1 SIMPLIFIED VOLTAGE OPTIMIZATION M&V PROTOCOLS Regional Technical Forum August 4, 2009

2 NEEA Distribution Efficiency Initiative Overview Phase 1 – Development ( ): Confirmation and Validation of Costs, Benefits, and Implementation Options and Tools. Phase 2 – Implementation: Applies Communication / Marketing, Regional Policy Implementation and Utility Decision Making Tools. Phase 3 – Transition: Integration of Project Actions to Market Transformation.

3 NEEA DEI Participating Utilities UtilityDEI Participation Avista CorpPilot Demonstration Clark Public UtilitiesPilot Demonstration Douglas PUDLoad Research, Pilot Demonstration Eugene Water & Electric BoardLoad Research Franklin PUDLoad Research Hood RiverLoad Research Idaho Falls PowerLoad Research Idaho PowerLoad Research, Pilot Demonstration PacifiCorpLoad Research Portland General ElectricLoad Research Puget Sound EnergyLoad Research, Pilot Demonstration Skamania PUDLoad Research Snohomish PUDLoad Research, Pilot Demonstration

4 Summary NEEA Load Research Project Strata established for homes with different mixes of end- uses; i.e. electric heat, gas heat, air conditioning… Monitor Residential Homes –Qualify home for voltage regulator installation –In-home assessments –Voltage Control (115.5V) for a day then utility voltage for a day 413 homes, 395 homes included in analysis

5 Summary NEEA Pilot Demonstration Project Controlled voltage at substation (day ON day OFF) –Used Line Drop Compensation –Used End of Line voltage feedback loop 6 Utilities, 10 Substations, 31 feeders Performed system improvements –Installed feeder meters –Phase balancing –Voltage regulators –Capacitors

6 NEEA DEI Project Savings Project Savings 8,563 MWhr (1.88 aMW annually) 345 kWh per residential home (Load Research project) Cost of less than 5 Mills ($0.001/kWhr)

7 Customer Satisfaction - PSE “ There were no statistically significant differences in the customer average ratings between the control group and either test group for overall electric service quality, power reliability and power quality.”

8 Potential Savings & Investment Type of Improvement & Cost / Substation Energy Savings kW Demand Reduction kvar Demand Reduction Cost in Mils ($0.001/kWh) Voltage Regulation LDC $15 - $25k 0.5% - 1%1% - 2%3% - 5% Voltage Regulation LDC w/ Minor System improvements $40 - $60k 1% - 2%2% - 2.5%3% - 7%2 - 8 Voltage Regulation LDC w/ Major System Improvements $80 - $100k 1.5% - 2.5%2.5% - 3%5% - 10% Voltage Regulation EOL w/ Major System Improvements $100 - $350k 2% - 3%3% - 3.5%10% - 20%

9 DEI Guidebook & Software Guide Book –Helps utilities establish guidelines for planning, designing, and operating distribution systems –Provides utilities with an overview of the processes and procedures –Provides documentation of the Distribution Efficiency Calculator Software Tools –Distribution Efficiency Calculator –Excel based application –Managers Tool provides high level results –Engineers Tool allows user to develop multiple scenarios and compare results

10 Results of NEEA DEI Study Regional Project Highlights Distribution efficiency methods are achievable at a cost of 2 to 15 Mills per kWh that can produce regional savings of 100 to 150 aMW Distribution efficiency improvement at a cost of 25 to 50 Mills per kWh can achieve regional savings of 200 to 270 aMW

11 MEASUREMENT & VERIFICATION PLAN FOR DISTRIBUTION SYSTEM VOLTAGE OPTIMIZATION

12 Simplified Voltage Optimization (VO) M&V Plan Goals Simplify the process to measure and verify energy savings obtained from optimizing voltage using the following methods: Voltage Fixed Reduction (VFR) Line Drop Compensation (LDC) Automated Voltage Feedback Control (AVFC) Standardize the assumptions used to calculate the CVR Factor Modify the early DE Calculator to adopt the simplified processes and standardized assumptions to ensure energy savings calculations are credible Develop data collection templates to increase efficiency and promote consistency throughout the region Plan & calculations comply with Federal Energy Management Program M&V Guidelines v3.0

13 Simplified Voltage Optimization M&V Protocols Voltage Fixed Reduction (VFR) Line Drop Compensation (LDC) Automated Voltage Feedback Control (AVFC)

14 Simplified Voltage Optimization Implementation Prerequisites Deploying VO without ensuring the targeted substation or feeders are robust creates low-voltage risks to a utility. To ensure a successful deployment of VO, pre-requisites that indicate a healthy system must be considered. Prerequisites may require a need for one or more of the following: Balance Feeder Phase Loading Reconfigure Feeder Topology Add Capacitors (fixed and switched) Add Feeder Phases Replace Distribution Transformers Upsize Feeder Conductors Add Feeder Line Regulators

15 Simplified Voltage Optimization Process Baseline Measurements –Collect and/or determine required system data –Measure and Verify system prerequisites –Perform power flow simulations and ΔV calculations Calculate baseline average voltages V* Baseline Select VO method(s) to be used –Voltage Fixed Reduction –Line Drop Compensation –Automated Voltage Feedback Control

16 Simplified Voltage Optimization Process (Cont) Design improvements to reduce voltage drop –Add phases –Add, replace, or relocate shunt capacitors –Reconductor feeder conductors –Add Line Voltage Regulators –Add or Replace Distribution Transformers –Reconductor or replace secondary conductors Calculate Regulator and Capacitor control settings Calculate CVR Factor and new average voltages V* New Compare V* and Estimate ΔE energy savings Install VO improvements Post-installation Measurements Calculate V* Post and adjust ΔE estimates

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18 International Performance M&V Protocol Option D –Calibrated simulation - Distribution Efficiency Calculator –DE Calculator provides estimate of savings for a substation attributable to each ECM within a multiple- ECM project –Baseline data may not be available –Reporting period difficult to quantify. Changes to substation operation make it too difficult to predict energy use –Primary M&V approach for assessing EE inclusions in new substation designs

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20 Energy Efficiency/Distribution/Transmission Technical Work Group Bring attention to the personal knowledge and depth of experience found throughout utilities in the PNW Highlight the hidden talent and successes within the region A venue for utilities to learn from and share technical distribution-level efficiency knowledge, experience and ideas with peers in a united and positive environment There is a critical need to explore what works... and what doesn’t

21 Voltage Optimization M&V Development Tasks Dev draft voltage optimization M&V protocols (complete) Review draft protocols with BPA staff (complete) Evaluate and testing of draft protocol methods Review testing results w/ BPA & Technical Workgroup RTF presentation - TBD Draft application forms & finalize work Update protocol documentation & methods Second RTF presentation - if required Complete protocol package & update Distribution Guidebook

22 Project Team Utility Planning Solutions - Robert Fletcher RW Beck - KC Fagen RMH Consulting - Bob Helm

23 Simplified Voltage Optimization M&V Plan Questions?