Who is CenterPoint Energy?

peanutplausibleElectronics - Devices

Nov 21, 2013 (3 years and 9 months ago)

66 views

…and potential cyber security challenges

Valentine Emesih

April 4, 2013


Natural gas sales and delivery


Over 3.2 million residential, commercial and
industrial customers in six states


Competitive gas services (CES)


Over 25,000 commercial, industrial and
wholesale customers across central U.S.


Electric transmission and distribution


Over 2.2 million meters in the Houston area


17.2 GW peak demand


Interstate natural gas pipelines


Two pipelines in the mid
-
U.S., connecting to
over 20 other pipelines


Natural gas gathering and processing


150 separate systems in major producing fields
in Arkansas, Louisiana, Oklahoma and Texas

2

Who is CenterPoint Energy?

A domestic energy delivery company

The Texas electric market

Restructured in 2002 for retail competition

Retail Electric
Providers (REPs)

Power Generating Companies

Transmission and

Distribution
Utilities (TDUs)

Regulated


Own and maintain

power lines


Deliver power to

customers


Read meters


Restore power

after
outages


Execute Service

Orders

Residential
Customer

Commercial

Customer

Step
-
down

Substation

Unregulated

Unregulated


Compete for

customers


Bill customers


Issue disconnect ,

reconnect orders

to TDUs

3

http://smartgrid.ieee.org/ieee
-
smart
-
grid/smart
-
grid
-
conceptual
-
model

Smart Grid Conceptual Model
-

NIST

http://smartgrid.ieee.org/ieee
-
smart
-
grid/smart
-
grid
-
conceptual
-
model

Electricity Distribution

Customer

http://smartgrid.ieee.org/ieee
-
smart
-
grid/smart
-
grid
-
conceptual
-
model

Operations

Market

http://smartgrid.ieee.org/ieee
-
smart
-
grid/smart
-
grid
-
conceptual
-
model

Communication Layer

IT/Computer Layer

Power and Energy Layer

System of Systems

CenterPoint Energy’s smart grid


A
dvanced
M
etering
S
ystem


2.2

+

million meters installed


219
+

million meter reads / day


97
% service orders
electronic


Consumers save $35 million in fees


4 million remote service orders


293,000 gallons of gas saved /
yr


2,500 tons of CO
2
prevented /
yr


Usage data
-

smartmetertexas.com


600,000 Texans get 15
-
minute
usage data


15,000 In
-
Home Displays in TX






Distribution Automation


Field equipment


Automated switching devices


Line monitors


Substation monitoring


Implement Advanced Distribution
Management System (ADMS)


Leverage AMS investment


Common telecommunications
network for AMS and IG


AMS meter data feeds outage
analysis module of ADMS



4

CNP’s Advanced Metering System

View construction at
YouTube.com/
CenterPointEnergyVid


Combined with back office computer systems and integration, our AMS provides:


Daily register reads


Daily 15 minute interval reads



Remote connect / disconnect / on
-
demand reads


Access to data via Smart Meter Texas portal

Data Collection
Engine

(Itron DCE 3.0
SP1)

Digital
Communications
Backhaul

Meter Data
Management
System

(eMeter MDM 6.2)

Legacy
Systems

Wireless Communications
Environment

(GE WiMax with GSM
Backup)

Smart Meter
Texas Portal

Existing

Recently
Deployed

Legend

Itron Open Way

HW 2.0 SR 3.0

11




Meters
-

Provisioned, accepted and approved


2,283,012


Cell Relays
-

Installed in production


5,434


Take Out
Points
-

Installed in production


140
(132 AMS, 8 IG)


Service orders completed electronically


4,073,075


96.9%

of service orders successfully executed electronically


Significantly reduced windshield time for readings and service orders


Average electric service order completion time is 30 minutes


Enabled extended working hours & shortened order execution times


Smart Meter Texas Portal makes consumption data available to


Retail Electric Providers (REP)


Over 2 million customers in the CNP service territory


Over 600,000 consumers get consumption data directly from SMT or indirectly
,


for example in an email from their REP








AMS Successes

Meter Deployment is Complete


12

Consumer benefits of smart meters


Available
NOW


Remote meter reading, on demand re
-
reads, fewer estimated reads


Faster, cheaper automated move
-
in/out, switching


Pre
-
paid service, time
-
of
-
use rates


15
-
minute usage data to promote energy conservation via

www.SmartMeterTexas.com



Energy analysis and cost comparison
tools


Easier integration of
distributed generation

and renewables


Available
SOON


Automatic outage notification


Available in the
FUTURE


Support for plug
-
in hybrid electric vehicles


Consumer remote control of thermostats and appliances (HAN)


Energy management systems

6

Some Components of our

Intelligent Grid (IG)

Combined with back office computer systems, our
IG technology, when fully
deployed, will automatically identify the location of power outages, isolate faulted
sections of the main feeder portion of the network and re
-
route power from other
sources, essentially automatically restoring as much of the system as possible.

14

While
P
hase

1 covers about 15

percent of CenterPoint Energy’s service area, some
of the improvements will benefit consumers in the entire system.

2010
-
2014 Deployment of the

Intelligent Grid


IG Infrastructure


Automate up to 29 substations


Smart Relays & Transformer Monitors


18 substations complete through 9/30/12, remainder by YE 2013


Install about 625 intelligent grid switching devices (IGSD) on about 230 distribution circuits


Provide Remote/Automated Switching Capabilities


Include Distribution Line Monitoring, Dual Communications Capabilities, Physical &
Cyber Security Provisions, etc.


293 IGSDs installed through 9/30/12, 374 by YE 2012, Remainder in 2013


Implement an Advanced Distribution Management
System (ADMS)


Leverage AMS Communications Investment


Common telecommunications backhaul network for AMS and IG


AMS meter data feeds outage analysis module of ADMS

15

Consumer Benefits of Intelligent Grid

View demo at
YouTube.com/
CenterPointEnergyVid


Initial Benefits


More precise identification of outage
locations, resulting in faster
restoration of electric service


Reduction in time required to perform
circuit switching

to isolate fault



Long
-
term Benefits


Improved reliability and faster
restoration, especially during major
weather events


Enhanced and improved customer
communications and notifications

Following Hurricane Ike in 2008, the Mayor’s Task
Force concluded that a smart grid “offers the best
return
-
on
-
investment for improving grid resilience
and enabling storm recovery system
-
wide” and that
“[f]
inding

the means to accelerate CenterPoint
Energy’s deployment of intelligent grid technology in
the Houston area is the Task Force’s strongest
recommendation.”


It

has been estimated that full intelligent grid
functionality could improve reliability by up to 30%.

16

Water

Heater

Zigb
ee

Compressor

Pool

Pump

Smart

Thermostat

Energy Management and Conservation via
a HAN for in
home devices

RF
(
Radio
Frequency)

Home Area Network (HAN)

Enabled by AMS communications system

17

Challenges


First
-
of
-
a
-
kind

deployment


Performance at

o
perational

scale


Knowledge transfer


Subject matter expertise


Volume of data


Business transformation


Process change activities


Need to consistently engage employees


Consumer education and myth
-
busting



13

Consumer / Data Privacy


Statutes and rules state that meter data belongs to the
customer


Market rules also recognize various market participants’
need for meter data in order for the market to function


Usage data, including historic data, is available to
customer, TDU, and the retailer of record


Data is available to other parties only with customer
permission


P
ersonal
information such as
social
security number is not
in the
system

15

Components of Cyber Security
Strategy


Prevention


Reduce risks and vulnerabilities


Intervene and stop attempted occurrences


Mitigate effects


Detection


Identify
a
nomalous behavior


Detect malicious code and other events


Gather digital evidence


Response


Address short
-
term direct effects of incident (public safety et al)


Recovery


Restore normal operation & Address issues

CenterPoint

Energy’s Cyber Security
Perspective


Collaboration is Key:


cyber
threats are evolving
and require
collaboration, information
sharing with the government and continued
collaboration with
the
industry to effectively protect the nation’s critical infrastructure.


Our
goal is to
focus our
resources on facing the cyber threat
.


Our Cyber efforts parallel our corporate philosophy:


Public Safety


Energy Delivery Reliability


Customer Service


Cyber Security Efforts


We are entrenching a strong cyber
s
ecurity culture:


Protection of customer privacy, and other essential information


Cyber security is incorporated into our process, procedures, and
operation through various mechanisms over time


We have evolved from “perimeter defense” to “defense
-
in
-
depth”
and maturing to an “agile defense” posture


Established talents and tools to assist our current efforts


Continuously educating our workforce


Be aware and be the first
line of defense


We recognize our efforts need to evolve to match ever
-
changing
threats


Enhancing system resiliency to cyber incidents


Identifying and coordinating activities with the right stakeholders

Cyber Security Participant
Observations


Shared Goals


Risk Based Approach


Information Sharing and Situational Awareness


Leveraging Tools and Techniques


Security Clearance


Cyber Security Regime


Incident Management


Collaboration

24

What’s Next?

Smart Meters Are Just The Beginning

HAN Devices

Smart Appliances

Smart Meter Texas Portal

Intelligent Grid

Phase 1:

Customer

Insight

Smart Meters

Storage

Electric vehicles

Phase 2:

Customer

Engagement

Micro Grids

Aggregated Demand Management

Phase 3:

Customer

Co
-
Creator

of Value

2010

2020

2014

2013

2012

2011

Price control / load control

Advanced Grid

24

Conclusion


“We
take seriously the responsibility of protecting our
customers, employees, assets,
and communities
in which
we operate, and thus cyber security is a top priority for
CenterPoint

Energy
.


We
also recognize the importance of critical infrastructure
to our national
security. Because
cyber threats are
constantly changing and evolving, we support voluntary
programs that
encourage partnership, collaboration,
sharing of information and technology, and
the
preparedness
necessary to mitigate and respond to the
ever changing nature of cyber attacks
.”



Gary W. Hays, VP & CIO Centerpoint Energy

DOE Acknowledgement and
Disclaimer


Per the DOE Grant Agreement,:


“If you publish or otherwise make publicly available the results of the work conducted under the
award, an acknowledgment of Federal Support and a disclaimer must appear in the publication of
any material, whether copyrighted or not, based on or developed under this project, as follows:”


Acknowledgment: “This material is based upon work supported by the Department of Energy under
Award Number [DE
-
OE0000210]”


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 any of their
employees, makes any warranty, express or implied, or assumes any legal liability or responsibility
for the accuracy, completeness, or usefulness of any information, apparatus, product, or process
disclosed, or represents that its use would not infringe privately owned rights. Referenced 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. The views and opinion of authors expressed
herein do not necessarily state or reflect those of the United States Government or any agency
thereof.”


32

VALENTINE.EMESIH@CENTERPOINTENERGY.COM

Youtube.com/
CenterPointEnergyVid

Twitter.com/
energyinsights

Facebook.com/
CenterPointEnergy

Appendix


Lessons learned / keys to success


Strong
governance

processes:


Risk
-
, Change
-
, and Financial management


Project planning/scheduling, metrics/benefits reporting


Technical

architecture, etc.


Integrate

and
align

project team, vendors and support functions


Well defined
standards

and
deployment

plan


Consumer
engagement plan


Early planning of
transition
from project to operations


Strong industry
collaboration



EEI


EPRI


DOE


SGIP

17

Smart meters are

accurate and secure

CenterPoint Energy takes the accuracy of its meters very seriously, which is why
we have in place a rigorous testing and quality assurance process:


Meter testing by the manufacturer at the plant and by CenterPoint Energy


Comparison testing of smart meters vs. traditional meters


Independent third
-
party accuracy tests


Digital photos of removed meters to verify final readings


Individual smart meter accuracy tests upon customer demand


Independent meter software review


Comprehensive cyber security program based on national standards


Energy usage data belongs to the consumer:


shared only when authorized in writing by the customer


or authorized by regulatory authorities as necessary to conduct business (such as
for billing).


Most likely cause of high bills is increased usage (e.g. heating/cooling)




14

Health and safety

Exposure
to RF emissions from
digital meters is
much
less
than:


Televisions and remote controls


Cellular telephones


Bluetooth earpieces and
USB


Cordless
telephones


Laptop computers


WiFi

routers and base stations


Wireless smoke detectors


Microwave ovens


Remote garage door openers


Remote keyless automobile
systems


Motion detectors


Hair dryers


Wireless baby monitors


cell phone

smart meter

16

Successes and recognition

Sharing our experience with the industry


More than 730 tours of our Energy
InSight
sm

technology center


Take a virtual tour at
YouTube.com/
CenterPointEnergyVid
.


Articles, white papers, webinars,
presentations, documentaries


Intelligent Utility, Transmission & Distribution World, Energy Central …


World Energy Council, the White House,
GridWise
,
Distributech
, PBS


Collaborations


Smart Grid Energy Training Coalition


Itron

OpenWay

Executive Forum


EEI Smart Grid Advisory Group


Smart Grid Consumer Collaborative




U.S. Dept. of Energy


cyber security, green
button


2011 survey of CNP customers shows 80% approval of smart meters

“CenterPoint Energy is on the point of the spear in teaching the rest of the

United States and the world how we can work with consumers to enhance their
electrical usage …”
U.S. Secretary

of the Interior Ken Salazar

18

The future


Integrated advanced transmission, distribution, and meter
management and control system


Advanced analytical applications which create new
operations
-
, customer
-
, and market
-
based solutions


Two
-
way, real
-
time customer engagement/communication
system


Business transformation initiatives that advance
processes and create new business outcomes


Aggregated demand response platform to enable virtual
supply of generation



19

Some collaboration stakeholders