Elster Overview Sept 15th, 2010 - origin-sl.michigan.govorigin-sl.michigan.gov/.../mpsc/elster_overview9_15_10_2_578353_7.pdf · Enterprise Applications Customer information ... River

Elster Overview Sept 15th, 2010

Agenda, 9/15 Michigan PSC

• Industry overview

• Evolution of the SmartGrid

• Regulatory strategy Overview

3 © 2009 by Elster. All rights reserved.

The SmartGrid, provides benefits to utilities customers

ConsumerAdvocates

PolicyMakers Regulators

TechnologyProviders

Utilities

EnvironmentalGroups

Technology & Tools, provide benefits to utilities & customers

– Transformational and Affordable– Assures reliability– Improves efficiency– Improves consumer knowledge & choice– Increases societal benefits– Conserves, Reduces carbon footprint– Accommodates renewables, EV, etc– Advancements & efficiencies yet to come

Source: DOE

Concept

Stakeholders


Enterprise Applications

Customer informationPrepaymentAsset ManagementDemand responseOutage ManagementPlanningControl

Network Mgmt Systems

Data Acquisition Meter Data Mgmt (MDM)Data applications

Measurement, Sensing, and

Control Elements

Utility Site Field, Distribution system, Meter, Premise

Multiple WAN Technologies:See above

Multiple WAN Technologies:See above Gate-

Ways

Local Area Networks (LAN)Utility WirelessUtility PLCWIFI, WIMAXWired - Ethernet

Local Area Networks (LAN)Utility WirelessUtility PLCWIFI, WIMAXWired - Ethernet

AND

Wide Area Network (WAN) Technologies:Fiber Optic, Private wireless, BPLCPublic Wireless - GPRS,CDMA, etcTelephone, Satellite, others

Wide Area Network (WAN) Technologies:Fiber Optic, Private wireless, BPLCPublic Wireless - GPRS,CDMA, etcTelephone, Satellite, others

Role of AMI, remove the “blind spot” for improved customer service and reliability

Already “Smart”, getting “Smarter”

“Blind Spot” substation to the consumer

AMI Extends Smart Grid


Elster, global leadership

200 millioninstallations in the last ten years

6,800 employees

38 major locations

130 global markets

Elster/Kromschroeder/Instromet (Gas)American Meter (NA Gas)Westinghouse/GEC/ABB (Electricity)Kent (Water)Coronis (RF) / PowerOneData (GPRS)

175 Yearsproviding utility solutions


Experience market differentiation

• Established and successful business– Critical mass to weather economic downturns– Continued investment with R&D approaching $100M/yr– Active and supportive of industry standards and alliances– Proven track record of performance in the industry – Can and will stand behind our offerings

• Focus on solutions– Products, systems, applications– Services, delivery & the environment– Partnering & choice

• Utility experience designing for utility applications– Understand utility environment and challenges– Understand revenue metering – accurate and auditable a

MUST!– Understand systems must support

• Interoperability• Current, future and legacy standards• Distributed intelligence• Security across the system, tools, and applications


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1.8

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ElsterItr

on/Acta

ris

ESCO

Bayard

Roper

Sensu

s

Annual Revenue ($B)

Elster, leading the industry in annual revenue

2008 Data

Elster products satisfy “buy American products” objectives for ARRA

EnergyAxis proven in the Market

• Market Leading Solutions – 81+ installed systems worldwide– +4.0 million EnergyAxis endpoints – Multi-Utility– electric, water, & gas

• Delivering Smart Grid Capabilities– Empowering Consumers:

• Consumer Portals• Home Area Networks

– Modernizing the grid:• Voltage Conservation• Advanced Grid Infrastructure

• Proven utility-grade solutions– Total network solutions– 175+ years industry experience

© 2010 by Elster. All rights reserved. Proprietary and Confidential


Elster… Proven technology for many different environments

In Cities In Communities In the Country In the Jungle Under Snow

In High Rises In Multi-use Space In Single Family Homes

In Shacks In Rice Fields

On Low Voltage Transformers

Inside Pad Mount Transformers

On Medium Voltage Lines

On Re-closers

EnergyAxis, scalable around the world…sample set of installed systems

Utility Total Electric endpoints deployed

Total customers available (electric)

Total Gas Endpoints Deployed

Consumers Energy 1,800 1,800,000 1,600,000

Questar 1,000,000 (AMR) 1,000,000

688,000

995,000

296,024

1,102,000

235,000

220,000

169,000

350,000

76,000

27,000,000

69,161

80,000

188,000

2,400,000

10,000 (AMI)

Total Customers available (Gas)

Toronto Hydro 628,053

Salt River Project 505,539

Ottawa 296,473

Arizona Public Service

274,775

Horizon Utilities 226,374

City of Tallahassee 196,565 30,000

Enersource 162,946

Metrix (Mighty River Power)

121,097

City of Ocala 76,000

CFE Mexico 72,316

Black Hills 69,161

Turlock Irrigation District

38,582

Orlando Utility Council

35,633

Entergy 12,714 100,000

AMI shipments +54% since 2008…

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2000

4000

6000

8000

10000

12000

14000

16000

2008 2009 Proj 2010

Source: Scott Report, Q1, 2010

+54%

and…will continue to grow, 50% penetration projected in North America by 2015

0%5%

10%15%

20%

25%30%

35%

40%45%

50%

US Europe Asia

% Household penetration of smart meters by 2015

Source: Berg Insight Aug, 2010

By 2015 +300 million Smart meters deployed throughout the world

Current: 2010

Current: 2010Imagine….. 2015

Current Deployments….2010

Phase 2Introduction of New Technology and Programs

PHASE 1Enabling Infrastructure

Phase 3Widespread ConsumerAdoption

Elster’s EnergyAxis system - Satisfies Michigan Requirements

• Michigan Act 295:– Energy Optimization Plan– REP (Renewable Energy Plan)– Net metering requirements

• Michigan has defined REP goals, varies by utility– Two goals with increasing deliverables

• 2013 & 2015• Energy Optimization goals (Energy Efficiency)

– Goals with increasing deliverables• 2009, reduction of Energy by .3% of 2007 electrical energy delivered• 2010, reduction of Energy by .5% of 2009 electrical energy delivered• 2011, reduction of Energy by .75% of 2010 electrical energy delivered • 2012, reduction of Energy by 1.0% of previous year thereafter

AMI

AMI…the enabling infrastructure.AMI…the enabling infrastructure.

Source: Mike Howard (EPRI) “Smart Grid & AMI”, NARUC Winter Meeting Feb 2008



• Robust/Cost effective Multi-Technology Communications network

• Smart Meters

• Security

• Standards• Multi-Utility – Electric, Gas,

Water

• Communication Technologies to meet the need today and tomorrow

• Auditable Data

• Built-in security and standards

• Full utility Solution



Elster EnergyAxis Network

A field proven (Tried & True) end-to-end Network offering providing required Smart Grid characteristics;

• Authentication• Confidentiality• Data Integrity• Reliability• Security

firewall

Gatekeeper metersGatekeeper meters

meter/repeatermeter/repeater

EA_MSEA_MSroutercontrol

WANWAN

LANLAN

UtilityUtilityNetworkNetwork

HANHAN

EnterpriseEnterpriseNetworkNetwork

Meters w/WANMeters w/WANDirect connectionDirect connection

DA DevicesDA Devices

StandaloneStandaloneGatekeeperGatekeeper

WAN DA DevicesWAN DA Devices

StandaloneStandaloneRepeaterRepeater

The network must economically enable current and future capabilities

• Elster has executed +300,000 secure over the air upgrades• Execution must be flexible and NOT interrupt critical everyday

operations


WAN

• Industry-leading performance, optimized for cost– 142kbps throughput– Variable packet size up to 256 bytes

• Fastest data rate local area network for the unlicensed 902-928 MHz space– Retrieve data in seconds

• 1-2 seconds per on-demand read

EA Management System

WANGatekeeper LAN

Network Elements

256 bytes

142 kbps

Customers expect answers now!... EnergyAxis leads the industry in performance

AMI networks must support the future evolution of the SmartGrid

• EnergyAxis provides Superior data transport capacity– 10% or less of

network capacity used today

0%10%20%30%40%50%60%70%80%90%

100%

Ope

n S

yste

m C

apac

ity

EnergyAxis reliable coverage for all Michigan customers• Extended penetration and reach for urban, suburban, and rural

customers– 16 Hops

• Network providing reliability and redundancy• Deterministic latency• Multiple dynamic deterministic paths for consistent and reliable

information• Flexible network supporting mesh or direct connect applications

Level 1Level 2

Level 3 …..

Gate-keeper

to Level 16

Secure the data at the most economical cost

• Distributed Intelligence throughout the network

• Messages and tasks prioritized and executed close to point of need– Expedites actions and alerts

• Gatekeeper-managed tasks – Optimized for cost and performance

• Data collection• Data retransmissions• Device programming and flashing• Filtering out redundant alarms and events


EnergyAxis, auditable and future proof metrology functions

• Smart Meter vs “Dumb” Smart Meter• “Solid state” meter does not equal “smart”

meter• Smart Meter itself needs to calculate metrological

data• Allows use of standard meter tables• Provides complete billing data audit trail • Allows government approval of the meter (e.g.

Measurement Canada)• EnergyAxis based on smart meters

• Elsters meters support upgrading metrology and communications firmware

Elster a “greener” more economic meter solution

EnergyAxis metersLow power consumption less than 1W @ nominal voltage

Cost of Smart Meter Burden

$0

$20,000,000

$40,000,000

$60,000,000

$80,000,000

$100,000,000

$120,000,000

Year 1 Year 5 Year 10 Year 15

Genera

tion C

ost

ElsterVendor 2Vendor 3

Assumptions:• 20% radio transmitting• $045 energy cost• Vendor 2 = 3.5 watts• Vendor 3 = 8 watts

Elster

Vendor 2

Vendor 3

$1.8 million dollar savings per year with Elster

$6.9 million dollar savings per year with Elster


Energy Axis Management System…quick system and customer specific information

Instant information at a “click” of a buttonOutageRestorationOn Demand ReadPower qualityReconnect/disconnectVoltageNetwork DiagnosticsNetwork management


Security of customers data – A “MUST HAVE”• Security has been a top priority for the EA system

• Elster designed in security vs. “bolted-on” strategy• Minimizes performance impacts• Minimizes cost impacts

• Security has been resourced for success• X-Telecommunications engineers and managers• “White Hat” hackers

• EnergyAxis supports complete End – to – End security• Utilize defined security standards• Leverage 3rd party security experts for assessment• Leverage customer primed security analysis

• Security testing and validation is a continuous improvement process• Each system release tested for security performance


Standards and Interoperability at the “core”of Elster’s system strategy

• Elster a committed stakeholder in standard bodies, examples:

• IEE – 802.14.4g• NIST/CIM/Zigbee

• Elster a history of leveraging standards

• Standard interfaces enabled an integrated solution at all 81 installations

• Standards allow grid control• Standard TCP/IP and SCADA

protocols• Enable smart grid with legacy

equipment• Security standards are essential for a

reliable network• NIST Approved (e.g. AES encryption)• CIP requirements

AMI Smart Grid

AMI Headend

Consumer Portal

DR

SCADA

MDM

Standards and interoperability provide economical choice throughout the system

30


Energy Axis AMI system, provides infrastructure for all utility

• One network, one infrastructure for electric, gas, and water Smart Grid• Customer service and reliability • Conservation and efficiency• Operational benefits

Energy Axis 2 Way Gas solution provides the benefits of the smart grid

• Smart monitoring & conservation• Managing delinquencies • Move-in and Move-out automation

– “Soft” or “Hard” disconnect• Theft and loss detection• Data warehousing

– Operational efficiency– Predictive preventive maintenance– Un-regulated energy management service offerings

Usage information

Elster’s Energy Axis Gas Solution

• Flexible system, to match utilities service territories

1. Utilities service territory includes overlapping gas and electric customers

2. Utilities electric service territory includes gas customers from neighboring utilities

3. Utilities gas customers, not within electric service territory

• Complete End to End security• Forward Compatible for future functionality

EnergyAxis gas module, compatible with legacy and new gas meters

SpragueRockwell

Elster American Meter

Reuses existing index and avoids errors and efforts associated with closing reads during index change-out.

Elster American Meter

Sensus/Rockwell*

Actaris

Compatible with Large Diaphragm Meter Models

Enterprise BusEAMS

MDUS

EnergyAxis LAN

IP backhaul

EnergyAxis Gatekeeper

EnergyAxis LAN EnergyAxis LAN



Utilities with combined gas and electric service territories

Enterprise BusEAMS

MDUS

Service TerritoryService Territory

Enterprise Bus

MDUS

VPN

EnergyAxis LAN

WAN

IP backhaul

Provide neighbor utilities with AMI coverage gas customers

MDUSService Territory

Service Territory MDUS

Enterprise Bus Enterprise BusVPN

EnergyAxis LAN

EnergyAxis GatekeeperIP backhaul

EnergyAxis LAN


WANIP backhaul

EAMS

AMI coverage to include gas only territories….

MDUSService Territory

Service Territory MDUS

Enterprise Bus Enterprise BusVPN

EnergyAxis LAN

EnergyAxis GatekeeperIP backhaul

EnergyAxis LAN


WANIP backhaul

EAMS

AMI / AMR Hybrid coverage

AMR Data

AMR Data

Route Manager


• Elster is leveraging the customers AMI infrastructure for distribution grid modernization (AGI Initiative)

• Remote connect / disconnect• Real time meter reading• Outage reporting

• Grid Modernization– Voltage Conservation– Load Reduction– Transformer Monitoring– Renewable /Distributed generation– Plug-in hybrid vehicles (PHEV)

• Home Automation

• Call Center

• Work Management / Service Orders

• Service Restoration

• Workforce Management

NE

WPHASE 1Enabling Infrastructure


Remote service switch, provides both operational and customer benefits…

• Elster’s 200A disconnect switch– Resides within residential meter– Remotely administered via utility network– No visual equipment signifying remote service switch capability– Programmed to provide demand thresholds, demand limiting– Load side voltage monitoring for safety and tamper

• Operational and customer benefits– Avoid lost revenue and costs associated with move in’s/move outs– Prepayment, enabled via Elster’s remote service switch

• +500K devices deployed and operational today


Real time voltage control enabling voltage conservation

• Voltage Conservation• Leverages distributed intelligence architecture

for optimal voltage data collection• Deployment to monitor voltage levels at key

points on distribution feeders• Off-peak voltage is conserved and monitored

• Maintain voltage at minimal thresholds

EA_MS


Load reduction for rural commercial customers…irrigation pump control

• Load Reduction• Control of large three

phase irrigation pumps during peak times

• Year 3 of commercial deployment in process

AGI RLC


• Transformer Monitoring• Deployment to monitor secondary transformers• Monitor voltage, transformer loading, outage


Providing a solution for renewable implementations

• Renewables require not only net metering, but sub metering of subsidized renewable energy

• Installed Elster residential meters in interface to PV to monitor actual PV output

• Enables verification of green energy contribution


The network does need to provide PHEV support

• Use of AMI for monitoring EV charging stations• Elster smart meter used to

monitor and control electricity consumption patterns at charging station

• Part of Burlington Hydro’s GridSmartCity project

• Continued discussions with partners


Providing energy efficiency information to the end use customer

• EnergyAxis DR provides consumer information and control• Information, knowledge and ability to better manage demand

• Better understanding of the cost of using appliances, AC, heating, etc.

• In general• At different times of the day under a TOU rate

• Ability to manage / reduce overall energy consumption • Manage peaks, shift load• Additional benefits during Critical Peak periods

• Control (direct/indirect) of energy use


• Partially available today with pilots, web portals, Home Automation deployments

• Home Automation/PHEVs/Distributed Generation• Business cases need further clarification• Continued evolution of standards necessary

• Behavioral changes• Distributed /

Renewable generation• PHEV

• Consumer choices for consumption

• Green energy initiative



Phase 3Widespread ConsumerAdoption


R&D - Grid Modernization Activities

• Capacitor Bank Control• Typically 1-2 control devices per feeder• Leverage deployed WAN technologies deployed for

Capacitor Bank Control• Provides TCP/IP capability for SCADA protocols;

backward compatible for legacy equipmentEA_MS

EA Gateway/GK

Cap Bank Controller

LAN LV Node

WAN


R&D Areas

• CIM• IEEE 802.15.4g• Zigbee SEP 2.0• TCP/IP

• Standard Interfaces

• Support New Standard for LAN

• Support New Standard HAN (SEP 2.0)

• TCP/IP for Grid Control

• GPRS Public Wireless• CalAmp Private Wireless

• WAN connected GK/Meter

• Enable private wireless for rural GK/Meters

• Grid Monitoring (V,PQ, TX, MV Line Monitoring, FCI)

• Grid Control (TCP/IP for SCADA)

• Gather information from additional points

• Support applications such as voltage conservation

• Provide grid information to operations for feeder control

Ed Gray

VP, Legislative & Regulatory Affairs

• Federal: – EPAct 2005, EISA 2007, ARRA 2009, (PURPA 1978), new energy legislation– White House Smart Grid Subcommittee– DOE– FERC– FCC– NIST interoperability standards

• State PUCs: MI (2006, 07, 08, GLEMS 09), PA, MD, IL, OH, TX, NJ, NY, KS, 41 overall NARUC, MARC, principal Elster focus has been AMI functional requirements

• Standards groups: national & Canada– ANSI C12 series, international–IEC 61968 Part 9

• Regional groups: PJM, MADRI • Trade Associations

– GridWise Alliance– National Electrical Manufacturers Association– American Public Power Association– Edison Electric Institute– Utilities Telecom Council– Peak Load Management Alliance

Influential in the Direction of the Smart Grid

Regulatory Strategy• Work with trade associations, utilities, and

governmental bodies nationwide promoting:– Technology neutrality– Widespread competition lower cost solution to

consumers– Appropriate social and economic benefits for

consumers

A Partner with Utilities

• Supporting utilities’ primary objectives:– Participation in regulatory process– Providing “best practices” and associated

case studies – Defining technology requirements – Protection against stranded assets– Defining cost recovery options

Elster Involvement at Federal level

• FCC Broadband Plan: – wireless broadband everywhere– new spectrum for smart grid

• DOE: supporting smart grid grants– Defining requirements with awardees – Providing reporting metrics

• Shaping cyber security standards– DOE, DHS, NIST, GWAC, NERC…

• Influence federal Process for adoption and scope of NIST Standards by FERC

• Influence White House smart grid subcommittee– developing a framework for all the diverse smart grid work

Congress initiated SmartGrid interoperability effort

• EISA 2007 Section 1305 gives NIST the primary responsibility to coordinate ‘framework’ development; as per EISA:– Scope for Information management

• protocols • model standards

– Product scope• Generation and Transmission (possible mandatory

standards under FERC)• Consumer appliances (possible voluntary standards)• …..NIST expansion…to include Electric Distribution System

– The interoperability standards purpose: define the standards for federal smart grid grants.

Elster’s solutions are proven to be interoperable

• Solutions for utilities must be interoperable with existing legacy systems– Elster’s 81+ deployments

• Proven interoperability with many suppliers – Elster’s strategy, participate in standards

development influencing future applications • Example: NEMA SG-AMI 1-2009

AMI Smart Grid

AMI Headend

Consumer Portal

DR

SCADA

MDM

Sources for ‘NIST Standards’

• ‘Voluntary consensus standards’ are developed in committees of experts from stakeholders– utilities, manufacturers, testing firms, government agencies

• ‘Open protocols and standards’ may come from– Accredited ‘Standards Development Organizations’ (for

example the National Electrical Manufacturers Association ANSI C12 electricity metering series)

– Industry Alliances (for example, ZigBee)– A users group (for example, DNP 3)

• Voluntary standards may be made mandatory by government action, such as FERC adoption

• The NIST process is endorsing a portion of the open standards that may be used for smart grid applications

NIST Standard Implementations • ARRA 2009 provided the funding to implement

the NIST work, EISA had only ‘authorized’ it– Smart Grid Interoperability Panel launched 11/2009– First Release’ 1/19/2010, initial set of 75 standards– Priorities for additional standards established– “Future Proofing” ….NEMA SG-AMI 1-2009,

• Provides standards for ‘future proofing’ advanced metering– Firmware upgrades:

» Elster has executed +100K over- the- air • NIST has used this standard as assurance for state

regulators to go forward with deployments

Elster Solution Satisfies Michigan Requirements

• Michigan Act 295:– Energy Optimization Plan– REP (Renewable Energy Plan)– Net metering requirements

• Michigan has defined REP goals, varies by utility– Two goals with increasing deliverables

• 2013 & 2015• Energy Optimization goals (Energy Efficiency)

– Goals with increasing deliverables• 2009, reduction of Energy by .3% of 2007 electrical energy delivered• 2010, reduction of Energy by .5% of 2009 electrical energy delivered• 2011, reduction of Energy by .75% of 2010 electrical energy delivered • 2012, reduction of Energy by 1.0% of previous year thereafter

Thank you ……..

Documents

Elster Overview Sept 15th, 2010 - origin-sl.michigan.govorigin-sl.michigan.gov/.../mpsc/elster_overview9_15_10_2_578353_7.pdf · Enterprise Applications Customer information ... River