2. Thursday, December 17, 2015
DC MEDSIS Modernizing the Energy Delivery System for Increased Sustainability FC No. 1130
Jorge A. Camacho, P.E.
Chief, Office of Infrastructure and System Planning
Public Service Commission of the District of Columbia
1325 G Street N.W., Suite 800, Washington, D.C
| Office
Interoperability standards, smart grids.

3. Looking at thermal, gas, electric to increase Efficiency, Reliability, Interactivity and Cost-Effectiveness.
Modernizing Using “Old Technology”?
Energy -> Gas+Electric
What do we mean by modernization? Are electrons going to move faster?
For our purposes the replacement of CI, unprotected steel is not viewed as a modernization effort. Remote control of shut-off valves where non-exisitng may be considered.
Other Initiatives:
MA -> Facilitate adoption of grid modernization technologies and practices -> to define scope of future proceedings.
NY -> Rev – Holistic Vision across ht utilities looking to animate the market (Distribution System Platform), eventually to look at microgrids.
CA -> 1.3GW Energy Storage Mandate.
MN -> e21 Customer-Centric, performance-based regulatory approach (energy efficiency, reliability, affordability, emissions reductions, predictable rates)

4. Why Is the Current Energy Model being reconsidered?
Customer Expectations
Clean Energy Mandates
Technological Innovation
Cost Reductions
System Reliability Issues
Business case to reduce cost, now clean energy mandates, add reliabiltity

5. The distribution wires have been the domain of the electric utility
The distribution wires have been the domain of the electric utility. Non-Utility stakeholders are requiring access to these wires -> physically and visually. How to enable DER penetration while still maintaining system reliability?
San Francisco, CA
Virtual Grid Mapping technology that utilizes digital signals from power flows could help identify locational benefits of DG.
Optimization of DER as a function of location, identify locations where DER best reduce the overall cost of providing electricity (below depiction shows DER relative potential hosting capacity).
DER -> energy storage, intermittent renewable, combustion turbines, energy efficiency, demand response.

6. LVAC Networks Pepco has ~ 3700 network transformers in the District
Primarily located within the CBD to support the high-density commercial loads
Causing reliability issues, system not designed for bidirectional flow, voltage
Reverse Flows

7. However, technology exists to overcome these technical challenges in the LVAC network and potential voltage violations on radial feeders.
Retrofitted conEdison network protectors (2-Way Communication Relays)
increased behind the meter DG penetration in Pepco’s LVAC network poses a real challenge. Network protectors are very sensitive and when they open, primary network feeders could become overloaded during a hot day causing more outages. Pepco network protectors need to be upgraded. conEdison already had made upgrades to accommodate 1.56MWp of photovoltaic generation in their network at the Bronx.
Active Energy Efficiency

8. A Delicate Balancing Act Craft a Win-Win proposition between the Utilities and 3rd Party Developers High Level Goals: Increased Efficiency, Interactivity, Reliability, and Cost Effectiveness Collaboration
Through a Proceeding that is following the Matthew’s Approach of informaility, where we are seeking collaboration from the 200+ stakeholders -> Tesla, Walmarts, Microsofts of the world to the local electrician who just started freelancing as a solar installer.
We don’t even keep transcripts, they are quite interactive.
Procuring Local Generation through a DSO, Bilateral Transactions (Transactive Energy), this is emerging as an expansion of DER.

9. How to Adapt: Utilities -> provider of different products and services
Today
Future
All this modernization sits on top of software and communications for optimization.
Not just selling joules anymore. Customers are demanding interactivity with the distribution wires, for different reasons: environmental, economic, local interests…
Bilateral Transactions should be enabled, Transactive Energy
The electric grid will evolve from the one-way system of today to a two-way multi-faceted grid.
At root we’re seeing the effect of technology change on utilities and those technologies are appearing in the form of distributed generation and customer awareness tools.
Technology drivers & trends:
Renewable energy integration
Distributed energy resources
Big data
Energy management
Grid optimization
Storage
Source: EPRI

10. How the Grid is Transforming
Increasing Amount of Connected Devices
Communications and Software are Key Enablers
The Secret Sauce
Hiring Engineers with good some king of high-level programming skills, people that will understand the different protocols and architectures of the communication systems. It is not about electrons flowing from static high to low potential levels anymore.
the importance of ICT beyond cyber security for enabling innovation across generation, delivery and use of electricity. To present this provide examples of current patchwork situation of ICT embedded in many operational devices like capacitor Bak controllers, voltage regulators, DMS, meters etc. without consideration of interoperability, data integration, etc and of we continue this path we will get into a patchwork of ICT systems on the OT side that will not be the optimum way. After presenting this theme and getting concurrence form the members we will need to engage them into a strategic discussion on what can be done by the industry to drive interoperability and security and also present the case on the tactical side what benefit they will by engaging with is when they and their staff are engaged in many other forums
Combination of fast storage, power electronics (asynchronous generation) and advanced optimizing control will become a general purpose grid element as fundamental as power transformers and circuit breakers

11. No need to start from scratch, almost 100% AMI penetration in DC, and ~ 13MW of PV Solar.
We want to be 20% renewable by 2020; should be 0.70% Solar RPS in 2015 and 2.5% in 2023.
RPS should have us at 65MW solar, we are at ~33MW Total Capacity Certified, ~13MW DC-Based Capacity Certified.
HI 100% renewable by 2045.

12. Evolving Distribution Grid Public Policy Issues
The public policy issues relating to the evolving distribution grid
What planning process should be employed for the evolving grid?
How should the grid be designed and constructed?
How and by whom should the grid be operated?
How and by whom should the grid DER marketplace be designed and managed? What services behind the meter can be provided and by whom?
How to define and quantify locational avoided costs that would be realized under DER integration scenarios?

13. Planning Process Issues
What should be the role and function of the utility in the planning process?
As contrasted with existing practice?
How should the interests of the multiple stakeholders that will use the grid be represented in the planning process?
Should planning now be a collaborative process involving all stakeholders?
How should the final planning decisions be made for the new grid?
How should the order and priority of investments (e.g., physical plant, communications, remote sensing, etc.) in the new grid be determined?
Who should bear the financial risks associated with:
Any failure of the new planning process to meet the needs of the DER customer?
Premature obsolescence of existing distribution plant facilities?
Australia conveneing a national process. No consensus. National Process -> standardization, vr interconnected word.

14. Design and Construction Issues
What should be the role of the utility in the design and construction process?
Should the design and construction of the new grid be outsourced?
What should be the functional capabilities of the new grid?
How should those capabilities be determined?
Role of microgrids to enhance reliability and facilitate DER integration?
Should utilities be allowed to own and/or operate microgrids?
Role of third-parties to:
Own and operate microgrids that serve multiple customers across property lines?
Operate commercial multi-customer, multi-property microgrids?

15. Operation of Grid Issues
Should the utility or an independent entity be designated as the Distribution System Operator (DSO) for the new grid?
Would an independent entity provide greater value to the customer?
DSO need to exercise control over all assets connected to the grid for reliability purposes?
Will the DSO be able to override operations by all third-parties connected to the grid?
How would the DSO be able to ensure that it has sufficient assets under its control to balance supply and demand on the system?
What are the performance metrics for the DSO?

16. DER Market Facilitation
Should the utility or an independent entity be given the responsibility for establishing and operating a market for DER products and services?
Should a utility that functions as a DSO also be allowed to participate in the DER marketplace?
If so, under what rules of conduct?
Through an affiliate?
How should prices in the DER products and services market be determined?
Regulated or market-based?
What access to both customer and operational data should be provided to DER market participants?
Can a utility become a full service energy provider in its service territory?

17. Some Observations Customers want choice
Customers support green technologies particularly solar
Customers want independence
Customers want more control over their energy bills; they want to better manage energy usage
Some customers think utilities oppose renewables especially rooftop solar
Some customers think utilities break barriers to customer choice
Some customers do not think utilities are innovative or support new technologies
Some customers think utilities are slow to act
Customers want to interact with the grid and derive value, for different reasons: (1) economic, (2) environmental, (3) increased reliability. 17

18. Regulator is to ensure that the optimization of the energy delivery is in the public interest.
Empowering customers with more choice about how they manage and consume electricity
The combination of fast storage, energy conversion electronics, and advanced optimizing control will become a general purpose grid element as fundamental as power transformers and circuit breakers.
Optimization is on the software algorithms, Regulator to make sure the optimization is on the public interest.
E.G., a feeder overvoltage may be best resolved employing conservation of volatge if load mainly resistive instead of performing generation response (shedding generation) via smart inverter.

19. Ownership/Operation/ Maintenance Dispatch Rules Oversight: Utility DSO
Potential Structures
Ownership/Operation/
Maintenance
Dispatch Rules
Oversight:
Utility DSO
3rd Party DSO
Dispatch ISO, if it is still needed.
Interactive Electric Distribution System
Dispatch Rules: Economic, Environmental, Reliability.
Oversight Utility DSO: emphasis on dispatch -> 3rd party DERs, still safety and reliability, 3rd party more emphasis on safety reliability oversight
Telecommunications TOU pricing didn’t work. Software and optimization of distribution assets through open standards communication to make
Optimization:
What dg to dispatch, fuel reserves, energy storage available, function of temperature, bring District Energy resources for thermal into play. Reactive power dispatched close to the load, increasing efficiencies, energy conversion electronics to automatically compensate.
Conservation of Voltage to be done right, telecommunications throttle data an order of magnitude -> didn’t work. AT&T made to pay to settle lawsuit.
Procuring Local Generation through a DSO, Bilateral Transactions (Transactive Energy), this is emerging as an expansion of DER.
Variability costs money and may be nondispatchable
Source: DOE

20. A simplified Distribution System Operator (DSO) Structure
Maybe we get to the point that dispatching from ISO is optional.

21. Compensation Efficiency Ancillary Services @Distribution
Interconnection
Ancillary
IEEE1547, UL1741
Power Electronics and not Prime Movers will be driving the DER space.
UL1741, IEEE1547
Asynchronous generation, no inertia,
Microgrid flutter much because they have no inertia, and it will move with the grid and it tends to oscillate.
When you inject vars, you are affecting both voltage and phase (angle), this will be bad for low inertia systems, they fluffle due to intermittency and could oscillate.
Synchronous Condensers will take care of inertia, to take care of unity power flows.
Also you could take advantage of the CHP turbines (frequency stability)
Automatic Reactive Compensation, 2. Inertial Response Active power control responds to significant under-frequency events -> Power Electronics
Moving from rotating machines to power electronics introduce harmonics as a result of fast switching (voltage regulation)
Interconnection Issues

22. Emerging Concerns with Microgrids
Who should develop, own and operate microgrids in restructured states?
Treated as IPPs?
As utility-rate based investment?
As renewable energy or energy efficiency?
As premium service?
Adjunct to macrogrid?
I don’t have answers, I have questions.
Safety Issues, TX, the utility owns the microgrid and they cannot export.

23. Kendall Cogeneration Station – District Energy Boston, Cambridge
Crossing the public right-of-way
Wheeling Arrangements, Remote (Virtual) Net Metering?
Why did the microgrid cross the road?
•Problem of serving multiple buildings across public ways
•Let utilities own distribution assets?
•Abolish franchise rules in certain circumstances?
It didn’t because of utility franchise rules
Efficiency of District Energy
District Energy generating both electricity and steam -> the original microgrid.
Blackout capabilities, industrial jet engine.
By leveraging advanced CHP technology, the natural
gas-fired Kendall Station recaptures thermal energy
previously lost to the environment. Combined with
Veolia’s retrofit of Kendall Station, the new pipeline
eliminates hot water discharge to the Charles River
and integrates the district energy systems serving
downtown Boston and East Cambridge. By investing
in recent reliability improvements, including
upgrading the plant’s dual-fuel capabilities, the CHP
plant is now able to restore electric service during
a grid blackout, while ensuring reliable 24/7 “Green
Steam” for customers.
256MWe, 1.2Mlbs/hour steam
Stack, may trigger federal Prevention of Significant Deterioration (PSD) permitting for particulate matter (PM) and CO2.
conEdison in NYC pushing CHP and customer sided DG in T&D planning.
NYU’s cogeneration plant serves 43 buildings with hot water, 30 buildings with chilled water, and 26 buildings with power using an arrangement of turbines, generators and boilers and an interconnect to the Con Edison power grid. NYU’s system is a true microgrid that helps to provide reliable service to the campus while relieving demand from the utility power grid. When ConEdison lost power in the area the NYU cogen seamlessly switched into island mode and remained up without a glitch. When power was restored days later the system again seamlessly reconnected to the local grid.
Approximately 75 uGrids in NY ~200MW of installed uGrid capacity.
We don’t regulate thermal, not to many thermal utilities in the US.
Kendall Cogeneration Station – District Energy
Boston, Cambridge

24. Making a potential case for Microgrid deployment
Barriers
Obligation to Serve
Ability to balance generation, storage and load to maintain
reliable operations when disconnected from the grid
Safety, Reliability Oversight
Wholesale FERC Regulation -> Any exported electrons will sink locally
Risk Aversion Utilities
Exclusive Franchising
Attracting Third-Party Investment, it may not make economic sense
It may make more sense for generation to sell into
RTO -> sustainable business model
Less distribution wires, less revenue to distribution utility,
what’s the ratebase?
CHP Air -> Air+Noise Permitting
Benefits
Increased Efficiency -> Lower GHG
Increased reliability to microgrid participants and possibly increased resiliency to surrounding areas (community stewardship), local balancing
Deferment or elimination of utility capex to address Load Growth and Power Quality (reliability)
Fast-Acting ancillary services to the distribution system
Security advantages of distributed generation (less vulnerable than centralized generation)
Total Cost of Energy decrease
Energy infrastructure expenditure decisions possibly made closer to the customer
It is important to define the expected value of the microgrid: Reliability, Economic, Enviromental Stewardness?
IL Legislature calling for $250M for 6 microgris in the ComEd’s service territory and most of the sites selected support criticqqal infrastructure: airports, hospitals, police.
Local Balancing of three phase power delivery, less current on the neutral, less losses.

25. MEDSIS Initiative -> What’s Next? – Tentative
Informational Workshops – 2015
Final Informational Workshop: February 12, -> Become a collaborator.
Roadmap, Long Term and Short Term Goals – 1st Q 2016
Creation of Working Groups – 2016
Technologies, Policies, and Sustainable Business Models
Possible Spinoffs into other proceedings that could seek rulemaking –
Eventhough we are approaching the initiative holistically, the actual implementation is sought to be performed piecemeal so we can move the effort forward and to stay agile.
Fast Track Project Deployments, without long hearings
Also address the issue of Safety, right now we are struggling at the IEEE NESC and DOE PNNL with how to address the shift of facilities structure, also how to address the fact that I can’t denergize and electrochemical cell or capacitor.
Possible Waived Project Deployments (Test Models) – 2017