April 8, 2011Page 1 April 8, 2011 The University of Texas Interdisciplinary Energy Conference Overcoming Barriers to Smart Grid & New Energy Services Panel on Grid Standard Setting and Interoperability Parviz Adib, Ph.D. Pionergy Consulting

April 8, 2011Page 2 Outline Questions to Address Clarification on the Role of NIST Expected Complexity in the New Electricity Era How to Address Increasing Complexity What Are Consumers’ Expectations

April 8, 2011Page 3 Questions To Address Question 1:Whether or not we need to have smart grid interoperability standards being set by anyone, including National Institute of Standards and Technology (NIST)? Question 2:How do you value the role of NIST in setting smart grid interoperability standards?  Important/Unimportant  Helpful/Unhelpful

April 8, 2011Page 4 Clarification on the Role of NIST Standards enable commerce and interoperability –Technical –Operational –Informational –Reliability & Safety Some standards relate to safety and maybe adopted by regulatory agencies Rather than setting standards, NIST is running a process to coordinate and encourage: –Needed standards to be identified –Standards development organizations to work together to set compatible smart grid standards FERC and PUCs may or may not require certain standards

April 8, 2011Page 5 Answer to the Questions NIST is playing an important and helpful role by coordinating and encouraging the development of standards of interoperability. Most standards should be set by a variety of regulatory and industry groups: –Federal Energy Regulatory Commission and State Public Utilities Commissions –Transmission and Distribution Service Providers –Other institutions such as: Institute of Electrical and Electronics Engineers (IEEE), International Electrotechnical Commission (IEC), Open Access Same-Time Information Systems (OASIS), North American Energy Standards Board (NAESB), and others who will propose standards

April 8, 2011Page 6 What Is Expected within the Next Five to Ten Years? Significant changes are expected in the way electric companies will operate as well as unprecedented engagement by customers in their use of energy products and services. In particular, while significant efficiencies in operation will result in lower operating expenses, customers’ increasing engagement may introduce unintended consequences if not managed properly.

April 8, 2011Page 7 What Is Operationally Expected? New and old equipment should operate effectively and reliably and interact instantaneously under smart grid system Various smart appliances and devices will be connected and interact in real time with utility or grid operation Consumers are expected to proactively engage in their energy demand and usage patterns The upcoming system should efficiently handle increasing interactions by consumers through their various smart facilities, smart buildings, smart appliances, distributed generation facilities, electric vehicles, and even other devices that have not been introduced yet.

April 8, 2011Page 8 How to Address such Increasing Complexity? Facilitate increasing reliance on price signals to get the benefits of decentralized coordination of market participants. Allow the market to determine winners and losers and the pace of change. In addition, –Proactively engage in preventing future headaches –Create level playing field (for both manufacturers and consumers) –Provide a clear direction and avoid wasteful investments (unnecessary complexities and deviations in energy products and services) –Protect customers and facilitate acceptance (meet minimum necessary requirements for understanding, expectation, and reliability/security related issues)

April 8, 2011Page 9 What Are Some of The Expectations? For consumers, I want to emphasize the following points: –Easy access to information –Privacy of customers’ information –Avoid unnecessary limitations on customers’ options For Example: No need for obligation to use a particular communication system and control signals (e.g., zigbee). Information should be available to them by any communication system they have access to. –Set clear standards on price communication by retailers to customers Price offered and accepted must be price paid Customers need to know what they are paying, will pay and have paid

April 8, 2011Page 10 Contact Information Parviz Adib Pionergy Consulting Phone No

April 8, 2011Page 11 Questions