maryland’s grid modernization experience
DESCRIPTION
Maryland’s Grid Modernization Experience. Presentation for the New England Electricity Restructuring Roundtable Kelly Speakes-Backman Boston, MA September 20, 2013. 1. EmPOWER Maryland Energy Efficiency Act. Enacted: April 2008 (PUA § 7-211) - PowerPoint PPT PresentationTRANSCRIPT
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Maryland’s Grid Modernization Experience
Presentation for the New England Electricity Restructuring Roundtable
Kelly Speakes-BackmanBoston, MASeptember 20, 2013
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EmPOWER Maryland Energy Efficiency Act Enacted: April 2008 (PUA § 7-211)
15% by 2015: per capita energy consumption reduction by 2015 2117 MW 5,475,000 MWh
Multi-faceted : Cost-effective programs for energy efficiency (EE), demand response (DR), distributed generation, CVR, and AMI/Smart Grid
Verifiable: §7-211(g)(1) requires projected & verifiable electricity savings
Three year plans: 2009-2011, 2012-2014 plans developed as Work Group recommendation of PSC Staff, OPC, MEA, Utilities and other stakeholders
Reporting: Quarterly data to Staff, semi-annual reports to the Commission
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Scope of EmPOWER Maryland Includes Energy Efficiency (EE), Demand Response (DR) & Smart Grid (SG) 2012 – 2014 program portfolios $695m in EE/DR Programs 2009 – 2015 projected to exceed $1b (not including SG)
Grid-Facing AMI (BGE, Pepco, DPL,
SMECO) Conservation Voltage
Reduction (Pepco, DPL, PE)
Customer-Facing Lighting & Appliance rebates HVAC HPwES (existing homes, whole-house) Residential New Construction C&I prescriptive measures (lighting,
HVAC, motors, VSD, custom retrofits, CHP)
Low-income Multi-family housing (e.g., common-
area EE measures) Direct Load Control
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Energy Reduction Program-to-Date,
September 30, 20122015 Goal (MWh) Percentage of 2015
Goal
BGE 1,231,156 3,593,750 34%Pepco 424,839 1,239,108 34%PE 176,686 415,228 43%DPL 75,724 143,453 53%
SMECO 87,630 83,870 105%
Utility Program Achievement of the 2015 Energy Reduction Goal
Demand Reduction Program-to-Date,
September 30, 20122015 Goal (MW) Percentage of 2015
Goal
BGE 726 1,267 57%Pepco 188.357 672 28%PE 24.511 21 117%DPL 39.765 18 221%
SMECO 56.558 139 41%
Utility Program Achievement of the 2015 Peak Reduction Goal
EmPOWER Maryland Progress
Cost Recovery Mechanisms
Customer-Facing Portfolios: monthly surcharges2012 Residential Avg Monthly Impacts 2012 C&I Consumption Charge (per kWh)
Grid-Facing Programs: regulatory asset Smart grid utilities will use AMI reg asset Non-smart meter utilities will recover in rate base (PE)
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Utility EE&C DR TotalBGE $1.28 $0.75 $2.03
Pepco $1.13 $1.53 $2.66DPL $1.07 $1.89 $2.96PE $1.67 n/a $1.67
SMECO $1.52 $1.47 $2.99
Utility EE&C DRBGE $0.000870 N/A
PEPCO $0.000831 $0.000101DPL $0.000430 $0.001055PE $0.000754 N/A
SMECO $0.000180 $0.001470
Maryland Smart Grid Context
Introduced in the context of EmPOWER No legislative mandate or specific guidelines set forth BGE and Pepco each received up to $200m ARRA Smart Grid
Investment grants All Maryland AMI proposals were preceded by pilot projects,
including: Technology pilots Multi-year peak pricing pilots Operational benefits pilot
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Maryland Smart Grid Business Cases BGE, Pepco, DPL proposals estimated strong cost-effectiveness
Roughly half the benefit from operational savings and half from peak load reductions (mostly capacity benefits)
Dynamic pricing using peak time credit approach to achieve usage reductions during critical peaks
SMECO cost effectiveness positive Includes operational benefits only Did not include peak load reduction savings Possible time of use rates in the future
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Maryland Commission Decisions Cost recovery contingent upon demonstrated cost-
effectiveness Smart grid expenditures may be requested in first rate case
following full deployment and cost-effectiveness analysis Plans and Metrics
55 total metrics Metrics monitor deployment progress, costs/benefits, customer
engagement Customer education plans Cyber-Security plans
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Maryland Smart Grid Progress
BGE 1.2 million electric & 660,000 gas meters Roughly 33% of installations completed, complete in 2014
Pepco-MD (PHI Affiliated) 550,000 electric meters in Maryland (largest jurisdictional PHI utility) Preceded (one year) by full implementation in Pepco-DC 98% complete by June 2013
DPL-MD (PHI Affiliated) 210,000 electric meters in Maryland DPL-DE completed full implementation (electric and gas) in 2012 Installations underway, complete late 2013/early 2014
SMECO 160,000 electric meters Approved Summer 2013
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Maryland Smart Grid: AMI
AMI overall benefits Reliability (duration) Demand reduction Energy use information transparency New technology advances and applications
Forecasted Smart Grid demand reductions through 2017 (MW)
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Leveraging EmPOWER and AMI
Dynamic Pricing Direct load control Peak time rebates Time of use pricing Real-time pricing
Conservation Voltage Reduction (“CVR”) Behavior-based EE programs Electric Vehicles and the Grid
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Maryland Smart Grid: Dynamic Pricing
Dynamic pricing includes DLC, PTR, TOU, real time pricing
Peak event days Includes PJM DR days, high LMP days, and could include distribution
problem days In most cases, declared for the following day Generally declared June – Sept. Maximum hours are 12pm – 8pm, usually actual is less Multiple customer communication streams in advance
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Maryland Smart Grid: Direct Load Control
DLC program reductions approximately 700 MW BGE “Smart Energy Rewards”
Voluntary “Opt-in” for residential 100%, 75%, 50% option
PHI “Peak Energy Savings Credit” Voluntary “Opt-in” for residential, small commercial 100%, 75%, 50% option
$1.25/kWh during peak period Reductions monetized in PJM capacity and energy markets True-up in annual distribution surcharge/credit
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Maryland Smart Grid: Peak Time Rebates
$1.25/kWh credit for reduction from customer-specific baseline Calculates usage difference from a comparable degree-day
Cash flow similar to DLC programs Peak load reductions monetized in PJM capacity and energy markets PJM payments fund customer credits True-up in annual distribution surcharge/credit
Can augment DLC programs If monthly reduction exceeds DLC commitment, customer receives end-
of-season credit for the difference No penalty for non-participation Retail supply neutral – except for customers whose supplier
provides their own PJM based load reduction program
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Maryland Smart Grid: CVR
PE received approval to implement CVR program under its EmPOWER portfolio Recovery of program costs will be sought in rate base after full
implementation
Commission Order No. 84569 directed other utilities to investigate feasibility of implementing CVR in respective service territories (Dec. 22, 2011) Directed recovery of program costs to be sought through rates
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Maryland Smart Grid: Behavior-based EE Behavior-based programs encourage direct customer
engagement April 2012: Commission authorized EmPOWER utilities to
implement energy usage programs
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Metric: Participants
Annualized Energy Savings (MWh)
Peak Demand
Reduction (MW)
Total Program
Expenditures
Forecasted 50,000 5,126 0.000 $381,327Reported 50,198 5,517 2.427 $617,669Forecasted 25,000 1,809 0.000 $154,888Reported 24,024 0 0.000 $350,981Forecasted 25,000 9,398 1.071 $412,749Reported 72,697 11,824 0.111 $588,530Forecasted 12,500 3,888 0.445 $114,440Reported 51,486 1,769 1.592 $304,983
Behavior-Based Residential Program Results (Net Wholesale 2013 Q1 and Q2)
SMECO
PE
DPL
Pepco
Maryland Smart Grid: Electric Vehicles Maryland Senate Bill 179 (2011)
Establish “a Pilot Program for electric customers to recharge electric vehicles during off-peak hours.” Pilot Program in place June 30, 2013 Report findings to General Assembly by February 1, 2015
Increase efficiency and reliability of electric distribution system Encourage lower electricity use at times of high demand
BGE Pilot Program: voluntary, residential, TOU rate Based on whole-house TOU with lower off-peak pricing (400)
Pepco Pilot Program: voluntary, residential options Existing customers with EVSE: whole-house TOU or PIV rate (200) Existing customers without EVSE: PIV rate and bill, Level II charging
station, second meter (50) New customers without EVSE: whole-house TOU (1000)
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Maryland Smart Grid: Opt-out? Jan. 7, 2013: Order No. 85294
Commission concluded (3-2) that the public interest requires provision of additional option related to installation of smart meter
Additional proceedings held August 20, 2013 Whether to allow option to retain existing meter, RF-free or “near RF-
free” meter Associated costs, allocation and procedures for exercising option Treatment of “non-responsive” customers What percentage opt-out scenario to consider Low-income opt-out scenarios
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Maryland Smart Grid: Cyber Security Plans
Company-specific AMI cyber security plans Plans apply to AMI, not utility-wide operations Work Group consensus support
Commission oversight plan applicable to BGE, Pepco, DPL Key feature is independent 3rd party consultant answerable to PSC to
review all details of utility AMI cyber security activities and incidents Approved by Commission June 21, 2013
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SMECO Operational Pilot Results
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