1. B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Page 1 Pacific Northwest Smart Grid Demonstration Project  Largest Smart Grid Demonstration Project in the Nation (50% funded by DOE) –$178 Million project led by Battelle –Project participants include Battelle, BPA, utilities/universities and infrastructure partners –112 MW of responsive resources (loads and generation) –Five years in duration –Substantially increases smart grid asset installation in the region

2. B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Page 2

3. B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Page 3 Pacific Northwest Smart Grid Demonstration Project: Goals & Objectives Goals:  Provide two-way communication between distributed generation, storage, and demand assets and the existing grid infrastructure  Validate new smart grid technologies and inform business cases. Quantify smart grid costs and benefits  Advance interoperability standards and cyber security approaches for transactive control  Integrate rapidly expanding portfolio of renewables Objectives: Manage peak demand Facilitate integration of wind and other renewables Address constrained resources Select economical resources Improve system efficiency Improve system reliability –Load Management –Conservation Voltage Reduction –Distributed generation

4. B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Page 4  Battelle Memorial Institute, Pacific Northwest Division  Bonneville Power Administration –Business case –Communication and regional outreach –Data flow (BPA to project) –Sharing learning, educational outreach  11 utilities (and UW) and their vendors  5 technology infrastructure partners Project Structure / Roles

5. B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Page 5 Benefit Areas of a Smart Grid to the Pacific Northwest B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Page 5 Areas of Benefit 1. Transmission and Distribution Optimization 2. End Use Energy Efficiency 3. Grid Reliability 4. Dynamic and Responsive Demand 5. Renewable and Distributed System Integration 6. Utility Operational Efficiency Initial Study shows Smart Grid may have significant benefit in the PNW. The Smart Grid Demonstration Project will help test this. The Dem will test 95,000 assets (i.e. equipment) in 40 categories over a 5 state area. BPA is leading the development of a business case to determine cost / benefit of making Smart Grid investments in the PNW.

6. B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Page 6 A Transactive Control System with Two-Way Communication Will Be Tested Aggregation of Power and Signals Occurs Through a Hierarchy of Interfaces

7. B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Page 7 Exploring Technologies at the Utility (Sub-Project) Level

8. B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Page 8 Share learnings  Education and outreach –BPA manager serves as Chairperson for the Pacific Northwest Center of Excellence for Clean Energy Education Task Force –Consumer and utility awareness  Demand Response –Share lessons and information from pilots

9. B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Page 9 Location of BPA Involved Demand Response & Thermal Storage Projects = BPA Supported Demand Response Pilots = BPA Supported Thermal Storage Pilots = PNW Smart Grid Demonstration - Projects with Demand Response

10. B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Page 10 BPA has an evolving portfolio of DR pilots to assess BPA and regional needs  Assessing DR technologies – focus on water heaters and HVAC  5-8 MW cumulative with the potential to expand up to 30 - 40 MW in the near future Current Pilots

11. B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Page 11 Demand Response Residential Pilot Projects Emerald PUD Mason County PUD #3 City of Port Angeles Orcas Power & Light Cooperative Kootenai Electric Central Electric Network configured for a Renewable Demand Response signal Enhanced hot water heater control system to store renewable energy (wind) Aclara AMI Technology Water heater / thermostat control devices Home area network capabilities Real time communication through internet to study customer behavior Water heating DR controls In-home displays with home area network capabilities Thermal storage devices for home heating Cooper AMI Technology Water heater control devices Heat pump control devices Programmable thermostat devices Hot water heaters and thermostats Aclara Technology Testing of consumer acceptance and response Hot water heaters with Intermatic programmable timers Addressing peak demand periods (e.g. morning)

12. B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Page 12 Energy Storage Pilot Objectives: Utilities: Lower Valley Energy, Eugene Water and Electric Board, Cowlitz County PUD, City of Richland, Forest Grove and Consumer’s Power. Use residential end-use controllable loads to help integrate variable renewables such as wind and solar Implement one to three commercial / industrial end- use storage projects. Develop a demand response business case and marketing materials to support utilities Residential: ceramic heaters and water heaters Commercial & industrial: cold storage

13. B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Page 13 Contact information BPA Smart Grid Program Manager: Lee Hall - 503-230-5189 ljhall@bpa.govljhall@bpa.gov For more Smart Grid Information: PNNL: www.pnl.govwww.pnl.gov DOE OE: www.oe.energy.govwww.oe.energy.gov Smart grid: www.smartgrid.govwww.smartgrid.gov Pacific Northwest Smart Grid Demonstration Project: www.pnwsmartgrid.org BPA wind site: http://www.bpa.gov/corporate/WindPower/ www.pnwsmartgrid.orghttp://www.bpa.gov/corporate/WindPower/ Smart Grid Consumer Collaborative: http://smartgridcc.org/http://smartgridcc.org/ White House report on smart grid: http://www.whitehouse.gov/sites/default/files/microsites/ostp/nstc-smart-grid- june2011.pdf http://www.whitehouse.gov/sites/default/files/microsites/ostp/nstc-smart-grid-