Lee Krevat, Director-Smart Grid

SDG&Es Smart Grid Deployment Plan

Smart Grid Technology Conference

June 1, 2011
Numbers and forecasts are for illustration purposes only

2010 San Diego Gas & Electric Company. All copyright and trademark rights reserved

Smart Grid Deployment Plan

Objectives

Engage customers and other stakeholders to create a Smart Grid

Deployment Plan that reflects the regions priorities and values
not just those of the utility.

Align the organization so that it can continue the cultural change

necessary to create the Utility of the Future.

Analyze a wide range of potential projects oriented toward

smart technologies and services prioritizing cost vs. benefits,
both financial and societal.

Comply with CPUC decisions, state and federal policy

SB 17 and D.10-06-047
2

Methodology
Presents a comprehensive plan that includes 64 projects in 9 programs
The plan is not a request for funding it is a policy guide for future
investments

8 officers, 18 directors, 150+ managers and staff helped develop the plan

Two-Way dialogue with 25+ stakeholder groups

Aligned to SDG&E Strategic Plan

Collaborating with the Environmental Defense Fund to value environmental

benefits

Partnering with the Office of the Information and Privacy Commissioner of

Ontario on the implementation of customer privacy policies

To be put into practice with the Dynamic Pricing Program

3

SGDP Development
SDG&E leveraged the NIST smart grid
conceptual model to develop the SGDP,
with 3 additional cross-cutting domains.
Secure Communication Flows
Electrical Flows
Domain

Domain (NIST Conceptual

Model)
Markets
Operations
Service Provider
Customer
Distribution
Transmission
Bulk Generation
Grid & Cyber Security
Info & Comms Technology
HR & Workforce Development
Cross cutting domain

NIST Smart Grid Framework 1.0 January 2010

4

Organization Ownership
Name

Role

Responsibility

Smart Grid Executive Steering

Committee

Executive Sponsors

Responsible for review &

approval of drafts & final

Smart Grid Director Team

Steering Committee

Responsible for review &

approval of drafts & final

Smart Grid Team

Cross-domain facilitation; Project

Management

Executive reporting; issues

management; accountable for
overall project delivery

Vice Presidents

Domain Owners: Customer, Markets,

Accountable for delivery of a
Transmission, Distribution, Operations, domain & its sub-domain
Bulk Generation, Service Providers,
Grid & Cyber Security, ICT, Workforce

Directors

Domain Leads

Responsible for team

leadership, delivery of a
domain & its sub-domain

Customers and Other Key Stakeholders

SDG&E, in collaboration with key stakeholders, will create the

foundation for an innovative, connected and sustainable energy
future in the San Diego region.
Ratepayers Advocates

Privacy Advocates

Governmental Organizations

Energy & Environmental NGOs

Academia

Large Customers / Corporate

Interests

Business Organizations

Collaborative Organizations

Workforce Interests
6

Requirements
SB 17 requires a Smart Grid Deployment Plan to be filed by July 1st

Vision
Baseline
Strategy
Security
Roadmap
Cost
Benefits
Metrics

Smart Market, Customer & Utility. Meet environmental policies.

Inventory of SG investments and assessment of privacy & security.
Provide benefits to consumers and compliance with SB17.
Describe Grid and Cyber Security strategy.
Timing of deployment of SG technologies.
Cost estimates for SG investments for next 10 years.
Analysis: policy driven, environmental goals, economic, etc.
Measure performance.

Source: CPUC

Vision
The Smart Grid Deployment Plan is the same as the SDG&E Vision
SDG&E, in collaboration with key stakeholders, will create the
foundation for an innovative, connected and sustainable energy future
in the San Diego region.

Focuses on customers and stakeholders, and their adoption of

renewables, PEVs, other technologies, and environmental policy

SDG&E cannot wait for others to move forward our customers are already
moving forward.

Incorporates stakeholder ideas, recommendations and priorities.

SB 17 Alignment

Describes our vision of how the 11 SB17 smart grid goals will be realized by
2015/2020
8

Vision: Smart Customer,

Smart Market, Smart Utility
Smart Customer

Empowering customers with more choice on how and when they use energy based on
improved information (including accurate price signals) and access to enabling technology

Smart Market

Empowering customers to participate in demand response and new dynamic rate programs
and ancillary service markets
Requires price signals that accurately reflect cost to provide utility services and avoid crosssubsidization

Smart Utility (driven by Customers)

Usage information, prices and critical event notifications provided through the customers
preferred communication channels
Development of the distribution system and IT infrastructure to enable and support growth in
these customer alternative energy solutions
Includes the provision of balancing, storage, reliability and integration services to customers
which reflects the value of the service the utility provides and the infrastructure investment
that supports it, particularly for distributed generation customers
9

Deployment Baseline

Details the current state of SDG&Es grid

Generation, transmission, distribution

Discusses 2006 San Diego Smart Grid Study

Inventories our past (in service as of 12/31/10) and in-flight

smart technology investments
SCADA/Sensor
Smart Meters
OpEx 20/20
Self-healing circuits

Current state of customer privacy policies

10

Smart Grid Strategy

Plan for Smart Grid deployment across business units and functions

Collaborate with stakeholders on an ongoing basis

Plan projects using a decision-making framework
Policy, Value and Pilots
Policy projects driven by state or federal policy, but potential customer and
societal benefits are calculated
Value projected benefits outweigh costs or are necessary to effectively
communicate with customers
Pilots mitigate risk, determine costs and benefits

Aligned to the SB17 goals

Technology and communications network selection

Ensure privacy and leverage interoperability and standards
11

Grid & Cyber Security Vision

All Smart Grid participants, such as customers, service

providers, regulators and utilities, are able to:
Rely on the availability of the system
Trust the integrity of the information produced by the system
Confident that sensitive information is secure from unauthorized access
or disclosure

SDG&Es Smart Grid is resistant to physical and cyber security

threats. It is resilient to attack and natural disasters, and
aligned with industry standards and best practices.

Because resources are finite, it is built on a security program

that uses risk management methodologies to maximize its
security investments.
12

Grid & Cyber Security

Vision -> Strategy

Awareness

Convergence

Situational
Participant
Regulatory

Policy-driven
coarse-grained
controls
Integration (process &
technology)

Standards

Disaggregation
Physical & logical control
distribution
Fine-grained controls tuned
for local needs
13

Grid & Cyber Security

Strategic Objectives

Set privacy as a foundational building block of our Security Programs

Distribute security controls, make them more autonomous
Evolve existing security capabilities
Develop new security capabilities
Unify shared security capabilities
Integrate physical and cyber security capabilities
Identity and access management
Encryption key management

14

Roadmap Programs
SDG&Es roadmap includes smart grid investments in 9 programs:
Customer
Empowerment
Renewable
Growth

Workforce
Development

Integrated &
Crosscutting
Systems

SMART
GRID

SG RD&D

Electric
Vehicle
Growth

Security

Operational
Efficiency

Reliability &
Safety
15

Smart Grid Roadmap

Lays out the timeline for our 9 programs from 2011-2020 and their
alignment to policy goals

Shows by project, by year, and policy / value / pilot

Includes brief descriptions of all projects including Enterprise projects
those not being done because of smart grid, but including smart grid
requirements.

Total number of projects 64

Enterprise 13 (not included in costs/benefits)

Includes 2015 and 2020 Vision statements in Program timelines for

context

16

17

Customer Empowerment
Smart Meter
Background

Installing 1.4 million smart electric meters and adding module to existing
850,000 gas meters for all customers by December 2011
Install 1.4 million smart electric meters for all customers
Solid-state electric meter technology with ZigBee Chip
Electric interval data reads:
Residential: hourly, Commercial/Industrial: 15-minutes

Customer Benefits

Enhances reliability and outage detection, and speeds restoration

Gives customers more control over their everyday
energy usage, opportunity for lower bills
Reduced need to access property, more privacy

Currently about 2.18 Million meters installed (>95%)!

Customer Empowerment
Data Available to Customers
Tools and Programs

Google PowerMeter / SDG&E Online Tools

About 12,000 users
Demand Response
Dynamic Pricing future offering
Home Area Network Pilots

Awards and Recognitions

SDG&Es Smart Meter program was awarded Best in Quality,
by Chartwell, Inc. for customer service
Recognition of being a gold standard utility by CPUC
Commissioner Ryan in 2010
Second year in a row the honor of Smartest Utility in the in
Nation by Intelligent Utility Magazine and IDC Energy Insights.

20

Distributed Renewable Growth

Residential Distributed Generation

Total number of MW at year end

50
45
40
35
30
25
20
15
10
5
0
2000

2001

2002

2003

2004

2005

2006

2007

2008
21

2009

2010

1MW PV: 10 Minutes on a Cloudy Day

Extreme voltage fluctuation results

Distributed Renewable Growth

Circuits with Potential Issues

Values are for illustration only and do not represent forecasts

23

24

Electric Vehicle Growth

SDG&E Electric Vehicle Owners Club

25

Electric Vehicle Locations

26

27

Reliability Issues
Solar & Electric Vehicle Customers

28

Reliability Issues
Changing San Diego Energy Mix
25 TWH

20 TWH

15 TWH

10 TWH

5 TWH

Energy mix for 2015 and 2020 are subject to substantial uncertainty
Values are for illustration purposes and do not represent forecasts
29

Transformer Single Phase Analytics

40

35

30

25
KW

5781929
5781930

20

5781931
5782024
15

5782027
XMFR Sum

10

0
1

10

11

12

13

14

15

8/25/2010 Interval Hours

16

17

18

19

20

21

22

23

24

31

32

Operational Efficiency:
Condition Based Maintenance
LTC energy is measured at
the control cabinet on the
other side of the bank

TRANSFORMER
BUSHINGS
ANALYSIS

TRANSFORMER
COOLING
ANALYSIS
DISSOLVED
GAS
ANALYSIS

TRANSFORMER
ANALYSIS

33

Operational Efficiency:
Outage and Distribution Management
Current State

Paperwork
Manual processes
Labor intensive
Software systems are not fully integrated
Unplanned outages are reported by
customers
Limited ability for specialized reports

Future State

Near real time data

Automated process
Integration with more systems
Faster outage restoration times
Better management of customer expectations
System generated reports
System generated switching plans
34

35

Research, Development & Demonstration:

SDG&E Borrego Springs Microgrid Project
Project
Description

In cooperation with the US Department of Energy and the California Energy Commission,
SDG&E and 10 public and private sector partners will develop a microgrid project - a
small version of its electric grid which takes advantage of local distributed energy
resources and state-of-the-art controls to enhance grid operations to achieve a >15%
reduction in feeder peak load and improve system reliability.

Current Status Site Selection complete Borrego Springs

Finalizing system requirements and high level design

Developing customer communication plan
Collaborating with environmental agencies to satisfy permitting requirements

Conceptual illustration courtesy

of National Energy Technology
Laboratory
Rooftop PV Solar
Utility-scale Energy Storage

Distributed Energy
Resources
Utility-scale Energy Storage
Rooftop PV Solar
Micro-turbines
Building Energy Storage
Community Energy Storage
Distributed Generation
Home Energy System
Ground PV Solar Array
PHEVs
Ground PV Solar Array

Switches &
Power
Electronics
Micro turbine

Energy
Storage

PHEVs

Information
Electricity Pricing
DER status
Demand Response
Programs
Network status
Community Objectives
Load and Resource
Profiles

Distributed Generation
Home Energy System

36

Grid Resources
Capacitor Banks
Voltage Regulators
Automated Switches
Power Electronics
Communications

37

Integrated/Cross Cutting Systems:

SDG&E Grid Communication System
1. Multiple RF layers integrated via a Control Service
2. Use all the spectrum tools available, matching app requirements with spectrum
3. Purchase at least one block of licensed spectrum for high-integrity service
4. Use SDGE assets for siting RF base stations

High Capacity Assets

Substation Automation
PMUs
High capacity mobile users
Wide area measurement / control

Radio

Site

Smart Meters
900MHz

Mobile Data

Smart Grid Assets

4,000 sq mi

INTEGRATED SECURITY
INTEGRATED MANAGEMENT & RF CONTROL
38

AMI
Reclosers
Switches
Fault Indicators
Transformers
Cap banks

39

Smart Grid Costs and Benefits

I think there is a world market for

maybe five computers.
-- Thomas Watson,
Chairman of IBM, 1943
US Army Photo

[By 1985], machines [computers] will be capable of doing

any work Man can do.
-- Herbert A. Simon, 1965
40

Cost Estimates

Costs and Benefits calculated based on nominal $

Does not include Enterprise projects
2012 GRC, active and approved applications are based on filed numbers
Conceptual estimates 2011-2015
Provisional ranges 2016-2020
Capital Expenditures and O&M
$ by Program Low/High not projects
Includes Baseline projects costs as of EOY 2010
Smart Meter and Operational Excellence 20/20
41

Benefit Estimates
Analysis is based on the EPRI framework developed for DOE

Societal (includes environmental, societal, and fuel cost savings for customers)
shown separately in a holistic view

SDG&E investment is necessary but not sufficient for customers & society to realize these
benefits

Conceptual estimates 2011-2015, provisional ranges 2016-2020

Similar range percentages were used for conceptual estimates and provisional ranges

Terminal Value estimate to capture post-2020 value based on useful life of assets
Estimated at the project level (economic and reliability) and summarized by Program
Difficult to quantify benefits, such as energy independence, customer
convenience, customer satisfaction, public and worker safety, and enterprise
goodwill will be discussed in narrative but their value is not monetized
42

Societal Benefits
Identified and quantified (jointly with EDF) societal benefits related to
reduction of environmental footprint and customer fuel cost
savings enabled by Smart Grid investments.
2011-2020 Benefits
Low Range

2011-2020 Benefits
High Range

Estimated Avoided Emissions Reduction by

Integrating Centralized Renewable Energy
Estimated Avoided Emissions Reduction by
Integrating Distributed Generation
Estimated Avoided Net Emissions
Reduction by Integrating Electric Vehicles
Estimated Avoided Fuel Cost by Integrating
Electric Vehicles

43

Metrics
SDG&E worked with the other CA IOUs and the Environmental Defense Fund to
develop a list of Smart Grid metrics

Dozens of metrics were evaluated by the working group; 19 were determined

to be consensus metrics

Customer/AMI 9
Electric Vehicles 1
Energy Storage 1
Grid Operations 8

A ruling is expected from CPUC to establish the consensus metrics (with

potential minor changes), and possibly others, for ongoing reporting

Pending that ruling, we are including the Consensus metrics in the SGDP

44