members of international leadership from Japan and their presentation on the preliminary thoughts and scope of the committee. According to IEC TC120 Secretary Dr. Hideki Hayashi, the group made the trip because U.S. participation was critical to the committee having success on the international stage.
A delegation from the U.S. TAG is now looking forward to attending the plenary meeting of IEC TC120 in Tokyo in July to finalize the scope and work program of the committee. ei Ryan Franks, Program Manager | ryan.franks@nema.org
NEMA to Convene Members for Recycling Summit

On behalf of its members, NEMA supports appropriate end-of-life management of electrical products. The preferred option in most cases is recycling, particularly if the product contains potentially hazardous materials or provides an economic benefit once recovered. Recycling is economically and operationally complex; however, it can also be a contentious political issue. Several NEMA sections that supply consumer oriented products (e.g., lamps, batteries) have wrestled with recycling challenges for years. Others have turned their attention to the issue more recently in response to regulatory, environmental, or financial considerations. Virtually all activity in NEMA devoted to recycling takes place in silos, but with little, if any cross-sectional collaboration. NEMAs upcoming Recycling Summit aims to address this lack of communication by bringing the industrys collective expertise into the same room to discuss whether and how sections can work together to find solutions. This one-day event will take place from 8:30 a.m. to 4:00 p.m. EDT on Tuesday, July 30, 2013, at NEMAs new conference center, which is scheduled to open later this spring. The agenda will include a review of existing NEMA recycling initiatives, a presentation by a leading waste management company, an outside guest who will discuss how another industry sector has addressed the issue, and ample time for open discussion. Any NEMA member company with an interest in this topic is encouraged to send representatives to this summit, either individually or as part of a product section delegation. Those wishing to attend or to obtain additional information may contact Mark Kohorst of NEMA Government Relations (703-841-3249, mar_kohorst@nema.org). ei Mark A. Kohorst, Senior Manager of Environment, Health, & Safety | mark.kohorst@nema.org
47
Kerry McManama of Underwriters Laboratory Retires
USNC/IECEx Past Chairman Kerry McManama, who retired from UL in April, started as an engineer in industrial control equipment in1992 and rose to global general manager of ULs Hazardous Locations and Explosion Protection business. Mr. McManama leaves behind an indelible contribution to the development and promotion of the IEC conformity assessment services in the field of explosive atmospheres. Under his leadership, a working group of the U.S. National Committee developed a proposal for U.S. participation in IECEx System. The working group is credited for establishing the USNC/IECEx in 2001 as a standing committee of the USNC/IEC Council, operating under its own rules of procedure, and reporting to the USNC/Council as a non-voting member on activities in its area of responsibility. He was elected to serve as its first chairman and chosen to head the U.S. delegation to all international IECEx meetings. In stepping down from membership in USNC, CAPCC, and USNC/IECEx committees, Kerry notes that he has enjoyed his past participation in these IEC-related activities and has always considered it an honor to be entrusted with the leadership opportunities granted to him. ei Joel Solis, Conformity Assessment Manager | joel.solis@nema.org
Kerry McManama (far left) leaves an indelible contribution to IEC conformity assessment services. Photo by Joel Solis
Bill Beile Awarded CANENA Chairman Gavel

CANENA Technical Harmonization Subcommittee 23A, Cable Management System, bids farewell to Charles (Bill) W. Beile, one of its organizational members. Bill is best described by his friends and colleagues as an industry leader, stalwart, and visionary. He was an early adopter of the CANENA vision of reducing the complexity inherent in developing electrical products intended for the Americas by harmonizing electrotechnical requirements. Under his leadership, the committee produced and now maintains two tri-nationally harmonized standards for electrical metallic tubing and electrical rigid metal conduit. Bill has served as chair since the inception of the committee
Les Easter (left) presents Bill Beile with the CANENA Chairman Gavel Award. Photo by Joel Solis
in 1992 and has held numerous committee meetings. His successor, Les Easter (Allied Tube & Conduit), presented Bill with the prestigious CANENA Chairman Gavel Award at the Allied Tube & Conduit manufacturing facility in Harvey, Illinois. As CANENA General Secretary, I know Bill to be an imposing chairman having demonstrated the highest knowledge of standards and standardization. The CANENA community will miss his humor and the enormous support he gave to anyone who sought it. ei Joel Solis, CANENA General Secretary | joel.solis@nema.org
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Lutron Founders Honored
Jim Pauley Inducted into Hall of Distinction

The University of Kentucky (UK) College of Engineering has named Jim Pauley to its Hall of Distinction on the basis of his exemplary career achievements and outstanding character. He is senior vice president of external affairs and government relations at Schneider Electric USA, chair of the NEMA High Performance Buildings Council, and chair of the American National Standards Institute Board of Directors. More recently, Mr. Pauley oversaw the development of Schneider Electrics government affairs organization and the creation of
Da Vinci Science Center (DSC) Chairman Frank K. Schweighardt, Ph.D (left) presented the Corporate Grand Maestro Hall of Fame Award to Lutron Electronics founders Joel and Ruth Spira in April. The award recognizes Lutrons substantial contributions to the scientific community of eastern Pennsylvania and western New Jersey. As part of its ongoing energy-saving awareness campaign, Lutron presented DSC with an interactive exhibit that teaches children how much energy can be saved by dimming the lights. Courtesy of Lutron
the Schneider Electric University Partnerships Program, which works to build relationships with universities in support of increased energy safety, efficiency, and productivity. ei
2013 Illuminations Weekend

The Breakers
Registration Now Open!
NEMAs 87th Annual Meeting
Palm Beach, Florida Friday, November 8 and Saturday, November 9, 2013 Early Registration (June 1 to August 30): $895 per guest Regular Registration (August 31 to November 1): $995 per guest Spouse/Guest: $225 per guest To register go to: www.nema.org/Illuminations To make hotel reservations call: 1.855.251.9315. Ask for: NEMA 87th Annual Meeting Special room rate: $299 Deadline is October 16
IW-2013-AD-7.5x4.875.indd 1
NEMA electroindustry 2013 5/21/2013 2:07:10 PM June
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TOP 10 U.S STATES BY ELECTRIC VEHICLE & SMART GRID AWARENESS
TOP 10 U.S. STATES MOST LIKELY TO BUY AN EV TOP 10 U.S. STATES MOST FAMILIAR WITH THE SMART GRID
9.0 7.8 7.8

GA NY
9.7 10.0
NC CA MI
10.3 10.5 SC
AZ NJ WA
52.9 39.3
(% FAMILIAR WITH)
35.2 35.0 35.0 34.2 33.3 33.3 32.6 31.3
7.5 VA % state
(% LIKELY TO BUY)
11.5 15.8
MA MD NY TX WA CA IN LA IL NC
SOURCE: ZPRYME AND PENNENERGY RESEARCH SURVEY OF A NATIONALLY REPRESENTATIVE SAMPLE OF 2,000 U.S. ADULTS CONDUCTED FROM FEBRUARY 2013 TO MARCH 2013. U.S. STATES DEFINED: AZ: ARIZONA, CA: CALIFORNIA, GA: GEORGIA, IL: ILLINOIS, IN: INDIANA, LA: LOUISIANA, MA: MASSACHUSETTS, MD: MARYLAND, MI: MISSOURI, NC: NORTH CAROLINA, NJ: NEW JERSEY, NY: NEW YORK, SC: SOUTH CAROLINA, TX: TEXAS, WA: WASHINGTON
PENNENERGY.COM/POWER
ZPRYME.COM / SMARTGRIDRESEARCH.ORG
Charticle courtesy of Zyprime
Listen Up!
Electric vehicles remain a hot topic within our industry. Whats new? Tune into NEMACast, the podcast of the electroindustry. What are the short- and long-term benefits of investing in electric vehicles? (Part 1) ANSI EV Roadmap Now Available (Part 2) Becoming EV Ready through Electrical Infrastructure (Part 3) What needs to happen to make EVs mainstream? (Part 4) Subscribe at podcast.nema.org/podcast.php
50
EVSE-Ready and Smart GridWhat Does It All Mean?

Developed by NEMAs Electric Vehicle Supply Equipment/Systems (EVSES) Section, EVSE-Ready is defined as a dwelling unit and commercial parking location having a cable raceway or dedicated circuit leading from the electric panel to an outlet or junction box in the garage, carport, or other designated parking location. EVSE-Ready buildings will facilitate the deployment of electric vehicles (EVs) by lowering installation and infrastructure costs. It is significantly less expensive to initially make a building EVSE-Ready than to install a charging system into an existing one. The estimated installation costs ($500 to $2,000 residential; $3,000 to $8,000 per charging station, commercial) depend on existing construction and electrical infrastructure. An EVSE-Ready charging location must have: a raceway not smaller than size to accommodate future conductors of a separate branch circuit intended to supply a future electric vehicle charging system, or an individual branch circuit installed with a minimum rating of 40 amperes at 208 or 240 volts. The EVSES Section encourages local jurisdictions to establish a policy of EV-Ready by ensuring that permits are easy to obtain, tax credits are established, and potential revenue streams from installation and use will be examined. The U. S. Department of Energys Pacific Northwest National Laboratory (PNNL) and electric vehicle service providers have announced an agreement they say will result in wider adoption of plug-in EVs (PEVs) by using them to help make the electric grid more stable. This will help achieve environmental, economic, and energy security goals.
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Stabilizing the Grid Grid-friendly charging systems will also improve grid performance, turning PEVs and their chargers into a valuable solution to a broader challengegrid stabilization. New technology can constantly monitor the grids alternating current frequency and vary car charging rates in response. If there is a sudden drop in grid frequency, the charging system will stopa function that acts as a shock absorber for the grid. While quick drops are relatively small, they signal that a fault has happened and that load and power generation is out of balance. When load is scaled back, balance is restored. Traditional power plants conduct continuous electricity generation adjustments to ensure an almost constant grid frequency. But as power generation grows from variable energy sources like wind and solar, the overall capability for power plants to effectively respond is reduced. Frequencyresponsive technology from PNNL adds grid frequency support capability to vehicle charging stations. When millions of PEVs are charging at once, adjusting the overall charging rate can help
control grid frequency, thus supporting integration of variable energy sources. According to PNNL lead engineer Michael Kintner-Meyer, one million owners plugging in their vehicles after work could cause a major strain on the grid. A grid-friendly controller could prevent those peaks in demand and enable the existing grid to be used more evenly. Our studies have shown that those who use the technology could save $150 or more a year on their electricity bill, and they could potentially receive rebates for providing shock-absorbing services to the grid operator, he said. But to get to this point, new and existing residential and commercial facilities must be EV-Ready. This means that to have complete systems, the EVSE must be a part of the Smart Grid and provide regulation service to the system. ei Harry Massey, Industry Director | harry.massey@nema.org
51
Code Actions/Standardization Trends

North American Fast-Track Harmonization for EVSE Successfully Concluded
Readers may recall that in 2011 NEMA started the Electric Vehicle Supply Equipment (EVSE) Section. Its product scope covers the equipment that dispenses energy to electric vehicles (EVs). Membership has now expanded to 18 companies with others pending. Our success is based on the fact that from the very beginning NEMA has positioned itself very aggressively as the EVSE industry representative promoting members interests on a number of technical and commercial fronts. Members realized from the beginning that the EV industry cannot be successful if the infrastructure supporting it is not standardized for interoperability and supported by safety standards and installation codes. The main goal of the EVSE industry is to rapidly build the infrastructure needed to support the anticipated EV growth in the U.S., Canada, and Mexico. Since the three countries have the same electrical infrastructure, in principle, they need the same type of electrical equipment to charge EVs. The automotive industry has done a good job of standardizing the connectivity between the EV and the supply equipment. SAE J1772 describes the mechanical configuration for the coupler and basic interlocking features to ensure the car is safely stopped during charging. The product-intrinsic design safety is covered typically by standards written by reputable standards development organizations (SDOs) that usually include industrys participation. SDOs involved in the EVSE industry in Canada, Mexico, and the U.S. are CSA, ANCE, and UL respectively. We had previously reported that UL was the first out with a number of EVSErelated standards. CSA responded to the certification needs of the young market with a number of technical information letters, intended to be used temporarily until the documents would evolve into legitimate standards. The problem for the EVSE industry was that the Canadian documents were different than ULs. That meant that for no safety or technical reason, the products would have to be tested differently in the U.S. and Canada, ultimately resulting only in added certification costs. Faced with this issue, the EVSE industry asked all SDOs involved to respond to the urgent market need with an out-ofthe-box harmonization process of the certification standards. NEMA-led negotiations with all stakeholdersANCE, CSA, and UL; and industry representatives EFC (ElectroFederation of Canada) and CANAME (Mexico)resulted in an agreement to produce harmonized EVSE standards in record time. They agreed to address the essential differences in requirements in the first harmonization round and committed to organize after that a CANENA process to address other issues as well as all the anticipated updates likely to be generated by the nascent industry in its fast-paced evolution. NEMA staff drafted the rules of the process, set up an oversight committee, recruited chairs and secretaries for the harmonization groups, and initiated the call-to-arms to enroll product experts needed to do the work. SDOs committed also to accelerate their internal approval processes in order to achieve an ambitious one-year completion goal. Were proud to report that, while the time goal wasnt completely met, the process yielded a commendable set of results: The two-part Standard for safety for personnel protection systems for electric vehicle (EV) supply circuits (NMX-J-668/1-ANCE / CSA C22.2 No. 281.1 -12 / UL 2231-1 and NMXJ-668/2-ANCE / CSA C22.2 No. 281.1-12 / UL 2231-2) was published in September 2012, just shy of its midyear target. Plugs, receptacles, and couplers for electric vehicles (NMX-J-678ANCE-2013 / CAS C22.2 No.282-13 / UL 2251-3) was published in February 2013. Electric vehicle supply equipment standard for safety (NMX-J-677ANCE-2013 / CSA C22.2 No. 280-13 / UL 2594) was published also in February 2013. The last two documents involved an intense harmonization effort, especially the latter which originally wasnt even a standard, but only a draft intended to evolve into one. Special commendations are deserved by chairmen Ed Larsen, Schneider Electric, Pierre Desilets, Leviton Canada, and John Young, Siemens; publication coordinators Louis Ivan Hernandez, ANCE, Cliff Rondeau, CSA, and Tricia Sena, UL; and technical staff at CSA (Jean-Pierre Boivin, Todd Hamden, and Stephane Poutissou) and UL (Bob LaRocca, and Joe Bablo), who carried most of the projects weight on their shoulders. The EVSE Section recently authorized the start of the of the harmonization process under the auspices of CANENA, the tri-national standards harmonization organization. The progress never stops! ei Andrei Moldoveanu, Technical Director | and_moldoveanu@nema.org
52
Smart MetersA Consumers Connection to the Smart Grid and Beyond

Smart meters are key assets at the edge of the distribution grid. In the electrical power transmission and distribution world, the metering domain is the consumers connection zone to the Smart Grid and all of its benefits. It is a tool of facility that equips the consumer with the ability to track energy use and appetites. The meter connects, informs, and prepares us for future energy technology solutions. According to The Edison Foundation, Institute for Electric Efficiency Report (May 2012), 51 million smart meters are projected to be installed by December 2013, and an estimated 65 million smart meters by December 2015. The report projects that more than half the households in the country will have a smart meter by 2015. NEMAs Role Meter manufacturers provide Smart Gridready advanced metrology circuits that adapt, utilize, and flex with communication protocols, yet maintain a robust product that monitors a needed resourceelectrical power. While NEMA is a voice to support meter manufacturers and an advocate for public policy affecting metering, the bulk of NEMAs involvement is in the technical and standardization arena. Smart Grid Interoperability To support development and deployment of a Smart Grid, many electrical utilities make advanced metering infrastructure and smart meter investments a precursor to Smart Grid, energy management, and consumer participation initiatives. A critical issue facing utilities and their regulators is the need to guarantee that technologies or solutionswill be interoperable and comply with yet-tobe-established standards. Many utilities want to ensure that the system they select will allow for evolution and growth while avoiding stranded resources. When it was identified that requirements for meter upgradeability be developed, NEMA led the effort and responded under an exceptionally rapid schedule, delivering SG-AMI 1* Requirements for Smart Meter Upgradeability in November 2009. International NEMA is secretariat for the USNC Technical Advisory Group for IEC TC 13, Electrical energy measurement, tariff, and load control. As secretary for the U.S. mirror technical committee, all voting and participation on IEC documents and projects are managed through the NEMA secretary. Therefore, while we are actively involved with smart meter activities at home, NEMA is actively involved with international developments and standards abroad. NEMA USNC members recently reviewed and submitted a New Work Item Proposal for Radio Frequency Mesh Networks for use with smart meters as a part of the electricity metering data exchange (DLMS/COSEM Suite IEC 62056). National NEMA is secretariat of ANSI C12, the Accredited Standards Committee for Electricity Metering. The ANSI C12 Committee manages the suite of electricity metering standards: *ANSI C12.1 Code for Electricity Metering ANSI C12.10 Physical Aspects of Watthour MetersSafety Standard *ANSI C12.18 Protocol Specification for ANSI Type 2 Optical Port *ANSI C12.19 Utility Industry End Device Data Tables *ANSI C12.20 Standard for Electricity Meters0.2 and 0.5 Accuracy Classes *ANSI C12.21 Protocol Specification for Telephone Modem Communication *ANSI C12.22 Protocol Specification for Interfacing to Data Communication Networks
*
NEMA C12.24 TR Definitions for Calculations of VA, VAh, VAR, and VARh for Poly-Phase Electricity Meters New ANSI C12 Drafts in Progress C12.23 Compliance Testing for Standard Protocols C12.27 Requirements for Smart Meter Upgradeability C12.30 TR Test Requirements for: Metering Devices Equipped with Service Switches New requirements for new and in-service performance Other ANSI C12 Projects There are other less active standards under the purview of ANSI C12, such as ANSI C12.4 Mechanical Demand Registers; ANSI C12.5 Thermal Demand Meters; ANSI C12.6 Marking and Arrangement of Terminals for PhaseShifting Devices Used in Metering ; ANSI C12.8 Watthour Meters, Test Blocks, and Cabinets for Installation of Self-Contained A Base; ANSI C12-9 Test Switches for Transformer-Rated Meters; and ANSI C12.11 Instrument Transformers for Revenue Metering, 10 kV BIL through 350 kV BIL (0.6 kV NSV through 69 kV NSV). NEMA is leading on many fronts to help bring energy consumers smart meters, our link to the Smart Grid. As the ANSI C12 Committee forges ahead, we will delve into the latest and most relevant developments related to meter safety requirements, cybersecurity, and interoperability. ei Paul Orr, Program Manager, NEMA Industry Operations | paul.orr@nema.org
Standard is presently identified on the Smart Grid Interoperability Catalog of standards, a compendium of standards and practices considered to be relevant for the development and deployment of a robust, interoperable, and secure Smart Grid.
53

Jack Lyons Takes the Reins as Northeast Field Representative
Jack Lyons, NEMAs new Northeast Field Representative, started his electrical career as his fathers apprentice when he was 14. He received his journeyman license before graduation from vocational school, a master electrician license, and a degree in occupational education. Mr. Lyons has extensive experience with motors and control systems, high voltage distribution systems, and petrochemicals. He became a state code provider as part of the professional development requirement for licensure. He sponsored electrical code update courses for electricians and obtained trainer certificates in OSHAs 10-hour construction and general industry safety training. He was a safety officer for all vocational programs in his school. Mr. Lyons was also a committee member in developing statewide curriculum frameworks in electrical technology for the states department of education. He has been an IBEW member, taught for the Joint Apprenticeship and Training Committee, and achieved training certificates in digital electronics. As a member of NECA, he was on the review committee for the ANSI/NEIS electrical installation standards. He helped form the Western Massachusetts chapter of IAEI and became its secretary/treasurer and member of the board of directors. He also has been the inspector of wires for several towns and was technical manager for a manufacturer of truckstop electrification equipment, where he was
responsible for the design of equipment and electrical layout of the sites. Mr. Lyons says he loves the opportunity to help people understand the complexities of the industry. ei
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54
Nationally Recognized Testing Laboratory Program Undergoes Improvement

The Committee on Oversight and Government Reforms and the Committee on Education and the Workforce, chaired by Darrell Issa (R-CA) and John Kline (R-MN) respectively, asked the U.S. Government of Accountability Office (GAO) to determine the time it takes OSHA to make accreditation decisions; and secondly, the extent to which OSHA has adopted commonly used strategies for improving timeliness. Why this is of interest to industry is that OSHA requires certain types of electrical products to be safety tested and approved by a nationally recognized testing laboratory (NRTL) before employers may use them in the workplace. The GAO report, Product Safety Laboratories: OSHAs Accreditation Process Needs Reexamination, finds the OSHA accreditation process too lengthy, procedures for submitting application too opaque, staff responsibilities unclear, and that OSHA has not revisited its structure for accrediting testing laboratories since the NRTL program started more than 20 years ago. To put the report in prospective, neither committee argued there were too few NRTLs or that a lack of even greater competition somehow compromises the U.S. electrical safety system, of which OSHA s NRTL program is only one element. There are in fact 15 approved NRTLs that have met the necessary qualifications and requirements specified in OSHA regulations and agency guidance with more on the way. So why is Congress interested in the length of time it takes to accredit a laboratory? Its the likely result of market opportunities brought about by free trade agreements, industry consolidation, and foreign acquisitions. Where there were once national testing laboratories, many of which were governmentowned, foreign-based laboratories are now responding to customer demands that they be located near the site of manufacturer. The result has strained the limited OSHA resources, which has been further constrained by sequestration. David W. Johnson is the director of OSHAs Office of Technical Programs and Coordination Activities (OPTICA), which is responsible for the NRTL program. As the guest speaker at a recent ANSI caucus luncheon, he addressed the steps OPTICA will take to address a GAO report. The directors intention is to update the NRTL program rules and policy. He envisions this happening in two stages. ISO 17025 regarding the management system for operating a testing laboratory. The patch is also expected to touch on the five-year renewal process for reaccrediting NRTLs, replacing it with an audit. The second stage will involve a formal rulemaking and request for input. The rulemaking is likely to consider the use of third-party assessors to conduct OSHA NRTL audits. This would be similar to the conformity assessment schemes operated by the Environmental Protection Agency for its ENERGY STAR and WaterSense programs. In addition, OSHA will be considering the need to require NRTLs to use a unique OSHA NRTL mark for product certifications. The rulemaking is anticipated to take five to six years to complete once underway. In the near term, OSHA intends to publish in the Federal Register an update to the list of standards it recognizes. Dropping off the revised list will be all the component-related standards currently recognized by OSHA. The intent of this move is to narrow OSHAs focus to only product standards. NEMA has been supportive of NRTLs requests to expand OSHAs scope to include ANSI/ISA 60079 series of standards for hazardous locations as well as ANSI/AAMI ES60601-1, third edition. Neither of these standards, however, will be included in the update. Regarding the former, OSHAs current thinking is to consider them as part of a formal rulemaking. ei Joel Solis, Conformity Assessment Manager | joel.solis@nema.org
So why is Congress interested in the length of time it takes to accredit a laboratory? Its the likely result of market opportunities brought about by free trade agreements, industry consolidation, and foreign acquisitions.
The first stage will be an interim policy change to patch NRTL procedures and is not expected to require a formal rulemaking. Its purpose is to better define the administrative review process for initial applications. The change is intended to delay the start of the review process until a complete application package is submitted. It will also revise OSHAs policy regarding independence of certification bodies. The intent of this policy change is to prescreen initial applications prior to assessment. A final aspect of the patch is to better align NRTL assessments to ISO 17065, i.e., the management system for operating a certification program and
55

NEMA SSL 7A Phase Cut Dimming for Solid State Lighting: Basic Compatibility
The recently published NEMA SSL 7A Phase Cut Dimming for Solid State Lighting: Basic Compatibility provides requirements when a forward phase cut dimmer is combined with one or more dimmable LED light engines (LLEs). An LLE comprises one or more LED modules, LED control gear or driver (integral or remote), and a connection to the mains circuit. This includes screw-in integrated LED lamps and fixtures which contain separate LED drivers. Without a way for manufacturers or customers to reliably match loads (e.g., LLEs) with controls (e.g., dimmers), problems like high inrush currents and high repetitive peak currents can lead to premature failure of LLEs or dimmers. New, sophisticated dimmers with radios or occupancy sensors place requirements on LLEs that, if not met, prevent proper operation of the dimmer or erratic behavior of the LLE. As the sophistication of lighting controls increases, this particular aspect of compatibility will only worsen without the guidance provided in SSL 7A. It meets the needs of end users by ensuring they get predictable performance when combining SSL 7Acompliant LLEs with SSL 7Acompliant dimmers, while allowing manufactures the ability to differentiate their products for appropriate market needs. NEMA SSL 7A is meant to reduce the testing burden by using synthetic loads and waveform generators to represent LLEs and dimmers during testing. All dimmers and LLEs tested against the criteria set forth in SSL 7A will be compatible with one another, without the need for specific testing of every lamp and dimmer pairing. The requirements in SSL 7A do not limit its use to any specific lighting product type or application. The standard was developed with input from global participants and includes requirements for a range of supply voltages and frequencies, making it suitable for global use. For the purposes of this standard, compatibility means: the reliability of the dimmer and LLE are not affected by combining them dimming behavior meets or exceeds the behavior specified in the standard NEMA SSL 7A-2013 is forwardlooking and is intended to be used to design and qualify dimmer and LLE products (including integral or remote control gear) for use with each other. It is not intended for use to determine compatibility with existing products or the installed base of LLEs and phase cut dimmers. SSL 7A was a global effort with input from a wide range of experts including standards development bodies, global lamp manufacturers, global control manufacturers, integrated circuit manufacturers, and laboratories. Various groups, including Energy Star, Underwriters Laboratories, the Zhaga Consortium, and the IEC, have expressed interest in using SSL 7A, in whole or in part, as the basis for additional standardization and regulation involving dimming of LLEs. Contents, scope, and ordering information for NEMA SSL 7A-2013 are available on the NEMA website. ei Megan A. Hayes, Program Manager, Lighting Systems Division | megan.hayes@nema.org
ANSI Approves Two Safety-Related Distribution Equipment Standards

NEMA recently received approval of two safety-related distribution equipment standards from the American National Standards Institute (ANSI). Distribution equipment comprises equipment primarily used in industrial, commercial, and residential applications to distribute and switch electrical power and to protect electrical circuitry. ANSI/NEMA AB 3-2013 is an application guide covering molded case circuit breakers and molded case switches, single-pole and multipole, fused and un-fused, and their accessories. Circuit breakers are intended to provide overcurrent protection for conductors and equipment by opening automatically before the current reaches a value and duration that will cause an excessive or dangerous temperature in conductors or conductor insulation. Molded case circuit breakers and switches are assembled as integral units in supporting housings of insulating material and have rated voltages up to and including 1000V, 50/60Hz, ac or ac/ dc, and have rated interrupting current ratings of 5000 amperes or more. The publication also includes photovoltaic circuit breakers, National Electrical Code references, and diagrams. ANSI/NEMA KS 2-2013 provides application information for the proper selection, installation, and operation of distribution equipment switches up to 600 volts. Switch selection and application for UL 98, UL 977, and UL 1429 have been updated in this edition. Both ANSI/NEMA AB 3-2013and ANSI/ NEMA KS 2-2013 are downloadable at no charge from the NEMA website. Hard copies may also be purchased by visiting the website. ei Gary MacFadden, Technical Program Manager | gary.macfadden@nema.org
56
International Roundup
U.S.Mexico City Smart Grid Business Conference Advances Significant Smart Grid Market
In March, the U.S. Commercial Service in Mexico co-hosted the second annual U.S.Mexico City Smart Grid Technology & Business Forum. The opening plenary session featured Earl Anthony Wayne, U.S. Ambassador to Mexico; Pedro Joaquin Coldwell, Mexicos Secretary of Energy; and Francisco Rojas, CEO of CFE, Mexicos state-owned utility. Efforts to modernize Mexicos electrical grid began in earnest with the 2010 publication of the countrys National Energy Strategy (NES). Its foundations and objectives consist of overall energy reform based on security, efficiency, and sustainability guidelines. Mexicos Ministry of Energy and CFE envision Smart Grid as an enabler of some of NESs key lines of action, which involve reducing the percentage of electrical power loss from 2010 levels of 17.5 percent to internationallyaccepted standards of eight percent, and generating 35 percent of the countrys electricity from clean sources by 2024. Thus far, actions have focused on the development of a plan and vision for the Mexican Smart Grid. In his speech, Mr. Rojas mentioned that once the plan has been finalized and developed, implementation will occur over a three-year period. Significant progress has been made through initiatives such as CFEs application of the U.S. Software Engineering Institutes Smart Grid Maturity Model and the Energy Regulatory Commissions membership in the Smart Grid Interoperability Panel (SGIP) founded by the U.S. National Institute of Standards & Technology. Mexicos Smart Grid activities include the implementation of strategic pilot programs used to evaluate new technologies for their technical, operating, and cost-benefit soundness. The ultimate goal of these projects and other research and international
John McDonald, SGIP Governing Board Chair, presented highlights of the SGIP Business Sustainment Plan. Photo by Steve Griffith
collaboration efforts is to shape a Smart Grid roadmapcurrently being developedthat will set a single, integrated global timeline for CFEs Smart Grid deployment. NEMAs Smart Grid Industry Director Steve Griffith participated in a panel discussion on customer engagement and customer service. His presentation focused on lessons learned from Smart Grid deployments in the U.S. One lesson is the importance of customer engagement. It needs to occur prior to Smart Grid implementations. It should increase customer knowledge and understanding, and achieve customer acceptance and willingness to participate. One of the most important challenges to the development of the Smart Grid market in Mexico is the absence of a specific legal framework and Smart Grid mandate, which has contributed to a prevalence of isolated efforts and a lack of coordination. It should be noted, however, that in spite of this, the Mexican Ministry of Energy, the Energy Regulatory Commission (CRE), and CFE have the conviction to move forward with grid modernization. Projects are now conceived and carried out in a more coordinated and strategic manner. Hctor Beltrn, CRE Director of Electrical Studies, presented the regulatory framework to implement Smart Grid in Mexico. This will include a roadmap, assessment of opportunities for private investment, economic analysis,
and implementation and financing. He said that coordination is needed between all key sector players, and customers should be involved to foster active participation. The final report is due in the fall of 2013. Political concerns exist. The country elected President Enrique Pea Nieto of the Institutional Revolutionary (PRI) Party, the dominant party from 1929 to 2000. The question is: Will the return of PRI spell a reversal of energy policies? Although the presidential turnover might point to a change in policy goals and priorities, it seems that Mr. Nieto will be committed to negotiate and implement energy reform that two predecessors failed to pass by a divided Congress. Mexicos ambitious goals to transition to a clean-energy economy are creating big opportunities for U.S. Smart Grid companies. Integration of renewable energies, reduced electric power loss, enhanced grid reliability and efficiency, and greater customer engagement are driving this emerging multi-billion dollar market. While deployments are still in the early stages, Mexico has the core conditions and government backing to create a significant Smart Grid market in the latter half of this decade. ei Steve Griffith, PMP, NEMA Smart Grid Industry Director, | steve.griffith@nema.org
57
International Roundup
Medical Technology Industry Calls for Regulatory Convergence in U.S.EU Trade Deal
The medical technology industry represented by AdvaMed, COCIR, Eucomed, EDMA, and MITA met with senior U.S. and EU government officials as part of the U.S.EU High Level Regulatory Cooperation Forum in April. The industry urged them to consider regulatory convergence for medical technology in upcoming negotiations on the Transatlantic Trade and Investment Partnership (TTIP). The joint delegation outlined the importance of our technologies and the opportunities they bring to advance a sustainable healthcare system in the U.S. and EU. Our industry is focused on making TTIP a matter of high importance that will bring short- and mid-term measureable results: mutual recognition of ISO 13485 single audit process harmonized format for product registration submission common way to trace products through a single unique device identification process with interoperable databases
The U.S.EU economic relationship is the largest in the world, accounting for half of all global economic output, and the medical technology industry looks forward to continued engagement as negotiations move forward. As the single largest free trade agreement in history, U.S.EU TTIP will promote international competitiveness, create jobs, and grow the respective economies. Trade in goods and services between these entities accounts for nearly one trillion U.S. dollars and supports millions of jobs. New jobs will improve access to lifesaving medical technologies that U.S. and EU companies manufacture. Success here will set the scene for other economies to join the effort to increase
patient access to high-quality healthcare. With the medical imaging industry working on a global scale, we clearly see the benefits of greater regulatory harmonizationlifesaving medical technologies reach the patients that most need them more efficiently by reducing the time and cost for them to be approved. The medical technology industry enthusiastically supports this opportunity and looks forward to concrete developments of this highly regarded initiative. ei Zach Helzer, Manager, Administration and International, MITA | zhelzer@medicalimaging.org
CANENA 2014 to Convene in Washington, D.C.

CANENA will hold its 2014 annual meeting in Washington, D.C., February 2627. CANENA THC/THSC chairs and secretaries are encouraged to schedule meetings during the week of February 2429. The U.S. has strong economic ties within the Americas and is committed to maximizing the benefits of globalization. Development of the U.S. standardization system in support of its existing electrotechnical infrastructure is an example of the complex interplay between national priorities, free market forces, and global influences. CANENA has proven that a balanced approach to assessing opportunities and risks can be practically carried out on a regional as well as international level, especially where legacy systems are well established. The theme for the 2014 CANENA Annual Meeting, Putting Regional Standards in a Global ContextFocus on the United States, emphasizes the status of the evolving electro-technical standardization infrastructure in the U.S., its drivers, immediate challenges, and benefits. The U.S. commitment to regional cooperation in electro-technical standardization has been a success story. The country has been a stalwart supporter of CANENAs objectives and principles since its founding 22 years ago. It has been more than 10 years since CANENA held an annual meeting in Washington. We expect registered attendance to be higher than normal. Mark your calendars now. ei Joel Solis, NEMA Conformity Assessment Manager | joel_solis@nema.org
58
Economic Spotlight
Smart Grid Development Has Economic Benefits, Too
The benefits of modernizing the electrical grid (increased reliability, efficiency, energy security, conservation, etc.) are well understood. But what are the economic benefits of investing to upgrade the grid? The Electrical Power Research Institute (EPRI) estimates that between $338 and $476 billion in Smart Grid investments will be required through 2030. Over time, this massive investment will not only benefit those in the Smart Grid industry providing goods and services to the electric utilities, but it will also filter through the rest of the economy with high-tech jobs, increased labor income and, therefore, higher consumer demand for goods and services in other parts of the economy. But is there evidence that this will come to fruition? In an April 2013 report titled Economic Impact of Recovery Act Investments in the Smart Grid, the Department of Energy (DOE) analyzed the economic impact of investments made through the American Recovery and Reinvestment Act of 2009 (ARRA) from August 2009 through March 2012. During that time, the total amount invested in support of two Smart Grid programsSmart Grid Investment Grants (SGIG) Program and the Smart Grid Demonstration Project (SGDP) was $2.96 billion from both federal and matched industry investments. The report examines the effect of Smart Grid investments on all vendors and a core subset of Smart Grid vendors, as investment in one industry generates economic benefits in all sectors through direct, indirect, and induced effects. The DOE model estimates the impact of Smart Grid deployment on gross domestic product (GDP); economic output; employment; labor income; and federal, state, and local taxes. It divides them into two scenariosAll Vendors and Smart Grid Vendors Only. In the All Vendors scenario, $2.96 billion in investments to Smart Grid vendors and vendors associated with grid modernization created a $4.18 billion gain in GDP; $2.11 billion invested in the core Smart Grid Vendors Only sub-group contributed $2.91 billion to GDP. Another important result from the DOE model is the calculation of a GDP multiplier effect associated with each scenario. When new investments are injected into the economy, a ripple (or multiplier) effect begins that is the total spending impact (multiple, but progressively smaller rounds of spending within the local economy) from the injection of money. The study found that for every $1 million of direct Smart Grid spending, GDP increased by $2.5 to $2.6 million, or a multiplier of 2.52.6. This is significant because it falls on the higher end of estimates of the GDP multipliers associated with various types of public spending identified by the Congressional Budget Office, meaning the impact of Smart Grid investments are comparable to or higher than other investment opportunities for federal funding. In terms of effect on jobs, a policy mission for the entire ARRA program, the payments made in the All Vendors scenario supported 47,000 new and existing jobs that would have otherwise been lost, 18,000 of which were supported by direct investment. The other 29,000 were supported indirectly and by induced economic activity. Direct investment in Smart Grid Vendors Only supported 12,000 jobs directly and 6,000 jobs indirectly through respective supply chains. The jobs and other economic activities supported by investment in the core Smart Grid Vendors subgroup are critical to sustaining grid modernization moving forward. These high-tech jobs in the core Smart Grid sector lead to higher wages than average U.S. jobs by roughly 35 percent. High paying, quality Smart Grid jobs generate increased demand for goods and services in other sectors of the economy as well. The DOE analysis finds that Smart Grid ARRA-funded programs have generated a markedly positive impact on the U.S. economy through March 2012. The benefits are likely to continue as the Smart Grid ARRA programs have an additional $2.5 billion of federal funding and $4.1 billion of private sector funds remaining, both of which need to be spent by programs end in 2015. ei Tana Farrington, International Economist | tana.farrington@nema.org
Total Impact of Smart Grid Investments from ARRA Programs, August 2009March 2012
All Vendors Employment (jobs) Labor Incomes (2010$) GDP (2010$) Economic Output (2010$) State and Local taxes (2010$) Federal taxes (2010$) 47,000 $2.86 billion $4.18 billion $6.83 billion $0.36 billion $0.66 billion Smart Grid Vendors Only 33,000 $2.07 billion $2.91 billion $4.79 billion $0.26 billion $0.49 billion
Source: DOE, Economic Impact of Recovery Act Investments in the Smart Grid, April 2013 NEMA electroindustry June 2013
59
Learn
More
Download NEMA documents: Storm & Disaster Recovery www. nema.org/Storm-Reconstruction Siting Transmission Corridors www.nema.org/ TransmissionCorridorsGameboard Smart GridBuilding on The Grid (Vol. 2) www.nema.org/Smart-GridBuilding-on-The-Grid Watch: NEMAs Vids 4 Grids: New Media for the New Energy Workforce, a series of Smart Grid workforce training programs.
20 iStockphoto.com/LukaTDB 34 alehnia/Shutterstock.com 36 kentoh/Shutterstock.com
Coming in
July
When you think Smart Grid, think NEMA. Read about it online: www.nema.org/Smart-Meter-Facts www.nema.org/policy/energy/ smartgrid www.nema.org/storm-disasterrecovery/smart-grid-solutions www.nema.org/Policy/Energy/ Smartgrid/Pages/What-Is-SmartGrid.aspx www.nema.org/Storm-DisasterRecovery/Smart-Grid-Solutions/ Pages/Preparing-and-RestoringPower-Grids-Using-Smart-GridTechnologies.aspx StockArt
12 iStockphoto.com/EricVega 16 patrimonio designs ltd/Shutterstock.com 19 iStockphoto.com/petrunjela
What is at the forefront of emerging technologies in the electrodindustry? Advanced nanoadditives Graphene micro-supercapacitors Batteries, supercapacitors, and fuels cells Carbon-dioxide capture / clean coal technology Finding warmth in LED lighting Outsmarting arc flash Electric vehicle wireless charging Mobile apps Solar power and cable management and more Also see the second annual Showcase of Innovative Products.
Though Somewhat Weaker, North American EBCIs Still Indicate Improving Conditions
NEMAs Electroindustry Business Confidence Index (EBCI) for current conditions in North America declined in May, falling from 66.7 in April to 55.9, but continued to show signs of improvement in the business environment by remaining above the 50-point mark. The share of respondents that reported conditions improved in May increased to 47.1 percent from 44.5 percent in April while 17.6 percent of respondents reported that conditions deteriorated, up from 11.1 percent in April. The surveys measure of the degree of change in current North American conditions declined from +0.5 in April to +0.2 in May. Panelists are asked to report intensity of change on a scale ranging from 5 (deteriorated significantly) through 0 (unchanged) to +5 (improved significantly). Confidence in future business conditions also declined in May but remained firmly in positive territory. The EBCI for North American conditions six months hence retreated in May to 76.5 from 80.6 in April. 53 percent of survey respondents said they expect conditions to improve over the next six months, down from two-thirds in April. Meanwhile, no respondents anticipated a deterioration in the business environment in the coming two quarters, down from the 5.6 percent of panelists who held that view in April. ei
60
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The Association of Electrical Equipment and Medical Imaging Manufacturers nwww.nema.orgn June 2013 n Vol. 18 No.

Smart Grid The Year of Customer Engagement

n Engaging the Consumer

n Technology/Applications n Renewables and the Grid n Emerging Issues n Economic Benefits

Renewables and the Grid

Available on the App Store

Bill Beile Awarded CANENA Chairman Gavel

Lutron founders Joel and Ruth Spira Honored

Jim Pauley Inducted into Hall of Distinction

COMMENTS FROM THE C-SUITE

John Selldorff, President and CEO, Legrand North America

Views from the Top

NEMA electroindustry June 2013

Views from the Top

DRgives energy consumers greater control.

NEMA electroindustry June 2013

View from the Hill

NEMA Weighs In on Cybersecurity Executive Order

NEMA electroindustry June 2013

View from the Industry

NEMA electroindustry June 2013

View from the States

NEMA electroindustry June 2013

Government Relations Update

Government Relations Update

Working Group on Conflict Minerals to Meet June 25

NEMA Testifies on Trade Facilitation and Trade Enforcement Act

NEMA electroindustry June 2013

The Year of Customer Engagement

NEMA electroindustry June 2013

The Year of Customer Engagement

The Connected Home

Comfort, Convenience, Control, and Connectivity

Images courtesy of Honeywell

NEMA electroindustry June 2013

Engaging Consumer Is Good For Utilities

Envisioning the Future: CASHEM

Conservation is icing on the comfort cake.

NEMA electroindustry June 2013

The Year of Customer Engagement

Responding to Dynamic Electricity Pricing Signals as Demand Response

Dynamic Pricing Offers Alternatives

NEMA electroindustry June 2013

The Year of Customer Engagement

NEMA electroindustry June 2013

Integrated Volt/VAR Control Optimizes Smart Grid Strategies

Adjusting to Target Needs

NEMA electroindustry June 2013

The Year of Customer Engagement

Grid Therapy for Tension and Congestion

Nursing Systems back to Health

Regional transmission organizations / independent system operators (ISOs)

Weather the Storm

NEMA electroindustry June 2013

The Year of Customer Engagement

Got Questions? NEMA Has Answers

NEMA electroindustry June 2013

Developing sustainable power grids, with Alstom

The Year of Customer Engagement

With Smart Meters Come Smart Rates

) cem ber De 4( 201

Installed Smart Meters