2. Topics Who is Bridge Energy Group Big Picture Background on Smart Grid Quick Background on U.S. Electric System & Policy What does SG mean for consumers? What Does SG Mean for Society? The Ethics of Dynamic Pricing 8/19/2010
8. Currently working on many Smart Grid ProjectsBRIDGE is Not Aligned with any Tool, Product or Technology Vendor Advantage: BRIDGE works for the client’s cause. BRIDGE coordinates as neutral third party with all vendors without conflict of interest. BRIDGE will be Your Trusted Advisor and Implementation Partner. 8/19/2010
9. What is Smart Grid? Perhaps an unfortunate descriptor for it implies that the current grid is dumb In reality it is the sum total of many components Think of it as the digital automation of the electric grid Enhanced operational control Consumer empowerment 4
10. Implementation of Smart Grid Hard Assets- Meters, Switchgear, Communications and Data Consolidation Systems Human Element- Adaptation to New Technology and Business Process Change 5
11. Evolution of Smart Grid For Grid Operations Earlier stages included SCADA, substation automation On the meter/consumer side TOU pricing dates back to the 1970’s Direct load control with hot water heaters In the past decade Utility and RTO Demand Response Programs 6
12. Cautions of Smart Grid Uniform Standards Not Yet a Reality Integration a real Challenge, Legacy IT, Tremendous Amounts of Data Disruptive to Traditional Utility Business Model Challenges Longstanding Regulatory Policies 7
13. The Traditional Regulated Utility Bundled Investment Made on Behalf of Consumers & Society Investment in Long Lived, Predictable Assets Retail Rates Expected to be Stable Utilities Manage a Centrally Controlled Network Utility Planners Focus on Stability and are Responsible for Reliability 8
14. The National Electric System Historically Central Station Driven Since Restructuring Focused on a National Transmission Superhighway Top Down Resource Planning via Utilities, Regulators and RTO’s Since 2003 Blackout Accountability for Reliability Raised Significantly 9
15. National Energy Policy Modern Foundation a Response to 1970’s Oil Embargoes PURPA in 1978, Efficiency & Resource Diversity (Beginning of “Renewables”) EPAct 1992 Increased Emphasis on EE, Launch of EWG’s, Seeds of Restructuring Since 2000 Increased Emphasis on Environmental Attributes, Climate Change BUT, Most Solutions are Instituted via Mandates to Utilities 10
17. Peak Demand Drives Capacity Need Since 2003 Blackout Heightened Emphasis on Reliability NERC Standards Now Enforceable with Real Financial Penalties for Non-Compliance N-2 is the Standard, if Load Growth Reaches a Critical Point Investment Has to be Made Consumers and Macro Economy Bear the Cost 12
18. What Does SG Mean for Consumers? Price Responsive Demand for the Masses Fair & Efficient Rate Design Dynamic Pricing Reduces Inherent Cross Subsidies in Today’s Rate Designs Opportunity to Save on “Total Energy Bill Via Dynamic Pricing Collectively Drive Higher Capacity Utilization Enhanced Operational Efficiency & Quality of Service Remote Connect/Disconnect Means No Waiting Around for the “Utility Guy” 13
19. What Does SG Mean for Consumers? Distributed Generation on a Grand Scale Operational Efficiencies Reduce Cost to Serve Enhanced Grid Reliability Much Greater Connection to and Understanding of Energy Use 14
20. What Does SG Mean for Society? Environmental Goals Finally Achievable at Scale Reduction of Carbon Via Electric Vehicles & Space Heat, geo-thermal Reduced Utility Truck Trips Enhanced Integration of Renewables, Utility and Distributed Scale Enhanced Grid Reliability 15
21. Dynamic Pricing the Answer to Peak Demand Pilot Efforts Have Shown Reduced Demand with Just Information Alone Dynamic Pricing Introduces a Real Price Signal that Reflects True Cost to Serve Customers Can Shift Usage and Add Usage to Off-Peak Periods 16
24. Final Thoughts SG is a Suite of Enabling Technologies to Empower Consumers and Utility Managers Peak Demand Costly to Consumers & Society Established Regulatory Regime not Economically Efficient 19
25. Final Thoughts Consumers Currently Paying for Policy Mandates More Electricity Use Can be a Good Thing 20
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29. “Rethinking ‘Dumb’ Rates, Achieving the Smart Grid’s Potential Requires a Revolution in Electricity Pricing.” Rick Morgan, Public Utilities Fortnightly, March 2009.http://www.fortnightly.com/exclusive.cfm?o_id=158 22
30. Questions ? David J. O'Brien Director of Regulatory Strategy & ComplianceBRIDGE Energy Group Inc. 508.281.7133 x210 | M: 802.522.0917 DOBrien@bridgeenergygroup.com www.BridgeEnergyGroup.com
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34. “Rethinking ‘Dumb’ Rates, Achieving the Smart Grid’s Potential Requires a Revolution in Electricity Pricing.” Rick Morgan, Public Utilities Fortnightly, March 2009.http://www.fortnightly.com/exclusive.cfm?o_id=158 25
35. Questions ? Tony Giroti Chairman & CEOBRIDGE Energy Group Inc. 508.281.7133 TGiroti@bridgeenergygroup.com www.BridgeEnergyGroup.com
Editor's Notes
18 years in Information Technology; focused network engineering, application, system and security implementation, program and project management12 years in program and project management roles supporting infrastructure deployment, application development and delivery, large-scale technology deployment/transition, and process development5+ years in the ISO/RTO business delivering projects and consulting in program and project management development and process definition
18 years in Information Technology; focused network engineering, application, system and security implementation, program and project management12 years in program and project management roles supporting infrastructure deployment, application development and delivery, large-scale technology deployment/transition, and process development5+ years in the ISO/RTO business delivering projects and consulting in program and project management development and process definition