1. © 2000-2013 New York Independent System Operator, Inc. All Rights Reserved. Michael Swider Manager – Research & Development New York Independent System Operator Advanced Energy Conference 2013 New York City, NY April 30, 2013 NYISO U.S. Department of Energy Smart Grid Investment Grant Project

2. © 2000-2013 New York Independent System Operator, Inc. All Rights Reserved. Topics  Introduction to the NYISO  Project Overview  Project Participants  Accomplishments  Project Schedule  Challenges & Lessons Learned  Road Map 2

3. © 2000-2013 New York Independent System Operator, Inc. All Rights Reserved. 3 Reliable operation of the bulk electricity grid  Managing the flow of power on 11,000 circuit-miles of transmission lines from more than 300 generating units Administration of open and competitive wholesale electricity markets  Bringing together buyers and sellers of energy and related products and services Planning for New York’s energy future  Assessing needs over a 10-year horizon and evaluating projects proposed to meet those needs Advancing the technological infrastructure of the electric system  Developing and deploying information technology and tools to make the grid smarter NYISO Roles

4. © 2000-2013 New York Independent System Operator, Inc. All Rights Reserved. SGIG Project Summary  Budget: $75,710,733  Timeline: July 1, 2010 – June 30, 2013  Equipment: Phasor Measurement Units, Phasor Data Concentrators, Phasor Measurement Network, Capacitors  Applications: Enhanced State Estimator, Voltage Stability Monitoring, Situational Awareness (Visualization), Post-Mortem Analysis  Benefits: Improved Grid Reliability & Power Flow Efficiency, Reduced Costs, Reduced Likelihood of Disturbances 4

5. © 2000-2013 New York Independent System Operator, Inc. All Rights Reserved. Project Participants  NYISO as the Primary Awardee for the Grant  New York Transmission Owners as SubAwardees  Quanta Technology as the primary consultant, providing Engineering and Technical expertise  Crowe Horwath LLP as a subcontractor to provide Grant Administration and Compliance expertise  PMOLink, LLC as a subcontractor to provide Project Planning and Management services  Utilicast, EPG, & ABB for Application Development, Integration, Testing & Deployment  EPRI & EnerNex to conduct Controlled System Separation Feasibility Study and Dynamic Model Calibration Study 5

6. © 2000-2013 New York Independent System Operator, Inc. All Rights Reserved. 6

7. New York Control Area 7

8. © 2000-2013 New York Independent System Operator, Inc. All Rights Reserved. Accomplishments  PMU Design & Build-Out  40 (of 41) Substations Covered  47 (of 48) PMUs Installed  PDC Design & Build-Out  8 (of 8) TO Control Center PDCs Installed  Capacitor Installations  458.2 (of 938.2) MVAr of Capacitors Installed  Phasor Measurement Network  Wide Area Network Build-Out Complete for 10 (of 10) Sites  6 (of 8) Transmission Owner Control Center PDCs Networked Photos courtesy of Central Hudson Gas & Electric and New York Power Authority 8

9. © 2000-2013 New York Independent System Operator, Inc. All Rights Reserved. Accomplishments  Situational Awareness (Visualization) Applications  Began testing EPG base product in early 2012  Development continued to meet NYISO requirements  Currently Executing Site Acceptance Testing  Enhanced State Estimator Applications  Development / Testing in 2012  Q1 2013 Deployment  Voltage Stability Monitoring Applications  Development began in late 2012  Currently Executing Site Acceptance Testing  Q2 2013 Deployment 9

10. © 2000-2013 New York Independent System Operator, Inc. All Rights Reserved. Visualization 10

11. © 2000-2013 New York Independent System Operator, Inc. All Rights Reserved. Accomplishments  System Studies: Controlled System Separation  Conducted by EnerNex  All deliverables received in 2012  Final approval by NYISO in Q1 2013  System Studies: Dynamic System Model Calibration  Conducted by EPRI  All deliverables received in 2012  Additional scope added to be complete by June 2013 11

12. © 2000-2013 New York Independent System Operator, Inc. All Rights Reserved. Anticipated Benefits  Situational Awareness  Enhance NYISO’s ability to detect system vulnerabilities and disturbances in real time and to potentially mitigate their impact  Phasor Enhanced State Estimation  Addition of time-synchronized data will improve the existing state estimation function  Reduction in Transmission Losses  Capacity and energy savings as capacitors reduce losses by improving power factors and voltage profiles 12

13. © 2000-2013 New York Independent System Operator, Inc. All Rights Reserved. Challenges & Lessons Learned  Project Execution Challenges  External Dependencies  Coordination Among Multiple Entities  Schedule Delays  Business Owner Acceptance  Technical Challenges  Knowledge / Experience  Performance / Support  Cyber Security  Data Retention  Lessons Learned  Shared Requirements/Goals  Expansion 13

14. © 2000-2013 New York Independent System Operator, Inc. All Rights Reserved. Road Map  People  Post-Project Support from IT & Operations  Show Benefits to Stakeholders  Process  Ongoing Planning for NYS and Beyond  Data Analysis & Technology Growth  Technology  Ongoing Equipment Installations  Redundancy  Advanced Applications 14

15. © 2000-2013 New York Independent System Operator, Inc. All Rights Reserved. The New York Independent System Operator (NYISO) is a not-for-profit corporation responsible for operating the state’s bulk electricity grid, administering New York’s competitive wholesale electricity markets, conducting comprehensive long-term planning for the state’s electric power system, and advancing the technological infrastructure of the electric system serving the Empire State. www.nyiso.com The New York Independent System Operator (NYISO) is a not-for-profit corporation responsible for operating the state’s bulk electricity grid, administering New York’s competitive wholesale electricity markets, conducting comprehensive long-term planning for the state’s electric power system, and advancing the technological infrastructure of the electric system serving the Empire State. www.nyiso.com 15