1. What Makes a Smart Grid Smart?
Speaker: Michael Munson
Company: Metropolitan Energy
What Makes a Smart Grid Smart?
The Chicago Commercial Office Building Perspective

2. BOMA/Chicago Overview
260+ Buildings
Private, Institutional, Government/Public
170+ Affiliate Member Companies
125 Million Sq. Ft. of Office Space
~5% of ComEd’s Load

3. Commercial Smart Grid Goals
Ease of Information Access and Use
Measure & Verify Improvements & Efficiency
Better Investment Decisions
Proof of DR Participation in Marketplace
New Technologies, Infrastructure
Monetize, Automate, Optimize, Innovate
Continuously Develop & Prove Business Case

4. Energy Use Scenarios

5. Energy Supply Projection
Source: Forecasted Reserve Margin PJM RTO
(as of June 8, 2009)

6. Necessities for Smart Grid
Information, Information, Information
Real-Time Data Access (real, real-time)
Customer Usage and Market Information
Market Transparency
Control and Flexibility Incentives
Market Requirements & Design
Replicability – for Building Portfolios

7. Reducing Demand Supply Price Quantity ΔQ Q1 Q2 P1 P2 ΔP D1 D2
Small changes in demand can result
In large changes to price.

8. PJM Price Volatility PJM prices can vary based on market forces,
$10
$30
$50
$70
$90
$110
$130
$150
$170
$190
$210
-$10
-$30
8:30 PM
June 16
9:00 PM
9:30 PM
10:00 PM
10:30 PM
11:00 PM
11:30 PM
12:00 AM
June 17
12:30 AM
1:00 AM
1:30 AM
PJM Price Volatility
PJM prices can vary based on market forces,
going from about $210 to $35 below $0 in a very short time.

9. Policy Goals & Recommendations
Defining Smart Grid
Definitions are static
Smart Grid is dynamic
Policy should enable, not dictate innovation
Information, Information, Information
The grid relies on informed decisions
Better information = better decisions
Other Policy Concerns
Market Recognition of Consumers
Marginal Costs vs. Average Costs
Rate Design Improvements
Market vs. regulation for consumer protections