Overview of Tallahassee s Smart Grid Initiative



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Overview of Tallahassee s Smart Grid Initiative Smart Grid Technologies Seminar February 4, 2011 1

Tallahassee s Utility Systems Tallahassee provides Electric, Gas and Water service to 113,000 customers in and around Tallahassee. 810 MW of generation capacity. 621 MW peak demand; 2,700 GWh of annual sales. 2.2 Bcf of annual natural gas sales. 11 billion gallons of annual water sales. $480 million in annual gross revenues. 220,000 meters. 250,000 service orders annually. 400,000 customer-initiated contacts annually. Smart Meters -> > Smart Utility ->Smart Customers 2

Can We Change the Way We do Business? Utility service has essentially been measured and billed the same way since we started doing business over 100 years ago. Customers receive information once a month after they use the service. Smart Meters -> > Smart Utility ->Smart Customers 3

What is the Smart Grid? A smart grid delivers electricity from suppliers to consumers using digital technology to save energy, reduce cost and increase reliability and transparency. Essential Components 1. AMI Network Meter-to-meter true two-way network that can provide near real-time data to the utility and our customers and enable remote disconnect and load control. 2. Meter Data Management System System that can store, test, analyze and process large volumes of utility records produced by the AMI network, and share data with the CIS, OMS and other utility applications. 3. Web Application A robust customer interface that can provide easy online access to account information, allow for account management, on-line energy audits, and facilitate demand response participation. 4. Customer Tools devices such as programable controllable thermostats, smart appliances, in home displays, and other devices that provide intelligent control of a customer s energy usage. Smart Meters -> > Smart Utility ->Smart Customers 4

Systems Architecture Smart Meters -> > Smart Utility ->Smart Customers 5

Business Drivers Operational Efficiency Reduced field service cost Office Diagnostics Improved metering accuracy Remote Disconnect Tamper Detection Customer Service Improved read accuracy Outage Management Customer Choice Full Account Management Demand Side Management Pricing Programs Load Control Critical Pricing Notification Smart Thermostats Smart Meters -> > Smart Utility ->Smart Customers 6

Project Timeline Phase I Smart Meters - 18 to 24 months Installation of Smart Meters, Network, Software, Integration, Training April 2008 Phase II Smart Utility - Finishing Meter Data Management Installation and Integration, Web Application, Training, operational efficiencies such as reduced truck rolls, tamper detection, remote meter reading, more Dec. 2010 August 2011 Phase III Smart Customers - Ongoing Customer Programs providing customer choice and control, critical peak pricing, easy to use tools on the web such as online energy audits, more Smart Meters -> > Smart Utility ->Smart Customers 7

Phase I AMI System Smart Meters -> > Smart Utility ->Smart Customers 8

Phase II - Web Application Smart Meters -> > Smart Utility ->Smart Customers 9

Phase III - Pricing Programs Pricing options will focus on customer choice and be designed to encourage conservation and better reflect the cost at the time electricity is produced. Options such as nights and weekends, family plan, college plan, prepaid etc. 12 30% more efficient Unit Heat Rate Critical Peak Pricing 10 8 6 4 2 Hopkins 2 Purdom 8 Hopkins 3 & 4 Hopkins 1 Purdom 7 0 MWh/MMBtu Smart Meters -> > Smart Utility ->Smart Customers 10

Phase III - Customer Tools Devices like smart thermostats will provide the flexibility to share month-to-date consumption and cost information with customers, and provide the ability to initiate temperature set-back or load control based on the customer s choice. These thermostats and other similar devices may be available off-the-shelf as programs in the industry become more prevalent. Smart Meters -> > Smart Utility ->Smart Customers 11

How Do Customer Devices Work with the Smart Grid? ZigBee Smart Energy Profile has emerged as the accepted standard for Smart Grid HAN communication. Designed for cost effective low powered communication standard for battery powered devices. Based on IEEE 802.15.4 standard Must be a member of the ZigBee Alliance to include the protocol in product. Smart Meters -> > Smart Utility ->Smart Customers 12

Lessons Learned Our Vision has stayed consistent and has strengthened through the process Good buy-in from leadership and business community Manage staff reduction promises carefully. Make sure all involved understand each other's organization; Muni vs. IOU, etc. (Who has your vendor worked with before.) Monitor national stories Public Opinion is evolving. Smart Meters -> > Smart Utility ->Smart Customers 13

Lessons Learned More work on front end with all Departments Be more realistic about our Transition window, may actually require more work from staff. At times you will know more than your vendors Vendor coordination AMI & MDMS Stronger focus on vendor training plans You will be unpopular at the beginning, much more popular as project approaches close-out. Smart Meters -> > Smart Utility ->Smart Customers 14

Lessons Learned Don't pay meter installers by the piece. Encourages harvesting of low hanging fruit, leaving utility with the tough stuff. Trust your contractor to do a good job BUT VERIFY. Install data collecting network first. Get involved with the coverage plan. Pilot every change before implementation. It will take longer than planned. Murphy is on the job. Smart Meters -> > Smart Utility ->Smart Customers 15

Questions? Smart Meters -> > Smart Utility ->Smart Customers 16