Smart Meter
Smart Meter
Smart Meter
Fine Tuning
Communications to
Educate Customers
about the Smart Grid
Western Energy
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CONTENTS
Western Energy
The Official Publication of
Western Energy Institute
SUMMER 2011
Tai Danforth
Managing Editor, Western Energy
Deston Nokes
Copy Editor, Western Energy
Chuck Meyer
President, Western Energy Institute
Cover photo: Brian Hoffman, Electric
Test Technician for GWP (City of
Glendale Water & Power), holding up a
new, GWP electric smart meter.
Photo top right: Glendale Water &
Powers New Storage Area Network
(SAN) is prepared to receive the large
amount of data AMI provides.
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Fine Tuning
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about the Smart Grid
Western Energy
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Full implementation
Integrating renewables
Business case
AMI
With over 80 years of energy experience, KEMA has the deep expertise required to guide you to the
Smart Grid from developing a business case to full implementation. In fact, our experts have worked
on some of the most complex Smart Grid solutions for top companies globally. And because our
people know the grid, KEMAs solutions are practical, geared towards optimizing the assets you have
now. Its Smart Grid for the real world.
PRESIDENTS LETTER
EDITORS COMMENT
Join the
Conversation
While there is a large residential component imagined for a future Smart Grid,
to date there has been significant pushback against that type of infrastructure.
Utilities still are going to have to make that case with their customers and
commissions.
What I believe is the more meaningful and important aspect of implementing a
Smart Grid, is the digitization of transmission and distribution networks. Projects
are underway to get away from analog systems, to make more data available
more quickly, and to have the digital capability to seamlessly identify and correct
system problems before they occur.
Utilities need to move into the 21st century with due diligence, and not get
bogged down or bothered by whats in the commercial press about Smart Grid.
This issue of Western Energy aims to look at the larger, more near-term Smart
Grid issues and technologies, which are essential for becoming Utilities of
the Future.
Sincerely,
Chuck Meyer
President
Western Energy Institute
Tai Danforth
Managing Editor
Western Energy Magazine
175
YEARS
402.873.0710
www.elster-americanmeter.com
FEATURE
10 questions
10
Questions to Ask
Before Starting a
Smart Grid Project
By Terry McDonald, PMP
example
meter installation
advisory services to
support design or
contracting
Start the training and hiring effort early. These are often
long, lead-time items. It also is important to engage with
unions early to establish a collaborative approach to both
the short-term and long-term changes needed.
Process change also means that people will be doing their
work in unfamiliar ways, which often results in resistance
to change. Change management efforts should be part of
the project plan from the outset. A dramatic change in
processes often means the old organizational structure
and the old roles and responsibilities are no longer
appropriate. This could result in turf battles and more
change-management challenges. The people dimension
of the project requires strong, persistent, and skilled
leadership.
What is the level of project maturity in your
organization?
Projects are the vehicle through which strategy
is deployed. A high level of project management
capability translates to successful projects and a
realization of strategic ambitions. Ensuring that you have
the right people, skills, tools and structure in place before
undertaking a major strategic project is a key success factor.
Smart Grid projects are different from other projects in
several important ways:
FEATURE
10 questions
10
cause a public relations nightmare that could stop a project in its tracks and have farreaching consequences. Only those utilities who are prepared to be extremely vigilant and
disciplined with regard to security and privacy should contemplate a Smart Grid project.
Technology enables processes. Which processes are you trying to improve,
and are you ready to do the process improvement work needed to extract
value from the technology?
Smart Grid software and hardware is only valuable if it enables processes that deliver
benefits important to the utility and its stakeholders. Business case development
should identify the type and magnitude of the benefits, while identifying the beneficiaries.
These benefits in turn need to be tied to process improvements that will deliver the
promised benefit. Process design and implementation can have significant effects on staffing,
organization, policies, and procedures.The work of designing and implementing new
processes is not trivial, and it should be understood from the outset and incorporated in
plans and budgets.
Extracting value means avoiding the inclination to pave the cow path by using advanced
technology to simply automate the old, manual way of doing business. Staying with the
familiar is both low risk and low reward. Starting with a clean sheet of paper and designing
elegant and efficient processes from the ground up carries the highest potential reward;
but it also requires specialized knowledge and skill, takes time, and involves risk.
Are you prepared to engage all of the varied stakeholder groups that either
will be impacted by the project or who will have an impact on the project?
Stakeholders include all people inside and outside the organization that either
will be impacted by the project or who could have either a positive or negative
impact on the project. Knowing who these stakeholders are, what their needs
and interests are, assessing the impact of the project on them, or considering the
impact they could have on the project requires time, effort and expertise. Opening
channels of communication with stakeholders and engaging them throughout the
project is critical.
10
With the answers to these 10 questions in hand, not only will you be embarking on
your project with eyes wide open, you will have laid the foundation for success.
Many thanks to my colleagues on the Linked In, Smart Grid Executive Forum for their contributions to this article. To reach the author,Terry McDonald, email tsmcdonald42@gmail.com.
POWER
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FEATURE
LEGAL ASPECTS
12
Further, a number of states have begun to investigate Smart Grid data privacy, data collection and third-party use policies;
and a few have actually implemented regulations. In September 2010, California enacted Public Utilities Code 8380,
which prevents utilities from sharing customer information with a third party without customer consent, unless the data
is aggregated and identity information has been removed.4 It also prevents utilities from selling customer information or
offering customers discounts to access their data without consent. Finally, if the customer chooses to disclose his or her
energy data to an unaffiliated third party, liability shifts from the utility to the third party once the data is transferred.5
Other states are just beginning Smart Grid regulatory analysis. Texas requires that consumers be able to access their
meter data taken every 15 minutes on an online web portal and prohibits the sale of customer-specific data.6 California,
Texas, Pennsylvania and Florida require consent before utilities can release customer information to a third party, even
in the absence of Smart Grid-specific legislation.7 Oregon, Colorado, Michigan and Louisiana utility commissions, among
others, have begun investigations related to Smart Grid privacy, data collection and its use.8 The Washington State
Utilities and Transportation Commission requires electric utilities to submit periodic reports regarding plans for Smart
Grid technologies.9 Washington already prohibits utilities from disclosing or selling, without customer consent, private
customer information to third parties for marketing purposes.10
describe the type of data collected and reasons for its use,
and not disclose data to third parties without customer
consent. However, there is broad agreement that utilities
should have access to CEUD for utility-related purposes,
such as managing the network, distributing energy, billing and
anonymous aggregation for reporting local profiles.
Even in the absence of Smart Grid-specific regulation,
regulations of more
general applicability
may apply to data
collection and usage
by utilities. The best
example of such
regulations may be
the Federal Trade
Commissions Fair
Information Practice
Principles (FIPPs),11
which were specifically cited in the DOE Data Access
Report as a potential source for privacy regulation in
the Smart Grid Context. The FIPPs encompass five core
principles of privacy protection:
L
A
I
T
N
E
D
I
F
CON
8 Public Service Co. of Colorado Supplemental Comments in Response to Decision No. C10-0175, In re
Investigation of Sec. & Privacy Concerns Regarding the Deployment of Smart-Grid Tech., No. 091593EG (Colo. Pub. Util. Commn Mar. 26, 2010); See Oregon Public Utilities Commission, Development
of Smart Grid Objectives and Action Items for 2010-2014, No. UM 1460 (Dec. 8, 2009), http://apps.puc.
state.or.us/edockets/docket.asp?DocketID=15928.
9 WAC 480-100-505.
10 WAC 480-90-153, 480-100-153.
11 See http://www.ftc.gov/reports/privacy3/fairinfo.shtm.
13
FEATURE
LEGAL ASPECTS
Access/Participation: Giving
consumers the ability to access
their data and to contest that datas
accuracy and completeness.
Integrity/Security: Securing
collected data, destroying old and
unnecessary data, and making data
anonymous.
Enforcement/Redress: Enforcing
standards through industry selfregulation, legislation, and other
regulations providing civil and
criminal penalties.
Section 5 of the FTC Act, which
applies to all industries, requires
companies to engage in fair privacy
practices.12 Therefore, the FIPPs
provide a good benchmark for privacy
practices in collection of data by
utilities.
14
12 See 15 U.S.C. 41-58.
13 See http://www.nist.gov/smartgrid/upload/nistir-7628_total.pdf.
14 Cal. Pub. Util. Code 394.4(a), 394.5.
15 Cal. Bus. & Prof. Code 22575.
16 See Cal. Civ. Code 1798.1(a), 1798.82(e).
instance, common law remedies could apply to claims of invasion of privacy, public
disclosure of private facts, and breach of duty of confidentiality.
Current privacy laws from other industries may also provide a benchmark
for future Smart Grid privacy laws. Financial institutions are regulated by the
Electronic Funds Transfer Act and the Gramm-Leach-Bliley Act. They regulate the
privacy of personally identifiable financial information disclosed to third parties.
The healthcare industry is regulated by the Health Insurance Portability and
Accountability Act, which requires a patients opt-in consent to use or disclose
protected information. The government, communications industries, and cable
television providers are all subject to similar regulations. Finally, online privacy
laws include the CAN-SPAM Act and the Patriot Act.
To illustrate just how complicated the regulatory framework can become,
consider California: California Public Utilities Code 394. It mandates that electric
utilities keep confidential customer specific billing, credit or usage information,
while requiring notice to customers.14 Californias Business and Professions Code
requires commercial websites to post privacy policies online and that certain
content be included.15 Californias Information Practices Act of 1977 regulates the
privacy of personal information collected by businesses, but is narrowly defined
to mean the use in connection with an individuals first or last name.16 Finally,
California Public Utilities Code 8380 provides several Smart Grid-specific
regulations (see earlier discussion). Patchwork legislation is likely going to be
common for Smart Grid privacy issues until comprehensive regulation is passed.
Further, which laws apply often depends on the system architecture of energy
data collection which could implicate telecommunications service provider rules,
federal laws applicable to interstate commerce, state privacy laws, EUs Privacy
Directive limits, or the FTCs enforcement against unfair and deceptive business
practices.
Smart Grid technology could present security risks. Most states have data breach
laws that require notification in the event of a security breach, penalties for failing
to disclose, and private rights of action. Congress also has introduced bills that
would require companies to provide consumers affected by a security breach
with two years of credit reports and monitoring services to detect any misuse of
their personal information.17
There are many unresolved issues dealing with third-party access. Many
jurisdictions require utilities to protect the security of the CEUD it collects.
However, except in California, if a customer consents and requests a utility to
transfer CEUD to third parties, there are no legal protections in place to limit a
utilitys liability for any subsequent third-party breach of security or confidentiality.
The DOE found little consensus with respect to whether utility liability should be
limited when disclosing data to authorized third parties, whether utilities could
charge a fee for the data and whether third-party providers should be required
to obtain further consent before disclosing the data. However, there is universal
agreement that consumers should have control over whether, and for what
purposes, third parties should be allowed to access CEUD.
Conclusion
Privacy implications in the Smart Grid world are yet to be fully addressed. State
FEATURE
Electric, Gas
and Water:
The Smart
Grid Trifecta
By Frits Bliek and Ron Chebra, KEMA
Innovations in natural gas Smart Grids are unfolding around four major developments:
Coupling gas and electric infrastructures, optimizing gas quality, optimizing grid
operation, and optimizing asset management.
16
Gas-fired power units (ranging from combined cycle gas turbine power plants to
micro combined heat and power units for in-home or small office building power
production) are merging with smart electricity infrastructure.This trend provides
flexible power generation that supports the electricity grid as well as the integration
of intermittent renewable energy sources, such as wind and solar.
The Smart Grid can help with the economic optimization of gas grid operations.
As gas transmission grids and sources are increasingly coupled with each other, gas
market volatility can increase. This coupling allows shippers and traders to rapidly
change the way they source their gas portfolios. For gas transmission operators and
trading companies, continuous and real-time optimization of the dispatching process
becomes a complex and worthwhile process that can help significantly reduce
operational expenses.
A Smart Grid also can help optimize gas quality in emerging gas grids where
new sustainable gases, such as biogas and hydrogen, will be injected. Under these
circumstances, the traditional, centrally controlled gas quality, flow and caloric value
can no longer be controlled by the gas transmission system.This requires intelligence
added into the grid to control local injection, storage, and usage while continuously
optimizing the gas grid locally.This requires a completely new design. In addition,
todays gas grid needs to be prepared for future, smart-enabled functions.
Southwest is always
under question. So
anything we do has to
look at how we continue
to sustain and make
our water usage more
efficient. The first thing
we look at is automating
the water system to the
extent that we can. This
is incredibly important
to us. While some
may look at water as a
secondary application of
Smart Grid, we look at it
very much as a primary
application.
17
FEATURE
SAFETY chAMPIONS
Safety Champions
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By Bill Dampf
18
19
GUEST COLUMN
The Public Is
Not Focused
on Smart
Electricity
Technologies
20
21
platinum members
Each edition, Western Energy shines its spotlight on two platinum members, organizations that contribute
greatly to WEIs network of expertise and innovation.
SIEMENS ENERGY, INC.
Siemens recognizes that Smart Grids are more than just smart meters. Thats why we are proud that we are the only
supplier of products, services and solutions across the entire energy conversion chain. Whatever the scope of your Smart
Grid project, we can help you from start to finish - from consulting and planning, to products and services, to implementation.
Rep: Kari Keiski, Business Development Manager 503-761-7054, kari.keiski@siemens.com
Website: www.energy.siemens.com
B&V MANAGEMENT CONSULTING
B&V Management Consulting, the management consulting division of EPC giant Black & Veatch, provides a broad range of
advisory services for electric utilities; helping them develop the best strategies to address DSM/EE, Smart Grid, Renewable
Energy, Cyber Security, Cost Control, Rates & Financing, and Sustainability challenges. Advisory services are coupled with
Independent Engineering resources for due diligence and transaction support, and a integrated Information Technology
group to help direct and implement a utilities technology strategy and software.
Rep: Tom Peterson,Vice President 213-804-6702, petersontr@bv.com
Website: www.bv.com/consult
www.siemens.com
www.tdwilliamson.com
www.bv.com
www.economists.com
22
www.henkels.com
www.kema.com
www.vertexgroup.com
gold members
Active TeleSource
Nexant, Inc.
Ricoh InfoPrint Solutions
Cisco Systems, Inc.
OMARK Consultants, Inc.
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Fine Tuning
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FEATURE
fine tuning
Fine Tuning
Communications
to Educate
Customers about
the Smart Grid
By Jay Robinson and Mark Townsend
24
Communicate,
Educate and
Optimize: The
LADWP Story
76.5
rising gas
prices made them more
said
25
FEATURE
fine tuning
26
ADMINISTRATIVE EVENTS
September 25, 2011
Coeur dAlene, Idaho
EXECUTIVE FORUMS
October 5-6, 2011
Las Vegas, Nev.
Human Resources
Executive Forum
This executive-level forum brings
together energy HR professionals
who identify critical industry
issues, share challenges and
accomplishments, and facilitate
dynamic discussions on timely
topics. Participants organize and
lead discussions based on a memberdriven agenda. This invitation-only
forum is offered twice annually
Program Manager
Becca Petersen
971-255-4966
petersen@westernenergy.org
Programs
at a Glance
27
Energy Efficiency
Forum
Program Manager
Orran Greiner
971-255-4967
greiner@westernenergy.org
Energy Management
Spokane, Wash.
Industry Forums
Business Analytics
Forum
October 26-27
28
Environmental
Strategies
Program Manager
Diana Zoren
971-255-4965
zoren@westernenergy.org
Skills Development
Program Manager
Kevin Sullivan
971-255-4973
sullivan@westernenergy.org
2012 Course
Bellevue, Wash.
Underground/
Overhead Electric
Distribution Meeting
Various Locations
Business Acumen for
Emerging Leaders
Program Manager
Becca Petersen
971-255-4966
petersen@westernenergy.org
Northwest Electric
Meter School
29
ADVERTISER INDEX
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Siemens
800-347-6659
www.usa.siemens.com/energy
Page 3
Alden Systems
888.25.ALDEN
www.aldensys.com
Inside Back Cover
KEMA
www.smartgridsherpa.com
Page 5
WESCO
800-624-9843
www.wesco.com
Page 11
Altivon
866-982-5848
www.altivon.com/utilities
Page 7
Sunrise Engineering
800-560-6151
www.sunrise-eng.com
Page 15
Inspiration
Innovation
Consulting
Engineering
Construction
Operation
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