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Texas Smart Grid Deployment Update Christine Wright Public Utility Commission of Texas June 24, 2010.

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Presentation on theme: "Texas Smart Grid Deployment Update Christine Wright Public Utility Commission of Texas June 24, 2010."— Presentation transcript:

1 Texas Smart Grid Deployment Update Christine Wright Public Utility Commission of Texas June 24, 2010

2 Overview & Contents State of the Market Policy Overview Meter Testing Deployment Customer Access to Data Smart Grid 1.0 Market Readiness Emerging Issues & Challenges Appendices National Town Meeting on Demand Response & Smart Grid June 23-24, 2010 Washington DC

3 Market Structure Four electric scenarios in Texas Municipal Electric Company (ex. Austin Energy, CPS Energy) Cooperative (ex. Bluebonnet Electric, PedernalesElectric) Fully-Integrated Investor-Owned Utility (ex. Entergy, SWEPCO). Investor Owned Utilities exist only outside of ERCOT. Competitive Market within ERCOT: Retail Electric Providers (REPs) and interact with end-use customers to sell electricity. REPs are largely unregulated except for certification and disclosure requirements. Transmission and distribution utilities (TDUs) operate the wires portion of the business and are fully regulated by the PUC. Electric generation is largely unregulated except for market power issues. The PUC has limited authority over Municipal Electric Companies and Co-Ops. The PUC regulates Investor-Owned Utilities(IOUs). PUC sets retail rates for integrated utilities and delivery rates for Transmission and Distribution Utilities National Town Meeting on Demand Response & Smart Grid June 23-24, 2010 Washington DC

4 State of the Market Competitive Renewable Energy Zones (CREZ) Wind Generation Build out of EHV transmission in SPP Energy Efficiency Smart Grid Activities Low Retail Electricity Prices Robust Resource Margins Lower C0 2 Emissions National Town Meeting on Demand Response & Smart Grid June 23-24, 2010 Washington DC

5 Texas Smart Grid Policy 2005 Passage of HB AMI Rule Adopted 2007Passage of HB AMI Deployment Begins 2008Implementation Project Begins Minute Settlement Begins 2010PHEV Project/Rulemaking Initiated 2010 National Town Meeting on Demand Response & Smart Grid June 23-24, 2010 Washington DC 5

6 Independent Testing In response to complaints from customers that smart meters were over-charging, the PUC signed a contract with Navigant Consulting, Inc. on March 16, 2010 to evaluate Smart Meter accuracy for Oncor, CenterPoint Energy, and AEP Texas. The Commission also waived re-read fees for customers concerned about the accuracy of the smart meters. Study components include: Review historic customer usage. Analyze customer complaints. Evaluate utility smart meter processes, procedures and controls involving system hardware and software. Track the accuracy of information transmitted from a smart meter to its final destination (meter-to-bill). Sample customer (conventional meter) usage to compare information and identify any inconsistencies with customer accounts that have smart meters. Side-by-Side testing National Town Meeting on Demand Response & Smart Grid June 23-24, 2010 Washington DC

7 Smart Meter Deployment 2010 National Town Meeting on Demand Response & Smart Grid June 23-24, 2010 Washington DC 7

8 Access to Data 8 Customers Own their Data Customers can authorize a 3 rd Party other than their REP to have their data TDUs read meters and send meter data to ERCOT. ERCOT prepares settlement of meter data and sends to the REP REP bills the customer National Town Meeting on Demand Response & Smart Grid June 23-24, 2010 Washington DC

9 Access to Data SECTION 7. Section , Utilities Code All meter data, including all data generated, provided, or otherwise made available, by advanced meters and meter information networks, shall belong to a customer, including data used to calculate charges for service, historical load data, and any other proprietary customer information. A customer may authorize its data to be provided to one or more retail electric providers under rules and charges established by the commission National Town Meeting on Demand Response & Smart Grid June 23-24, 2010 Washington DC 9

10 Smart Meter Texas 2010 National Town Meeting on Demand Response & Smart Grid June 23-24, 2010 Washington DC 10

11 Smart Grid 1.0 – Market Readiness Update This Smart Grid 1.0 (AMS Deployment) – Market Readiness Update provides an overview of the market participants progress toward operating in a Smart Grid 1.0 (AMS Deployment) environment. Completion of Smart Grid 1.0 (AMS Deployment) will maintain the states commitment to following open standards as opposed to proprietary protocols, maintain ongoing review of data security, and enable REPs to offer innovative products to customers to facilitate competitive market opportunities. Smart Grid 1.0 (AMS Deployment) is the foundation for which the remaining components of the Smart Grid in Texas will be developed. This is defined as: (1) meeting the minimum requirements contained in the Advanced Metering rule (2) meeting the requirements of the Final Orders issued in each AMS Deployment and Surcharge Request proceeding, and (3) meeting the minimum requirements developed by the Advanced Metering Implementation Team for Phase National Town Meeting on Demand Response & Smart Grid June 23-24, 2010 Washington DC 11

12 Emerging Issues & Challenges Meter Tampering Oncor & CenterPoint 500 HAN Device Commitment Low Income Program – Distribution of HAN Devices HAN Functionality incorporated into ZigFestTX events Selection of a HAN Czar 2010 National Town Meeting on Demand Response & Smart Grid June 23-24, 2010 Washington DC 12

13 More Information Christine Wright Public Utility Commission, Competitive Markets Division Ph: Advanced Metering Implementation Project HB Utility Smart Meter Deployment - Monthly Status Reports AEP - Project No CenterPoint Energy – Project No Oncor Electric Delivery – Project No National Town Meeting on Demand Response & Smart Grid June 23-24, 2010 Washington DC

14 Appendices National Town Meeting on Demand Response & Smart Grid June Washington DC

15 Advanced Metering Rule Deployment of AMS is voluntary Includes requirements for: Mandatory AMS capabilities including open standards (ANSI C12.19 & C12.22 or equivalent) Communications with Home Area Network (HAN) Data Access Deployment Information Cost Recovery (surcharge) National Town Meeting on Demand Response & Smart Grid June 23-24, 2010 Washington DC

16 ARRA Recipients in TX Name of AwardeeRecovery Act Funding Total Project Value Including Cost Share CenterPoint Energy$200,000,000$639,187,435 Reliant Energy Retail Services, LLC$19,994,000$65,515,000 Golden Spread Electric Cooperative, Inc.$19,995,000$49,987,500 Denton County Electric Cooperative d/b/a CoServ Electric $17,205,844$40,966,296 El Paso Electric$1,014,414$2,085,095 Center for the Commercialization of Electric Technologies $13,516,546$27,419,424 Pecan Street Project, Inc.$10,403,570$24,656,485 Oncor Electric Delivery Company, LLC$3,471,681$7,279, National Town Meeting on Demand Response & Smart Grid June 23-24, 2010 Washington DC

17 Energy Efficiency The commission is currently in the process of amending the current energy efficiency goals: Increases standards from 20% to 30% of the electric utility's annual growth in demand of residential and commercial customers by program year 2012, Requires 40% annual growth in demand by program year 2013, Requires 50% annual growth in demand by program year 2014, Updates the cost effectiveness standard by adjusting the avoided cost of capacity and the avoided cost of energy; Increases the performance bonus for an electric utility that exceeds its goal. The rule should be in place to allow utilities and service providers to implement for the 2011 calendar year National Town Meeting on Demand Response & Smart Grid June 23-24, 2010 Washington DC

18 National Town Meeting on Demand Response & Smart Grid June 23-24, 2010 Washington DC


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