1. Smart Grid Projects at NSTAR NE Electricity Restructuring Roundtable
Doug Horton
Project Manager, Smart Grid
NSTAR Electric & Gas
October 28, 2011

2. Agenda 1 NSTAR’s Smart Grid Projects 2 AMR Based Dynamic Pricing 3
Grid Self-Healing & Efficiency Expansion 4
Urban Grid Monitoring and Renewables Integration 5
Synchrophasor Measurement Installation 1 1

3. NSTAR is currently pursuing 4 new Smart Grid initiatives
Description
ARRA Grant
Estimated Budget
AMR-Based Dynamic Pricing
Deployment of advanced technology to enable real-time measurement and two-way communication of energy consumption using existing AMR meters.
SGDP
Recipient 50% Grant
$4.7M
Grid Self-Healing and Efficiency Expansion
Creates an “auto restoration” or “self-healing” capability on the distribution system, using modern sensing, communications and information processing based on digital technologies.
SGIG
$20.1M
Urban Grid Monitoring and Renewables Integration
Facilitates the interconnection of inverter-based distributed generation in a safe manner onto a secondary area network grid.
$10.5M
Synchrophasor Measurement Installation
In conjunction with ISO-NE, install Phasor Measurement Units (PMU) in four substations to enable real-time phasor data applications.
Sub-recipient for ISO-NE
$1.6M
Total
$37.0M
50% DOE Funding
$18.5M

4. Agenda 1 NSTAR’s Smart Grid Projects 2 AMR Based Dynamic Pricing 3
Grid Self-Healing & Efficiency Expansion 4
Urban Grid Monitoring and Renewables Integration 5
Synchrophasor Measurement Installation 3 3

5. AMR-Based Dynamic Pricing
Overview
Compliant with Massachusetts Green Communities Act
Will include ~2,870 total NSTAR customers
Integrates two way communications and near real time measurement of consumption data via Tendril Networks Home Area Network system
Utilizes Time of Use Pricing by integrating interval data from Tendril to NSTAR back office systems
Low-cost solution utilizing existing infrastructure
Compatible with existing meters
Compatible with existing billing system
Utilizes Internet for communications back-haul 4 4

6. Tendril/NSTAR AMR-Based Dynamic Pricing
All participants
ERT
Portal
ERT
Display
Translate
Gateway
Zigbee
Zigbee
Half of the participants
Load Control Switch
Thermostat

7. All participants will receive real-time information on usage and cost
All Participant Groups
Load Control
In Home Display
Access to Web Portal
Internet Gateway / HAN
Programmable Thermostat
Zigbee device
Real-time power demand
Billing period electricity consumption & cost
Price of electricity
View and manage household energy consumption online
Receive messages from NSTAR
Analyze historical usage patterns
Home Area Network (HAN) to enable two-way communication between the customer and NSTAR
Up to 4 programmable set points per day
Controllable over the Internet via the Web Portal
Critical Event management and control 6 6

8. Pricing Structures
NSTAR will call no more than 12 Critical Peak Events during the course of the year, each lasting for up to 5 hours
Peak Time Rebate customers will be eligible to earn a fixed rebate of $5 per event if the customer allows central air conditioning (A/C) load control
TOU-CPP customers will experience steep price differentials, per the table below
Illustrative TOU and CPP Rate Periods and Prices
Period
Summer Period
(June - September)
Winter Period
(October - May)
Illustrative Standard Electricity Price
($/kWh)
Approximate Supply Price Ratio
Illustrative TOU-CPP Electricity Price
Critical Peak
As called by NSTAR
$0.16
10.62 :1
$0.90
On-peak
Noon to 5pm non-holiday weekdays
4pm to 9pm non-holiday weekdays
2.23 : 1
$0.25
Off-peak
All other times
during the period
0.60 : 1
$0.13

9. Marketing & Recruitment
Phase I: General Marketing Campaign
Traditional marketing techniques
Appeal to mainstream audiences
Test/monitor receptivity “appetite and aptitude”
Objectives
Document outreach and results
Demonstrate pilot attempts to reach all customers
Complete non-participant and participant research
Phase II: Targeted Marketing
Objectives
Secure sufficient pilot participants
Complete non-participant and participant research
Digital/Online

10. Direct Mail Targeted: 39,000 Enrolled: 1,450
Direct mail communication to eligible residents in Newton, Hopkinton, & Jamaica Plain
Results
Targeted: 39,000
Enrolled: 1,450
3.7% response rate.
3 week response time, on average.

11. Email Campaign – Initial Results
Targeted: 7,500
Enrolled: 660
8.8% total response rate.
Response is almost immediate.

12. Current Status Installed equipment in almost 1400 customer homes
Integrated interval metering data into billing and CIS systems to produce Critical Peak Rebates and time-differentiated billing
Called 5 Critical Events during the summer
~$3M project spending out of $4.7M total; 50% funded by US DOE 11

13. Agenda 1 NSTAR’s Smart Grid Projects 2 AMR Based Dynamic Pricing 3
Grid Self-Healing & Efficiency Expansion 4
Urban Grid Monitoring and Renewables Integration 5
Synchrophasor Measurement Installation 12 12

14. Grid Self-Healing & Efficiency Expansion
Electric delivery network using modern sensing, communications, and information processing based on digital technologies
Microprocessor-based measurement and control using remote sensors
Current, voltage, KVA, temperature
Circuit self-healing implementation (Auto-Restoration)
Supervisory controlled overhead and underground switches with voltage and current sensors
Interoperability standards using PI interface
SCADA interface to recloser control cabinet 13 13

15. Three Operational Modes
Mode 1: “Supervisory” mode
Leverages remote control of switches
Operator controlled sequences
Mode 2: “Operational Acknowledgement” mode
Computer-simulated restoration sequences
Operator validation and execution
Mode 3: “Self-Healing” mode
Computer-determined restoration sequences
No human intervention 14

16. Grid Self-Healing & Efficiency Expansion
Over 1,700 SCADA Switches installed through the service territory and over 5,000 sensors monitoring the overhead electric grid 15 15

17. DA South 600amp Switch locations

18. DA North ASU locations

19. Smart Switch Equipment18 18

20. Current Status
Over 1700 smart switches deployed throughout our service territory
Allow for remote switching by our SCADA operators to significantly reduce the amount of time our customers go without power
57,000 outages avoided in 2011 due to automated sectionalizing, with another 142,000 outages being restored in less than 5 minutes.
Hurricane Irene:
506,000 total outages
232,000 restored in less than 1 hour
50,000 outages avoided
~$12.4M project spending out of $20M total; 50% funded by US DOE 19

21. Agenda 1 NSTAR’s Smart Grid Projects 2 AMR Based Dynamic Pricing 3
Grid Self-Healing & Efficiency Expansion 4
Urban Grid Monitoring and Renewables Integration 5
Synchrophasor Measurement Installation 20 20

22. Project Objectives
Incorporate advanced sensing and monitoring equipment to test the integration of distributed resources onto a secondary area network
Improve visibility into secondary area network grid using two different types of “nodes” or sensors
Deploy sensors on the underground secondary network
Refine methods suitable to scale broadly across urban areas nationwide
Develop model to safely examine small inverter-based distributed resource integration
Solar PV integration from downtown customers
Potential for integration anywhere on the test grid
Pave the way for other, inverter-based DR in the future 21

23. Demonstration Grid Location (Shown in Red)22 22

24. Digital Grid
Secondary Cable
Monitoring
CT’s

25. Current Status Finalized the award with the US DOE October 18, 2011
Preparing to order equipment and proceed with project as planned
Initial installations of major and minor nodes planned for end of 2011 24

26. Agenda 1 NSTAR’s Smart Grid Projects 2 AMR Based Dynamic Pricing 3
Grid Self-Healing & Efficiency Expansion 4
Urban Grid Monitoring and Renewables Integration 5
Synchrophasor Measurement Installation 25 25

27. Synchrophasor Measurement Installation
NSTAR is sub-recipient to ISO New England US DOE Smart Grid Investment Grant.
Install Phasor Measurement Units (PMU) in four substations
The project is an essential part of ISO New England's plans for infrastructure development based on the expansion of its PMU-based disturbance detection and monitoring system
R&D project to provide real-time data to ISO NE every 1/60th of a second, rather than once every 10 seconds 26