Laura Butler - AMI Team Leader, Central Hudson Gas & Electric Corporation NY, USA

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1 Laura Butler - AMI Team Leader, Central Hudson Gas & Electric Corporation NY, USA

2 Developing the AMI and Smart Grid Program at Central Hudson Gas & Electric

3 Overview The Implications of Smart Grid Key Drivers Cost & Benefit CHG&E s Vision & Approach CHG&E s CIDR Program Future Steps October 27 28, 2009 New York, NY

4 Smart Grid Characteristics The Smart Grid can: Enable active participation by consumers Accommodate all generation and storage options Enable new products and services Provide power quality for the digital economy Optimize asset utilization and operate efficiently Anticipate & respond to system disturbances (self-heal) Operate resiliently against natural disasters October 27 28, 2009 New York, NY

5 What is driving Smart Grid now? Environmental Concerns Technology Advancement Economics ARRA/DOE Stimulus funding October 27 28, 2009 New York, NY

6 Recent Analysis of Smart Grid Benefits and Costs Study conducted by Jackson Associates Are Smart Grids a Smart Investment 1 a nation wide study of 200 largest US utilities applying load control and pricing programs to 800K end use customers shows: Possible Energy Savings of over 115,000 MW, or 20% of peak demand Avoided cost of $120B, net savings of $48B after Smart Grid costs Benefits for more than third of utilities analyzed are marginal with b/c ratio < 1.5. October 27 28, 2009 New York, NY

7 Smart Grid Stakeholders Electric Utility Consumers Retailers Environment Enables higher loading of utility assets (lines, transformers ) Enables increased monitoring and diagnostics to enhance the life of utility assets Improved line fault detection and diagnostics Improved customer satisfaction Power quality and reliability improvements Friendly access to detailed consumption information to make informed choices and enable faster transactions Enables and promotes energy conservation Expands retailer s ability to offer new service offerings Enables time-of-use rates and critical peak pricing Established platform to offer future home appliance monitoring and control Enables demand-side management Integration of solar and wind generation into grid Promotes energy efficiency through immediate energy consumption awareness October 27 28, 2009 New York, NY

8 Smart Grid Barriers Availability of smart appliances and consumer product development Technology turnover Standards and protocols evolving Customer opinion and education What s in it for me? Availability of dynamic pricing October 27 28, 2009 New York, NY

9 NYISO Market Simulation October 27 28, 2009 New York, NY

10 Analysis applied to CHG&E Specialized business case needed No utility has same avoided costs or benefits Business case dependent on technology selected, economic and societal conditions Understand customer reaction, behavior, and gauge actual response Business case will be summation of factors; not one silver bullet October 27 28, 2009 New York, NY

11 Smart Grid Alignment with Organizational Goals Continual Improvement of Service Reliability Grid modernization and optimization Enhanced Environmental Responsibility Integration of renewables Consumer Empowerment Usage information, dynamic rates, and new services Energy Efficiency Loss reduction and heightened consumer awareness October 27 28, 2009 New York, NY

12 NYS Regulatory Activity February 2009 PSC approves AMI functionality standards March 2009 DOE funding opportunity announcements April 2009 Compliance filings regarding ARRA May 2009 Filing revisions to meet ARRA requirements July 2009 PSC approval for Smart Grid / AMI project contingent upon 50% DOE funding

13 Circuit Intelligence & Demand Response (CIDR) Program AMI Electric Distribution Modernization Customer Systems

14 AMI Wireless RF mesh Two tiers; 2.4 GHz LAN and 5.8GHz WAN Deploy 10,000 electric smart meters Integrate MDM with existing systems CIS

15 Distribution Communication and Automation Relays, Electronic Reclosers, Switched Cap Banks, Regulators, and Sensors Integrated System Model (ISM) Near real-time planning and analysis software Monitoring and Feedback Integration with OMS

16 Customer Programs Home Area Network Devices (HAN) IHDs, Thermostats, Load Control Devices Web Presentment Customer web pages for viewing usage, HAN control, and messaging Dynamic Rates Hourly Pricing and TOU options

17 CIDR Program Create 10 Smart Circuits Integrate existing systems and utilize real-time meter and grid data Offer Customer Pricing Options Use the ISM to create scenarios for control scheme development Provision system for distributed resources

18 CHG&E s CIDR Program and Future Applications Provide communication backbone for other systems Enable substation modernization through advanced protective relaying equipment Enable distribution circuit optimization through monitoring and control Provide real data inputs for full deployment business case

19 Next Steps Establish and evaluate customer perception and interest Evaluate business processes and procedures Encourage internal participation in the movement toward Smart Grid Keep our fingers crossed for Stimulus funding!

20 Summary The benefits of Smart Grid will be diminished without active customer involvement No matter what your vision, you have to start somewhere This is the most exciting time of our careers so be a part of it

21 Thank you! Any Questions?