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POWER-GRID.COM
____________
: JULY 2012
Contents
24 CIOs Talk IT,
Ops Mergers
30
Is Wireless DA Secure?
36
FCC Eyes
Smart Grid Fees
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Complete Distribution Automation
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_____________________
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20
Alaskan Villages get

Smart Grid With Smart
Grid as a Service
Mid-winter outages in Alaska mean villagers

cannot heat their homes, schools cannot
operate and planes cannot land. To fight such
barriers, four remote villages committed to cut
their energy costs and diesel dependence.
COVER PHOTO CAN STOCK PHOTO INC. / ROMKO
From the Editor 4

Notes 8
Merging the IT 24
and Operations Silos
Utility CIOsfour current and one formertell
how IT and operations work together. At many
utilities, OT and IT are conversing, and in some
cases, they are sitting at the same consoles and
blending their capabilities for smarter grids.
40 Utilitys Storm Response Creates
Winning Game Plan for Quick Response
After 29 tornadoes ripped across 691 miles in central Alabama,

more than 412,000 Alabama Power Co. customers lost power.
The utility was prepared with a storm response plan, and it all
came together for a quick restoration.
46 Ultrabroadband Wireless Helps

Mobile Workers Go Farther
From the early days of walkie-talkies to mobile computers and tablets,

wireless mobile devices have helped utility professionals work smarter,
faster and more efficiently for decades.
48 Value-added Investments for Smart Grid
Smart grids center on increasing the intelligence and sustainability

of the transmission and distribution infrastructure to improve
network reliability and efficiency. How do utilities get the most
improvements in the most cost-effective way?
52 AMI, OMS Extend System Value,
Improve Outage Management Efficiency
To create a truly smarter grid, the industry must consider broader

system integration for AMI to capitalize on the wealth of information
and advanced capabilities it provides.
30 Secure Wireless
Technology for Distribution

Automation Applications
A reliable communications network

constantly monitors the power grid
infrastructure and notifies utility operators
by pinpointing failures across the grid.
Breached communications systems can
leave operators without a real-time update
on their systems health.
Will the FCC Impose Fees 36

on Smart Grid Connections?
The Federal Communications Commission
is looking for new revenue sources to pay for
the federal Universal Service program. To the
commission, all those new smart grid connections
are looking very much like dollar signs.
PowerGrid International: ISSN 1547-6723,
is published 12 times per year (January,
February, March, April, May, June, July, August,
September, October, November and December)
by PennWell Corp., 1421 S. Sheridan Rd., Tulsa
OK 74112; phone 918.835.3161. Copyright
2012 by PennWell Corp. (Registered in U.S.
Patent Trademark Office). All rights reserved.
Authorization to photocopy items for internal
or personal use, or the internal or personal
use of specific clients, is granted by PowerGrid
International: ISSN 1085-2328, provided that
JULY 2012 VOLUME 17.07
54 Union Power Co-op GIS Dashboard

Means Real-time, Mobile Access
The Union Power Operations Dashboard provides real-time and

historical outage information, data from the AMI system, up-tothe-minute work order, type and location details and metertampering indications.
58 Wireless Communications Can Improve

Equipment Condition Monitoring
In the continuing struggle for cost savings and revenue opportunities,

many organizations have revamped their system maintenance
strategies and made intelligent decisions for these improvements.
61 Products
63 Calendar/Ad Index
64 Perspectives
the appropriate fee is paid directly to Copyright

Clearance Center, 222 Rosewood Dr., Danvers,
MA 01923 USA, 978.750.8400. Prior to photocopying items for educational classroom use,
please contact Copyright Clearance Center,
222 Rosewood Dr., Danvers, MA 01923 USA,
508.750.8400. Distributed to executives and
engineers in electric, water/wastewater and
gas utilities and pipeline companies around the
world. Periodicals Postage Paid at Tulsa, OK
and additional mailing offices. Subscription: $85
per year (U.S.), $94 (Canada/Mexico), $225
(international air mail). Back issues of PowerGrid

International may be purchased at a cost of
$13 each in the U.S. and $21 elsewhere. Copies
of back issues are also available on microfilm
and microfiche from University Microfilm, a Xerox
Co., 300 N. Zeeb Rd., Ann Arbor, MI 48103.
Available on the NEXIS Service, Mead Data
Central Inc., Box 933, Dayton, OH 45402; (937)
865-6800. Postmaster: Send address changes
and other circulation information to PowerGrid
International, P.O. Box 3264, Northbrook, IL
60065-3240. Return undeliverable Canadian
addresses to P.O. Box 122, Niagara Falls, ON L2E

6S4 PowerGrid International is a registered
trademark of PennWell Corp. We make portions of
our subscriber list available to carefully screened
companies that offer products and services that
may be important for your work. If you do not want
to receive those offers and/or information, please
let us know by contacting us at List Services,
PowerGrid International, P.O. Box 2280, Tulsa
OK 74101.
BPA International.
Printed in the
U.S.A. GST No.
126813153
Publications Mail
Agreement No.
40052420
Member American Business Press.
2 | July 2012
www.power-grid.com
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Call us at 866.796.9541 toll free or visit

www.freewave.com/electricpowerandsmartgrid.aspx
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FROM THE EDITOR

EDITOR IN CHIEF
TERESA HANSEN
Big Data, Big Problems

Few people in my social circles, including my
close friends and family, understand what I do for
a living. They know I edit and write for magazines,
and some know the magazines focus on electricity.
But few know the difference between electricity
generation and transmission and distributionand
even fewer care.
Thats probably why I was excited during vacation
when I met a friends neighbor. Through small talk, I
discovered shes in charge of data warehousing at a large
investor-owned utility. I told her about my job (and
Im disappointed she had never seen POWERGRID
International magazine). I explained the magazines focus
and that it covers most everything smart grid.
Her response surprised me.
We dont like smart grid.
I suspected its because data collected through smart
meters and other smart grid devices is filling up her data
warehouse. I was right.
She said theyIT folksdont know what the utility
wants them to do with all the data, and she doesnt see
much value in it. It has increased her workload and
makes her job more difficult.
She also said her utility worked with a local contractor
to create a smart home the public could tour to

learn about smart metering and the utilitys smart grid
program. Again, she doesnt see the value, so she hasnt
taken the tour, she said.
Ive heard many discussions about the need for utility
IT and operations personnel to work together as devices
are installed on the grid to collect more data. The
article Merging the IT and Operations Silos beginning
on Page 24 includes utility chief information officers
comments on this topic.
And on Page 64, Ron Chebra of DNV KEMA Energy
& Sustainability explores big data and asks what, when
and how the data will be used. Those questions need to
be answered where my friends neighbor works.
Her candid comments illustrate its time for utilities
to address the massive amounts of data beginning to
stream into their IT departments. In addition, utilities
must determine which information is important and
then inform and educate their IT personnel.
No one likes to be buried in work they dont
understand, especially when it seems less important
than their other duties. Maybe the operations personnel
at this womans utility should start the education process
by passing along a copy of POWERGRID International.
To the Editor
Very good article in the June 2012 Power Grid International magazine.
It is kind of funny how as a utility, we are always trying to stop
unwanted people from getting into our substations, but many times
we make it too easy for them. The picture on Page 14 of the magazine
illustrates my thoughts. Someone conveniently put a dumpster next to
the fence, making it easy for someone to climb over and get into the
substation. Also, there is a ladder in the picture for them to climb back
out. Maybe your next article for the magazine should be called How
Utilities are Shooting Themselves in the Foot.
Editors response: The dumpster

is for sure a security breach. The
ladder in the photo, however, could
belong to the crew working in the
substation. Were hoping they took it
with them when they left. And good
eye! That ladder is hard to spot.
Alan F. Schweighart, Manager of Operations and Engineering

Eastern Illini Electric Cooperative
4 | July 2012
www.power-grid.com
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DuPont
Viewpoint
and
Streamline
herbicides
Count on DuPont
to help keep your customers out of the dark

DuPont Viewpoint and Streamline herbicides can help keep the lights on by limiting service
interruptions caused by unchecked brush. Measured in ounces instead of pounds, these products
can increase worker productivity and control hard-to-manage species. Viewpoint offers the
broadest spectrum of brush control in a single product. Streamline manages tough brush while
promoting grass understory. Contact your local DuPont representative for more information.
countondupont.com/viewpoint
countondupont.com/streamline

DuPont Streamline and Viewpoint are not available in all states.
See your DuPont sales representative for details and availability in your state.
Always read and follow all label directions and precautions for use.
The DuPont Oval Logo, DuPont , The miracles of science , Streamline and Viewpoint
are trademarks or registered trademarks of DuPont or its affiliates.
Copyright 2011-2012 E.I. du Pont de Nemours and Company. All Rights Reserved. LANDM024673P514AVA
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knowledge to shape your future
itron.com/smartestgrids
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NOTES
IEE: HOUSEHOLD SMART METERS ON RISE

Electric utilities are making
progress in upgrading their customers analog electric meters
with digital smart meters, according to an Institute for Electric
Efficiency (IEE) report.
As of May, IEE found that almost
1 in 3 households have a smart
meter. This is up from about 1 in 4
households in September 2011. IEE
projects that by mid-decade, more
than half of U.S. households will
have a smart meter.
Our results show that electric
utilities are committed to upgrading
their customers meters as part of
the industrys overall goal to modernize the nations electric grid, said
Lisa Wood, IEE executive director.
By the end of this year, we predict
that 22 electric utilities in 16 states
will have smart meters installed
systemwide. The new smart meters
are already benefitting customers.
Southern Co. Services CEO
Susan Story said that smart meters
notify the utility when customers
are without power.
Receiving this information in
real time allows us to expedite our
power restoration efforts and get the
power back on sooner, Story said.

In addition to power notification and outage management benefits, smart meters open the door
to other customer benefits. For
instance, smart meters and smart
rate plans are helping Oklahomas
OG&E Electric Services manage
peak demand and defer the need
to build an additional power plant
this decade.
Smart meters have changed
the way OG&E interacts with
customers and how customers
view and use electricity, said Peter
Delaney, OG&E CEO.
Last year, over 90 percent of
our customers on SmartHours, a
peak-sensitive time-of-use plan,
saved money, he said. Plans like
SmartHours help us better manage peak demand and can defer
the need for a new power plant
this decade.
Utilities also use smart meter
data to help customers conserve
electricity, set spending and usage
goals and receive notifications when
usage is high, Wood said.
In parts of California and in
Texas, for example, homeowners
can go online to see how much

electricity their home used in
the previous day, she said. This
awareness prompts consumers to
take steps to conserve.
Utilities such as NV Energy have
built easy-to-use tools powered by
smart meter data to help customers
set usage or dollar-amount thresholds and notifications for when
their accounts exceed the thresholds. These tools empower customers to understand their electricity usage and lower their bills.
Helping customers use the data
that smart meters record and
transmit is one objective of the
White House Green Button initiative, Wood said.
This is a voluntary industry
effort to create a standard format for energy-consumption data
recorded by smart meters, she
said. As of May, 21 utilities and
electricity suppliers have committed to bringing the Green Button
to 30 million customers. Today,
about 10 million customers have
access to their energy-consumption data in the Green Button
format.
EPRI REPORT: CYBERSECURITY STRATEGY

An Electric Power Research
Institute (EPRI) report includes
practical tips for utilities as they
develop and implement cybersecurity strategies for grid modernization.
Cyber
Security
Strategy
Guidance for the Electric Sector
is a technical update that provides guidance to utilities that are
developing overall cybersecurity

strategies, developing risk-management processesincluding risk
assessmentand selecting and tailoring cybersecurity requirements
for the electric sector.
Smart grid technologies are
introducing millions of intelligent
components to the electric grid
that are advancing communication:
two-way communication, dynamic

optimization and wired and wireless communications.
Cybersecurity is important
because the bidirectional flow of
two-way communications and the
control capabilities in the smart
grid will enable new functionalities
and applications. Visit http://epri.
com
___ for the report.
8 | July 2012
www.power-grid.com
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2012 Lockheed Martin Corporation
LOST IN THE COMPLEXITIES OF ENERGY MANAGEMENT AND
LOOKING FOR A WAY OUT?

Whether the question is implementing the latest smart grid technology, conserving energy or protecting your networks, one
thing is certain. Energy management is complex. Lockheed Martin can help. Not only do we have experience working with
utility, commercial, and government customers on energy efciency, security, and information technology. We thrive on it.
Lockheed Martin. Solving todays and tomorrows complex problems with the right mix of systems integration and engineering.
www.lockheedmartin.com/energysolutions
_____________________________
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NOTES
CAPGEMINI: DECIDING FACTOR FOR EXECS IS BIG DATA

Capgeminis global study shows 9
in 10 business leaders believe data is
the fourth factor of productionas
fundamental to business as land,
labor and capital.
The report was conducted by the
Economist Intelligence Unit among
600 senior business and information
technology executives worldwide.
Big data tops the list. Some
two-thirds of respondents in
North America believe big data
will be a significant issue in the
next five years; 58 percent plan
to invest more in big data in the
next three years.
Big datas next battle:
unstructured data. Nearly 4
in 10 respondents in North
America39 percentsaid
unstructured data is too difficult to interpret. Many employees are familiar with spreadsheets and relational databases,
but they struggle with tools
to interpret unstructured data
such as text analytics and sentiment analytics.
Stop silos from seizing data.
To be data-driven, organizations must release their data

from departmental and process
silos to enable, for example, the
integration of sales data with
customer relationship management data of existing customers
to create a more holistic picture. According to 51 percent
of North American respondents, the barrier of organizational silos is the second biggest challenge to data-driven
decision-making.
Some two-thirds of 168 North
American executives surveyed
believe big data will be a significant issue in the next five years
and one that must be addressed so
the organization can make informed
decisions. They consider their companies as data-driven, reporting that
data collection and analysis underpins the business strategy and daily
decision-making.
Fifty-five percent already make
management decisions based
on hard analytic information.
In addition, 44 percent said the

increasing volume of data collected
by their organizations from internal
and external sources has slowed
decision-making, but 84 percent
said the larger issue is being able to
analyze and act on it in real time.
The exploitation of big data is
fueling a major change in the quality
of business decision-making, requiring organizations to adopt new and
more effective methods to obtain the
most meaningful results from their
data that generate value, said Scott
Schlesinger, vice president and head
of business information management at Capgemini. Organizations
that do so will be able to monitor customer behaviors and
market conditions with
greater certainty and
react with speed and
effectiveness to differentiate from their
competition.
EPRI TESTS UTILITY DIRECT FAST CHARGER
The Electric Power Research

Institute (EPRI) demonstrated the
first prototype 2.4-kV 45-kVAbased, solid-state, direct current
(DC) fast-charging technology for
electric vehicles (EVs) in February
at its Knoxville, Tenn., laboratory.
The demonstration was conducted using a Nissan Leaf and
Mitsubishi i-MiEV.
EPRI
demonstrated
the
communication capability of the

fast-charging technology with EV
battery-management systems.
The demonstration verified the
communications compatibility of
the fast-charging technology with
the EVs battery-management systems using the industry-standard
CHAdeMO communications protocol.
EPRIs next step will be to build
CAN STOCK PHOTO INC. / GIBSONFF
a fast charger prototype with 8-kV

input, which would represent compatibility with a 15-kV class distribution system.
This second prototype will
demonstrate the viability of EPRIs
Utility Direct Fast Charger design
for 15-kV class systems that use a
medium-voltage level such as 12.47
kV, 13.8 kV, etc.
10 | July 2012
www.power-grid.com
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NOTES
G&W EXPANDS HEADQUARTERS, MANUFACTURING

G&W Electric Co., a supplier
of power automation systems,
switchgear and cable accessories, recently dedicated its
Bolingbrook, Ill., global headquarters and manufacturing plant
during a ribbon cutting.
This facility marks the start of
a new era for G&W, providing the
room we need for our continued
growth and a safe and comfortable

working environment for our 400plus Illinois-based employees, said
John H. Mueller, G&W chairman.
A longtime native to the Chicago
area, the family-owned, 107-yearold company moved from Blue
Island, Ill., where it resided more
than 50 years.
The new facility is more than
double the size of our previous

Blue Island manufacturing operation and gives us the room we need
to support our growing customer
base, continue our R&D efforts,
improve order lead times and maximize product quality, Mueller said.
The new address is 305 W.
Crossroads Parkway, Bolingbrook,
IL 60440.
PLMA REPORT: STRONG DR GROWTH POTENTIAL IN C&I

A new research report indicates strong growth potential for
demand response (DR), especially
in the commercial sector, which
was selected by more than 50 percent as the sector with the highest
growth potential.
The Peak Load Management
Alliance (PLMA) released the
results.
The research was conducted by
Skipping Stone with the industry
professionals attending the PLMA/
Con Edison spring conference in
New York City.
A majority believe that to compel
that growth, utility incentives or
finance programs will be required to
overcome the implementation cost
barrier, which ranked as the highest
impediment to customer adoption.
Technology advances were cited as
the second-highest requirement to

achieving customer adoption. The
industry professionals surveyed
also believe a significant percentage of existing manual DR customers will migrate to automated
DR. Respondents overwhelmingly
indicated they believe the North
American Electric Reliability
Corp.s initiative to track DR will
result in market acceptance of DR
as a reliability asset.
The survey results confirm that
demand response markets have a
lot of room for growth as the market matures, said Elliot Boardman,
PLMA executive director. Results
further validate that market changes, such as the migration from manual to auto and the use of demand
response as a reliability asset, are
expected to have a positive impact
on the marketplace.
Ross Malme, PLMA board member and Skipping Stone partner,
said the survey shows a call to
action by utilities, regulators and
finance companies to develop
economic incentives or finance
programs for the commercial and
industrial (C&I) sector.
Customers are willing and the
grid needs demand response to
work, Malme said. Technology
costs have come down dramatically, and now its time for regulators to support utility incentive
programs and for savvy finance
companies to step in to capture
this growth opportunity.
The report is available for free
download at http://peaklma.com.
Click on the link to PLMA Spring
2012 Survey Report.
14 | July 2012
www.power-grid.com
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OPOWER: YAHOO USERS SPEND MORE

ON ELECTRICITY THAN GMAIL USERS
Yahoo Mail users will spend $110
more on electricity this year compared with Gmail users, according
to Opower.
Using its behavioral science and
patent-pending data analytics, the
global energy information software
company found that on average,
Yahoo Mail users consume 939 kilowatt-hours (kWh) more than Gmail
usersabout 11 percent more electricity per year.
By analyzing consumer energy
information with more than 70
utilities, including eight of the largest in the U.S., and containing data
from 40 million homes, Opower
looked at the correlation between
email address and electricity usage
across 2.8 million U.S. households.
Some 1.15 million of those households are Gmail or Yahoo users
spread across 23 states and several
distinct climate zones.
Gmail users consume less energy
than those with Yahoo Mail because
of the users, according to Opower.
Its data indicates Yahoo Mail
households are more likely
to live in larger residences
and use more electricity
per square foot. Gmail
users tend to live in cities where

dwellings are often more compact
and energy-efficient. Opower found
Gmail users are more likely to sign
up for an in-depth analysis of their
home energy usage.
Yahoo Mail users cannot switch
email accounts to reduce their energy consumption, but they can adopt
simple ways to cut back: turning
off computers at night, getting programmable thermostats or upgrading heating systems.
Making energy consumption relevant to consumers is something
that Opower strives to do every day,
said Alex Laskey, Opower president.
We hope that by analyzing the data
that we have on over 40 million
homes and providing insights about
how Americans are using electricity,
we can make the topic interesting
and inspire people to make changes
in the way they consume energy.
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CAN STOCK PHOTO INC. / PRAWNY
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NOTES
SEE ACTION REPORT:

ESTIMATE ENERGY SAVINGS FROM RESIDENTIAL
BEHAVIOR-BASED EE PROGRAMS
A new report by the State and
Local Energy Efficiency Action
Network (SEE Action) prepared
by Lawrence Berkeley National
Laboratory researchers provides
guidance and recommendations
on ways to rigorously estimate
energy savings from residential
behavior-based efficiency programs.
The report was designed for
regulators, evaluation professionals, program administrators and
other energy efficiency program
stakeholders.
Residential behavior-based
energy efficiency programs are
a major potential source of new
energy savings and increasingly
are being implemented by energy
efficiency administrators nationwide to help meet energy-saving
targets and requirements in many
states.
These programs use strategies intended to affect consumer
energy-use behaviors to achieve
energy and peak-demand savings.
They typically use one or more
elements to achieve their goals,
including customer outreach,
energy-usage feedback, competition, rewards, benchmarking
or feedback elements. Such programs might focus on changes
to consumers habitual, one-time
and purchasing behaviors.
The widespread adoption
of these programs faces obstacles, including questions about
whether observed energy savings are valid and attributable to

the behavior program, whether
the savings persist and whether
results for one program can be
applied to other programs.
We need rigorous, objective
evaluation methods for these
programs, said Malcolm Woolf,
director of the Maryland Energy
Administration and a
leader of SEE
Action for issues related to evaluation, measurement and verification (EM+V). Strong standards
ensure that program administrators, policymakers and regulators
can be confident that the savings
estimates claimed by these programs are valid.
CAN STOCK PHOTO INC. / THOMASPAJOT
16 | July 2012
www.power-grid.com
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EYE ON THE WORLD

PowerMatching City honored as top 100 sustainable solution
A live smart grid project with 25 households in the
northern part of the Netherlands shows a smart grid can be
created with a corresponding market model using existing
technologies.
PowerMatching City lets consumers exchange electricity freely without diminished comfort. The 25 homes in
Hoogkerk were connected with one another as part of the
trial and equipped with micro combined heat and power
systems (high-efficiency boilers), hybrid heat pumps, smart
meters, photovoltaic panels, charging stations for electric
vehicles and other smart household appliances to form a
smart energy system.
With the share of renewable energy going up strongly
over the next decades, the rising demand for electricity
and consumers who are increasingly providing in their
own energy supply, it is evident that smart grids will have

an essential position in our future energy system, said Frits
Bliek, PowerMatching City program coordinator.
Following the successful results, the project has been
continued and expanded. This follow-up phase focuses
more on the effects of expanding to some 70 households,
consumer involvement via an interactive interface and the
effect of introducing real-life customer propositions developed by energy company Essent.
The PowerMatching City program is conducted by distribution system operator Enexis, Essent, gas infrastructure
company Gasunie, system integrator ICT Automatisering
and knowledge institute TNO, led by energy consulting, testing and certification firm DNV KEMA Energy &
CONTINUED ON PAGE 18
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NOTES
EYE ON THE WORLD : CONTINUED

CONTINUED FROM PAGE 17
CAN STOCK PHOTO INC. /AFHUNTA
Sustainability. Knowledge partners are Delft University

of Technology, Eindhoven University of Technology and
Hanze University of Applied Sciences Groningen.
PowerMatching City recently was chosen for the
Sustainia100, a list of solutions launched at Rio+20, the
U.N. Conference on Sustainable Development in Rio de
Janeiro. Gathered from 56 countries across six continents,
Sustainia100 is a guide for sustainability professionals
from politicians to CEOs dedicated to create desirable,
sustainable societies. Individually, the solutions represent
World leaders in sustainability launch Sustainia100 in Rio de Janeiro.

Pictured are, from left: EU Commissioner for Climate Action Connie
Hedegaard; Gro Harlem Brundtland, former Norway prime minister and member of the U.N. Secretary-Generals High-Level
Panel on Global Sustainability; and Rajendra Pachauri, chair of the
Intergovernmental Panel on Climate Change (IPCC).
sustainable innovation in areas such as city planning,

energy, fashion, water and waste management, high-tech
and transportation. Collectively, they provide a guide of the
building blocks available for transforming societies.
PowerMatching City plays a pioneering role in the
development of smart grids and in the transition towards
a sustainable energy system, Bliek said. We are therefore
very proud that our project has been selected for this prestigious list of sustainable solutions. It is a strong recognition
for all the work the partners have together realized.
Sustainia100 is a cornerstone in Sustainia, a sustainablefuture concept developed by Scandinavian think tank
Monday Morning with world-leading companies, organizations and experts (Microsoft Corp., General Electric Co.,
DNV, Philips Lighting, DONG Energy, Novo Nordisk, Tetra
Pak, Cisco Systems Inc., Interface Flor, BIG Architects, Knoll,
Ikea, Vestas, Velux, Realdania, Scandinavian Airlines SAS,
Ramboll, UBS Investment Bank), the U.N. Global Compact
and former California Gov. Arnold Schwarzeneggers initiative R20 Regions of Climate Action.
Sustainia100 solutions are nominees for the Sustainia
Award, which honors outstanding performance within
sustainability. The winner will be announced at a ceremony
later this year in Copenhagen.
Siemens acquiring smart grid company in Brazil

As part of a $1 billion investment during the next
five years in Brazil, Siemens is expanding its capabilities
in the smart grid market with the acquisition of an
unnamed smart grid company.
This follows the May opening of Siemens first
research and development center focused on
developing smart grid solutions in Curitiba in the
southern state of Paran.
Part of the $1 billion investment will focus on future
energy markets. In addition to the smart grid market
investments, this will include an initial $60 million

investment in a new factory in Brazil to produce
high- and low-voltage motors and generators for
the domestic market and export. A new R&D center
geared toward the oil and gas industry also will open
in Rio de Janeiro.
Other investment areas include the industry,
infrastructure and cities and health care sectors, with a
special focus on localizing production and services and
driving R&D.
Opower, First Utility unveil energy program

Opower and First Utility, the largest independent
domestic energy provider in the U.K., recently unveiled
the My Energy program that will put information about
energy use and efficiency tips into the hands of U.K.
customers for the first time.
Opower programs similar to My Energy have helped
consumers save more than $120 million across 10 million households.
First Utility customers will start receiving information

detailing how their usage compares with their neighbors usage and personalized tips to reduce energy
consumption.
During coming months, further functionality will
be added, including alerts that let customers receive
emails and text messages warning when their energy
usage is higher than normal.
18 | July 2012
www.power-grid.com
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Wind turbines dance

in Kongiganak, Alaska,
population 439.
Alaskan Villages get Smart Grid

With Smart
Grid as a Service
BY DAVID SMITH, SAIC, AND DENNIS MEINERS, INTELLIGENT ENERGY SYSTEMS
The Alaska wind howls like wolves, and temperatures tumble to minus
40. Here, where power equals survival, nearly 200 far-flung villages have
zero backup generation.
ommunities speckled across the state depend on localized diesel
power plants and small microgrids for electricity. Fuel supply, however, is a constant worry; fuel barges navigate the melted summer sea only
four months before chilly waters revert to impassable miles of ice. Midwinter outages mean villagers cannot heat their homes, schools cannot
operate and planes cannot land.
To fight such barriers, four tribal villages committed to cut their energy
costs and diesel dependence. They got a smarter grid.
In 2005, leaders from the southwestern Alaska villages Kipnuk (population 639), Kongiganak (population 439), Kwigillingok (population 321)
and Tuntutuliak (population 408) formed Chaninik Wind Group with local
utility managers and energy consultants.
The group formed to combine their collective resources to obtain funding and build community-scale wind projects. Its goals were to use wind
power to reduce fossil fuel consumption by 40 percent by 2015. The concept was to use wind not only to displace fuel used for power generation,
but also to develop a method using wind to heat homes.
With state and federal assistance and support from Intelligent Energy
Systems (IES), an Anchorage wind diesel technology firm, three of the
four villages each installed 450 kW

of wind capacity (five Windmatic
S-17 wind turbines each) and
20-30 electric thermal storage
devices in homes. The ETS devices
allow excess wind energy to be
stored to heat homes. Even with the
wind turbines, the villages needed
a simple, affordable way to monitor energy generation, consumption
trends and overall data.
SMART GRID AS A SERVICE
While IES and the Chaninik
Wind Group worked to bring wind
power to the region, SAIC developed Smart Grid as a Service (SGS)
to provide a one-stop, low-risk solution for utilities, especially municipalities and co-ops that wanted to
move to the smarter grid but had
limited staff and money.
20 | July 2012
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The SAIC team built SGS from the ground up as a

multitenant, private cloud solution. The company provides everything from initial planning and education,
design and build of the program and finally operation.
It also procures and installs the meters, hosts the key
applications and integrates to the utility billing system.
The utility pays for the service through a payment plan,
usually within five or seven years. To offset the initial
capital costs, SAIC uses a per meter/per month pricing
structure, which makes SGS economically feasible for
utilities with fewer than 100,000 meters. (Figure 1
outlines SGS components.)
The four villages were committed to decreasing
costs and moving away from diesel. SGS seemed like
a good fit to move the wind energy program toward
the smarter grid. The first smart meters were installed

in November 2011, and the program was online and
operational by Dec. 12. The villages installed a communications system that integrated the legacy distribution
system with the wind turbine system. The integrated
hardware and software solution provides advanced
metering infrastructure, outage alerts, remote connection capabilities and the foundation to integrate fuel,
water, temperature and alternative energy metering.
IMMEDIATE RESULTS
Temperatures hit minus 30 and winds raced at 30
mph by the end of the first billing cycle after the smart
meters were installed. To a manual meter reader, the
conditions would have felt more like minus 67 with
PROJECT MANAGEMENT OVERSIGHT
Business Process
and Organization
Change
Project Plan
Implementation
Operational
Transition
Cybersecurity
Assessment
SAIC Cloud
Firewall
SAIC SGS
Portals
ESRI GIS
Outage
Analysis
MDMS
SAIC Cybersecurity Assurance
AMI Head
End
Integration Layer
WAN
Fiber and
or Cellular
CIS
Billing
Utility
Website
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Water Meter
Utility Service Area
July 2012 | 21
www.power-grid.com
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the wind chill. The Chaninik Wind Group saw benefits almost immediately. The SGS system allowed for
automatic collection of the data for the end-of-month
billing report.
The villages also used meter data to support critical
energy-management decisions.
Kipnuk, for example, had been having problems
with its aging generator, but it didnt have the statistics
and background information to properly size and plan
for upgrades. Now, the village gets daily reports of outages and voltage issues and can use concrete data to
justify application to the state for modern wind and
diesel generation equipment.
In Tuntutuliak, voltage monitoring identified two
aging transformers that will be replaced this summer.
And in Kwigillingok, utility management can monitor accounts more closely and help customers manage
their usage to reduce service disruptions.
Gold buttons
Disconnect
Connect
represent
the
functions in the
Gold buttons represent the remote
SGS utility portal.
connect and disconnect functions in the
Smart Grid as a Service utility portal.
Kwig Power Co.
Manager William Igurak and utility clerk Inez John
were excited to use remote connect and disconnect as
quickly as possible.
Thank you for the gold buttons, Igurak said.
NEXT
The villages realized several benefits during the
initial months of the program, but several improvements remain to reduce energy costs and diesel reliance
further.
IES has been focusing on optimizing the 15 wind
turbines, which will be in full production this summer.
Right now residents pay 60 cents per kilowatt-hour for
diesel-generated power.
In the future, cheap wind power and electric thermal
stoves will offset the $7-per-gallon heating fuel in the
villages. Windy days are often frigid days, so the forces
of nature will be harnessed to heat homes. Residents
no longer will spend half their family income on energy
because SGS enables the utilities to meter wind and
diesel power and charge for each appropriately.
The village utilities also will

receive SAICs new Outage
Analysis Module (OAM), which
runs on Esri, a geographic information system (GIS) company.
The two are working together
to provide greater capabilities
to utilities of every size. The
OAM is now a standard SGS
feature. It provides a map view
David Smith inspects a meter at the
of every smart meter a utility has U.S. Post Office in Tuntutuliak, Alaska,
population 408.
deployed, alerts the utility of the
location and size of outages and
measures the duration to eliminate guesswork and reliance on
consumers for outage notifications. Outage analysis and a GIS
have been beyond the reach of
many small utilities, but cloudbased technologies such as SGS
leverage the costs of these applications across multiple utilities,
Kwig Power Co. utility clerk Inez John and
making the applications afford- Manager William Igurak are excited to
use the remote connect and disconnect
able for utilities of all sizes.
function.
Next year SAIC will integrate
prepay functionality into the SGS suite. Prepay will
provide customers with another method to manage
their electricity expenses, and the utilities can improve
cash flow.
The smart grid infrastructure in these four Alaska
villages will provide a complete community energymanagement infrastructure to reduce energy costs and
dependence on expensive diesel fuel that devastates
local village economies. Improving reliability, however,
is the most important outcome. Winters turn harsh
and deadly in Alaska. A more reliable infrastructure can
save lives.
David Smith is SAICs smart grid business process champion. Smith, a
certified public accountant, has spent 25 years improving processes in the
energy industry.
Dennis Meiners is president of IES, which provides community wind
systems. Meiners has been involved in improving the efficiency and reliability
of rural power systems for 19 years.
22 | July 2012
www.power-grid.com
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CALL FOR ENTRIES

Nominate your project today.
Dont miss your opportunity to participate in the 2013 Projects of the Year Awards
sponsored by POWERGRID International magazine.
Awards will be given in the following categories:
Smart Grid Project of the Year
Demand Response/Energy Efficiency Project of the Year
Smart Metering Project of the Year
Renewable Grid Integration Project of the Year
Winners will be recognized in a 2013 issue of POWERGRID International magazine. A representative from
the winning utility must be present to accept the award on stage the morning of Jan. 29, 2013, during the
DistribuTECH 2013 opening keynote. DistribuTECH 2013 is Jan. 29-31 in San Diego.
Deadline for nominations is Oct. 17, 2012.

Full rules and nomination form available at www.power-grid.com
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CAN STOCK PHOTO INC. / ROLFFIMAGES
BY BART THIELBAR, FIVE POINT PARTNERS LLC,

AND WARREN CAUSEY, WARREN B. CAUSEY LTD.
IT
Merging the
and Operations Silos
T
here was a day when oil and water didnt mix, lambs did not lie down
with lions, east and west did not converse and at utilities, those in
operations technology (OT) didnt trek with those in information technology
(IT) or vice versa.
Although such dichotomies are found in many areas of human experience,
poet Rudyard Kipling perhaps expressed it best for all time in The Ballad of
East and West having written Never the twain shall meet.
Guess what? In all these areas, the twain are meeting. Water is a major
resource in the extracting of oil and gas from shale formations, there
have been some interesting domestications of all kinds of wild animals,
East and West (the U.S. and Europe and the Far East) are inextricably
entwined in financial and trade arrangements. And at many utilities, OT
and IT are conversing, and in some cases they are sitting at the same
consoles and blending their capabilities to enable smarter grids and deal
together with other utility challenges.
The breaking down of the operations and IT silos at utilities has been
a multiyeareven multidecade
process, and it is not yet complete,
nor might it ever be complete. Some
utility chief information officers
(CIOs), including Jim Kensok at
Avista Utilities, dont believe that
would be entirely appropriate.
We certainly have our challenges
like anybody does, but it wouldnt
matter whether were in the utility
industry or not; those silos are going
to exist, Kensok said. When I was
in high-tech companies, they were
the same. But the IT and OT silos, I
would say, will never completely disappear, but our walls are down low
24 | July 2012
www.power-grid.com
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Andres Carvallo, Proximetry
A.R. Mullinax, Duke Energy Corp.
Jim Kensok, Avista Utilities
relationships with the operations side

of the house, and so were able to
achieve our goals.
A.R. Mullinax, Duke Energy Corp.
CIO, said that some of his staff sit at
the same consoles in the operations
center with their OT counterparts to
enable better collaboration between
the two sides. That might be a relative
exception to the rule, but there seems
to be increasing collaboration between
Mike Harris, Clark Public Utilities
Wanyonyi Kendrick, JEA
the two groups.
There are several reasons why silos,
enough now that youre stepping over them and and not especially those between OT and IT, have existed at utilirunning through them. I think theyre appropriate-level ties for many years. These include:
silos, personally. To take
them completely down
would be a mistake.
JEA CIO Wanyonyi
Kendrick has a similar
outlook.
No, and Im not sure
that I want to, Kendrick
said. I am the senior
manager responsible for
critical cybersecurity and
thats also responsible
for signing off on NERC
OT antedates IT by some 80 years. OT has been
CIP. Ive seen just that regulatory process really break
around since Thomas Edison and has kept the lights
down many of the barriers because were all working
on more than 100 years. There is a certain amount
towards the same goal; however, operations owns our
of gravitas that comes with that history.
SCADA system, and they will continue to own it, and
as of right now, thats fine with me. I have great working
OT is directed primarily by electrical engineers; IT is
Our walls are down low enough

now that youre stepping over them
and not running through them. I
think theyre appropriate-level silos,
personally. To take them completely
down would be a mistake.
Avista Utilities CIO Jim Kensok
26 | July 2012
www.power-grid.com
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the province of computer engineers. That division of

knowledge and authority is ingrained during college
and continues on into the work world.
IT began as data processing and tended to work in
the basement with such mundane tasks as getting
bills out and accounting for money. CIOs as strategic leaders didnt really emerge until the latter part
of the 20th century, which isnt that long ago. The
head of data processing didnt really equate with
chief engineers.
For most of their history, chief engineers went on
to become CEOs of investor-owned utilities and
general managers of publicly owned ones. The
deregulation movement of the late 1990s first compelled many boards of directors to begin to bring
in business and financial expertise at the top, thus
gradually easing engineers out of the top seat in
many places.
This integration cannot occur without breaking down

some of the traditional silos at utilities. Challenges OT
and IT face together include:
Cybersecurity. As the physical grid becomes more
closely integrated with the cyber one to enable
advanced metering, automated reclosers, phasor
measurement units and remotely controlled devices,
as well as artificial intelligence devices, protection of
these systems becomes ever more critical. Large utilities report tens of thousands of hacking attempts
each month, most of them harmless, some of them
attempted penetrations by hostile foreign powers.
Using IT to keep the grid stable as variable resources are added. When the wind dies or clouds cover
the sun, adjustments must be made quicklyeven
bringing up entire power plants. These adjustments must be made quickly with little margin for
error, sometimes well beyond the capabilities of
human engineers throwing manual switches.
Major software systems such as ERP, GIS,
mobile data, meter
data management and
others play on both
sides of the traditional OT-IT silo divide.
Ownership and operation of such systems
increasingly is becoming a shared responsibility
between OT and IT.
To say that the silos have entirely broken down would
be incorrect. There still are separations of authority and
even, at some utilities, a continuing lack of daily interaction. There is ample anecdotal evidence of this. Even at
those where the silos still exist, however, there are efforts
to break them down, as Mike Harris, CIO at Clark Public
Utilities in Vancouver, Wash., pointed out.
We have a traditional division of responsibilities
between those responsible for operation of our grid and
our IT organization, Harris said. As digital technology begins to permeate operations management, we
find an increasing role in supporting the network and
The breaking down of the

operations and IT silos at
utilities has been a multiyear
even multidecadeprocess,
and it is not yet complete, nor
might it ever be complete.
With those evolutionary changes gradually elevating IT organizations and their chiefs in corporate
hierarchy, IT began to gain a seat in more meetings.
Then along came the smart grid concept, which
consists of the physical grids being overlaid with a
communications and IT grid.
As Andreas Carvallo, former CIO at Austin Energy,
put it in his book The Advanced Smart Grid, One of
the basic concepts of the smart grid is the integration of
information and communications technologies (ICT)
into the power system to make it more cost effective, efficient, reliable, and cleaner and provide customers with
actionable information about their energy use so they can
control their costs.
28 | July 2012
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Major software systems

such as ERP, GIS, mobile
data, meter data
management and others
play on both sides of the
traditional OT-IT silo divide.
communications infrastructure. While the IT structure is well-entrenched, the operations IT systems
are more centered on monitoring and managing our
grid. Our role is evolving into providing the technical network expertise and the basic computing tools
to provide the support so that our operations group
can more efficiently do their job and deliver great
service to our customers.
Our modern society has brought about many

things that some of us might not have anticipated
20 or 30 years ago.
The gradual growing together of OT with IT at
utilities is one of them.
Its hard to say how Kipling might have felt
about the twain actually not only meeting, but
beginning to learn to work together.
Editors note
This article first appeared in the January/February issue of Electric
Light & Power magazine.
Authors
Bart Thielbar is vice president at Five Point Partners LLC. , a utility consulting
firm headquartered in Atlanta. Reach him at bart.thielbar@fivepoint.net.
Warren Causey is president and CEO at Warren B. Causey Ltd. When this
article was written, he was vice president of strategy, research and advisory
services at Five Point Partners LLC. Reach him at wbcausey@wbcausey.com.
____________________
July 2012 | 29
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BY CURT GOLDMAN, FREEWAVE TECHNOLOGIES
Secure Wireless Technology for

Distribution Automation Applications
A reliable communications network constantly monitors the power grid
infrastructure and notifies utility operators by pinpointing failures across the
grid. Breached communications systems can leave operators without a realtime update on their systems health.
ireless technology is accepted as an optimal communication solution
for applications in many industrial settings. As utility operators and
decision-makers look for ways to improve the power grid, its becoming clear
that a secure communication network is critical in ensuring efficient, effective
power delivery. Each layer of the gridgeneration, transmission, distribution
and consumptionhas varying requirements for monitoring and control. In
many cases, wireless solutions are the glue that holds the smart grid together.
There is a challenge, however, because although the use of wireless technology has increased, the electric power industry traditionally has relied
upon wired technologies for communication. Some utility operators still
question the security capabilities of wireless because they are unfamiliar
with the options. There are wireless communication solutions that offer
security features trusted for critical government and defense operations.
For more than a decade, these technologies have offered the same level of
secure data transmission as a wired

solution, if not more. As more utility decision-makers learn about this
type of wireless technology and see
it in action, they are adopting it as
a viable solution. Wireless providers consistently are developing new
control and monitoring technologies
for distribution automation applications. These applications include
advanced metering infrastructure
(AMI) backhaul, distribution management systems, substation automation, demand response, supervisory control and data acquisition
(SCADA), load management, Volt/
VAR optimization and energymanagement systems.
30 | July 2012
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In here, meters keep in touch,

so your crews dont have to.
In the network of possibilities, meters report usage in
real time. The power grid monitors itself to identify
problems before they become outages. And utilities
put resources where theyre needed most. As the
only communications provider offering complete
smart grid solutions, AT&T is a partner you can
rely on to manage your data, so you can focus on
managing your power grid.
Discover what AT&T Smart Grid Solutions can do for you at
att.com/smartergrid
2012 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein are trademarks of
AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are the property of their respective owners.
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KEY WIRELESS APPLICATIONS

FOR DISTRIBUTION AUTOMATION
Many critical functions and actions are automated
at the distribution automation layerthe monitoring
of critical feeders, fault detection, isolation and restorationto reduce the duration and impact of outages,
supporting the shifting of loads between sources to help
avoid or alleviate overload conditions, controlling capacitor banks and more. The extension of intelligent control
over electrical power grid functions to the distribution
level and beyond via distribution automation is a key
enabler for the smart grid.
For example, many electric utilities have implemented
wireless communications solutions in SCADA systems
for better control over transmission-level equipment. As
reliability and load requirements continue to increase,
however, so does the need for data communications
solutions to serve automation functions within the
grid. Automating distribution fulfills a utilitys objective
to provide communications to all critical points in the

infrastructure so uptime is maximized and achieved
affordably.
Capacitor bank control. Operators use capacitor banks
to help correct problems such as power-factor lag or
phase shifts in alternating current (AC) electrical power
supplies. They also can be used to increase stored energy
and improve system power quality. Using a reliable wireless network to control and monitor capacitor banks
ensures greater energy efficiency and a smooth operating
distribution system. Real-time data allows operators to
receive critical data faster and from remote locations.
Fault circuit indicator monitoring. Fault circuit indicators (FCI) along power lines are deployed to detect
fault current. As many operators know, if the current
defaults on a line with an FCI, it will know the distance
the current has failed from pole to pole. Operators then
can pinpoint the location of a fault along a power line.
Many operators, however, are unaware that technologies
SUBSTATION AUTOMATION SHOWING NETWORK INFRASTRUCTURE
Energy Sources
Internet
SCADA
Substation
Business
Home
Office
Substation
Business
Home
Substation
Business
Home
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can be embedded within the FCI, extract fault data and

send it back to a central information center in real time.
Previously, this application required a relay of data to
several points before it returned to a central point.
Wireless technologies available for this application are
embedded within the FCI and can transmit data up to
60 miles, ensuring fast fault identification. This prompts
fast utility reaction to help prevent major blackouts. It
also contributes to the mentioned goal of distribution
automation by narrowing problems when they occur
along the line. This helps maximize uptime, prevents
power-delivery issues and saves utilities money.
DIFFERENTIATING WIRELESS TECHNOLOGIES
When utility decision-makers, operators or both
begin their search for building a communications
network, they find many wireless options. Operators
might find technologies are suited for different
layers of the smart grid. The most important
caveat in selecting such a system is that people
must understand communication requirements
for their systems before choosing solutions.
No single technology can satisfy every requirement, especially in a system as complex as the
smart grid.
For example, standardized wireless technologies
often are used for smart grid applications. These
solutions offer many positive attributes such as cost
savings; however, the only requirement to connect
this wireless system is an off-the-shelf, standardsbased device (i.e., Wi-Fi).
As for security, there is widespread knowledge
of protocols to access this type of system and what
makes this wireless technology work. If someone
wanted to access a standardized wireless network,
all it might take is a Wi-Fi card, password and a
location within Wi-Fi signal range.
It has been proved that proprietary systems
and devices offer more security. Intruders find it
much more difficult, if not impossible, to access
the signal of proprietary wireless technology such
as frequency-hopping spread spectrum (FHSS)
data radios. In the distribution layer, where secure
data transmission is essential in preventing blackouts

and other detrimental events, FHSS might be an ideal
communication option. FHSS radios include unlicensed
systems such as 900-megahertz spread spectrum radios.
What makes FHSS technology secure? FHSS was
developed in 1941 when Hedy Lamarr and George
Antheil co-patented a secret communication system that
allowed radio control of torpedoes that could not be
discovered, deciphered or jammed easily by the enemy.
The key to developing the system was frequency hopping: coordinated, rapid changes in radio frequencies
that hop in the radio spectrum, thus evading detection and potential interference (being suppressed or
jammed).
Lamarrs idea was not implemented in the U.S. until
1962, when U.S. military ships used it during a blockade of Cuba (after the patent had expired). Now it is
_________
July 2012 | 33
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the basis for modern, industrialized FHSS wireless communication systems that use very small amounts of radio
spectrum at a time and do not remain at that frequency
long, instead hopping quickly to another frequency.
many options, especially relating to wireless. If security, reliability and real-time data are key criteria for a
utilitys communications system, then FHSS wireless
data radios might be the best choice. Decision-makers
should research vendors, as well. Reputable wireless
providers provide path study network design, offer
IDENTIFYING SECURITY
CONCERNS WITH WIRELESS
For wireless technologies, the two most
FREQUENCY-HOPPING SPECTRUM
common threats to data communication
DETAILING THE TECHNOLOGY
networks are denial of service (DoS) and
intrusion.
Bandwidth (i.e. 902-928 MHz or 2.4-2.483 GHz)
DoS is an attempt to make a network
9 3 5 11 1 15 4 13 7 10 15 2 14 8 12 6
unavailable to its intended users. DoS could
be as simple as jamming an electromagnetic
signal or as sophisticated as saturating a
system or network with communication and
RF
data traffic intended to overwhelm and prePower
vent legitimate data from getting through and
Direct sequence waveform
being processed. The consequences of DoS
Frequency
Frequency-hopping waveform
in the smart grid could lead to a transformer
explosion, for example, if the technology is
unable to monitor levels of cooling oil because it has excellent customer support and allow potential cusbeen jammed or interrupted. Penetrating and intrud- tomers to conduct pilots before purchasing. Knowing
ing into a network or computer resource requires a the communication options on the market, a utility is
different level of sophistication. The consequences much more likely to find the technologies that meet its
can range from spying or stealing information to cor- requirements. Effective data transmission keeps utilrupting data or intentionally causing harm by taking ity operators informed of smart grid health, allows it
to run smoothly and ensures proper power delivery.
over network control systems.
When using a reputable FHSS technology pro- By deploying a communication network for key grid
vider, these types of security problems can be nearly applications, especially within distribution automaeliminated. The military has used wireless FHSS tion, operators can get critical data at their fingertips
communication networks for years; the networks are in real time. This allows them to monitor and react
to problems constantly and quickly, whether it is a
reliable and easy to install.
If done properly, the FHSS wireless networks can transformer running low on cooling oil, a fault on
offer the same reliability and security that wired the power line or the need to increase stored energy
systems offer at a much lower cost. Because of in capacitor banks. This data can be delivered with
the strengths of FHSS wireless data radios, utility secure wireless technologies that are trusted for misdecision-makers increasingly are implementing wire- sion-critical applications in multiple industries.
less communication systems into their smart grids,
Curt Goldman is the utilities market manager at FreeWave
especially in distribution.
WHATS BEST?
When evaluating smart grid communications systems, utility decision-makers must be prepared to face
Technologies, a radio frequency design and manufacturing organization.

Before FreeWave, Goldman was the regional accounts manager for Two
Technologies Inc. He has a Bachelor of Science from Shippensburg
University and a Master of Business Administration from La Salle
University in Philadelphia. Reach him at cgoldman@freewave.com.
34 | July 2012
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______________________________
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BY MICHAEL H. PRYOR, DOW LOHNES
Will the FCC Impose Fees

on Smart Grid Connections?
Smart grid connections are proliferating, with
some 36 million smart meters having been
deployed in the United States, according to a May
study.
he Institute for Electric Efficiency (IEE) estimates this number will nearly double to 65
million smart meters deployed in nearly half of all
households by 2015. Smart grid connections are
one example of the burgeoning machine-to-machine
(M2M) services market, which will create a mammoth Internet of Things in coming years.
This proliferation of connected devices has
caught the attention of the Federal Communications
Commission (FCC), which is looking for new revenue sources to pay for the federal Universal Service
program. The FCC is assessing whether to broaden
the base of entities and services that would be
required to contribute to the program, as well as the
mechanism for assessing such fees. Among the many
proposals under FCC consideration is fees on smart
grid connections.
THE FEDERAL UNIVERSAL SERVICE PROGRAM

Universal Service is a multifaceted program that
helps finance broadband connections to schools,
libraries and rural health care centers, subsidizes
telephone service for low-income individuals and
families and supports the construction and operation
of telecommunications networks in costly to-serve
rural areas. Total 2011 funding for the program was
some $8.1 billion.
During the past several months, the FCC comprehensively restructured some of these programs
to shift their focus from primarily supporting telephone service to fostering broadband networks and
increasing broadband adoption among lower-income
families. The commission established

a new Connect America Fund to help
make affordable broadband services, including
mobile services, available to rural homes, businesses and anchor institutions that otherwise could
not afford broadband. Earlier this year, the FCC also
revamped the low-income program to help ensure
the availability of broadband and voice services to
all Americans. Until now, the commission had left
proposals to change how these programs are funded.
Money to pay for Universal Service programs
has been collected from telecommunications carriers, which are required to contribute a specified
percentage of their interstate long-distance revenues
from retail end users. This funding mechanism
is outdated. Many telephone service providers,
wireless and wireline, no longer sell stand-alone
long-distance services. Instead they offer bundled,
all-distance buckets of local and long-distance calling. Many consumers make calls using the Internet,
which might not be subject to the current collection
process. Telephone providers, which increasingly
include cable operators, receive substantial revenues
from selling high-speed Internet access and other
services that do not pay into the Universal Service
fund.
As a result, the funding falls heavily on a handful
of carriers that receive a shrinking portion of their
revenues from long-distance services.
According to the FCC, three-quarters of Universal
Service funding comes from five companies: AT&T
Inc., CenturyLink Inc., Sprint Nextel Corp., T-Mobile
USA Inc. and Verizon Communications Inc. These
companies also receive substantial funding from the
program. As program costs increase and the funding
base contracts, carriers are assessed an ever-higher
36 | July 2012
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Wind Power Works

for Electric Utilities
Not only does wind power provide a clean source of electricity, it helps
keep electric rates low and provides a hedge against fossil fuel price
volatility once wind projects come on-line. Wind energy costs have
dropped over the past few years as wind turbine technology has matured,
with taller towers, and with improved wind turbine efciency. Wind energy
is now one of the most cost-effective sources of new electricity generation,
competing with new installations of other energy sources in wind-rich
regions. And utilities can lock in wind energy prices for 20 to 30 years
because the fuel is free. Thats one reason wind power has added 30%
of all new generating capacity to the U.S. grid since 2007.
JOIN US for the 5th Annual Utilities and Wind Power Seminar
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The American Wind Energy Association (AWEA) is working with

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percentage of their long-distance revenues. In 2000,

the contribution factor was some 5 to 6 percent of
interstate revenues. Now, the contribution factor
exceeds 17 percent. Carriers pass these costs through
to their customers. There is broad consensus that the
current mechanism is unsustainable.
THE FCCS PROPOSED UNIVERSAL
SERVICE FUNDING CHANGES INCLUDE
SMART METERS, GRIDS
To help alleviate the increasing burden on existing
contributors and their customers who face higher
bills when the carriers pass through the Universal
Service fees, the FCC is revisiting the contribution
system.
The commission wants to expand the number and
type of services that would be assessed a Universal
Service fee and is considering how to assess a fee on
such services. The FCC is proposing to include in the
contribution base retail broadband Internet access
services and Internet-based calling services such as
those provided by Skype or Google. Regarding the
funding mechanism, the commission is proposing
to retain, with modifications, a fee assessed on revenues, to impose a fee based on network connections
or both.
Among the many proposals under consideration is
whether to impose a fee on any entity that provides
data transmission to end users using their own
facilities or a transmission service purchased from a

carrier. Theoretically, this proposal could encompass
M2M transmissions, including sending information collected by a smart meter from a consumers
home to a utility or transmitting analysis of energyconsumption information from a utility or other
third party to a computer in an end users home or
business.
The commission, therefore, asks if such a rule
should apply to M2M services, noting the rapid
growth of such services in recent years. Specifically,
the commission asks if it could or should impose
a Universal Service contribution fee on machineto-machine communications, such as smart meter/
smart grids, remote health monitoring, or remote
home security systems.
The commission wants

to impose the Universal
Service fee on more
types of services.
The commissions rulemaking notice does not
provide further insight into how it might assess
contributions on smart grid or other M2M services.
One possibility lies in the commissions proposal to
assess fees based oon a network connection,
which could be a physical facility (wireline
or wireless) connecting two or more
points or a service provided over
a physi
physical facility (think highspeed Internet access services
provid
provided over fiber, cable plant
or a wireless
w
network).
In the past,
p
the commission has
proposed defining a connection as a facility that connects
end users
use to a public network
such as a telephone network or
private n
network such as a utility smart grid.
g
The amount of the
assessment could
cou depend on the speed
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of the connection, with faster connections being

charged more than slower connections. Smart meter
connections tend to be relatively slow, in the kilobitper-second range rather the megabit-per-second
speeds of broadband Internet access services, resulting in their being assessed at lower rates. Even at
low per-connection rates, utilities or other entities
with millions of customers could face material new
fees that they would have to pass through to customers or take out of the bottom line. The commission
recognizes that a connections-based approach implicates M2M communications, including smart meters
and grids, and specifically asks how it might assess
fees on such connections.
There is broad consensus that the Universal Service
contribution system is broken and must be revised.
There is no consensus on to how to fix it, and the FCC

has left open a large range of possibilities. Nevertheless,
there will be considerable pressure from telecommunications carriers to broaden the base of contributors and
the burgeoning M2M market might be an attractive
target. The commission will accept comments on these
proposals from interested parties in coming months,
with a potential new system established late this year or
early 2013.
Michael Pryor is a member of Dow Lohnes communications
practice, where he represents cable, telecommunications and wireless
companies in federal and state regulatory proceedings, litigation and
transactions. Pryor served as the deputy chief of the policy division
in the Federal Communication Commissions Wireline Competition
Bureau from 1996 to 1999. Reach him at mpryor@dowlohnes.com
or 202-776-2339.
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Hansen, Editor in Chief of POWERGRID International,
Electric Light & Power and Utility Products magazines,
covers topics including:
* T&D Project Announcements
* Regulatory Filings and Approvals
* Legislative Issues
* Renewable Generation and Products
* And much more!
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the latest news and vital topics in an easy, online, streaming video format.
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www.elp.com
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A crew restores power after 29 tornadoes ripped across 691 miles in central Alabama. The April
2011 tornadoes knocked out power to more than 412,000 Alabama Power customers.
BY GREG ROHAN, WHITEHEAD & ASSOCIATES
Utilitys STORM RESPONSE

Creates Winning Game Plan
for Quick Response
Each part of the United States has its own storm season and power
outages. Like area residents, utilities know whats headed downfield
and are relatively prepared. On rarer occasions, a more damaging
event or series of events increases the likelihood of additional or
sustained outages. And more frequently, states and consumers are
holding utilities accountable for weather-related outages.
n many cases, poorly maintained lines or overgrown vegetation can
worsen storm damage. As they say, The key to
a good defense is a good offense, and in this case,
maintenance can defend against more damage but upfront planning is your best offense.
Such was the case for Alabama Power Co. in April
2011 when 29 tornadoes ripped across 691 miles in
central Alabama. The tornadoes caused nearly $190
million in damage and killed 238 people in 19 counties. The damage
knocked out power to more than 412,000 Alabama Power customers.
Gov. Robert Bentley declared a state of emergency.
According to Alabama Power

Co., the tornadoes took out more
than 400 transmission structures.
As a point of reference, hurricanes Ivan, Katrina and Opal
caused more outages, but combined they took out less than a
third of the transmission structures the tornadoes destroyed.
Alabama Power Co.s

electrical system had
to be completely
rebuilt in many areas.
Because of the storms devastation, the electrical system had to
be rebuilt completely in many
40 | July 2012
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Workers rebuild the electrical system. At one point more than 10,000
workers were restoring service to Alabama Power customers.
areas. At one point more than 10,000 workers were

restoring service.
Despite the worst tornado outbreak in more than
30 years, Alabama Power Co. restored power to more
than 95 percent of its customers in six days. More
than half received power within three days.
The challenge was identifying which structures

needed power and procuring parts for the damaged transmission facilitiessomething that can
take weeks under normal circumstances.
In late 2010, Alabama Power Co. integrated
its outage management system (OMS) with the
Sensus Flex Net Advanced Metering Infrastructure
(AMI) System. The system allowed the utility to
assess quickly which meters were without power
and obtain up-to-date outage information following
the storms.
Alabama Power Transmission Maintenance
General Manager Kristie Barton said the company
works on response plans year-round; the OMS is
only one way.
Being prepared helped the utility immediately get
to work as planned after it established 12 staging
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42 | July 2012
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sites that served as temporary home bases for workers and personnel.
You need to be open to the fact that decisions
need to be made immediately, and the damage
assessment has got to be done as soon as possible,
Barton said. In this case, we didnt expect 438
structures being impacted or having to replace more
than 250 of those. So we moved quickly to assess the
damage and determine what we needed to provide
repairs.
Anthony Popwell, Birmingham director of operations at MacLean Power Systems, one of the suppliers of Alabama Powers transmission systems after
the storms, said the challenge was the tight timeframe and intricacy of the equipment build.
Many times, including in this case, the equipment
used by a utility is specific to its needs or the needs
Foul-Weather Friends
When the forces of nature cause a disruption to your T&D system,
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Pole strength upgrading with the ET-Truss

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Digital Measurement TechnologyTM (DMTTM).

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Line patrols with experienced Osmose technicians

_________________________
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Crews work to restore power to Alabama Power

customers after the worst tornado outbreak in more
than 30 years.
making the plan scalable was key.

Yes, this was dramatically different, but we
do plan and prepare year-round, she said. So,
whether we need 100 people or 10,000 people,
we have a good sense of what it takes to get the job
done and who we are going to rely on. In this case,
our planning worked and everyone worked well
together.
Greg Rohan is territory sales manager in Birmingham, Ala., for
Whitehead & Associates, a manufacturers representative to the
electrical industry in the Southeast for more than 40 years. Reach him
at greg@whiteheadassoc.com.
of individual facilities, Popwell said. Assemblies

are put together to meet specific requirements, and
it usually takes weeks or even months to pull everything together and test it. We had days.
MacLean turned its manufacturing facilities into a
storm restoration operation center and got Alabama
Power more than 100 custom conductor clamp
assemblies for bundled conductors in less than a
few days.
Having necessary items

on hand and making the
plan scalable was key.
The assemblies were for the 500-kV transmission
line restoration and made to spec for Alabama Power.
Throughout the project, Whitehead & Associates
also worked with other distributor partners to supply more than 4,500 hotline clamps, 2,390 fiberglass two-phase brackets, 2,170 fiberglass one-phase
brackets, 14,750 automatic splices, 1,462 transmission clamps and their assemblies and 1,858 cutouts.
Barton said having necessary items ahead of time and
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_________________________________

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BY THOMAS OCONNOR, PANASONIC
ULTRABROADBAND Wireless
Helps Mobile Workers Go Farther
Nearly 75 years ago, Canadian inventor Alfred J.
Gross developed the first walkie-talkie.
eportedly built while Gross was in high school, the
rudimentary technology was the predecessor to a
two-way, air-to-ground communications system Gross
helped develop for the U.S. military that proved crucial
to U.S. victory in World War II. Gross also pioneered
other groundbreaking wireless technology, including
citizens band and the first telephone pager.
Gross inventions changed life and business around the
world, including the utility industry. One must wonder
how the work force could operate without his creations.
From the early days of walkie-talkies to mobile computers and tablets, wireless mobile devices have helped
utility professionals work smarter, faster and more efficiently for decades. The technology is vital to business,
and it is used daily from enabling 24/7, two-way communication in the field to automating meter reading and
mobile payment collection.
One only can imagine what Gross would say about
the utility industry; the technology evolution has brought
capabilities people never thought possible. Ground crews
send and receive high-definition video in the field,
managers gain real-time visibility into their teams locations and large files are stored in the cloud, ready to be
accessed virtually anytime, anywhere.
wireless networks, is one of the most important developments for enterprise communications. 4G enables
many new capabilities, and mobile carriers nationwide
are deploying them quickly. Download speeds on 4G are
about 10 times faster than 3G download speeds from
the same carrier. These ultrabroadband networks also
offer vast improvement in capacity and latency over 3G
networks, giving mobile workers new capabilities.
This mobile ultrabroadband Internet access lets
mobile computers and smart phones access data at
speeds and amounts comparable to those of desktop
computers at headquarters.
Nearly 200 mobile network operators have deployed
or are deploying 4G networks worldwide, according
to analyst firm IHS iSuppli. 4G actually refers to one
of two fourth-generation wireless technologies: Longterm Evolution (LTE) or Worldwide Interoperability for
WHAT IS 4G?
Wireless technology sometimes resembles alphanumeric soup: 2G, 3G, 4G, LTE, GPS, RFID, CDMA and
GSM, to name a few. 2G technology can deliver
email and perform other minor tasks, and
3G offers data rates high enough for
near-real-time access to Web browsing and other applications. 4G,
the fourth-generation of
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Microwave Access (WiMAX). WiMAX was introduced

first, but 4G LTE has overtaken it as the dominant force
in the industry. WiMAX growth during the next few
years is predicted to stay flat. Some carriers still use
WiMAX, however, and many people expect the two will
coexist in some form for the foreseeable future.
Consider testing mobile

broadband strength
yourself in fringe areas.
4G wireless is available to millions of people, but
many networks still rely on 3G, which does not offer
the data rates of 4G but still goes a long way toward
enabling mobile workers. These networks might not be
ready for streaming high-definition video in the field or
a real-time, mobile cloud-based, customer relationshipmanagement platform, but they allow many daily functions field-workers need. Many mobile carriers offer
strong 3G coverage while they roll out 4G networks.
Another option, in many cases, is Wi-Fi. As opposed
to 3G- and 4G-enabled devices that use cellular networks, a Wi-Fi device requires connection to an Internet
access point such as a Wi-Fi hot spot. Data rates depend
on signal strength, speed of the original Internet connection and other factors but generally are faster than 3G.
Wi-Fi is not a solution for T&D workers in remote
locations, but it might be worth considering for oncampus mobile workers. Many devices, especially those
built for enterprise use, offer Wi-Fi and cellular broadband capabilities.
MOBILE BROADBAND FOR UTILITIES
These technology advances are poised to revolutionize
mobile communication the world over, but what does it
mean for electric power transmission and distribution?
The primary impact can be summed up in one word:
data. As smart grid programs grow across the nation,
the amount of data is exploding. Research and strategic
advisory firm Lux Research predicts that between 2010
and 2020 the utilities industry will see a 900 percent
increase in the quantity of data to communicate, manage and use. People generally think of intelligent power
devices as things that send data from a customer to a
central location, but the data then can be analyzed and
returned to field-workers mobile to give them actionable, real-time information.
Related capabilities include work order, asset and
inventory management, where crews can access live
databases from anywhere. High-definition video can be
sent and received seamlessly for employee training or
remote surveillance.
The shift toward a cloud-based work flow also
demands access to ultrafast broadband Internet so
mobile workers can take advantage of its capabilities.
These are a few examples of the promise high-speed
mobile broadband holds for utility providers. The technology will benefit the industry in many more ways,
according to Capgemini Consulting. By bridging the gap
between field-workers and the office, mobile technology
will reduce costs, streamline operations and improve
customer service.
CHOOSING THE RIGHT DEVICES
The network and its capabilities are only part of the
puzzleutility providers must ensure they invest in the
right mobile devices. Making the wrong choice could
mean shorting workers on everything the new technology has to offer. Consider a few factors for mobile ultrabroadband device deployments:
Testing. Ensure proper testing is done on the device to
verify its wireless strength in your area. Not all wireless
mobile devices are created equal; some are designed to
maximize receptivity, and others treat a wireless antenna
as an add-on feature. Working with your system integrator or reseller, consider testing mobile broadband
strength yourself, especially in fringe areas. The farther
your field force can go, the more productive they can be.
The original manufacturer should conduct its own tests,
and you can ask to see its data. A device manufacturer
dedicated to providing a strong connectivity for mobile
work forces will be happy to share how it tests, where
CONTINUED ON PAGE 50
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on consumers. According to a recent

PricewaterhouseCoopers survey, 66
percent of the utility companies
surveyed in the United States and
Europe view one of the main rationales for implementing the smart
grid as an opportunity to get closer
to our customers.
Eighty percent of the North
American utilities surveyed in
the report and 74 percent of
European respondents also said
a lack of customer engagement
surely would limit AMI from living up to its potential.
Increased consumer involvement
will come eventually. In the meantime, there are other ways to use the
AMI infrastructure to improve the
Value-added Investments
for SMART GRID
BY MARTHA BERNAL, THOMAS & BETTS
Smart grids can be defined many ways, but most agree the concept
centers on increasing the intelligence and sustainability of the transmission
and distribution (T&D) infrastructure to improve network reliability and
efficiency.
his can come in renewed ancillary equipment, upgraded hardware,
better controls, increased communications or more effective system
monitoring. The question that usually follows is: How do we get the most
significant improvements in the most cost-effective way?
This is a valid question, given the work involved in getting any smart grid
project justified and funded and the multitude of utility options. There are,
however, tried product applications that can be combined with existing network improvements to get fast, effective improvements to the utility network.
GETTING MORE VALUE FROM THE AMI NETWORK

Because of the recent, wide deployment of advanced metering infrastructure (AMI) networks, much attention paid to the smart grid has been focused
electrical network further. AMI systems have established high-speed,

two-way communications that can
be used to automate, communicate
with devices in the distribution system or both.
For example, some utilities use
their AMI communications infrastructure to interface with faulted
circuit indicators (FCIs) and capacitor controls. These devices generate
limited data that can be handled over
AMI mesh networks. Automated
FCIs improve fault location, which
results in better system reliability.
Using an AMI mesh network
for communicating with capacitor
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controls improves efficiency of the distribution network

by optimizing volt/VAR control.
Utilities get the benefits of improved fault isolation and power factor optimization, and they can
accomplish it without any additional communications infrastructure. This increases the value of the
AMI networks for utilities.
the elements. But faults still happen, and when they

do location and isolation of those faults is critical to
maintaining reliable power flow. Historically, switchgear
in the distribution system was used only to redirect
power or to reconfigure underground loops manually.
Although switchgear contributed somewhat to fault isolation during repair, it was a fairly manual process. Now
the same types of sensors, communications and
automation devices used in overhead and substation equipment can be used in underground
distribution switchgear. Faster mechanisms such
as magnetic actuators allow switchgear to perform complex circuit reconfiguration algorithms
in a few seconds, positively impacting power reliability. When the automation in underground distribution
switchgear is compatible with other equipment in the
network such as overhead switches or reclosers, utilities can establish circuit reconfiguration schemes that
combine types of devices.
The third device is the recloser. A recloser is the
device of choice when it comes to improving power
reliability in overhead distribution systems. It provides automatic power restoration after a momentary fault. A recloser also isolates faulted portions
of the system, allowing the fault to affect only a few
customers. The more reclosers installed, the more
granular the isolation of faults is and the more reliable the system becomes. With distribution automation, reclosers also are used for circuit reconfiguration based on voltage, current, load profile and other
criteria. The addition of compatible automation also
allows reclosers, switches and switchgear to become
part of the same scheme when necessary. This is
when open-source compatibility proves its value.
Some of these devices and applications are familiar; however, getting back to the basics of reliability
and efficiency can help discern what the priorities
should be when embarking on a new smart grid
project. The combination of this basic knowledge
with current technological advances in sensing,
communication and automation equipment design
can result in high-value investments for electrical
utilities.
Getting back to reliability

and efficiency can discern
smart grid priorities.
DIGGING DEEPER INTO
THE DISTRIBUTION SYSTEM
Power distribution is where the next-best opportunities for reliability and efficiency improvements exist. It
entails adding sensors and communication to existing
hardware, adding new equipment in strategic locations
and replacing existing equipment all together.
At the distribution level, three devices can contribute quickly to making the system more efficient
and reliable.
The first is the capacitor switch. Although 70 percent
of new capacitor banks installed are switched, many
capacitor banks are fixed. They provide the same power
factor correction throughout the entire load profile. This
might result in an improved power factor (more efficiency) during one part of the day and a worse power
factor than intended (less efficiency) during another
part of the day. Adding switching capabilities to a fixed
capacitor bank lets a utility correct the power factor
more effectively by deciding when and where to inject
VARs into the system. The result is a more efficient network that can operate at a higher capacity. The next step
in the efficiency path is to outfit the capacitor switches
with automated controls so banks can be switched on
and off automatically at optimum times based on temperature, voltage, current and other parameters.
The second device is underground distribution
switchgear. An ever-increasing percentage of new circuits built are underground. This makes distribution
systems more reliable because they are less exposed to
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HOW CAN EQUIPMENT

MANUFACTURERS HELP ADD VALUE?
Who better to answer this question than electric
utilities? Recently Thomas & Betts asked utilities about
reclosers and their true needs. Utilities said they desire a
recloser that is easier to handle and install; allows sensors
to be added later; and is compatible with existing and
future devices, communications and protocols, whatever
they might be.
Many reclosers can be installed within a short time,
and facilitating the installation would result in significant
time savings. Reclosers that allow utilities to add voltage sensors easily as their grid requirements change will
result in first-cost savings and planning flexibility. The
use of standard open-source controls facilitates the automation of circuits that have a combination of switches,
switchgear, reclosers or other equipment because they
all can use the same communications platform and
programming logic. Finally, utilities are asking us, the
manufacturers, to increase support throughout the life
of the equipment and provide greater expertise as they
embark on new projects.
CONTINUED FROM PAGE 47:
Most interesting, the top requirements are not product-specific but rather are intended to make smart
grid implementation easier and more viable. Support,
upgradability and compatibility top the list. Equipment
Three distribution devices

can contribute quickly to
efficiency, reliability.
manufacturers must listen to and understand utilities so
manufacturers can apply innovation and new technologies to solutions that will adapt to the current infrastructure and changes.
We must adapt, evolve and innovate at a much faster
pace. Manufacturers are excited to be part of this industry and must continue listening for new opportunities to
contribute to a smarter grid.
Martha Bernal is product group director of power and high-voltage
products at Thomas & Betts. Reach her at martha.bernal@tnb.com.
ULTRABROADBAND Wireless Helps Mobile Workers Go Farther
it tests and how it engineers products for real-world

reliability.
Embedded mobile broadband. With laptop computers, buyers have two choices for mobile broadband: an
external card that attaches to the computer by USB or a
similar port, or embedded mobile broadband built into
the computer.
External cards are not good for utility deployments.
One reason is in signal strength. Computers with embedded broadband generally have stronger antennas that are
literally wrapped around some laptop models screens.
External cards also present an inventory management
challenge. These cards can be lost or stolen easily. They
also can break off and permanently damage a computer
that is dropped or falls.
Durability. The strongest connection is useless if
your mobile device cannot be used where you need it.
The utility industry has long been a champion of rugged mobile devices, but ruggedized features such as
daylight-viewable screens, long battery life and the ability to withstand drops and falls are just as crucial when
you consider 4G devices. Many rugged, enterprise-built
devices offer 4G access as powerful as popular consumeroriented devices.
Gross likely knew his wireless communications
advances would help the world, but he probably never
imagined the applications for mobile utility workers.
By making the right mobile device choices and learning more about wireless technologyespecially 4G
your organization can empower your work force to work
smarter and more efficiently.
Thomas OConnor is senior national business development manager for
Panasonics enterprise sales team.
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PERFORMING &
PROTECTING
SUBSTATION STRATEGIES THAT WORK
Hubbell Power Systems offers product solutions for increased
capacity and enhanced reliability. From high voltage transmission
to lower voltage distribution, HPS provides the products you need
to construct, maintain and safeguard the substation in between.
Anchors, Foundations & Enclosures

Arresters, & Insulators
Bushings & Switches
Connectors & Hardware
Chance Lineman Grade Tools
You can count on Hubbell Power Systems for sophisticated
logistical support and engineering expertise. One order. One
supplier from the name you know and trust.
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w w w. h u b b e l l p o w e r s y s t e m s . c o m

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BY SCOTT KOEHLER, TELVENT UTILITIES GROUP
AMI, OMS Extend Syste
Improve Outage Manage
s advanced metering infrastructure (AMI) deployments continue

to expand, the industry is looking for ways to integrate with
other solutions to maximize the return on investment. The combination of AMI and meter data management (MDM) is a common example
of how utilities are interfacing AMI with other systems to achieve data
sharing and interoperability. The MDM validates, edits and estimates
meter readings, streamlines billing processes and supports beneficial
rate designs and time-of-use programs.
To create a truly smarter grid, however, the industry must consider broader system integration for AMI to capitalize on the
wealth of information and advanced capabilities it provides. One
increasingly popular approach is to use AMI to improve operations via integration with an outage management system (OMS).
An OMS traditionally relies on customer calls to identify outages and
predict their locations. But with AMI, an OMS can provide operational
intelligence that neither system offers independently. Together, AMI and
OMS can reduce outage times, improve outage detection and provide
more efficient crew management and more accurate reliability reporting. Even momentary events that might not require a response can be
analyzed to help mitigate issues and optimize information shared with
regulators, customers and others.
The following outlines what a utility should consider to integrate AMI
with OMS and the tangible outage management advantages that extending AMI to the control room makes possible.
OPEN-STANDARD INTEROPERABILITY
An OMS that meets open-standards interoperability, including testing
to the IEC 61968 standards, is the surest way to ease deployment and
maintenance and avoid obsolescence. Performance criteria testing will
determine whether the OMS will process tens to hundreds of thousands
of events per hour reliably and manage large-scale outages without
impairing the work flow of dispatchers and operators. Finally, an OMS
with a services-oriented architecture, such as Web services, allows for
scalability and enhancements as a utility expands AMI in the enterprise.
BETTER TOOLS FOR A MORE

RELIABLE GRID
Integrating AMI with OMS functions results in faster responses
and power restoration. The following are the most business-critical
advantages for electric utilities:
Validate outages for more efficient response. AMI communication systems generally are reliable,
but message collision and AMI
network bandwidth constraints
can prevent no power messages
from reaching the OMS. Some
AMI systems also might deliver
duplicate and out-of-order messages. An OMS with a robust integration infrastructure can filter all
unnecessary AMI event messages
to avoid overburdening the core
analysis engine.
OMS and AMI integration
allows for automatic or manual
pinging of meters. The response
time of a ping request varies, but
utilities using this functionality
can experience significant time
and cost savings by validating
events, eliminating unnecessary
truck rolls and consequently making more efficient use of crews.
In addition to restoring customers power faster, many utilities find it valuable to proactively
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em Value,
ement Efficiency
communicate power problems, crew status and estimated restoration time to customers. Regardless of
the communication medium, a utility can notify a
customer that the utility knows of a power problem in
their area based on an AMI report.
Find outage events faster. Utilities that rely on
customers to report outage events face challenges
including the ability to react quickly and accurately
with limited information. On average, only some 10
percent of customers call to report power problems;
notification rates varying depending on the time,
day of the week and location.
In contrast, the AMIs ability to communicate no
power events to the OMS means more immediate and
reliable data, which increases the OMS ability to identify
problem locations and provide visualization and analysis
of the affected area. As AMI gathers and sends data, the
OMS processes and analyzes it using the tracing and prediction analysis functions of a real-time distribution network model to determine the affected protective device.
An AMI could not do this alone; the topologies of its
communication systems have limited knowledge of the
power distribution network beyond the relationship of
a meter to a customer premise or other discrete locations. But by leveraging a utilitys geographic information
system (GIS) as-built model, the OMS can maintain the
as-operated state of the network accurately and provide
users with a geospatial model and view of network
activity. This results in more reliable incident-location
identification for field crews and a faster response to
alleviate the issue.
AMI solutions also can communicate notifications
from devices higher on the network, such as collectors, giving the OMS additional data for prioritizing
events and identifying incident locations more rapidly.

Similarly, reports of partial power and power qualityrelated events help the OMS provide improved management of unplanned and planned events.
Faster service restoration. Nested outages during restoration can be difficult to identify. Pinging
suspect meters downstream from the primary restoration event can help identify residual or nested
outages resulting from multiple faults downstream
of a protective device. The OMS can create new
incidents for these nested outages while crews are
on-site, eliminating associated customer callbacks,
redundant truck rolls and extended outages.
ACCURATE PERFORMANCE INFORMATION
Utilities benefit from operational improvements,
and AMI-OMS integration also helps manage critical
documentation of event management and restoration times. More accurate historical data leads to:
improved quality of reports; reliability indexes such
as the Customer Average Interruption Duration
Index (CAIDI), System Average Interruption
Duration Index (SAIDI), Customer Average
Interruption Frequency Index (CAIFI), System
Average Interruption Frequency Index (SAIFI) and
Momentary Average Interruption Frequency Index
(MAIFI); and other analyses shared with management, regulators, customers and the media.
As the world depends more on a reliable electrical
grid, power distributors will continue to be challenged to improve outage management strategies.
AMI provides the data to enhance the resolution of
outage events provided by OMS and enables utilities
to respond faster and more effectively to network
events. This synergy between information technology systems is part of an important trend of systems
integration for utilities, bringing the capabilities
of multiple systems together in a powerful suite
to improve customer service, decrease operational
costs and make the smart grid even smarter.
Scott Koehler is director of smart grid management at Telvent Utilities
Group. He is an electrical engineer with 20 years of combined utility, software
and system integration experience.
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Crews from Union Power Cooperative in Monroe, N.C., use mobile GIS for a
comprehensive view of the electric distribution network.
BY JESSICA WYLAND, ESRI
Union Power Co-op GIS Dashboard

Means Real-time, Mobile Access
The staff at Union Power Cooperative in Monroe, N.C., use mobile
geographic information systems (GIS) to achieve a comprehensive
view of the electric distribution network, with data from throughout
the company merged into one real-time, easy-to-use map: the Union
Power Operations Dashboard.
he cooperative provides electricity and energy-related services
to more than 65,000 members throughout the five Southern
Piedmont counties of Union, Stanly, Cabarrus, Mecklenburg and
Rowan.
The Union Power Operations Dashboard provides real-time and historical outage information, data from the advanced metering infrastructure (AMI) system such as voltage and momentary interruptions, up-tothe-minute work order type and location details plus meter-tampering
indications. Using the dashboard, staff quickly can answer questions
such as: What is the current operational status of the network?What
incidents or outages are occurring

and where? Are there any external environmental events that can
impact operations?
The dashboard is built on a GIS
foundation. Union Power uses
ArcGIS technology from Esri, a
software and services provider.
Because the GIS was already in
place, Union Power had to spend
little. Union Power Operations
and Engineering Support Manager
David Gross and GIS administrator Todd Harrington completed
the work. A team from Esris
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professional services division helped by adding custom features.

We have taken the electric distribution dashboard template from Esri and made it work for us,
Harrington said. We added data from Oracle on the
customer information side, automated metering data
in an Oracle database, Milsoft data on SQL Server,
and some GIS data on SQL Server along with Esris
Web services.
Within a week of going

live, the meter-tampering
widget recovered more
than $3,000.
Features added to the dashboard include rightof-way maintenance, automatic vehicle location,
nonpay cutoffs, key accounts and the ability to add
or delete notes.
A feature that displays possible meter tampering
works especially well.
Information from the AMI system is pulled daily
to compare with the customer information system.
A daily email notification with the dashboard data
is sent to the appropriate staff person.
We learned that the dashboard not only provided more information to our employees but was
also much faster and easier to use than our existing
digital maps, Harrington said. It has helped us
discover meter tampering a lot faster. Within the
first week the meter-tampering widget was live, it
recovered more than $3,000 in meter tampering that
we may have never recovered or would have taken
the next billing cycle to discover.
Another added feature is the ability to see outage
information at a higher level and sorted in ways
The Electric Distribution Operations Dashboard

template can be used as a guide for implementing a
common operating picture to improve operational
decision-making in response to outages and other
service-impacting events. Union
Power added to its dashboard the
electric distribution system, failed
reads, work orders and high- and
low-voltage data. Utility engineers
consult the dashboard each morning before making system decisions.
So far, Harrington said, management is excited and pleased with the
dashboard. Within the first week,
the system engineer could use the
high- and low-voltage data to identify damaged overhead transformers and submit maintenance work
orders. Every department compaThe Union Power Operations Dashboard provides an outage overview that keeps
nywide can access the dashboard.
management, the communications department and customer service representatives aware
Requests started coming in from of how many and which customers are without power.
users for more and more features,
Harrington said. When the non-GIS people started such as number of members out of power, outages
submitting ideas for expanded features making use by county, outages by district and number of key
of GIS information, it was more than a hint that the accounts without power by category. This means all
dashboard was something special.
staff members can see real-time information without
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requesting data from the dispatch centera department that usually is busy during large outages.
The dashboard has saved the utility considerable
time. Because everything is automated, personnel no
longer are tied up with extracting data, cleaning up
data and producing maps.
Harrington trained field service personnel, customer service representatives and dispatchers on the
dashboard. He also is training linemen and setting
up data connections in crew trucks.
The utility community is excited about the Union
Power Operations Dashboard. In 2011, Harrington
spoke about it at the national Esri Electric and
Gas GIS Conference. He and Gross also presented
their work at the 2012 Tech Advantage Conference
in conjunction with the National Rural Electric
Cooperative Associations annual meeting.
Based on feedback from other utilities, we have
developed some very innovative concepts, Gross
said. This project will continue to evolve, adding
value to our members as it places the efficiency of
advanced technology at employees fingertips.
LATEST MOBILE GIS TRENDS FOR UTILITIES
As technology evolves, so do the flexibility and
capability of mobile GIS. Utilities rely on immediate
access to up-to-date, real-time information regardless
of location.
People need mobile mapping applications to help
with decision-making in the field.
But how do utilities connect to mobile GIS? It can
be done simply with something many people carry
in their pockets: smart phones.
Union Power line workers are trying Esri ArcGIS
applications for iPhone and Android to access map
services on the dashboard.
Esris free smart phone applications may be
downloaded from the Apple App Store, Windows
Marketplace and Android Market.
All three applications include a developer-focused
software development kit (SDK) utility staff may use
to build custom applications.
ArcGIS Runtime SDK for smart phones lets utilities build applications with powerful mapping,
Using the dashboard, Union Power can find faulty equipment before it
fails and causes an unplanned outage.
geocoding, geoprocessing and custom capabilities.

Maps and tasks may be embedded into line-ofbusiness applications.
Union Power crews can access the dashboard in
their vehicles through wireless connections on laptops. Staff can view the dashboard from home with a
user name and password.
Two Union Power trucks are doing a test run of
Esris ArcPad, mobile field mapping and data-collection software designed for GIS professionals.
The GIS and GPS capabilities let users capture,
edit and display information through a multiuser or
personal geodatabase.
Utilities are taking advantage of mobile GIS to save
time and costs and to bring the average workday up
to the speed of new technology.
Mobile GIS connects everybodyGIS professionals, field-workers, knowledge workers and executives, said Jack Dangermond, Esri president. Its
really about extending the reach of your organization so you can have access to real-time, situational
awareness.
For Union Power, connectedness and real-time
situational awareness are at hand.
Jessica Wyland is a writer at Esri. Reach her at jwyland@esri.com.
56 | July 2012
www.power-grid.com
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Nominate your CEO today!

Electric Light & Power magazine will name two utility CEOs of the Year during the Electric Light & Power Executive
Conference, Jan. 27-28, 2013, in San Diego. Nominations will be accepted in two categories:
Small Utility CEO of the Year (fewer than 400,000 customers)
Large Utility CEO of the Year (400,000 customers or more)
The CEO of the Year will be selected based on essays that address:
How does the CEO help the industry?
What sustainability initiatives does the CEO support?
How does the CEO maintain profits?
How does the CEO keep employees happy and engaged?
How does the CEO support philanthropic causes or help others outside of work?
What is the CEOs company vision?
What else sets the CEO apart?
Deadline for nominations is Oct. 1, 2012

Full rules and nomination form are available at http://elp.com
_________
Go to ___________
http://pgi.hotims.com for more information.
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BY JONAS OLSEN, ON-RAMP WIRELESS
Wireless Communications
Can Improve Equipment Condition Monitoring

In the ongoing struggle for cost savings and revenue opportunities,
many organizations have revamped their system maintenance strategies and made intelligent decisions for these improvements.
raditionally, equipment maintenance has been manual, reactionary
or event-based. Something breaks down, an alert is created and
the problem is corrected eventually. This antiquated approach leads to
costly delays; minor failures can bring parts of a distribution network
down. A more preventative, proactive maintenance system is required.
This is the origin of condition-based maintenance (CBM), also called
condition-based monitoring. With CBM, sensors are deployed in the production line and data is collected and analyzed for finding early warning
signs in attempt to correct issues before they become major obstacles. The
goal is to move from time-based maintenance (checking the valve weekly)
to just-in-time maintenance (fixing the valve just before failure).
CBM lowers costs in five primary areas:
1. Reduced outages because of early warnings;
2. Replacement deferral;
3. Substitution of current manual processes;
4. Operational efficiencies; and
5. Safety improvements.
CBM deployment requires a cost-benefit analysis between the cost

of deploying and maintaining the system and the gained benefits of
preventative or just-in-time maintenance. Often the cost of deploying
CBM systems in utility and other wide-area networks has been too high
to justify. In some situations, there hasnt been a technology that could
solve the technical challenge.

A wireless communication system, however, can mitigate most
problems with CBM and provide
customers with a short return on
investment and continuous cost
savings. In the case of San Diego
Gas & Electric Co. (SDG&E), the
utility implemented such a system
to aid in the maintenance of its
warning lights, Federal Aviation
Administration (FAA)-required
58 | July 2012
www.power-grid.com
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Save $200 before Nov. 16 with Promo Code: JULY
JAN. 29-31, 2013 :: SAN DIEGO CONVENTION CENTER :: SAN DIEGO, CALIF. :: HTTP://DISTRIBUTECH.COM
_____________________
REGISTER BY NOV. 16 AND SAVE $200 OFF FULL CONFERENCE REGISTRATION!
Join us in San Diego for the DistribuTECH Conference and Exhibition. DistribuTECH is the utility industrys leading
annual transmission and distribution event, covering automation and control systems, energy efficiency, demand
response, renewable energy integration, advanced metering, T&D system operation and reliability, power delivery
equipment and water utility technology.
PRESENTED BY:
POWERGRID International is the

official partner of DistribuTECH.
OWNED & PRODUCED BY:
SUPPORTING PUBLICATIONS:
MEDIA SPONSOR:
HOST UTILITY:
Go to http://pgi.hotims.com
___________ for more information.
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indicators affixed to transmission towers that warn

aircraft of possible flight path obstructions. For
SDG&E, wireless communication has proven costeffective and viable to ensuring its FAA lights function at all times.
SDG&E MONITORING OF
AVIATION, OBSTRUCTION
LIGHTING FOR FAA
SDG&Es service territory has
some 1,800 miles of overhead
transmission lines in towers,
most of which are in hardto-reach, outdoor environments. FAA regulation AC
No. 70/7460-1K for L-810 and
L-864 states these towers must
be equipped with solar- and linepowered obstruction warning light
systems, which must be monitored
constantly. SDG&E monitors manually
by sending trucks and helicopters to visually inspect the lights every
day, which is not cost-effective.
SDG&E implemented an automatic
monitoring and fault alarm notification
system to detect all light failure conditions (light failure or outage, solaror line-powered substation failure and
intrusion detection). The system needed
to remotely monitor sensors and provide
detailed status reports at consistent intervals. Because the system constantly monitors light
conditions, it also must be low-power to minimize
manual battery recharging or replacement. Solar
power provides ongoing operations. SDG&E implemented remote monitoring units operating in the
unlicensed 2.4-gigahertz ISM band, eliminating the
need to visually inspect the obstruction lights daily.
The system was field-tested and proven in high electromagnetic field (EMF) and electromagnetic interference (EMI) environments typical for transmission
towers and substations (up to 500 kV). This flexible
monitoring platform provides many miles of coverage and can measure analog and digital signals from
various sensors. The solution provides a detailed
audit trail of device status alarms and events. Alerts
may be emailed or sent by text message so SDG&E
employees receive real-time notification of light
issues. Service personnel can take immediate, corrective action. The deployment resulted in reduced
operations and maintenance cost and lowered critical infrastructure risks.
BENEFITS
Wireless communication systems offer tremendous cost-saving opportunities through elimination of manual processes, enhanced error alerting,
increased safety and better maintenance, and they
enhance customers competitive advantage and present new revenue opportunities. This could not have
been achieved at SDG&E without the performance
breakthroughs and significant cost advantages of the
technology.
Using the 2.4-gigahertz

unlicensed frequency
band, wireless technology
is replacing maintenance
strategy for U.S. companies
such as SDG&E.
The unlicensed 2.4-gigahertz wireless system can
cover most wide areas of operation with minimal
network planning. Current solutions typically fail
because of limited range and capacity and a too
complex network architecture. In contrast, this new
technology offers simple, secure wide-area coverage in a low-cost package for most equipment- and
condition-monitoring applications.
Jonas Olsen is vice president of marketing and business development
for On-Ramp Wireless. Reach him at jonas.olsen@onrampwireless.com.
60 | July 2012
www.power-grid.com
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PRODUCTS
Transition, Serial to Ethernet
Cloud Computing Solution
FreeWaves FGR2-PE wireless
PowerOneData International (P1DI) announces
communications solution is ideal
GENII meter data management software. When
for smart grid, electric power and
combined with P1DIs smart meter technology,
renewable energy applications and is well-suited for
GENII, a cloud computing-based, meter-to-mouse
similar SCADA applications in other vertical markets.
application, provides electric utilities with an auto-
The future-proof combination of two serial ports and
mated metering infrastructure solution. GENII
two switched Ethernet ports offers customers the
interfaces with any meter. Features include: soft-
ability to transition from serial to Ethernet data com-
ware-driven, prepaid and postpaid billing, instant
munication without having to replace their wireless
data acquisition, plug-and-play top-down and
communication hardware down the road. Users can
bottom-up network-building capabilities, bidirec-
operate both serial and Ethernet communication inde-
tional communication and remote connect and
pendently and simultaneously on the same platform.
disconnect. It offers improved revenue generation
The deployment flexibility of the FGR2-PE solution
through programs such as critical peak pricing,
also reduces the need for additional hardware.
time of use, peak-time rebate and other tariff rate

programs.
FreeWave Technologies Inc.

GO TO ____________
HTTP://PGI.HOTIMS.COM FOR MORE INFORMATION
PowerOneData International
GO TO HTTP://PGI.HOTIMS.COM
____________ FOR MORE INFORMATION
Relay Test System

Meggers
MPRT8445
automatic
Energy Management Mobile App
protection relay test system combines
EnerNOC Inc., a provider of energy manage-
reduced weight, increased output
ment applications for the smart grid, has released
power and current and IEC 61850 test capabilities
EnerNOC mobile app, an app that provides on-the-
with open communications architecture. It can be
go access to real-time energy data for EnerNOCs
used with third-party software and Meggers AVTS
5,300 customers. EnerNOCs platform collects real-
software. Capable of testing electromechanical, solid-
time energy data from thousands of commercial,
state and microprocessor-based protective relays, the
institutional and industrial sites, integrates it with
MPRT8445 is available as a three-module version
external data feeds such as market and weather
that can provide up to six current channels or a four-
data, and presents users with intuitive dashboards,
module version to provide up to eight current chan-
tools and reports to become better energy manag-
nels. Its test sets use Meggers newest constant power
ers. Energy users who utilize DemandSMART to
output voltage and current modules. The modules can
participate in demand response or EfficiencySMART
continuously deliver up to 30 A at 200 VA per phase or
for continuous energy efficiency will now be able
up to 45 A at 300 VA with a 1.5-second duty cycle. The
manage demand response dispatch performance
MPRT8445 can be used with a personal computer and
on the go, monitor energy use trends, and identify
is suitable software for the full range of manual and
opportunities for greater efficiency.
automatic testing.
Megger
EnerNoc Inc.
July 2012 | 61
www.power-grid.com
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PRODUCTS
Display Cube, Control

Room Solution
Christie,
Connect With Smart Grid Components

Fluidmeshs
FluidMAX is a
wireless solution
control
designed to be fully compliant and integrated with
room technology solu-
other wired or wireless transmission technologies
tions provider, is offering
to create a fully integrated, IP-based, intelligent
more choice for mission-critical monitoring of assets,
network. FluidMax can be adopted as a network
activities and infrastructure with the Christie Entero
backhaul to interconnect with the different com-
LED 70-inch video wall display cube and TVC-1700
ponents of the smart grid, such as substations,
video wall processor. The Entero LED 70-inch HD
transformers, synchrophasors and distributed gen-
rear projection system, along with the new Christie
erators, and for home-area network applications
video wall processorn, offers users exceptional quality,
such as metering data collection. Fluidmesh is a
versatility and low maintenance. The systems zero-
wireless vendor capable of providing a one-box
maintenance design provides reliability and long life. It
wireless system that includes point-to-point, point-
also features Christie ArrayLOC automatic brightness
to-multipoint and mesh architectures operating at
and color-balancing technology that monitors and
900 megahertz in nonline-of-sight scenarios.
adjusts color and brightness levels across the video
Fluidmesh Networks
wall in real time. This significantly reduces downtime
due to recalibration requirements typically needed

with other systems and makes the system scalable
from small to large installations. The Christie TVC-1700
Pavement Wheeled Excavator
is designed to meet increasingly complex and diverse
Weighing 51,216 pounds, the XL 5300 III by
control room environments. Based on Windows 7 and
Gradall Industries is the largest model in the Gradall
running on 64 bit OS architecture, it supports single-
collection of excavators with wheeled undercar-
and dual-link DVI and video inputs.
riages designed for high-productivity jobs on every

terrain. The XL 5300 III has a maximum reach of 33
Christie Digital Systems USA Inc.
feet, 10 inches
GO TO ____________
(10.3 m) at grade
and a maximum
dig depth of 24
Reduce Outages, Improve Reliability

Greenjacket, a solution for electrical cover-up on
feet, 7 inches
substations in both the electrical utility and industrial
(7.5 m). Its rated
sectors of the marketplace, has been named AltaLinks
bucket breakout force is 25,405 pounds, and the
preferred solution for reducing substation wildlife
rated boom force is 24,941 pounds. Sure-footed
contacts and improving overall transmission system
on and off pavement, the rubber tire undercarriage
reliability. AltaLink credits Greenjacket for its 95 per-
will not damage concrete or asphalt surfaces while
cent reduction in bird and other wildlife outages since
providing a stable work platform. The telescoping,
the covers have been installed in 2006. Greenjacket
full-tilting boom can precisely position buckets,
involves a technology that allows the company to
hammers, grapples, shears and other attachments
customize covers for a complete fit over all risk points.
without losing power.
Honeywell
Gradall Industries
GO TO ____________
GO TO ____________
62 | July 2012
www.power-grid.com
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DistribuTECH 2013: The industrys most comprehensive

conference on automation, smart grid and T&D
engineering. Jan. 29-31, 2013, San Diego. Phone
918.832.9265 http://distributech.com
PRODUCTION MANAGER
Daniel Greene
918.831.9401 danielg@pennwell.com
ADVERTISING TRAFFIC MANAGER
Dillon Waters
918-831-9454 dillonw@pennwell.com
SALES DIRECTOR &
INTERNATIONAL SALES MANAGER
Candice Doctor
918.831.9884 fax 918.831.9834
candiced@pennwell.com
WEST REGIONAL SALES MANAGER
Shawn Sejera
918.831.9731 fax 918.831.9834
shawns@pennwell.com
NORTHEAST REGIONAL SALES MANAGER
Shaun Jameson
918.832.9291 fax 918.831.9834
shaunj@pennwell.com
SOUTHEAST & MIDWEST
REGIONAL SALES MANAGER
Tom Leibrandt
918.831.9184 fax 918.831.9834 toml@pennwell.com
CHINA & HONG KONG SALES MANAGER
Adonis Mak
ACT International
Unit B, 13/F, Por Yen Building
478 Castle Peak Road, Cheung Sha Wan
Kowloon, Hong Kong
+86.138.252.678.23 fax +852.2.838.2766
adonism@actintl.com.hk
ISRAEL SALES MANAGER
Daniel Aronovic
Margola Ltd.
1/1 Rashi Street, Raanana 43214 Israel
phone/fax +972.9.899 5813
aronovic@actcom.co.il
DISTRIBUTECH EXHIBIT &
SPONSORSHIP SALES MANAGER
Sandy Norris
918.831.9115 fax 918.831.9834
sandyn@pennwell.com
REPRINTS, CLASSIFIEDS ACCOUNT MANAGER
Glenda Harp
918.832.9301 fax 918.831.9776
glendah@pennwell.com
ALCATEL-LUCENT .................................35
AMERICAN WIND
ENERGY ASSOCIATION ........................37
AT&T WIRELESS SERVICES ...................31
Benchmarking the Performance of Electric

and Gas Distribution Utilities
http://euci.com
Chicago
8
Wi-Fi Smart Energy Forum

http://wi-fi.org
Rosemont, Ill.
DISTRIBUTECH 2013 ..............................59

DISTRIBUTECH BRASIL 2012.................45
DOW ELECTRICAL &
TELECOMMUNICATIONS .....................25
DUPONT DE NEMOURS .........................5
FLIR ..........................................................27
FREEWAVE TECHNOLOGIES .................3
Esri International User Conference

http://esri.com
San Diego
CEO OF THE YEAR AWARDS ...............57
ELECTRIC LIGHT & POWER

EXECUTIVE CONFERENCE 2013..........41
ELSTER ................................................... C4
ENERGY NEWS WRAP-UP.....................39
ESRI ..........................................................11
23 27
22 23
Transmission Siting:
Planning, Permitting and Construction
for Sensitive Environments
http://euci.com
Portland, Ore.
10 13
SEPTEMBER
PUBLISHER
Michael Grossman
918.831.9500 michaelg@pennwell.com
3M ...........................................................C2
HD ELECTRIC CO...................................15
HUBBELL POWER SYSTEMS INC .........51
HUBBELL POWER SYSTEMS INC ........ C3
Solar Power International

http://solarpowerinternational.com
Orlando, Fla.
25 27
DistribuTECH Brasil
http://distributechbrasil.com
Rio de Janeiro
25 27
HYDROVISION Brasil
http://hydrovisionbrasil.com
Rio de Janeiro
ITRON .....................................................6-7
29 2
OSMOSE UTILITIES SERVICES INC ......43

PACIFIC WOOD PRESERVING ..............33
POWER ENGINEERS ..............................19
POWERGRID INTERNATIONAL
WEBCASTS .............................................42
POWERSENSE ........................................17
PROJECT OF THE YEAR AWARDS .......23
SCHWEITZER ENGINEERING
LABORATORIES..................................1, 29
TELVENT USA INC.............................12-13
OCTOBER
National Electrical
Contractors Association Convention
http://necaconvention.org
Las Vegas
LOCKHEED MARTIN................................9
30 3
OCTOBER
Utilimetrics Autovation 2012

https://utilimetrics.org
Long Beach, Calif.
2
OCTOBER
1421 S. Sheridan Road, Tulsa, OK 74112

P.O. Box 1260 : Tulsa, OK 74101
918.835.3161, fax 918.831.9834
http://pennwell.com
AUGUST
ADVERTISER. ............................. PG#
J U LY
CALENDAR
GridWeek
http://gridweek.com
Washington, D.C.
10 13
International Linemans Rodeo & Expo

http://linemansrodeokc.com
Kansas City, Mo.
22 25
ICS Cyber-Security Conference 2012

http://icscybersecurityconference.com
Norfolk, Va.
31 2
NOVEMBER
World Energy Engineering Congress

http://energycongress.com
Atlanta
July 2012 | 63
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PERSPECTIVES
BY RON CHEBRA, DNV KEMA
You Have the Data, Now What?

Recently I had some interesting discussions with
a few power utilities about their advanced metering
infrastructure (AMI) systems and how they will use the
15-minute consumption interval data theyve collected.
Some utilities are gathering a mound of information,
but they are uncertain about who, when and how this
data will be used to optimize operations and what
information will be used for analysis, as well as billing.
Before I go down that path, let me convey a brief
anecdote. About 17 years ago, my brother-in-law, Walt,
owned and operated a dry cleaning operation. He
invested time, energy and money in an innovation
he believed would provide great value to him and his
customers. He installed a bar-coded system that tracked
each garment through all cleaning stages. Each operator
had a pen-shaped, battery-operated bar code reader and
was instructed to wand every item through the process:
as an item was sorted, pre-spotted, placed in the cleaner,
put into the dryer, passed through inspection, handed
over to pressing, sorted, bagged and finally put on the
rack. Within a few weeks, Walt realized a few things:
All this data collection took extra time and added
complexity to the existing process.
He began to accumulate mounds of data.
Processing (486 processors) and storage (20 MB)
were a bit pricey. (This was 1995.)
There were gaps in the data. (Some operators forgot
to wand garments at their stations.)
He had a lot of data, but he needed valuable
information.
Customers didnt care what stage of the process
their garments were in; they wanted to know if their
clothes were ready.
The data could be used for time-motion studies and
process optimization, but Walt needed more time and
resources. So he stopped collecting intermediate data
that didnt provide value and focused on what was
important. Is there a lesson to be learned? I am a strong
advocate of collecting interval data, but I ask: What,
when and how will this collected data be used?
It is useful for customer service representatives to

have ready access to time-stamped, interval data
because it enables better customer service.
Conducting load research anywhere without having
to deploy additional resources also is valuable.
Using time-synchronized, consumption data for
transformer load profiles can help optimize assets.
Leveraging information to balance production with
use has great potential.
Gathering granular consumption information in the
middle of the night can help identify other problems
such as water leaks and losses.
Many applications are emerging, and we can imagine

hundreds of others once we sort the possible data
analytics that extract value from AMI systems. But being
a bit of a pragmatist, I have some tough questions:
Are we collecting data just because we can, not
because we need it?
Is there a value target defined to justify the
cost of the collection investment (bandwidth,
processing, etc.)?
Who will be responsible for extracting the value
that AMI provides?
The next wave of innovation in AMI might not be
technology-based; more than likely it will be founded in
meaningful analytics.
By the way, back when my cell phone bill was based
on call time and duration, I was one of those people who
looked through 18 pages of bill details to pick out the
high-cost calls to figure out who I called and why it cost
so much. Will we find most utility customers doing this?
I want to thank Walt, the dry cleaner, for the
practical lesson in data acquisition and data mining.
His bar-coded system determined garment sorting
needed improvement and he could offer more accurate
dry cleaning services.
Ron Chebra is vice president of management and operations consulting at
DNV KEMA Energy & Sustainability.
64 | July 2012
www.power-grid.com
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MISSION-CRITICAL
PROTECTION
HPS answers Aug. 28
at 2:00 PM EST.
Join us August 28 for the third installment of
our 3-part webinar series to learn why
CHANCE cutouts perform to a higher standard.
CUTOUT
TECHNOLOGY | EXPERIENCE | QUALITY
Register today at: hubbellpowersystems.com/cutout

10-312
Never Compromise
TM
w w w. h u b b e l l p o w e r s y s t e m s . c o m
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Interoperability
delivered.
With our REXUniversal Platform, EnergyAxis and

Smart Grid Solutions in DA-AMI Convergence,
only Elster provides the most interoperable
technology that enables utilities to enhance
consumer satisfaction, improve asset
management, and increase energy efciency.
www.elster.com
Contact Elster to learn more at: marketing@us.elster.com or www.elster.com

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For the industr y s c areer- minded profe s sionals
THE
SUMMER 2012
Big Crew
Change:
OPPORTUNITIES
AND CHALLENGES
Using Blended Learning

for the Big Crew Change
Knowledge Transfer
Building a High Performance
Workforce with a New Type
of Corporate Leadership
Young Professionals in Energy:
New Networking in an Old Industry
Keeping in Touch with Former
Employees Ensures Access
to Valuable Talent Pool
When Leaders Retire: Ready the
Bench Through Succession Planning
Energized about India?
A supplement to PennWell public ations
w w w.P ennEnerg yJOB S .c om
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______________
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SUMMER 2012
A P E N N W E L L P U B L I C AT I O N
EDITORS LETTER
Mind the Gap

Dorothy Davis, PennWell
3
5
The Big Crew Change: Opportunities and Challenges

Dorothy Davis, PennWell
Building a High Performance Workforce with a

New Type of Corporate Leadership
Frank Lloyd, PhD, Associate Dean of Executive
Education for the SMU Cox School of Business
Young Professionals in Energy:

New Networking in an Old Industry
Hilton Price, PennWell
TRAINING INSIGHTS
Using Blended Learning for the Big Crew

Change Knowledge Transfer
Bon Crowder, Learning and Communications Strategist with Obsidian
HR INSIGHTS
When Leaders Retire: Ready the Bench

Through Succession Planning
Chris Wright, Ph.D., President and CEO of Reliant
10
Dorothy Davis, Senior Editor

dorothyd@pennwell.com
Hilton Price, Editor
hiltonp@pennwell.com
Meg Fuschetti, Art Director
megf@pennwell.com
Daniel Greene, Production Manager
danielg@Pennwell.com
MARKET INSIGHTS

Sheila H. Khatri Esq., President of Moti International
12
Stacey Schmidt, Publisher

staceys@pennwell.com
Tommie Grigg,
Audience Development Manager
tommieg@pennwell.com
RECRUITERS PRACTICUM
Keeping in Touch with Former Employees

Ensures Access to Valuable Talent Pool
Cathy Clonts, Alumni Web Services
PennWell Corporation
1421 South Sheridan Road
Tulsa, Oklahoma 74112
918 835 3161
PennWell.com
w
ww.PennEnergyJOBS.com
___________________________________
Adver tiser s
Index
Recruitment Advertising Sales:
Chevron ...................................................................................... Inside Front Cover

PennEnergy Research .......................................................................................... 4
PennEnergy Books ............................................................................................. 11
PennEnergyJOBS.com ........................................................................... Back Cover
Brent Eklund
Petroleum Account Executive
720.535.1264
beklund@pennwell.com
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Editor s
Letter
Mind the Gap
ITH the energy sectors poised to have more than half of its workforce retiring
in the next decade, the industry seems to be faced with more questions than
answers on what lies ahead. While there is no denying the growing gap between those
on the cusp of retirement and those entering the workforce, not everyone is sold on the
idea that this looming generational shift will have as strong an impact on the industry
as predicted. My opinion is that either way it is always wise to mind the gap, lest you
find yourself in it.
This issue of Energy Workforce is dedicated to taking a look at whats ahead through
insights from those engaged in our industry today. We open our examination of The
Big Crew Change with a look at where things stand on page 3.
Next we examine what the next generation values in an employer. Learn what it
takes to build a high performance
workforce by understanding what
todays top candidates are seeking in
the companies eager to recruit them
on page 5.
For those entering the workforce,
we highlight one of the most
respected and established non-profit
networking and career development
resources for the energy industry,
Young Professionals in Energy, and how they view the pending change, on page 7.
Looking towards establishing tomorrows leaders, read about the benefits of creating
a formalized succession plan on page 9 and using blended learning to maximize
knowledge transfer on page 8.
While planning for the next generation of leaders, companies are also finding value
in tapping veteran employees through company-wide networking tools to round out
their talent pools. Find out more on page 12.
Finally, we highlight tips and tactics to help companies exploring India as a growth
strategy in meeting global demand on page 10.
No matter how you are engaged in energy, PennEnergy is your resource for today,
tomorrow and beyond.
Carpe diem!
This issue of Energy Workforce is

dedicated to taking a look at whats
ahead through insights from those
engaged in our industry today.
Dorothy Davis
Summer 2012 | FOR JOB OPPORTUNITIES, VISIT www.PennEnergyJOBS.com | EnergyWorkforce
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The Big Crew Change:

Opportunities and Challenges
By Dorothy Davis
However, many of these hundreds-ofthousands of employees are nearing the

ends of their careers. Analysis from information and research firm IHS shows the
average age of the oil and gas industrys
professional workers rose from 43 years
old at the start of the new millennium to
50 toward the middle of the decade. By
this year, that peak was expected to move
as high as 60 years old.
Retirements without replacements
Americans are at least

dimly aware that the population of the country is steadily
aging on the whole, with the massive
baby boom generation reaching its elder years. And most people understand
that the change could have dramatic
impacts on American politics, economics and even culture, from rising
Medicare costs to even stronger voting
strength for the elderly.
One aspect of the upcoming generational shift that is often overlooked
by people who are not directly affected,
however, is the impact that this aging population will have on skill- and
knowledge-based industries around the
OST
country. Chief among these industries

is the energy sector, which relies heavily on a variety of very specific science
and engineering professionals.
Big energy going grey
According to the Bureau of Labor Statistics, the oil and gas extraction industry employs around 193,000 people
across the U.S. The energy sector as
a whole tops that by a wide margin,
with utilities alone employing more
than 560,000 people, without counting
competitive electricity providers, energy system manufacturers or the more
local positions created in the burgeoning green energy economy.
As the industry average continues to

near retirement age, most companies
are bracing to see around half of their
professional staff leave within the next
decade, what many have dubbed the
Big Crew Change.
A report from Schlumberger Business Consulting, the eighth annual Oil
& Gas HR Benchmark Survey, found
that the oil and gas industries will be
required to replace more than 22,000
top geoscientists and petroleum engineers by 2015. The report is actually
significantly more positive than recent
estimates about the potential for universities to provide sufficient graduates to
fill these open positions, but it does note
that the sector will ultimately see a loss
of experience, if not a decline in overall
numbers. In particular, the 2010 SBC
report projects a limited supply of graduates from quality institutions.
But the Big Crew Change is certainly not restricted to oil and gas exploration companies. Manufacturers
like Ford and Caterpillar are facing
shortages of machinists and other specialists, but the BLS points out that
the energy industry as a whole is dealing with an aging workforce. In 2008,
about 37 percent of the electric power
generation, transmission and distribution industries were between 45 and 54
years old, compared to 23.4 percent for
the national workforce.
EnergyWorkforce | FOR JOB OPPORTUNITIES, VISIT www.PennEnergyJOBS.com | Summer 2012
3
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Industry growing as shift looms
Despite the ongoing concerns with replacing the huge number of retiring
workers, the energy sector has already
seen staggering growth in the past few
years. NewGeography reports an analysis from Praxis Strategy Group shows
that jobs in the oil and gas industries
along with mining and quarrying grew
as much as 58.5 percent from 2006 to
2011. Even the healthcare and education
sectors paled in comparison, achieving a
very respectable 11 to 12 percent growth.
Utilities also added their fair share
of positions, growing 3.4 percent. And
neither of these numbers even take into
account the surging renewable energy
sectors across many parts of the U.S.
These positions include some of
the highest-paying jobs in the country
as well. The BLS Occupational Outlook Handbook notes that petroleum

engineers earned a median of more
than $114,000 in 2010, ranking as the
highest-paying engineering position
in the country. Mining and geological
engineers likewise ranked highly with a
median salary of nearly $83,000. Other
key engineering and technician roles
ranged from the mid-$40,000 to the
high $60,000 range, but NewGeography notes the utilities sector actually
reported even higher average annual
earnings than the oil and gas sector.
Consequences as well as opportunities
Despite the potential for younger workers to establish themselves in growing

industries, though, there are serious concerns about the impact worker shortages
could have on the economy. A substantial majority of the surveyed national (70
percent) and international (60 percent)
oil companies reported delays in some
projects due to staffing problems.
Oil and Gas Journal also notes that
the majority of new geosciences and
petroleum engineering graduates are
coming from Russia and Asia, particularly China. As more trained professionals come from abroad, many companies
will need to adopt a more international
hiring and recruiting strategy. Particularly as the oil and gas industries come
to rely on more technically complex
extraction techniques like hydraulic
fracturing and deep sea drilling, many
companies will need to proactively address their approach to hiring to maintain consistent growth.
Dont miss another
CAREER OPPORTUNITY
Top Power Industry Employers are
RECRUITING
NOW!
with PennEnergy Jobs
Visit PennEnergyJobs.com to UPLOAD YOUR RESUME to the database today.
FREE CONFIDENTIAL ALL JOB TYPES & EXPERIENCE LEVELS
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Building a High Performance

Workforce with a New Type
of Corporate Leadership
By Frank Lloyd, Ph.D.
the energy industry continues

to deal with the challenge of the
the big crew change individual
oil and gas companies who are hiring
would do well to consider the characteristics that todays top candidates seek in
career opportunities. According to experience working with corporate recruiters
who wish to hire MBA millennials, the
best prospects are asking three questions
of prospective employers:
Are you sustainable?
Are you diverse?
Are you flexible?
S
The first question pertains to environmental and social impact more than
business prospects. The second question is about organizational culture as
well as demographics, and the third is
about willingness and ability to accommodate lifestyle balances.
In addition to these questions, the
emerging generation is looking for
employers who are committed to continuous employee development: ongoing feedback, recognition and challenging assignments with a path to
positions of accountability.
FRANK R. LLOYD, Ph.D.,, is Associate Dean off Executive Education fo

f r the
Cox School of Business at Southern Methodist University. He is responsible

for programs for executives, managers, and working professionals. He joined SMU from the
Thunderbird School of Global Management where he served as Vice President of Executive
Education. Prior to that, Dr. Lloyd was a human resources management executive with
Gene al Moto
General
Motors.
s.
Students at the Cox School attending undergraduate, graduate, and executive development programs are attracted to the energy industry because of
its financial success, its technological innovations and its global scope.
The school is adding programs to meet
growing student interest.
However, to capitalize on this newly
kindled interest in the energy industry,
employers should consider embracing
a new type of corporate leadership that
rewrites the current leadership script in
a way that accommodates the demands
of a new generation of talent.
This new leadership model is founded on the pillars of purpose, ethics, and
value for multiple stakeholders. The
new paradigm demands an expanded
set of leadership capabilities at all firm
levels. Firms and leaders who embrace
this new paradigm have the following
characteristics.
PURPOSE. New paradigm leaders articulate the organizations larger purpose
and focus on organizational rather than
individual success. Recent MIT research
indicates that top talent is more incented
by a companys long-term focus on purpose than even a cash bonus.
ETHICS. They communicate truthfully
and with transparency, maintain relationships based on reliability and reciprocity in a word, trust and stand up
for their beliefs while providing channels for others to constructively address
conflicts between stated and enacted
values in the organization.
MULTIPLE STAKEHOLDERS. They strive
to align the organizations multiple stakeholders interests, including
employees, and get them moving in
the same direction.
We call this leadership paradigm
fourth dimension because it asks
leaders to:
Understand themselves and how
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their values and behavior styles

appear to others in the organization,
impacting their ability to fulfill their
role as leaders.
Discern values and styles in others
and use that understanding to motivate others and form effective teams.
Communicate organizational values
and strategies to large groups of people, get them moving together, and
lead organization change.
Represent the organizations larger
External: Multiple
Stakeholders and
Community
Others:
Interpersonal
Relationships
The Leader:
Aligning and
Balancing
the Four
Self: Values,
Styles
Organizations: Purpose
and Culture
purposes outside the organization

among various stakeholders.
These three elements on which fourth
dimension leadership is based must
guide actions and yield results. They
enable the firm to address environmental
and social impact, organization culture
and climate, and sensitivity to individual
differences. They serve as motivators for
employees and a compass for the longterm direction of the company.
Business schools are already pursuing new initiatives that develop fourth
dimension leadership skills as evidenced
by emerging curriculum trends:
Proliferation of social entrepreneurship courseware.
Curriculum revisions that emphasize ethical leadership.
Intentional use of community service as a teaching tool.
Growing emphasis on corporate
responsibility and sustainable value

creation.
Increasing number of businesses
who express social purpose as a key
element of their brand promises to
prospective employees.
By committing to do likewise, oil and
gas companies will attract more of the
best business school students.
Of necessity, energy firms have long
been among the most engaged within communities and the political entities with whom they operate. However,
as the complex global industry matured
in the 1960s beyond the founding generations of explorers, successive industry
challenges made it difficult to embrace
leadership behaviors beyond those
focused on production, efficiency, and
profits. New paradigm leadership is a
way to regain behaviors needed to gain
trust and respect from a wide range of
stakeholders, including current and prospective employees.
Big payoff
The payoff for the energy industry to

develop new paradigm leaders is potentially huge. New paradigm leadership
can attract the best investors. A 2007
study published by the University of
Pennsylvania Wharton School of Business study found that 30 companies
managed to optimize stakeholder value rather than shareholder value outperformed the S&P 500 at three-, five, and 10-year intervals up to 700%--and
the companies examined by Jim Collins in Good to Great. In a subsequent
book, Built to Last, Collins and Jerry
Porrasshow that organizations driven by
purpose outperformed the general market 15:1 and outperformed comparison
companies 6:1.
Further, SMU Cox research indicates that:
Trust and integrity of leadership are
key factors in moving employees to

higher levels of engagement, and
firms with higher levels of engagement perform better in terms of
customer loyalty, employee retention, productivity, quality, and safety (Miguel Quinones, Making the
Strategic Transition).
Positive impression of a companys
ethical culture increases employee engagement; misconduct erodes
it; engaged employees reduce ethics
risk as they are more likely to report
suspected unethical conduct (Maribeth Kuenzi, on Ethics Resource
Center Studies, in Research on the
Frontiers of Leadership.).
The biggest payoff for a new leadership
paradigm in the energy industry could
be its effect on new talent. If the industry were better known for its new paradigm its larger purposes, its ability to
align the interests of multiple stakeholders, and its ethical climate it would do
better in attracting and retaining talented young people, especially those
of the millennial generation. The new
paradigm promotes sustainable operating practices, recognition of societal
interests beyond those of the firm, and
an organizational climate that permits
alignment of diverse employee interests around common goals and a larger purpose. The new paradigm also
promotes trust-based and transparent
communication needed to give the candid feedback and honest recognition
that fuels employee development and
engagement.
Although some energy companies
have a way to go in terms of moving
from an interesting opportunity to a preferredor even esteemed--employer,
an energy industry guided by new paradigm leadership can attract the best talent as well as the best customers and best
investors and thus face a bright future.
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Young Professionals
in Energy: New Networking
in an Old Industry
By Hilton Price, PennWell
called The Big Crew Change,

and it makes sense were talking
about it so much in 2012, because
it sure sounds like doomsday is upon
us. The industrys natural turnover is
about to be complicated by an abnormally high number of potential retirees,
amongst them some crucial decisionmakers. This has many people closely
watching the industry, and for young
job seekers, looking for opportunity.
The young energy professionals
entering the industry bring a vastly
different set of abilities and familiarities than the generation that is leaving.
From calculators to smart phones and
ledgers to laptops, this incoming crew
has a new way to do things. But the latest
crop of young job seekers has one thing
very much in common with their retiring counterparts. Aiding them in their
job hunt is a skill that, despite some
recent high-tech innovations, is very
much a classic technique: networking.
Young Professionals in Energy is a
non-profit group helping the next generation of energy professionals find their
place in the industry. The group mixes classic face-to-face networking meetups with the latest technological tools
to help job seekers find the positions
theyre looking for. With 20 chapters
worldwide, and a membership boasting
more than 20,000 job seekers, YPE has
established itself as a reliable resource.
Nick Cooper is President of YPEs TulTS
sa branch. Speaking with PennEnergy

Workforce about the pending Big Crew
Change, he emphasized the opportunity
it presents for the next generation.
For 25 years, there has not been
a demand for Petroleum Engineers,
Geologists, Landmen, etc. Now, the
majority of these professionals are in the
twilight of their careers and the industry is booming. There is a huge demand
with short supply. This has created a
huge opportunity for young people to
rapidly advance in some companies.
Cooper says positions in Petroleum
Engineering and Geology are in highest demand, commanding salaries sure
to turn young job seekers heads.
Petroleum Engineers can make
over $100,000 per year straight out of
school, even with subpar grades.
Energetic self-starters are having the
best success in securing new positions,
and even where a position may not be
available yet, some eager job seekers
are already working to be noticed.
In my opinion the gap that exists in
the oil and gas industry is a great opportunity for my generation. Never before
have we seen such a large disconnect in
one industry, said Cooper. There are
thousands of small independents who
dont have someone who can take over
the family business. I am already seeing
young people in the industry trying to
position themselves to take advantage of
opportunities that might come up.
One way young people are staying

competitive for those opportunities is
through supplemental education. Specifically, it can prove extra beneficial
for students on other career paths hoping to steer their way into the energy
industries, but Cooper says supplemental education is for anyone looking to
round out their knowledge.
I would recommend accountants
and financial people to take some sort
of oil and gas course work just so they
have knowledge of what they are looking at, Cooper said. The same goes
for people with technical degrees, they
should take some sort of business class.
YPE also works with other industry and networking organizations.
The Tulsa branch has partnered with
the Tulsa Young Professionals, as well
as the Tulsa Association of Petroleum
Landmen and Oklahoma Independent
Producers Association. Besides extending the networking reach for YPEs
core demographic, this positions the
group to point job seekers of all ages in
the right direction.
Besides traditional partnerships and
meet-ups, YPE has seen the emphasis
of social networking on the modern
job hunt. Specifically, Cooper points to
LinkedIn as a vital tool for job seekers.
LinkedIn is increasingly becoming
a must-have for people in the industry, he said. Every day more and more
recruiters are using this as an avenue to
search for employees.
YPEs membership features employees of the worlds largest power and
petroleum companies, and stretches to
positions outside the traditional energy sectors.
Membership is free; the organizations costs are covered through corporate donations. More information on
YPE is available through the organizations website, www.ypenergy.org.
7
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Insights
TRAINING
cises that they can vote on during the

live event.
Using Blended Learning

for the Big Crew Change
Knowledge Transfer
By Bon Crowder
ITH two
generations leaving
the workplace and two generations coming in, theres
never been a bigger and more challenging crew change in our industry. Nows
the time to maximize training!
Learning, and thus teaching, is different for each generation. And this
places us uniquely in the position of
trying every type of training, simultaneously. Sometimes in a good way. And
sometimes not.
Blended learning combines the
learning and teaching styles of all generations to bridge the knowledge gap. It
provides a variety of learning opportunities at the right times so a learner will
retain the most information. It involves
various tools, styles and environments.
Blended learning takes elements from
face-to-face lectures and activities and
mixes them with the convenience of
computer based interaction.
Although blending learning takes
its name from using various media, the
essential element is timing. Even if you
never change your current plan of instruction for your training, you can increase retention through pre-work and
post-work.
Consider these four steps to learning
when designing your next training event.
EXPOSURE is the fi rst step to learning.
Exposure can be in the form of lecture,

training video or observation. Often its
also on-the-job training whether the
proper processes were taught or not.
The learner gets just enough information to start thinking about the processes . You can start the learners exposure to your material in the classroom
or through some pre-work. It can be in
the form of a handout to read before the
course or a small web-based training
video or module.
ACTIVITY enhances exposure.
Any activity following the exposure enhances what was just shown. This can
be in form of exercises, lab work or field
simulations. Activity is anything connected to the exposure that allows the
learner to take charge. Theyre usually
hands-on and engaging.
You can do these multiple times during a lecture class. In a web-based training module, your designers can build
in places where the learner can participate. This could be a drag and drop
interaction, offline work that requires
online results reporting or participation
in an online forum.
Even webinars can engage learners
this way with offline independent exer-
BON CROWDER is a Learning and Communications Strategist with Obsidian in Houston,
Texas. www.Obsidian-Edge.com
www.Obsidian Edge.com
SETTLING allows passive learning.
The next step to learning a task or

process is allowing the subconscious
to work. The brain does this all on its
own. In a training session, this can
come in the form of lunch breaks,
weekends or leaving for the day. For
longer term training sessions, for example an 8-week course that meets on
Saturdays, there is ample settling time.
Settling gives the brain a chance
to process and sort the information. If
there is no time for this, the retention
is minimal. You can force settling by
giving people longer breaks and asking
them to go somewhere else for lunch.
The change of scenery prompts the
brain to engage with the material differently, thus sorting it more efficiently.
RE-ENGAGEMENT of the material solidifies it.
Re-engagement can show up as any

situation that has stress or heightened
emotions connected to the learning.
This can be studying for and taking a
certification exam or the initial experience on the job that needs the new
knowledge. Most of adult training lacks
exams, so re-engagement often shows
up when the learner handles a real life
situation for the first time.
The learner at this point will attempt to modify conscious thinking to
best fit with what the subconscious has
done during settling. The added stress
will allow them to connect with what
theyve done better as the emotions
induce a different type of learning.
Re-engagement should be timely so
that the learner still retains the information he needs and doesnt get frustrated.
To help your employees retain information better, make sure they have lots of
practice after a training session is over.
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Insights
HR
When Leaders Retire:

Ready the Bench Through
Succession Planning
to forecasters, in
the next 10 years approximately
3 out of 10 workers will be retiring. This means organizations need
to be getting serious about succession
planning. According to a global survey
of over 1300 companies by Korn/Ferry,
only 35% of companies have a formal
succession plan. Organizations who fail
to create a succession plan will be left
scrambling to fill leadership positions
and competing fiercely for leadership
talent with other companies in the same
boat. The proactive strategy is to begin
planning now and to create a formalized succession plan. In this two part
series, I will share some practical strategies to create a succession plan and provide suggestions to help you have the
succession planning conversation with
your companys top leadership.
What is succession planning, really?
In The Leadership Pipeline, Charran,
Drotter and Noel define succession
planning as, perpetuating the enterprise by filling the pipeline with highperforming people to assure that every
leadership level has an abundance of
these performers to draw from both
now and in the future (pg. 167).
In laymans terms, succession planning involves identifying
potential leaders withCCORDING
in your company that could one day

fill critical leadership roles and then
investing in their development, so that
when the day comes, they are ready
to step into these critical leadership
roles. The only way to create a succession plan is to start the conversation
with key leaders in order to help them
understand the importance of succession planning for the long-term sustainability of the company. According to Dr. Betty Bailey, below are 6 key
questions that will help any HR leader
start the succession planning dialogue
with C-Level executives:
Which segments of the workforce create value for which our
company is most rewarded in the
marketplace?
Which areas of our company will be
most impacted by impending waves
of retirement?
In what areas/jobs is the talent market heating up (e.g. demand will
outrace supply?)
What skills will we need over the
next 3-5 years that we currently do
not possess?
What is our turnover in business
critical areas/jobs?
Are we actively developing talent
portfolios and workforce plans that
will help us to understand and com-
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municate the financial consequences of talent decisions?

An effective succession plan must be
linked to the vision and strategy of the
company and must include senior level
executives in the process. These questions will help start you down the path
of succession planning with your leaders.
The definition of succession planning is to ensure the sustainability of
your company by filling your pipeline
with high performing employees to
ensure that leadership at every level has
high performers to move into key positions when leaders leave or retire.
Step 1: Defining Talent Needs
The outcomes associated with this

step include clearly defined position
requirements that have been documented and enable you to pool similar positions. Based on the position
requirements the company will have
defined the competencies and skills for
today and the future.
Step 2: Assessing Current
Bench Strength
The outcomes associated with this step

include identification of potential successors, defining the qualifications of
individuals in your talent pools and creation of personal talent profiles for all
individuals.
Step 3: Create Succession Plans &
Begin Development of Successors
The outcomes associated with this step

include specific development plans for
potential successors to strengthen skill
and competency gaps.
By following this blueprint, your
company will be well on its way to
establishing succession plans for its key
leaders and making succession planning a part of your companys talent
management strategy and culture.
9
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MARKET
Insights
4. Dont skimp on the interview. It is

By Sheila H. Khatri Esq., President Moti International
NDIA is energy starved. Energy is a

limiting factor in how fast its economy can grow, making the energy sector a huge potential growth opportunity.
And a number of energy firms are eyeing
India as a lucrative market where creative projects can come to fruition. But
there is a number of obstacles companies
face in India, and there have been several energy firms that have either pulled
out of the market or are scaling back.
One challenge is that energy firms face a
significant workforce shortage in India, a
land of 1.2 billion people.
The shortage exists primarily in finding technical skills. There are few places where foreign firms can cherry-pick
technical talent, often only a handful
of government organizations. To deal
with the shortage, many Indian companies are choosing to create institutions
where they train their own talent. For a
foreign firm, setting up a school and a
business in India may not be an option.
If you are exploring India as a growth
strategy, expect to make an investment
in your workforce. Also, when building your workforce, be aware there is
a large cultural gap in doing business
between the U.S. and India. Based on
my experience in India developing the
State of Marylands Trade Office staff
and creating an incubation service for

U.S. companies seeking to do business
in India, Ive compiled 9 workforce tips
and facts to keep in mind as you strategize an India market-entry plan.
1. Build your brand in India before
you ramp up your workforce. Brand
recognition helps if you need to build
a workforce. Top people want to work
for solid companies. If you dont have
brand recognition in India, expect to
pay high salaries.
2. Invest time in hiring your top people. Getting good top people is important, because influential people often
bring their staff with them when they
switch jobs. Employees tend to follow
good managers.
3. Go to the workforce. Research the
universities that have programs with
the skill sets you need most and establish your operations as close as possible
to your talent pool. Indias workforce is
young, so expect to provide in-house
training of technical and soft skills.
Beware that many young professionals chose to move back home after
reaching personal milestones such as
getting married or becoming a parent.
So setting up your India operations
near your workforce could save you
from high and costly attrition.
SHEILA H. KHATRI is founder and President of Moti International with over nine years of
experience in establishing foreign subsidiaries and helping companies do business abroad.

Before her involvement in the international arena, Ms. Khatri was a practicing attorney
in the area of employment and business law. She holds a Juris Doctorate degree from the
University of Baltimore, School of Law and a Bachelors of Science degree in Finance from the
Unive sity of Ma
University
Maryland,
yland, College Pa
Park.
k. Visit http://motiintl.com fo
for mo
moree info
information.
mation.
10
very important to have multiple rounds of

interviews for all job levels. Include oral
and written components in the hiring
process. Dont rely on just a phone interview. Videoconference is a minimum.
Despite the use of English as the
business language in India, the gaps in
business culture between the U.S. and
India are huge. Many companies have
fallen into this pitfall. Use the interview
process as a multi-faceted filter to ensure a good fit.
5. Be patient and have perseverance. The promise of India is its young
workforce, but dont expect it to behave
maturely. Expect some young hire will
accept your job offer, and then unexpectedly not show up on their first day
because theyve accepted another position for a small salary increase.
Basically, cash is king. Development
programs are nice but not a key factor in
accepting a job or staying with an existing employer for most young employees.
However, an opportunity abroad is important for mid-level management, and
can compensate for perceived deficiencies in salary. A job based in India for 12
months, then abroad for 2 months, could
be an attractive on-site development opportunity for mid-level managers.
6. About salaries. Wages generally
consist of (1) salary; (2) flexible component: may include a home rent allowance, driver allowance, gasoline allowance (if the employee doesnt use it, it
doesnt effect the employees salary but
the employee may be expected to pay
taxes on it); (3) bonus; (4) health care.
Salary hikes in some sectors are expected every year.
7. The perks. Common perks offered by Indian companies include
subsidized or free: transportation to
and from work, breakfast, lunch, Indian
teas and coffees, and liberal policies for
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home emergencies. Home emergencies

can include visits from unexpected out
of town guests.
Typically, Indian companies have
Monday to Saturday work schedules,
but most multinationals have Monday
to Friday hours.
8. A big culture gap. Be clear on what
your India operation is intended to be. Is it
a support center for the parent company or
a true extension of the company in India?
To transfer the corporate culture, officials from the parent company should
set-up the Indian entity and transfer
the corporate culture. But do not send
someone from the parent company only
because he/she is of Indian origin. For
example, the IT guy who has worked
for your company for the past 25 years
may not be the best ambassador for the
parent company. The business culture

in India has undergone a rapid change
from 20 years ago. It is sometimes more
efficient for someone, with no preconceived notions about India, to help your
Indian talent adapt to the parent corporate culture.
9. The title. Titles in India are important. Especially when dealing with a
young workforce.
For example the title: Manager adds
credibility in the marriage market everyone wants this title for social significance.
The above 9 tips and facts highlight some of the common issues and
questions weve heard and dealt with
in helping companies enter the Indian
marketplace. Many of these challenges
can easily be avoided with good planning, patience and perseverance. In
addition, I highly recommend having

an employee on the ground in India in
the very early stages of establishing your
market entry plan. The long-term payoff can be huge.
The most common reasons companies choose not to put someone in India is cost and risk but both of these
reasons can be mitigated by utilizing an
employment surrogate, such as the service my firm offers. A surrogate allows
you to engage a person on the ground as
if they were your employee, but transferring the administrative and legal role to
an entity in India. With such a resource,
your company can generate critical business intelligence, develop strategic relationships and obtain valuable feedback.
The more information you have, the
more likely you will succeed in India.
Books, Books
So Many Books
PennEnergy.com is your best source
for the largest and most comprehensive
compilation of books related to the
energy industry.
Oil & Gas
Power Systems
Renewable Energy
Business Management
Mechanical & Chemical Engineering
Check out over 50,000 energy industry titles at
www.PennEnergy.com
11
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RECRUITERS
Practicum
Keeping in touch with former employees

ensures access to valuable talent pool
Employee networking serves both the company and the community
By Cathy Clonts, Alumni Web Services
HATEVER you call it the

big crew change or the
graying workforce everyone agrees workforce demographics are changing and companies must
have an effective strategy for avoiding
talent shortfalls.
A recent report fromt he CIPD found
81 percent of HR professionals are experiencing hiring difficulties and 73 percent
indicate this is particularly true for specialist skills. Employers requiring technical talent note more professionals are
leaving the workforce than joining.
Weakness = strength
Enter a new idea born of the age-old

adage, your greatest weakness will
become your greatest strength. Exiting employees create a vast and proven
talent bank for employers who are willing to pursue it.
Within the pool of former employees is that new mother who is open
to working flex hours; the retiree willing to mentor a new hire or take on a
short-term project; and the worker who
crossed over to Brand X and discovered
the grass is not always greener.
With former employees like these

in mind, forward-thinking companies
are doing more than letting exiting
employees know the door remains ajar.
Online neighborhoods as solution
Increasingly, employers are engaging in

online alumni communities to stay connected to former employees and track
career growth. When done correctly,
these are win-win websites. A good place
for the company to visit. And a very good
place for individuals who could receive
an invitation back to employment.
In fact, within the oil industry, a number of Fortune 500 companies mine
alumni communities to find and hire
back previous employees who return
with enhanced skills. These companies
realize former employees are uniquely positioned to hit the ground running,
and sourcing talent through an alumni
community is fast and cost-effective.
How it works
According to our experience at Alumni Website Services (AWS), to be a successful place for employee networking
as well as a graying workforce solu-
CATHY CLONTS is president of Alumni Web Services, the largest provider of online
networ
netw
orki
king
ng com
ommu
muni
niti
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es and man
anag
agem
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entt se
serv
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es to th
thee oi
oill an
andd ga
gass in
indu
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Toda
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AWS
S
offers a comprehensive employee networking tool that serves the desires of corporate alumni to
stay connected with one another, provides short- and long-term employment opportunities for
former employees and cost
cost-effectively
effectively supports employers
employers needs for experienced talent.
12
tion, professional online alumni communities must be managed. In addition to socializing, previous employees
should expect to regularly receive
news they care about. On the company side, online networking technologies, such as that offered by AWS, must
be maximized for the business. Benefits include:
A recruitment tool that mines for
experienced talent
Quality referrals from individuals
who know the company
A receptive audience for promoting
brand and image messages
With the data-mining tool, companies efficiently search through proven talent using key criteria like technical discipline, years of experience and
location preferences. Mining within
qualified talent pools is superior to general mining sites like Monster.com and
LinkedIn, which are largely populated
by entry-level talent.
As a pool for obtaining quality referrals, these alumni websites are excellent. Former employees know the company and can recommend someone
who is a good fit.
Through it all, helpful, readerfriendly communications that appear
regularly keep members connected and
drive home the messageAlthough
youve left the company, the door
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Learn Why...
remains open. Messages reach both passive and active job
seekers as demonstrated in the following examples.
A Deloitte alumnus who joined the online community for social reasons noticed an attractive job posting and
returned to the company.
Within the Chevron community a member who had
gone to work for another company was recruited back
after he realized he missed the work at Chevron. Said
the hiring manager, Keeping in touch with people after
they leave is vital.
In short, no longer does the loss of an experienced
employee have to hit a company as hard. With online
employee networks, employers can fill that talent gap
quickly by bringing in experienced, capable former
employees for short-term consulting opportunities and as
mentors to train new hires.
The days of an uninterrupted career with one company are over. Consequently, savvy companies are working
through online alumni communities to maintain win-win
relationships with employees and positively reposition the
revolving door.
For a comprehensive list of petroleum and power
careers in the US and abroad, visit PennEnergy Jobs today.
Cathy Clonts is president of Alumni Web Services,
the largest provider of online networking communities
and management services to the oil and gas industry.
Today AWS offers a comprehensive employee networking tool that serves the desires of corporate alumni to stay
connected with one another, provides short- and longterm employment opportunities for former employees
and cost-effectively supports employers needs for experienced talent.
You Should Post Your Resume

on PennEnergyJOBS.com
PennEnergyJOBS is a member of the PennWell
family, a global media company with experience in
the energy industry dating back to 1910. We know
the energy industry and everyone in it. Our mission
is simply stated: Connect the leading industry
employers with the best talent the industry has to oer.
Let us help you.
FREE Resource!
Job Seeker Tools
Post Resumes/CVs
Search Jobs
Career Ignition Blog
Career e-Newsletter
Energy Workforce Career Guide
Job Tip Videos
Career Fairs
Global jobs for global job seekers
Take the next step to a great career.

Log on to PennEnergyJOBS.com today!
Post. Search. Work!
PennEnergyJOBS.com
13
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Got jobs?
Weve got people.
PennEnergy JOBS is the key to attracting the
energy industry professionals you need to hire to
meet your business goals. Our process puts your
recruitment message in front of the industrys best
talent whether its online, in print, or at an event.
This approach offers you the flexibility to create
custom recruitment advertising campaigns best
suited to meet your budget and objectives.
| Learn More |
Visit: www.PennEnergyJOBS.com
Call: 1-800-738-0134
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