0. Distribution Companies – Where the Network Meets the Load
Merlin Raab
Renewable & Energy Efficiency Sr. Consultant
Wisconsin Public Service Corporation
October 02, 2012

1. Agenda Overview of Distribution Company
Distribution in the Value Chain
Responsibilities of Distribution Company
A Typical Day
Challenges
Distribution Companies – Where the Network Meets the Load

2. Electric Distribution Utility-1990
Distribution Companies – Where the Network Meets the Load

3. Electric Distribution Utility-2012
Depending upon the state in which the utility operates, the utility may or may not own the generation. In all cases there must be a Chinese wall between generation and that part of the organization that has knowledge of transmission access and availability
Distribution Companies – Where the Network Meets the Load

4. Physical Characteristics
Electric distribution company begins at the substation where the electricity is “stepped down” to distribution voltage
Lines feed out from the substation (typically in the range of 7,200 to 25,000 volts)
At customer locations, electricity is “stepped down” again to a usable voltage – 120/240 volts for residential customers
Distribution Companies – Where the Network Meets the Load

5. The System Itself System has to be designed and constructed to:
Ensure proper voltage levels
Ensure equipment such as lines and transformers do not overheat when peak flow occurs (hot summer day)
Withstand the elements – weather, lightning, etc.
Handle additional load such as new customers’ load or existing customers adding load
To do this, engineers develop computer models of the distribution system to conduct load flow analysis
Distribution Companies – Where the Network Meets the Load

6. Distribution System Modeling / Analysis
Output from load flow analysis is used for:
Determining system efficiencies – present and future
Determining if equipment overload conditions exist
Determining high-loss line sections
System deficiencies during emergency switching or temporary load transfers
Over-current protection plans
Feasibility of large load additions
Proper capacitor placement
Long-range planning – timing of substation reinforcements
Distribution Companies – Where the Network Meets the Load

7. Distribution System Modeling / Analysis
Increased emphasis on off-peak electricity usage will change the shape of our typical load curve and our computer model
Electric vehicles charging during off-peak hours
Customers shifting other appliance loads to off-peak hours
Distribution Companies – Where the Network Meets the Load

8. Load Cycle of Substation Transformer
- Usually repeats every 24 hours
- Load fluctuates throughout the day
- Usually one peak period in the day
50%
100%
150%
12 PM
6 AM
NOON
6 PM
Actual Load
Equipment Rating
Distribution Companies – Where the Network Meets the Load

9. Distribution in the Value Chain
Supply produced at central plant or distributed resources
Central station supply is dispatched to the “Grid” and then into one of three grids: ERCOT, WECC, and Eastern Interconnection
Transmission lines transmit energy to the market
The market matches supply offers and load bids
Control operators oversee transfer of energy to load serving distribution companies
Energy is “stepped down” to a distribution area and then further “stepped down” to a customer site
Texas Interconnect
ERCOT: Electric Reliability Council
of Texas
Western Interconnect
WECC: Western Electricity
Coordinating Council
Eastern Interconnect
ECAR: East Central Area Reliability
Coordination Agreement
FRCC: Florida Reliability Coordination Council
MAAC: Mid-Atlantic Area Council
MAIN: Mid-America Interpool Network
MAPP: Mid-Continent Area Power Pool
NPCC: Northeast Power Coordinating Council
SERC: Southeastern Electric Reliability Council
SPP: Southwest Power Pool
Distribution Companies – Where the Network Meets the Load

10. NERC Interconnections
NERC – North American Electric Reliability Corporation NERC was founded in 1968 by the electric utility industry to develop and promote rules and protocols for the reliable operation of the bulk power electric transmission systems of North America. It is an international, independent, self-regulatory, not-for-profit organization, whose mission is to ensure the reliability of the bulk power system in North America. NERC oversees reliability for a bulk power system that provides electricity to over 330 million people. 
Distribution Companies – Where the Network Meets the Load

11. NERC Regions and Balancing Authorities
MRO Region
8 States
2 Canadian Provinces
1M Square Miles
140 Registered Entities serving 20M people
3 Reliability Coordinators and 6 Planning Authorities
450 Registered Functions
Total net energy to load is 300M MW hours
Long distances from generation to load creates unique stability and technical issues in the MRO region
Mix of organized and bi-lateral markets
Large public power – many shared facilities
History of cooperation on reliability matters
Distribution Companies – Where the Network Meets the Load

12. Central bid/offer/settlement
MISO Market in General
Central bid/offer/settlement
MW Schedules/Dispatch
MW Schedules
MISO Market
Distribution
Generation
Bids
Distribution
Offers
Generation
Distribution
Generation
Distribution
Generation
Distribution
Generation
Distribution
Generation
Energy
Generation
Energy
Generation
Dollars
Distribution
Dollars
Prices
264 Load Zones
6,009 Generators
Distribution Companies – Where the Network Meets the Load

13. Responsibilities of Distribution Company – “Obligation to Serve”
Retail Functions
Meter to Cash
Customer/Government Relations
Construction/maintenance
Reliability
Engineering studies
Line clearance
Storm restoration
Power continuity/quality
Safety
Public
Employee
Economic Delivery
Dispatch decisions
“Cost per”
Compliance
PSC quality standards
NERC reliability (Local Balancing Authority)
FERC
OSHA
Environmental and Corporate Stewardship
Environmental principles
Hazardous waste/site run-off management
Community outreach
Distribution Companies – Where the Network Meets the Load

14. Voluntary compliance with NERC & regional reliability standards
A Typical Day in 1990
Monitor system to ensure adequate amount of generation to serve load; contract for additional generation if needed
Voluntary compliance with NERC & regional reliability standards
Build new and maintain distribution system
Minimal number of customer-owned generators putting power back to the grid
Respond to power outages that are received via phone from customers
In the mid-nineteen nineties, in Wisconsin, the limits of the system were tested. Near rolling blackouts or dropping feeders at the substation bus were considered options. Interruptible customers were called on to drop load to alleviate regional rather than local transmission and generation constraint issues
Distribution Companies – Where the Network Meets the Load

15. A Typical Day in 1990 (continued)
Customers who experience outage remain without power until line electricians travel to the site to address cause
Customer’s receive information on restoration times from radio & TV
Send out meter readers who bring back reads for use by customer billing
Customers generally not concerned with the timing of use of electricity
Appliances, such as dishwashers and refrigerators, run at will
The number of customers behind on their bill is small and demographically homogeneous
In the mid-nineteen nineties, in Wisconsin, the limits of the system were tested. Near rolling blackouts or dropping feeders at the substation bus were considered options. Interruptible customers were called on to drop load to alleviate regional rather than local transmission and generation constraint issues
Distribution Companies – Where the Network Meets the Load

16. A Typical Day in 2012
Monitor system real-time and purchase power on the MISO market to match load requirements or institute demand control
Limited customer-owned renewable generation putting power onto the system requiring the distribution company to adapt systems to handle it
Systems used to proactively determine location of outages and dispatch repair crews
Customers receive restoration information via social media
Limited use of automated switches installed on distribution system isolate faulted sections of line and automatically restore power to a large portion of customers without power
Distribution Companies – Where the Network Meets the Load

17. A Typical Day in 2012 (continued)
Mandatory compliance with NERC & regional reliability standards with threat of financial penalties
Meters read from a central location automatically through communications network. Customers have access to unbilled energy consumption via web-portal
Distribution system modernization technology /smart meters allow customers to make full advantage of time sensitive rates?
The number of customers behind on their bill growing and demographically diverse
Distribution Companies – Where the Network Meets the Load

18. Prices to Devices
Figure 1. Dynamic Energy Management Infrastructure for a Commercial Building
Source: EPRI
Distribution Companies – Where the Network Meets the Load

19. Challenges
Increased number of renewable source generators on the distribution system & possibly micro-grids
Changes load flow analysis (computer model) due to electricity flowing back to the system
Requires modifications to equipment on those circuits, such as over-current protection equipment and conductors
Requires modifications to operating procedures for safety
Net-metering: Who pays for maintaining the system?
The addition of customer owned behind the meter generation could pose a challenge for distribution companies. Small utility scale wind (10-20 MW) and bio-gas fueled generators on rural feeders can cause operating challenges. Who pays for system upgrades
Distribution Companies – Where the Network Meets the Load

20. Challenges
Distribution companies will need to make significant investments in equipment to accommodate increased DG and increased off-peak usage
Limited “Smart System” benefits to rural customers
Regulatory Uncertainty regarding “Smart system investments”
Who bears the risks?
Opt out vs. Opt. in pricing options
Security & privacy issues
EMF concerns
Smart-Grid: Which comes first, the intelligent grid or appliance?
Distribution Companies – Where the Network Meets the Load

21. Challenges Customer Shareholder Employee
Keep costs down (low rates) amid cost pressure
Help understand rate vs. bill – energy optimization
Shareholder
Maintain attractive, risk-adjusted return
Employee
Graying of industry / training / retention / cost reduction
Distribution Companies – Where the Network Meets the Load

22. Questions?
Distribution Companies – Where the Network Meets the Load