PG&E SmartMeter to Smart Grid Transition

March 6, 2012

Jim Meadows

Pacific Gas and Electric Company

The Challenge of Becoming SMART Operationally

Company Overview

Energy services to 15M

customers

9.8 million electric and gas

meters

70,000 square miles with

diverse topography and

climate zones

Provides generation,

transmission, electric

and gas distribution

20,000 employees

A regulated investor-owned

utility

De-coupled revenues / sales

Energy Efficiency Matters for California

SmartMeter™ Project Timeline

2007 2008 2009 2010 2011 2012

2002: Business Case: Hourly interval meters

2005: SmartMeter field pilot

2006: Full meter deployment begins

2007: Online access to interval usage data

2008: SmartRate (CPP) tariff

2009: Remote electric connect / disconnect

2009: Outage management integration

2011: Operations center opens

2012: Opt-Out program

2012: Green Button

2012: Solar (net metering)

2012: ANALYTICS PLATFORM

2013: Home area network

2013

Peak installation:

18,732 on April 7, 2010

5

SAP Asset Mgmt

Oracle CIS

MDMS

Meter Data

Management

& Storage

Analytics

Platform

Meters Collectors Backhaul

Residential

Headend

Controllers

Commercial

Systems Data Management

Public

Wireless

Network

Public

Wireless

Network

Web Server

Outage Mgt.

Gas Network

PG&E’s Smart Technology

All meters see 2

or more devices

Meters hold 45

days of intervals Rely on Carrier

redundancy

Disaster Recovery systems located

in separate data center facilities

Exponential Data Growth

Customer energy data

collected now

compares to the height

difference of the Statue

of Liberty to a can of

soda

The Utility needs a data & analytics strategy and platform

Data availability and retrieval rules need to be drawn

Lines of business need to be engaged

Data analytics prepared and integrated into business practices and operations

So Now What?

Data Analytics Platform at PG&E

Customer tariff offers (Time/Day differentiated rates)

Customer Service (Energy Cost Alerts)

Energy Management Tools (Green Button)

Energy Theft Detection

Electric Service Restoration Support

Energy Efficiency Program customer segmentation / targeting

Analytics Use Cases: Now

Provide data-enhanced Energy Audits

Identify previously unknown PV or EV customers

Condition-based maintenance on distribution assets

Deferral of substation peak-load asset investment

Analytics Use Cases: Near Term

Typical Load Shape on a PG&E circuit

% of Max Demand Demand Threshold in KW Hours Time of Day Days

Max Demand 5,292 1 5 PM 1

95% 5,027 11 3 to 6 PM 5

90% 4,762 20 2 to 7 PM 9

85% 4,498 60 2 to 8 PM 21

80% 4,233 131 1 to 8 PM 33

Highest demand is concentrated in

very few hours

Substation Capacity Deferral Opportunity

PG&E plans to spend

$12.5B on T&D capital

investments in next 5

years

– $2.8B dedicated to

T&D capacity

expansions

Goal: find the

substations with

needed capacity

expansion that can be

offset by DSM

6

Case Study: Substation M

8

Customer %

Food Processing 10.26%

Food Processing 3.19%

Manufacturing 3.06%

Retail 2.00%

Retail 1.57%

Manufacturing 1.30%

Retail 1.12%

Automotive 0.82%

Food Processing 0.80%

Manufacturing 0.55%

Retail 0.52%

Retail 0.48%

Retail 0.47%

Hospitality 0.42%

Food Processing 0.35%

Top 15 Customers in Order of

Contribution to Peak Load

Substation MW intervals

Sept 2012 – Aug 2013

Maximum

Substation

Capacity

Usage

Identified Opportunity: Substation M

SmartMeter data

identifies Substation M

with a concentration of

15 customers driving

peak demand

Targeted DSM

programs to find 1 MW

of peak demand

Success could defer

$6M of capital

investment with $450k

of Energy Efficiency

program costs

Rethinking the Internal Processes

T&D engineers have historically not considered Demand Side

Management when planning capacity expansion projects:

billions of dollars may ultimately be saved (at least deferred!)

PG&E finds that EVERY business process within the utility has

already or will be significantly changed due to the SmartMeter

technology

Plan the analytics platform early; the more robust the platform,

the sooner the internal processes can adopt and adjust

Smart Meter data combined with analytics changes everything

Power

Plants

Transmission

Networks

Substations Distribution

Networks

Consumers

Overlay with intelligence and automation

Sense Communicate Compute Control

Moving to A Smart Grid

Targeted

deployment

• Extend pilots to

targeted roll-outs

based on benefits

• Insights used to

feed the next cycle

of technology

deployment

Controlled Pilots

• Implement tested technologies in a real-

world but controlled setting to demonstrate

value

• Work with customers to prepare for the new

technologies and services

Standards definition

• Shape and validate the

standards that will

underlie future smart-

grid implementations

Testing

• Prototyping and testing of smart-grid

technologies before piloting

• Accelerate technology development

and ensures standards compliance

early on

• Develop preliminary customer

communications to support pilots

Implementation Approach

PG&E

Service

Area in

Northern &

Central

California

Smart Grid In Progress

PG&E is using Smart Grid technologies to provide

customers with benefits today

Home Energy Reports

Online Information

Engaged Consumers

Customer Energy Management

Energy Storage

Smart Markets Smart Utility

Outage and Load Management

1

6 Substation A

Substation C

4

5 3

2

Outage

Substation B

Advanced Automation

Engaged Customers

Home Energy Report Program – Over

660,000 customers to date receive

personalized reports.

Energy Alerts Program – Over 77,000

customers have signed up to receive

these alerts.

PG&E’s HAN Enablement Program will

allow customers to select and validate

HAN devices for use.

PG&E’s Customer Data Access platform

will allow third-party access to customer

usage data once authorized by the

customer.

Since its launch,

customers have

“clicked” on the Green

Button over 100,000

times to download

customer data from

PG&E’s Website

Smart Energy Markets

• Nearly 80,000 customers participated

in PG&E’s Smart Rate program to

reduce their bill (8%) and reduce

peak demand (13% on 15 Smart

Days)

• Over 65,000 Customer-owned Solar

PV generators connected reliably

• Completed AutoDR intermittent

resource integration pilot

• 2 MW battery installation released to

Operations

Saving customers money and integrating renewables through markets

Smart Utility

• 200 circuits across PG&E’s

system with advanced

distribution automation to

improve reliability (800,000

customer minutes of outage time

saved on just 13 events)

• Smart Meter data is fully

integrated with PG&E’s Outage

Management system (over 6,000

truck rolls avoided in 2012)

• Western Interconnection

Synchrophasor Project is in

construction across PG&E’s

Service Area

Improving reliability and safety with technology

Smart Grid and Cyber Security

PG&E’s cyber security framework provides a baseline for risk management and

informs controls implementation involving people, process, and technology

New Smart Grid Programs Pending

• Smart Grid Line Sensors

• Voltage and Reactive Power Optimization

• Detect and Locate Line Faults

• Short Term Demand Forecasting

The projects will be implemented in 2013-2016

• Renewable Integration

• Grid Modernization and Optimization

• Customer Service and Enablement

Smart Grid Pilot Projects

EPIC Technology Demonstration and Deployment

Program will be in place through 2020

Becoming SMART Operationally

Innovation must continue

There are much more benefits to come from the

SMART generated data

Smart Meter data combined with analytics changes

everything

25

Questions?