UTC Legal / Regulatory Update

Transcription

1 UTC Legal / Regulatory Update Region 7 San Antonio, Texas March 1, 2012

2 Public Policy Division Leadership & Participation Public Policy Division Chair: Steve Zoromsky, Lower Colorado River Authority Spectrum Issues Committee Chair: Kathy Nelson, Great River Energy Infrastructure Issues Committee Chair: John Povich, PSEG Legislative Affairs Committee Chair: Jim Smith, NIPSCo 2

3 Overview Spectrum Issues UTC pursuing spectrum sharing strategy to meet needs cost effectively Legislative Issues Congress divided, public safety moving, cyber security stalled Infrastructure Issues Pole attachments regulations a mixed bag Network outage reporting requirements should improve carrier reliability Standards Issues NIST initial standards kicked back by FERC; other industry efforts ongoing State Issues State and local policymakers reacting to political pressure in opposition to smart grid

4 Spectrum Issues 4

5 Spectrum The Big Picture Utilities need access to spectrum <2 GHz for greater capacity and wide-area coverage requirements. Sources of Spectrum: Federal Government Spectrum 700 MHz and 4.9 GHz Public Safety Spectrum Secondary Markets Future Auctions Unlicensed Spectrum / TV Whitespaces / 3.65 GHz

6 Challenges: Existing land mobile bands Interference, congestion, narrow banding requirements Existing microwave bands Reallocation, relocation of incumbent operations Auction / reallocation / relocation of incumbents Lengthy and expensive process LightSquared ATC network Interfere with GPS devices used by utilities for timing and other applications (probably over)

7 Opportunities: 700 MHz public safety broadband network Authorizes sharing with non-public safety entities (e.g., utilities) Feds to make 500 MHz of spectrum available for broadband in next 10 years NTIA issues plan identifying first 115 MHz FCC revising rules in microwave bands for wider channels FCC promoting opportunistic use of spectrum, as well as secondary markets for spectrum

8 Federal Spectrum Congress considering reallocating Federal spectrum bands Instituting an inventory of existing bands NTIA s Commerce Spectrum Management Advisory Cmte (CSMAC) report re MHz for broadband UTC urged FCC to allow utility access to band or alternative spectrum (Filed 4/22/2011, Docket10-123) Sharing MHz in U.S. could harmonize Canadian allocation Challenge: Commercial providers want MHz to be paired with AWS spectrum for 4G. Also want MHz! Question: Other bands suitable for use by utilities? MHz & MHz

9 Public Safety Spectrum Existing spectrum: 700 MHz broadband ( / MHz) 700 MHz narrowband ( / MHz) 4.9 GHz band ( MHz) New spectrum 700 MHz D-block ( and MHz) Central issue: Eligibility of utilities to share with public safety on either a primary or secondary basis FCC held that Congress limited access to public safety services the sole or principal purpose of which is to protect the safety of life, health or property

10 Public Safety Spectrum UTC told FCC that utilities do use communications for public safety services Consequently we can share 700 MHz and 4.9 GHz bands. UTC lobbies Congress Clarify that utilities can share the 700 MHz band Allow traffic management agreements UTC meets with APCO, PSA, and PSST to coordinate positions UTC coordinates CII community via UTC s CICC Congress passes Conference Report with spectrum provisions, including 700 MHz public safety broadband network

11 Public Safety Spectrum FCC Overview of Proceedings FCC grants some waivers for local/regional public safety entities But NV Energy and Michigan waivers to share with CMS Energy and other utilities still pending Clarifies that government entities must use spectrum for public safety services Issues temporary technical rules, including restrictions on fixed operations UTC argues for ability to share Waivers, Rulemaking Pending to Allow Utilities to Share Spectrum w/ Public Safety

12 Public Safety Spectrum Congressional Conference Report Allocates D-block to Public Safety Broadband Network (PSBN) Nationwide license held by First Responders Network Authority (FirstNet) NTIA oversees construction, operation and maintenance of network Technical Advisory Board for First Responder Interoperability Sets minimum technical requirements for interoperability based on LTE Non-public safety services entities get secondary access Covered leasing agreements with FirstNet Fees for network use, leasing capacity, and equipment and infrastructure access States may opt-out from FirstNet, subject to FCC approval.

13 Congressional Conference Report Funding $7B via incentive auctions $2B in start-up loans for funding $250M for grants $100M for State & Local Implementation Fund Additional funds for R&D Requires give-back of MHz frequencies w/in 9 years

14 FirstNet / Interoperability Board FirstNet 15 members (3 Federal / 12 appointed by Dept. of Commerce) Qualifications Knowledge and experience of Federal, state, local or tribal public safety or emergency response Technical experience in broadband and public safety communications Network deployment, building or operating experience Financial expertise in financing and funding telecom networks Interoperability Advisory Board 14 members appointed by FCC (4 commercial wireless providers, 4 public safety entities, 3 equipment manufacturers and 3 state & local gov t, one nonvoting member appointed by NTIA) Dissolves 5 days after minimum technical reqmts submitted to FirstNet

15 FirstNet Overall Duties Ensure nationwide standards for use and access to network Issues RFPs for building, operating and maintaining network Encourages leveraging of existing commercial wireless infrastructure to the maximum extent Manages / oversees implementation of contracts with non-fed entities to build, operate and maintain the network, must: Protect cybersecurity Promote equipment competition Promote integration w/ PSAPs Address unique homeland security or national security needs of certain areas or regions Ensure substantial rural coverage May obtain grants and contract with others, as well as accept payment for access to the network and network infrastructure

16 FirstNet Network Policies FirstNet to develop network policies including RFPs with: Timetables for construction Coverage areas Service levels Performance criteria Other similar matters for the construction/deployment of network Technical and operational requirements of network Practices, procedures, stds for management and operation of network Terms of service for the use of network, including billing practices Ongoing compliance review and monitoring of the: Management and operation of such network Practices and procedures of entities operating on and the personnel using such network Necessary training needs of network operators and users

17 State and Local Consultation FirstNet must consult with states / localities re distribution and expenditures to carry out the network policies including: Construction of core network and radio access network build out Placement of towers Coverage areas of the network, whether at the regional, State, tribal, or local level Adequacy of hardening, security, reliability, and resiliency requirements Assignment of priority to local users Assignment of priority and selection of entities seeking access to or use of the nationwide public safety interoperable broadband network Training needs of local users

18 Process / Timeframes FCC appoints Technical Advisory Board for Interoperability 3/23/12 NTIA establishes State & Local Implementation Grants 4/22/12 Interop. Board submits minimum technical requirements for RFP to FCC for review/approval 5/22/12 FCC transmits interop. requirements to FirstNet 6/21/12 Commerce appoints members of FirstNet 8/20/12 FirstNet develops national plan and RFPs; RFPs submitted to state Governors no deadline Governors can reject FirstNet 90 days after receipt Governors alternative plans must be approved by FCC or must proceed with FirstNet plan and RFP 180 days after FCC rejection PS gives back MHz by 2/22/21

19 Concerns with 700 MHz Public Safety Legislation Secondary basis condition for non-public safety services under covered lease agreements Could undermine reliability for utility and CII mission critical applications Preference for using commercial infrastructure and substantial representation of commercial wireless interests Utilities need more input into priority access and other technical requirements for the network Fees for network use, network capacity and equipment / infrastructure unspecified Must meet but not exceed administrative costs of FirstNet 19

20 Secondary Markets Utilities buying spectrum from past auction-winners (and other licensees) Opportunity: spectrum available to meet near term needs Challenges: due diligence on license, licensee, price and geographic coverage UTC actions: Facilitates transactions Conference calls, meetings with licensees and third parties Urges FCC to exclude utilities from hearing Urges FCC to allow utilities to acquire AMTS ( MHz) licenses.

21 Future Auctions MHz band Over 1400 licenses of 500 khz each on a cellular market area (CMA) geographic area basis. Flexible use rules apply. See 47 C.F.R (a), (a). 220 MHz Phase II licenses khz (2x50 khz) EA licenses Four 150 khz (2x75 khz) EAG licenses Permitted operations 220 MHz Service will be able to use this spectrum to provide voice, data, paging, and fixed operations Auction was initially scheduled for 12/2010, but postponed to provide more time for bidder preparation.

22 Unlicensed Spectrum / TV Whitespaces / 3.65 GHz Utilities considering unlicensed spectrum, TV Whitespaces and lightly-licensed 3.65 GHz spectrum to meet needs. Tradeoff: greater flexibility/bandwidth, but no interference protection FCC showing new direction promoting greater use of spectrum UTC actively involved in FCC consideration of opportunistic use of spectrum / dynamic access TV White Spaces Order (ET Dkt ) Opportunistic use of 6 MHz unused in bands below 698 MHz Devices must turn off or turn down power to avoid interference Dynamic Access NOI (ET Dkt ) Consider more efficient uses of spectrum VHF / UHF NPRM (ET Dkt )

23 Wireless Backhaul Proceedings Permit fixed microwave operation previously reserved for specialized microwave services Rules now permit microwave licensees to use adaptive modulation Allow use of latest technology to maintain critical links reliability Allow smaller antennas in certain microwave bands Exempt licensees in non-congested areas from FCC efficiency stds Fixed microwave links now more cost-effective in rural areas Invites comment on further flexibility

24 Other Wireless Issues Carrier Network Reliability and Survivability (FCC and NARUC) UTC expresses concerns about reliability of commercial networks and supports spectrum for smart grid Network Outage Reporting Requirements (FCC and NARUC) UTC supports FCC proposal to include broadband and VoIP providers Wireless Headsets in Nuclear Power Plants UTC / NEI support Petition for Waiver allowing utility use of Telex headsets UTC / NEI tell FCC concerns re operations above and below 700 MHz LightSquared poses interference threat to GPS Could affect utilities synchrophasors / teleprotection systems that rely on sensitive GPS receivers for timing. UTC files comments opposing LightSquared Petition (2/27/12) CEO resigns! Congress bans LS from operating until the interference issue resolved

25 Narrowbanding Below 512 MHz FCC grants NPSTC extension request Allows manufacture / import (but not certification) of 25 khz equipment BUT maintains prohibition on applications for new or expanded 25 khz systems after 2011 Extends until 2013 the deadline for certification of equipment that is not capable of 6.25 khz mode Grandfathers existing data channels Emissions less than 11.2 khz but less than 4800 bps New equipment must meet standard FCC invites comment on 21 Public Safety Waivers proposing extensions of the deadlines between 2013 to Grants extension until 12/31/12 to St. Louis

26 Other Wireless Issues 800 MHz Rebanding Freeze Lifting But reinstates freeze along some U.S. Canada border areas Some former Sprint / Nextel frequencies now available for critical infrastructure 900 MHz Freeze on new applications Until six months after each NPSPAC region 800 MHz reband is complete Give-back of Public Safety MHz Frequencies What does it mean for utilities down the road, after PS leaves?

27 Legislative Issues 27

28 Security of the Electric System Congress concerned utilities not doing enough on cyber security Continuing vulnerability of the grid reported by DOE IG, GAO and INL Problems with current NERC standards setting GAO Report recommends better information sharing between Gov t / CII House and Senate have different approaches to legislation House promotes information sharing with industry Senate draft would empower DHS to review and develop cyber requirements for covered critical infrastructure Includes life or death providers (e.g. electric, gas and water utilities) UTC urges increased sharing of timely, actionable information with asset owners, less bureaucracy UTC expresses concerns re federal regulatory creep over distribution assets 28

29 Homeland Security Committee draft Would empower DHS to: Conduct sector-specific risk assessments Determine which industries are covered critical infrastructure Develop risk-based performance requirements Issue compliance reporting rules Subject CII to civil actions and/or enforcement action by regulators or DHS Assessment will be conducted by 3rd parties and/or DHS Except CCI protected from punitive damages lawsuits if they - Complied with the performance requirements Passed an assessment

30 Homeland Security Committee bill (PreCISE Act, HR 3674) DHS as lead federal agency Coordination and strategy around cyber efforts Formulation of voluntary cybersecurity guidelines Establish a National Information-Sharing Organization to Facilitate information exchange on best practices, threats and provide technical assistance Provide a common operating picture Facilitate research and development projects

31 Grid Cyber Security Act last year New FERC powers jurisdiction expanded Include distribution (in addition to Generation and Transmission) Cover assets deemed critical electric infrastructure [CEI] "so vital to the United States that the incapacity or destruction of the systems and assets would have a debilitating impact on national security, national economic security, or national public health or safety. FERC to review current standards to determine their adequacy to mitigate cyber vulnerabilities Criticisms re slowness of NERC CIP standards setting process bill Imposes 180 day deadline for NERC revisions that FERC finds either Wanting or needed to address new vulnerabilities Extensions available but silent on penalties for missed deadlines 31

32 Grid Cyber Security Act - ACTIONS If FERC deems that immediate action is necessary FERC can require NERC to develop and issue temporary emergency orders to mitigate specific cyber security vulnerabilities Secretary of Energy can order immediate measures to protect CEI from a cyber security threat, with or without notice Measure sunsets after 90 days unless made final or rescinded Public utilities" allowed to recover implementation costs Mechanism to be established by FERC

33 GAO Testimony Before House 2/29/12 Threats to systems, termed government-wide high-risk areas are constantly evolving and growing Gregory Wilshusen, director GAO s Information Security Issues Smart meters are among those devices that have not been designed with a strong security architecture and lack important security features Utility companies are often unaware of imminent threats or incidents on their systems because some of that intelligence is classified and cannot be shared with them UTILITIES TELECOM COUNCIL - The Voice of Critical Infrastructure Communications 33

34 Radio Spectrum Inventory Act Promote spectrum efficiency Identify unused or underutilized spectrum for reallocation to commercial broadband & auction Inventory FCC and NTIA licenses in 225 MHz up to 10 GHz Create publicly accessible website with current licensing information FCC to post All utility licensing information Purpose for which the spectrum is used Contour mapping Extent of use FCC conducting inventory; Congress looking to expedite UTC lead Hill efforts to explain security implications 34

35 Consumer Energy Data Access and Privacy Protections Previous legislation dictated Frequency of energy usage data available to consumers Historical data retention by utilities Privacy protections How data could be used by the utility, including access by third parties Legislation expected but not yet introduced Green Button is outgrowth of this effort UTC actively participating in privacy discussions Cost benefits, security, 3 rd party access issues 35

36 Infrastructure Issues 36

37 Pole Attachment Order Deadlines Four-stage timeline with a maximum timeframe of up to 148 days for completion of all four stages: Survey (45 days), estimate (14 days), attacher acceptance (14 days), and make-ready (60-75 days) Applies to communications space on a pole (wireline and wireless) If deadlines for survey or make ready go unmet Attachers can engage utility-approved independent contractors If wireless pole top attachment Deadline extended up to 178 days Attachers can file a complaint If large number of poles (lesser of 300+ poles or 0.5% of poles) 15-day extension for the survey and 45 days for make-ready 37

38 Pole Attachment Order Provisions Denial of request requires an explanation How such reasons relate to capacity, safety, reliability, or engineering concerns in a way that is specific with regard to both the type of facility and the type of pole Rates makes telecom rate = cable rate Also applies to wireless attachments ILECs can complain to FCC regarding rates, terms and conditions for pole attachments Provides guidance re appropriate rate for ILEC attachments 38

39 Pole Attachment Order Enforcement Need good faith attempt to engage in executive-level discussions Attachers can continue to sign and sue on contested terms No compensatory damages at this time. No caps on penalties for unauthorized attachments Oregon used as model for reasonable contract terms Pre-planning and coordination required among pole owners Reconsideration Issues Utilities not required to provide same attachment techniques in electric space as in communications space No Insufficient capacity If just because utility must rearrange its electric facilities 39

40 Pole Attachment Order - Petitions FCC denies Petition for Stay (06/2011) Petitions for Reconsideration filed (06/2011) Utility Coalition seeks clarification or reconsideration Timelines for make ready Safety issues (e.g. penalties for code violations) Attacher rearrangement issues Refunds NCTA, Comptel, tw telecom seek reconsideration Ensure new telecom rate is the same as the cable rate Regardless of the number of attachers on the pole

41 Pole Attachment Order UTC Response UTC opposes NCTA, et al. Petition Procedural argument Outside scope of the NPRM; could have been raised earlier Statutory argument Revisions would contradict the law Requiring the allocation of costs among attaching entities and ensuring recovery of 2/3rds of the unusable space costs Arbitrary and capricious argument No legitimate basis for the proposed deductions

42 Pole Attachment Order UTC Supports Utility Coalition Petition FCC provide more flexibility / better balance interests of utilities Reduce number of poles subject to make ready deadlines Extend the deadlines if non-section 224 attachers present Confirm that deadlines don t apply to pole replacement jobs Permit clock stoppages for other events (seasonal storms) Apply Oregon safety violation / unauthorized attachment penalties make them automatically enforceable Allow utilities to discontinue certain practices Boxing and extension arms - even if allowed in the past Allow blanket bans on wireless attachments

43 Pole Attachment Order Utilities File in Court of Appeals Challenge telecom rate Contrary to law and arbitrary and capricious Utilities request for stay denied by the court Numerous parties intervene Attachers, utilities and associations Court denies FCC motion for abeyance Pending FCC s resolution of petitions for reconsideration

44 Accelerating Broadband NOI - Questions Identify and promote best practices and increased uniformity? Public rights of way Wireless facilities siting practices and policies Make specific recommendations to Congress / Administration? Sponsor voluntary mediation? Public rights of way Wireless facilities siting disputes between state or local officials and industry Adopt policy guidelines, adopt rules, or adjudicate rights of way cases, under section 253 or 332 of the Communications Act? Takes up other issues identified in Feb. 9th Workshop UTC files initial and reply comments 44

45 Tower Painting and Lighting Eliminate the visual inspection requirements for towers with automated monitoring systems - FCC NPRM Eliminate 200 foot height rule as a trigger for certain actions Deleting references to FAA circulars in the FCC rules ASR accuracy requirements Deadlines for lighting replacement Record retention requirements Treatment of voluntarily registered towers ASR posting requirements. 45

46 Programmatic Environmental Assessment on ASR Reqmts FCC follows up on migratory bird issues/court remand Apr. 1 Workshop discusses the data sources, assumptions, and methodologies that it is using in developing the PEA, and it accepts comments from members of the public. Criticism of FCC PEA by reps from US Fish & Wildlife Services and Audubon Society, especially Conclusion of no significant impact on migratory birds by each of proposed PEA alternative options 46

47 Programmatic Environmental Assessment on ASR Reqmts FCC invites comment by Nov. 2d on draft PEA, which proposes a range of options The most aggressive proposal would require tower owners to prepare an Environmental Assessment for nearly all new towers and for modifications to existing towers that increase the size of the tower by more than 10%. UTC filed comments in support of the No Action Alternative or Alternative 1 to limit requirements FCC issues interim public notice rules for ASR process requiring 30 days advance public notice (local and national) of any tower requiring an ASR and also an EA for any tower >450 feet in height

48 UTC s HAN Stakeholder Technical / Business Group 48

49 Why A HAN Working Group? Practical problems implementing programs No full understanding of all the technologies and options Changing technical capabilities and control algorithms for HVAC and home appliances No clear understanding of the value proposition and potential incentives / benefits Need a forum for education and sharing UTILITIES TELECOM COUNCIL - The Voice of Critical Infrastructure Communications 49

50 HAN WG Vision Create a source and resource for UTC members and technical partners to understand, share and discuss technical, business and regulatory issues concerning the development and deployment of residential, commercial and industrial energy management. The program places heavy emphasis on identifying the value to consumers, utilities and our technical partners at all levels, from residential appliance control to aggregated demand response being sold into the wholesale markets. UTILITIES TELECOM COUNCIL - The Voice of Critical Infrastructure Communications 50

51 More Information? Join our technical calls Last week we had representatives from HVAC industry s Climate Talk Alliance Association of Home Appliance Manufacturers Smart Meter Manufacturers Association of America Soft and Hardware energy management manufacturers Contact UTC UTILITIES TELECOM COUNCIL - The Voice of Critical Infrastructure Communications 51

52 Standards Issues 52

53 NIST Interoperability Roadmap V2 February, new standards, specifications & guidelines to the 75 standards NIST recommended in version 1.0 A new chapter on the roles of the SGIP A Risk Management Framework to provide guidance on security practices A new framework for device and system testing 53

54 What is Green Button and Energy Services Provider Interface (ESPI)? The vision collaboration and inspiration, using voluntary adoption of industry standards From concept to specification to implementation in 90days UTILITIES TELECOM COUNCIL - The Voice of Critical Infrastructure Communications 54

55 The Value Story Why is this of interest to consumers EUI is feedback mechanism for demand response Knowledge is power to utilities A well established specification will result in low cost of deployment of capabilities already planned and committed. A single third party interface encourages value added services that don t depend on continuous utility innovation on this interface. UTILITIES TELECOM COUNCIL - The Voice of Critical Infrastructure Communications 55

56 The Value Story to regulators Adoption of demand side management schemes will require consumer feedback and engagement to enable them to benefit. Many regulators are interested in ubiquitous low cost Green Button capabilities to enable consumer engagement and support return on investments to implementers A single interface allows robust applications to be developed Focus on value added rather than multiple custom interfaces per utility An ecosystem of goods and services built around concrete standard Web applications, desktop applications, appliance applications UTILITIES TELECOM COUNCIL - The Voice of Critical Infrastructure Communications 56

57 Examples of Green Button Data Hourly load profile for past billing period / current period to date Fifteen minute load profile for most recent 15 days Daily load profile for past month or year Summary only data Energy usage and energy demand readings Gas, Water usage profiles Yearly summary data with monthly parts UTILITIES TELECOM COUNCIL - The Voice of Critical Infrastructure Communications 57

58 Green Button - Why Do We Need It? Insight: Web portals analyze energy usage and provide tips Heating and Cooling: Customized HVAC for savings / comfort Education: Community / student energy efficiency competitions Retrofits: Improved decision-support tools to facilitate energy efficiency retrofits Verification: measurement of energy efficiency investments Real Estate: energy costs info for tenants and/or buyers Solar: optimize the size /cost-effectiveness of rooftop solar

59 Energy Usage Information - PAP10 Usage Profile Overall Usage Economic 59

60 Other Standards Issues OPEN SG status update: Creates v2 of OpenHAN and AMI SEC Establishes WG on IP communications requirements Establishes OpenFAN Field Area Network task group Establishes OpenMUG Metering User Group Smart Energy Profile version 2.0 released Several PUCs, including Texas, are concerned with transition from version 1.0 and 1.X and stranded costs 60

61 Standards Testing SGIP develops Interoperability Process Reference Manual (IPRM) Guide to testing and certification of smart grid products User groups: Define standards Set Up Interoperability Testing Certification Authority (ITCAs) to evaluate test labs Think product logos like WiFi, WiMAX and Zigbee 61

62 Homeland Security Issues 62

63 Homeland Security Issues Federal FERC Initiates Rulemaking on NERC CIP-4 Standards NERC Utilities must be auditably compliant with NERC CIP NERC revising CIP requirements to make it clearer for utilities to follow, but won t tell utilities how to comply NIST Releases Cyber Security Strategy and Requirements FCC Working on Cyber Security Roadmap for Communications Networks UTC/EEI/NRECA/APPA joint comments urge FCC to support smart grid, to coordinate with other agencies, and to recognize existing standards (9/23/2010) 63

64 Homeland Security Issues - Federal Idaho National Labs Report Finds - Poor patch management and weak authentication create vulnerabilities to Industrial Control Systems (ICS) Concerned about impact on critical infrastructure DOE Issues update to January 2006 Roadmap to Secure Control Systems in the Energy Sector Issues Cybersecurity Risk Management Process (RMP) Guidelines (Comments due October 28, 2011). NSA Launches Perfect Citizen to protect CI assets from cyber threats. 64

65 Recent Developments on Cybersecurity DOE Launches Risk Assessment Maturity Model DOE Audit of Smart Grid Investment Grants DHS Blueprint for a Secure Cyber Future: The Cybersecurity Strategy for the Homeland Security Enterprise NIST CSWG Guide for Assessing High Level Security Requirements in NISTIR-7628, Guidelines for Smart Grid Cyber Security NERC CIP-5 Voted Down UTC Launches Cybersecurity Program of Work through UTC Security Committee MIT Future of the Grid Paper identifies cyber issues

66 State Issues 66

67 Smart Grids Attacked on Numerous Fronts Cost benefits Don t do it, it costs too much Studies reveal benefits to consumer outweigh costs EMF from meters More Currents of Death (EMF allegations from the 80s) Evidence shows emissions less than a WiFi signal at a cyber cafe Meter accuracy My bills doubled Studies confirm accuracy, ignored rate design and weather impacts Impact on low income Raise rates, actually cut off customers, can t respond, food or A/C? Studies reveal majority low income customer benefit and/or respond

68 Smart Grids Attacked on Numerous Fronts Dynamic pricing / critical peaks Too few critical peak hours to make a difference Critical peaks determine when utilities spend $Billions on G, T & D Remote meter reading Just skip me Huge savings in costs (meter readers, special meter reads), emissions Privacy Provides info on when to rob me or when to attack me Utilities follow commission rules, eliminates meter readers walking in yards Shifting risk to consumers No riders At the end of day, consumers bear all prudent costs and risks

69 Smart Grids Attacked on Numerous Fronts Cyber security 12 year old terrorists will play with grid Utilities recognize these risks and are prepared Technology changing too rapidly Utilities aren t prepared for rapid technology changes Installed devices don t stop, replacement depends on incremental value

70 RF Power Density in the Everyday Environment In microwatts per square centimeter (µw/cm2) Source: Richard Tell Associates, Inc. FM radio / TV broadcast station signal microwatts SmartMeter device at 10 feet Cyber cafe (Wi-Fi) Laptop computer Cell phone held up to head Walkie-Talkie at head Microwave oven, two inches from door 0.01 microwatts microwatts microwatts 30-10,000 microwatts ,000 microwatts 5,000 microwatts

71 UTC RF Field Measurements UTC participated in field measurements of Smart Meters and the associated pole mounted collector devices These measurements shows levels well within FCC guidelines for general population exposure to these signals At 1 foot is 9.9% of the FCC limit At 3 feet is 2.5% of the FCC limit At 10 feet is 0.5% of the FCC limit 71

72 RF Exposure from Smart Meters UTC and EEI prepare report addressing RF issue, in addition to meter accuracy and security. Conclusions regarding RF Exposure: Exposure levels drop significantly with distance and building materials Meter enclosure shielding means 1/10 of emissions at back of meter At maximums SMs 125 to 1250 times less cell phone and 5 to 50 times less microwave oven In practice, under common operational parameters RF exposure to the consumer, typically well under 10 % of the FCC exposure limits 250 mwatt - 1 Watt Duty cycle (2%-5%) Distance (10 feet) from the transmitter 72

73 Recent State Developments NY PSC Smart Grid Policy Statement (8/2011) Requires utilities to consider using carrier networks for smart grid. Cost was a concern, but also technology obsolescence and customer engagement Colorado PUC Recommended Decision (8/2011) Recommends data privacy rules / penalties up to $2000 per violation Require utilities to explain Data collection processes Frequency of data collection Security measures to ensure customer privacy Utilities to provide data to customer authorized entities at no charge

74 Recent State Developments California PUC Smart Meter Decision Approves PG&E s proposal to charge customer $70 upfront and $10 per month for opting out, generally (lower charges apply to low income customers) Opt-out rates Portland General Electric in Oregon had 2 out of 800,000 Pacific Gas & Electric had 4,400 opt-outs among 6 million NV Energy officials expect about 7,500 ratepayers to opt out UTILITIES TELECOM COUNCIL - The Voice of Critical Infrastructure Communications 74

75 UTC s Smart Grid Communication Policy Summit June 19 th DC Panels Fast Forward Tomorrow s Smart Networks The Challenge of Integrating Distributed Energy Resources Optimizing Utility Distribution Networks Controlling Reliability and Cost Smart Grid, Smart Cities Policies, Technology and Incentives Needed to Ensure Intelligent Utilities and Cities US Department of Energy is co-host Washington Policies Communities AABE, APPA, CTIA, EEI, EPIC, EPRI, GWA, GWAC, NESCO, NRECA, SNC and US Telecom Major technologies partners currently include: Alcatel Lucent and CISCO UTILITIES TELECOM COUNCIL - The Voice of Critical Infrastructure Communications 75

76 Conclusions Spectrum is key to Smart Grid Sharing with PS and Federal Government may be the quickest and most realistic option. Target spectrum: <2 GHz for backhaul and <1 GHz for last mile. FCC promoting broadband on the backs of utilities and their consumers via pole attachments Cyber security and standards are increasingly important issues for utilities UTC will continue to monitor and address state Smart Grid issues

77 Thank you! Many issues not covered! For more information, contact: Michael Oldak, Brett Kilbourne, Prudence Parks, Klaus Bender,