2010 SMART GRID INVESTMENTS INFORMATION TECHNOLOGY
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1 EB-00-0 Exhibit G Tab Schedule Page of 00 SMART GRID INVESTMENTS INFORMATION TECHNOLOGY CUSTOMER PORTALS PILOT Customer Display Integration: The implementation of a customer display in the future is identified as one of the key projects to develop new communication channels with customers. Customer displays will enable the communication of consumption information, and eventually energy pricing, self generation and carbon impact. 0 Enabling the introduction of a customer display will require the following activities: Pilot deployment of a limited number of displays; Establish a temporary mechanism to extract the required data to communicate to deployed pilot displays; Build and deploy the required integration between the customer displays and THESL systems; and Define the design for the displays to be made available to THESL customers. 0 The rollout of the full production integration with customer displays is dependent on the successful establishment of a viable communication path with the device. Web Energy Portal: The customer portal has been identified by THESL as one of the main communication channels with customers. As part of the ongoing effort to promote conservation, energy management and environmental protection, including carbon footprint reduction, the portal could play an important role in helping customers manage their consumption. Functionality that could make visible current consumption, generation, trends and projections and recommended actions will empower customers to make more informed electricity consumption and generation decisions.
2 EB-00-0 Exhibit G Tab Schedule Page of Implementing the web energy portal will require the following activities: Conduct market research to identify customer s preferences and needs; Design and demonstrate the required solution to a group of selected customers; Adjust the proposed design and initiate the build phase; Develop and release the web energy portal; and Monitor market acceptance and identify required changes. 0 0 The introduction of all the required functions in the portal is dependent on the availability of the consumption and generation information. Outage management System ( OMS ) Integration Portal: The introduction of additional communication channels available to customers offers the possibility to utilize the channels for the purpose of outage information notification. In order to enable outage notification, it is necessary to identify the customers that are impacted by an outage event, collect information about the outage, the potential causes, and most importantly, the activities undertaken to restore power and the expected time to restoration. Implementing the integration required to communicate outage information to customers via the customer portal will require the following activities: Design and build the functionality required to assess the customers impacted in the event of an outage and collect outage restoration information; Design and build the integration required with the portal; and Test and deploy the new solutions. Communicating outage information to customers will reduce the volume of calls to the Call Centre in the event of an outage, resulting in reduced customer service costs and increased customer satisfaction.
3 EB-00-0 Exhibit G Tab Schedule Page of The project costs are summarized in Table below. Table : Summary of Project Costs Project Description Pilot for Customer portals including Customer Customer Portals Pilot Display Integration, Web Energy portal and OMS Integration. Capital Cost ($000s) 0 SMART GRID METERING PILOT Smart Meter Remote Connect/Disconnect: THESL has almost completed the transition of its meter base to smart meters that are capable of enabling TOU rates and in some cases outage identification and remote connect/disconnect functions. It is anticipated that the ability to remotely connect or disconnect the service could be useful in selected cases (i.e., rental homes/apartments). 0 Implementing the remote connect/disconnect functionality will require the following activities: Establish a mechanism to collect connect/disconnect information from customers; Implement a connect/disconnect database repository to track of the meters to be connected/disconnected and the status of the activities; and Establish an integration path to the meters in the pilot zone for the purpose of communicating connect/disconnect messages. The remote connect/disconnect function will reduce the costs of sending crews to the field for the purpose of executing the transaction. Smart Meter Outage Identification: The utilization of the outage identification functionality offers a unique opportunity to better identify the location and causes of an
4 EB-00-0 Exhibit G Tab Schedule Page of outage by receiving real time information from customer premises that have been impacted by an outage. Integration of the last gasp functionality to the OMS application has been identified as a priority. 0 Implementing the outage identification integration will require the following activities: Establish an integration path to meters in the pilot zone and the Meter Data Management system (ODS) for the purpose of collecting and communicating last gasp messages; and Develop the integration between the MDMS system and OMS for the purpose of communicating last gasp messages to the OMS application. The use of meter last gasp messages could improve the quick identification of outages and potential causes accelerating power restoration with a positive impact on reliability. 0 Network Meters Integration: THESL has decided to implement transformer meters for the purpose of providing enhanced network monitoring capabilities and load analysis. Transformer meters will first be introduced in a pilot zone, and later gradually deployed across the entire network. Integration with corporate systems, such as the network monitoring application, meter data management systems and applications to support loss prevention, is required. Implementing the network meters integration will require the following activities: Establish an integration path to meters in the pilot zone and the Meter Data Management system (ODS) for the purpose of collecting and communicating metering and network monitoring information to corporate systems as well as supporting the future development of a loss prevention system; and Develop the integration with the network monitoring application for the purpose of collecting network performance data and supporting the identification of potential network problems.
5 EB-00-0 Exhibit G Tab Schedule Page of Enhanced load measurement capabilities improving loss-prevention analysis and reduced costs associated with undetected losses in the network. Network Monitoring Integration: As part of the Smart Grid Strategy, THESL has decided to implement power line monitoring devices and vault monitoring devices. The additional network monitoring capabilities will provide additional data in support of outage identification, power quality analysis and, in general, network performance management. The additional network monitoring devices will require integration with corporate systems, such as the network monitoring application. 0 0 Implementing the network monitoring integration will require the following activities: Establish an integration path to the monitoring devices in the pilot zone for the purpose of communicating network monitoring information to corporate systems; and Develop the integration with the network monitoring application for the purpose of collecting network performance data and support the identification of potential problems in the network. Power line monitoring devices and vault monitoring devices will provide enhanced asset visibility in network monitoring applications, enabling faster identification of problems and improving network reliability. This project is highly dependent on the ability to establish a viable communication path to the smart meter and the network monitoring devices. This will be addressed with the introduction of the access network.
6 EB-00-0 Exhibit G Tab Schedule Page of The project costs are summarized in Table below. Table : Summary of Project Costs Project Description Pilot the Smart meter remote Connect/Disconnect functionality, Outage Identification (Last gasp functionality), the Smart Grid Metering Pilot integration to new network transformer meters and the integration to new network monitoring devices. Capital Cost ($000s) 0 0 INTEGRATION ARCHITECTURE AND DESIGN The implementation of new Smart Grid devices and systems will create additional integration requirements. As a result, the IT organization will be required to extend the work that has been completed under the Service-Oriented Architecture ( SOA ) program in the area of integration to encompass the business functionality outlined in the Smart Grid projects that have been started. New integration designs will be required to anticipate the integration requirements for upcoming Smart Grid projects. Of particular importance is a review of the integration bus design and segmentation to accommodate new traffic patterns such as outage notifications. 0 Developing the required integration architecture and design will require the following activities: Establish the SOA integration governance and standards for Smart Grid integration. With the completion of the SOA project, new standards will be required to govern the integration of new Smart Grid infrastructure and applications; Advance the development of Common Information Model ( CIM ) based messages for integration to Smart Grid applications. A common information model will facilitate the process of selecting new vendors/technologies and integrating them into
7 EB-00-0 Exhibit G Tab Schedule Page of the THESL Smart Grid architecture; and Integrate bus architecture design review and segmentation design: Assess the current bus implementation against the Smart Grid program requirements. Establish a segmented bus architecture, design and standards. New integration buses/segmentation could be required to ensure that the design in each case is aligned with the particular integration requirements. The proliferation of new Smart Grid hardware (smart meters, monitoring devices, Plug-in Hybrid Electric Vehicle ( PHEV ) charging stations, mobile applications, etc.) will have different integration requirements. 0 0 Some of the implementation considerations include: Standards and messages must be in place in time for the integration of the first Smart Grid application with the integration bus and subsequently with the impacted THESL systems; and The implementation of an integration bus with the various smart grid applications (customer management, grid management, work and asset management) could gradually segment a common integration platform for the purpose of adjusting design parameters for each application. The project is strongly related to the current CIM initiative. A common information model is a prerequisite to successful implementation of a standard integration framework. Expected benefits include: Clear technical accountability for compliance with integration standards; Common understanding across projects of integration techniques, standards and messages; and Smart Grid implementation costs optimized with a common integration framework and approach.
8 EB-00-0 Exhibit G Tab Schedule Page of The project costs are summarized in Table below. Table : Summary of Project Costs Project Description Design and implement the infrastructure required Integration Architecture in support of integrating Smart Grid hardware and Design and applications. Capital Cost ($000s) 0 0 ACCESS NETWORK PILOT The planned Smart Grid initiatives require a bi-directional, secure network between THESL s back-end systems and its smart grid devices. A common approach that could provide an integration network to the majority of the smart grid applications includes the deployment of a wireless network in the city of Toronto. This will enable some of the most important smart grid projects including: Smart Meters, Network Meters, Network Monitoring Devices, Customer Display, PHEV charging stations, Home Area Network, Demand Response, and Mobile Work Force Management. 0 Implementing the required wireless network in the city of Toronto will require the following activities: The pilot will characterise the. GHz WiMax private radio access network in detail; The pilot will also identify candidate networks that could be used in special circumstances or where the primary access network does not work or meet non functional requirements such as latency or throughput; The pilot will demonstrate connectivity potential with smart grid devices and third party vendor infrastructure; and The outcome of the pilot is an elaborated design for the access network and key Worldwide Interoperability for Microwave Access
9 EB-00-0 Exhibit G Tab Schedule Page of 0 integration characteristics as it relates to the other smart grid networks. Some of the implementation considerations include: The initial pilot could be achieved with a single base station deployed in a selected area of the city with limited number of channels/frequencies for the purpose of enabling communication to a selected small number of smart grid devices; and The deployment of the production network could be planned to allow a gradual increase of base stations and capacity as the deployment of smart grid infrastructure progresses. An initial network could be based on a limited number of base stations with broad coverage across the city. Additional base stations could be added in the future once capacity thresholds are expected to be exceeded in order to optimize investment and maximise utilization. 0 Some of the dependencies and risks include: Availability of the. GHz spectrum; Vendor devices equipped with radios for the new spectrum; Integration of production devices with a pilot network. Expected benefits include: Clear definition of the characteristics of the access network; Opportunity to examine in detail vendor security implementations; Opportunity to validate different network usage models (i.e., outage notification during meter data collection); and Input to the business case for the full production roll out of the access network.
10 EB-00-0 Exhibit G Tab Schedule Page 0 of The project costs are summarized in Table below. Table : Summary of Project Costs Project Description Deployment of a pilot wireless network in a Access Network Pilot selected area of Toronto Capital Cost ($000s), 0 INTERNAL NETWORK READINESS The ability of the THESL internal network to accommodate smart grid applications depends on the completion of projects to redesign the network topology and the adjustment of network capacity and security in light of the smart grid requirements that have been identified to date. The gradual introduction of new Smart Grid devices and applications will require a constant evolution of the internal network to adjust capacity and be able to support new integration requirements. 0 Ensuring that the Internal Network is ready to support smart grid requirements will require the following activities: Network Design and Build Planning and scaling of the existing multi-tier network in order to accommodate future GEA integrations through the various network tiers; Network Security Instilling the proper Security around the scaled environment, including governance around long term sustainability; Network Patch Management Ensure that the internal network is adequately patched and a long term sustainability strategy is defined and approved; Network Strategy and Enhancement Pilot Deliver a Network strategy that will allow for rapid bi-directional communication using various communication media to/from THESL s network; Security Architecture Deliver the Security Architecture that is planned for the long term and is validated through the Pilot initiative. This will include the following
11 EB-00-0 Exhibit G Tab Schedule Page of 0 Security components: o Physical Security; o Identity and Access Management integration; and o Security Operations; SOA and Business Intelligence ( BI ) Augment existing environments with additional components for the purpose of enabling necessary integration and decision support needs. End-to-end performance assessment: As the smart grid network develops, IT has a lead role in the analysis of the various network segments and the ability of the entire network to service the traffic demands that will be put on it. Address current network saturation periods; Remediation of SCADA network access assets: Identify and remediate weak points in the current network; and Establish a SCADA test network: Lack of a test SCADA network precludes upgrades to the SCADA network. The project costs are summarized in Table below. Table : Summary of Project Costs Project Description Internal Network Internal Network upgrade required in support of Readiness Smart Grid devices and applications Capital Cost ($000s),0 0 SMART GRID NETWORK SECURITY The THESL Smart Grid network will be a collection of networks each with its own security characteristics and vulnerabilities. THESL needs to take an end-to-end view of the security of its smart grid network as segments are added to accommodate specific Smart Grid projects. The introduction of new Smart Grid devices and applications will increase the exposed surface that is vulnerable to security threats. As a result of the IT
12 EB-00-0 Exhibit G Tab Schedule Page of architecture evolution a detailed end-to-end security assessment and enablement activities are required to ensure that each identified risk is managed in adherence to the required security standards at Toronto Hydro. 0 0 Ensuring that the required security is in place will require the following activities: Define Smart Grid security standards and best practices: Ongoing review and evaluation of industry best practice suggests use of this information as an input in developing the THESL security standards for the Smart Grid projects. These standards are to be used during vendor evaluations and as a guide to other THESL stakeholders; Perform existing internal networks assessment: This work is an extension of the Internal Network Readiness project which is the foundation or starting point on which the Smart Grid networks will be built; Smart Grid device proprietary network due diligence evaluations: THESL needs to perform a due diligence review of each vendor s implementation to confirm that the vendor s implementation meets THESL s security requirements and does not represent an unacceptable risk to the overall smart grid network; and Develop an annual end-to-end security assessment program: The Smart Grid network will be changing frequently over several years. This program will be a formal, annual assessment of the entire Smart Grid network. Some of the implementation considerations include: The implementation of changes to the existing IT architecture in support of achieving desired security standards could be prioritized based on the level of risk associated with each identified threat. Considering that implementation of the Smart Grid will likely be a multi-year program, the required security upgrades could gradually be implemented as per the risk prioritization.
13 EB-00-0 Exhibit G Tab Schedule Page of The implementation of new security infrastructure/processes is strongly correlated to the architectural design that will define how the smart grid is implemented and integrated. The project costs are summarized in Table below. Table : Summary of Project Costs Project Description Changes to the security infrastructure and Smart Grid Network processes in support of the implementation of the Security smart grid. Capital Cost ($000s),
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