An Ignoble Experiment

2. Electric industry responds to grid attack

Regulators in California are becoming more involved in the future of electric vehicles (EV), while those in New York are taking a major step back.

Credit: Boboroshi/Wikimedia Commons

The California Public Utilities Commission (CPUC) is continuing to work to support the use of alternative-fuel vehicles in California in order to bring benefits to ratepayers, increase electric system reliability, and help achieve the state's target of getting 1.5 million zero-emission vehicles on the roads in California by 2025 by opening rulemaking that focuses on the ongoing issues of financing options, appropriate rate design, and development of new policies related to alternative-fuel vehicles.

The rulemaking will have two tracks: 1) evaluating the potential value of vehicle-to-grid integration to ratepayers and the electric grid, including the use of vehicle batteries for demand response or energy storage and 2) focusing on the development of new alternative-fuel vehicle tariffs in each of the investor-owned utility service territories, including new rate designs for plug-in electric and natural gas vehicles and policies for residential, multi-family, workplace, and fleet plug-in electric vehicles.

The CPUC is taking this opportunity to make a mid-stream assessment of the alternative-fuel vehicle market and the role of the utility.

"Our decision…includes examining the role, if any, that financing could play in accelerating the adoption of alternative-fuel vehicles," said CPUC Commissioner Mark J. Ferron. "We will also evaluate changes that could be made in order to better integrate charging of electric vehicles with efficient operation of the electric grid."

As the CPUC is becoming more involved, the New York State Public Service Commission (PSC) has decided that it does not have jurisdiction over publicly available electric vehicle charging stations, potentially removing an impediment to investment. By reducing regulatory barriers, the Commission's decision will encourage the development of electric vehicle charging stations, and the use of electric vehicles overall.

In May 2013, New York Governor Andrew Cuomo announced a review of the State's electric regulations and policies to support the expansion of New York's market for electric and plug-in hybrid vehicles to create a statewide network of up to 3,000 charging stations over the next five years. The PSC was directed to review existing policies to ensure that regulations promote the evolution of the electric vehicle market in New York.

Following the Governor's directive, the Commission issued a notice seeking comment on the potential impact of the Commission's determination that the Public Service Law does or does not provide the Commission with jurisdiction over publicly available electric vehicle charging stations and related issues. Based on its analysis, and a review of comments received, the Commission determined that since a charging station is providing a service distinct from the provision of electricity, it is not an electric plant, and the owners or operators of charging stations do not fall within the definition of an electric corporation. The Commission's determination, however, does not diminish its ability to respond to changes in the market in which charging stations operate.

The Commission's decision that publicly available charging stations will not fall under the Public Service Law does not diminish other regulatory requirements that might exist for EV charging stations. Some municipalities, for instance, have a permitting and inspection process for installing electric vehicle charging equipment. This permitting and inspection process will help to ensure that such equipment is installed safely. In addition, there is an ongoing effort by the National Institute of Standards and Technology, a bureau of the U.S. Department of Commerce, to develop guidelines for the oversight of devices, such as meters, used in the provision of charging services.

For more:
- see the CPUC proposal

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By Barbara Vergetis Lundin

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3. CIS inevitable in smart grid transformation

Cyber and physical threats are constantly evolving and require quick action and flexibility that comes from constant vigilance and collaboration between government and industry. Reviewing the security response to the grid's critical components during a disruptive, coordinated attack on the grid in a simulated exercise helps the industry make the electric system more secure.

Credit: Wikimedia Commons

More than 200 industry and government organizations, comprised of more than 1,800 people, participated in the North American Electric Reliability Corporation's (NERC) two-day cyber and physical security exercise, GridEx II, which was designed to enhance and improve cyber and physical security resources and practices within the industry and offered participants the opportunity to check the readiness of their crisis action plans. Through the simulated security exercise, participants were able to self-assess response and recovery capabilities, and adjust actions and plans as needed, while communicating with industry and government information sharing organizations.

GridEx II brought participants from North America, including the electricity industry, the Department of Energy, Department of Homeland Security, Department of Defense and the Federal Bureau of Investigation, as well as Canadian and Mexican utilities and agencies.

"Protecting the bulk-power system from security threats and ensuring its resilience are vital to our national security and economic well-being," said Gerry Cauley, NERC's president and chief executive officer. "Training on physical and cyber attacks on the grid helps industry make the system more secure."

The scenario was designed to stress the system through a series of prolonged coordinated cyber attacks against certain automated systems used by power system operators. The scenario also included coordinated physical attacks against key transmission substations and generation facilities. These attacks caused utilities to enact their crisis response plans and walk through internal security procedures.

Information sharing with industry and government stakeholders during the exercise provided the Electricity Sector-Information Sharing and Analysis Center (ES-ISAC) an opportunity to engage subject matter experts and problem solving. The information exchange of simulated threats allows NERC and the ES-ISAC to analyze and identify physical and cyber threat information for trends, cross-sector dependencies, and specific opportunities for improvement.

"Exercises like this help strengthen relationships, improve crisis response plans and increase the flow of critical information to the electricity sector," said Brian Harrell, associate director of Critical Infrastructure Programs, NERC. "Paired with NERC Reliability Standards and other training and education efforts, the industry continues to develop dynamic security programs to meet the ever-changing threat environment.

NERC will issue a full report with its findings in the first quarter of 2014.

For more:
- visit this website

Read more about: cybersecurity, Gerry Cauley NERC
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By Barbara Vergetis Lundin

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4. Smart Grid Pioneers recognized

As the result of the deployment of smart grids, the relationships between utilities and their customers are becoming more complex, according to Navigant Research.

Credit: Dutch central government/Wikimedia Commons

As such, utilities need billing and customer information systems (CIS) to meet the needs of these more complex relationships; however, those systems are facing a number of significant barriers to adoption. In order to reap the full benefits of the ongoing smart grid transformation, utilities must overcome those barriers and achieve more widespread, and deeper, adoption of advanced billing and CIS software and services.

"Initial enthusiasm in this market segment has been somewhat dampened by the realities of legacy transformation," said Eric Woods, research director with Navigant Research. "Utilities face the challenge of justifying a considerable capital investment in a period of continued financial and economic uncertainty. However, new billing and CISs are still seen as an inevitable requirement for utilities -- even if they are taking a more prudent approach to the necessary investment."

Vendors have recognized that a cookie-cutter approach to billing and CIS transformation does not work, and need to approach utilities with the intention of becoming their long-term partner, not only for billing and CIS, but also in supporting their broader transformation, according to Navigant, including helping clients lower their billing and CIS costs across all activities with solutions for web billing, paperless invoicing, and electronic payment.

For more:
- see this report

By Barbara Vergetis Lundin

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5. CA ISO approves Central Valley transmission line

Smart Grid Today has named 50 Smart Grid Pioneers of 2013, including many utility executives, regulators and political figures working on smart grid solutions to electricity challenges globally.

SGCC's Patty Durand

PG&E's Senior Director of Smart Grid and Technology Integration, Kevin Dasso, received the recognition for his efforts in installing new technologies that enhance the delivery of safe, reliable and affordable electricity, resulting in real benefits for PG&E's customers.

"We've been working on smart grid before it was cool," Dasso said in an interview in PG&E's Currents.

PG&E will be starting pilots on several projects at its technology lab in San Ramon, including installing communicating sensors that help detect outages on the grid more precisely and offers more real-time information about current power flows at much lower cost.

Since Patty Durand, Smart Grid Consumer Collaborative (SGCC) executive director joined SGCC in 2011, the organization has produced numerous research reports and insights about consumer awareness and perception of a modernized grid, has grown to more than 100 members, has launched a consumer-facing platform for education and is gearing up to launch an unprecedented national energy literacy ambassadorship program in early 2014 – making her worthy of recognition as a Smart Grid Pioneer.

"Durand is a top-notch leader, inspiring the industry with research, learning and actionable programs designed to educate and inspire consumers about a safe, friendly and resilient electrical grid," said John McDonald, SGCC board chairman.

Honoree Doug Myers, Pepco Holdings Inc. (PHI) CIO, is a forward-thinker and innovative leader.

"This honor is a tribute to Doug's focus, forward thinking and ability to position PHI as a leader in innovation and advanced technologies. We are placing an increased emphasis on raising the company's security posture," said Joseph M. Rigby, PHI's chairman, president and CEO. "As technology grows, the electric industry as a whole is placing an increased emphasis on both cybersecurity and physical security. Doug's natural ability to collaborate, along with his insight, have delivered real progress on both fronts."

Miriam Horn, director of the smart grid initiative at the Environmental Defense Fund (EDF), is being recognized as a smart grid trailblazer for her work at the EDF.

"EDF is fighting for a cleaner, more secure energy future, and…Miriam Horn has done tremendous work accelerating our country's transition to a clean, low-carbon economy," said Jim Marston, vice president of EDF's U.S. Climate and Energy Program. "We thank Miriam for her tireless efforts advocating for a modern, intelligent, interactive electricity system that will spur economic growth, cleaner air and a safer climate and congratulate her on a job well done."

Among the other winners are:

Ron Binz, former FERC Commissioner nominee and principal at Denver-based Public Policy Consulting
John Halliwell, EPRI senior project manager
Curt Hébert, a partner in the Brunini Law Firm in Jackson, Mississippi, former FERC chairman and a former state regulator in Mississippi
Philip Jones, NARUC president
John Kelly, Perfect Power Institute executive director
Brewster McCracken, Pecan Street CEO
Kenny Mercado, division senior vice president of Grid & Market Operations, CenterPoint
Michael Niggli, SDG&E CEO
Bryan Olnick, Florida Power & Light vice president of Smart Grid Solutions and Meter Operations
Bram Reinders, the head of a Dutch "smart grid mission" to the U.S.
Scott Saunders, information security officer for SMUD
Kenneth Van Meter, former principal consultant at Booz Allen Hamilton
Christopher Villarreal, a senior regulatory analyst in the Policy & Planning Division of the California PUC
Jon Wellinghoff, outgoing FERC Chairman
Tom Willie, Current Group CEO
Kurt Yeager, vice chairman of the nonprofit Galvin Electricity Initiative
Marzia Zafar, director of the Policy and Planning Division at the California PUC

For more:
- see this article

Read more about: Pepco Holdings
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By Barbara Vergetis Lundin

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