Assessment of Smart Grid Applications for the City of Palo Alto City of Alameda Public Utilities Board September 19, 2011 1
Introduction Shiva Swaminathan Sr. Resource Planner City of Palo Alto Utilities Tom Ting Sr. Electric Project Engineer City of Palo Alto Utilities Presenting a Palo Alto perspective on Smart Grid (other Utilities and Cities may be different) 2
Presentation Outline What is Smart Grid & Applicability to Palo Alto Background on the City of Palo Alto Process of Assessment Consultant Findings Consultant Recommendations Summary of Effort to Date 3
What is Smart Grid? Source: EPRI Generation Transmission Distribution Customer Shared Information Continuously Optimizing Intelligent Responses! 4
Smart Grid & Applicability to CPAU Sensing, communicating, and managing data related to generation, transmission, distribution, and retail customer systems to allow for real time monitoring and response of electric systems. Palo Alto focus is on distribution and retail customer systems Palo Alto focus to include electric, gas, and water systems 5
City of Palo Alto, California Area 26 square miles (67 km²) from San Francisco Bay to Skyline Boulevard along the top of the Pacific Coast Range Population 62,000 29,000 Utility customers 75% Residential; 20% Commercial; 5% Industrial 72,000 meters 28,900 Electric; 23,400 Gas; 19,700 Water 6
Palo Alto owns and operates five utility services: Water - 1896 Wastewater - 1898 Gas - 1917 Fiber - 1996 Electric - 1900 7
Scope of Assessment Consultants with current and relevant industry experience hired in March 2010 Scope of Assessment Identify Smart Grid Applications relevant to CPAU Map Information Flows between Utility Systems Model Smart Grid Costs and Benefits Review Communication Methods Prepare Implementation Cost-benefit Analysis Prepare Report on Findings and Recommendations 8
Process of Assessment Follow EPRI IntelliGrid Process for Assessment Hosted CPAU wide Smart Grid Workshops Defined CPAU Strategic Goals and Objectives Efficient Use of Energy and Water Supplies Enhanced Customer Experience and Empowerment Improve Distribution System Reliability and Power Quality Improve Asset Utilization Reduce Management and Administration Costs Improve Utility Operations Improve Environment: Integrate Renewable and Enable Electric Transportation Enhance Revenue 9
Smart Grid Framework 10
Results and Findings Three smart grid applications relevant to CPAU. Advanced Metering Infrastructure (AMI) Advanced Distribution Systems including Distribution Automation (DA), Enhanced customer energy use monitoring systems Home area networks, in-home displays, building energy management systems, etc. Enhanced customer engagement for optimal use of energy and water supplies 11
Components of AMI Capital Expenditure - Initial Estimate ~ $15 million 12
30 AMI System Implementation: Cost & Benefit (millions of $, 20 Year Assessment, NPV) Cost of $29M & Benefit of $23M 25 20 20 Year O&M, 15.8 Reduced Energy Purch., 6.2 15 10 IT Integration & Software, 5.2 Avoided Capital Exp., 1.3 Demand Response, 2.3 Distribution Operations, 1.3 5 Network, 0.9 Installation, 2.1 Meter Reading Savings, 10.5 AMI Meters, 5.3 0 Customer Service, 1.4 Cost (NPV) Benefit (NPV) 13
Results & Findings (continued) Advanced Distribution Systems including Distribution Automation (DA) would more efficiently manage the distribution system Cost is about $3 million while benefit is estimated to be $2.7 million over 20 years Enhanced customer systems (in-home displays, building management systems, etc) Enhanced customer engagement leads to more efficient use of energy and water resources Requires customer investment in real-time usage displays and other building energy management systems Implementing AMI could lead to a higher degree of customer engagement: 14
Summary Present Systems Dial Up Elect. Wtr. Gas Handheld / Mobile / Self Reads Billing Determinants Bill Print Services Remittance Processing ITRON MV90 ITRON MVRS Premise Data NCPA / CAISO / PGE / Western AutoCad GIS SAP ISU / CCS Transaction DB Asset Mgmt. Spreadsheets Meter Links Customer Data BI SAP Reports IC Web Cust. Svc. Portal UCS Customer Facing Portal SAP Direct App. Interface 15
Summary Future 16
Future Possibility for Smart Grid and Municipal Communication Architecture 17
Consultant Recommendations Recommended tasks for the next 2 years Develop a robust gas and water meter maintenance and replacement plan Implement Time-of-Use rates and related metering infrastructure for EV owners to encourage off-peak charging Evaluate Demand Response by implementing pilot programs for large commercial customers Provide incentives to upgrade large customer BMS systems, and possibly undertake a smart meter pilot Learn from Distribution System current sensor project and develop a long-term Distribution System Automation road map Perform further analysis of potential Volt/Var energy conservation on the distribution grid Further review AMI backend software related cost (40% of the $15 million AMI implementation cost) 18
Consultant Recommendations Do not make any major smart grid investments at this time Smart grid related system deployment largely driven by regulatory mandates or spurred by government stimulus funds. Risk of early adoption outweighs the benefits for Palo Alto at this time. Technology standards will be finalized and technology/product lines mature in the next 2-3 years Costs will decline and benefits to Palo Alto will become more apparent. Effective implementation of smart grid applications requires: long-term planning sufficient resources to start the planning phase in earnest. 19
Consultant Recommendation - Suggested timeline 20
Current Activity CPAU is currently: In the process of finalizing the update to the gas and water meter replacement plan (Fall 2011) Participating in a CEC sponsored distribution feeder monitoring pilot (Spring 2012) Implementing a pilot summer DR program for large commercial customers (Fall 2012) Installing EV Charging station and developing EV charging policy (Fall 2011) Participating in statewide visioning exercise to develop a municipal utility smart grid 2020 (Fall 2011) Developing and implementing a TOU rate for Electric Vehicles (Spring 2012) 21