1. “Discovery Across Texas” A CCET Smart Grid Demonstration Project Providing New Technology Solutions for Wind Integration in ERCOT Presented to Southwest Electric Distribution Exchange by Dr. Milton Holloway 27 April 2011

2. 2 Outline  Purpose and Scope  Project Team  Status of Work  Status of Schedule

3. Purpose and Scope

4. 4 DOE Smart Grid Demonstration Project  Original Award Date: 4 January 2010  Award Number: DE-OE-0000194  Title: Discovery Across Texas: Technology Solutions for Wind Integration in ERCOT  Value: $27 million total; $13.5 million DOE  Term: Five-years  Team: 17 companies participating thus far  Phases:  I - Planning and NEPA Compliance  II - Design and Installation  III - Demonstration and Analysis

5. 5 DOE Contract Modification  Modification #: 001  Issue Date: 29 October 2010  Terms: Begin Phase II – Design and Installation  Begin work immediately  All authorized Phase II funding is released  Revised SOPO Deliverables:  Update I&CS Plan and PMP – 28 November  Metrics and Benefits Reporting Plan – 28 January

6. 6 Project Overview  Goal :  Demonstrate a synergistic approach to managing fluctuations in wind power in the ERCOT transmission grid through new and emerging technologies--better system monitoring capabilities, enhanced operator visualization, and improved load management  Primary Components:  Synchrophasors  Smart Meter Texas Portal  Smart Grid Community of the Future

7. 7 Project Components The Project will demonstrate three classes of technologies to help integrate 18,000 MW wind generation… Synchrophasor Technology Smart Meter Texas Portal Smart Grid Community of the Future 1 2 3

8. 8 Synchrophasor Overview Although we already know the many benefits of wind power, it is critical that we manage its effect on reliability of the grid before wind can become an efficient energy source in the Texas electricity market. Our first task in this demonstration will be to monitor the ERCOT grid and its large- scale wind resources with Synchrophasor technology to detect and identify undesirable conditions on the grid, thereby enabling ERCOT operators to make adjustments to maintain grid reliability, and to expand the level of wind generation from available wind capacity.

9. 9 Demonstration Goals  Enable ERCOT to better manage the transmission grid to accommodate very large quantities of wind generation  Establish and maintain a reliable synchrophasor network to provide real time dynamic information on wind resources and their impact on the transmission grid  Use synchrophasor measurements to identify precursor conditions to undesirable grid performance and behavior  Identify changes in operating procedures or actions to facilitate integration of intermittent resources, hence improving grid reliability  Utilize synchrophasor measurements to recalibrate engineering models

10. 10 Demonstration Approach  Build on Current ERCOT Network started in Fall 2008 with 3 AEP PMUs  Currently 14 PMU’s installed at 12 TO locations, and at ERCOT ePDCTM for data synchronization, RTDMS® for visualization, and PGDATM for off-line analysis  Expanding to 23 PMUs, provide TOs access to RTDMS visualization applications  Enable ERCOT to better manage the transmission grid to accommodate very large quantities of wind generation  Establish and maintain a reliable synchrophasor network to provide real time dynamic information on wind resources and their impact on the transmission grid  Use synchrophasor measurements to identify precursor conditions to undesirable grid performance and behavior  Identify changes in operating procedures or actions to facilitate integration of intermittent resources, hence improving grid reliability  Utilize synchrophasor measurements to recalibrate engineering models

11. 11

12. 12 RTDMS Synchrophasor technology measures variations across a transmission grid in absolute real-time. The measurement includes a time stamp that provides an easy method of correlating values from different locations that take different amounts of time to arrive at a common collection point. This gives us a tool to view the power system as a whole or to compare different points in real time.

13. 13 Project Components The Project will demonstrate three classes of technologies to help integrate 18,000 MW wind generation… Synchrophasor Technology Smart Meter Texas Portal Smart Grid Community of the Future 1 2 3

14. 14 SMT Portal Overview  ERCOT and the largest electricity companies in Texas have launched the most aggressive Advanced Metering System (AMS) deployment in the U.S.  The Smart Meter Texas Portal initiative is a several- year collaboration to:  Properly integrate AMS meters into the ERCOT market  Provide consumer tools for viewing 15-minute meter data  Provision devices for load control  The PUCT formed an Advanced Metering Implementation Team (AMIT) which is currently defining a roadmap for future SMT Portal capabilities  The CCET Project and all of its stakeholders will plan an extension of Portal capabilities that can be used to better support ERCOT as well as test aspects at the Texas Community of the Future.

15. 15 Planning Goals  Investigate large-scale residential load reshaping and control techniques, leveraging the major deployment of AMS  Investigate the prospects of expanding the ancillary service market in ERCOT to include aggregated residential load and distributed battery systems  Investigate peak shaving effects resulting from residential energy efficiency initiatives  Investigate consumer response to alternative pricing strategies

16. 16 Planning Approach  Continue to assist with planning efforts for future SMT Portal releases  Assist with the development of use cases, requirements, architectures and designs to support future needs  Provide feedback on customer interaction with and comments concerning SMT Portal  As needed, develop new functionality to support retail electric provider and/or customer access to SMT Portal data

17. 17 Project Components The Project will demonstrate three classes of technologies to help integrate 18,000 MW wind generation… Synchrophasor Technology Smart Meter Texas Portal Smart Grid Community of the Future 1 2 3

18. 18 Texas Future Community Overview  Leverage availability of efficient building envelopes for residential homes  Implement a variety of community- and residential-level smart grid technologies that will empower neighborhoods and consumers to conserve energy:  Solar (community and residential)  Storage batteries (community and residential)  Electric vehicle charging stations (community and residential)  Smart appliances  Home energy management (HEM) systems  Implement and evaluate customer response to load shed and real-time price signaling There is an existing Houston community called Discovery at Spring Trails that is developing energy efficient homes equipped with solar units and energy management systems. The developer, Land Tejas, has invited CCET to participate in this unique master-planned community. The intent is to:

19. 19 Discovery at Spring Trails A master-planned solar-powered hybrid community located north of Houston:

20. 20 Incorporating a Water Treatment Plant and Solar Farm

21. 21 Masco “Environments for Living (EFL) Certified Green” The EFL program is Energy Star rated and Certified Green. EFL provides 2 guarantees for the first 3 years of the home: 1) temperature throughout the home will never vary more than 3 degrees from the thermostat set point, and 2) energy use for heating and cooling the home will not exceed stated levels. Tight construction Fresh air ventilation Improved thermal systems Right-sized heating and cooling systems Air pressure balancing Internal moisture management Combustion safety Quality construction and materials “behind the walls”: Also includes low emissivity windows, energy efficient lighting, water conservation devices, and Energy Star appliances.

22. 22 Demonstration Goals  Educate consumers on smart grid and energy efficiency  Quantify home construction efficiency by comparing energy use with comparable code-built homes in a neighboring community, Legends Ranc h  Determine the demand response potential of four tranches of homes, from code-built to “deep-green” homes  Document consumer response to dynamic pricing models  Determine the effects of residential generation  Design an effective market transformation program  Determine the economic value of community-level energy storage, solar farm, and centralized electric vehicle charging  Determine the likelihood of TFC technology transfer to retrofit market

23. 23 Electronic Vehicle (EV) charging High efficiency HVAC systems with central Indoor Air Quality (IAQ) systems 2-way metering capabilities to support DG and new-generation demand response programs Home energy management services including an in-home display & software applications to help homeowners manage their electricity more efficiently Rooftop solar for serving as Distributed Generation (DG) for each home Home Battery storage Extraordinary high building envelope efficiencies Smart appliances Featured Technologies and Services

24. 24 Four Tranches of Homes Control Group Four customer tranches will be used for the benefit of collecting quality, accurate data. EE2 Group EE1 Group EE3 Group Number of Homes Development Load control Smart appliances Home display Whole-home battery backup Photovoltaic (PV) roof panels Net metering Electric Vehicle (EV) charging stations Whole-home Indoor Air Quality system High-efficiency HVAC systems HERS weatherization measures Legends Ranch Discovery at Spring Trials Discovery at Spring Trials Legends Ranch TBA Audit only Audit with light measures Audit with heavy measures Full weatherization Information only HEM capabilities Yes HighHigher Standard 1-way 2-way, no net metering 2-way, full net metering DG only, no grid participation DG with grid participation Information only HEM capabilities 1-way DR 2-way, light DR 2-way, full DR Yes HighHigher

25. 25 Demonstration Approach  Install and test equipment in the Discovery Center which will serve as the technology integration test and demonstration laboratory as well as a community outreach and education facility  Stage events to inform Texas leaders and the public  Use REP to enlist residential participants  Install equipment in participant homes, and work closely with homeowners  Install community-level components  Perform interoperability and cyber security testing  As part of data collection and analysis efforts spanning 2-3 years, implement various demand response and load control scenarios  Document lessons learned and analyze the prospects for application of TFC technologies in the retrofit market

26. Project Team

27. 27 Project Organization PMO CCET BOARDCCET PM Synchrophasor Future Community TAG Cross-Cutting Accounting DGI Frontier SwRI CenterPoint REP (TBD) General Electric HEM/PHEV Vendor (TBD) Land Tejas Develop. Co. EcoEdge * Montgomery County MUD 119 Younicos Valence Technologies Xtreme Power AEP ERCOT Oncor EPG * Sharyland Utilities Portal Planning AEP CenterPoint Oncor * Technical Component Lead

28. 28 MembersRoles & Responsibilities CCETPM - overall responsibility for successful execution AEP, Oncor and SharylandTDSPs – install PMUs, monitor synchrophasor network, and support SMT Portal planning ERCOTTexas ISO – support phasor measurement analysis, RTDMS enhancements, portal planning efforts and DR demonstrations Electric Power Group (EPG)Synchrophasor component lead & RTDMS improvements CenterPointTDSP for Texas Future Community - install AMI network, cell relays, and monitoring equipment REPsRetail Electric Providers (REPs) - provide customer interface, customer recruitment and DR program offering and implementation EcoEdgeFuture community component lead, customer education and assistance, and developer representative Land TejasDeveloper for Discovery at Spring Trails Member Roles and Responsibilities

29. 29 Member Roles and Responsibilities MembersRoles & Responsibilities Municipal Utility District #119Operate and maintain water treatment plan, and take ownership of community smart grid assets General ElectricSmart appliances, gateway, energy management dashboard, etc. HEM/EV Vendor(s)Installation of community and residential EV charging stations and integration of all smart grid technologies into home energy management system Valence/YounicosInstall and support residential storage batteries Xtreme PowerInstall and support community storage battery and SCADA system for solar farm Drummond Group (DGI)Interoperability planning, testing and evaluation Frontier AssociatesDesign of Unique approach to REP Participation, Data collection and analysis Southwest Research Institute (SwRI) PMO support and cyber security planning, testing and evaluation

30. Status of Work

31. 31 Synchrophasor Component Status  14 planned PMUs are installed and reporting to ERCOT  EPG providing a pair of 2TB drives to ERCOT  Beginning preliminary system design documents:  PMU to ERCOT network architecture  PMU/TDSP to ERCOT data communications architecture  Data repository design and implementation requirements  Data archiving policy  Additional tasks:  Perform interoperability and cyber security testing  Install PDCs at TDSPs and central PDC at ERCOT  Improve RTDMS displays  Continue PMU deployments  Test and evaluate reliability of data communications

32. 32 Future Community Component Status  Install and test equipment in the Discovery Center –  Technology integration testing and demonstration laboratory  Community outreach and education facility  Pre-production equipment delivered and installed  Stage events to inform Texas leaders and the public  Begin recruiting residential participants  EcoEdge already has two parties interested in “deep green” homes  Develop and implement public outreach program  Install equipment in deep-green homes  Begin with newly constructed homes as early as July 2011  Target is at least 1-2 new homes per month, per tranch (DST and LR)  Install community-level components  750 kW solar farm – working on PPA; equipment purchase 1Q11, installation to begin in 3Q11  250 kW battery – 6-9 month lead time; installation 4Q11  Perform interoperability and cyber security testing

33. 33 Preparing for Events  Hold events in various venues: Discovery Center, ERCOT & Professional/Trade Association Meetings  ERCOT: o Project presentation at selected committee meetings o RTDMS demonstration o Other CCET project presentations  Discovery Center: o Smart appliance demonstrations o EV and charging station o Energy management systems and DR demonstrations o RTDMS demonstration

34.  For 2011, begin exploring potential for new ancillary services by exploiting project technologies:  Aggregated residential load from in-home batteries and/or EV batteries (dispatch as “generators”)  Use of HEM system for enhanced load control/reduction algorithms – intelligent coordination of appliances, water heater loads, pool pumps, smart inverters, etc. SMT Portal Component Status

35. Status of Schedule

36. Current Schedule for Phase II

37. Questions?