SDG&E Smart Grid Capital Projects

Application of San Diego Gas & Electric
Company (U902M) for authority to update its gas
and electric revenue requirement and base rates
effective on January 1, 2012.

Application No. 10-12-___
Exhibit No.: (SDG&E-11-CWP)

CAPITAL WORKPAPERS TO
PREPARED DIRECT TESTIMONY
OF THOMAS O. BIALEK, Ph.D., P.E.
ON BEHALF OF SAN DIEGO GAS & ELECTRIC COMPANY

BEFORE THE PUBLIC UTILITIES COMMISSION
OF THE STATE OF CALIFORNIA

DECEMBER 2010

TOB-CWP-1

CAPITAL PROJECT WORKPAPER
Page 2 of 27

PROJECT TITLE SBUDGET NO.
Smart Grid Portfolio 10261
WITNESS IN SERVICE DATE
Lee Krevat/Tom Bialek various

PROJECT COST PRIOR REMAINING
($000 in 2009$) YEARS 2009 2010 2011 2012 YEARS TOTAL

DIRECT LABOR 0 0 0 9696 15093 0 24789

DIRECT NONLABOR 0 0 0 26872 42176 0 69048

TOTAL DIRECT CAPITAL 0 0 0 36568 57269 0 93837

COLLECTIBLE

NET CAPITAL 0 0 0 36568 57269 0 93837

FTE 0 0 0 129.3 201.2 0 330.5

BUSINESS PURPOSE
This project portfolio incorporates smart grid technologies into the electric system infrastructure
with a goal of maintaining and/or improving system performance and operational flexibility and
reliability. As the penetration levels of renewables and electric vehicles increase relative to the
local load on the system, they are expected to impact system operations and reliability and this
portfolio will provide implementation of effective measures to mitigate these impacts. Relative
to infrastructure expansion, projects that involve building completely new large scale elements of
the distribution network such as new substations and new circuits shall be designed with a
perspective that strives to incorporate smart grid concepts and equipment where applicable.

This project portfolio also integrates with system improvement work being done to reduce the
fire threat in the overhead electric system located in the very high/extreme fire threat zone as this
hardening work provides a unique opportunity to incorporate smart grid elements to achieve the
most overall effective and superior solution. Smart grid and the fire hardening rebuilding
projects are particularly synergistic as the projects can be designed with a goal of providing more
operational flexibility, improved reliability and at the same time reduce fire risk. Smart grid
sensor technology, advanced system monitoring and control features can be integrated into the

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Page 3 of 27


operation of the system which is especially valuable during storms and extreme fire risk weather
events. In addition to maintaining and/or improving reliability, the circuit hardening work with
smart grid technologies should facilitate integration of distributed energy resources such as solar
and wind, as well as energy storage for back up of important community infrastructure such as
cell phone networks, communications devices and small water pumps used to supply drinking
water and fill small storage tanks that otherwise may lose power during extreme conditions. This
project portfolio should provide the ability to incorporate technologies that can keep more
customers and critical infrastructure safely in service during extreme fire risk weather events as
well as during storm periods and times when the electric system is stressed due to high operating
loads or operational emergencies. Specific categories of technologies to be provided by this
project are listed below.

PROJECT DESCRIPTION AND JUSTIFICATION
The description and justification for each of the Smart Grid technologies included in this capital
project are given below:

RENEWABLE GROWTH
ƒEnergy Storage (ES) - A cost forecast is provided for two types of energy storage systems to assist
in addressing intermittency issues created by the variable output of renewable energy resources.
One solution will place distributed energy storage systems on circuits with high penetration of
customer photovoltaic systems. Additionally, energy storage systems will be strategically located
in substations to mitigate the impact of multiple circuits with PV as the second budget item.
ƒDynamic Line Ratings – A cost forecast is provided for implementation of dynamic ratings for
distribution circuits. The implementation of dynamic line ratings has the potential for increasing
circuit capacity and accommodating new renewable generation.
ƒPhasor Measurement Units – A cost forecast is provided for implementation of phasor
measurement units on the electric distribution system. Installation of phasor measurement units

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on the electric distribution system are expected improve reliability by employing high speed, time
synchronized measurement devices. These devices will be utilized in conjunction with energy
storage devices to create a closed loop control system to mitigate the impact of intermittent
renewables.
ƒCapacitor SCADA – A cost forecast is provided to implement SCADA control of all capacitors on
SDG&E’s distribution system and is distinct from the SCADA expansion for switches discussed
below. Benefits of SCADA for capacitors should include: better voltage and VAr control,
reduced maintenance, and better system diagnostics. When coupled with energy storage,
dynamic line ratings and phasor measurements new control schemes can be implemented which
will mitigate the impact of PV system output fluctuations on system voltage.
ƒSCADA Expansion – A cost forecast is provided for expansion of SCADA to expand remote
operability and automated operation of distribution SCADA capable switches. This will continue
SDG&E’s goal of providing faster isolation of faulted electric distribution circuits and branches,
resulting in faster load restoration and isolation of system disturbances.

ELECTRIC VEHICLE GROWTH
ƒSmart Transformers – A cost forecast is provided for the installation of sensors and technology on
distribution transformers so that they can monitor and report loading, and the state of the
transformers. This project has the potential to allow increased transformer capacity utilization
and accommodate future loads such as electric vehicle charging.
ƒPublic Access Charging Facilities – A cost forecast is provided for the installation of utility owned
public charging facilities for electric vehicles. SDG&E will install and own the charging facilities
in under-served areas in order to broaden the coverage of public charging stations within its
service territory. This project will also help to develop the services offered by 3rd parties to
support vehicle charging facilities.

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RELIABILITY
ƒWireless Faulted Circuit Indicators - A cost forecast is provided for implementation of wireless
faulted circuit indicators. This system is expected to provide rapid identification and location of
faulted distribution circuits resulting in reduced outage and repair times.
ƒPhase Identification – A cost forecast is provided for accurate identification of phasing for
implementation in the new distribution operating system. This project should enable improved
worker safety, more accurate fusing, improved system planning, and reduced system losses.
ƒCondition Based Maintenance Expansion – A cost forecast is provided for expansion of CBM to
include distribution substation transformers at 4 kV substations. This project should reduce the
risk of catastrophic failures and improve customer satisfaction.

SMART GRID DEVELOPMENT
Integrated Test Facility – A cost forecast is provided to construct facility upgrades and
purchase and install equipment to create an integrated test facility. This will allow testing of the
integration of multiple complex hardware and software systems comprising smart grid
technologies.

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RENEWABLE GROWTH: ENERGY STORAGE

A cost forecast is provided for two types of energy storage systems to assist in addressing
intermittency issues created by the variable output of renewable energy resources. One solution will
place distributed energy storage systems on circuits with high penetration of customer photovoltaic
systems. Additionally, energy storage systems will be strategically located in substations to mitigate
the impact of multiple circuits with PV as the second budget item.

Energy storage systems will be used to demonstrate the ability to enhance the value of energy
from renewable distributed generation in at least two fundamental ways: minimize the
intermittency problem of renewables by installing storage and if appropriate and possible, use
storage so that electric energy generated during times of lowest system need can be “time-
shifted” and used during time of greatest need to the electric system.

As the penetration of distributed energy resources, DER, continues to increase, the need for
distributed storage will also increase in order to mitigate intermittency problems at the local 12
kV feeder level. This project will install energy storage in two forms: 1) distributed storage in
the form of community energy storage, CES, devices in those circuits where the penetration of
distributed PV is 20% or more of the circuit load at times of high photovoltaic system output and
low circuit loads, and 2) substation energy storage of utility scale, size anticipated to be 1 MW or
greater, which will be installed to mitigate the effects of utility scale (up to 2 MW) PV projects
that will be installed in various locations.

Storage devices will be installed at substations with identified large PV additions (Creelman,
Pala, Valley Center, Lilac) and substations with high forecasted PV growth (Border, Kyocera,
Middletown, Poway). Unit-cost estimates for substation Storage are based on price quotation
obtained from Bulk Storage providers in September, 2009.

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Energy Storage, installed in conjunction with the appropriate sensors, control and
communication systems should provide a solution for the mitigation of intermittency via the
management and discharge of stored energy in a controlled and coordinated way.

Based on the historical and forecasted penetration of distributed PV in the SDG&E service
territory, CES devices, which are small, 50kW batteries, will be installed on 11 circuits in 2011,
and on 14 more circuits in 2012. In addition to the CES devices, substation energy storage
amounting to 4 MW will be installed in 2011 and another 4 MW will be installed in 2012.

A prioritized list of circuits that are good candidates for distributed storage, based on PV growth
projections, has been developed. CES unit-cost estimates were obtained from the EPRI Storage
System Cost Workbook, published in March, 2010.

Cash Flow:
($000 in 2009$)
Year: 2010 2011 2012 Total
Direct Labor: 0 6281 7427 13708
Direct Non-labor: 0 18912 22363 41275
Total Capital: 0 25193 29790 54983

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ELECTRIC VEHICLE GROWTH: SMART TRANSFORMERS

A cost forecast is provided for the installation of sensors and technology on distribution transformers
so that they can monitor and report loading, and the state of the transformers. This project has the
potential to allow increased transformer capacity utilization and accommodate future loads such as
electric vehicle charging.

Distribution line transformers can be converted into smart devices by installing monitoring
equipment on the secondary bushings. These monitors will provide information to engineers and
operators about the state of the grid including distributed resources and loads at the location of
the transformers. This data will be especially valuable for monitoring the load and condition of
transformers feeding plug-in electric vehicles. It will also provide information about the state
and condition of the transformer. Transformer monitors will facilitate dynamic ratings for the
transformers, the ability to verify energy consumed or generated by new distributed resources or
loads for potential management applications, and the ability to assess detailed transformer
conditions in order to proactively troubleshoot customer or secondary voltage problems.

This project will install transformer monitoring devices on all transformers serving customers
with plug-in electric vehicles. Sensing devices attached to transformers will be used to monitor
real-time loading and establish accurate load profiles. This information will be available to
system operators to alert them to possible overloads, imbalances, voltage excursions or other
operational issues. Additionally, engineers will use this information to revise transformer
loading guidelines which may lead to optimizing the number of customers that may be served
from an individual transformer and reducing transformer loading problems.

One transformer monitoring device will be installed on every distribution transformer that serves
a customer with a PEV and associated charge stations. The number of PEV charge stations is
anticipated to be:

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Year: 2010 2011 2012 Total
PEV Charge Stations: 600 2150 700 3450

This estimated number of charge stations is based on the expected sales of battery electric
vehicle and plug-in hybrid electric vehicle sales in the San Diego area. This estimate is based
upon a DOE sponsored program with partnership by ECOtality and Nissan to deploy up to 5,000
electric vehicles and charging infrastructure in San Diego and four other U.S. cities.
This project will begin in 2011, therefore the number of transformer monitors installed in 2011
will match the number of charge stations installed in 2010 and 2011. The cost estimate for this
project is derived from an estimated average cost of $744 per transformer monitor installed on
2750 transformers in 2011 and on 700 transformers in 2012. The average cost estimate per
transformer was based on information provided by a manufacturer of transformer monitoring
equipment that could be used for this project.

Cash Flow:
($000 in 2009$)
Year: 2010 2011 2012 Total
Direct Labor: 0 680 173 853
Direct Non-labor: 0 1367 348 1715
Total Capital: 0 2047 521 2568

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ELECTRIC VEHICLE GROWTH: PUBLIC ACCESS CHARGING FACILITIES

A cost forecast is provided for the installation of utility-owned, public access charging facilities
for electric vehicles. SDG&E will install and own the charging facilities in under-served areas in
order to broaden the coverage of public charging opportunities within its service territory. This
effort will allow SDG&E to continue the momentum of the stakeholder charging facility siting
and installation process established by ECOtality as part of their government funded EV Project
between 2010 and mid-2011. As planned, this project will increase the number of charging
facility services offered by 3rd parties, specifically to provide PEV charging facilities in locations
that are not necessarily commercially or economically desirable, but needed to serve the broader
and growing PEV charging needs of the public.

SDG&E will work with the CPUC to develop broad criteria for evaluating the installation of
“public access charging facilities” with the objective to ensure a network of public charging
facilities is developed in the public interest over time that would provide sufficient support for
the adoption and use of PEVs

The number of 240V Level 2 charges installed will be approximately 1% of the cumulative plug-
in hybrid electric vehicles, PHEVs, anticipated in the 2012 through 2015 period, and the number
of DC Fast Chargers will be approximately 0.1% of the cumulative PHEV’s in the 2012-2015
period (see table below). PEV charging facility users will pay for the use of these charging
facilities through an applicable PEV tariff that will be developed in accordance with policy
established in the CPUC’s Alternative Fueled Vehicle Order Instituting Rulemaking.

Year: 2010 2011 2012 Total
240V Level 2 Charge Stations 0 0 129 129
480V DC Fast Charger Stations: 0 0 13 13

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The cash flow below reflects the public access charging facilities funding requirements for the
entire SDG&E system taking place over a four year period (2012-2015) with the work beginning
in 2012. The cash flow below reflects the public access charging facilities funding requirements
taking place over a four year period (2012-2015). This cost estimate is derived from an
estimated average cost of approximately $33,000 per 240V charging facility times 129 such
facilities per year, plus approximately $71,000 per 480V charging facility times 13 such facilities
per year.

Cash Flow:
($000 in 2009$)
Year: 2010 2011 2012 Total

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Page 27 of 27


Cash Flow:
($000 in 2009$)
Year: 2010 2011 2012 Total

SUMMARY CASH FLOW

A summary table of the cash flows for all projects in this workpaper is provided below.

TOB-CWP-27

Application of San Diego Gas & Electric
Company (U902M) for authority to update its gas
and electric revenue requirement and base rates
effective on January 1, 2012.

Application 10-12-____
Exhibit No.: (SDG&E-11)

PREPARED DIRECT TESTIMONY OF
THOMAS BIALEK, Ph.D., P.E.
ON BEHALF OF SAN DIEGO GAS & ELECTRIC COMPANY

BEFORE THE PUBLIC UTILITIES COMMISSION
OF THE STATE OF CALIFORNIA

December 2010

SDGE Doc #249440

TABLE OF CONTENTS

I. INTRODUCTION...................................................................................................................... 1
A. Purpose of Testimony ................................................................................................................ 1
B. Overview of Operations ............................................................................................................. 3
C. Challenges Facing Operations .................................................................................................. 4
C. Reliability .................................................................................................................................. 14
D. Smart Grid Development ........................................................................................................ 15
E. Summary of Request................................................................................................................ 16
II. NONSHARED SERVICES ..................................................................................................... 17
A. Introduction .............................................................................................................................. 17
1. Smart Grid Team ............................................................................................................... 17
B. Discussion of O&M Activities ................................................................................................. 17
1. Smart Grid Team Salaries and Benefits .......................................................................... 17
III. CAPITAL.................................................................................................................................. 18
A. Introduction .............................................................................................................................. 18
B. Capital Request Detail ............................................................................................................. 20
1. Renewable Growth: Energy Storage (Budget Codes: 10261) ....................................... 20
2. Renewable Growth: Dynamic Line Ratings (Budget Codes: 10261) ........................... 21
3. Renewable Growth: Phasor Measurement Units (PMU) - Synchrophasors (Budget
Codes: 10261) ..................................................................................................................... 22
4. Renewable Growth: Capacitor SCADA (Budget Codes: 10261) ................................. 24
5. Renewable Growth: SCADA Expansion (Budget Codes: 10261) ................................. 25
6. Electric Vehicle Growth: Plug-In Electric Vehicles ...................................................... 26
7. Electric Vehicle Growth: Smart Transformers (Budget Codes: 10261) ...................... 27
8. Electric Vehicle Growth: Public Access Charging Facilities (Budget Codes: 10261) 28
9. Reliability: Wireless Fault Indicators (FCI) (Budget Codes: 10261) .......................... 31
10. Reliability: Phase Identification (Budget Codes: 10261) ............................................... 32
11. Reliability: Condition Based Maintenance (CBM) Expansion
(Budget Codes: 10261) ....................................................................................................... 33
12. Smart Grid Development: Integrated Test Facility (Budget Codes: 10261) ............... 35
IV. CONCLUSION ........................................................................................................................ 35
V. WITNESS QUALIFICATIONS ............................................................................................. 37

SDGE Doc #249440 TOB-i

1 PREPARED DIRECT TESTIMONY OF
2 THOMAS BIALEK, Ph.D., P.E.
3 ON BEHALF OF SAN DIEGO GAS & ELECTRIC COMPANY
4
5
6 I. INTRODUCTION
7
8 A. Purpose of Testimony

9 1. New Projects Incremental to Historical Activities
10 The purpose of this testimony is to sponsor the Smart Grid capital forecasts for
11 San Diego Gas & Electric Company, SDG&E, for the years 2010, 2011 and the test
12 year 2012. The Smart Grid portfolio of projects that are presented in this immediate
13 general rate case, GRC, application also have a life span that extend beyond the test
14 year. Additionally, this GRC funding request is not to be viewed as the entirety of
15 Smart Grid projects that SDG&E may request since other projects may be necessary in
16 the future as requirements change and as new technologies and solutions become
17 available.
18 As discussed in the Smart Grid policy testimony of Mr. Lee Krevat, Exhibit
19 SDG&E-10, there are many drivers for SDG&E’s Smart Grid activities. Based upon
20 these drivers, SDG&E has developed a limited portfolio of projects with the goal of
21 applying Smart Grid technologies to effectively integrate intermittent renewable
22 generation sources and plug-in electric vehicles, and includes other capabilities
23 designed to maintain and/or improve system reliability. The projects included in this
24 general rate case include only the distribution component of each project. The
25 information technology, IT, capital portions associated with these projects are
26 necessary to provide the communication devices, IT infrastructure and applications
27 required to derive the functionality envisioned with the individual project. The IT
28 components required for the Smart Grid portfolio of projects, while need-justified
29 within the scope of this testimony, are presented in the testimony of Mr. Jeff Nichols,
30 Exhibit SDG&E-18. What might be described today as the conventional or on-going
31 capital and operations and maintenance forecasts are presented in the testimonies of
32 Mr. Alan Marcher, Exhibit SDG&E-06 and Mr. Scott Furgerson, Exhibit SDG&E-05
33 respectively.

SDGE Doc #249440 TOB-1

1 A list of the Smart Grid projects by categories and testimony sponsors is shown below:

2 RENEWABLE GROWTH
3 Energy Storage (ES) Capital Thomas Bialek, Exhibit SDG&E-11
4 IT Mr. Jeff Nichols, Exhibit SDG&E-18
5 Dynamic Line Ratings Capital Thomas Bialek, Exhibit SDG&E-11
7 Phasor Measurement Units Capital Thomas Bialek, Exhibit SDG&E-11
9 Capacitor SCADA Capital Thomas Bialek, Exhibit SDG&E-11
11 SCADA expansion Capital Thomas Bialek, Exhibit SDG&E-11
13
14
15 ELECTRIC VEHICLE GROWTH
16 Plug-in Electric Vehicles Capital Mr. Alan Marcher, Exhibit SDG&E-06
18 Smart Transformers Capital Thomas Bialek, Exhibit SDG&E-11
20 Public Access Charging Facilities Capital Thomas Bialek, Exhibit SDG&E-11
22
23 RELIABILITY
24 Wireless Faulted Circuit Indicators Capital Thomas Bialek, Exhibit SDG&E-11
26 Phase Identification Capital Thomas Bialek, Exhibit SDG&E-11
28 Condition Based Maintenance
29 Expansion Capital Thomas Bialek, Exhibit SDG&E-11
31
32


1 SMART GRID DEVELOPMENT
2 Integrated Test Facility Capital Thomas Bialek, Exhibit SDG&E-11
4

5 2. Smart Grid Team
6 This testimony also sponsors the ongoing funding of the cost center for the
7 Smart Grid Team. This small group of individuals: a Director, Chief Engineer, Lead
8 Architect, Policy Manager, Customer Manager and Administrative Associate; are
9 responsible for developing SDG&E’s Smart Grid strategy and policy. The organization
10 is also responsible for aligning the strategy and policy across SDG&E.

11
12 Table TOB -1
13 Summary of TY2012 Change
14 (Thousands of $2009)
15
Functional Area: SMART GRID
Description 2009 TY2012 Change Testimony
Adjusted- Estimated Reference
Recorded
Total Non-Shared 330 1,003 673 Section II
Total Shared Services (Book 0 0 0
Expense)
Total O&M 330 1,003 673

Total Capital 0 57,269 57,269 Section III
16

17 B. Overview of Operations

18 Smart Grid is a new activity. A special cost-center function has been created to deal
19 just with this topic, and that cost center’s role is to provide steering and strategic guidance
20 throughout the organization to coordinate the adoption and implementation of Smart Grid
21 related technologies.
22
23
24


1 C. Challenges Facing Operations

2 As described in the testimony of Mr. Lee Krevat, Exhibit SDG&E-10, SDG&E is
3 committed to meeting California policy goals of promoting increased levels of renewable
4 energy resources and the deployment of electric vehicles to meet greenhouse gas reduction
5 targets. However, with advancements in environmentally friendly technologies such as solar
6 and wind generation, plug-in electric vehicles, and energy storage, as well as the deployment
7 of new customer empowering Smart Meter technology, the electric system is in the midst of
8 significant change. SDG&E recognizes the need to leverage equally advancing information
9 and communication technologies, ICT, to ensure the continued safety, reliability, security, and
10 efficiency of the electric grid as utilization of intermittent energy resources and demand for
11 plug-in electric vehicle, PEV, increases.
12 In addition to the traditional grid management and customer-facing projects utilities
13 have undertaken in the past, environmental policy and legislation encouraging customer
14 empowerment over energy management is driving the need to accelerate the integration of
15 digital and communications technology with the electric delivery system, creating a smarter
16 grid. The public policy objectives of California and the situation faced in San Diego create a
17 need to move forward with the implementation of advanced technology in order to meet the
18 State’s ambitious energy policy goals.
19 The seven characteristics or performance features of a Smart Grid as developed by the
20 Department of Energy’s, DOE, Smart Grid Task Force and referenced by the CPUC are1:

21 • Anticipating and responding to system disturbances in a
22 self-healing manner;
23 • Enabling active participation by consumers;
24 • Operating resiliently against physical and cyber attack;
25 • Accommodating all generation and storage options;
26 • Enabling new products, services, and markets;
27 • Optimizing asset utilization and operating efficiently; and
28 • Providing the power quality for the range of needs in a
29 digital economy.
30

1
CPUC R.08-12-009, Order Instituting Rulemaking to consider Smart Grid Technologies Pursuant to Federal Legislation
and on the Commission’s own Motion to Actively Guide Policy in California’s Development of a Smart Grid System, p
11.


1 SDG&E’s current portfolio of T&D Smart Grid projects focus on four specific areas:
2 renewable generation growth, electric vehicle growth, reliability and Smart Grid development.
3 In the first area SDG&E is focused on mitigating the impact of renewable photovoltaic, PV,
4 distributed generation. For the second area, SDG&E is deploying new Smart Grid
5 technologies as well as traditional infrastructure to mitigate reliability issues due to customer
6 adoption of PEVs. The third area focus is to mitigate the reliability impacts of an aging
7 electric infrastructure by implementing advanced sensors and associated systems. For the last
8 area, SDG&E is planning to create an integrated test facility to put various emerging
9 technology solutions together to test for interoperability and provide proof-of-concept
10 demonstrations.

11 As indicated by Mr. Lee Krevat, Exhibit SDG&E-10, SDG&E needs to mitigate the
12 impacts of renewable generation development that is planned and occurring in the San Diego
13 region to satisfy California’s 33% Renewable Portfolio Standard, RPS. Additionally, San
14 Diegans have installed more total systems and nameplate capacity of distributed photovoltaic
15 generation than consumers in any city in the state based on 2009 data2. The arrival of 1,000
16 Nissan Leaf all-electric vehicles starting in December of 2010 will also increase the immediate
17 need for Smart Grid technologies on the electric grid in San Diego.
18 Increased situational awareness enabled by sensors, communications, data, analysis and
19 remote control allows the system to be operated with increased reliability and safety. Dynamic
20 measurement of system characteristics and improved distribution management also increases
21 the capabilities and resiliency of energy delivery. However, as a result, the complexity of grid
22 operations is increased significantly.
23
24 1. San Diego Drivers
25 The specific drivers of Smart Grid investments in the San Diego Gas & Electric
26 service territory are the growth of distributed photovoltaics, PV, the expected growth of
27 plug-in electric vehicles, PEVs and SDG&E’s aging infrastructure.
28
29

2
“California’s Solar Cities: Leading the Way to a Clean Energy Future”; Environment California Research and Policy
Center, Summer 2009; accessed July 15, 2010 at http://www.environmentcalifornia.org/reports/energy/energy-program-
reports/californias-solar-cities


1 a. Distributed Photovoltaic Growth
2 At year end 2009 distributed PV accounted for approximately 65 MWac
3 of generating capacity on the SDG&E system. As of the same timeframe,
4 SDG&E has ten primary distribution circuits with over 20% of the load served
5 by PV at times of low circuit loading as shown in Figure TOB-1.3 Figure TOB-
6 2 illustrates both the actual recorded PV installations and the California Energy
7 Commission, CEC, forecast based on past PV growth.4 Applying the CEC
8 forecast to existing installations on circuits produces Figure TOB-3 which
9 shows the circuits with levels of over 20% PV generation at year end 2020.
10 This figure shows sixty circuits meet this criteria, which SDG&E believes is an
11 appropriate threshold to conduct more detailed studies to determine if the circuit
12 can accommodate these levels of PV without impacting grid voltage operating
13 limits or creating any operations and maintenance issues.
14
15

3
While SDG&E’s Rule 21 places an emphasis on percentage nameplate capacity as a function of peak line section rating,
for PV systems the maximum output at times of lower system load (no air conditioning) are more critical.
4
CEC CALIFORNIA ENERGY DEMAND 2010-2020 December 2009, CEC-200-2009-012-CMF, ADOPTED
FORECAST , Form 1.4, Page 149.


1
2 Figure TOB-1 – PV Penetration YE 2009 as a Percentage of Circuit Load on April 1, 2009, 1
3 pm
4
5
6


1
2 Figure TOB-2 – Actual Historical PV Installations and CEC PV Forecast


1
2 Figure TOB-3 – Impact of Increasing PV Penetration versus year with CEC Forecast Installations
3
4 SDG&E has been able to instrument a circuit with a high PV nameplate capacity at a time of
5 low circuit loading. Figure TOB- 4 shows the impact of a 1 MWac PV system on SDG&E’s primary
6 voltage for one day recorded with this instrumentation. The upper set of curves shows the impact of
7 fog burning off on the output of the PV system and the commensurate changes in primary voltage
8 during the day. The lower set of curves is a magnified view, 10 minutes of one particular change in
9 the PV system output data. Operational issues that are noted from these curves include the following:
10 high primary voltage coincident with PV system output and an approximately 15% swing in primary
11 voltage coincident with PV system output change. These measured and changes in values are outside
12 SDG&E’s design tolerance limits. Therefore, from the data and forecast currently available, SDG&E
13 believes investment in mitigation of intermittent photovoltaic generation is necessary.
14
15


1
2 Figure TOB-4 – PV System Output Variability Impact on Primary Voltage
3
4 One component of a solution to this problem is to incorporate energy storage as a grid device.
5 With energy storage, given its cost today, it is necessary to accrue benefits associated with multiple


1 value streams in order to provide a least-cost solution. The value streams for energy storage are as
2 follows:
3 • Grid operation to islanded system operation
4 • Smoothing electrical transition
5 • Power quality
6 • Power leveling / regulation on grids with connected variable, renewal energy sources,
7 such as Wind, PV, etc.
8 • Peak load shifting / shaving
9 • As needed
10 • Daily
11 • Energy storage for off-peak / on-peak energy arbitrage
12 • Energy regulation / ancillary services related to CAISO operations
13 • T&D capacity deferral
14
15 SDG&E has utilized a report published by Sandia National Labs as a reference guide for
16 energy storage applications which states5:
17 "The work documented in this report represents another step in the ongoing investigation of
18 innovative and potentially attractive value propositions for electricity storage by the United
19 States Department of Energy (DOE) and Sandia National Laboratories (SNL) Energy Storage
20 Systems (ESS) Program. This study uses updated cost and performance information for
21 modular energy storage (MES) developed for this study to evaluate four prospective value
22 propositions for MES. The four potentially attractive value propositions are defined by a
23 combination of well known benefits that are associated with electricity generation, delivery,
24 and use. The value propositions evaluated are: 1) transportable MES for electric utility
25 transmission and distribution (T&D) equipment upgrade deferral and for improving local
26 power quality, each in alternating years, 2) improving local power quality only, in all years, 3)
27 electric utility T&D deferral in year 1, followed by electricity price arbitrage in following
28 years; plus a generation capacity credit in all years, and 4) electric utility end-user cost
29 management during times when peak and critical peak pricing prevail."

5
Sandia National Laboratory, SANDIA REPORT SAND2008-0978, Unlimited Release Printed, February 2008,
Benefit/Cost Framework for Evaluating Modular Energy Storage, A Study for the DOE Energy Storage Systems Program,
Susan M. Schoenung and Jim Eyer.


1
2 The summary results of the SNL study are shown below.

3 “Figure 17 shows the present worth of benefits and costs for lead-acid battery storage used for
4 the four value propositions investigated. Most notably: value proposition 1 (T&D deferral plus
5 PQ), value proposition 2 (PQ/reliability only) and value proposition 3 (high value T&D
6 deferral plus arbitrage and generation capacity credit) show promise as they have a benefit/cost
7 ratio greater than 1.
8

9
10
11 Other components of the multi-faceted solution include dynamic line ratings, phasor
12 measurement units and supervisory control and data acquisition, SCADA, expansion to enable remote
13 control of capacitor banks and other switches on the system.
14
15 B. Plug-In Electric Vehicle (PEV) Growth
16 As also discussed in the testimony of Mr. Lee Krevat, Exhibit SDG&E-10, the impact
17 of PEVs on SDG&E’s system is expected to be significant. He discussed the US Department
18 of Energy, DOE, and California Energy Commission, CEC, grants awarded to ECOtality6 as

6
ECOtality is a San Francisco based company specializing in the development and commercialization of electric
transportation and storage technologies.


1 well as the large loads that these vehicles will impose on the system as a result of the rapid
2 deployment of PEVs and residential, commercial and public charging facilities in the SDG&E
3 service territory beginning in 2010. He also mentioned the need to make infrastructure
4 investments to empower customers and to minimize barriers that would be created without
5 immediate action taken to ensure the deployment of adequate charging infrastructure. This
6 position is also supported by the Commission as described in the testimony of Ms. Kathleen
7 Cordova, Exhibit SDG&E-15 (SDG&E’s Electric Clean Transportation Program). In January
8 2010, the Commission recognized the importance of early action to support the electric
9 transportation market in defining the scope for the alternative-fueled vehicles rulemaking and
10 stated that it will follow the directive set forth in Senate Bill 626 to evaluate policies to develop
11 infrastructure sufficient to overcome any barriers to the widespread deployment and use of
12 plug-in hybrid and electric vehicles.7
13 Figure TOB-5 shows SDG&E’s estimates of PEV sales in its service territory. This
14 estimate of PEV sales was based upon several independent analysts’ forecast of light duty
15 vehicles PEV penetrations adjusted to be applicable to SDG&E’s service territory and related
16 impacts. By 2012 approximately 15,000 PEVs are estimated to be owned by customers in
17 SDG&E’s service territory. With an estimated load of 3 kW per vehicle this equates to 45 MW
18 of new load, that if not managed properly could have a significant impact on the local
19 distribution system and potential generation needs. It should be noted that the Commission
20 approved in June of 2010 the use of three experimental PEV time-of-use rates, each with
21 varying differences between on-peak and off-peak pricing to explore the degree to which rates
22 (and enabling PEV technology) impacts consumer time-of-day charging decisions and
23 behavior.8
24 One of many challenges associated with PEV growth rates will be with customers who
25 purchase these vehicles and are located in the older coastal areas of SDG&E’s service territory.
26 In most instances these homes are smaller, do not have air conditioning and the number of
27 customers connected per transformer is greater than in the inland valleys. A 3 kW charging

7
January 12, 2010 Scoping Memo in R.09-08-009, Commission Rulemaking on alternative-fueled vehicle tariffs,
infrastructure and policies to support California's greenhouse gas emissions reduction goals.
8
http://docs.cpuc.ca.gov/word_pdf/AGENDA_RESOLUTION/119477.pdf Res.E-4334 – The CPUC approved SDG&E’s
request to establish three new temporary experimental residential rate schedules for plug-in electric vehicle (PEV) charging
to be used coincident with the EV Project (ECOtality’s deployment of home, commercial and public charging facilities in
collaboration with Nissan’s deployment of the Leaf PEV in SDG&E’s services territory). This Resolution approves
implementation of the experimental rate schedules beginning January 1, 2011. The temporary rates will remain in effect
until November 30, 2012 (or until completion of the related pricing pilot research project.)


1 load is comparable to an air conditioner load which now suddenly is placed onto the grid.
2 SDG&E is currently involved in an Electric Power Research Institute, EPRI, project9 to further
3 understand the impact of PEVs on the grid. Proactively, SDG&E believes it is imperative to
4 fund three areas of activities: existing facility upgrades, smart transformers and public charging
5 infrastructure in order address the coming PEV consumer demand and to reduce potential
6 market barriers to PEV adoption due to inadequate charging infrastructure.
7
Cumulative and annual PEV sales (2010 to 2020)
8 BEVs and PHEVs (x 1,000)
9 300
Cumulative B EVs
10
Cumulative PHEVs
250 2 7.5
11 Annual PEV s ales
23 6.6
12
200 2 1.6
13 1 83 .6

14 150 16 .5
1 40 .1
15 12 .01
100 10 6.1
16 8.4
7 9.3
17 50
5.6
3 .7 56 .9 58.9

18 0 .2 2.1 2.2 2 .6 38 .6 38.4
48.7

1 .1 5.2 1 3.1 2 4.1 25.2
30.5
15.6
19 0 1.3 6.1 7.9
11.4 20.2

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
20
21 Figure TOB-5 – SDG&E’s Estimate of PEV Sales
22
23 C. Reliability
24 As discussed at length in the testimony of Mr. Alan Marcher, Exhibit SDG&E-06,
25 SDG&E has an aging infrastructure and a need to continue to improve its fire preparedness.
26 Seventy-eight percent of SDG&E’s 4 kV substation transformers have been in-service 50 years
27 or more while only thirty seven percent of 12 kV substation transformers have been in-service
28 40 years or more. It is not just transformers but basic equipment such as poles, wire and cable.
29 Putting this in context, these pieces of equipment have to handle not only existing historical
30 loads but now also the intermittent power flows associated with PV systems that have been
31 installed and the PEV loads that are poised to make an appearance at the end of 2010.

9
EPRI Project ID No. 065939.


1
2 As SDG&E works to further reduce the risk of fires and strive to improve its ability to
3 respond and restore electrical service as quickly as possible, it is leveraging advances in
4 technology and systems. SDG&E believes that by putting the “smarts” in the grid it should be
5 possible to maintain and/or improve reliability in the face of these challenges. Therefore,
6 SDG&E has developed cost forecasts for three Smart Grid projects for incorporation in this
7 general rate case: wireless faulted circuit indicators, phase identification and an expansion of
8 condition based maintenance.
9
10 D. Smart Grid Development
11 As the Commission has noted in its recent Smart Grid OIR decision, D.10-06-047,
12 “…that deployment plans should include a discussion of an IOU’s Smart Grid strategy,
13 and that the strategy should offer a sense of direction and guidance, rather than setting rigid
14 requirements. This is clearly a reasonable approach since there are significant uncertainties
15 surrounding future technologies that may be part of a Smart Grid.” 10
16 also
17 “There is a consensus among those parties providing comments that a
18 roadmap can provide useful information concerning technologies and their
19 deployment, even though they will remain subject to change.”11
20
21 and finally
22 “In addition, there is near universal agreement that it is difficult to provide a reliable cost
23 estimate based on future and unknown technologies and infrastructure investments….but the
24 Commission does not find that it would be possible to require detailed, projected cost estimates
25 for technology that is undergoing dramatic changes in costs and technology today, or has yet to
26 be invented.”12
27 Given that Smart Grid technologies, solutions and standards are rapidly evolving and it
28 is difficult to estimate costs and requirements in the next five years, there is a need, as pointed

10
R.08-12-009, Order Instituting Rulemaking to Consider Smart Grid Technologies Pursuant to Federal Legislation and
on the Commission’s own Motion to Actively Guide Policy in California’s Development of a Smart Grid System, D.10-06-
047 (Decision Adopting Requirements For Smart Grid Deployment Plans Pursuant To Senate Bill 17 (Padilla), Chapter
327, Statutes Of 2009)., pg. 47.
11
Ibid, pg. 64.
12
Ibid, pg. 68.


1 out by Mr. Lee Krevat Exhibit SDG&E-10, for SDG&E to test the function of new consumer
2 focused technologies on the installed smart meters and associated systems to enable two Smart
3 Grid characteristics. These characteristics are enabling active participation by consumers and
4 new products, services, and markets. Therefore, SDG&E has developed a cost forecast for an
5 integrated Smart Grid test facility to address standard, integration and interoperability
6 challenges for these technologies.
7

8 E. Summary of Request

9
10 Table TOB - 2
11 O&M Non-Shared Services
12 Testimony Section II
13 (Thousands 2009 dollars)
14
SMART GRID
Categories of Management 2009 Adjusted- TY2012 Change
Recorded Estimated
A. Smart Grid Electric Distribution 330 1,003 673
Total 330 1,003 673
15
16
17
18 Table TOB - 3
19 Capital Expenditures
20 (Thousands 2009 dollars)
21
SMART GRID
Category Description 2009 2010 2011 2012
Recorded Estimated Estimated Estimated
1. Smart Grid Portfolio $0 $0 $36,568 $57,269
Total Capital: $0 $0 $36,568 $57,269
22
23
24
25
26
27
28


1 II. NONSHARED SERVICES

2 A. Introduction

3 1. Smart Grid Team

4 This testimony also sponsors the ongoing funding of the cost center for the
5 Smart Grid Team. This small group of individuals: a Director, Chief Engineer, Lead
6 Architect, Policy Manager, Customer Manager and Administrative Associate; are
7 responsible for developing SDG&E’s Smart Grid strategy and policy. The organization
8 is responsible for aligning the strategy and policy across SDG&E.

9
10 Table TOB - 4
11 O&M Non-Shared Services
12 (Thousands of 2009 dollars)
13
SMART GRID
A. Smart Grid Electric Distribution 2009 Adjusted- TY2012 Change
Recorded Estimated
1. Smart Grid Electric Distribution 330 1,003 673
Total 330 1,003 673
14
15
16 B. Discussion of O&M Activities

17 1. Smart Grid Team Salaries and Benefits

18 This funding covers the salaries and incidental O&M expenses of the Smart
19 Grid Team. This small team was first formed in 2009 as a result of the significant
20 activities at both the Federal and State level with regards to Smart Grid. It was
21 recognized that with Federal legislation and the DOE driven activity in this area that a
22 team was required to specifically focus on this topic; driving SDG&E’s strategy and
23 vision in this important area. As a consequence, in June 2009, a Director, Chief
24 Engineer, Lead Architect and an Administrative Associate were brought together to
25 begin work. In 2010, a Policy Manager and Customer Manager were also brought into
26 the team completing the staffing goals.
27 The team spent most of 2009 developing a SDG&E strategy and vision and
28 subsequently communicating both internally and externally. The Commission’s Smart
29 Grid Rulemaking was also underway at this time and the team participated in


1 workshops and commented on Commission questions. The DOE released its funding
2 opportunity notice for Smart Grid and the team spent the summer developing proposal
3 for both the investment grant and regional demonstration solicitations.
4 In 2010 the work on the Smart Grid OIR continued with a decision being
5 released regarding the implementation of SB17. Work has also begun to deliver the
6 SDG&E Smart Grid vision and roadmap by the required July 1, 2011 deadline. The
7 team directed SDG&E’s effort in the EPRI-led California utilities Smart Grid 2020
8 Vision activity in response to the CEC solicitation of the same name. An internal
9 stakeholder effort also occurred to align and drive SDG&E’s strategy and policy across
10 the organization.
11 Future work activities will include the SB17 mandated yearly updates to
12 SDG&E’s Smart Grid roadmap, responding to other Commission rulings, other pending
13 legislation and driving Smart Grid solutions to system problems to name but a few
14 activities.
15

16 III. CAPITAL

17 A. Introduction

18 This project portfolio incorporates Smart Grid technologies into the electric system
19 infrastructure with a goal of maintaining and/or improving system performance and operational
20 flexibility and reliability. As the penetration levels of renewables and electric vehicles increase
21 relative to the local load on the system, they are expected to impact system operations and
22 reliability and this portfolio will provide implementation of effective measures to mitigate
23 these impacts. Relative to infrastructure expansion, projects that involve building completely
24 new large scale elements of the distribution system such as new substations and new circuits
25 shall be designed with a perspective that strives to incorporate Smart Grid concepts and
26 equipment where applicable.
27 This project portfolio also integrates with system improvement work being done to
28 further reduce the fire threat in the overhead electric system located in the very high/extreme
29 fire threat zone. As discussed in the testimony of Mr. Alan Marcher, Exhibit SDG&E-06, this
30 system hardening work provides a unique opportunity to incorporate Smart Grid elements to
31 achieve the most overall effective and superior solution. Smart Grid and the fire hardening


1 projects are particularly synergistic as the projects can be designed with a goal of providing
2 more operational flexibility, improved reliability and at the same time further reduce fire risk.
3 Smart Grid sensor technology, advanced system monitoring and control features can be
4 integrated into the operation of the system which is especially valuable during storms and
5 extreme fire risk weather events. In addition to maintaining and/or improving reliability, the
6 circuit hardening work with Smart Grid technologies should facilitate integration of distributed
7 energy resources such as solar and wind, as well as energy storage for back up of important
8 community infrastructure such as cell phone networks, communications devices and small
9 water pumps used to supply drinking water and fill small storage tanks that otherwise may lose
10 power during extreme conditions. This project portfolio should provide the ability to
11 incorporate technologies that can keep more customers and critical infrastructure safely in
12 service during extreme fire risk weather events as well as during storm periods and times when
13 the electric system is stressed due to high operating loads or operational emergencies.
14 The Smart Grid portfolio is divided into four principal categories. These are Renewable
15 Growth, Electric Vehicle Growth, Reliability and Smart Grid Development. Individual
16 projects comprising the portfolio are grouped into these categories:
17
18 RENEWABLE GROWTH
19 Energy Storage (ES)
20 Dynamic Line Ratings
21 Phasor Measurement Units
22 Capacitor SCADA
23 SCADA Expansion
24 ELECTRIC VEHICLE GROWTH
25 Plug-in Electric Vehicles
26 These costs are incorporated in the testimony of Mr. Alan Marcher, Exhibit SDG&E-06.
27 Smart Transformers
28 Public Access Charging Facilities
29 RELIABILITY
30 Wireless Faulted Circuit Indicators
31 Phase Identification
32 Condition Based Maintenance (CBM) Expansion


1 SMART GRID DEVELOPMENT
2 Integrated Test Facility
3
4 CAPITAL SUMMARY REQUEST
5
6
7 Table TOB - 5
8 Capital Expenditures
10
2009 2010 2011 2012
Category Description Recorded Estimated Estimated Estimated
1. Smart Grid Portfolio $0 $0 $36,568 $57,269
Total Capital: $0 $0 $36,568 $57,269
11

12 B. Capital Request Detail

13 1. Renewable Growth: Energy Storage (Budget Codes: 10261)

14 A cost forecast is provided for two types of energy storage systems to assist in
15 addressing intermittency issues created by the variable output of renewable energy
16 resources. One solution will place distributed energy storage systems on circuits with high
17 penetration of customer photovoltaic systems. Additionally, energy storage systems will be
18 strategically located in substations to mitigate the impact of multiple circuits with PV as the
19 second budget item.
20 Energy storage systems will be used to demonstrate the ability to enhance the value
21 of energy from renewable distributed generation in at least two fundamental ways:
22 minimize the intermittency problem of renewables by installing storage and if appropriate
23 and possible, use storage so that electric energy generated during times of lowest system
24 need can be “time-shifted” and used during time of greatest need to the electric system.
25 As the penetration of distributed energy resources, DER, continues to increase, the
26 need for distributed storage will also increase in order to mitigate intermittency problems at
27 the local 12 kV feeder level. This project will install energy storage in two forms: 1)
28 distributed storage in the form of community energy storage, CES, devices in those circuits
29 where the penetration of PV is 20% or more of the circuit load at times of high photovoltaic


1 system output and low circuit loads and 2) substation energy storage of utility scale, size
2 anticipated to be 1 MW or greater, which will be installed to mitigate the effects of utility
3 scale (up to 2 MW) PV projects that will be installed in various locations.
4 Energy Storage, installed in conjunction with the appropriate sensors, control and
5 communication systems should provide a solution for the mitigation of intermittency via the
6 management and discharge of stored energy in a controlled and coordinated way.
7 Based on the historical and forecasted penetration of distributed PV in the SDG&E
8 service territory, CES devices, which are small, 50 kW batteries will be installed on 11
9 circuits in 2011, and on 14 more circuits in 2012. In addition to the CES devices, substation
10 energy storage amounting to 4 MW will be installed in 2011 and another 4 MW will be
11 installed in 2012.
12

13 Table TOB - 6
14 Renewable Growth, Energy Storage Capital Expenditures
16
Description 2009 Adjusted 2010 2011 TY2012
Category 1 $0 $0 $25,193 $29,790
17

18 2. Renewable Growth: Dynamic Line Ratings (Budget Codes: 10261)

19 A cost forecast is provided for implementation of dynamic ratings for distribution
20 circuits. The implementation of dynamic line ratings has the potential for increasing circuit
21 capacity and accommodating new renewable generation.
22 Dynamic ratings of equipment provide an opportunity to optimize capital
23 investments and operate the grid at higher efficiencies. Dynamic line ratings compare the
24 weather-adjusted, thermal rating of a conductor against the static design rating. The pre-
25 calculated static value for the thermal rating of a conductor is developed to protect the
26 conductor from damage due to annealing and from excessive sag during extreme heat.
27 This project will install dynamic line rating technologies on ten distribution circuits
28 per year. Installations will be made on the most critical distribution circuits which include
29 those circuits with significant renewables penetration and energy storage. Sensors on
30 overhead distribution lines will be used to monitor the line conductor tension and determine


1 ground clearances and weather conditions to calculate the amount of current that can be
2 transmitted in real time. This information is then provided to system operators or engineers
3 for their use in safe, reliable and economic system operation. By monitoring wind speed,
4 conductor tension and solar heating, a real-time line rating that is indicative of current
5 conductor capability can be calculated. An advanced human interface will also be
6 developed to assist system operators with managing the information.
7 SDG&E has 995 distribution circuits, and high loading is anticipated on 1% of
8 circuits that will warrant close monitoring and dynamic line rating. Installing dynamic line
9 rating technology on 10 distribution circuits per year will result in the following cash flow.
10
11 Table TOB - 7
12 Renewable Growth, Dynamic Line Ratings Capital Expenditures
14
Category 1 $0 $0 $1,963 $1,963
15

16 3. Renewable Growth: Phasor Measurement Units (PMU) -
17 Synchrophasors (Budget Codes: 10261)

18 A cost forecast is provided for implementation of phasor measurement units on the
19 electric distribution system. Installation of phasor measurement units on the electric
20 distribution system are expected improve reliability by employing high speed, time
21 synchronized measurement devices. These devices will be utilized in conjunction with
22 energy storage devices to create a closed loop control system to mitigate the impact of
23 intermittent renewables. Phasor measurement technologies are a leading example of a new
24 generation of advanced grid monitoring technologies that rely on high speed, time-
25 synchronized, digital measurements.
26 Phasor measurement technologies will help mitigate the intermittency issues
27 associated with distributed renewables by employing high-speed, time-synchronized
28 measurement devices installed in substations and at key points on the distribution system.
29 Using time stamped, digitized waveform measurements, SDG&E can analyze the output of


1 PV systems, indentify changes in PV output and enable the dispatch of energy storage
2 devices to counteract the effects of the PV output fluctuation.
3 Phasor measurement technologies are also needed for understanding potential
4 problems with the grid and are therefore a key component of a stable, self-healing grid. As
5 the penetration of renewables increases, there will be increased voltage and phase-angle
6 fluctuations at various points on the system. PMU data can equip system operators with
7 better real-time information about actual operating margins so that they can better
8 understand and manage the risk of operating closer to the operating limits. Specifically,
9 some of the functionality enabled by PMU technologies include:

10 • monitoring and visualization for improved control room operations
11 • wide-area control and protection
12 • power system restoration
13 • time-synchronized, waveform measurements.
14
15 This project calls for the installation of PMU equipment on 11 distribution circuits
16 with a high penetration of PV: 4 circuits in 2011 and seven circuits in 2012. The equipment
17 will be installed at points on the circuit where there is significant aggregation of PV
18 systems. Additionally, a Phasor Data Collector (PDC) will be installed at each substation.
19 An assessment tool will be developed to provide the ability to record, archive, analyze and
20 display phasor data. The interconnection and link of PMUs into a network will bring time-
21 synchronized data to a central location to create a wide-area view of the grid.
22

23 Table TOB - 8
24 Renewable Growth, Phasor Measurement Units Capital Expenditures
26
Category 1 $0 $0 $1,475 $2,581
27

28

29


1 4. Renewable Growth: Capacitor SCADA (Budget Codes: 10261)

2 A cost forecast is provided to implement SCADA control of all capacitors on
3 SDG&E’s distribution system and is distinct from the SCADA expansion for switches
4 discussed below. Benefits of SCADA for capacitors should include: better voltage and VAr
5 control, reduced maintenance, and better system diagnostics. When coupled with energy
6 storage, dynamic line ratings and phasor measurements new control schemes can be
7 implemented which will mitigate the impact of PV system output fluctuations on system
8 voltage.
9 SDG&E has been using SCADA (Supervisory Control and Data Acquisition)
10 controlled devices in various types of equipment for many years. SCADA controlled
11 capacitor banks will provide local and remote control, failure prediction and detection,
12 reduced operating cost, and should enhance distribution system performance through
13 improved voltage and reactive power control. As certain elements of Smart Grid evolve,
14 including less predictable DER, the ability to dynamically adjust reactive power flow will
15 become more critical. Presently, SDG&E discovers capacitor issues during the annual
16 capacitor survey or through customer voltage problems. SCADA controlled capacitors will
17 provide SDG&E the ability to be proactive in capacitor maintenance, instead of reactive.
18 Furthermore, SCADA control will provide a faster and more economical way to update the
19 software and to adjust control settings.
20 Installing SCADA on capacitor controllers will yield the following capabilities:

21 SCADA controls offer the ability to over-ride automatic controls of the bank to
22 adjust voltage or reactive support to the distribution system. Reprogramming capability may
23 reduce the need for future field visits by line personnel.

24 • SCADA controls can alert utility personnel of capacitor failures and/or
25 fuse operations. This will increase capacitor bank reliability, minimize
26 downtime, and expedite repair work.
27 • SCADA controls may be used to help facilitate the annual Capacitor
28 Survey for those sites that are on SCADA.
29 • SCADA provides for remote monitoring of the status of the control
30 devices for the bank.


1 • SCADA controls provide monitoring of all power system parameters
2 (i.e. voltage, current, reactive power, real power, power factor, etc…)
3 associated with the capacitor bank. This provides a key diagnostic tool
4 when power quality concerns arise. This is becoming more critical, as
5 the digital economy demands a higher level of power quality.
6
7 • Improved voltage and reactive power control to mitigate the impact of
8 distributed PV.
9
10 At this time there are 1,404 capacitors in the SDG&E service territory, 959 are
11 overhead capacitors and 445 are underground capacitors. The cash flow below reflects
12 adding SCADA to all these capacitors over a seven year period with the majority of work
13 taking place over the 2011-2016 period.
14
15 Table TOB - 9
16 Renewable Growth, Capacitor SCADA Capital Expenditures
18
Category 1 $0 $0 $2,902 $2,902
19

20 5. Renewable Growth: SCADA Expansion (Budget Codes: 10261)

21 A cost forecast is provided for expansion of SCADA to expand remote operability
22 and automated operation of distribution SCADA capable switches. This will continue
23 SDG&E’s goal of providing faster isolation of faulted electric distribution circuits and
24 branches, resulting in faster load restoration and isolation of system disturbances.
25 This project provides funding for the installation, upgrades, and expansion of the
26 Supervisory Control and Data Acquisition (SCADA) system at substations and on
27 distribution circuits through the addition of automated switches. SDG&E’s radial, open-
28 loop distribution circuit design philosophy incorporates 1.5 SCADA switches per circuit:
29 one at the midpoint, and one at a strong tie. This design philosophy improves system
30 reliability while avoiding a full network design.


1 As the penetration of distributed renewables increases on the distribution system,
2 this SCADA expansion will allow SDG&E to re-configure circuits. By automatically re-
3 configuring circuit the amount of PV and load can be balanced to better accommodate areas
4 of high PV penetration.
5 This will be incremental to work being done on existing budgets. In addition, to
6 fully realize the functionality of the line SCADA, the associated feeding substation needs to
7 be on SCADA as well. The scope of work required to achieve the capabilities above will
8 require installation of SCADA at 13 substations serving 76 circuits, and 281 SCADA
9 switches on circuits that lack SCADA line or SCADA tie switches. The cash flow below
10 reflects this scope of work being implemented over a five year period from 2012-2016.
11 Expenditures are expected to begin in 2012 as shown below.
12

13 Table TOB - 10
14 Renewable Growth, SCADA Expansion Capital Expenditures
16
Category 1 $0 $0 $0 $5,964
17

18 6. Electric Vehicle Growth: Plug-In Electric Vehicles

19 This is project is required to upgrade primary and secondary voltage infrastructure to
20 accommodate the rollout of electric vehicles in San Diego County in the 2010, 2011 and
21 2012 timeframe. Transformers, secondary and primary conductors associated with
22 customers who participate in the Nissan Leaf and Chevrolet Volt rollout will be evaluated
23 for adequate capacity. If upgrades are required, they will be covered as part of this project.
24 These costs are incorporated in the testimony of Mr. Alan Marcher, Exhibit SDG&E-06.
25 Large numbers of PEV’s (both battery electric vehicles and plug-in hybrid electric
26 vehicles) are estimated to interconnect to the SDG&E grid over the next 10 years, requiring
27 improvements to the electric distribution system. This may also create opportunities in the
28 future to use PEVs as distributed energy resources by discharging their batteries into the
29 grid during times of system resource needs or economic benefit. The upgrade of services
30 and transformers resulting from residential PEV impacts to the grid occurring over the next


1 3 years (2010-2012) are included in associated capital projects of Mr. Alan Marcher as
2 mentioned earlier. Therefore the costs being included on this Smart Grid capital project
3 associated with impacts due to PEVs, in post test years, will cover distribution feeder
4 upgrades and infrastructure for larger public charging stations. The cost estimates for this
5 timeframe are based on a projection of 8300 residential charging stations and 328 public
6 charging stations
7

8 7. Electric Vehicle Growth: Smart Transformers (Budget Codes: 10261)

9 A cost forecast is provided for the installation of sensors and technology on
10 distribution transformers so that they can monitor and report loading, and the state of the
11 transformers. This project has the potential to allow increased transformer capacity
12 utilization and accommodate future loads such as plug-in electric vehicles.
13 Distribution line transformers can be converted into smart devices by installing
14 monitoring equipment on the secondary bushings. These monitors will provide information
15 to engineers and operators about the state of the grid including distributed resources and
16 loads at the location of the transformers. This data will be especially valuable for
17 monitoring the load and condition of transformers feeding plug-in electric vehicles. It will
18 also provide information about the state and condition of the transformer. Transformer
19 monitors will facilitate dynamic ratings for the transformers, the ability to verify energy
20 consumed or generated by new distributed resources or loads for potential management
21 applications, and the ability to assess detailed transformer conditions in order to proactively
22 troubleshoot customer or secondary voltage problems.
23 This project will install transformer monitoring devices on all transformers serving
24 customers with plug-in electric vehicles. Sensing devices attached to transformers will be
25 used to monitor real-time loading and establish accurate load profiles. This information will
26 be available to system operators to alert them to possible overloads, imbalances, voltage
27 excursions or other operational issues. Additionally, engineers will use this information to
28 revise transformer loading guidelines which may lead to optimizing the number of
29 customers that may be served from an individual transformer and reducing transformer
30 loading problems.


1 One transformer monitoring device will be installed on each distribution transformer
2 that serves a customer with a PEV and associated charge stations. The number of PEV
3 charge stations is anticipated to be:
4
5 Table TOB - 11
6 PEV Charging Stations
7
Year: 2010 2011 2012 Total
PEV Charge Stations: 600 2150 700 3450
8
9 This estimated number of charge stations is based on the expected sales of battery
10 electric vehicle and plug-in hybrid electric vehicle sales in the San Diego area. This
11 estimate is based upon a DOE sponsored program with partnership by ECOtality and Nissan
12 to deploy up to 5,000 electric vehicles and charging infrastructure in San Diego and four
13 other U.S. cities.
14

15 Table TOB - 12
16 Electric Vehicle Growth, Smart Transformers Capital Expenditures
18
Category 1 $0 $0 $2,047 $521
19
20 8. Electric Vehicle Growth: Public Access Charging Facilities (Budget
21 Codes: 10261)

22 A cost forecast is provided for the installation of utility-owned, public access
23 charging facilities for electric vehicles. SDG&E will install and own the charging facilities
24 in under-served areas in order to broaden the coverage of public charging opportunities
25 within its service territory. This effort will allow SDG&E to continue the momentum of the
26 stakeholder charging facility siting and installation process established by ECOtality as part
27 of their government funded EV Project between 2010 and mid-2011. As planned, this
28 project will increase the number of charging facility services offered by 3rd parties,
29 specifically to provide PEV charging facilities in locations that are not necessarily


1 commercially or economically desirable, but needed to serve the broader and growing PEV
2 charging needs of the public.
3
4 Charging Facility Site Selection
5 SDG&E will work with the CPUC to develop broad criteria for evaluating the installation of
6 “public access charging facilities” with the objective to ensure a network of public charging facilities
7 is developed in the public interest over time that would provide sufficient support for the adoption and
8 use of PEVs.
9 As part of the selection process, SDG&E will use an independent entity to assist in the
10 development of site evaluation criteria to be used in a regional stakeholder charging facility site
11 selection process. The process will be led by an independent coordinating entity, such as the San
12 Diego Association of Governments, SANDAG. SDG&E will adapt the process that has been
13 successfully implemented in the deployment of charging facilities by ECOtality, under an ARRA,
14 DOE grant.13 Once ECOtality completes the charging facility installation portion of their EV Project
15 by mid-2011, SDG&E will continue to play a role in working with stakeholders to help determine the
16 location of the charging facilities that will have the least cost, least impact to the electric distribution
17 system. SDG&E will implement this service as part of a long-term process to extend the deployment
18 of public charging facilities as the growth of PEVs continues.
19 To support the development of electric vehicles and to engender the broad public benefits this
20 yields (lower GHG and other harmful emissions, improve local air quality, less reliance on foreign
21 oil), SDG&E will play an important role during the formative years of market development to ensure
22 that electric charging infrastructure develops which can support the rapid adoption of plug-in electric
23 vehicles. Also, because of their limited range, in order to foster market acceptance of these vehicles, a
24 seamless network of charging facilities will be needed. In order to ensure that this network of
25 charging infrastructure does not have significant voids, SDG&E proposes these "public interest"
26 charging facilities.
27 As a result of the development of a more robust availability of charging facilities, this effort
28 will also help to stimulate market growth for PEV related services and equipment in general, and
29 specifically in under-served areas. Although SDG&E will own these charging facilities, it will also
30 contract with 3rd parties to build, operate and maintain the charging facilities. This approach will help

13
http://www.ecotalityna.com/pdf/100109_eTec_DOE_Contract.pdf


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