Smart Grid Legal News

DOE and the National Defense University Offers Free Microgrid Security Training

Linda R. Evers — Thu, 13 Jun 2013 13:06:11 -0500

Microgrids play an important role in the development of a smarter electric grid and present security and safety challenges which must be addressed. Ever wanted to attend the National Defense University? On June 18, 2013, the Department of Energy and the National Defense University will co-host the Smart Power Infrastructure Demonstration for Energy Reliability and Security (SPIDERS) Joint Capability Technology Demonstration (JCTD) Industry Day. Industry Day will provide organizations interested in implementing a secure microgrid with guidance on assessing their facilities’ needs, translating them into procurement requirements and assembling the necessary site data package for bidders.

This event is open to all stakeholders with an interest in the development of secure microgrids, ranging from policy and regulatory bodies and equipment vendors to those tasked with the development of standards and specifications and the utilities that will be interconnecting with these microgrids.

Industry Day Highlights:

Performance Metrics for Evaluating New Microgrids
Approaches to Controlling Architecture Specifications
Utility Interconnection and Service Agreement Issues
Cybersecurity
SPIDERS Technology Case Studies including lessons learned and results of the Phase 1 Operational Demonstration performed at Joint Base Pearl Harbor Hickam (JBPHH).

Details:

June 18, 2013
8 a.m. E.T.
National Defense University
300 5th Avenue
Fort McNair, DC 20319-5066

Register soon as space is limited. Attendance is limited to one representative per energy company/agency office/university lab. All confirmed registrants will receive a confirmation email with location information and meeting agenda.

Cybersecurity for the Grid Summer School - June 17-21, 2013

Linda R. Evers — Fri, 07 Jun 2013 13:14:59 -0500

Got plans for the summer? Researchers from the University of Illinois at Urbana-Champaign, Dartmouth College, Cornell University, the University of California at Davis and Washington State University are addressing the challenge of how to protect the nation's power grid by improving the way the power grid infrastructure is built, making it more secure, reliable and safe. Together, these institutions make up The Trustworthy Cyber Infrastructure for the Power Grid (TCIPG) Center, a Department of Energy-funded project, with support from the Department of Homeland Security. TCIPG is hosting its third summer school for utility and industry practitioners, researchers and students to attend and explore the nexus between electrical energy systems and cybersecurity on June 17-21, 2013, at the Q Center in St. Charles, Illinois.

The program is designed to provide an essential background in the basics of security and resiliency for cyber infrastructure in power and smart grids. Participants will also gain an understanding of the smarter energy system evolving from the power grid, as well as associated cybersecurity challenges. An optional hands-on training lab for SCADA security assessment, as well as many other topics will be explored, including:

Smart Grid Vulnerabilities
Secure Network Architecture for Control Systems
Security Testing, Assessment and Validation of Devices in Utility Environments
Security-aware Modeling and Simulation of Grid Systems
Renewables and Resiliency in Microgrids
Military Microgrids and SPIDERS Implementation
Approaches and Challenges in Vehicle-to-Grid Systems
Advanced Techniques for Security Assessment
Security Testing Framework for Utilities

This detailed agenda provides more information on the summer school.

NERC Issues 2013 Summer Reliability Report: Outlook Stable

Linda R. Evers — Thu, 30 May 2013 14:29:36 -0500

Just in time for the first anticipated heat wave of the summer in the Philly area, North American Electric Reliability Corporation (“NERC”) released the 2013 Summer Reliability Assessment.

Prognosis: Stable with a chance of weather strain.

Good news: A majority of the areas in the NERC report are projecting sufficient resources to meet summer peak demands. Retirements and retrofits to meet future environmental regulations are not anticipated to cause reliability concerns this summer.

Wind and Solar Capacity resources are projected to increase over 2012’s amount. Solar and wind expected on-peak capacity projections for this year are 2,928 MW and 11,753 MW, respectively.

Bad news: Planning reserve margins for ERCOT are below the NERC Reference Margin Level. The Anticipated Reserve Margin for ERCOT is 12.88 percent for summer 2013. This is below the 13.75 percent target for ERCOT. Sustained extreme weather this summer could threaten supply adequacy.

Monitoring is necessary to manage potential drought conditions. Although all regions have indicated that no substantial operating impacts due to the drought are projected, NERC believes increasing drought conditions could give rise to localized challenge.

In California (WECC-CAMX Assessment Area), the planning reserve margin of 18.52 percent is above the NERC Reference Margin Level (15 percent) for the 2013 summer. However, reliability in southern California under extreme weather and adverse supply conditions remains a concern for NERC.

The 45-page report provides an independent assessment of the reliability of the bulk electricity supply and demand in North America for the period June 2013 through September 2013. The primary objective in providing this assessment is to identify areas of concern regarding the reliability of the North American bulk power system (“BPS”) and to make recommendations for remedial actions as needed.

Legislators Override Veto; Supporting Smart Grid in Illinois

Linda R. Evers — Fri, 24 May 2013 10:55:09 -0500

The quest to bring the smart grid to Illinois did not stop with the first veto override of the Energy Infrastructure Modernization Act in 2011. In many respects it fueled the clash between regulators, utilities and Governor Quinn. Enter Senate Bill 9 ending the debate. It is designed to:

(i) be a restatement and clarification of existing law,
(ii) give binding effect to specified legislative intent, and
(iii) supersede specified final orders of the Commission.

So there is no doubt as to who won the battle, Senate Bill 9 provides:

… that each participating utility shall be deemed to have been in full compliance with all requirements of certain provisions of this Act and all Commission orders entered pursuant to specified provisions. Provides that the Commission shall not undertake any investigation of such compliance and no penalty shall be assessed or adverse action taken against a participating utility for non-compliance with Commission orders associated with this Act.

In a statement released by Ameren Illinois, the company says after the original law was passed, Ameren Illinois launched its Modernization Action Plan (MAP) to create 450 jobs and invest an additional $640 million over a 10-year period to improve the reliability and performance of its electric delivery infrastructure. The plans included hiring hundreds of workers to install advanced meters, strengthen poles, replace cables and deploy new technology, such as intelligent switches and sensors that can detect and isolate outages for faster service restoration.

The job creation element of the bill received the support of the nearly 900,000-member Illinois AFL-CIO. Its president, Michael T. Carrigan, said, "Modernizing the electric grid will put Illinoisans back to work in good-paying jobs.”

ComEd also released a statement celebrating the veto override. No doubt, investors will be pleased.

Smart Grid Kentucky

Linda R. Evers — Fri, 17 May 2013 11:20:49 -0500

Last year, the Commonwealth of Kentucky released its final report of the Smart Grid Kentucky Roadmap Initiative. The report is a hefty 370 pages and provides an in-depth analysis of the current and future state of the smart grid in Kentucky. With so much focus on smart meters, it is always nice to point out there is more to the smart grid. The report begins by stating the characteristics of the smart grid:

Active Participation by Consumers
Accepts All Power Generation and Storage
Enables New Products and Services
Improved Power Quality
Efficient Operation and Use of Assets
Self-Healing
Defends Against Attack and Natural Disaster

Many surveys were done. The responding Kentucky electric utilities were given a listing and description of smart grid functionalities, each followed by a listing of technologies that enable such functions. The report summarizes their responses regarding the use of installed technology to achieve smart grid functionality. Here is a peek at the responses regarding enabling technologies for grid awareness:

SCADA: 10 deployed, 1 deploying
Breaker monitoring system: 6 deployed
Wide-area monitoring system: 4 deployed
Phasor measurement unit: 3 deployed
Geographic information system: 12 deployed
Digital event recording device: 7 deployed
Transmission line sag monitoring: 0 deployed

And for increased national and information security:

Techniques related to cybersecurity: 10 deployed
Techniques related to data privacy: 10 deployed

Utilities and regulators may find the included surveys and presentations helpful. Kentucky is poised to develop its smart grid future.

Florida Commission Gets Briefing on Smart Meters

Linda R. Evers — Fri, 10 May 2013 09:29:03 -0500

Recently Commission staff provided a Briefing on Smart Meters: Technical Information and Regulatory Issues to the Florida Public Service Commission. As previously reported, the FPSC held a public workshop last year to gather information and address concerns raised by customers. The Briefing summarizes the workshop. Although many of the typical issues are raised, I think utilities will find staff’s conclusions most interesting. For example, tucked on pages 2 and 4 are insightful conclusions I consider headline-worthy:

The FPSC has jurisdiction over cost recovery of smart meters, but does not have specific statutory authority over the smart meters themselves... RF emission standards are established by the Federal Communications Commission (FCC).

Briefing, page 2

The FPSC does not have regulatory authority over any potential health effects from smart meters; the FCC is the entity that has jurisdiction over the issue.

Briefing, page 4

Yes, the Briefing is an interesting read. Staff also wonders what will happen to the 25,000^[1] customers FPL estimates are on its hold list because of smart meter concerns. Right now the costs to read these customers’ analog meters are socialized among most ratepayers, which can reduce the overall savings that may be achieved by smart meters. Staff expressly states it believes all charges should be cost-based to ensure any subsidization is kept to a minimum.

Finally, staff suggests that the Commission continue to monitor the issues, but not take any specific action at this time.

^[1] This figure represents .5% of all of FPL’s smart meter installations. Briefing page 6.

DOE Study Shows Smart Grid Investments Good for the Economy

Linda R. Evers — Wed, 01 May 2013 13:23:44 -0500

DOE recently released a study that analyzes the economy-wide impact of the American Recovery and Reinvestment Act of 2009 (Recovery Act or ARRA) funding for Smart Grid project deployment administered by DOE's Office of Electricity Delivery and Energy Reliability (DOE OE). The investments analyzed cover expenditures from August 2009 to March 2012 and encompass nearly three billion dollars in publicly documented expenditures. The Smart Grid support from DOE included the Smart Grid Investment Grants (SGIG) and the Smart Grid Demonstration Program (SGDP). Key findings are positive:

ARRA funding and matching support from utilities and the private sector in the SGIG and SGDP programs generated a significant impact on the U.S. economy. As of March 2012, the total invested value of $2.96 billion to support Smart Grid projects generated at least $6.8 billion in total economic output.
Smart Grid deployment positively impacted employment and labor income throughout the economy. Overall, about 47,000 full time equivalent jobs were supported by investments. Among Smart Grid vendors – an ecosystem of manufacturers, information technology and technical services providers – about 12,000 direct jobs were supported, with the remaining jobs being in those companies’ respective supply chains and induced by the money spent throughout the broader economy.
Investment in core Smart Grid industries supports high-paying jobs. Industrial sectors that benefit directly include computer systems design, technical and scientific services and consulting, and electrical/wireless equipment and component manufacturing. Industrial sectors which experience indirect and induced benefits include real estate, wholesale trade, financial services, restaurants and health care. Smart Grid ARRA investments also supported employment in personal service sectors, such as health care, financial services, real estate and food/restaurants through indirect and induced impacts.
The Smart Grid Gross Domestic Product (GDP) multiplier is higher than many forms of government investment. For every $1 million of direct spending, which includes both government ARRA funds and private sector matching, the GDP increased by $2.5 to $2.6 million, depending on the scenario being evaluated, which compares favorably against other potential government investments in general spending or other types of infrastructure.

Additional details to support these findings are provided in the study.

FERC Issues NOPR on CIP Version 5 Standards

Linda R. Evers — Thu, 25 Apr 2013 09:46:53 -0500

FERC recently proposed to approve the Version 5 Critical Infrastructure Protection (CIP) Reliability Standards, CIP-002-5 through CIP-011-1, submitted by the North American Electric Reliability Corporation (NERC). FERC believes the proposed CIP Version 5 Standards, which pertain to the cybersecurity of the bulk electric system, represent an improvement over the current Commission-approved CIP Reliability Standards because they adopt new cybersecurity controls and extend the scope of the systems that are protected by the CIP Reliability Standards.

Despite the benefits, the Commission has concerns regarding the potential ambiguity and, ultimately, enforceability of the CIP Version 5 Standards. Specifically, 17 of the requirements of the suite of CIP Version 5 Standards include language that requires the responsible entity to implement the requirement in a manner to “identify, assess and correct” deficiencies. The issue is that this language may be unclear with respect to the compliance obligations it places on regulated entities making it too vague to audit and enforce compliance. The NOPR seeks comments on this and several other concerns. Moving at the speed of technology, some parts of CIP 4 may never become enforceable; it is expected some utilities may go from CIP 3 to CIP 5 for some standards.

Smart Grid Customer Awareness and Education in Illinois

Linda R. Evers — Wed, 17 Apr 2013 11:17:47 -0500

In the past, customer education typically meant nothing more than a bill insert and perhaps an additional public notice. Then came the smart grid and suddenly more is required… much more. Ameren Illinois conducted a quantitative study to measure its customers’ baseline awareness about AMI. Key findings revealed:

63% of customers have heard the term “smart grid.”
Among the 63% hearing the term:
- 40% don’t know much about what it means
- 34% have a favorable impression
- 29% are neutral
- 16% have an unfavorable impression
- 21% don’t know
45% of customers have heard the term “smart meter.”
Among the 45% hearing the term:
- 25% of those who have heard the term don’t know much about what it means
- 35% have a favorable impression
- 28% are neutral
- 23% have an unfavorable impression
- 14% don’t know
46% of all customers feel that smart meters would be “mostly an advantage,”
40% seeing the meters as “having no impact,” and
8% as “mostly a disadvantage.”

Customers indicated that improving reliability, bill accuracy and customer service and providing them with more control of home energy usage as the top smart meter benefits. The study will help guide the development of Ameren’s stakeholder and customer education plan. You can learn more about Ameren’s plan and ComEd’s plan by reading their Annual AMI Reports filed with the Illinois Commerce Commission on April 1, 2013. Ameren and ComEd also filed jobs creation reports as a result of the Energy Infrastructure Modernization Act.

ComEd Customers Sue to Get Smart Meters

Linda R. Evers — Fri, 12 Apr 2013 14:46:26 -0500

Not far from the City of Naperville, where smart meter opposition is in full force, customers in Chicago have filed a class action suit against ComEd due to smart meter delay! No, this is not a tardy April Fool's joke. Several ComEd customers allege the Company violated an Illinois Commerce Commission (ICC) order that called for smart meter installation to begin by fall 2012, yet ComEd unilaterally pushed back deployment until 2015.

To cover the Smart Grid upgrades, in 2011 ComEd filed for a formula rate increase of $1.915 billion with the ICC. When the ICC reduced that amount by $168 million, ComEd filed an Application for Rehearing (Docket No. 12-0298) to delay installation of smart meters due to financial constraints caused by the Formula Rate Order. ComEd's original smart meter plan included the installation of 500,000 new smart meters on Chicago's South and West sides by 2013. The suit says ComEd's decision to not install the smart meters while the Application for Rehearing was pending cost customers about $182 million in savings and other benefits they would have received had deployment occurred according to the original schedule. (Attention utilities: This figure was taken from ComEd's testimony regarding lost benefits due to delayed deployment.) In December of 2012, the ICC approved ComEd's revised schedule allowing smart meter deloyment to be delayed until 2015.

The suit is an interesting change of pace from those cases around the country and even in ComEd's own backyard (Naperville) where customers are rejecting smart meters and seeking to ban smart meter deployment. I guess ComEd customers were listening during the debate to get the Energy Infrastructure Modernization Act enacted.