1. American Electric Power (AEP) Virtual Power Plant Simulator (VPPS) Tom Jones, Manger – Corporate Technology Development American Electric Power Grid-InterOp 2009 Denver, CO Nov 17-19, 2009

2. Virtual Power Plant Simulator (VPPS) – C h a n g e s t o e x i s t i n g a r c h i t e c t u r e ( i f a p p l i c a b l e ) – I n t e r f a c e i m p l i c a t i o n s t o l e g a c y s y s t e m s – A r c h i t e c t u r e C o n s i d e r a t i o n s f o r E m e r g i n g / c h a n g i n g r e q u i r e m e n t s – I m p r o v e d B e n e f i t s f r o m A r c h i t e c t u r e C h a n g e s Overall Project Lessons Learned (3-5 Slides) – T o p i c s c o u l d b e w i d e r a n g i n g ( p r o j e c t p l a n n i n g, r e s o u r c e s, s t i m u l u s i m p l i c a t i o n s, s o f t w a r e i n t e g r a t i o n, h a r d w a r e i n s t a l l a t i o n, c u s t o m e r a c c e p t a n c e, e t c. ) – W h a t s u r p r i s e d y o u ? W h a t i n f o r m a t i o n w o u l d m e m b e r u t i l i t i e s f i n d i n t e r e s t i n g ? Q&A VPPS Foundational System South Bend, Indiana AMI / AMR 10,000 Smart Meters Mesh Network Communications End-use Tariffs End-use Controls (Thermostat) Dolan Technology Center - Laboratory Test Bed for Modeling Real Resources Renewables (PV, Wind) Demand Response Storage Distributed Generation VPPS

3. AEP Smart Grid Demo Topology – C h a n g e s t o e x i s t i n g a r c h i t e c t u r e ( i f a p p l i c a b l e ) – I n t e r f a c e i m p l i c a t i o n s t o l e g a c y s y s t e m s – A r c h i t e c t u r e C o n s i d e r a t i o n s f o r E m e r g i n g / c h a n g i n g r e q u i r e m e n t s – I m p r o v e d B e n e f i t s f r o m A r c h i t e c t u r e C h a n g e s Overall Project Lessons Learned (3-5 Slides) – T o p i c s c o u l d b e w i d e r a n g i n g ( p r o j e c t p l a n n i n g, r e s o u r c e s, s t i m u l u s i m p l i c a t i o n s, s o f t w a r e i n t e g r a t i o n, h a r d w a r e i n s t a l l a t i o n, c u s t o m e r a c c e p t a n c e, e t c. ) – W h a t s u r p r i s e d y o u ? W h a t i n f o r m a t i o n w o u l d m e m b e r u t i l i t i e s f i n d i n t e r e s t i n g ? Q&A

4. Changes to Existing Architecture Distribution Secondary and End-Use Distribution Operations Energy Storage Advanced Monitoring, Communications & Control Utility OperationsCustomer Premise Advanced Monitoring, Communications & Control Adapted from EPRI source image PHEV Customer Portal or Meter LG Electronics “High Demand Period” “Delay wash 2 hours?” “Please respond Yes or No”

5. Changes to Existing Architecture Distribution Primary System Station C 3. Automated Meter Infrastructure a. Outage notification b. Automatic meter reading c. Monitor voltage and load d. Gateway to Home Area Network 4. Demand Response and Distributed Energy Resources a. Monitor and control end-use devices b. Monitor and control DER systems and devices c. Integrate into power system optimization 2. Capacitor Automation a. Monitor status b. Monitor VAr req’ts c. Control to optimize VAr supply. Switches Capacitors Station C C PHEV Energy Storage/DER Feeder Circuit Breaker AMI Communications Switches Capacitors C NO NC NO NC

6. Changes to Existing Architecture The Integrated Power System ≈ ~ ≈ ~ ≈ ~ ≈ ≈ Commercial NO/NC ≈ ≈ Industrial Residential Fuel Cell ≈ Storage ≈ ≈ ≈ Wind Solar Monitoring & Optimization Center Regional Aggregation/ Control ≈ Point

7. Interface Implications to Legacy Systems – C h a n g e s t o e x i s t i n g a r c h i t e c t u r e ( i f a p p l i c a b l e ) – I n t e r f a c e i m p l i c a t i o n s t o l e g a c y s y s t e m s – A r c h i t e c t u r e C o n s i d e r a t i o n s f o r E m e r g i n g / c h a n g i n g r e q u i r e m e n t s – I m p r o v e d B e n e f i t s f r o m A r c h i t e c t u r e C h a n g e s Overall Project Lessons Learned (3-5 Slides) – T o p i c s c o u l d b e w i d e r a n g i n g ( p r o j e c t p l a n n i n g, r e s o u r c e s, s t i m u l u s i m p l i c a t i o n s, s o f t w a r e i n t e g r a t i o n, h a r d w a r e i n s t a l l a t i o n, c u s t o m e r a c c e p t a n c e, e t c. ) – W h a t s u r p r i s e d y o u ? W h a t i n f o r m a t i o n w o u l d m e m b e r u t i l i t i e s f i n d i n t e r e s t i n g ? Q&A Models “Load” as Controllable within bounds: Real and Reactive Power Looks beyond the station to the end-use and customer Considers load as a “resource”, including distributed energy resources, that could be controlled to relieve system constraints Considers the distribution system as a potential resource for contingency planning The Virtual Power Plant Simulator

8. Considerations for Emerging/Changing Requirements Flat Rate Real Time Pricing No Control Critical Load Only Daily Cycle Instant Response On-Peak Charge On-Peak Discharge Backup Only On-Peak Supply Cloudy Sunny Min Base Supply Max Base Supply Backup Only Full Demand Supply Demand Daily Time Cycle Tariff Demand Storage PHEV Fossil DG Solar Fuel Cell External $ Output (e.g. Cost) Calm Windy Wind Supply Surplus Energy Energy Deficiency Internal Power The Smart Grid “Control Panel”

9. Improved Benefits from Architecture Changes – C h a n g e s t o e x i s t i n g a r c h i t e c t u r e ( i f a p p l i c a b l e ) – I n t e r f a c e i m p l i c a t i o n s t o l e g a c y s y s t e m s – A r c h i t e c t u r e C o n s i d e r a t i o n s f o r E m e r g i n g / c h a n g i n g r e q u i r e m e n t s – I m p r o v e d B e n e f i t s f r o m A r c h i t e c t u r e C h a n g e s Overall Project Lessons Learned (3-5 Slides) – T o p i c s c o u l d b e w i d e r a n g i n g ( p r o j e c t p l a n n i n g, r e s o u r c e s, s t i m u l u s i m p l i c a t i o n s, s o f t w a r e i n t e g r a t i o n, h a r d w a r e i n s t a l l a t i o n, c u s t o m e r a c c e p t a n c e, e t c. ) – W h a t s u r p r i s e d y o u ? W h a t i n f o r m a t i o n w o u l d m e m b e r u t i l i t i e s f i n d i n t e r e s t i n g ? Q&A Optimizes resource allocation across power system Harmonizes grid operation from end-use to RTO Enables adoption of renewable and distributed resources Permits real time optimization of system under current operational opportunities and constraints – System constraints – Market value – Environmental constraints Simulation prior to mass deployment reduces investment and operational risk

10. Overall Project Lessons Learned – C h a n g e s t o e x i s t i n g a r c h i t e c t u r e ( i f a p p l i c a b l e ) – I n t e r f a c e i m p l i c a t i o n s t o l e g a c y s y s t e m s – A r c h i t e c t u r e C o n s i d e r a t i o n s f o r E m e r g i n g / c h a n g i n g r e q u i r e m e n t s – I m p r o v e d B e n e f i t s f r o m A r c h i t e c t u r e C h a n g e s Overall Project Lessons Learned (3-5 Slides) – T o p i c s c o u l d b e w i d e r a n g i n g ( p r o j e c t p l a n n i n g, r e s o u r c e s, s t i m u l u s i m p l i c a t i o n s, s o f t w a r e i n t e g r a t i o n, h a r d w a r e i n s t a l l a t i o n, c u s t o m e r a c c e p t a n c e, e t c. ) – W h a t s u r p r i s e d y o u ? W h a t i n f o r m a t i o n w o u l d m e m b e r u t i l i t i e s f i n d i n t e r e s t i n g ? Q&A Vision of Smart Grid as a Virtual Power Plant appears technically achievable Operational requirements and impacts need to be understood and optimized Economics and system benefits need to be understood and quantified to optimize resource allocation Alignment of vision and public policy is needed to effectively capture societal benefits Collaboration between industry, academia, and government is required The EPRI/AEP Virtual Power Plant Simulator (e.g. OpenDSS platform) Smart Grid Project permits stepwise evaluation of the various systems and components of a smart grid, including cross-impact analysis

11. Thank You! Q&A – C h a n g e s t o e x i s t i n g a r c h i t e c t u r e ( i f a p p l i c a b l e ) – I n t e r f a c e i m p l i c a t i o n s t o l e g a c y s y s t e m s – A r c h i t e c t u r e C o n s i d e r a t i o n s f o r E m e r g i n g / c h a n g i n g r e q u i r e m e n t s – I m p r o v e d B e n e f i t s f r o m A r c h i t e c t u r e C h a n g e s Overall Project Lessons Learned (3-5 Slides) – T o p i c s c o u l d b e w i d e r a n g i n g ( p r o j e c t p l a n n i n g, r e s o u r c e s, s t i m u l u s i m p l i c a t i o n s, s o f t w a r e i n t e g r a t i o n, h a r d w a r e i n s t a l l a t i o n, c u s t o m e r a c c e p t a n c e, e t c. ) – W h a t s u r p r i s e d y o u ? W h a t i n f o r m a t i o n w o u l d m e m b e r u t i l i t i e s f i n d i n t e r e s t i n g ? Q&A