Microgrids and Infrastructure Resiliency RPI Microgrid Workshop Stuart Nachmias October 10, 2013

2 Consolidated Edison, Inc. 3.3 million electric customers 1.1 million gas customers 1,717 steam customers Peak demand: 13,322 MW (7/19/2013) Load density – CECONY: 22 MW/sq mi – Manhattan: 146 MW/sq mi Con Edison Company of New York (CECONY) 303,000 electric customers 131,000 gas customers Peak demand: 1,617 MW (8/2/2006) Orange and Rockland (O&R) CECONY and O&R delivered 43% of NYS 2012 electric peak consumption

Avenue D at East 14 th Street 3

Battery Park Underpass 4

5 Overhead Damage in Queens

Underground Resiliency ApproachSolution Harden Infrastructure Elevate Equipment Flood Barriers Submersible Equipment Fiber-optic Cable Increase Grid Flexibility Network Reconfiguration Increased Automation Sectionalizing Switches Enhanced Communications Remote Monitoring and Control 6

The Utility of the Future 7 Traditional grid structure Future grid structure Customers receive electricity Dedicated networks with limited resources Grid as a sole source Real-time data/control Customers receive/feed electricity Networks with shared assets and layered customer resources Grid as a sole source, back-up, and two-way flow Increased real-time data/control Customer-sited generation Smart building technology Solar PV Electric vehicles Customer-sited generation Sensors and monitoring

Con Edison Smart Grid Strategy Expand T&D Smart Grid technology with proven benefits – DOE Stimulus Smart Grid Investment Grant Projects Continue to develop / demonstrate emerging Smart Grid technologies with less certain benefits – DOE Stimulus Smart Grid Demonstration Projects Distribution Automation 82% 8

Smart Grid Investment Grant Flushing Network Installation of underground autoloop and underground wireless controlled switches Reduces severity and likelihood of a network event Increases flexibility during contingencies Sub - Network B Sub - Network A Sub - Network C Substation 9

Smart Grid Demonstration Project Interoperability of Resources Con Edison Distribution System Status integrated with Customer Resources Targeted Demand Response from the following – Building Management System (BMS) – Controller Connected to Standby Diesel Generator – Controller Connected to Electric Vehicle Charger with Standby Battery and PV Generation – ThinkEco Modlets 10 Visualization Platform

Smart Grid and Resiliency Converge Micro-networks Utilize Latest Technology Harden Components Mitigate Impact Facilitate Restoration 11

Overhead Resiliency ApproachSolution Harden Infrastructure Tree Trimming Selective Undergrounding New Pole Designs Resilient Cable Designs Increase Grid Flexibility Increased Automation Reduced Customer Density per Circuit Smart Switches Isolation Devices Enhanced Communications Remote Monitoring and Control Automatic Meter Infrastructure 12

Before MIDPOINT FEEDER F2 STATION BREAKER FEEDER 1 TIE RADIO STATION BREAKER FEEDER 2 FEEDER F1 Overhead Distribution Initiatives Patented Enhanced Autoloop 13 After MIDPOINT FEEDER F2 STATION BREAKER FEEDER 1 TIE RADIO STATION BREAKER FEEDER 2 FEEDER F1 EMERGENCY FEEDER F4 BACKUP RADIO EMERGENCY FEEDER F3 BACKUP RADIO Smart Switch

Microgrid Vision Hybrid utility grid solutions – Micro-networks paired with local generation sources – Spot networks with mobile generator back-up Benefits – Support customer and community needs during emergencies – Manage customer demand during peak periods – Manage utility investment needs 14 Smart building technology Solar PV Electric vehicles Customer-sited generation Sensors and monitoring

Microgrid Challenges Customer goals Load density Developing the business case Regulatory framework 15

Next Steps for Con Edison Continue to evolve smart grid investments Seek funding to develop initial microgrid projects Identify technical and business issues Examine regulatory models and experiences – United States – International 16