Jerry Shoemaker Manager, Smart Grid PMO February 20, 2014
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1 PHI s Smart Grid Program Management Approach Lessons Learned Jerry Shoemaker Manager, Smart Grid PMO February 20, 2014
2 2 Acknowledgement "This material is based upon work supported by the Department of Energy under Award Numbers: DE-OE000300, DE-OE , DE-OE Disclaimer: "This report was prepared as an account of work sponsored by an agency of the United States Government. Neither the United States Government nor any agency thereof, nor any of their employees, makes any warranty, express or implied, or assumes any legal liability or responsibility for the accuracy, completeness, or usefulness of any information, apparatus, product, or process disclosed, or represents that its use would not infringe privately owned rights. Reference herein to any specific commercial product, process, or service by trade name, trademark, manufacturer, or otherwise does not necessarily constitute or imply its endorsement, recommendation, or favoring by the United States Government or any agency thereof. The views and opinions of authors expressed herein do not necessarily state or reflect those of the United States Government or any agency thereof." 2
3 3 Smart Grid Project Management Office (PMO) Agenda Overview of PHI Grants & Projects Where we stand today/status Management Approach Lessons Learned
4 4 Pepco Holdings Atlantic City Electric Customers: 545,000 Headquarters: Mays Landing, NJ Delmarva Power Customers: 500,000 (Electric) 130,000 (Natural Gas) Headquarters: New Castle Region - Wilmington, DE Bay Region - Salisbury, MD Pepco Customers: 753,000 Headquarters: Washington, DC
5 5 PHI SGIG Awards Summary Company/Regions AMI DLC DA CI Total Project Costs DOE Funding Pepco Maryland $137.7 $51.4 $15.0 $ 5.5 $209.6 $104.8 Pepco District of Columbia $ 68.2 $ 7.1 $ 9.1 $ 4.8 $ 89.2 $ 44.6 AtlanKc City Electric NA $13.4 $17.0 $ 7.0 $ 37.4 $ 18.7 Smart Grid Workforce Training Grant NA NA NA NA NA $ 4.4 Total $205.9 $71.9 $41.1 $17.3 $336.2 $173.5 PJM Syncrophasor $ 1.4 $ 0.7 $ Are in millions
6 6 Smart Grid inidadves are accelerated through DOE funding Pepco- DC Pepco- MD ACE- NJ - 280,000 smart meters - 20,000 DLC devices - 17 ASR schemes - Dynamic pricing - Enabling comms - 570,000 smart meters - 168,000 DLC devices - 62 ASR schemes - Dynamic pricing - Enabling comms - 25,000 DLC devices - 20 ASR schemes Capacitor banks - Enabling comms Total Cost DOE Funded $89.2M $209.6M $37.4M $44.6M $104.8M $18.7M Impacts on PHI Acceleration of installation of meter and thermostats Acceleration of benefit for customer to manage their energy use Modernization of the electric system to reduce outages, better manage the operation of the system and reduce losses
7 7 Solar Energy & CFLs reduce the need to run power plants More Information on Your Energy Usage More Efficient Appliances Direct Load Control programs reduce peak demand use Smart Meters that Improve Service and Reliability Utility pole collectors A New transmit Wave data of between Electric customer Vehicles and utility Smart Thermostats That Automatically Save $$$ Customers will have online energy information Greater Access to Energy Information Smart appliances will reduce peak demand and help lower energy prices A Stronger, More Reliable & Interactive Grid
8 8 PHI Structure & Management ExecuDve Leadership Team (ELT) Blueprint Steering CommiYee Project Management Office Twice a month OperaDonal & Strategic Risk>Schedule>Budget Benefit RealizaDon Design Authority DA and CI AMI DSM Federal SDmulus CoordinaDon DLC Dynamic Pricing Finance Legal and Audit Corporate CommunicaDons Government and Regulatory Affairs PHI- Wide Cross- FuncDonal Support of ImplementaDon Effort Asset Management, OperaKons, Strategic Services, IT, Corporate CommunicaKons, PS&HR, Finance & Regulatory
9 9 District of Columbia Prime Recipient Name POTOMAC ELECTRIC POWER COMPANY Project Name Award Number District of Columbia Smart Grid Program OE Total Cost $89,161, Federal Share $44,580, Private Share $44,580, Award Date 04/05/2010 Start Date 04/05/2010 Percentage of Federal Share 0.50% AMI Meters 270,000 End Points 60 Repeaters 375 Direct Load Control Devices 20,000 ASR Schemes 3 ASR Feeders 19 SecKonalizing Switches 51 Network Transformer Protector Monitors 41 CommunicaKons Infrastructure in the process of installing mesh radios, base stakons, and subscriber radio units
10 10 District of Columbia Prime Recipient Name POTOMAC ELECTRIC POWER COMPANY Project Name District of Columbia Smart Grid Program Award Number OE Total Cost $89,161, Federal Share $44,580, Private Share $44,580, Award Date 04/05/2010 Start Date 04/05/2010 Percentage of Federal Share 0.50% 3/2013 Forecast Projects: Advanced Metering Infrastructure Direct Load Control DistribuKon AutomaKon CommunicaKons Wireless Infrastructure ExperienKal Design (CMU) 10
11 11 Lessons Learned Smart Grid implementadon involves the most significant technology transformadon since the grid was first created: EducaKon and training of workforce Integrated Plan / success of the Program MulK- year projects are evolukonary Successful implementakon can only be achieved by understanding the impact on all aspects of the business Benefits RealizaKon Approach to Risk 11
12 12 Risk management approach Con$nuous, not as a one- $me only ac$vity during the planning of the project. PMO should analyze risks on an ongoing basis to deal with changing condi$ons and priori$es on the project.
13 13 Risk Framework Monitor and Control Determine effectiveness Re-assess Corrective Action Identification RBS/Categories, SWOT Assumptions & Constraints Network Diagram Large Projects High Criticality Very Complex Projects Integrated Plans /Critical Path Scalable for all Projects in the PMO Blueprint Integration Response Avoid, Mitigate, Transfer Exploit, Enhance, Share Accept Analysis Qualitative Quantitative Small Projects Low Criticality Very Basic PMO Project Management Office SWOT Strengths, Weaknesses, OpportuniKes, Threats RBS Risk work breakdown structure PHI conforms with Project Management InsKtute standards which FERC and DOE have adopted
14 14 Scoring Matrix Probability x Impact = Exposure
15 15 Jobs Created 558 Full Time Equivalents CumulaDve Jobs As of Q AtlanKc City Electric 3.9 Pepco Maryland District of Columbia 205.8
16 PHI s Smart Grid Program Questions / Comments Thank you Jerry Shoemaker Manager, Smart Grid PMO February 20, 2014
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