the SMART GRID:

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21 Νοε 2013 (πριν από 3 χρόνια και 10 μήνες)

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the

SMART GRID:

an introduction.
Exploring the imperative of revitalizing
America’s electric infrastructure.
How a smarter grid works as an enabling engine

for our economy, our environment and our future.
prepared for the U.S. Department of Energy by Litos Strategic Communication under contract No. DE-AC26-04NT41817, Subtask 560.01.04
the

SMART GRID:

an introduction.
the

SMART GRID:

an introduction.
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 Litos Strategic Communication, nor any of their employees, make any warranty, express or implied,
or assumes any
legal liability or responsibility for the accuracy, completeness, or usefulness of any information apparatus, product, or proce
ss 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, or Litos Strategic Communication. The views and opinions of authors expressed herein do not
necessarily state or reflect those of the United States Government or any agency thereof.
PRINTED IN THE UNITED STATES OF AMERICA.
From the Department of Energy
The Smart Grid Introduction is intended primarily to
acquaint non-technical yet interested readers about:
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means for our country


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its implementation.
PREFACE
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modernization of our nation’s electrical grid.

While it is running.

Full-tilt.
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of a wide range of stakeholders.
Equally critical to the success of this e!ort is the education of all interested members
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Grid and its implementation.
It is to this mission that The Smart Grid: An Introduction is dedicated.
TOC
KNOWL E DGE BROUGHT
T O P OWE R
TWO
Edison vs. Graham Bell:
The Case for Revitalization.
Presenting the argument in a timely fashion requires a trip “back to the future…”
SECTION
Resources and Glossary
Coming to terms with the Smart Grid...
ONE
Introduction:
We Don’t Have Much Time.
Toward an orderly transition to a smarter grid…

FOUND ON
SEVEN

How Things Work:
Creating the Platform for the Smart Grid.
Making it possible for consumers to participate…
NINE

Edison Unbound:
What’s
Your
Stake in All This?
Benefits for everyone…

FIVE

Compare and Contrast:
A Grid Where Everything is Possible.
For an invigorating vision of our energy future, look forward…

SIX

First Things First:
Teasing Out the Complexities.
How various constituencies – i.e., utilities and regulators – are working toward
fundamental realignment to make a smarter grid get here faster…
FOUR

The Smart Grid:
What It Is. What It Isn’t.
Why it’s important to know the difference…
THREE
The Grid as It Stands:
What’s at Risk?
The many hazards associated with operating the 20th century grid in the 21st century.
The lights may be on, but consider what we’re missing…
EIGHT

Progress Now!:
A Look at Current Smart Grid Efforts and How They’re Succeeding.
From West Virginia to California to Hawaii, a smarter grid is taking shape…
TOPICS
1
2
4
6
10
16
24
28
32
36
40
Our nation’s electric power infrastructure that has served us so well for so long – also known as “the grid” –

is rapidly running up against its limitations. Our lights may be on, but systemically, the risks associated with
relying on an often overtaxed grid grow in size, scale and complexity every day. From national challenges like
power system security to those global in nature such as climate change, our near-term agenda is formidable.
Some might even say history-making.

Fortunately, we have a way forward.
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needed but well within reach. Think of the Smart Grid as the internet brought to

our electric system.
A tale of two timelines
There are in fact two grids to keep in mind as our future rapidly becomes the present.
The first –
we’ll call it “a smarter grid” – o!ers valuable technologies that can be deployed within the very near future

or are already deployed today.
The second –
the Smart Grid of our title – represents the longer-term promise of a grid remarkable in its intelligence
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a similar killer app in this space won’t substantially accelerate that timetable?
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on our environment.
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A smarter grid applies technologies, tools and techniques available now to bring knowledge to power –
knowledge capable of making the grid work far more e!ciently...
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will learn about some of them here.
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there will also come a time when you won’t remember life before the Smart Grid.
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The story goes like this:
If Alexander Graham Bell were somehow transported
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familiar with the grid.
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There is a popular comparison that
underscores the pace of change – or lack
thereof – regarding our nation’s grid.
Menlo Park Workshop
Pearl Street Station
First Street Lamps
Metering
Compact Fluorescent Light
4
advancements in electricity
advancements in telecommunications
Operator Switching Stations
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North American

Numbering System
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and Handset
First Telephone
While this thought experiment speaks volumes about
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dazzled as Graham Bell with the technology behind the scenes.
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to human involvement and endeavor that it has alternately (and
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megawatts of generating capacity connected to more than
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Academy of Engineering set about identifying the single most
important engineering achievement of the 20th century. The
Academy compiled an estimable list of twenty accomplishments
which have a!ected virtually everyone in the developed world.
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achievement of the 20th Century.”

Given that the growth of the nation’s global economic leadership
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Everything must work almost perfectly at all times – and does.
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the industry ever know about it.
Engineered and operated by dedicated professionals over
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o!er us among the highest levels of reliability in the world for
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cannot be overstated.
But we – all of us – have taken this marvelous machine for
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has begun to fail us more frequently and presents us with
substantial risks.
POWER SYSTEM FACT
Today’s electricity system is 99.97
percent reliable, yet still allows for
power outages and interruptions that cost
Americans at least $150 billion each
year — about $500 for every man,
woman and child.
5
Long Distance Calling
First Telecom Satellite
Touch-Tone Telephones
Cellular Communications
Phone Over the Internet
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Since 1982, growth in peak demand for electricity –
driven by population growth, bigger houses, bigger
TVs, more air conditioners and more computers
– has exceeded transmission growth by almost
25% every year. Yet spending on research and
development – the first step toward innovation
and renewal – is among the lowest of all industries.
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chronic underinvestment in getting energy where it
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hundreds of thousands of high-voltage transmission
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additional miles of interstate transmission have been
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worsen at a time when outages and power quality
issues are estimated to cost American business more
than $100 billion on average each year.
In short, the grid is struggling to keep up.
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R&D as a % of Revenue
PERCENTAGE of REVENUE
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Based on 20
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century design requirements and having matured
in an era when expanding the grid was the only option and
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modern concerns…
Energy e!ciency?
A marginal consideration at best when
energy was – as the saying went – “too cheap to meter.”
Environmental impacts?
Simply not a primary concern when
the existing grid was designed.
Customer choice?
What was that?
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controlled infrastructure created largely before the age of
microprocessors that limits our flexibility and puts us at risk

on several critical fronts:
EFFICIENCY:

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savings would equate to permanently eliminating the fuel and
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country would conserve enough energy to light 3 million homes
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situational awareness” on the part of grid operators. This issue
of blackouts has far broader implications than simply waiting
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transactions rendered inoperable. Such are the e!ects of even
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did you know
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only way a utility knows there’s an outage
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7
POWER SYSTEM FACT
41% more outages a"ected 50,000
or more consumers in the second half of
the 1990s than in the first half of the decade.
The “average” outage a"ected 15 percent
more consumers from 1996 to 2000
than from 1991 to 1995 (409,854
versus 355,204).
NATIONAL ECONOMY:
The numbers are staggering and speak

for themselves:


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billion economic loss to the region.
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term coal contracts – are certain to raise their visibility.
SECTION T
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economy rather than “paying the
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75 ’80 ‘85 ’90 ‘95 ’00
Decrease in Transmission Investment

(
Dollar Amount In Billions
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YEARS
$1
$2
$3
$4
$5
$6
- 117 million
SECURITY:

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turned their thoughts toward terrorism. And not without cause. The grid’s
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security systems among others to a complete standstill.
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their potential will not be fully realized.
GLOBAL COMPETITIVENESS:
Germany is leading the world in the development
and implementation of photo-voltaic solar power. Japan has similarly moved to
the forefront of distribution automation through its use of advanced battery-
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order of the grid to consider or grapple with.
How will a smarter grid address these risks and others? Read on.
9
The U.S. accounts for 4% of the
world’s population while contributing
25% of its greenhouse gases.
U.S. Share of World Population
Compared to its Production of
Greenhouse Gases
4%
25%
Centralized System of the mid 1980’s
More Decentralized System of Today
Large CHP (Combined Heat & Power)
Wind
Small CHP (Combined Heat & Power)
DENMARK’s PROGRESS OVER THE PAST TWO DECADES
The electric industry is poised to make the transformation
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is less centralized and more consumer-interactive. The move
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consumers of electric power.
TH
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ID:


WH
A
T IT IS.
WH
A
T IT ISN’T.
part 1:
what it is.
Prepare for an electric system that is
cleaner and more e!cient, reliable,
resilient and responsive –

a smarter grid.
SECTION F
O
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10
A smarter grid makes this transformation possible by bringing
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it enables the industry’s best ideas for grid modernization to
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Concepts in action.

It may surprise you to know that many of these ideas are already
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the two-way digital communication and plug-and-play capabilities
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to multiply.

Advanced Metering Infrastructure (AMI)
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it costs in near real-time – a Smart Grid imperative – price signals
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based on consumers’ learned wishes and power accordingly. The
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possessed none of the potential that it does today.
Visualization technology.
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lack the ability to integrate information from a variety of sources
or display di!erent views to di!erent users. The result: Limited
situational awareness. This condition will grow even more acute
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to understand and act on that data.
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state of the grid at the national level and switch within seconds
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information about blackouts and power quality as well as insights
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Earth’s user community.
POWER SYSTEM FACT
11
INDUSTRY

AMOUNT

Cellular communications

$41,000
Telephone ticket sales

$72,000
Airline reservation system

$90,000
Semiconductor manufacturer

$2,000,000
Credit card operation

$2,580,000
Brokerage operation

$6,480,000
AVERAGE COST FOR 1 HOUR OF

POWER INTERRUPTION
Phasor Measurement Units.
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– or even prevent – blackouts.
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steady state view into the power system behavior. Equipped with Smart
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o!ering dynamic visibility into the power system.
Adoption of the Smart Grid will enhance every facet of the electric delivery
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It will energize those utility initiatives that encourage consumers to modify
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generation closer to those it serves (think: solar panels on your roof rather
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empower consumers to become active participants in their energy choices
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control of energy usage.
SECTION F
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TH
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neutral organization in charge of reconciling
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and monitors the operation of the power
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one state or several.
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will use the smart distribution system as
another resource for managing a secure and
most economic transmission system. “Lessons
learned” from their experiences in building
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both short-term and long-term.
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Smart Grid will be characterized by a two-way flow of electricity
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and communications to deliver real-time information and enable
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device level.
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24
Demand Profile
KILOWATTS
HOURS of the DAY
13
Imagine that it is a blisteringly hot summer afternoon. With countless commercial
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generation assets that typically sit idle for most of the year without generating revenue
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high cost of meeting peak demand. It gives grid operators far greater visibility into the
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eliminate the need to use existing peaker plants or build new ones – to save everyone
money and give our planet a breather.


part 2:
what the
smart grid isn’t.
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constitute the Smart Grid; a smart meter is a good example of an enabling technology
that makes it possible to extract value from two-way communication in support of
distributed technologies and consumer participation.
As much as “smart
technologies” can enhance this
familiar device, it’s not the same
thing as the Smart Grid.
SECTION F
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TH
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WH
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14
Enabling nationwide use of

plug-in hybrid electric vehicles…
illustrating the opportunities: the smart grid as enabling engine.
SMART
GRID
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an array of technological approaches that will make it work.
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with and intelligently control these innovations and others.
The ultimate success of the Smart Grid depends on the e!ectiveness of
these devices in attracting and motivating large numbers of consumers.
Making large-scale energy
storage a reality…
Making use of solar energy –
24 hours a day…
Allowing the seamless integration of
renewable energy sources like wind…
Ushering in a new era of
consumer choice…
Exploiting the use of green building
standards to help “lighten the load...”
15
C
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A
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The Smart Grid transforms the current grid
to one that functions more cooperatively,
responsively and organically.
SMART GRID FACT
Made possible by a smarter grid, DOE’s

Solar Energy Grid Integration Systems
(SEGIS) is a suite of tools, techniques and
technologies designed to achieve a

high penetration of photovoltaic

(PV) systems into homes

and businesses.
SECTION F
IVE
:
16
Applied across various key constituencies, the benefits of
creating a smarter grid are drawn in even sharper relief.
The Smart Grid as it applies to utilities.

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maintaining and building additional electric infrastructure. The
costs associated with such tasks can run to billions of dollars
annually and the challenges associated with them are enormous.
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future. It is estimated that Smart Grid enhancements will ease
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The more e!cient their systems, the less utilities

need to spend.
Given our nation’s population growth and the exponential
increase in the number of power-hungry digital components in
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approximately $1.5 trillion will be required between 2010 and
2030 to pay for this infrastructure. The Smart Grid holds the
potential to be the most a!ordable alternative to “building out”
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investments that are not typical for utilities. But the overall
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are already discovering.
17
Intelligent
– capable of sensing system overloads and
rerouting power to prevent or minimize a potential outage;

of working autonomously when conditions require resolution
faster than humans can respond…and cooperatively in aligning

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E!cient
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Accommodating
– accepting energy from virtually any fuel source including
solar and wind as easily and transparently as coal and natural gas; capable of
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for example – as they are market-proven and ready to come online
Motivating
– enabling real-time communication between the consumer and utility so
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Quality-focused

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electronics necessary to make it run
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with Smart Grid security protocols
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environmental improvement
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One afternoon in early 2008, the wind stopped blowing in Texas.

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demand response program was initiated in which large industrial and commercial
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for fluctuations in this intermittent resource. Smart Grid principles in action.
The Smart Grid as it applies to consumers.

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unintelligible to consumers and delivered days after the consumption actually
occurs – giving consumers no visibility into decisions they could be making
regarding their energy consumption.
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they also typically include a hefty “mortgage payment” to pay for the infrastructure
needed to generate and deliver power to consumers.
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infrastructure. This item is non-negotiable because that infrastructure – power
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show up on your bill in one way or another. (The only di!erence this time is that
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real-time pricing –

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POWER SYSTEM FACT
In the United States, the average
generating station was built in the
1960s using even older technology. Today, the
average age of a substation transformer
is 42, two years more than their
expected life span.
SECTION F
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18
Now for the good news.
The Smart Grid connects consumers to the grid in a way that

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to help the grid.
Simply by connecting to consumers – by means of the right price signals and

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widespread blackouts.
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reliable – and consumers are compensated for their help.
Enabling consumer participation also provides tangible results for utilities which are
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tapping the collaborative power of millions of consumers to shed load will put
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see what price they are paying for energy before they buy – a powerful motivator toward
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While Smart Grid approaches can’t
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forms of demand response that will
succeed in deferring or avoiding
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The rewards of getting involved.
Smart Grid consumer mantra: Ask not what the grid
can do for you. Ask what you can do for the grid – and
prepare to get paid for it.
19
Given new awareness, understanding, tools and education made possible by a smarter
grid, all consumers will be able to make choices that save money, enhance personal
convenience, improve the environment – or all three.
The message from consumers about the Smart Grid: Keep It Simple.

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with how they live their lives. Consumers are not interested in sitting around for an
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collaboration with the grid to occur automatically on their behalf and saving money
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The Smart Grid as it applies to our environment.

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challenge for the electric power industry in terms of global climate change. Smart
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provides a “window” for them to assess and react to their personal environmental
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to react in near real-time to lessen their impacts.
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criteria pollutants -
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POWER SYSTEM FACT
From 1988-98, U.S. electricity

demand rose by nearly 30 percent,
while the transmission network’s capacity
grew by only 15%. Summer peak demand is
expected to increase by almost 20%
during the next 10 years.
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For utilities, adoption of the Smart Grid clears the air on several fronts.

Energy e!ciency:

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Avoidance of new construction:

Increased asset optimization made possible by a smarter grid means more reliance
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utilities to defer new generation investments or reduce dependence upon sometimes
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The ability to e!ectively manage load with existing transmission and distribution
infrastructure means that – ultimately – utilities would no longer have to build or
could at least defer infrastructure to account for rapidly increasing peak demand.
Integration of renewable energy sources:

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will require advanced energy management techniques and approaches at the grid
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on the grid means that more distributed generation can be integrated within it.
21
Preparation for the future:

A smarter grid is also a necessity for plugging in the next generation of
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to provide services supporting grid operation. Such ancillary services hold
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scheduled for showroom floors by 2010 – may dramatically reduce our
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vehicles were replaced by plug-ins that recharged at night. Such a shift
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However, there is a lot more to realizing this potential than simply
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however – enabled by the Smart Grid – will help manage this new
energy device on already constrained grids and avoid any unintended
consequences on the infrastructure.
smart definition :
off peak
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To get a greener grid, you need

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and desirable components of a cleaner
energy future. To make the grid run
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dealing with the variable nature of
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What might the longer-term future look like?
It is a decade from now.
An unusually destructive storm has isolated a community or
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of distributed resources and standards that support a Smart
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distributed generation to continue to generate power even when
power from a utility is absent. Combining distributed resources
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phone system and the community health center up and running.
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potential resident in the community means that citizens still
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With a smarter grid at work, a community
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23
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a nation with little appetite for monopolies recognized the provision
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or a co-op.
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were provided a return on their investments plus a return on those
investments commensurate with risks they take in ensuring service
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determining whether the investments made were prudent and what

a reasonable return on those investments should be.
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Getting from Point A to Point B – from our
present grid to the Smart Grid – requires
a brief examination of the history and
culture of the industry’s primary custodians;
namely, utilities and regulators.
SMART GRID FACT
The American Public Power
Association (APPA) has launched
a task force to develop a framework for
deploying Smart Grid technologies in

a public-power environment.
SECTION S
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segmented or “siloed.” This division of labor worked well for
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with no need or incentive to be proactive on a national level.
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positioned for integrated strategic initiatives like the Smart Grid
although they have collectively and forcefully advocated in the
past on issues such as security and climate change.
STATES TAKING ACTION:
25
state

amount

year

rps administrator
Arizona

15%

2025

Arizona Corporation Commission
California

20%

2010

California Energy Commission
Colorado

20%

2020

Colorado Public Utilities Commission
Connecticut

23%

2020

Department of Public Utility Control
District of Columbia

11%

2022

DC Public Service Commission
Delaware

20%

2019

Delaware Energy O!ce
Hawaii

20%

2020

Hawaii Strategic Industries Division
Iowa

105 MW



Iowa Utilities Board
Illinois

25%

2025

Illinois Department of Commerce
Massachusetts

4%

2009

Massachusetts Division of Energy Resources
Maryland

9.5%

2022

Maryland Public Service Commission
Maine

10%

2017

Maine Public Utilities Commission
Minnesota

25%

2025

Minnesota Department of Commerce
Missouri*

11%

2020

Missouri Public Service Commission
Montana

15%

2015

Montana Public Service Commission
New Hampshire

16%

2025

New Hampshire O!ce of Energy and Planning
New Jersey

22.5%

2021

New Jersey Board of Public Utilities
New Mexico

20%

2020

New Mexico Public Regulation Commission
Nevada

20%

2015

Public Utilities Commission of Nevada
New York

24%

2013

New York Public Service Commission
North Carolina

12.5%

2021

North Carolina Utilities Commission
Oregon

25%

2025

Oregon Energy O!ce
Pennsylvania

18%

2020

Pennsylvania Public Utility Commission
Rhode Island

15%

2020

Rhode Island Public Utilities Commission
Texas

5,880 MW

2015

Public Utility Commission of Texas
Utah*

20%

2025

Utah Department of Environmental Quality
Vermont*

10%

2013

Vermont Department of Public Service
Virginia*

12%

2022

Virginia Department of Mines, Minerals, and Energy
Washington

15%

2020

Washington Secretary of State
Wisconsin

10%

2015

Public Service Commission of Wisconsin
*

Four states, Missouri,
Utah, Vermont, &
Virginia, have set
voluntary goals for
adopting renewable
energy instead of
portfolio standards
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a pre-determined amount of a state’s energy portfolio (up to 20%) to come exclusively
from renewable sources by as early as 2010.
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the cultures of these entities are now changing dramatically.
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for Smart Grid technologies.
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Smart Grid investments and legacy systems made obsolete by the switch

to “smart meters” and other Smart Grid investments.
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of deployment of a smarter grid could be lost.
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meters only became economic when the commission considered non-utility
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to regulation for value delivery promises to stimulate substantial progress
and alignment around the Smart Grid vision and implementation. Keep in
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value of the investments to consumers – whatever they may be – ultimately
exceeds the costs.
27
SMART GRID FACT
To advance the modernization

of our nation’s electric grid, DOE has
entered into public/private partnerships
with leading champions of the Smart Grid
which include the GridWise Alliance,
EPRI/Intelligrid, and the Galvin
Electricity Initiative.
The industry is not without its role models in this regard.
Consider the ATM.
It is available virtually anywhere. Every

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all was made possible only by industry-wide agreement on
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security to business rules.
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vendors are rapidly aligning and movement toward identifying
and adopting Smart Grid standards is gaining velocity.
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Open architecture. Internet protocol. Plug

and play. Common technology standards.

Non-proprietary. Interoperability.
Fine concepts all, yet one of the reasons
the electric industry has been slow to take
advantage of common technology standards
– which would speed Smart Grid adoption – is
a lack of agreement on what those standards
should be and who should issue them.
SECTION S
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28
DOE lists five fundamental technologies that will drive the Smart Grid:
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electronics and diagnostics
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precise solutions appropriate to any event
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operators and managers quite literally into visionaries when it come to seeing into their systems
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of the Smart Grid that consumers adopt en masse as they did e-mail?
There are plenty of experts who think so.
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charged under EISA (Energy Independence and Security
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preparing a report to Congress recommending areas where
standards need to be developed.


The GridWise Architecture Council is an important resource
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interoperability framework spanning the entire electricity delivery
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and the ZigBee Alliance have enabled a smarter grid to readily
accept innovation across a wide spectrum of applications.
29
Integration in practice.

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motion a sophisticated system that responded to simple instructions set
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and reduce the impact on the grid.
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for utility-scale deployments that are progressively raising the bar on what

is possible and practical.
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30
Steps toward a common “language.”
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also conducting research on key
issues facing the electric power
industry and working towards the
development of open standards for
the Smart Grid. The International
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advancements also in development…
Zero-net energy commercial buildings:

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Grid technologies capable of balancing energy generation and energy conservation.
Superconducting power cables:

Capable of reducing line losses and carrying 3-5 times more power in a smaller

right of way than traditional copper-based cable.
Energy storage:

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holds promising potential for positively a!ecting peak load today. Also of note is the
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power to flow over existing lines.

Another look at the future: PHEV (Plug-in Hybrid Electric Vehicles)

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vehicles o!er consumers the opportunity to shift use of oil and gasoline to electricity
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on fossil fuels increases our energy independence as well as our environmental
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grid support during the peak periods.
31
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The Department of Energy is actively
engaged in supporting a wide variety of
Smart Grid projects. The role of DOE is to
act as an objective facilitator, allowing the
best ideas to prove themselves. Smart Grid
e"orts are well underway on several key
fronts, from forward-thinking utilities to

the 50
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state.
SMART GRID FACT
States such as Texas, California,
Ohio, New Jersey, Illinois, New York
and others are already actively exploring
ways to increase the use of tools and
technologies toward the realization
of a smarter grid.
SECTION
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32
Distribution Management System (DMS) Platform by the University of Hawaii
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home energy management by consumers and for improved distribution system operations by utilities.
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entities in the bulk grid.
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conservation and demand response practices based on their personal preferences.
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various types of end-users and their needs without fail. The functionalities of such a system will be
enabled by the Smart Grid.
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microgrids responding to grid conditions and providing increased reliability and demand reduction.
This prototype model will be demonstrated at the IIT campus to showcase its operations to the
industry. The model is designed to be replicable in any municipality-sized system where customers
can participate in electric market opportunities.
33
West Virginia Super Circuit by Allegheny Energy

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with improved reliability and security through integration of distributed resources
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restoration with minimized impact to customers.
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from the utility seamlessly with little or no disruption to the loads within it and
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utilities – proving the e!ectiveness of integrating multiple distributed energy resources
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Beach Cities will serve as a guide for improved asset use as well as for operating the
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34

High Penetration of Clean Energy Technologies by The City of Fort Collins

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system by developing and demonstrating an integrated system of mixed distributed
resources to increase the penetration of renewables – such as solar and wind – while
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The resources being integrated include:



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produce between 25 kW and 500 kW of power)



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ancillary-services role



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resources based on system performance and economics.
35
E
DI
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ON UN
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I
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When Smart Grid implementation
becomes reality, everyone wins –

and what were once our risks become
our strengths.
SECTION
NINE
:
36
LET’S REVISIT THAT LIST:
EFFICIENCY:
It is estimated that tens of billions of dollars
will be saved thanks to demand-response programs that
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human intervention or behavior change. The dramatically
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responds to problems rapidly reduces wide-area blackouts to
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AFFORDABILITY:

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techniques will also provide customers with new options for
managing their own electricity consumption and controlling
their own utility bills.

SECURITY:
The Smart Grid will be more resistant to attack
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protection and control.
ENVIRONMENT/CLIMATE CHANGE:
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be integrated into the nation’s grid. We reduce our carbon
footprint and stake a claim to global environmental leadership.
NATIONAL ECONOMY:
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enable markets to grow unfettered and innovation to flourish.
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of the opening of the telephone industry in the 1980s. With
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of consumer-centric products and services transformed it into
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GLOBAL COMPETITIVENESS:

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and wind will create an enduring green-collar economy.
37
“We are being

presented with unprecedented
opportunity and challenge across
our industry. By coming together
around a shared vision of a smarter grid,

we have an equally unprecedented opportunity
and challenge for shaping our industry’s

and our nation’s future.”

ST
E
V
E
N

G

H
A
US
ER
president,

the gridwise alliance
SECTION
NINE
:
C
ONTINUED

E
DI
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ON UN
B
O
U
ND:
WH
A
T’S
Y
OU
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S
T
A
K
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I
N
A
LL TH
IS
?
38
TODAY’s GRID. AND TOMORROW’s.
Characteristic
Today’s Grid
Smart Grid
Enables active participation

by consumers
Accommodates all generation

and storage options
Enables new products, services

and markets
Provides power quality for the

digital economy
Optimizes assets & operates
e!ciently
Anticipates and responds to system
disturbances (self-heals)
Operates resiliently against attack

and natural disaster
Consumers are uninformed and

non-participative with power system
Dominated by central generation- many
obstacles exist for distributed energy
resources interconnection
Limited wholesale markets, not well
integrated - limited opportunities for
consumers

Focus on outages - slow response to power
quality issues
Little integration of operational data with
asset management - business process silos
Responds to prevent further damage- focus
is on protecting assets following fault
Vulnerable to malicious acts of terror and
natural disasters
Informed, involved, and active

consumers - demand response and
distributed energy resources.
Many distributed energy resources

with plug-and-play convenience focus

on renewables
Mature, well-integrated wholesale
markets, growth of new electricity
markets for consumers

Power quality is a priority with a variety
of quality/price options - rapid resolution
of issues
Greatly expanded data acquisition of
grid parameters - focus on prevention,
minimizing impact to consumers
Automatically detects and responds
to problems - focus on prevention,
minimizing impact to consumer
Resilient to attack and natural disasters
with rapid restoration capabilities
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entirely new business models and sweep across society with surprising speed.
Consider for a moment your iPod, YouTube, internet banking…
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would engage as seriously with the internet as they have. And no one could
have predicted the revolutionary advancements it has fostered.
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aspects of our lives.
The Smart Grid represents the relatively simple extension of this movement
to power consumption.
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and innovation that drive the Smart Grid. He might even ask what took
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regulations are aligning to bring the Smart Grid to full implementation. Its
success is imperative to the economic growth and vitality of America far

into the future.
We hope that
The Smart Grid: An Introduction
has given you a clearer
understanding of the need for immediate and concerted action in the
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the websites listed on the following page.
“If we all did the things we are capable of doing,

we would literally astound ourselves.”




thomas a. edison (1847-1931)
39
S
OU
RCE
S
Sources for this book include the Department of Energy, the GridWise Alliance, the Galvin Electricity Initiative
and EPRI/Intelligrid.
RE
SOU
RCE
S
2007 INTERGRAPH ROCKET CITY GEOSPATIAL CONFERENCE:


Presentation:

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COLUMBIA UNIVERSITY
1

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EEI :


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 _kkg1&&nnn%\\`%fi^&dX^Xq`e\&\[`kfi`XcVZfek\ek&efeXmVjkfi`\j&)'',$'($'($JdXik\i%g[]

ENERGY FUTURE COALITION :


Smart Grid Working Group:

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Reports:

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 _kkg1&&\e\i^p]lkli\ZfXc`k`fe%fi^&glYj&GADjdXik^i`[%g[]
ELSTER:

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 _kkg1&&nnn%\\`%fi^&`e[ljkipV`jjl\j&\c\Zki`Z`kpVgfc`Zp&]\[\iXcVc\^`jcXk`fe&[\Z`[`e^VfeVjdXikVd\k\ij%g[]

GRIDPOINT
1

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NATIONAL ELECTRICAL MANUFACTURERS ASSOCIATION:


Presentation:

_kkg1&&nnn%e\dX%fi^&^fm&\e\i^p&jdXik^i`[&lgcfX[&Gi\j\ekXk`fe$JdXik$>i`[%g[]
NATIONAL ENERGY TECHNOLOGIES LABORATORY:


Presentation:

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THE PEW CENTER ON GLOBAL CLIMATE CHANGE:


Workshop Proceedings:

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SAN DIEGO SMART GRID STUDY
1

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SMART GRID NEWS:
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XCEL ENERGY:


Smart Grid City Web site:

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EPRI INTELLIGRID
1

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PNNL GRIDWISE:
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SMART GRID TASK FORCE:
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SMART GRID:
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GRIDWISE ALLIANCE:
www.gridwise.org
GRID WEEK:
www.gridweek.com
40
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ISTRIBUTED
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ENERATOR
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characteristics of these generators include: an operating strategy that supports the served load; and interconnection to a distribution or sub-
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D
ISTRIBUTION
:
The delivery of energy to retail customers.
D
ISTRIBUTION

SYSTEM
:
The portion of the transmission and facilities of an electric system that is dedicated to delivering electric energy
to an end-user.
E
LECTRIC

GENERATION

INDUSTRY
:
Stationary and mobile generating units that are connected to the electric power grid and can generate
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generators include electric utilities and independent power producers.
E
LECTRIC

POWER
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The rate at which electric energy is transferred. Electric power is measured by capacity and is commonly expressed in
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E
LECTRIC

POWER

GRID
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A system of synchronized power providers and consumers connected by transmission and distribution lines and operated
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LECTRIC

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The degree to which the performance of the elements of the electrical system results in power being delivered
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on consumer service.
42
41
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UTILITY
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DEMAND
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facilities.
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without explicit consideration for the timing of program-induced savings. Such savings are generally achieved by substituting technologically
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management programs.
E
NERGY

SERVICE

PROVIDER
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An energy entity that provides service to a retail or end-use customer.
F
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R
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C
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ENERATION
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expressed in kilowatthours.
G
LOBAL

WARMING
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An increase in the near surface temperature of the Earth. Global warming has occurred in the distant past as the result
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G
REENHOUSE

GASES
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and a tendency to warm the planet’s surface.
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NTERMITTENT

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GENERATOR

OR

INTERMITTENT

RESOURCE
:
An electric generating plant with output controlled by the natural
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LOAD
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INE

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OAD
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the energy-consuming equipment of the consumers.
L
OAD

CONTROL

PROGRAM
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A program in which the utility company o!ers a lower rate in return for having permission to turn o! the air
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O
FF

PEAK
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for each individual electric utility.
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di!er for each individual electric utility.
O
UTAGE
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42
43
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hydroelectric equipment normally used during the peak-load periods.
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loads. Some generating equipment may be operated at certain times as peaking capacity and at other times to serve loads on an around-the-
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R
ATE

BASE
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rate base generally represents the value of property used by the utility in providing service and may be calculated by any one or a combination
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R
ATE

CASE
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ATE

FEATURES
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R
ATE

OF

RETURN
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The ratio of net operating income earned by a utility is calculated as a percentage of its rate base.
R
ATE

OF

RETURN

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RATE

BASE
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R
ATE

SCHEDULE
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ELECTRIC
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customer. Approval of the schedule is given by the appropriate rate-making authority.
R
ATEMAKING

AUTHORITY
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ATES
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customer.
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ENEWABLE

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Energy resources that are naturally replenishing but flow-limited. They are virtually inexhaustible in duration
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ARIFF
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A published volume of rate schedules and general terms and conditions under which a product or service will be supplied.
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The rate charged by an electric utility for service to various classes of customers. The rate reflects the di!erent costs of
providing the service at di!erent times of the day.
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RANSMISSION

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DISTRIBUTION

LOSS
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RANSMISSION
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The movement or transfer of electric energy over an interconnected group of lines and associated
equipment between points of supply and points at which it is transformed for delivery to consumers or is delivered to other electric systems.
Transmission is considered to end when the energy is transformed for distribution to the consumer.
U
TILITY

GENERATION
:
Generation by electric systems engaged in selling electric energy to the public.
UTILITY-SPONSORED CONSERVATION PROGRAM:
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generators.
www.energy.gov