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Evolving Distribution SystemHelping Consumers Navigate Access to Data, Products & Services

Paul De MartiniMarch 9, 2015

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Grid Evolution: One-way Road to Grid of Things

Source: IEEE

Grid increasingly becoming a multi-directional network interconnecting millions of intelligent consuming devices and flexible DER and back-up generation

Operating such a system requires greater situational visibility and collaboration with customers and their services providers

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Evolution of Customer & Distribution System3

Stage 3: Distributed Markets

Multi-partyTransactions

Market Operations

DER Integrator & Optimization

Dist. Platform Development

Customer Onsite Supply & Reliability

Stage 2: DER Integration

Smart Grid InvestmentsAging Infrastructure Refresh

Cost Mgmt. Services Information & Decision Tools

Stage 1: Grid Modernization

Value

Time

3 Stages of Evolution as DER Adoption Grows & Market Opportunities Expand

Distribution System

Customer Engagement

4© 2015, Newport Consulting Group, LLC

Information Evolution: Grid Planning & OperationsHistorical data to dynamic multi-way flows of information

Planning w/DERGross load growth & characteristicsLoad “modifiers”

EE effects by feederConservation effects by feederDER/EV/BUG adoption by feeder

Operations w/DERDist. Asset optimization (~15 min)Whsle Market optimization (5 min)Frequency Control (4 sec)Distribution Voltage Control (<4 sec)Distribution Protection (30 msec)

Production and net usage are becoming increasingly unpredictable, making traditional heuristics unreliable - driving need for higher information fidelity

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State Regulatory Evolution

5

“Utilities must transform into “market-makers” who solve problems at the edge of the system”

Audrey Zibelman, Chair, NY PSC May 2014

Several states have open proceedings or having preliminary stakeholder dialogs

New York REV California DER/EV related proceedings Hawaii Grid Modernization & DER integration Arizona Utility DER services & ownership

Focus of Regulation & Advocacy Distribution as an enabling network

open access platform & distribution system operations as market facilitator

Expanding customer services opportunities for utilities to facilitate and/or provide DER, microgrid and other competitive customer services

Reforming Regulation Performance based ratemaking (extensive metrics) Rate case process changes (e.g., future test year,

length) NEM/TOU Rate reform

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National Discussions

What are the power systems’ vulnerabilities (e.g., cyber and physical attacks, extreme weather events)?

How well can the current TS&D system support Greenhouse Gas reductions?

How can an advanced grid and storage facilitate the incorporation of zero and low carbon generation?

What improvements can be made in the use of real-time data, analysis and communications?

How can improved smart grid interoperability standards better integrate distributed resources & microgrids into the operation of the power system?

What challenges face customer access to alternative supply and reliability enhancement options?

What are the business challenges and opportunities facing the electric industry?

Several National Initiatives Exploring Evolutionary Issues*

* Adapted from DOE QER Presentation