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Nov 21, 2013 (3 years and 6 months ago)

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Maryland’s Grid Modernization
Experience

Presentation for the New England
Electricity Restructuring Roundtable


Kelly Speakes
-
Backman

Boston, MA

September 20, 2013

2

EmPOWER Maryland Energy Efficiency Act


Enacted:

April 2008 (PUA
§

7
-
211)



15% by 2015:
per capita energy consumption reduction by 2015


2117 MW


5,475,000 MWh



Multi
-
faceted :
Cost
-
effective programs for energy efficiency (EE), demand
response (DR), distributed generation, CVR, and AMI/Smart Grid



Verifiable:
§
7
-
211(g)(1) requires projected & verifiable electricity savings



Three year plans:
2009
-
2011, 2012
-
2014 plans developed as Work Group
recommendation of PSC Staff, OPC, MEA, Utilities and other stakeholders



Reporting:
Quarterly data to Staff, semi
-
annual reports to the Commission

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Scope of EmPOWER Maryland


Includes Energy Efficiency (EE), Demand Response (DR) & Smart Grid (SG)


2012


2014 program portfolios $695m in EE/DR Programs


2009


2015 projected to exceed $1b (not including SG)

Grid
-
Facing


AMI (BGE, Pepco, DPL, SMECO)


Conservation Voltage
Reduction (Pepco, DPL, PE)


Customer
-
Facing


Lighting & Appliance rebates


HVAC


HPwES (existing homes, whole
-
house)


Residential New Construction


C&I prescriptive measures (lighting,
HVAC, motors, VSD, custom retrofits,
CHP)


Low
-
income


Multi
-
family housing (e.g., common
-
area EE measures)


Direct Load Control

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Energy Reduction
Program-to-Date,
September 30, 2012
2015 Goal (MWh)
Percentage of 2015
Goal
BGE
1,231,156
3,593,750
34%
Pepco
424,839
1,239,108
34%
PE
176,686
415,228
43%
DPL
75,724
143,453
53%
SMECO
87,630
83,870
105%
Utility Program Achievement of the 2015 Energy Reduction Goal
Demand Reduction
Program-to-Date,
September 30, 2012
2015 Goal (MW)
Percentage of 2015
Goal
BGE
726
1,267
57%
Pepco
188.357
672
28%
PE
24.511
21
117%
DPL
39.765
18
221%
SMECO
56.558
139
41%
Utility Program Achievement of the 2015 Peak Reduction Goal
EmPOWER Maryland Progress

Cost Recovery Mechanisms


Customer
-
Facing Portfolios: monthly surcharges

2012 Residential
Avg

Monthly Impacts

2012
C&I Consumption Charge (per kWh)







Grid
-
Facing Programs: regulatory asset


Smart grid utilities will use AMI
reg

asset


Non
-
smart meter utilities will recover in rate base (PE)


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Utility
EE&C
DR
Total
BGE
$1.28
$0.75
$2.03
Pepco
$1.13
$1.53
$2.66
DPL
$1.07
$1.89
$2.96
PE
$1.67
n/a
$1.67
SMECO
$1.52
$1.47
$2.99
Utility
EE&C
DR
BGE
$0.000870
N/A
PEPCO
$0.000831
$0.000101
DPL
$0.000430
$0.001055
PE
$0.000754
N/A
SMECO
$0.000180
$0.001470
Maryland Smart Grid Context


Introduced in the context of EmPOWER


No legislative mandate or specific guidelines set forth


BGE and Pepco each received up to $200m ARRA Smart Grid
Investment grants


All Maryland AMI proposals were preceded by pilot projects,
including:


Technology pilots


Multi
-
year peak pricing pilots


Operational benefits pilot

6

Maryland
Smart Grid Business
Cases


BGE, Pepco, DPL proposals estimated strong cost
-
effectiveness


Roughly half the benefit from operational savings and half from peak
load reductions (mostly capacity benefits)


Dynamic pricing using peak time credit approach to achieve usage
reductions during critical peaks


SMECO cost effectiveness positive


Includes operational benefits only


Did not include peak load reduction savings


Possible time of use rates in the future

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Maryland Commission Decisions


Cost recovery contingent upon demonstrated cost
-
effectiveness


Smart grid expenditures may be requested in first rate case
following full deployment and cost
-
effectiveness analysis


Plans and Metrics


55 total metrics


Metrics monitor deployment progress, costs/benefits, customer
engagement


Customer education plans


Cyber
-
Security plans

8

Maryland Smart Grid Progress


BGE


1.2 million electric & 660,000 gas meters


Roughly 33% of installations completed, complete in 2014


Pepco
-
MD (PHI Affiliated)


550,000 electric meters in Maryland (largest jurisdictional PHI utility)


Preceded (one year) by full implementation in Pepco
-
DC


98% complete by June 2013


DPL
-
MD (PHI Affiliated)


210,000 electric meters in Maryland


DPL
-
DE completed full implementation (electric and gas) in 2012


Installations underway, complete late 2013/early 2014


SMECO


160,000 electric meters


Approved Summer 2013

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Maryland Smart Grid: AMI


AMI overall benefits


Reliability (duration)


Demand reduction


Energy use information transparency


New technology advances and applications


Forecasted Smart Grid demand reductions through 2017
(MW)

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Leveraging EmPOWER and AMI


Dynamic Pricing


Direct load control


Peak time rebates


Time of use pricing


Real
-
time pricing


Conservation Voltage Reduction (“CVR”)


Behavior
-
based EE programs


Electric Vehicles and the Grid

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Maryland Smart Grid: Dynamic Pricing


Dynamic pricing includes DLC, PTR, TOU, real time pricing



Peak event days


Includes PJM DR days, high LMP days, and could include distribution
problem days


In most cases,

declared for the following day


Generally declared June


Sept.


Maximum hours are 12pm


8pm,
usually actual is less


Multiple customer communication streams in advance


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Maryland Smart Grid:
Direct Load Control


DLC program reductions approximately 700 MW


BGE “Smart Energy Rewards”


Voluntary


“Opt
-
in” for residential


100%, 75%, 50% option


PHI “Peak Energy Savings Credit”


Voluntary


“Opt
-
in” for residential, small commercial


100%, 75%, 50% option


$1.25/kWh during peak period


Reductions monetized in PJM capacity and energy markets


True
-
up in annual distribution surcharge/credit

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Maryland Smart Grid:
Peak Time Rebates


$1.25/kWh credit for reduction from customer
-
specific
baseline


Calculates usage difference from a comparable degree
-
day


Cash flow similar to DLC programs


Peak load reductions monetized in PJM capacity and energy markets


PJM payments fund customer credits


True
-
up in annual distribution surcharge/credit


Can augment DLC programs


If monthly reduction exceeds DLC commitment, customer receives
end
-
of
-
season credit for the difference


No penalty for non
-
participation


Retail supply neutral


except for customers whose supplier
provides their own PJM based load reduction program


14

Maryland Smart Grid: CVR


PE received approval to implement CVR program under
its EmPOWER portfolio


Recovery of program costs will be sought in rate base after full
implementation



Commission Order No. 84569 directed other utilities to
investigate feasibility of implementing CVR in respective
service territories (Dec. 22, 2011)


Directed recovery of program costs to be sought through rates

15

Maryland Smart Grid:
Behavior
-
based EE


Behavior
-
based programs encourage direct customer
engagement


April 2012: Commission authorized EmPOWER utilities to
implement energy usage programs

16

Metric:
Participants
Annualized
Energy
Savings
(MWh)
Peak
Demand
Reduction
(MW)
Total
Program
Expenditures
Forecasted
50,000
5,126
0.000
$381,327
Reported
50,198
5,517
2.427
$617,669
Forecasted
25,000
1,809
0.000
$154,888
Reported
24,024
0
0.000
$350,981
Forecasted
25,000
9,398
1.071
$412,749
Reported
72,697
11,824
0.111
$588,530
Forecasted
12,500
3,888
0.445
$114,440
Reported
51,486
1,769
1.592
$304,983
Behavior-Based Residential Program Results
(Net Wholesale 2013 Q1 and Q2)
SMECO
PE
DPL
Pepco
Maryland Smart Grid: Electric Vehicles


Maryland Senate Bill 179 (2011)


Establish “a Pilot Program for electric customers to recharge electric
vehicles during off
-
peak hours.”


Pilot Program in place June 30, 2013


Report findings to General Assembly by February 1, 2015


Increase efficiency and reliability of electric distribution system


Encourage lower electricity use at times of high demand


BGE Pilot Program: voluntary, residential, TOU rate


Based on whole
-
house TOU with lower off
-
peak pricing (400)


Pepco Pilot Program: voluntary, residential options


Existing customers
with

EVSE: whole
-
house TOU or PIV rate (200)


Existing customers
without
EVSE: PIV rate and bill, Level II charging
station, second meter (50)


New customers
without

EVSE: whole
-
house TOU (1000)

17

Maryland Smart Grid: Opt
-
out?


Jan. 7, 2013: Order No. 85294


Commission concluded (3
-
2) that the public interest requires provision
of additional option related to installation of smart meter


Additional proceedings held August 20, 2013


Whether to allow option to retain existing meter, RF
-
free or “near RF
-
free” meter


Associated costs, allocation and procedures for exercising option


Treatment of “non
-
responsive” customers


What percentage opt
-
out scenario to consider


Low
-
income opt
-
out scenarios

18

Maryland Smart Grid: Cyber
Security Plans


Company
-
specific AMI cyber security plans


Plans apply to AMI, not utility
-
wide operations


Work Group consensus support


Commission oversight plan applicable to BGE, Pepco, DPL


Key feature is independent 3
rd

party consultant answerable to PSC to
review all details of utility AMI cyber security activities and incidents


Approved by Commission June 21, 2013

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For more information…

www.psc.state.md.us





SMECO Operational Pilot Results

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