1. Draft 3/18/2010 1 Simplified Voltage Optimization M&V Protocols Getting to Delta V Regional Technical Forum Presentation April 6, 2010

2. Draft 3/18/2010 Why We Are Here Strengthen BPA Energy Conservation program offers Develop simplified process (based on Utility feedback) Address recommendations from the 6th Power Plan 2

3. Draft 3/18/2010 3 BPA’s Overarching Goals 1. Develop a method of simplifying the delta V calculation for VO 2. Simplify /standardize utility participation process Key requirements: Develop a work group to collaboratively work out the details of the Delta V calculation Comply with Federal Energy Management Program M&V Guidelines Develop a reasonable approach to ensure voltage optimization settings and operating practices are maintained Build on consistent historical findings

4. Draft 3/18/2010 4 Distribution Efficiency Technical Workgroup (TWG) BPA formed a collaborative group to work out the details of the method of simplifying the delta V calculation for VO. This group is made up of distribution engineering, energy efficiency, operations and GM staff. Their expertise and guidance has been critical to the development of the proposed method. The TWG collaboration site currently has 42 utility members.

5. Draft 3/18/2010 5 Distribution Efficiency Technical Workgroup (TWG) Current TWG site members include: Avista Douglas Electric CooperativeMissoula Electric Coop Benton PUD Emerald PUDNorthern Lights Blachly-Lane Electric Cooperative Eugene Water & Electric BoardOkanogan County Electric Coop Central Electric Cooperative Fall River Rural Electric CooperativeOregon Trail Electric Coop Central Lincoln Flathead ElectricPortland General Electric Chelan County PUD Forest Grove Light & PowerPuget Sound Energy City of Port Angeles Grant County PUDRaft River Rural Electric Cooperative Clallam County PUD Douglas Electric CooperativeRivallie Electric Clark County PUD Idaho PowerSalmon River Electric Cooperative Clearwater Power Company Lakeview Light & PowerSeattle City Light Consumers Power Inc Lane Electric CooperativeSnohomish PUD Coos-Curry Electric Cooperative Lewis County PUDTacoma Power Cowlitz County PUD Lincoln Electric Cooperative, IncTillamook PUD Douglas County PUD Lost River Electric CooperativeUmatilla Electric Cooperative

6. Draft 3/18/2010 6 What we seek from the RTF Committee From the April meeting We want the RTF to form a sub-committee to review and comment on the proposed method of simplifying the delta V calculation for VO. We want the committee to provide comments to Adam Hadley by mid April. This will allow the TWG to prepare a response to your questions in time for the May meeting. From the May meeting During the meeting we will respond to comments received from the RTF and at the conclusion of the meeting we want the RTF to approve the simplified method of calculating VO Delta V as expressed in the protocols.

7. Draft 3/18/2010 7 What This Presentation Covers Energy conservation measure known as Voltage Optimization Previous work performed by the RTF regarding this measure Delta V ( ΔV ) calculation method VO Factor (VO f ) Highlight consistent findings Four stages of simplified VO calculation method Copy of VO calculation document final drafts to provide the committee time to review and comment so that a May decision is possible

8. Draft 3/18/2010 8 CVR / VO Clarification The measure known as Conservation Voltage Reduction or Regulation (CVR) has evolved over the last 30+ years and is widely known throughout the utility industry. The Simplified Protocols are different in that they ensure a certain level of distribution system stability prior to operating the system at a lower voltage. Thus we feel that Voltage Optimization (VO) is a more accurate description of this effort and will be using VO throughout this presentation.

9. Draft 3/18/2010 126 Volts 120 114 121126125124122 123 117124123121118 120 Normal Voltage Operation Average Voltage Standard Practice Normal Voltage Operating Range in Current Practice by Utilities Feeder Length What Is Voltage Optimization? 9

10. Draft 3/18/2010 126 Volts 120 114 121126125124122 123 115120119118116 117 Voltage Optimization Average Voltage Standard Practice Average Voltage VO Practice ΔVΔV Mitigate/prevent risk of low voltage and customer power quality issues ! Feeder Length System improvements Flattens voltage profile and allows additional voltage reduction What Is Voltage Optimization? 10

11. Draft 3/18/2010 11 Timeline of VO Related Events February 2004 – Presentation of Automated CVR Protocol No. 1Automated CVR Protocol No. 1 July 2004 – NEEA Distribution Efficiency Initiative begins October 2005 – NEEA team presents and gains approval of statistical method to analyze results of NEEA Study February 2008 – NEEA team presents NEEA Study results and general overview of calculatorNEEA Study results March 2008 – BPA hires Program Design Contractor to design VO Program April 2008 – NEEA team presents CVR calculator in detail to RTFCVR calculator May 2008 – RTF discusses calculator July 2008 – RTF approves statement of works and budget to revise the calculator. BPA offers funding.

12. Draft 3/18/2010 12 September 2008 – BPA opts to delay calculator enhancements until a simplified process can be built to support the use of the calculator April 2009 – Contractor delivers first draft of Simplified VO M&V Protocols to BPA July / Sept 2009 – BPA holds seven VO education & training workshops throughout the region July 2009 – BPA formed a group to collaboratively develop a method to simplify the delta V calculation. This group is known as the Distribution Efficiency Technical Workgroup (TWG).Distribution Efficiency Technical Workgroup August to Present – Draft Program Design & Simplified VO M&V Protocols completed Timeline of VO Related Events continued

13. Draft 3/18/2010 13 Energy Saved = Change in voltage x Voltage Optimization Factor x Annual Energy + Energy Saved from System Improvements E Saved = ΔV x VO f x E Annual + ΔE SI ΔV - determined from this program VO f - derived from NEEA load research study and confirmed by EPRI studies, and other industry pilots and research E Annual – Metered Data from Utility ΔE - Energy Saved from System Improvements From NEEA’s DEI research and pilot VO calculation method already “approved” by RTF Method of Calculating Energy Savings (Delta V) From proposed protocols

14. Draft 3/18/2010 14 Northwest VO Factor NEEA DEI End-Use Load Research Study Overall VO f of End-Use Load by Heating and Cooling Types Weighted to Northwest Electric Hot Water Heating & Electric Space Heating Electric Hot Water Heating OR Electric Space Heating Non-Electric Hot Water Heating & Non-Electric Space Heating Elec_Elec_Elec(60) Elec_Elec_None(57) Elec_HeatPump(61) Elec_Non_Elec(17) Elec_Non_None(22) Non_Elec_None(9) Non_HeatPump(10) Non_Non_Elec(102) Non_Non_None(43) 1.0 0.8 0.6 0.4 0.2 0.0 HotWater_SpaceHeating_Airconditioning (Qty) VO f

15. Draft 3/18/2010 15 NEEA DEI Study VO f Sensitivity Minor impacts due to AC End-Use Load 16% Variation

16. Draft 3/18/2010 16 Previous Studies & Pilot Projects: Consistent Findings California PUC 1976: Utilities were directed to modify service voltages to 120-114V where cost effective. [SDG&E – 8 feeders average CVR f of 0.7 to 1.0, Others reported CVR f as high as 1.3] EPRI 1981-1984: An evaluation of the Conservation Voltage Reduction was performed (Project # 1419-1) and concluded “In the interest of energy conservation, it is recommended that the utility industry consider operating their distribution circuits such that the upper 5% of the permissible voltage band be eliminated.” [CVR f ~1.1 for Texas utilities] BPA Study 1987: Assessment of Conservation Voltage Reduction Applicable in the BPA Service Area

17. Draft 3/18/2010 17 Previous Studies & Pilot Projects: Consistent Findings Northwest Utilities conduct CVR tests in late 1980’s: Some utilities adopted CVR practices [SnoPUD CVR f ~0.8] NEEA – Distribution Efficiency Initiative (2003-2007) : Established the VO factors based on heating and AC end-use loads for the Pacific Northwest. Confirmed and validated costs, benefits, and implementation options and tools. [ CVR f averaged 0.7 and up to 1.1] EPRI Green Grid Initiative: Confirms the NEEA DEI Study results of 1 to 3 percent energy savings. Feb 2010, Public Utilities Fortnightly Dominion Utility: Reported VO study findings of 0.8 VO f to PUC

18. Draft 3/18/2010 18 Simplified VO M&V Protocols Outlining a New Approach Concentrating on Pre/Post Voltage Levels in order to determine Delta V

19. Draft 3/18/2010 19 Four Stages to Simplified VO M&V Protocols Existing Performance Assessment and VO Implementation Plan Positive Results ? Move to the next project Yes System Improvements Baseline Pre-VO measurements VO Implementation Post-VO Measurements and Verification Persistence of Energy Savings No 1. 2. 3. 4.

20. Draft 3/18/2010 20 Stage 1 Existing Performance Assessment and VO Implementation Plan Gather actual or estimated distribution system historical data that is readily available. Perform preliminary assessment of distribution system existing level of performance. Develop a preliminary improvement plan describing the system improvements needed to meet minimum operating performance thresholds for VO.

21. Draft 3/18/2010 21 Develop preliminary plan for implementation of VO. Estimate costs and propose preliminary schedules. Calculate VO Factor using VO calculator. Estimate potential savings of combined system improvements and VO. Document all activities and results. Stage 1: continued Existing Performance Assessment and VO Implementation Plan

22. Draft 3/18/2010 22 Stage 2: System Improvements and Baseline Pre-VO measurement Implement system improvements necessary to meet minimum operating performance thresholds. Install equipment necessary to measure and/or operate VO with voltage control set for non-VO operation. Perform pre-VO baseline measurements for 7-day period for each voltage control zone (VCZ). The detailed measurements are averaged over each hour (system must meet minimum performance thresholds during this 7-day period).

23. Draft 3/18/2010 23 Why Performance Thresholds are Critical Establishing thresholds helps to resolve key issue found in pilot NEEA projects that did not perform well. Reduces voltage fluctuation due to changing loads/conditions More predictable voltage levels Less likely to have have rogue lateral taps Makes utility staff more aware of the feeder performance Improves power quality Reduces losses in the distribution system Allows recording periods to be minimized (1 week to establish daily load shapes and weekend/weekday load shapes) This is possible due to the linear nature of voltage drop and system loading and allows accurate calculations to determine annual average voltage levels.

24. Draft 3/18/2010 24 Voltage Control Zones Load Tap Changer (LTC) Transformer Feeder Breaker Feeder VCZ for LTC Secondary Voltage Zone Primary Voltage Zone

25. Draft 3/18/2010 25 Voltage Control Zones Load Tap Changer (LTC) Transformer Feeder Breaker Feeder VCZ for V-RegVCZ for LTC V-Reg Secondary Voltage Zone Primary Voltage Zone Secondary Voltage Zone

26. Draft 3/18/2010 26 Identify final installation cost of system improvements including VO equipment. (if applicable). Determine baseline pre-VO overall annual average voltage for all VO voltage-control-zones (VCZ) with voltage control set for non-VO operation. VCZ consist of all distribution lines that are controlled by a tap changing voltage regulator. Several VCZ may exist within one substation area. Calculate savings from system improvements. Document all activities and results. Stage 2: continued System Improvements and Baseline Pre-VO Measurement

27. Draft 3/18/2010 27 Stage 3: VO Implementation and Post-VO Measurements and Verification Prepare an initial estimate of energy savings resulting from VO using distribution system known or estimated customer load characteristics. Initiate VO operational voltage control. Perform post-VO measurements for 7-day period. The detailed measurements are averaged over each hour (system must meet minimum performance thresholds during this 7-day period).

28. Draft 3/18/2010 28 Determine post-VO overall annual average voltage for all VO voltage-control-zones (VCZ) with voltage control set for VO operation. VCZ consist of all distribution lines that are controlled by a tap changing voltage regulator. Several VCZ may exist within one substation area. Prepare a final post-VO verified estimate of energy savings resulting from VO. Document all activities and results. Stage 3: continued VO Implementation and Post-VO Measurements and Verification

29. Draft 3/18/2010 29 Stage 4: Persistence of Energy Savings For a three year period, complete annual self-certification checklist to ensure:  Voltage settings are still operating as prescribed within the prescribed VO voltage control zones.  Voltage control zone continues to meet minimum performance thresholds. The annual self-certification of system minimum operating performance is measured over a 12 month period. NOTE: TWG feels a process that’s been in practice for 3 years becomes a standard operating procedure and is highly likely to continue.

30. Draft 3/18/2010 30 Project Team Bonneville Power Administration Distribution Efficiency Technical Workgroup GOALmind Consulting - Jillianne Welker RMH Consulting - Bob Helm RW Beck - KC Fagen Utility Planning Solutions - Robert Fletcher

31. Draft 3/18/2010 31 Questions?

32. Draft 3/18/2010 32 Call for Dedicated Sub- Committee Need review, comments and recommendations on the document Simplified VO M&V Protocols (approx. 10 pages) which describes the method for simplifying the delta V calculation for VO. All comments must be sent to Adam Hadley by April 19, 2010.

33. Draft 3/18/2010 33 Thank you very much for taking the time to share your knowledge & experience.