1. 1 Distribution System Planning Engagement Group Hosting Capacity August 18, 2016 Summary of Stakeholder Engagement Group Meetings

2. 2 Distribution System Planning Engagement Group Charter (updated draft 05/23/2016) Hosting Capacity Discuss methodological approaches and data inputs for determining hosting capacity, and which are appropriate for which systems in New York. o Describe how these answers differ for radial and network systems. o Discuss the potential evolution of methodology in terms of modeling and data requirements, the outputs that can be derived from the analysis, and the uses of those outputs. Review different models and approaches to calculate and publish hosting capacity Discuss potential solutions to increasing hosting capacity (e.g. storage) Develop timeline to implement. Suitability Criteria for Non-Wires Alternatives Determine a set of appropriate criteria for project applicability including risk and design standards Discuss which types of needs (examples: load relief, reliability) can best be met through NWA solutions, and which may present less opportunity for DER-led solutions. o Understand the what and why of grid needs o Describe how these factors, project characteristics and timelines to completion affect NWA suitability. Explore the dimensions of projects, including traditional and alternative cost and fit parameters, and whether there are threshold levels that indicate NWA suitability. Purpose: Explore common ground in approaches regarding the evolution in planning the distribution system in New York as Distributed Energy Resource (DER) penetration increases and as the market evolves, in order meet customers’ needs and public policy goals. Will include a uniform methodology for calculating hosting capacity and to increase hosting capability, a move toward probabilistic planning, a plan for optimization improvements that will result in a more efficient interconnection process. Topics and Scope: Suitability Criteria for Non-Wires Alternatives (NWAs); Hosting Capacity

3. 3 Hosting Capacity Schedule 7/117/187/258/18/15 Hosting Capacity 7/14 Initial Meeting 7/21 Webinar 7/28 Face to Face Albany 8/11 Final Face-to-Face Distribution System Planning 8/4 Phone / Webinar Webinar 7/27 on NWA Suitability and System Data 8/18 Stakeholder Engagement 8/8 Invitation-only Roundtable 7/29

4. 4 Hosting Capacity Presentations on hosting capacity received from: Advanced Microgrid Solutions Borrego Solar Enbala EPRI IREC NY-BEST Smarter Grid Solutions

5. 5 Develop an understanding of: Who will utilize hosting capacity information and how the information will be applied For planning For facilitating construction of DERs What hosting capacity data is needed Inputs: Utility data – metering data, asset information, etc. Outputs: Data and format to be published for developers Near term vs. longer term requirements (Roadmap) How often information requires updating Considerations for increasing hosting capacity innovative solutions include smart inverters, storage, analytics, and bilateral arrangements Hosting Capacity Stakeholder Discussion

6. 6 Scope of Hosting Capacity Interconnection Policy Working Group (IPWG) and Ombudsman Group “Near Term Policy and Process Issues” Hosting Capacity Supplemental DSIP “Hosting Capacity: Definition, Use Cases, and Expansion” Interconnection Technical Working Group (ITWG) “Near-Term Technical Issues” Queue management Dispute resolution Cost/cost allocations Process issues within the Standardized Interconnection Requirements (SIR) Common definition and roadmap Methodologies to increase hosting capacity Developer and utility use cases Transparency and consistency related to utility system upgrades Technical whitepapers and matrix Technical issues within the Standardized Interconnection Requirements (SIR) In-depth Engineering studies

7. 7 Hosting Capacity Themes Continue to develop interconnection process (out of scope for Distribution Planning) Continue to improve tools that communicate hosting capacity Expand capabilities to increase hosting capacity as experience is gained and technology evolves Develop timeline and roadmap

8. 8 Hosting Capacity Implementation Roadmap Stage 1 – Distribution Indicators Stage 2 – Hosting Capacity Evaluations Stage 3 – Advanced Hosting Capacity Evaluations Stage 4 – Fully Integrated DER Value Assessments Increasing effectiveness, complexity, and data requirements *Efforts to increase hosting capacity completed in parallel with Hosting Capacity Evaluations

9. © 2016 Electric Power Research Institute, Inc. All rights reserved. Jeff Smith, Manager Power System Studies, jsmith@epri.com jsmith@epri.com Lindsey Rogers, Technical Lead Distributed Renewables lirogers@epri.com lirogers@epri.com Joint Utility Workshop, Distribution System Planning – Hosting Capacity Thursday, August 18, 2016 Defining a Roadmap for Successful Implementation of a Hosting Capacity Method for NY Defining a Roadmap for Successful Implementation of a Hosting Capacity Method for New York State, EPRI, Palo Alto, CA: 2016. 3002008848

10. 10 © 2016 Electric Power Research Institute, Inc. All rights reserved. What is Hosting Capacity and Why is it So Important?  Definition: –Hosting Capacity is the amount of DER that can be accommodated without adversely impacting power quality or reliability under current configurations and without requiring infrastructure upgrades.  Hosting Capacity is –Location dependent –Feeder-specific –Time-varying  Hosting capacity considers DER interconnection without allowing –Voltage/flicker violations –Protection mis-operation –Thermal overloads –Decreased safety/reliability/power quality  Hosting capacity evaluations require precise models of entire distribution system Hosting Capacity can be used to inform utility interconnection processes and to support DG developer understanding of more favorable locations for interconnection A feeder’s hosting capacity is not a single value, but a range of values

11. 11 © 2016 Electric Power Research Institute, Inc. All rights reserved. Comprehensive Criteria for Hosting Capacity Evaluations Power System Criteria Thermal Substation transformer Primary conductor Service Transformer Secondary Conductor Power Quality/Voltage Sudden (fast) voltage change Steady-state voltage Line regulator or substation LTC Capacitor switching Protection Relay reduction of reach Sympathetic tripping Element fault current Reverse power flow (backfeed) Reliability/Safety Unintentional islanding Operational flexibility

12. 12 © 2016 Electric Power Research Institute, Inc. All rights reserved. Detailed Implementation of Hosting Capacity Assessments Method Overview  Select specific locations for DER  “Iterate” through each case  Solve 1000’s of load flows Analysis of High-Penetration Solar PV Impacts for Distribution Planning: Stochastic and Time-Series Methods for Determining Feeder Hosting Capacity. EPRI, Palo Alto, CA: 2012. 1026640 Findings  Results similar to detailed impact studies –Accurate –Time-consuming/data intensive –Applicable to specific scenarios  Difficult to consider range of possible DER scenarios –All locations (three-phase and single-phase) –Feeder reconfigurations –DER types  Not easily replicable across entire system –Typically have to limit the cases/locations/scenarios considered –Can take hours to days to simulate a single feeder depending upon feeder complexity

13. 13 © 2016 Electric Power Research Institute, Inc. All rights reserved. Challenge: Distribution Area-Wide Models are “Immense” in Scale Distribution diagrams courtesy of Salt River Project Typical Distribution Utility Count Distribution Service Territory 1 Distribution Planning Area 1’s - 10’s Distribution Substations 10’s - 100’s Distribution Feeders 100’s -1000’s Distribution Transformers 1000s - 1,000,000’s Distribution Customers 100,000’s - 1,000,000’s

14. 14 © 2016 Electric Power Research Institute, Inc. All rights reserved. Key Components of an Effective Hosting Capacity Method

15. 15 © 2016 Electric Power Research Institute, Inc. All rights reserved. Streamlined Implementation of Hosting Capacity Assessments Method Overview  Solve base load flow/short- circuit cases  Increase DER at each location on feeder  Apply advanced algorithms to calculate hosting capacity at each location Findings  Close approximation of DER impact –Less time/data intensive –Not a replacement for detailed studies  Full range of possible DER scenarios can be considered –All locations (three-phase and single- phase), feeder configurations, DER technologies and types (centralized vs distributed)  Easily replicable across entire system –Typically 3-5 minutes per feeder when automated Integration of Hosting Capacity Analysis into Distribution Planning Tools. EPRI, Palo Alto, CA: 2016. 3002005793

16. 16 © 2016 Electric Power Research Institute, Inc. All rights reserved. Example Case Study Modeling data and assumptions have impact on hosting capacity Substation LTC: 123V Substation LTC: 125V *Illustration of DER (PV) hosting capacity based on evaluating overvoltage Substation Hosting capacity is calculated on each feeder node Evaluations consider -Local constraints -Upstream constraints

17. 17 © 2016 Electric Power Research Institute, Inc. All rights reserved. Distribution Modeling Requirements for Hosting Capacity Evaluations Model Depth – Individual Feeder Requirements  Medium-voltage assets modeled  Peak-load models represented (current capability for most utilities)  Off-peak models of distribution system –To consider different times of day/load levels –Typically not available, requires additional considerations Model Breadth - Distribution models of entire service territory  All feeders/network systems modeled Distribution Modeling Guidelines: Executive Summary - Recommendations for System and Asset Modeling for Distributed Energy Resource Assessments, EPRI, Palo Alto, CA: 2015. 3002008894.

18. 18 © 2016 Electric Power Research Institute, Inc. All rights reserved. Additional Considerations for Hosting Capacity Implementation Hosting Capacity on Meshed Low- Voltage Systems  Differs from radial modeling and analysis  No extensive studies exist to represent impacts  Must model to low voltage assets Existing DER and Interconnection Queue  Should consider existing DER  Requires significant amount of data upkeep  Modeling of existing and approved DER required

19. 19 © 2016 Electric Power Research Institute, Inc. All rights reserved. Tools for Hosting Capacity Analysis Implementing hosting capacity methods using existing planning tools  Required capabilities reside within existing planning tools –Distribution models –Analysis mechanics (load flow, short- circuit)  Alleviates unnecessary model translation to other software platforms –Improving data management/upkeep efficiency –Captures changes in distribution system  One platform for all planning functions and models –Traditional distribution planning –Hosting capacity evaluations –Grid modernization assessments  EPRI and it’s utility members are working with major software vendors to incorporate hosting capacity method (CYME: 2016, Milsoft/Synergi: 2016/17) Incorporating hosting capacity methods into existing utility planning tools – no need to re-invent the wheel Hosting Capacity Module Existing Distribution Planning Tools (CYME, Milsoft, Synergi, DEW)

20. 20 © 2016 Electric Power Research Institute, Inc. All rights reserved. Methods for Increasing Distribution Hosting Capacity  Methods for increasing hosting capacity depend upon many factors –Limiting power system criteria –Distribution system design and operating characteristics –DER capabilities  A single solution/technology does not resolve all issues –Voltage –Thermal –Protection  Solutions can be situation-specific –E.g., smart inverters and reconductoring can help with voltage issues but not protection  Solutions for increasing hosting capacity can have other benefits as well –Reconductoring and voltage uprating can reduce losses and increase load-serving capability –Comm/control of DER coordinated with existing controls can help regulate voltage  Grid-Side Enhancements/Changes –Reconductoring –Voltage uprating –Transformer replacement –Additional voltage regulator –Comm/control (curtailment) –Additional relaying –Storage  Operational Changes –Voltage regulation changes (LTC setpoint adjustment, etc.) –Relay setting modification  Technology Solutions –Smart inverters –Distributed var control –Energy storage –PV panel orientation –DSM

21. 21 © 2016 Electric Power Research Institute, Inc. All rights reserved. Summary  Hosting capacity is a complex analysis requiring models of entire distribution area –Most utilities have modeled a portion of the system – still work to be done –Distribution metering data must be more granular  Roadmap to implementation –Provides staged approach for development –Delivers near and long-term solutions –Allows for refinement of models and methods over time –Leverages EPRI work regarding use of existing planning tools for hosting capacity assessments Defining a Roadmap for Successful Implementation of a Hosting Capacity Method for New York State, EPRI, Palo Alto, CA: 2016. 3002008848

22. 22 © 2016 Electric Power Research Institute, Inc. All rights reserved. Additional References Detailed Hosting Capacity Method  Impact of High-Penetration PV on Distribution System Performance: Example Cases and Analysis Approach. EPRI, Palo Alto, CA: 2011. 1021982  Analysis of High-Penetration Solar PV Impacts for Distribution Planning: Stochastic and Time-Series Methods for Determining Feeder Hosting Capacity. EPRI, Palo Alto, CA: 2012. 1026640  Rylander, M., Smith, J., “Comprehensive Approach for Determining Distribution Network Hosting Capacity for Solar PV”, 2nd International Workshop on Integration of Solar Power Into Power Systems, Lisbon, Portugal, Nov 2012.  Rylander, M., Smith, J., "Stochastic Approach for Distribution Planning with Distributed Energy Resources", 2012 CIGRE Grid of the Future Symposium, Kansas City, MO, 2012  Rylander, M., Smith, J., "Comprehensive Approach for Determining Distribution Network Hosting Capacity for Solar PV", 2nd International Workshop on Integration of Solar Power Into Distribution Systems, 12-13 November, 2012  Distributed Photovoltaic Feeder Analysis: Preliminary Findings from Hosting Capacity Analysis of 18 Distribution Feeders. EPRI, Palo Alto, CA: 2013. 3002001245.  Alternatives to the 15% Rule: Modeling and Hosting Capacity Analysis of 16 Feeders. EPRI, Palo Alto, CA: 2015. 3002005812. Streamlined Hosting Capacity Method  Integration of Hosting Capacity Analysis into Distribution Planning Tools. EPRI, Palo Alto, CA: 2016. 3002005793  A New Method for Characterizing Distribution System Hosting Capacity for Distributed Energy Resources: A Streamlined Approach for Solar Photovoltaics. EPRI, Palo Alto, CA: 2014. 3002003278.  Rylander, M., Smith, J., Sunderman, W., “Streamlined Method For Determining Distribution System Hosting Capacity”, 23 rd International Conference on Electricity Distribution, CIRED, Lyon, France, 2015  Rylander, M., Smith, J., Sunderman, W., “Streamlined Method For Determining Distribution System Hosting Capacity”, Rural Electric Power Conference, Asheville, NC, 2015 (accepted for IAS Transactions)  Distribution Feeder Hosting Capacity: What Matters When Planning for DER?. EPRI, Palo Alto, CA: 2015. 3002004777  Smith, J., Rylander, M., Rogers, L., Dugan, R., “It’s All in the Plans: Maximizing the Benefits and Minimizing the Impacts of DERs in an Integrated Grid”, Power and Energy Magazine, March/April 2015.

23. 23 Hosting Capacity – What We’ve Heard Top priorities to focus on in the immediate term Identify the outputs that are required and how they will be used Develop Hosting Capacity indicator tools / maps Increase hosting capacity through the System Planning process Explore Hosting Capacity’s relationship with the Interconnection process Identify a balance between time, costs, and accuracy of hosting capacity assessment Additional considerations Using hosting capacity as tool to identify where upgrades are needed to relieve constraints Improve granularity and accuracy of the Hosting Capacity maps Understand what data is going to be shared regardless of methodology Full integration into the interconnection process

24. 24 Hosting Capacity – What We’ve Heard Timeline and Roadmap Support for a evolutionary roadmap with early action to provide value; doesn’t need to be perfect Clarify steps from the current state to a future state Steps toward moving from the current state to future state should be clear Don’t lose sight of the goal, in terms of both timeline and resources to implement Ability to evolve to include additional technologies beyond solar PV Distribution Indicators Utilities currently provide ‘red zone maps’ to help developers interconnect There may be opportunity to improve the consistency of these maps across utilities prior to Hosting Capacity development Hosting Capacity Common approach that leverages existing work Understanding best practices, both national and international Searchable maps are useful – both load based and generation based A Hosting Capacity map is an important complement to a ‘pre-application report’ Increasing Hosting Capacity There are technologies and processes that the group has reviewed that can help increase hosting capacity Policy goals are supported by increasing hosting capacity

25. 25 Supplemental DSIP Topics Distribution System Planning Topics Topic Areas Probabilistic Planning Load Flow Analysis NWA Suitability Grid OperationsMarket Operations DER Forecasting Demand Forecasting Hosting Capacity Interconnection ISO/DSP Roles, Responsibilities, Interaction Cyber Security Monitoring & Control System Data Electric Vehicle Supply Equipment DER Sourcing - Procurement Customer Data Granular Pricing Discussed in 7/27 Conference/Webinar Discussed in 8/18 Conference/Webinar To be discussed in 9/13 Conference/Webinar DPS discussion topic

26. 26 Appendix & Reference Materials

27. 27 Distribution Modeling Guidelines: Executive Summary - Recommendations for System and Asset Modeling for Distributed Energy Resource Assessments. EPRI. Palo Alto, CA: 2016, 3002008894 http://www.epri.com/abstracts/Pages/ProductAbstract.aspx?ProductId=000 000003002008894 http://www.epri.com/abstracts/Pages/ProductAbstract.aspx?ProductId=000 000003002008894 Whitepapers and stakeholder presentations located on the website www.jointutilitiesofny.org and includes information from: www.jointutilitiesofny.org Reference Guide For more Information please access the Department of Public Service (DPS) website of the New York State - http://www3.dps.ny.gov/W/PSCWeb.nsf/All/DCF68EFCA391AD6085257687 006F396B?OpenDocument For more Information on the Red Zone Maps of Joint Utilities of New York, please access the link below from the Department of Public Service (DPS) website of the New York State – http://www3.dps.ny.gov/W/PSCWeb.nsf/All/6143542BD0775DEC85257FF1 0056479C?OpenDocument

28. Draft for Discussion Purposes Only 28 Please contact info@jointutilitiesofny.orginfo@jointutilitiesofny.org or visit our website www.jointutilitiesofny.org for more informationwww.jointutilitiesofny.org