1. What is the Smart Grid? presented to the APIC Power and Energy Innovation Forum EnerNex Corporation November 5, 2009

2. 2 Goal: Merge Communication and Energy Networks

3. 3 Changing the Face of the Grid Real-time Simulation Wide-Area Reliability Network Optimization Customer Participation Participation in Energy Markets Source: EPRI IntelliGrid

4. 4 Smart Grid “Elevator Speech” for Consumer Right NowWith Smart Grid Utility doesn’t know when power is used Utilities will offer you lower rates for using power in “off-peak” times Utility often relies on you to tell them when your lights go out Your lights will go out less often and outages won’t last as long We get large blackouts like the northeast in 2003 The grid will automatically create “firebreaks” fast enough to stop them Utilities do green power and electric cars as “one-offs” Consumers with green power and electric cars can be everyday items Utilities are 10-30 years behind in cyber-security Your electric power will not be as vulnerable to attackers Energy prices will increase as aging infrastructure is replaced Prices won’t rise as fast because the system will be more efficient Source: EnerNex

5. 5 Everyone Has a Different Picture Source: BC Hydro The “FERC 4” – Smart Grid Policy Priorities Wide Area Situational Awareness Demand Response Electric Storage Electric Transportation Added by NIST: Advanced Metering Distribution Grid Management Cyber Security Network Communications

6. 6 NIST Three Phase Plan 6 PHASE 1 Identify an initial set of existing consensus standards and develop a roadmap to fill gaps PHASE 2 Establish public/private Interoperability Panel to provide ongoing recommendations for new/revised standards PHASE 3 Testing and Certification Framework MarchSeptember 20092010

7. 7 NIST Smart Grid Framework – 1.0 Draft Smart Grid Vision –Concepts, benefits –Importance to National Energy Policy –Key attributes Conceptual Reference Model –To be used for discussing uses, relationships, use cases –Consists of domains, actors, applications, networks, paths Standards Identified for Implementation –Original 16 from first workshop –Additional 21 in this document –Included 46 more “for consideration” –Asks for review of standards selection criteria Priority Action Plans –Gaps in existing standards, missing standards, harmonization –Agreed on in workshops with SDO representatives

8. 8 Conceptual Model High Level View

9. 9 Conceptual Reference Model Source: NIST Smart Grid Framework

10. 10 Demand Response – Example Only! 1a. Enroll Customer Message Stages: 1.Enrollment 2.Event 3.Monitoring 4.Billing 1a. Sequence Number 1b. Register Customer 2a. Market Price Change 2b. Announce Price Event 2c. Distribute Price Event 2d. Local Price Event 2e. Reduce Usage 3a. Report Usage 3b. Record Participation 4a. Billing Cycle 4b. Send Bill ebXML OpenADR SOAP REST HTTP Example Standards IEC 61970 IEC 61968 MultiSpeak ANSI C12 BPL Cellular WiMAX Proprietary ZigBee SE WiFi BACnet HomePlug Ethernet ANSI C12 SONET WDM Frame Relay WiMAX Interface Source: EnerNex

11. 11 Cross-Cutting Issues: Security, Resource Identification, Time Synch, etc. Technical: Syntactic Interoperability, Network Interoperability, Basic Connectivity Informational: Business Context, Semantic Understanding Organizational: Policy, Business Objectives, Business Procedures The “GWAC Stack” Underneath Source: EnerNex

12. 12 First 16 NIST Framework Standards 1AMI-SEC System Security Requirements 2ANSI C12.19 End Device (Meter) Tables 3BACnet Building Automation & Control Net 4DNP3 – Distributed Network Protocol 5IEC 60870-6 – Inter-Control Center 6IEC 61850 – Comms Nets in Substations 7IEC 61968/61970 – Common Info Model 8IEC 62351 – Data Comms Security 9IEEE C37.118 - Synchrophasors 10IEEE 1547 – Distributed Resources 11IEEE 1686 – IED Cyber Security 12NERC Critical Infrastructure Protection 13NIST SP 800-53/82 Fed Info Sys Security 14Open Automated Demand Response 15Open Home Area Network Requirements 16ZigBee/HomePlug Smart Energy Profile

13. Smart Grid Interoperability Panel and Governing Board SGIPGB Products (IKB) NIST Oversight SGIP One Organization, One Vote Working Groups Working Groups SGIP Standing Committee Members (3) SGIP Standing Committee Members (3) Smart Grid Recognized Standards Use Cases Requirements Stds Descr. Priority Action Plans In Progress Priority Action Plans In Progress At large Members (3) At large Members (3) Ex Officio (non-voting) Members Ex Officio (non-voting) Members Stakeholder Category Members (21) Stakeholder Category Members (21) Standing Committees Conceptual Model SGIP Structure 13

14. 14 Stakeholder Categories - Draft 1.Investor Owned Utilities 2.Municipal Electric Utilities 3.Rural Electric Utilities 4.Independent Power Producers 5.Renewable Power Producers 6.Transmission Operators 7.Retail Service Providers 8.Commercial & Industrial Consumers 9.Residential Consumers 10.IT, Application Developers & Integrators 11.ICT Infrastructure Providers 12.Electric Transportation 13.Power Equipment Mfg and Vendors 14.Appliance Manufacturers 15.Electricity & Financial Market Traders 16.Venture Capital 17.Standard Development Organizations 18.Professional Societies, User Groups, Industry Consortia 19.Academia, R&D Organizations 20.State & Local Regulators 21.Relevant Federal Agencies

15. 15 Ways to Participate Contribute to IEC, IEEE and other standards orgs –The SGIP will not make standards –Only provides a forum and advisory to NIST Join in as part of the SGIP stakeholder categories –Web conferences Oct 9, Oct 28, Nov 12 –First face-to-face meeting at Grid-Interop Conference –Call for candidates for the governing board Provide feedback on the charter –First act of SGIP will be to ratify its charter –Governance board could include international liaisons

16. Reference Information

17. 17 Links NIST Smart Grid Site http://www.nist.gov/smartgrid/ EPRI Roadmap Report http://www.nist.gov/smartgrid/Report%20to%20NI STlAugust10%20(2).pdf Framework 1.0 Draft http://www.nist.gov/public_affairs/releases/smartg rid_interoperability.pdf NIST Collaboration Site http://collaborate.nist.gov/twiki- sggrid/bin/view/SmartGrid/WebHome IEC Smart Grid Stds http://www.iec.ch/zone/smartgrid/grid_relevantstd s.htm Grid-Interop Conference http://www.grid-interop.com/2009/ DOE System Report http://www.oe.energy.gov/DocumentsandMedia/fi nal-smart-grid-report.pdf

18. 18 NIST Interoperability Framework – History 2007 EISA gives NIST responsibility for a Smart Grid Framework 2008 NIST forms Domain Expert Working Groups –T&D, Home-to-Grid, Building-to-Grid, Industry-to-Grid, PEV-to-Grid, Business and Policy, Cyber Security 2009 ARRA accelerates need for standards –EPRI selected as contractor 2009 NIST holds large-scale workshops to identify standards –Several hundred stakeholders from a variety of groups –April 28-29: Produced draft list of 16 standards: “low hanging fruit” –May 19-20: Analyzed use cases, requirements and standards –August 3-4: Developed Priority Action Plans with SDO representatives 2009 August EPRI produces Roadmap Report based on workshops 2009 September –NIST Smart Grid Framework draft 1.0 released –EnerNex selected as contractor for next phases

19. 19 Draft Standards Acceptance Criteria Enables Smart Grid characteristics as defined by EISA, DOE Smart Grid System Report Is applicable to one of the priority areas identified by FERC and NIST Enables the transition of the legacy power grid to the Smart Grid. Is an open, stable and mature industry-level standard developed in consensus processes from a standards development organization Is supported by an SDO or Users Group to ensure that it is regularly revised and improved to meet changing requirements and that there is strategy for continued relevance. Is openly available under fair, reasonable, and nondiscriminatory terms. Is developed and adopted internationally, wherever practical