rap schwartz smartgrid isitsmart partone 2010 05
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Is It SmartIf Its Not Clean?
Strategies for Utility Distribution Systems
May 2010
1Part
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Strategies for Utility Distribution Systems
Energy efciency is among the ederal
governments objectives in the Recovery Act o
2009 (HR 1, 111th Congress) or modernizingthe US electric grid. But unless utilities and
others plan or energy efciency benefts rom the start, the
smart grid will not live up to its promise.
An earlier Issuesletter examined the potential values
o smart grid or consumers and recommended policies
or commissions to consider beore committing ratepayer
dollars or such investments.1 This Issuesletter raises
questions that public utility commissions and stakeholders
can ask i they want smart grid investments to improve
distribution system efciency,2 ocusing on conservationvoltage reduction and optimizing voltage and var control.
Its the frst o a two-part series on smart grids potential
benefts or energy efciency and distributed generation.
Conservation Voltage Reduction andVolt-Var Control
The distribution lines that deliver energy to homes
and businesses typically lose 3 percent to 7 percent o the
electricity they carry.3
Utilities can reduce line losses by operating thedistribution system in the lower portion o the acceptable
voltage range.4 Reducing electric service voltage also
reduces the energy consumption o some consumer
equipment without aecting service.5 In act, according to
research by the Northwest Energy Eciency Alliance and
the Electric Power Research Institute (EPRI), most o the
energy savings potential may be on the customer side.
Utilities control distribution line voltage by changing set-
tings on equipment at the substation serving the line or on
equipment connected to the line. Voltage alls gradually as
current fows urther rom the substation. Utilities must keep
substation voltage at a level sucient to ensure that voltage
at the end o the line is within industry standards. While
system operators may be used to a considerable margin
above minimum voltage standards, real-time data commu-
nication and remote control allow or margins to be smaller
without aecting service to customers or damaging their
equipment. By reducing voltage to the lowest level within in-
dustry standards, utilities can reduce line losses, peak loads,
and reactive power needs (a requirement o many kinds o
equipment, including motors and transormers) and save (or
deer) energy use by some types o consumer loads.
Conservation voltage reduction (CVR) is a general term
or the changes to distribution equipment and operations
needed to deliver those benets. When remote monitoring
and control equipment is used or CVR, it also can allow
the utility to control capacitors to optimize reactive power
(vars) on substation eeders and transormers and to
balance eeder voltage and current i circuits are properly
congured and equipped. CVR and var optimization
operated together can provide enhanced benets.
* The author grateully acknowledges William Steinhurst, Synapse Energy Economics, Inc., who provided technical assistance and wroteportions o this paper. US Environmental Protection Agency provided unding.
Is It Smart if Its Not Clean?Strategies For Utility Distribution Systems
PartOne
Principal author: Lisa Schwartz*
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Is It Smart if Its Not Clean?
Advanced Metering Infrastructure is a meteringsystem that records customer consumption o electricity
(and possibly other variables) hourly or more requentlyand provides at least daily transmittal o measurementsover a two-way communication network to a centralcollection point.
Capacitors control power actor and voltage by injectingreactive power into the system.
Conservation voltage reduction (CVR) is theintentional and routine reduction o system voltage,typically on distribution circuits, to reduce line lossesand energy use by some types o end-use equipment
while maintaining customer service voltage withinapplicable national standards (e.g., 5 percent onominal). CVR is dierent than voltage reductionrequired during periods o inadequate generationsupply.
Distribution systems transmit electricity to retailcustomers. They typically consist o: 1) substations withequipment to control power ows and transorm powerrom transmission voltages to lower voltages, 2) one ormore distribution circuits (also called lines or eeders)that deliver power to step-down transormers that serve
retail customers, and 3) sensors and control equipmentalong the circuits.
Load-tap changer is a manually or remotely controlledswitch that alters the setting o a transormer or voltageregulator to adjust its output voltage potentially whilepower is owing through the device.
Power factor is the ratio o real power ow to a piece oequipment to the apparent power ow. The dierenceis determined by the reactive power required by certaintypes o loads, such as motors and transormers. The
power actor is less than one i there is a reactive powerrequirement.
Reactive power establishes and sustains the electric andmagnetic felds o alternating-current equipment anddirectly inuences electric system voltage. Reactivepower must be supplied to most types o magnetic(non-resistive) equipment and to compensate or the
reactive losses in distribution and transmission systems.Reactive power is provided by generators, synchronous
condensers, and electrostatic equipment such ascapacitors. It typically is expressed in kilovars (kvar) ormegavars (Mvar).
SCADA Supervisory Control and Data Acquisition is asystem o remote control and telemetry used to monitorand control the distribution and transmission system.
Shunt capacitors connect a eeder to ground atsome point along the eeders length and are used tocompensate or a low power actor caused by motorsand other inductive loads on heavily loaded or long
rural eeders, improving the eeders power actor,raising voltage on the line, and lowering line losses.
Substations reduce the voltage level o alternatingcurrent electricity rom transmission or sub-transmission acilities and deliver it to eeders ordistribution.
Switches at strategic locations open or close circuits redirecting power ows or load balancing, allowingor equipment maintenance, or limiting the number ocustomers interrupted during outages.
Transformers are electromagnetic devices that change thevoltage level o alternating current electricity.
Volt-Ampere Reactive (var) is a unit o reactive power.
Voltage or an electrical system is the dierence inelectrical potential between any two conductors, aconductor and ground, or any two points on thesystem. It is a measure o the electric energy thatelectrons can acquire or give up as they move betweenthe two conductors.
Voltage regulators are devices, typically installed in asubstation at the beginning o a eeder, that maintaindistribution voltage within industry standards byincreasing or decreasing voltage as needed.
Voltage transducers are voltmeters that produce a signalthat can be transmitted to a read-out.
Distribution System Terms
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Strategies for Utility Distribution Systems
Techniques for Reducing Voltage
A long-used approach to controlling voltage along
a eeder is line drop compensation, where the utility
controls the voltage at substation transormers and
regulators at the head o the eeder so that, based onengineering calculations, estimated voltage remains within
acceptable limits all the way to the end o the eeder. See
Figure 1. Line drop compensation can be used to provide
some amount o energy savings and, thereore, may be
operated as a orm o CVR. Another approach is end
o line control in which voltage is monitored at the ar
end o a eeder and equipment is adjusted to maintain
acceptable voltage at the end o the line. See Figure 2. End
o line control is more expensive but allows or tighter
control o voltage and increased energy savings.6 Regardless
o approach, greater voltage reductions can be achieved
cost eectively when coupled with distribution system
improvements such as upgrading distribution line size orvoltage and reconfguring or adding eeders.7
Heavily loaded lines, long lines, and lines with large
motor or air conditioning loads8 may require the utility to
install voltage regulators or shunt capacitors that can be
switched on or o to maintain voltage at proper levels as
loads change. The control equipment, at the substation
or along the line, may be set manually or remotely.
Substation
LTC or
VoltageRegulator
Feeder
Substation
Bus Customers Along Entire Feeder
FixedVoltageControlPoint
V
Substation
LTC or
Voltage
Regulator
Feeder
SubstationBus Customers Along Entire Feeder
FixedVoltageControlPoint
Voltage Feedback Loop
Voltage
Meter
Figure 1. Line drop compensation control used in the Northwest Distribution Efciency Initiative.
Control settings were adjusted to fx the voltage at the end o the eeder. LTC = load tap changer.Figures 1 and 2 are rom RW Beck, Distribution Efciency Initiative Project: Final Report, prepared
or the Northwest Energy Efciency Alliance, December 2007, at http://www.rwbeck.com/neea/.
Used with permission.
Figure 2. End o line voltage eedback control, a closed-loop system that measures and
communicates end o line voltages in real time to the voltage regulating device at the substation.
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Is It Smart if Its Not Clean?
Smart grids measurement, communication, and control
capabilities may provide an opportunity or advanced orms
o voltage and var optimization continually optimizing
tradeos in service voltage and energy use by precisely
controlling voltage within acceptable limits. For example, i
distribution SCADA systems are extended along the length
o the eeder, shunt capacitors can be remotely controlled to
compensate or the variation in voltage throughout the day
based on local voltage measurements, allowing or greater
CVR. See Figure 3.
Voltage and Var Control Today
Utilities have used voltage reduction during periodso capacity shortages or many years. For example, ISO
New Englands operating procedures include it among the
actions system operators may take to avoid involuntary
load curtailments. The ISO estimates that a 5 percent
voltage reduction saves 421 megawatts in a 28,000
megawatt system.9
Conservation voltage reduction or voltage optimization
a term sometimes used to reer to advanced orms o CVR
that include var control is designed to reduce capacity
needs overall, to reduce energy use, or both. The Northwest
Energy Efciency Alliance sponsored an extensive loadresearch and feld study o CVR with 11 utilities in the
Pacifc Northwest involving 31 eeders and 10 substations
rom 2004 to 2007.10 According to the fnal project report,
operating a utility distribution system in the lower hal o
the acceptable voltage range (120-114 volts) saves energy,
reduces demand, and reduces reactive power requirements
without negatively impacting the customer.11 The study
estimated CVR could save 1 percent to 3 percent o
total energy, 2 percent to 4 percent o kW demand, and
4 percent to 10 percent o kvar demand. As the report
pointed out, major distribution efciency improvements
beyond CVR were required to reach the highest levels o
savings. (Such improvements are discussed urther below.)
Voltage reductions ranged rom 1 percent to 3.5 percent.
The study ound that a 1 percent reduction in distribution
line voltage provided a 0.25 percent to 1.3 percent
reduction in energy consumption, with most substations
seeing results between 0.4 percent and 0.8 percent.12 The
results urther indicate that when voltage reduction is
coupled with major system improvements, 10 percent to40 percent o the energy savings are rom reduced losses
on the utility distribution system. That means the majority
o savings are rom reduced consumption in homes and
businesses due to equipment operating at lower voltage.
Extrapolating the results to the our Northwest states,
the Northwest Power and Conservation Council estimates
the regional savings potential o CVR combined with
distribution system upgrades at more than 400 average
megawatts by 2029.13 The Council also estimates that the
cost o acquiring those savings is low, with two-thirds o
the potential savings at a levelized cost o less than $30 permegawatt-hour.14
Little is known about how CVR might interact with
smart grid technologies. As part o its Smart Grid City
project in Boulder, Colo., Xcel Energy is testing dynamic
voltage/var optimization based on monitored real-
time conditions. A recent review o the feld by Pacifc
Northwest National Laboratory concluded that, while
}
Feeder Length
Location of Shunt Capacitor
126V
120V
114V Extra voltageavailable forCVR withVAr control
Without shunt capacitorWith shunt capacitor
Figure 3.
Var control makes
extra voltage
available or CVR.
Source: Pratt, et al.
See ootnote 5.
Used with
permission.
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Strategies for Utility Distribution Systems
EPRI Distribution Green Circuits Research Project
Re-conductoringPhase balancingCapacitor placement, var control
Distribution transormers (highefciency and amorphousmetal transormers)
Voltage optimizationSmart distribution control
additional research is needed, combining var control with
smart grid technologies could potentially reduce total
electricity consumption by 2 percent. Thats the incremental
savings beyond CVR as practiced today.15
EPRI launched a Green Circuits project16 in 2008 to
build on the Northwest Distribution Efciency Initiative by
expanding feld deployments o technologies and strategies
and testing smart grid measurement, communication, and
control. (See table below.) The project is intended to improve
modeling and loss analysis methods, analyze economics
o various strategies to improve distribution efciency, and
develop general guidelines or improving efciency as a
unction o circuit and customer load characteristics.
The project involves 24 utilities and related organizations
in 33 states and our countries. Roughly 90 circuits in rural
and urban areas are included. Initial studies have been
completed or 50 circuits. Distribution efciency optionswere modeled as modifcations to the base case, including:
Voltageoptimization/CVR keeping eeder voltage
in the lower band o the allowed range17
Phasebalancing rearranging loads on each phase
o the circuit to lower the current on the most heavily
loaded phase(s)
Reactivepoweroptimization adding capacitor
banks or modiying switching schemes
Reconductoring replacing selected conductorsections with larger, lower-resistance conductors
High-eciencytransformers replacing lower-
efciency line transormers with higher-efciency
units
Initial results were compared with control circuits
without such treatment. Among the preliminary fndings:
A1percentto3percentreductioninenergy
consumption is achievable.
Themajorityofenergysavingsperhaps80percent
is rom customer loads such as motors running more
efciently.
Peakdemandcanbereducedby1percentto
4 percent.
Reactivepowerrequirementscanbereducedby
5 percent to 10 percent.
TheaverageCVRsavingsfactorthepercentage
change in load resulting rom a 1 percent reduction in
voltage is 0.79, with a range o 0.66 to 0.92. Thats
higher than determined in the Northwest Energy
Efciency Alliance study described above, likely
due at least in part to the high levels o (resistive)
electric heating loads where the Alliance study was
conducted.
The next phase o the EPRI project will validate these
preliminary fndings, assess costs and benefts, test
reaction o specifc customer end-use devices to voltageoptimization using advanced metering inrastructure (AMI)
data, and evaluate additional efciency measures such as
coordination with distributed resources or loss reduction
and load management through distribution automation.18
Smart Grid Opportunities toImprove Distribution Efciency
While not a prerequisite or improving distribution
efciency, smart grid technologies may increase energy
savings. Regulators can ask utilities the ollowing questions
about opportunities to improve distribution efciency when
reviewing smart grid plans or investments. Preliminary
answers are provided based on the general status o smart
grid technologies at this time.
Technologies toImprove Efciency
DistributionEfciency
Improvement
1. Reduce distributionline losses
2. Reduce equipmentlosses
3. Improve distributionoperations
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Can advanced metering systems measure
voltage at customer premises and transmit the
data to the utility?
Today, even advanced meters or homes can measure
voltage. While voltage measurement may not be
automatically enabled, no change in hardware is requiredand this unction may be remotely activated. Even i meters
are not used to measure voltage or CVR, visibility o
voltage at customer premises measuring it remotely in
real time may become increasingly important to maintain
electric service within industry standards given projected
levels o distributed generation and plug-in electric
vehicles. Regulators can ask utilities whether voltage
measurement capability will be unlocked and available
and, i not, why not. Communications or advanced
metering systems generally are designed to transmit any
type o meter data. However, regulators can ask whetherthe proposed communication system has headroom to
transmit additional data that may become available over
the systems lie, such as voltage measurements rom an
adequate sampling o meters across the utility grid in a
timely manner.
Can advanced meters measure vars?
Large customers already have meters that measure
vars, and utilities charge these customers extra or a poor
power actor. Todays advanced meters or homes are not
capable o measuring vars. Such capability may becomeimportant in the near uture, as variable-speed motors
make their way into home equipment. These motors are
more energy-efcient, but some have a poor power actor.
Var measurement would expose the issue, encourage
power actor specifcation or energy efciency programs,
and promote improved motor design. Regulators can ask
utilities whether planned advanced metering systems can
be upgraded to measure vars.
Is AMI necessary to implement CVR?
No. In act, we are aware o only one US utility that usesAMI or this purpose.20 While voltage must be measured
at one or more points on the eeder and communicated
back to the utility to go beyond the line drop compensation
approach, SCADA and strategic placement o a small
number o voltage transducers on each circuit are sufcient
to get the currently identifed beneft rom CVR.
Can utilities use AMI to increase energy savings
rom CVR?
AMI provides time-stamped data in real time or ater-
the-act that provide more detailed inormation on end-use
patterns and diversity actors on the system, compared
to traditional voltage transducers, and may allow better
quantifcation o distribution losses. The additional data
provided by AMI also might allow tighter control o voltage
and increased energy savings and help overcome utility
concerns about the easibility o lowering voltage.
Can utilities use other smart grid technologies to
increase distribution efciency savings?
Smart grids real-time data communication and remote
control capabilities enable voltage and var optimization.
More research is needed, however, on how smart grid
technologies interact with CVR, how they can be used to
optimize energy savings, and whether it would be cost-
eective to do so. For the highest savings levels, the utility
would need to deploy near real-time sensing, monitoring,
and control capability or a coordinated capacitor control
scheme that operates on multiple eeders and interactswith demand response and distributed energy resources.21
Similar real-time capabilities also would be needed to get
the most out o controlling other devices, such as load-tap
changers, and balancing phases and circuits in real time.
Power Factor & Energy EfciencySuppose the power actor on a circuit is 70
percent, a very poor value but one that might be seen
on a circuit with large motor loads. I the real power
load on the circuit is 100 kW, the utility would needto produce about 100 kvar o reactive power to serve
the load. I the power actor were improved to 95
percent, a typical target value or utility planners,
the utility would need to produce only about 33
kvar o reactive power to serve that load. Delivering
kvar rom the utilitys generators is not as costly as
delivering real power, but improving the power actor
on a circuit by installing capacitors is generally even
less expensive.19
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How can utilities address operational issues with
CVR during peak demand periods?
When loads on a eeder are high, additional equipment
such as voltage regulators or shunt capacitors may be
needed to maintain voltage at the end o the line without
raising the voltage at the substation too much. SCADA canbe extended down eeders to measure loads and voltages
and to remotely control shunt capacitors to enable voltage
reduction on-peak. The extra savings rom such end o line
approaches may well exceed the additional costs, compared
to line drop control.
How are potential savings afected i the utility
operates CVR only during of-peak periods?
The decision whether to reduce voltage during peak
periods, o-peak periods, or both depends on the utilitys
motivation or implementing CVR. Operation duringpeak periods will help the utility meet demand reduction
goals; operation during o-peak hours will reduce energy
requirements and prevent high voltage conditions and
associated power quality issues. Some utilities avoid using
CVR during peak demand periods to avoid the risk o
voltage alling below minimum thresholds during those
times. However, operating CVR only during o-peak periods
aects cost-eectiveness, because demand reductions are
an important incentive or utilities that rely on high-cost
peaking units or ace high wholesale costs or peak capacity.
Commissions can review the specifc operating regime autility will apply to CVR and whether it will maximize energy
savings and net benefts or ratepayers.
What are the key considerations when analyzing
CVR cost-efectiveness?
Regulators can consider actors such as the
characteristics o the aected loads, load orecasts, line
losses, remaining distribution equipment lie, and CVR
operational cycles. The extent o distribution system
upgrades and smart grid investments also aects CVR
savings and cost-eectiveness.
What are the barriers to utilities adopting CVR and
volt-var control?
Utility participants in the Northwest Distribution
Efciency Initiative identifed many barriers including:22
Mostoftheenergysavingsareinsidecustomer
premises, reducing utility sales and profts23
Skepticismthatloweringvoltagedoesnotnecessarily
lower load
Currentdesignstandardsfocusonreliabilityand
power quality, not efciency
Lackofpriorityfordistributionefciency
improvements compared to growth-oriented activities
Resistancetochangingoperationalpractices,
including perceived value o a margin or error above
the minimum voltage needed to meet standards,
despite the opportunity or more precise system
operation to allow or margins to be smaller
Reluctancetoimplementnon-traditionalenergy
efciency measures, especially those not ocused on
customers
Lackofcoordinationbetweentheengineering/opera-tions department and the energy efciency department
Limitedawarenessofefciencyopportunities,
methods, and tools or distribution systems
Difcultiesinquantifyingbenets
Limitedinformationandtoolstoguideplanning
decisions or distribution systems
Lackofdistributionsystemautomation,suchas
SCADA
Fearofadverseimpactsoncustomerservicequality
and customer complaints
Concernsaboutswitchingloadstootherfeeders
during efciency upgrades and maintenance
How can these barriers be overcome?
Among the solutions to these barriers:24
Decoupleutilityprotsfromsalestominimizethe
eect that reduced throughput has on utility fnancial
metrics
Demonstratethecost-effectivenessofdistribution
efciency practices and technologies to attract upper
management support
Improveunderstandingofexistingsystem
confgurations and modifcations required or
implementing CVR
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Assessdistributionefciencyprojectsalongwith
other demand- and supply-side options in integrated
resource plans
Focustheutilitysmissionandmanagementon
fnding and delivering on opportunities or efciency
so that it is a priority on a par with reliability, servicequality, and earnings
Ensurethatvoltageregulationwillnotadverselyaffect
customer service or end-use equipment
Improvemeasurementandvericationmethodsand
protocols or energy and demand savings
Adoptstandardengineeringpracticesthatdene
methods or CVR design, modeling, metering, and
maintenance and likely results
Makedistributionsystemefciencyeligibleforenergy
efciency resource standards
Assesswhethernear-terminvestmentsinAMI,
SCADA, sensors, and other distribution equipment
are at least capable o supporting CVR in the uture
Has the utility considered other distribution
efciency measures?
Among the measures to consider are load balancing,
optimizing reactive power, upgrading conductors,
coordinating with distributed resources to reduce line
losses, and smart purchasing practices or distribution
equipment (see text box). CVR may be deployed alone or in
concert with these other strategies, with or without smart
grid technologies.
Transmission and distribution equipment can be
ordered in a range o loss ratings. For example, power
transormers include many layers o wire wrapped
around metal cores. The thicker the wires, the lower the
losses rom the transormer, but the greater its initial
cost. The optimal tradeo depends on how quickly
power cost savings rom reduced losses overcome the
higher initial cost. When a utility seeks price quotesor new transormers, it also asks the manuacturer to
Smart Equipment Purchasing
quote a loss fgure so it can determine what efciency
level to buy. Or the utility can provide the ormula
to the manuacturer who then provides a cost and
losses proposal. Smart purchasing practices include
paying close attention to the ormula used, ensuring
the values are up to date and complete, and applying
these tradeos to all relevant types o equipment and
to decisions about whether to replace an existingtransormer in use or in inventory with a new one.
The Regulatory Assistance Project (RAP) is a global, non-proft team o experts that ocuses onthe long-term economic and environmental sustainability o the power and natural gas sectors, providingtechnical and policy assistance to government ofcials on a broad range o energy and environmental issues.RAP has deep expertise in regulatory and market policies that promote economic efciency, protect theenvironment, ensure system reliability, and airly allocate system benefts among all consumers. We haveworked extensively in the US since 1992 and in China since 1999, and have assisted governments in nearlyevery US state and many nations throughout the world. RAP is now expanding operations with new programsand ofces in Europe, and plans to oer similar services in India in 2011. RAP unctions as the hub o anetwork that includes many international experts, and is primarily unded by oundations and ederal grants.
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1 David Moskovitz and Lisa Schwartz, Smart Grid or Smart Policies:Which Comes First? Regulatory Assistance Project Issuesletter, July
2009, at http://www.raponline.org/showpd.asp?PDF_URL=Pubs/Issuesletter_July09.pd.
2 Some strategies or improving distribution system efciency areapplicable to transmission systems. See Electric Power ResearchInstitute, Transmission Efciency Initiative: Key Findings, Plan orDemonstration Projects, and Next Steps to Increase TransmissionEfciency, publication no. 1017894, 2009, at www.epri.com.
3 EPRI, Green Circuit Field Demonstrations, March 2008, at http://mydocs.epri.com/docs/public/000000000001016520.pd.
4 Reer to the text box Distribution System Terms or defnitions.
5 The net efciency beneft depends on distribution system design,types o loads on the system, and generating resource mix. Motors
and other constant power loads tend to draw more current tocompensate or reduced service voltage levels. And some loads usethe same amount o power over time in order to reach their set-point,even i they consume less when voltage is lowered. In such cases,
the redistribution o power consumption over a longer period maystill reduce peak demand and operation o less efcient generatingunits. See Rob Pratt, MCW Kintner-Meyer, PJ Balducci, TF Sanquist,C Gerkensmeyer, KP Schneider, S Katipamula, and TJ Secrest,Pacifc Northwest National Laboratory, The Smart Grid: An Estimationo the Energy and CO2 Benefts, publication no. PNNL-19112,prepared or the US Department o Energy, January 2010, at http://energyenvironment.pnl.gov/news/pd/PNNL-19112_Revision_1_Final.pd.
6 RW Beck. Full reerence under Figure 1 on page 3.7 Ibid. For some substation inrastructures, system improvements can
reduce voltage by an additional 0.5 percent to 1.5 percent comparedto end o line controls alone.
8 The type o load these end-uses impose (lagging power actor) dragsdown voltage unless power actor is corrected.
9 See http://www.iso-ne.com/rules_proceds/operating/isone/op4/op4a_rto_fnal.pd.
10 RW Beck. The Northwest Energy Efciency Alliance is a nonproftorganization that accelerates the market adoption o energy-efcientproducts, technologies, and practices. See www.nwalliance.org.
11 Ibid., p. E-1.12 Ibid.
13 One average megawatt equals the energy produced by one megawatto capacity operating every hour o the year.
14 Northwest Power and Conservation Council, 6th Power Plan,February 2010, p. 4-13, at http://www.nwcouncil.org/energy/powerplan/6/deault.htm.
15 Pratt, et al., based on research sponsored by the NorthwestEnergy Efciency Alliance and engineering estimates or dynamicoptimization o voltage and reactive power. Assumes 100 percentpenetration o the required smart grid technologies in 2030.
16 Material in this section is based on inormation rom Karen Forsten,EPRI, March 2010.
17 Voltage set point = 118.5 V; bandwidth = 2 V (+/- 1 V).
18 Coordination with distributed resources or loss reduction is thedispatching o distributed generation to supply power to a eederand avoid line losses during peak loads. Load management throughdistribution automation means controlling customer loads by remotemeans to limit peak load.
19 See Reducing Power Factor Cost, Motor Challenge InormationClearinghouse, US Department o Energy, at http://www1.eere.energygov/industry/bestpractices/pds/mc60405.pd.
20 Dominion Virginia Power is running a CVR pilot using AMI. SeeExhibit SN-5, Direct Testimony o Scott Norwood on behal o the
Ofce o the Attorney Generals Division o Consumer Counsel,Virginia State Corporation Commission, Case No. PUE-2009-00081,Jan. 13, 2010. The utility withdrew its proposal or ull-scale AMIand CVR, proposing urther evaluation.
21 Pratt, et al.
22 Global Energy Partners, Utility Distribution System Efciency Initiative,Phase I: Final Market Progress and Evaluation Report, prepared orNorthwest Energy Efciency Alliance, June 27, 2008, athttp://www.nwalliance.org/research/reportdetail.aspx?ID=138.
23 In sample calculations or a wires-only utility, a 1 percent change insales resulted in a reduction in profts on the order o 10 percent.A similar calculation or a vertically integrated utility resulted in a7 percent change in earnings with each 1 percent change in sales.See Regulatory Assistance Project, Revenue Decoupling Standardsand Criteria: A Report to the Minnesota Public Utilities Commission, June 2008, at http://www.raponline.org/Pubs/MN-RAP_Decoupling_Rpt_6-2008.pd.
24 Global Energy Partners; other potential solutions added by theauthors.
Endnotes
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