Connectivity:the Key to the Smart Network

Richard BertoloProject Director Smart NetworksFebruary 25, 2009

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Distribution:

123,000 km of distribution lines,

1.8M poles, 1.3M customers,

640,000 sq km service territory (twice the size of Texas),acquired 90 utilities since 2000

(still about 90 utilities left)

Who are weTransmission:

28,600 (circuit - km) interconnected

85,000 towers, 4000 km fibre

Peak demand: 27,005 MW

Energy transmitted: 157 TWh

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Ontario Ministry of Energy Direction

• Create an energy conservation culture across Ontario and help consumers better manage their electricity use

– More efficient use of Ontario’s existing supply

– Reduce reliance on external generation resources

– Need to replace 80% of generation over next 20 years (~$70B)

• Convert 100% of the 1.2 million smart meters to TOU.

SummerPeak

WinterPeaks

SummerPeak

WinterPeaks

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Smart Metering System

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What have we done

• Deployed just over ¾ of the smart meters since end of 2006– Tested AMI communication in “in situ”lab, urban and rural

– Automated change meter order process

– GPS / Geo-code

– Deployed a community (15k in 2006), tested processes and communications

• Network build for approximately 350,000 smart meters

• Using AMI for AMR

• In process of CIS upgrade and MDMR Integration

763,009

Total InstalledAs of Feb 20/09

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Man Made Challenges

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“Creepy” Challenges

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Big Challenges

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Smart Meter Project Timeline

External

Meters Installed

Meters Communicating

Head End

AMI Index Billing

TOU Billing

Release 3 - Optimize and Transition

Organizational Alignment

Customer Communication

2008 2009 2010 2011

MDMR V6.1 Go-Live MDMR V7.0 Go-Live

MDMR -ready version of Head End

23K

250K

SLA Comm (L3)

Reliable Comm (L2)

Base Comm 9L1) 955K

800K

250K

1.3M

700K

1.3M

TOU Customers Migrated

Begin TOU Billing

1K 100K 900K500K Complete

TOU Incident Management Tool (MOMS)

Boarder Patrol. Select vendors/tool Implement

SVC Operational Enhancements

CMO Sustainment Tools (if req'd)

Sustainment Milestones

Organization Design Milestones

Training Milestones AMI TOU

MDMR -enrolment

MDMR

Transition Field Svcs and Network Svcs to Sustainment

Org Design for Sustainment Org'ns

Bus Readiness Activities

Pilot 1K AMI Index Billing Ramp Up

Customer Pre-Install Meter Pkg Customer TOU Notification Pkg

Customer Education Phase 2Customer Education Phase 1

720K

690K

C&I Demand

Res and Small Comm

1070K

625

Complete

2500

1.1M

Complete

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Where are we going

Deploy a smart metering/network solution that meets the Ministry of Energy’s requirements at the lowest possible cost and is an enablerenabler for other business processes and transformations:

IP / Standards / Secure / Open, non-proprietary – the foundation

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The Future

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Architecture - Leveraging AMI Infrastructure

Key Value Release Functions

� Vision / BCS� POC• Plan �Pilot

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2005 BCS / Architecture

Smart MeterMinimum

RequirementSmart Network – Utility Requirements

Field Workers, Offices & HomesMeters

Bandwidth Growth

1 2 3 4 5

**Value Added Services

1200 bps

2 Mbps

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ThirdParty

∆ Benefit > ∆ Cost by 3:1 for Utility applications and (level 4)

Basic

- AMR- kWh, kW, kVA- Outage Detection- Meter Management- Real-time OutageManagement

Basic + In-home Services

- Remote DisconnectConnect

- Load Limiting- Theft Detection- Load Control- In-home display- Multi-Utility AMR- LDC AMR- Home Security

Basic + In-homeServices +Hydro OneBackhaul

- Power Quality- Feeder Analysis- Station Monitoring SCADA

- Office Backhaul- DG

Basic + In-home Services + Hydro One Backhaul + Mobile Office

- Mobile Dispatch- Mobile Time Reporting- Mobile Accomplishment Reporting

- Mobile Asset Condition & Defect Reporting

- Safety Monitoring- Fleet Management- Asset Security- Cellular – Paging – Email- Optimized Dispatch - Automated Map Updates

Basic + In-home Services + Hydro One Backhaul + Mobile Office + Rural Broadband

- Residential Broadband- MUSH Broadband

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Building in Stages

SmartMetering

Increasing Evolution of a S

mart N

etworkUtility

Applications

DataManagement

UpgradedCommunications

�Securing Spectrum�Leverage existing

towers and fibre

�Evolving into AMI with the addition of disconnect ability

�Platform for CDM initiatives

�DxAutomation�DG integration�Mobile Worker

enablement

�Cornerstone�Border Patrol

Branch

Identity Services

Compute Services

Unified Communications

Services

Application Oriented Networking

Collaboration Applications

Data Center

Integrated

Network Services

Campus

Network Systems

Network Infrastructure Virtualization

Storage Services

Mobility Services

Security Services

Application Delivery

Business Applications

Applications

Man

agem

ent S

ervi

ces

Branch

Identity Services

Compute Services

Unified Communications

Services

Application Oriented Networking

Collaboration Applications

Data Center

Integrated

Network Services

Campus

Network Systems

Network Infrastructure Virtualization

Storage Services

Mobility Services

Security Services

Application Delivery

Business Applications

Applications

Man

agem

ent S

ervi

ces

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Data Tsunami

• The current grid produces enormous volumes of data, most of which cannot be analyzed, or is analyzed in an isolated context.

• The Smart Network will produce exponentially more data, so if a utility does not change how it processes and analyzes that data, it will flounder operationally and competitively

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Typical Smart Network Roadmap

For rural utilities, it’s all predicatedon upgraded Telecommunications!

SupplyAutomation

Supply Optimization and

Control

• Controllers• Monitoring Devices • SCADA• RTUs• Switches• Capacitors• Volt/Var Control

• Sensors• Filters• Recloser Controls • Capacitor Controls • EMS• Restoration System• Smart Appliance

Communication Network

Advance Metering

Infrastructure & I/O Devices

• SCADA / Data Collection

• RTU / Transmitters • Advanced Meters• Sensors• Surveillance Cameras

• Wireless• Radio Frequency • Fiber Optics • LAN• PLC• BPL• IP/MPLS

Basic Automation Advance AutomationModerate Automation

Self-HealingGrid

• Self-Performance Optimization

• Robustness• Preemptive Reaction

to Potential Problems• Self-Restoration

Source:Shpigler Group

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Lack of Commercial

Network Coverage

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Telecommunications Assets• Hydro One Networks Inc.

� 85,000 Transmission Towers� 98 Microwave Towers� 1.8 million poles� 29,000 km’s of Rights-of-Way� 3,700 route kilometres of fibre� Two internal provincial networks

• Power System (Sonet, Digital M/W, PMR)• Administrative network

• Hydro One Telecom Inc.� Non-dominant commercial carrier� 7/24 NOC operated for Hydro One Networks

However, Tx focussed!

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Leveraging those Assets

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Rotary-dial phones in an iPhone world

Utilities need to upgrade their telecommunications infrastructure:

• Bandwidth� “…new workers in 2010 will require more than 30 times the data bandwidth

that the current radio systems provide…”� CEA Distribution Roadmap

• Aging Infrastructure� “Taking the opportunity to refresh telecommunications assets with modern

technologies as older equipment is retired is an important step to cost-effectively realising EnergyAustralia’s intelligent electricity network vision.”

• Smart Meters lead the way to Smart Networks� “There is no perfect communications method…there is no single system today

that covers the whole service area of a utility’s grid, including adequate coverage to handle every meter and other device that might be deployed.”� Capgemini Smart Grid: Leveraging Technology to Transform T&D Operating Models

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Dedicated Spectrum is required!• Spectrum is controlled by Industry Canada

� recent media attention on the $4.5B AWS auction of 105 MHz.

• Non-Existing/Deteriorating services outside urban areas.• Lack of ubiquitous rural broadband…tough business case for telco’s

• Telco infrastructure is aging…Service levels are deteriorating• Utilities are force majeur entities, wireless carriers are not!

� Wireless Carrier's focused on Triple/Quad/??? Plays • Focus is on high density urban markets• Offer of tower/fibre utilization rejected!

• For large service territories propagation is key• Sub 2GHz is ideal.

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Electricity underpins our Digital Economy!• Natural/Man made

disasters impact electric grids which require quick restoration….economic impact!

• Terrorism against electrical infrastructure must be prevented.

• Lack of electricity impedes first-responders efforts.

• CEA and UTCC submissions have highlighted the need for Critical Infrastructure requirements!

Disaster ResponseDisaster Response

Gas and Gas and Water UtilityWater Utility

Police, Fire Police, Fire & Ambulance& Ambulance

ElectricElectricUtilitiesUtilities

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Industry Canada listened….

• Prior CEA submissions had set the stage

• Joint submission under UTCC by BC Hydro, AltaLink, Manitoba Hydro, Hydro Quebec and Hydro One requested specific spectrum

• Submissions focussed on new data centric Model developed based on utility functionality

� Identifiable applications� Leveraging existing infrastructure� Utilizing accepted RF techniques

• Model built on Hydro One experience base but validated by other Canadian, as well as American, ICT utility professionals

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Workings of the Model

• Network design

parameters driven by

existing experimental

spectrum utilization

results in Hydro One test

bed

• Utilizing 3 different

topography’s

approximates most of

Canadian electric service

territories

StationStationSecuritySecurity

DistributionDistributionAutomationAutomation

MobileWorkforce

Real TimeOutage

Management

Energy Conservation

Wireless Wireless SpectrumSpectrum

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3.5GHz Experimental Test Site

•Established in 2005•WiMax backhaul 802.16d•Interoperability•Propagation

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Proved the concept

Mobile IT

Rationalize Communications Network

AssetSecurity

SCADA

AVL/Safety

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Data Traffic Profile – Statistical Distribution

Daily PeakDaily Minimum

Daily Average

Real Sample of Weekly Data Profile

Assume throughput rates map into a statistical distribution

Pro

babi

lity

Daily PeakDaily Minimum

Daily Average

Bit Rate(s)

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1800-1830 MHz!• Industry Canada has issued a Public Consultation

�Comments submitted August 6th

�Working within existing SRSP’s to expedite…assume Q1 2009

�Existing fee structure…for now. �Upon completion this will set a precedent for global utilities!

• Continue discussions with Vendors re WiMax eco-system development

• Continuing to explore alternatives to provide economic connectivity

Targeting deployment in 2009!

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EssaEssa TSTS

Smart ne

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120km

120km

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Smart neTx / Dx Stations

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31

Smart ne

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EssaEssa TSTS

Existing Add/Drop

Sites

Smart ne

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Georgian Bay – Zone 5Topography Map

Legend

∀ Open Land! Forest! Marshland! Suburban/Urban! Water

Smart ne

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Smart ne

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Georgian Bay – Zone 5WiMAX Network Coverage@ 1.8 GHz – 8 SitesCPE Height = 15m

Smart ne

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Smart ne

Wind

Bio-Mass

NUG Hydro

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Smart nenenene

Owen Sound Area – Zone d’essai

•• Roll out of enablers Roll out of enablers -- Wimax and GIS deploymentWimax and GIS deployment•• Realize mandated programs Realize mandated programs -- CDM, Smart Meter, DGCDM, Smart Meter, DG•• Technology trials Technology trials –– GIS mapping, IEDGIS mapping, IED’’ s, Mobile IT, s, Mobile IT,

ORMS/OMS, ORMS/OMS, DxDx monitor and automation, DG SCADA, monitor and automation, DG SCADA, customer demand response, Energy Storagecustomer demand response, Energy Storage

•• Develop training materials and Operating proceduresDevelop training materials and Operating procedures

Hydro OneHydro OneGreen Initiative•• PHEV trial in the SmartZone PHEV trial in the SmartZone •• Third Party collaboration Third Party collaboration -- Realize energy savings Realize energy savings –– Res/ComRes/Com•• Technology trials Technology trials –– CDM Controllers, Smart appliance CDM Controllers, Smart appliance

interfaceinterface

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With Broadband you never know what you will see out there…….

Connectivity has put us on the roadmap!Thank you.