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Lee Krevat Director, Smart Grid Smart Meter OMS/DMS CBM Microgrid Smart Grid Overview and Job Creation

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Lee Krevat Director, Smart Grid

Smart Meter OMS/DMS CBM Microgrid

Smart Grid Overview and Job Creation

Discussion Topics• Sempra/SDG&E Overview• Key Learning Points• Current Projects: Project Overviews & Job Creation

– Smart Meter: SDG&E’s AMI Program– OMS/DMS– CBM– Microgrid

• Potential Projects– Secure End-to-End Smart Grid Demonstration– GridComm

SDG&E Overview• Service area 4,100

square miles, covering two counties, 25 cities

• Owns 1,835 miles of electric transmission lines and 21,601 miles of electric distribution lines

• Operates two compressor stations, 166 miles of natural gas transmission pipelines, 8,100 miles of distribution pipelines and 6,197 miles of service lines

• 4,500 employees

Key Learning Points• Jobs need to span traditional silos:

– Customer– Distribution– Transmission– Information Technology– Internal and External Education, Training and Communication

• Like any change, preparing for a culture that embraces technology takes time– Prepare the foundation early

• 143% versus 35% ROI based on effectiveness of organization change mgmt (OCM), source: McKinsey– This translates to lower rates– Job creation means that jobs change

Current Projects

• Project Overviews

• Job Creation

Smart Meter

SDG&E Smart Meter Goals

• Replace 1.4 million electric meters

• Retrofit 900,000 gas meters

• Enhance customer service and improve utility operations

• Provide foundation for smart grid, smart premise, smart transportation

• Recognize this is not a typical utility infrastructure project

Business Case Overview$572MM Capital/O&M approved April 2007• Install 1.4 million smart/AMI electric meters for all

customers– Solid-state electric meter technology with ZigBee chip

• 2-way communications• 4 channels

– Electric interval data reads• Residential hourly, C&I 15 mins.

– Remote disconnect/connect integrated within 200 amp meter• Programmable load limiting switch

– On demand reads, demand reset• Adding module to existing 900,000 gas meters

– Daily gas reads

Business Case Overview cont.

– Next-day data for customers online/phone– Home area network (HAN)

• Local connectivity to remote devices, load control technology • Case includes 57K programmable communicating thermostats

(PCTs) for Small/Medium C&I – 55% Operational benefits, 45% Demand Response– Support price responsive tariffs (TOU, CPP, PTR, etc.)– Information systems, integration with legacy systems – Firmware downloadable to the meter– Remote device configuration/firmware & feature updates– Tamper/theft– Voltage– Outage/restoration– Security

Vendor and technology neutral as possible

2,000,000 by Year End 2010

7,000/Day

Total Monthly Electric and Gas Installations

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20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

Janu

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May

June July

Aug

ust

Sept

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Oct

ober

Nov

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2010 2011

Over 2,000,000Installs

7,000/Day

Condition Based Maintenance(CBM)

Benefits of CBM

• Objectives– Extend the useful life and make greater utilization of

transmission and distribution substation assets

– Use technology to measure the performance and condition of equipment to make better maintenance decisions

• Benefits– Improve asset utilization– Improve efficiency of maintenance activities– More data – CBM captures data not seen today– More timely data

Projected CBM Lifecycle

High Level Data Flow Process

CBM Reports

LTC energy is measured at the control cabinet on the other side of the bank

TRANSFORMER COOLINGANALYSIS

DISOLVEDGAS

ANALYSIS

TRANSFORMER ANALYSIS

TRANSFORMERBUSHINGSANALYSIS

Outage Management Distribution Management(OMS/DMS)

OMS/DMS Current vs. Future State

OutageDetected

ProblemDetermined

Switch toIsolate Problem

Problem Resolution

OutageDetected

ProblemDetermined

Switch toIsolate Problem

Problem Resolution

Improved Asset Information and Dispatching of Trouble-men

Automate Alternative Analysis for Minimum Customer Impact

CBM Substation Monitors Provide Real Time Performance

Fewer Customers out During Problem Resolution

Crew Time Savings

Dist Operator Time Savings

SAIDI Reduction

Current

Future

* SDG&E only

• Quicker identification & restoration of outages• Reduced customer impact

OMS/DMS Timeline

• Completed Requirements Phase

• Currently in Detailed design scheduled to be completed in November 2009

• Project implementation date is on target for 2011

MicroGrid

MicroGrid Goals & ScopeSDG&E’s MicroGrid project integrates a DOE component, focused on feeder applications and a CEC component, focused on customer-side applications

DOE Portion– $7.2M in DOE funds contribution towards $12M total project cost over 3 years – Goal to achieve >15% reduction in feeder peak load and improve system reliability– Perform cost/benefit analysis for full scale deployment – Involves Integration of 5 technologies:

1. DER and VAr 2. Feeder Automation System Technologies (FAST)3. Advanced Energy Storage (AES)4. OMS/DMS system5. Price Driven Load Mgmt (PDLM)

CEC Portion– Entirely CEC Funded ($2.8M)– Sustainable Communities MicroGrid project focused on interoperability, AMI and customer DER– Schedule to mesh with larger DOE proj. – Involves Integration of customer based technologies:

1. Remote Controlled Demand Response Devices (e.g. Thermostats)2. Solar panels3. Battery storage4. Plug-in Hybrid Electric Vehicles (PHEV’s)5. Grid-friendly appliances

MicroGrid Project

MicroGrid Selected Project Site

Goal to island an entire substationwith peak load of over 10 MW

Key Characteristics:

Strengths:• No residences nearby, plenty of land• More Existing Solar Customers• Large Reliability Improvements

Possible• Possibility of ‘Islanding’ Entire

Community

Challenges:• Remote Area• Challenging Communications

Environment• New Fencing Required• Requires Accelerating schedule for

Condition Based Maintenance and AMI Deployment

MicroGrid Substation Circuit DiagramBorrego Substation

Diesel Generator

AES

C172C 171C 170

Existing

MicroGrid

Legend

Residential Customer Residential Customer

Commercial Customer

Industrial Customer

Residential Customer

Residential Customer

SCADA Controller on Capacitor

SCADA Controller on Capacitor

SCADA Automated Switches

Residential Customer

Residential Customer

Residential Customer

HAN HAN HAN HAN

HAN

HAN

HAN

AMI Meter

PHEV

HAN Device (ADM )

Water Heater

Pool Pump

Gridpoint Connect

Solar Storage

SCADA Controller on Capacitor

Thermostat

PDLM

PDLM

SCADA Automated Switches

SCADA Automated Switches

SCADA Automated Switches

SCADA Automated Switches

MG Area

SCADA Automated Switches

SCADA

Currently Scheduled Job Impacts

• Smart Meter – 5 yrs– 132 FTEs– 106 Contract– Reductions in meter reading,

field operations– No layoffs; high-turnover,

attrition, re-training– Creating new opportunities in IT,

network communications, meter testing, data analysis

• CBM – 5 yrs– 8 FTE– 6 Contract

• OMS/DMS – 3 yrs– 20-30 FTEs/Contract

• MicroGrid – 3 yrs– 31 FTEs/Contract

Future Projects

• Secure End-to-End Smart Grid Vision

• GridComm

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Utility communications needs are stringent Guaranteed capacity, latency & availability Coverage of all utility assets within 24K sq. miles Robust, provable security & integrity Scalability up to 100K endpoints

700 Mhz Fixed

700 Mhz Mobile

SG Gateways

WiMAX Fixed

Wimax Mobile

Security &

Control

Legacy data radio replacementField serviceSecondary remote site connectionsSCADAAMI backhaul

Smartgrid connections

Broadband corridorsNext-gen mobile applications

Legacy data radio replacementField serviceFlexible dispatch

Remote site hotspotsWide area measurements (phasors)Cartographic & video applicationsPrimary remote site connections

GridComm is Sempra’s concept for next generation RF communications

Future Job Impact Estimates

• Smart Grid – 5 yrs• 15-20% of jobs created

by Smart Grid investments may be utility jobs

• Both union and non-union positions, with most considered green collar

• Many jobs would be created outside of the utility

• GridComm – 2 yrs• 200 FTE/Contract

• Investments will spur innovations in related sectors• Auto• Communications• Home improvement