Lee

© 2010 San Diego Gas & Electric Company. All copyright and trademark rights reserved

Lee Krevat, Director-Smart Grid

SDG&E’s Smart Grid Deployment Plan

Numbers and forecasts are for illustration purposes only

Smart Grid Technology Conference

June 1, 2011

Smart Grid Deployment Plan

Objectives

Engage customers and other stakeholders to create a Smart Grid

Deployment Plan that reflects the region’s priorities and values –

not just those of the utility.

Align the organization so that it can continue the cultural change

necessary to create the Utility of the Future.

Analyze a wide range of potential projects oriented toward

“smart” technologies and services – prioritizing cost vs. benefits,

both financial and societal.

Comply with CPUC decisions, state and federal policy

SB 17 and D.10-06-047

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Methodology

Presents a comprehensive plan that includes 64 projects in 9 programs

The plan is not a request for funding – it is a “policy guide for future

investments”

8 officers, 18 directors, 150+ managers and staff helped develop the plan

Two-Way dialogue with 25+ stakeholder groups

Aligned to SDG&E Strategic Plan

Collaborating with the Environmental Defense Fund to value environmental

benefits

Partnering with the Office of the Information and Privacy Commissioner of

Ontario on the implementation of customer privacy policies

To be put into practice with the Dynamic Pricing Program

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SGDP Development

SDG&E leveraged the NIST smart grid

conceptual model to develop the SGDP,

with 3 additional “cross-cutting” domains.

NIST Smart Grid Framework 1.0 January 2010

Secure Communication Flows

Electrical Flows

Domain

Domain (NIST Conceptual

Model)Markets

Operations

Service Provider

Customer

Distribution

Transmission

Bulk Generation

Grid & Cyber Security

Info & Comms Technology

HR & Workforce Development

Cross cutting domain

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Organization Ownership

Name Role Responsibility

Smart Grid Executive Steering

Committee

Executive Sponsors Responsible for review &

approval of drafts & final

Smart Grid Director Team Steering Committee Responsible for review &

approval of drafts & final

Smart Grid Team Cross-domain facilitation; Project

Management

Executive reporting; issues

management; accountable for

overall project delivery

Vice Presidents Domain Owners: Customer, Markets,

Transmission, Distribution, Operations,

Bulk Generation, Service Providers,

Grid & Cyber Security, ICT, Workforce

Accountable for delivery of a

domain & its sub-domain

Directors Domain Leads Responsible for team

leadership, delivery of a

domain & its sub-domain

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Customers and Other Key Stakeholders

SDG&E, in collaboration with key stakeholders, will create the

foundation for an innovative, connected and sustainable energy

future in the San Diego region.

Ratepayers Advocates Privacy Advocates

Governmental Organizations Energy & Environmental NGOs

Academia Large Customers / Corporate

Interests

Business Organizations Collaborative Organizations

Workforce Interests

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Requirements

• Smart Market, Customer & Utility. Meet environmental policies.Vision

• Inventory of SG investments and assessment of privacy & security.Baseline

• Provide benefits to consumers and compliance with SB17.Strategy

• Describe Grid and Cyber Security strategy.Security

• Timing of deployment of SG technologies. Roadmap

• Cost estimates for SG investments for next 10 years.Cost

• Analysis: policy driven, environmental goals, economic, etc.Benefits

• Measure performance.Metrics

Source: CPUC

SB 17 requires a “Smart Grid Deployment Plan” to be filed by July 1st

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Vision

The Smart Grid Deployment Plan is the same as the SDG&E Vision

“SDG&E, in collaboration with key stakeholders, will create the

foundation for an innovative, connected and sustainable energy future

in the San Diego region.”

Focuses on customers and stakeholders, and their adoption of

renewables, PEVs, other technologies, and environmental policy

SDG&E cannot wait for others to move forward – our customers are already

moving forward.

Incorporates stakeholder ideas, recommendations and priorities.

SB 17 Alignment

Describes our vision of how the 11 SB17 smart grid goals will be realized by

2015/2020

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Vision: Smart Customer,

Smart Market, Smart Utility

Smart Customer

Empowering customers with more choice on how and when they use energy based on

improved information (including accurate price signals) and access to enabling technology

Smart Market

Empowering customers to participate in demand response and new dynamic rate programs

and ancillary service markets

Requires price signals that accurately reflect cost to provide utility services and avoid cross-

subsidization

Smart Utility (driven by Customers)

Usage information, prices and critical event notifications provided through the customer’s

preferred communication channels

Development of the distribution system and IT infrastructure to enable and support growth in

these customer alternative energy solutions

Includes the provision of balancing, storage, reliability and integration services to customers

which reflects the value of the service the utility provides and the infrastructure investment

that supports it, particularly for distributed generation customers

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Deployment Baseline

Details the current state of SDG&E’s grid

Generation, transmission, distribution

Discusses 2006 San Diego Smart Grid Study

Inventories our past (in service as of 12/31/10) and in-flight

smart technology investments

SCADA/Sensor

Smart Meters

OpEx 20/20

Self-healing circuits

Current state of customer privacy policies

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Smart Grid Strategy

Plan for Smart Grid deployment across business units and functions

Collaborate with stakeholders on an ongoing basis

Plan projects using a decision-making framework

Policy, Value and Pilots

Policy – projects driven by state or federal policy, but potential customer and

societal benefits are calculated

Value – projected benefits outweigh costs or are necessary to effectively

communicate with customers

Pilots – mitigate risk, determine costs and benefits

Aligned to the SB17 goals

Technology and communications network selection

Ensure privacy and leverage interoperability and standards

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Grid & Cyber Security Vision

All Smart Grid participants, such as customers, service

providers, regulators and utilities, are able to:

Rely on the availability of the system

Trust the integrity of the information produced by the system

Confident that sensitive information is secure from unauthorized access

or disclosure

SDG&E’s Smart Grid is resistant to physical and cyber security

threats. It is resilient to attack and natural disasters, and

aligned with industry standards and best practices.

Because resources are finite, it is built on a security program

that uses risk management methodologies to maximize its

security investments.

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Grid & Cyber Security

Vision -> Strategy

Convergence

• Policy-driven coarse-grained controls

• Integration (process &

technology)

• Standards

Disaggregation

• Physical & logical control distribution

• Fine-grained controls tuned for local needs

Awareness

• Situational

• Participant

• Regulatory

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Grid & Cyber Security –

Strategic Objectives

Set privacy as a foundational building block of our Security Programs

Distribute security controls, make them more autonomous

Evolve existing security capabilities

Develop new security capabilities

Unify shared security capabilities

Integrate physical and cyber security capabilities

Identity and access management

Encryption key management

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Roadmap Programs

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SDG&E’s roadmap includes smart grid investments in 9 programs:

SMART

GRID

Customer

Empowerment

Renewable

Growth

Electric

Vehicle

Growth

Security

Reliability & Safety

Operational Efficiency

SG RD&D

Integrated & Cross-cutting

Systems

Workforce Development

Smart Grid Roadmap

Lays out the timeline for our 9 programs from 2011-2020 and their

alignment to policy goals

Shows by project, by year, and policy / value / pilot

Includes brief descriptions of all projects including “Enterprise” projects –

those not being done because of smart grid, but including smart grid

requirements.

Total number of projects – 64

Enterprise – 13 (not included in costs/benefits)

Includes 2015 and 2020 Vision statements in Program timelines for

context

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Background

• Installing 1.4 million smart electric meters and adding module to existing

850,000 gas meters for all customers by December 2011

• Install 1.4 million smart electric meters for all customers

• Solid-state electric meter technology with ZigBee Chip

• Electric interval data reads:

• Residential: hourly, Commercial/Industrial: 15-minutes

Customer Benefits

• Enhances reliability and outage detection, and speeds restoration

• Gives customers more control over their everyday

energy usage, opportunity for lower bills

• Reduced need to access property, more privacy

Currently about 2.18 Million meters installed (>95%)!

Customer Empowerment

Smart Meter

Tools and Programs

• Google PowerMeter / SDG&E Online Tools About 12,000 users

• Demand Response

• Dynamic Pricing – future offering

• Home Area Network Pilots

Awards and Recognitions

• SDG&E’s Smart Meter program was awarded “Best in Quality”,

by Chartwell, Inc. for customer service

• Recognition of being a “gold standard” utility by CPUC

Commissioner Ryan in 2010

• Second year in a row the honor of “Smartest Utility in the in

Nation” by Intelligent Utility Magazine and IDC Energy Insights.

Customer Empowerment

Data Available to Customers

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Distributed Renewable Growth

0

5

10

15

20

25

30

35

40

45

50

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Tota

l nu

mb

er

of

MW

at

year

en

d

Residential Distributed Generation

1MW PV: 10 Minutes on a Cloudy Day

Extreme voltage fluctuation results

Distributed Renewable Growth

Circuits with Potential Issues

23Values are for illustration only and do not represent forecasts

Electric Vehicle Growth

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SDG&E Electric Vehicle Owner’s Club

Electric Vehicle Locations

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Reliability Issues

Solar & Electric Vehicle Customers

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Reliability Issues

Changing San Diego Energy Mix

Energy mix for 2015 and 2020 are subject to substantial uncertainty Values are for illustration purposes and do not represent forecasts

25 TWH

5 TWH

10 TWH

15 TWH

20 TWH

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Transformer Single Phase Analytics

0

5

10

15

20

25

30

35

40

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

KW

8/25/2010 Interval Hours

5781929

5781930

5781931

5782024

5782027

XMFR Sum

Operational Efficiency:

Condition Based Maintenance

LTC energy is measured at

the control cabinet on the

other side of the bank

TRANSFORMER

COOLING

ANALYSIS

DISSOLVED

GAS

ANALYSIS

TRANSFORMER

ANALYSIS

TRANSFORMER

BUSHINGS

ANALYSIS

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Operational Efficiency:

Outage and Distribution Management

• Paperwork

• Manual processes

• Labor intensive

• Software systems are not fully integrated

• Unplanned outages are reported by

customers

• Limited ability for specialized reports

• Near real time data

• Automated process

• Integration with more systems

• Faster outage restoration times

• Better management of customer expectations

• System generated reports

• System generated switching plans

Current State Future State

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Research, Development & Demonstration:

SDG&E Borrego Springs Microgrid Project

Project

Description

In cooperation with the US Department of Energy and the California Energy Commission, SDG&E and 10 public and private sector partners will develop a “microgrid” project - a small version of its electric grid which takes advantage of local distributed energy resources and state-of-the-art controls to enhance grid operations – to achieve a >15% reduction in feeder peak load and improve system reliability.

Current Status •Site Selection complete – Borrego Springs•Finalizing system requirements and high level design•Developing customer communication plan•Collaborating with environmental agencies to satisfy permitting requirements

Energy

Storage

Micro turbine

Rooftop PV Solar

Utility-scale Energy Storage

Distributed GenerationHome Energy System

Ground PV Solar ArrayPHEVs

Switches &

Power

Electronics

Conceptual illustration courtesy of National Energy Technology Laboratory

Distributed Energy

Resources

Utility-scale Energy Storage

Rooftop PV Solar

Micro-turbines

Building Energy Storage

Community Energy Storage

Distributed Generation

Home Energy System

PHEVs

Ground PV Solar Array

Grid Resources

Capacitor Banks

Voltage Regulators

Automated Switches

Power Electronics

Communications

Information

Electricity Pricing

DER status

Demand Response

Programs

Network status

Community Objectives

Load and Resource

Profiles

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Integrated/Cross Cutting Systems:

SDG&E Grid Communication System

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Smart Grid AssetsMobile Data

Smart Meters •AMI•Reclosers•Switches•Fault Indicators•Transformers•Cap banks

Radio

Site

900MHz

4,000 sq mi

•Substation Automation•PMUs•High capacity mobile users•Wide area measurement / controlHigh Capacity Assets

INTEGRATED SECURITY

INTEGRATED MANAGEMENT & RF CONTROL

1. Multiple RF layers integrated via a Control Service2. Use all the spectrum tools available, matching app requirements with spectrum3. Purchase at least one block of licensed spectrum for high-integrity service4. Use SDGE assets for siting RF base stations

Smart Grid Costs and Benefits

“I think there is a world market for

maybe five computers.”

-- Thomas Watson,

Chairman of IBM, 1943

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US Army Photo

“[By 1985], machines [computers] will be capable of doing

any work Man can do.”

-- Herbert A. Simon, 1965

Cost Estimates

Costs and Benefits calculated based on nominal $

Does not include Enterprise projects

2012 GRC, active and approved applications are based on filed numbers

Conceptual estimates 2011-2015

Provisional ranges 2016-2020

Capital Expenditures and O&M

$ by Program Low/High – not projects

Includes Baseline projects costs as of EOY 2010

Smart Meter and Operational Excellence 20/20

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Benefit Estimates

Analysis is based on the EPRI framework developed for DOE

Societal (includes environmental, societal, and fuel cost savings for customers)

shown separately in a holistic view

SDG&E investment is necessary but not sufficient for customers & society to realize these

benefits

Conceptual estimates 2011-2015, provisional ranges 2016-2020

Similar range percentages were used for conceptual estimates and provisional ranges

Terminal Value estimate to capture post-2020 value based on useful life of assets

Estimated at the project level (economic and reliability) and summarized by Program

“Difficult to quantify” benefits, such as energy independence, customer

convenience, customer satisfaction, public and worker safety, and enterprise

goodwill will be discussed in narrative but their value is not monetized

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Societal Benefits

Identified and quantified (jointly with EDF) societal benefits related to

reduction of environmental footprint and customer fuel cost

savings enabled by Smart Grid investments.

2011-2020 Benefits

Low Range

2011-2020 Benefits

High Range

Estimated Avoided Emissions Reduction by

Integrating Centralized Renewable Energy

Estimated Avoided Emissions Reduction by

Integrating Distributed Generation

Estimated Avoided Net Emissions

Reduction by Integrating Electric Vehicles

Estimated Avoided Fuel Cost by Integrating

Electric Vehicles

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Metrics

SDG&E worked with the other CA IOUs and the Environmental Defense Fund to

develop a list of Smart Grid metrics

Dozens of metrics were evaluated by the working group; 19 were determined

to be “consensus” metrics

Customer/AMI– 9

Electric Vehicles – 1

Energy Storage – 1

Grid Operations – 8

A ruling is expected from CPUC to establish the consensus metrics (with

potential minor changes), and possibly others, for ongoing reporting

Pending that ruling, we are including the Consensus metrics in the SGDP

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