1. Grid Modernization: Basic Technical Challenges Advocates Should Assert
Unleashing Latent Value in Distribution Utility Businesses
NASUCA Annual Meeting
Orlando
November 13, 2018

2. Preview Introduction to the Wired Group
Grid Modernization Justifications/Questions to Ask
Is there really a problem?
How extensive is the problem?
What’s the least expensive way to solve the problem?
Who should pay to address the problem?
Best Practices in Grid Modernization
Opportunity: Grid Modernization Working Group
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3. Wired Group Background
Leading Advocate experts on grid modernization plans & performance
Comprehensive, objective evaluations of smart grid deployments
SmartGridCity™ for Xcel Energy (2010)
Duke Energy Ohio for the Ohio PUC (2011)
(California DRA, Southern California Edison, smart meters only, 2012)
Findings:
Plans always overstate benefits to customers
Plans always understate costs to customers
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4. IOU Grid Modernization Justifications
To improve reliability and/or resilience
To reduce reliability risk of distributed generation
Is there really a problem?
How extensive is the problem?
What’s the cheapest way to solve the problem?
Who should pay to address the problem?
Advocate Grid Modernization Questions
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5. Is There Really a Problem?
Fitchburg G&E DG: 3.1 MW
Fitchburg G&E System Peak: 85 MW
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6. Is There Really a Problem?
PG&E DG Proposal: “In this rate case we’ll spend $40 million to add relays on the high voltage side of substation transformers equipped with single-phase fuses to prevent DG-related problems during transmission-level outages. About 30% of our substations are of this design. We’ll do 1/3 now, and 1/3 in each of the next 2 rate cases.”
Discovery
Round 1: “What is this problem, exactly?”
Round 2: “What chain of events is required to cause an outage?”
Round 3: “What probability is associated with each event in the chain?”
Link in the Chain of Events Required to Create the Problem (Confidential)
Probability as characterized by PG&E (Confidential)
Probability per witness Stephens’ experience
A occurs
Low, Medium, or High
0.006
B occurs
1.000
C occurs
0.500
D occurs
0.010
E occurs
0.100
Total: the probability of all of the above to occur collectively to manifest the problem PG&E’s installation of substation relays avoids
(probabilities multiplied)
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7. Is There a Problem? To What Extent?
“Tests of grid tied inverter systems at NREL suggest that the fault current time period is 0.06 – 0.25 cycles. This time period is typically within the subtransient reactance values for trip times for circuit breakers, and therefore can possibly be ignored.”
Keller, J & Kroposki, B. “Understanding Fault Characteristics of Inverter-Based Distributed Energy Resources”. NREL Technical Report TP January, P. 38.
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8. What’s the Cheapest Solution? Non-Wires Alternatives?
SoCal Edison Proposal: “We’ll spend $81 million to increase DG capacity on 74 circuits, so that we can solicit DG projects from third party developers. This may help us defer or avoid circuit/substation upgrades”.
Note: The $81 million did not include carrying charges, premature retirement of equipment with book value remaining, or the cost of energy from the DG projects.
In discovery round 1, SoCal Edison identified the circuit/substation upgrades which might be deferred or avoided.
In discovery round 2, SoCal Edison estimated the cost of the identified upgrades which might be deferred or avoided at $40 million (!)
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9. What’s the Cheapest Solution? Undergrounding?
Dominion Proposal
Deemed cost-effective by law up to a cost of $20,000 per undergrounded customer/$750,000 per mile*
4,000 miles (benefitting only 6.9% of 2.25 million customers)
$3 billion/$1,333 per customer, not including carrying charges!
Storm restoration reduction estimate: 40% (for 6.9% of customers to be undergrounded). So, a 10-day outage becomes 6 days.
Statewide SAIDI improvement 3-12 minutes (2016 SAIDI: Dominion = 132 minutes; US IOU Average 120 minutes)
No aesthetic benefit; 95% of poles/wires remain (telco, cable TV)
* A natural gas-fueled residential stand-by generator (11kW), with battery, costs $3,687 with shipping
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10. Who Should Pay to Address the Problem?
Utility-scale Solar Farm
Sample SoCal Edison Charges per California PUC’s Rule 21:
To developer: $250k (at cost) to design & construct interconnection
To rate base: $10M to upgrade circuit to get power to market
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11. Best Practices for Grid Modernization
Start with “No Regrets” Foundational Software to improve grid state visibility, grid state modeling capabilities, and distribution energy efficiency
Advanced Distribution Management Systems (ADMS)
Distributed Energy Resource Management Systems (DERMS)
Integrated Volt-VAr Optimization (IVVO for Conservation Voltage Reduction)
Expand Capabilities to Grid on an As Needed Basis (Remote-controlled Equipment, Circuit Ties, Sensors, Comm’s: circuit-by-circuit/sub-by-sub)
Insist Upon a Transparent Grid Planning Process which uses risk- informed decision support project prioritization and selection software
Measure Performance to ensure benefits anticipated in the project prioritization and selection process are actually delivered.
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12. Measuring Performance? Consider Benchmarking!
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13. Grid Modernization Working Group
Goal: Reduce Grid Modernization Cost & Risk
Objective: Slow distribution rate base growth
Strategy: Develop & share a body of knowledge
Lessons Learned
Best Practices
Experiences (operating, regulatory, market, etc.)
Tactics: Website? Guidance Document? Conference Calls? Internal? Public?
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14. Paul Alvarez, President, Wired Group
Thank You!
Paul Alvarez, President, Wired Group
Mobile
Office , x-801
Copies of Smart Grid Hype & Reality are being made available to NASUCA members at no charge; simply Paul Alvarez with preferred mailing address and number of copies desired
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