SmartGridCity™:

A blueprint for a connected,

intelligent grid community

November 2008
 Overview

z Today’s electric grid and its limitations

z Smart Grid – what is it?
z The value and benefits
z SmartGridCity, the world’s first full-scale pilot
 Electricity: The Vital Commodity

z Essential part of our lives

ƒ Light, heat and comfort
ƒ Information and entertainment
z The utility’s role
ƒ Provide reliable electricity…
ƒ …at reasonable cost…
ƒ …while preserving the environment
“He’s been dead for more than 75
years, but Thomas Edison—hailed as
the father of the light bulb—probably
could run the nation’s modern-day
electric grid. It just hasn’t changed
that much.”
Denver Business Journal
March 30, 2007
 “Edison’s Grid” Today
Transmission Generating
Line Plant
z Simple concept
ƒ Robust; Effective
Substation

Distribution
System End User

z Complex in execution
ƒ Thousands of power plants
ƒ Web of regional transmission lines
ƒ More complex web of local distribution lines
 Traditional Grid Operation

z We monitor very little of the grid’s operation

ƒ Less as we get closer to the customer
ƒ We don’t know how customers are using power at any time
ƒ Outage monitor: you call us
z We control by starting or stopping power plants
ƒ Customers have few opportunities to reduce demand in
response to grid conditions
ƒ No energy storage
z We design the system for the worst case
ƒ Maximum expected load plus a reserve margin
ƒ Result: System is overbuilt
z We sell almost all customers the same product
ƒ Averaged-price per kwh plus some fixed charges
 Change Is Coming

z Fulfilling traditional role is challenging

ƒ More investment in aging electric infrastructure
ƒ Increased needs and exponentially growing demands
ƒ Environmental concerns for both the industry and customers
 Challenge Of Climate Change

z Climate change policy will require:

ƒ Significant carbon dioxide emission
reductions
ƒ Huge capital investments
ƒ Long-term technological transformation
ƒ A diverse portfolio of resources
z Utilities will bear the lion’s share of the
reductions
z Clean technology will be integral
ƒ Renewables/intermittent technology
ƒ Customer conservation and efficiency
ƒ New distribution resources
 Utilities And The New Energy Landscape

z Maintains traditional role

ƒ Reliable power
ƒ Reasonably priced
z Transforms business to meet climate challenge
ƒ Relies more and more on new, clean technologies
ƒ Values and minimizes emissions
z Takes on a new character
ƒ Efficient and flexible
ƒ Customer involvement
ƒ Distributed generation – more people generating their
own electricity
z Edison’s Grid is not up to this challenge
ƒ Need a “Smarter Grid”
 Smart Grid: A Digital, Information-Age Grid

z Basic structure
ƒ Similar to Edison’s Grid
ƒ Applies information technology available today
ƒ Much more information and control
z Power of information
ƒ More precise system design and operation
ƒ Improved reliability
ƒ Ability to meet customer needs and wants
ƒ More products and services
ƒ Reduced emissions and environmental impact
Smart Grid - Intelligent Control Levels

Level Name Control Functions

Premise Automation including Meter, Distributed Generation (Premise Only),
1 Customer
Premise Level Load Balancing

Substation Automation (Distribution), Feeder Automation, Inter-Substation Routing,

2 Distribution Grid
Intra-Substation Routing

Distribution Grid Control (Planned and Unplanned Override), Outage Management,

3 Distribution Control
Demand Response

Substation Automation (Transmission), Feeder Automation, Inter-Substation

4 Transmission Grid
Routing, Intra-Substation Routing

5 Transmission Control Transmission Grid Control (Planned and Unplanned Override), Outage Management

6 Bulk Energy Supply Supply Source Automation, Distributed Generation (Above Premise Level)

Supply Selection, Virtual Power Plant, Signal Creation (Environmental, Carbon,

7 Markets
Load, etc.)
External Reliability
8 Regional Stability, Selected Supply Control
Organizations

Note: All levels provide data to the the levels above it and can be controlled by selected higher levels.
 Smart Grid Components

z Broadband over Generating

Plant
Powerlines Transmission Line
— Provide for two-way
communications
z Monitors at substations Substation
z Monitors at transformers,
circuit breakers and
reclosers

Distribution
System End User
 An Integrated Energy System

ƒ Incorporates entire energy pathway, from generation

to customer
ƒ High-speed, near real-time, two-way communications
ƒ Sensors enabling rapid diagnosis and corrections
ƒ Dispatched distributed generation
ƒ Energy storage
 The Smart Home

Added green
power sources

High-speed,
networked
connections
Plug-in hybrid
electric cars
Customer
interaction with
Real-time and utility
green pricing
signals Smart thermostats,
appliances and
in-home control devices
 Smart Grid Web Portal

z Allows
customer to
monitor and
manage their
energy use

z Online tools
provide more
options,
choice and
personal
control
 Smart Grid Benefits

Demand Management
• Better demand control = reduced
Renewables
generation Management
reserve requirement
• demand
• Control Shape load to generation
to match supply
• on
• Pricing based Manage intermittency
real-time market
Asset Management
• Maximize renewables
• Improve field efficiency
• Supply-based pricing
• Real-time asset status & control
Customer-Enabled Management
• Expanded reliability
• Automatic control of electronic
• Extended asset life
devices
• Real-time pricing
• New services and products
• Enable customer choice
 How It Works: Responding To An Outage

z Today: Lineman
must physically
open and close
reclosers to find
fault
ƒ Time:
One hour
z Tomorrow: System
automatically
closes reclosers
and finds faults
ƒ Time:
Seconds
How It Works: Reduction In Spinning Reserves

z Spinning reserve: power plant operating but generator not

connected to system
ƒ Connected to the system in a matter of moments if another
plant goes off-line
z Today: Need 16% reserve margin
z Tomorrow:
ƒ Improved system efficiency
ƒ Ability to manage both supply and customer load when a
generating unit drops off line
ƒ Result: Reduced overall reserve margin and reduction in
spinning reserve
 How It Works: Customer Choice

z Today: Customers have very little information

ƒ Power priced on average price basis
ƒ No information on real-time price or emissions
z Tomorrow: Customers may choose to control energy use based on
real-time information
ƒ Use web to track energy usage from anywhere
• Controlling lights/air conditioning/other appliances
• Or “setting it and forgetting it”
ƒ Shut off non-essential equipment based on price or during
peak demands
z Estimated energy reduction: Up to 10 percent
 How It Works: Integrating Renewable Energy

z Challenge of renewable energy variability and intermittency

z Today: Must build system resources that can quickly fill void when
renewables stop generating
z Tomorrow:
ƒ Utilities pay customers to reduce energy use when wind drops
off line
ƒ Control through in-home devices
• Example: Run dishwasher when wind is blowing
 How It Works: Other Smart Grid Benefits

z Improved efficiency: lower O&M and capital costs

z Employing underutilized assets
z Equipment life: no longer “running to failure”
z Plug-in hybrid electric vehicles and solar
ƒ PHEVs as distributed energy storage device
ƒ Solar becomes system resource
z Many other potential benefits
ƒ 70 hypotheses being tested in SmartGridCity
 Expected Customer Value

z Improved system reliability

ƒ Fewer, shorter outages
z More choice
ƒ Customers may design their energy use and bills to meet their
needs and wants
z Better environmental steward
ƒ Solar
ƒ Choose to reduce carbon footprint
z Improved efficiency and reduced cost
z Needed: New regulatory construct
 SmartGridCity™ - Boulder, Colo.

“An international showcase of smart grid possibilities… a

comprehensive demonstration of an intelligent grid
community”

• Bringing the vision to life

• Leverage the best talent

• Build skills and experience

• Test technology and processes

• Prove benefits
 Boulder’s Key Strengths

z Ideal size (50,000 customers)

z Ideal geographic location (easy access to needed grid components)
z Ideal smart grid customers:
ƒ Web-savvy, early adopters
ƒ Environmentally aware
ƒ Willingness to accept some short-term inconvenience for a
good cause
z Collaborative opportunities with:
ƒ University of Colorado
ƒ National Center for Atmospheric Research
ƒ National Institute of Standards and Technology
ƒ City and County leaders
 Boulder’s Scope

z Partnership model
z Four-phased project (March 2008 to December 2009)
z First three phases focused on development
z Final phase focused on analysis
z 50K premises enabled
z 25K with new meters
z Five substations with their feeders
z Multiple in-home solutions
z Involves both residential and light-industrial/commercial customers
 SmartGridCity Project Timeline

April 2008 Q4 2010

Build Out Scope & Design

(Began April Plan (Announced
2008) May 2008)
Benefit Assessment
Q2 2009 – Q4 2010

Partner Alignment, Ongoing

 SmartGridCity Consortium Partners

z Xcel Energy
z Accenture
z Current Group
z GridPoint
z OSIsoft
z Schweitzer Engineering
z Smart Synch
z Ventyx
 SmartGridCity And The Future

z SmartGridCity will test how smart grid can deliver

z Future is unknown
ƒ Information unleashes power of innovation
ƒ Transforms utility in ways we cannot imagine
z Stronger energy system
z More choice and opportunity
ƒ Customers
ƒ Shareholders
ƒ Employees
xcelenergy.com/smartgridcity