David I. McGeown "Where's the value in on site generation? Can real time metering and dispatch make a difference?

Curtailment programs have struggled  Simple principle, tough execution  Uncertainty prevails  Who will actually run? What price?  Potential penalties vs benefits  Programs have not understood the customer’s operational issues  Bottom line – no pain yet  Running generators for pay isn’t a priority  HOW DO WE MAKE IT EASIER?

Making it easier  Avoid penalties  Participate in a pool of loads  Let customers run their business  They don’t like to surrender operations  Show customers actual performance in real time  Allows for corrections  “Big brother” is watching  Showing the $$ increases confidence

Curtailment with back up generation  Energy contract with curtailment  Primary product is energy  On site generation or reductions are used to shape loads during summer peaks  Contract terms  Supplier gets firm base load pricing  Supplier sells energy released  Failure to run may incur peak penalties

How does it work? Alert Generators on line Energy price peaks Energy sold on the open market Benefit = peak price – cost to generate

What if it does not work? Energy has to be replaced at peak pricing The silk purse has turned into a sow’s ear WHAT IF …. We knew before it is too late? We can react to mitigate the loss Loss = (peak price – cost to generate) x kWh Could wipe out the benefits for a season

Failure to run is a big risk  Decision making  Customers who want to participate are energy buyers  Different people run the generators  Their interests ARE NOT aligned  Once a commitment is made, knowing what happened is essential  Rapid reaction to a problem is key  Internet metering helps

Real time data can help  If generators don’t run  make reminder calls  bring on back up resources  Use meters to confirm response and record actual performance  Send the notification to run  Customer and supplier can see the generators came on and how much they are producing

Real time data can help  Seeing the $$ same day makes a big difference to participation  Use meters to record actual performance  Monitor kWh  Monitor pricing  Calculate benefit on the fly  Customer and supplier can see the value created

Components Customers Database Data over the Internet Desktop tools LAN gateway Web hosted Information applications IP meters IP

ON LINE DEMONSTRATION

Curtailment on-line screen shot Generator kWh PJM peak pricing Generator revenueTotal revenue, all meters

Internet metering  Combining Internet, data management and information  improve the speed and quality of energy information via the Internet.  Open systems create new opportunities for any application developer to easily interrogate data without having to get support from the suppliers.

Today’s metering  Current metering infrastructure struggles to meet new needs  Data on demand  Multiple users, not just the utility anymore  Open systems  Out with proprietary, in with innovation  The Internet offers solutions

Overcoming barriers  Cost of communications  Use the client’s Internet  Connection complexity  Use DHCP for simplicity  Cost of the technology  Adding Ethernet is very low cost  The data will overwhelm us  No they won’t

Adopting accepted standards  ANSI for open metering standards  IP meters - fully self-contained, revenue class, 100% ANSI standards compliant, open architecture electric meters are now available to reliably deliver real time data database software.

Adopting Internet standards  Open communication -TCPIP  Independent of the medium – fiber, wireless, telephone  Leverages billions of dollars in technology development  Using integrated web server, FTP server and clients allows bi- directional communication.

The author David leads business development at EnergyTracking We provide the underlying technology that enables utility service providers to stream reliable, accurate, secure, real- time usage data over the Internet, thus allowing additional value creation from energy markets. David has over 20 years experience in the energy field. David’s roles in the energy world span research and development, sales and marketing and construction; with oil companies, technology companies and inside the world of regulated utility companies. David lives in New Jersey with wife Susan and three great kids Ian, Grace and Luke.