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the
SMART GRID:
an introduction.
prepared for the U.S. Department of Energy by Litos Strategic Communication under contract No. DE-AC26-04NT41817, Subtask 560.01.04
DISCLAIMER
This report was prepared as an account of work sponsored by an agency of the United States Government. Neither the United States Government
nor any agency thereof, nor Litos Strategic Communication, nor any of their employees, make any warranty, express or implied, or assumes any
legal liability or responsibility for the accuracy, completeness, or usefulness of any information apparatus, product, or process disclosed, or
represents that its use would not infringe privately owned rights. Reference herein to any specific commercial product, process, or service by trade
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United States Government or any agency thereof, or Litos Strategic Communication. The views and opinions of authors expressed herein do not
necessarily state or reflect those of the United States Government or any agency thereof.
While it is running.
Full-tilt.
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of a wide range of stakeholders.
Equally critical to the success of this effort is the education of all interested members
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Grid and its implementation.
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its implementation.
TOC
KNOWLEDGE BROUGHT
TO POWER
SECTION FOUND ON
SEVEN How Things Work: Creating the Platform for the Smart Grid. 28
Making it possible for consumers to participate…
EIGHT Progress Now!: A Look at Current Smart Grid Efforts and How They’re Succeeding. 32
From West Virginia to California to Hawaii, a smarter grid is taking shape…
1
SECTION ONE :
INTRODUCTION
Our nation’s electric power infrastructure that has served us so well for so long – also known as “the grid” –
is rapidly running up against its limitations. Our lights may be on, but systemically, the risks associated with
relying on an often overtaxed grid grow in size, scale and complexity every day. From national challenges like
power system security to those global in nature such as climate change, our near-term agenda is formidable.
The first – we’ll call it “a smarter grid” – offers valuable technologies that can be deployed within the very near future
or are already deployed today.
The second – the Smart Grid of our title – represents the longer-term promise of a grid remarkable in its intelligence
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a similar killer app in this space won’t substantially accelerate that timetable?
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on our environment.
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2
A smarter grid applies technologies, tools and techniques available now to bring knowledge to power –
knowledge capable of making the grid work far more efficiently...
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technology in the 80s and 90s.
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will learn about some of them here.
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there will also come a time when you won’t remember life before the Smart Grid.
3
Menlo Park Workshop Pearl Street Station First Street Lamps Metering Compact Fluorescent Light
advancements in electricity
SECTION TWO:
EDISON VS.
GRAHAM BELL:
THE CASE FOR
REVITALIZATION.
advancements in telecommunications
First Telephone Operator Switching Stations Rotary Dialing North American Rotary Dial with Ringer
4 Numbering System and Handset
While this thought experiment speaks volumes about Given that the growth of the nation’s global economic leadership
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familiar with the grid’s basic infrastructure and perhaps even an f]k_\^i`[Àj[\m\cfgd\ek#k_`jZ_f`Z\`jefkjligi`j`e^%
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dazzled as Graham Bell with the technology behind the scenes.
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to human involvement and endeavor that it has alternately (and Everything must work almost perfectly at all times – and does.
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megawatts of generating capacity connected to more than jpjk\dÀjifYljke\jjXe[i\jlckXeki\c`XY`c`kp#m\ip]\nflkj`[\
*''#'''d`c\jf]kiXejd`jj`fec`e\j% the industry ever know about it.
Long Distance Calling First Telecom Satellite Touch-Tone Telephones Cellular Communications Phone Over the Internet 5
Since 1982, growth in peak demand for electricity –
driven by population growth, bigger houses, bigger
TVs, more air conditioners and more computers
– has exceeded transmission growth by almost
25% every year. Yet spending on research and
development – the first step toward innovation
and renewal – is among the lowest of all industries.
SECTION THREE:
THE GRID AS IT
STANDS: WHAT’S
AT RISK?
R&D as a % of Revenue
<m\eXj[\dXe[_XjjbpifZb\k\[#k_\i\_XjY\\e
chronic underinvestment in getting energy where it Electric
Utilities Less than 2%
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]lik_\ic`d`k`e^^i`[\ijZ`\eZpXe[i\c`XY`c`kp%N_`c\ Printing
c`e\jZflij\k_ifl^_flkk_\Le`k\[JkXk\j#fecp--/ Retail
Aircraft &
additional miles of interstate transmission have been Missiles
0% 4% 8% 12%
In short, the grid is struggling to keep up.
PERCENTAGE of REVENUE
6
Based on 20TH century design requirements and having matured RELIABILITY:K_\i\_Xm\Y\\eÈm\dXjj`m\YcXZbflkjfm\i
in an era when expanding the grid was the only option and k_\gXjk+'p\Xij#k_i\\f]n_`Z__Xm\fZZlii\[`ek_\gXjk
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modern concerns… cXZbf]XlkfdXk\[XeXcpk`Zj#Xe[½gffim`j`Y`c`kp¾»X½cXZbf]
situational awareness” on the part of grid operators. This issue
Energy efficiency? A marginal consideration at best when
of blackouts has far broader implications than simply waiting
energy was – as the saying went – “too cheap to meter.”
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Environmental impacts? Simply not a primary concern when g\i`j_XYc\]ff[jgf`c`e^#kiXijZc`^_kj[Xib#Xe[Zi\[`kZXi[
the existing grid was designed. transactions rendered inoperable. Such are the effects of even
a short regional blackout.
Customer choice? What was that?
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controlled infrastructure created largely before the age of POWER SYSTEM FACT
microprocessors that limits our flexibility and puts us at risk
41% more outages affected 50,000
on several critical fronts:
or more consumers in the second half of
savings would equate to permanently eliminating the fuel and The “average” outage affected 15 percent
^i\\e_flj\^Xj\d`jj`fej]ifd,*d`cc`feZXij%:fej`[\ik_`j# more consumers from 1996 to 2000
kff1@]\m\ip8d\i`ZXe_flj\_fc[i\gcXZ\[aljkfe\`eZXe[\jZ\ek than from 1991 to 1995 (409,854
YlcY<[`jfeÀjgi`[\Xe[afp n`k_XZfdgXZkÉlfi\jZ\ekYlcY#k_\ versus 355,204).
country would conserve enough energy to light 3 million homes
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7
SECTION THREE : CONTINUED
THE GRID AS IT STANDS: WHAT’S AT RISK?
8ifcc`e^YcXZbflkXZifjjJ`c`ZfeMXcc\pkfkXc\[.,
million in losses. resource recovery
;fccXijk_Xki\dX`e`ek_\
@e)'''#k_\fe\$_fliflkX^\k_Xk_`kk_\:_`ZX^f
economy rather than “paying the
Board of Trade resulted in $20 trillion in trades delayed.
]i\`^_k¾]fijpjk\d`e\ijZ`\eZp
JleD`Zifjpjk\dj\jk`dXk\jk_XkXYcXZbflkZfjkj are dollars that society can put
the company $1 million every minute.
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K_\Efik_\XjkYcXZbflkf])''*i\jlck\[`eX- _\Xck_ZXi\#Xe[_fd\cXe[j\Zli`kp%
AFFORDABILITY:8jiXk\ZXgjZfd\fIJ`ejkXk\X]k\ijkXk\#k_\Zfjkf]
\c\Zki`Z`kp_Xj[flYc\[fidfi\`ei\Xck\idj%C\jjm`j`Yc\YlkaljkXj_Xid]lc#
k_\ZfjkjXjjfZ`Xk\[n`k_Xele[\ig\i]fid`e^^i`[Xi\Yfie\Yp\m\ipZ`k`q\e#
yet these hundreds of billions of dollars are buried in the economy and largely
lei\gfik\[%I`j`e^]l\cZfjkj»dX[\dfi\XZlk\Yplk`c`k`\jÀ\og`i`e^cfe^$
term coal contracts – are certain to raise their visibility.
$6
- 117 million
$5
$4
$3
$2
$1
‘75 ’80 ‘85 ’90 ‘95 ’00
Y E ARS
8
SECURITY:N_\ek_\YcXZbflkf])''*fZZlii\[»k_\cXi^\jk`eLJ_`jkfip»
k_fj\Z`k`q\ejefkjkXikc\[YpY\`e^jklZb`e[Xib\e\[#jlIJfZXk`e^\c\mXkfij
turned their thoughts toward terrorism. And not without cause. The grid’s
Z\ekiXc`q\[jkilZkli\c\Xm\jljfg\ekfXkkXZb%@e]XZk#k_\`ek\i[\g\e[\eZ`\j
U.S. Share of World Population
of various grid components can bring about a domino effect – a cascading series Compared to its Production of
Greenhouse Gases
f]]X`cli\jk_XkZflc[Yi`e^flieXk`feÀjYXeb`e^#Zfddle`ZXk`fej#kiXijZ#Xe[
security systems among others to a complete standstill.
ENVIRONMENT/CLIMATE CHANGE:=ifd]ff[jX]\kpkfg\ijfeXc_\Xck_#X
Zfdgifd`j\[\em`ifed\ekk_i\Xk\ejljXcc%K_\Le`k\[JkXk\jXZZflekj]fifecp
+f]k_\nfic[ÀjgfglcXk`feXe[gif[lZ\j),f]`kj^i\\e_flj\^Xj\j%?Xc]f] 4%
fliZflekipÀj\c\Zki`Z`kp`jjk`ccgif[lZ\[YpYlie`e^ZfXc#Xi`Z_[fd\jk`Zi\jfliZ\
YlkXdXafiZfeki`Ylkfikf^cfYXcnXid`e^%@]n\Xi\kfi\[lZ\fliZXiYfe]ffkgi`ek
Xe[jkXb\XZcX`dkf^cfYXc\em`ifed\ekXcc\X[\ij_`g#Zc\Xe#i\e\nXYc\jfliZ\jf] The U.S. accounts for 4% of the
world’s population while contributing
\e\i^pc`b\jfcXi#n`e[Xe[^\fk_\idXcdljkY\`ek\^iXk\[`ekfk_\eXk`feÀj^i`[%
25% of its greenhouse gases.
?fn\m\i#n`k_flkXggifgi`Xk\\eXYc`e^k\Z_efcf^`\jc`eb`e^k_\dkfk_\^i`[#
their potential will not be fully realized.
How will a smarter grid address these risks and others? Read on.
SECTION FOUR :
10
A smarter grid makes this transformation possible by bringing 9\ZXlj\k_`j`ek\iXZk`fefZZlijcXi^\cp½`ek_\YXZb^ifle[#¾n`k_
k_\g_`cfjfg_`\j#ZfeZ\gkjXe[k\Z_efcf^`\jk_Xk\eXYc\[k_\ d`e`dXc_ldXe`ek\im\ek`fe#k_\i\ÀjX[iXdXk`ZjXm`e^jfe\e\i^p
`ek\ie\kkfk_\lk`c`kpXe[k_\\c\Zki`Z^i`[%Dfi\`dgfikXekcp# that would otherwise be consumed.
it enables the industry’s best ideas for grid modernization to
K_`jkpg\f]gif^iXd_XjY\\eki`\[`ek_\gXjk#Ylkn`k_flkJdXik
achieve their full potential.
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Concepts in action. fejkXe[Xi[j#Xe[cfn$ZfjkZfddle`ZXk`feXe[\c\Zkife`Zj#`k
It may surprise you to know that many of these ideas are already possessed none of the potential that it does today.
`efg\iXk`fe%P\k`k`jfecpn_\ek_\pXi\\dgfn\i\[Ypd\Xejf]
Visualization technology. Consider grid visualization and the
the two-way digital communication and plug-and-play capabilities
tools associated with it. Already used for real-time load monitoring
that exemplify a smarter grid that genuine breakthroughs begin
Xe[cfX[$^ifnk_gcXee`e^Xkk_\lk`c`kpc\m\c#jlZ_kffcj^\e\iXccp
to multiply.
lack the ability to integrate information from a variety of sources
or display different views to different users. The result: Limited
Advanced Metering Infrastructure (AMI) is an approach to situational awareness. This condition will grow even more acute
integrating consumers based upon the development of open XjZljkfd\i$]fZlj\[\ijZ`\eZpXe[[\dXe[$i\jgfej\gif^iXdj
standards. It provides consumers with the ability to use electricity `eZi\Xj\#i\hl`i`e^j`^e`ÈZXekcpdfi\[XkXXjn\ccXjk_\XY`c`kp
dfi\\ijZ`\ekcpXe[gifm`[\jlk`c`k`\jn`k_k_\XY`c`kpkf[\k\Zk to understand and act on that data.
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E\ok$^\e\iXk`fem`jlXc`qXk`fe`jfe`kjnXp%F]gXik`ZlcXiefk\`j
8D@\eXYc\jZfejld\i$]i`\e[cp\ijZ`\eZpZfeZ\gkjc`b\½Gi`Z\jkf M<I;<#Xgifa\Zk`e[\m\cfgd\ek]fi;F<Xkk_\FXbI`[^\EXk`feXc
;\m`Z\j¾kfnfibc`b\k_`j18jjld`e^k_Xk\e\i^p`jgi`Z\[fen_Xk CXYfiXkfip%M<I;<M`jlXc`q`e^<e\i^pI\jfliZ\j;peXd`ZXccpfe
it costs in near real-time – a Smart Grid imperative – price signals <Xik_ n`ccgifm`[\n`[\$Xi\X^i`[XnXi\e\jj#`ek\^iXk`e^i\Xc$
are relayed to “smart” home controllers or end-consumer devices k`d\j\ejfi[XkX#n\Xk_\i`e]fidXk`feXe[^i`[df[\c`e^n`k_
c`b\k_\idfjkXkj#nXj_\i&[ip\ijXe[i\]i`^\iXkfij»k_\_fd\Àj ^\f^iXg_`ZXc`e]fidXk`fe%Gfk\ek`Xccp#`kn`ccY\XYc\kf\ogcfi\k_\
dXafi\e\i^p$lj\ij%K_\[\m`Z\j#`eklie#gifZ\jjk_\`e]fidXk`fe state of the grid at the national level and switch within seconds
based on consumers’ learned wishes and power accordingly. The kf\ogcfi\jg\Z`ÈZ[\kX`cjXkk_\jki\\kc\m\c%@kn`ccgifm`[\iXg`[
_flj\fifijZ\i\jgfe[jkfk_\fZZlgXekj#iXk_\ik_Xem`Z\$m\ijX% information about blackouts and power quality as well as insights
into system operation for utilities. With a platform built on Google
<Xik_#`kZXeXcjfkXb\X[mXekX^\f]Zfek\ek^\e\iXk\[Yp>ff^c\
Earth’s user community.
11
SECTION FOUR : CONTINUED
THE SMART GRID: WHAT IT IS. WHAT IT ISN’T.
=fid\[Xkk_\i\Zfdd\e[Xk`fef]k_\=\[\iXc
>i`[Zfddle`ZXk`fejk\Z_efcf^`\j#d\Xjli\d\ekjkXb\eXi\gi\Z`j\cp `edXb`e^k_\JdXik>i`[i\Xc%@JFjXe[IKFj
k`d\$jpeZ_ife`q\[Xe[kXb\edXepk`d\jXj\Zfe[`%\%#*'jXdgc\j&j\Zfe[ will use the smart distribution system as
offering dynamic visibility into the power system.
another resource for managing a secure and
Adoption of the Smart Grid will enhance every facet of the electric delivery most economic transmission system. “Lessons
cfZXk\[Zcfj\kfk_\cfX[Y\`e^j\im\[#ZXgXYc\f]cfn\i`e^Zfjkj#`dgifm`e^
i\c`XY`c`kp#i\[lZ`e^\d`jj`fejXe[\ogXe[`e^\e\i^pfgk`fej%
12
8eXlkfdXk\[#n`[\cp[`jki`Ylk\[\e\i^p[\c`m\ipe\knfib#k_\
Smart Grid will be characterized by a two-way flow of electricity
and information and will be capable of monitoring everything from
power plants to customer preferences to individual appliances.
@k`eZfigfiXk\j`ekfk_\^i`[k_\Y\e\Èkjf][`jki`Ylk\[Zfdglk`e^
Demand Profile
and communications to deliver real-time information and enable
the near-instantaneous balance of supply and demand at the
320
device level.
d`^_k`cpY\ZXlj\#Xjefk\[#\c\Zki`Z`kpdljkY\Zfejld\[k_\
160
moment it’s generated.
N`k_flkY\`e^XYc\kfXjZ\ikX`e[\dXe[gi\Z`j\cp#XkX^`m\ek`d\#
having the ‘right’ supply available to deal with every contingency 80
is problematic at best. This is particularly true during episodes of
g\Xb[\dXe[#k_fj\k`d\jf]^i\Xk\jke\\[]fi\c\Zki`Z`kp[li`e^
a particular period.
0
0 6 12 18 24
13
SECTION FOUR : CONTINUED
THE GRID TODAY: WHAT IT IS. WHAT IT ISN’T.
@edXb`e^i\Xc$k`d\^i`[i\jgfej\Xi\Xc`kp#XjdXik\i^i`[dXb\j`kgfjj`Yc\kfi\[lZ\k_\
high cost of meeting peak demand. It gives grid operators far greater visibility into the
jpjk\dXkXÈe\i½^iXelcXi`kp#¾\eXYc`e^k_\dkfZfekifccfX[j`eXnXpk_Xkd`e`d`q\j
k_\e\\[]fikiX[`k`feXcg\XbZXgXZ`kp%@eX[[`k`fekf[i`m`e^[fneZfjkj#`kdXp\m\e
eliminate the need to use existing peaker plants or build new ones – to save everyone
money and give our planet a breather.
As much as “smart
technologies” can enhance this
familiar device, it’s not the same
thing as the Smart Grid.
14
8jfe\`e[ljkip\og\ik\ogcX`ej`k#k_\i\`jefj`cm\iYlcc\kn_\e`kZfd\jkf
\eXYc`e^k\Z_efcf^`\j]fiXjdXik\i^i`[2k_\i\`j`ejk\X[½j`cm\iYlZbj_fk#¾
an array of technological approaches that will make it work.
=lik_\iZcXi`ÈZXk`fe1;\m`Z\jjlZ_Xjn`e[kliY`e\j#gcl^$`e_pYi`[\c\Zki`Z
m\_`Zc\jXe[jfcXiXiiXpjXi\efkgXikf]k_\JdXik>i`[%IXk_\i#k_\JdXik
>i`[\eZfdgXjj\jk_\k\Z_efcf^pk_Xk\eXYc\jljkf`ek\^iXk\#`ek\i]XZ\
with and intelligently control these innovations and others.
15
The Smart Grid transforms the current grid
to one that functions more cooperatively,
responsively and organically.
SECTION FIVE:
COMPARE AND
CONTRAST:
A GRID WHERE
EVERYTHING
IS POSSIBLE.
SMART GRID FACT
and businesses.
16
Intelligent – capable of sensing system overloads and
IN TERMS OF rerouting power to prevent or minimize a potential outage;
Opportunistic – creating new opportunities and markets by means of its ability to capitalize on
plug-and-play innovation wherever and whenever appropriate
Quality-focused»ZXgXYc\f][\c`m\i`e^k_\gfn\ihlXc`kpe\Z\jjXip»]i\\f]jX^j#jg`b\j#[`jkliYXeZ\j
Xe[`ek\iilgk`fej»kfgfn\ifli`eZi\Xj`e^cp[`^`kXc\ZfefdpXe[k_\[XkXZ\ek\ij#Zfdglk\ijXe[
electronics necessary to make it run
Resilient – increasingly resistant to attack and natural disasters as it becomes more decentralized and reinforced
with Smart Grid security protocols
“Green”»jcfn`e^k_\X[mXeZ\f]^cfYXcZc`dXk\Z_Xe^\Xe[fIJ\i`e^X^\el`e\gXk_kfnXi[j`^e`ÈZXek
environmental improvement
Applied across various key constituencies, the benefits of The more efficient their systems, the less utilities
creating a smarter grid are drawn in even sharper relief. need to spend.
The Smart Grid as it applies to utilities. Given our nation’s population growth and the exponential
N_\k_\ik_\pÀi\`em\jkfi$fne\[#Zffg\iXk`m\cpfne\[fi increase in the number of power-hungry digital components in
glYc`Z#lk`c`k`\jXi\[\[`ZXk\[kfgifm`[`e^]fik_\glYc`Z^ff[ fli[`^`kXc\Zfefdp#X[[`k`feXc`e]iXjkilZkli\dljkY\Yl`ck»
»`%\%#kXb`e^ZXi\f]jfZ`\kpÀj\c\Zki`Z`kpe\\[j»Ypfg\iXk`e^# JdXikfiefk%8ZZfi[`e^kfK_\9iXkkc\>iflg#`em\jkd\ekkfkXc`e^
maintaining and building additional electric infrastructure. The approximately $1.5 trillion will be required between 2010 and
costs associated with such tasks can run to billions of dollars 2030 to pay for this infrastructure. The Smart Grid holds the
annually and the challenges associated with them are enormous. potential to be the most affordable alternative to “building out”
YpYl`c[`e^c\jj#Xe[jXm`e^dfi\\e\i^p%@kn`ccZc\Xicpi\hl`i\
=fiXjdXik\i^i`[kfY\e\ÈkjfZ`\kp#`kdljki\[lZ\lk`c`k`\jÀ
investments that are not typical for utilities. But the overall
ZXg`kXcXe[&fifg\iXk`e^\og\ej\jkf[Xp»fii\[lZ\Zfjkj`ek_\
Y\e\Èkjf]jlZ_\IJfikjn`ccflkn\`^_k_\Zfjkj#Xjjfd\lk`c`k`\j
future. It is estimated that Smart Grid enhancements will ease
are already discovering.
Zfe^\jk`feXe[`eZi\Xj\lk`c`qXk`fef]]lccZXgXZ`kp #j\e[`e^,'
kf*''dfi\\c\Zki`Z`kpk_ifl^_\o`jk`e^\e\i^pZfii`[fij%
17
SECTION FIVE : CONTINUED
COMPARE AND CONTRAST: A GRID WHERE EVERYTHING IS POSSIBLE
The Smart Grid as it applies to consumers. 1960s using even older technology. Today, the
=fidfjkZfejld\ij#\e\i^p_Xjcfe^Y\\eZfej`[\i\[XgXjj`m\gliZ_Xj\% average age of a substation transformer
8]k\iXcc#n_XkZ_f`Z\_Xm\k_\pY\\e^`m\e6K_\kpg`ZXc\c\Zki`ZY`cc`jcXi^\cp is 42, two years more than their
unintelligible to consumers and delivered days after the consumption actually
expected life span.
occurs – giving consumers no visibility into decisions they could be making
regarding their energy consumption.
?fn\m\i#`kgXpjkfcffbXk\c\Zki`ZY`ccjZcfj\cp`]]fieffk_\ii\Xjfek_Xek_`j2
they also typically include a hefty “mortgage payment” to pay for the infrastructure
needed to generate and deliver power to consumers.
8jligi`j`e^cpjlYjkXek`Xcgfik`fef]pfli\c\Zki`ZY`cc»Y\kn\\e**»,'»`j
Zlii\ekcpXjj`^e\[kf]le[`e^fli½`e]iXjkilZkli\dfik^X^\#¾fliZlii\ek\c\Zki`Z
infrastructure. This item is non-negotiable because that infrastructure – power
gcXekj#kiXejd`jj`fec`e\j#Xe[\m\ipk_`e^\cj\k_XkZfee\Zkjk_\d»dljkY\
dX`ekX`e\[kfb\\gk_\^i`[ilee`e^Xji\c`XYcpXj`k[f\j%@e]XZk#k_\kiXejd`jj`fe
Xe[[`jki`Ylk`feZ_Xi^\fek_\\c\Zki`ZY`cc`jjg\Z`ÈZXccp]fi`e]iXjkilZkli\%
N`k_[\dXe[\jk`dXk\[kf[flYc\Yp)','»Xe[dfi\gfn\igcXekj#kiXejd`jj`fe
c`e\j#kiXej]fid\ijXe[jlYjkXk`fejkfY\Yl`ck»k_\Zfjkjf]k_`j½Y`^`ife¾n`ccXcjf
show up on your bill in one way or another. (The only difference this time is that
^cfYXc[\dXe[]fik_\`ife#jk\\c#Xe[ZfeZi\k\i\hl`i\[kfYl`c[k_`j`e]iXjkilZkli\
n`ccdXb\k_\j\Zfddf[`k`\j]Xidfi\Zfjkcp2`e]XZk#k_\Zfjkf]dXepiXndXk\i`Xcj
Xe[^i`[Zfdgfe\ekj_Xjdfi\k_Xeki`gc\[j`eZ\)''-%
dXib\k%Gi`Z\jgX`[]fi\e\i^pZfejld\[[li`e^k_\j\g\i`f[jXi\kpg`ZXccp\jkXYc`j_\[Xe[befnekf
Zfejldgk`fe#Xccfn`e^k_\dkfmXipk_\`i[\dXe[Xe[ljX^\`ei\jgfej\kfjlZ_gi`Z\jXe[dXeX^\
k_\`i\e\i^pZfjkjYpj_`]k`e^ljX^\kfXcfn\iZfjkg\i`f[#fii\[lZ`e^Zfejldgk`fefm\iXcc%
18
Now for the good news. The Smart Grid connects consumers to the grid in a way that
`jY\e\ÈZ`XckfYfk_#Y\ZXlj\`kkliejflkk_\i\ÀjXcfkk_XkXm\iX^\Zfejld\ijZXe[f
to help the grid.
Enabling consumer participation also provides tangible results for utilities which are ('f]Xcc^\e\iXk`feXjj\kjXe[
\og\i`\eZ`e^[`ijZlckp`ej`k`e^e\nkiXejd`jj`fec`e\jXe[gfn\igcXekj%Lck`dXk\cp# ),f][`jki`Ylk`fe`e]iXjkilZkli\
tapping the collaborative power of millions of consumers to shed load will put are required less than 400 hours
j`^e`ÈZXekYiXb\jfek_\e\\[]fie\n`e]iXjkilZkli\XkXepZfjk%@ejk\X[#lk`c`k`\j
g\ip\Xi#ifl^_cp,f]k_\k`d\%
n`cc_Xm\k`d\kfYl`c[dfi\Zfjk$\ijZ`\eZ`\j`ekfk_\`ij`k`e^Xe[Yl`c[`e^gcXej%
While Smart Grid approaches can’t
:lii\ekcp#i\Zf^e`k`fef]k_\k`d\$[\g\e[\ekZfjkf]\e\i^pmXi`\jYpi\^`fe%@eXi\Xj
n_\i\ZfjkjXi\cfnXe[jg\Z`Xc`q\[iXk\jkfk_`jgf`ekefe$\o`jk\ek#k_\i\`jc`kkc\
interest or economic incentive on the part of the consumer to modify usage or even
k_`ebXYflk\e\i^p_Xm`e^Xe_flicpZfjk%@e:Xc`]fie`X#feX_fkX]k\ieffe#Zfejld\ij
are well aware of the possibility of a blackout driven by peak demand and familiar with
X[aljk`e^k_\`i\e\i^pljX^\XZZfi[`e^cp%
can do for you. Ask what you can do for the grid – and
19
SECTION FIVE : CONTINUED
COMPARE AND CONTRAST: A GRID WHERE EVERYTHING IS POSSIBLE
The message from consumers about the Smart Grid: Keep It Simple. grew by only 15%. Summer peak demand is
8kk_\i\j`[\ek`Xcc\m\c#JdXik>i`[dljkY\j`dgc\#½j\k$`k$Xe[$]fi^\k$`k¾k\Z_efcf^p#
\eXYc`e^Zfejld\ijkf\Xj`cpX[aljkk_\`ifne\e\i^plj\%<hl`gg\[n`k_i`Z_#lj\]lc
`e]fidXk`fe#Zfejld\ijZXe_\cgdXeX^\cfX[fe$g\XbkfjXm\dfe\pXe[\e\i^p]fi
k_\dj\cm\jXe[#lck`dXk\cp#Xccf]lj%
=fik_\^ifn`e^eldY\if]\em`ifed\ekXccp$XnXi\Zfejld\ij#XjdXik\i^i`[ÈeXccp
provides a “window” for them to assess and react to their personal environmental
`dgXZkj%8ci\X[p#jfd\lk`c`k`\jXi\`e]fid`e^Zfejld\ijXYflkk_\`iZXiYfe
]ffkgi`ekXcfe^j`[\k_\`i\e\i^pZfjkj%@ek`d\#k_\JdXik>i`[n`cc\eXYc\Zfejld\ij
to react in near real-time to lessen their impacts.
Xe[n\c]Xi\n_\egi\j\ekXkjg\Z`È\[c\m\cj%K_\p`eZcl[\e`kif^\e[`fo`[\EFo #ZXiYfe
dfefo`[\#fqfe\#c\X[#jlc]li[`fo`[\JFo Xe[gXik`ZlcXk\dXkk\i#n_`Z_`eZcl[\j[`ik#jffk#
ZXiXe[kilZb\o_Xljk#Z`^Xi\kk\jdfb\#jgiXpgX`ek[ifgc\kj#Xe[kfo`ZZ_\d`ZXcZfdgfle[j%
20
For utilities, adoption of the Smart Grid clears the air on several fronts.
Energy efficiency:
Fek_\cfX[j`[\#Zfejld\ijZXgXYc\f]\o\iZ`j`e^ljX^\ZfekifcXi\jl[[\ecpXe[
j`dlckXe\fljcpXcjfXYc\kf\o\iZ`j\k_\`i\em`ifed\ekXcjk\nXi[j_`g#i\jlck`e^`e
ki\d\e[fljZfejld\i$j`[\\e\i^p\ijZ`\eZ`\j%
The ability to effectively manage load with existing transmission and distribution
infrastructure means that – ultimately – utilities would no longer have to build or
could at least defer infrastructure to account for rapidly increasing peak demand.
21
SECTION FIVE : CONTINUED
COMPARE AND CONTRAST: A GRID WHERE EVERYTHING IS POSSIBLE
<eXYc\[Ype\nk\Z_efcf^`\j#gcl^$`e_pYi`[m\_`Zc\j»Zlii\ekcp
scheduled for showroom floors by 2010 – may dramatically reduce our
To get a greener grid, you need
eXk`feÀj]fi\`^ef`cY`cc%8ZZfi[`e^kfk_\GXZ`ÈZEfik_n\jkEXk`feXc
a Smart Grid.
CXYfiXkfip#\o`jk`e^L%J%gfn\igcXekjZflc[d\\kk_\\c\Zki`Z`kpe\\[j
f].*f]k_\eXk`feÀjc`^_km\_`Zc\j`%\%#ZXijXe[jdXcckilZbj `]k_\ Solar and wind power are necessary
vehicles were replaced by plug-ins that recharged at night. Such a shift and desirable components of a cleaner
nflc[i\[lZ\f`cZfejldgk`feYp-%)d`cc`feYXii\cjg\i[Xp#\c`d`eXk`e^
energy future. To make the grid run
,)f]Zlii\ek`dgfikj%
Zc\Xe\i#`kn`cckXb\X^i`[ZXgXYc\f]
However, there is a lot more to realizing this potential than simply dealing with the variable nature of
plugging in.
these renewable resources.
j\XjfeXcgXkk\iej%F]]$g\Xbg\i`f[j[`]]\i]fi\XZ_`e[`m`[lXc\c\Zki`Zlk`c`kp%
22
With a smarter grid at work, a community
“without power” is far from powerless.
What might the longer-term future look like? power from a utility is absent. Combining distributed resources
f]\m\ip[\jZi`gk`fe»iff]kfgGMjfcXi #]l\cZ\ccj#\c\Zki`Z
It is a decade from now.
m\_`Zc\j»k_\Zfddle`kpZXe^\e\iXk\jlijZ`\ek\c\Zki`Z`kpkf
i\^`fe%K\ep\XijX^f#k_\nX`k]fik_\Xgg\XiXeZ\f]Xlk`c`kpÀj phone system and the community health center up and running.
@ejk\X[#n`k_]lccJdXik>i`[[\gcfpd\ek#k_`j]lkli\Zfddle`kp
`jefknX`k`e^%@ejk\X[#`kÀjXYc\`dd\[`Xk\cpkfkXb\X[mXekX^\ THIS IS POWER
of distributed resources and standards that support a Smart
Grid concept known as “islanding.” Islanding is the ability of
FROM THE PEOPLE.
distributed generation to continue to generate power even when And it is coming.
23
Getting from Point A to Point B – from our
present grid to the Smart Grid – requires
a brief examination of the history and
culture of the industry’s primary custodians;
namely, utilities and regulators.
SECTION SIX:
YpXj`e^c\\ek`kp#n_\k_\i`knXj`em\jkfi$fne\[#Xdle`Z`gXclk`c`kp
or a co-op.
Le[\ik_\k\idjf]k_\ZfdgXZk#`e\oZ_Xe^\]figifm`[`e^\c\Zki`Z
j\im`Z\kfXccZfejld\ijn`k_`ek_\lk`c`kpÀjj\im`Z\k\ii`kfip#lk`c`k`\j
were provided a return on their investments plus a return on those
investments commensurate with risks they take in ensuring service
and reliability. State regulatory commissions were charged with
determining whether the investments made were prudent and what
a reasonable return on those investments should be.
24
Fm\ik_\\ejl`e^[\ZX[\j#dlZ__Xi[nfibnXj[fe\feYfk_ Lek`ci\cXk`m\cpi\Z\ekcp#k_`jjkXklkfipXiiXe^\d\ek_Xji\jlck\[
sides of the compact as much of the grid as we know it was built. in little regulatory action among the states and little reason to
\e^X^\`eZfcc\Zk`m\XZk`fefeXeXk`feXcYXj`j#Xck_fl^_k_\p
N`k_`elk`c`k`\j#\IJfikjkfnXi[k_`jfYa\Zk`m\n\i\kpg`ZXccp
work at common purposes through regional associations.
segmented or “siloed.” This division of labor worked well for
lk`c`k`\j#gifm`[`e^\ijZ`\eZ`\jn`k_`ek_\fi^Xe`qXk`fe]fihl`Zb J`d`cXicp#i\^lcXk\[lk`c`k`\j_Xm\kiX[`k`feXccpY\\ei\XZk`m\#
execution and maintenance of system reliability. with no need or incentive to be proactive on a national level.
N\ccXc`^e\[]filk`c`kpfg\iXk`fej#k_\pXi\efke\Z\jjXi`cpn\cc
D\Xen_`c\#i\^lcXkfij]fZljfek_\`ii\jg\Zk`m\jkXk\jXjX
positioned for integrated strategic initiatives like the Smart Grid
dXkk\if]cXn#Xele[\ijkXe[XYc\Z`iZldjkXeZ\^`m\ek_Xk\XZ_
although they have collectively and forcefully advocated in the
jkXk\dljkXejn\iÈijkXe[]fi\dfjkkf`kjZ`k`q\ejXe[k_\`i
past on issues such as security and climate change.
le`hl\j\kf]e\\[j#i\jfliZ\jXe[X^\e[Xj%
N`k_^ifn`e^Zfej\ejljXifle[k_\ZilZ`Xce\\[]fiJdXik>i`[[\gcfpd\ek#
the cultures of these entities are now changing dramatically.
=fik_\`igXik#i\^lcXkfijXi\XZk`m\cpj_Xi`e^`[\XjXe[`e]fidXk`fen`k_fk_\i
jkXk\j%8Zk`e^n`k_Xe\p\kfnXi[eXk`feXcX^i\\d\ek#kn\ekp$e`e\jkXk\j
_Xm\Xcjf[\m\cfg\[Xe[X[fgk\[i\e\nXYc\gfik]fc`fjkXe[Xi[j#n_`Z_i\hl`i\
Xgi\$[\k\id`e\[Xdflekf]XjkXk\Àj\e\i^pgfik]fc`flgkf)' kfZfd\
exclusively from renewable sources by as early as 2010.
I\^lcXkfijfeYfk_k_\jkXk\Xe[]\[\iXcc\m\cXi\jk\gg`e^lgk_\`i[`Xcf^%
JkXk\i\^lcXkfiji\gi\j\ek\[Ypk_\EXk`feXc8jjfZ`Xk`fef]I\^lcXkfip
Lk`c`kp:fdd`jj`fejE8IL: Xi\\ogcfi`e^fgk`fej]fi\og\[`k`e^JdXik
>i`[`dgc\d\ekXk`fen`k_k_\`i]\[\iXcZflek\igXik#k_\=\[\iXc<e\i^p
I\^lcXkfip:fdd`jj`fe=<I: %D\Xen_`c\#;F<`jgifm`[`e^c\X[\ij_`gn`k_
k_\gXjj`e^`ekfcXnf]k_\<e\i^p@e[\g\e[\eZ\Xe[J\Zli`kp8Zkf])''.
<@J8 #n_`Z_Zf[`È\jXi\j\XiZ_#[\m\cfgd\ekXe[[\dfejkiXk`fegif^iXd
for Smart Grid technologies.
K_Xebjkfk_\j\Xe[fk_\i\IJfikj#dXepi\^lcXkfijXi\dfm`e^kfnXi[e\n
regulations designed to incentivize utility investment in the Smart Grid.
8dfe^k_\j\Xi\[peXd`Zgi`Z`e^#j\cc`e^\e\i^pYXZbkfk_\^i`[#Xe[gfc`Z`\j
k_Xk^lXiXek\\lk`c`k`\jZfjki\Zfm\ipXe[&fi]XmfiXYc\[\gi\Z`Xk`fefee\n
Smart Grid investments and legacy systems made obsolete by the switch
to “smart meters” and other Smart Grid investments.
26
8j]filk`c`k`\j#Xe`eZi\Xj`e^eldY\if]k_\dXi\kXb`e^Xdfi\`ek\^iXk\[
m`\nf]XjdXik\i^i`[#gXik`ZlcXicpn_\ek_\i\Xi\Xi\Xjf]fm\icXgk_XkZXe
Y\c\m\iX^\[]fiZfjki\[lZk`fefiY\e\Èk`eZi\Xj\%K_\i\Xi\i\^lcXkfip
`dgc`ZXk`fej_\i\Xjn\cc2`]lk`c`k`\jXi\kfXi^l\]fiZfjki\Zfm\ipgifa\Zk
Ypgifa\ZkiXk_\ik_XeYpj`e^c\`ek\^iXk\[gcXe#jfd\Y\e\ÈZ`XcXjg\Zkj
of deployment of a smarter grid could be lost.
@ek\^iXk\[gcXejXi\Y\`e^gifgfj\[Xe[Zfej`[\i\[%@e:Xc`]fie`X#jdXik
meters only became economic when the commission considered non-utility
Y\e\Èkj»Y\e\ÈkjkfZfejld\ij]ifdcfn\iY`ccj%
KfXe`e[ljkip_`jkfi`ZXccpi\^lcXk\[]figi`fi`em\jkd\ek#k_\kiXej]fidXk`fe
to regulation for value delivery promises to stimulate substantial progress
and alignment around the Smart Grid vision and implementation. Keep in
d`e[#k_fl^_#k_Xki\^lcXkfijn`ccZfek`el\kfi\hl`i\Xj_fn`e^k_Xkk_\
value of the investments to consumers – whatever they may be – ultimately
exceeds the costs.
Electricity Initiative.
27
Open architecture. Internet protocol. Plug
and play. Common technology standards.
Non-proprietary. Interoperability.
SECTION SEVEN:
HOW THINGS
WORK: CREATING
THE PLATFORM FOR
THE SMART GRID.
=fikleXk\cp#k_\X^\e[Xjf]lk`c`k`\j#i\^lcXkfijXe[XlkfdXk`fe
vendors are rapidly aligning and movement toward identifying
and adopting Smart Grid standards is gaining velocity.
28
DOE lists five fundamental technologies that will drive the Smart Grid:
@ek\^iXk\[Zfddle`ZXk`fej#Zfee\Zk`e^Zfdgfe\ekjkffg\eXiZ_`k\Zkli\]fii\Xc$k`d\
`e]fidXk`feXe[Zfekifc#Xccfn`e^\m\ipgXikf]k_\^i`[kfYfk_¿kXcbÀXe[¿c`jk\eÀ
J\ej`e^Xe[d\Xjli\d\ekk\Z_efcf^`\j#kfjlggfik]Xjk\iXe[dfi\XZZliXk\i\jgfej\
jlZ_Xji\dfk\dfe`kfi`e^#k`d\$f]$lj\gi`Z`e^Xe[[\dXe[$j`[\dXeX^\d\ek
8[mXeZ\[Zfdgfe\ekj#kfXggcpk_\cXk\jki\j\XiZ_`ejlg\iZfe[lZk`m`kp#jkfiX^\#gfn\i
electronics and diagnostics
8[mXeZ\[Zfekifcd\k_f[j#kfdfe`kfi\jj\ek`XcZfdgfe\ekj#\eXYc`e^iXg`[[`X^efj`jXe[
precise solutions appropriate to any event
@dgifm\[`ek\i]XZ\jXe[[\Z`j`fejlggfik#kfXdgc`]p_ldXe[\Z`j`fe$dXb`e^#kiXej]fid`e^^i`[
operators and managers quite literally into visionaries when it come to seeing into their systems
killer app
N`cck_\G?<MY\k_\JdXik>i`[Àj½b`cc\iXgg#¾k_\flknXi[\ogi\jj`fe
of the Smart Grid that consumers adopt en masse as they did e-mail?
29
SECTION SEVEN : CONTINUED
HOW THINGS WORK: CREATING THE PLATFORM FOR THE SMART GRID.
Integration in practice.
FeNXj_`e^kfeÀjFcpdg`ZG\e`ejlcX#X;F<[\dfejkiXk`fegifa\Zkj\k`e Steps toward a common “language.”
<c\ZkifK\Z_e`ZXc:fdd`jj`fe@<:
8Zifjjk_\eXk`fe#ZfdgXe`\jXi\[\m\cfg`e^e\nJdXik>i`[k\Z_efcf^`\j
i\Z\ekcpglYc`j_\[<GI@Àj@ek\cc`>i`[
for utility-scale deployments that are progressively raising the bar on what
D\k_f[fcf^p]fi;\m\cfg`e^
is possible and practical.
I\hl`i\d\ekj]fi<e\i^pJpjk\dj
XjXglYc`ZcpXmX`cXYc\jg\Z`ÈZXk`fe%
30
Another look at the future: PHEV (Plug-in Hybrid Electric Vehicles)
8jjld`e^Zljkfd\iXZZ\gkXeZ\i\^Xi[`e^gi`Z\#g\i]fidXeZ\Xe[cfe^\m`kp#k_\j\
vehicles offer consumers the opportunity to shift use of oil and gasoline to electricity
»Xe[kfgfn\iXZXi]fik_\\hl`mXc\ekf]%0'g\i^Xccfe%8j`e\ijZ`\ekXjk_\^i`[
`jkf[Xp#`k`jZc\Xe\ifeYXcXeZ\k_Xef`cXe[^Xjfc`e\% :fejld\ij^\k]Xidfi\
XIJfi[XYc\kiXejgfikXk`fe%I\cp`e^dfi\fe\c\Zki`Z`kp]fikiXejgfikXk`feXe[c\jj
on fossil fuels increases our energy independence as well as our environmental
gifjg\Zkj%G?<MjkXb\X[mXekX^\f]cfn\iZfjkXe[fIJ$g\XbZXgXZ`kpXe[ZXegifm`[\
grid support during the peak periods.
Energy storage:
N_`c\\c\Zki`Z`kpZXeefkY\\Zfefd`ZXccpjkfi\[#\e\i^pZXeY\»n`k_k_\Xggc`ZXk`fe
f]JdXik>i`[k\Z_efcf^`\j%K_\idXcjkfiX^\#jfd\k`d\jZXcc\[_pYi`[X`iZfe[`k`fe`e^#
holds promising potential for positively affecting peak load today. Also of note is the
e\Xi$k\idgfk\ek`Xcf]c`k_`ld$`feYXkk\i`\j]fiG?<MXggc`ZXk`fej%
Advanced sensors:
Dfe`kfi`e^Xe[i\gfik`e^c`e\Zfe[`k`fej`ei\Xck`d\#X[mXeZ\[j\ejfij\eXYc\dfi\
power to flow over existing lines.
31
The Department of Energy is actively
engaged in supporting a wide variety of
Smart Grid projects. The role of DOE is to
act as an objective facilitator, allowing the
best ideas to prove themselves. Smart Grid
efforts are well underway on several key
fronts, from forward-thinking utilities to
the 50th state.
SECTION EIGHT:
PROGRESS NOW!:
A LOOK AT CURRENT
SMART GRID EFFORTS
AND HOW THEY’RE
SUCCEEDING.
of a smarter grid.
32
Distribution Management System (DMS) Platform by the University of Hawaii
K_\`ek\^iXk\[\e\i^pdXeX^\d\ekgcXk]fidn`ccY\[\m\cfg\[#]\Xkli`e^X[mXeZ\[]leZk`fej]fi
home energy management by consumers and for improved distribution system operations by utilities.
K_`jgcXk]fidn`cc`ek\^iXk\8D@XjX_fd\gfikXc]fi[\dXe[i\jgfej\2_fd\XlkfdXk`fe]fi\e\i^p
Zfej\imXk`fe2fgk`dXc[`jgXkZ_f][`jki`Ylk\[^\e\iXk`fe#jkfiX^\#Xe[cfX[j`ek_\[`jki`Ylk`fe
jpjk\d#Xe[ZfekifcjkfdXb\k_\[`jki`Ylk`fejpjk\dX[`jgXkZ_XYc\\ek`kpkfZfccXYfiXk\n`k_fk_\i
entities in the bulk grid.
?fd\\e\i^pdXeX^\d\ekf]k_`jkpg\n`cc\eXYc\Zfejld\ijkfkXb\Zfekifc#XlkfdXk`e^\e\i^p
conservation and demand response practices based on their personal preferences.
K_\_fd\XlkfdXk`fen`ccY\YXj\[fek_\JdXikD\k\iXe[\Zf;Xj_YfXi[gif[lZkj]ifd>\e\iXc
<c\Zki`Z%K_\JdXikD\k\in`k_XQ`^9\\e\knfibn`ccZfddle`ZXk\n`k__flj\_fc[Xggc`XeZ\j#Xe[
k_\[Xj_YfXi[n`ccXlkfdXk\Zfekifcjf]k_\`ifg\iXk`fej%@eX[[`k`fe#k_`jgcXk]fidn`ccgifm`[\XeZ`ccXip
j\im`Z\jkfk_\cfZXclk`c`kpjlZ_Xjjg`ee`e^i\j\im\#cfX[$]fccfn`e^i\^lcXk`fe#Xe[`ek\id`kk\eZp
dXeX^\d\ek]fin`e[Xe[jfcXi\e\i^p%K_`jgcXk]fidn`ccY\[\gcfp\[Xkk_\DXl`CXe`JlYjkXk`fe
`eDXl`#?XnX``%
K_`jgifa\Zkn`cc[\j`^eXG\i]\ZkGfn\igifkfkpg\k_Xkc\m\iX^\jX[mXeZ\[k\Z_efcf^pkfZi\Xk\
microgrids responding to grid conditions and providing increased reliability and demand reduction.
This prototype model will be demonstrated at the IIT campus to showcase its operations to the
industry. The model is designed to be replicable in any municipality-sized system where customers
can participate in electric market opportunities.
33
SECTION EIGHT : CONTINUED
PROGRESS NOW! : A LOOK AT CURRENT SMART GRID EFFORTS AND HOW THEY’RE SUCCEEDING
:lii\ekcp[li`e^XZ`iZl`k]Xlck#XccZljkfd\ijfek_`jZ`iZl`kXi\Y\`e^XIJ\Zk\[n`k_
power loss or with power quality issues. The super circuit will demonstrate an ability
kf[peXd`ZXccpi\ZfeÈ^li\k_\Z`iZl`kkfXccfn`jfcXk`fef]k_\]Xlck\[j\^d\ek#
kiXej]\ile`ek\iilgk\[j\im`Z\jkf½le]Xlck\[¾j\^d\ekj#Xe[kXgjligcljZXgXZ`kp
]ifdX[aXZ\ek]\\[\ijkffgk`d`q\Zfejld\ij\im`Z\%
K_\9\XZ_:`k`\jD`Zif^i`[Gifa\Zkn`ccY\[\dfejkiXk\[XkXe\o`jk`e^jlYjkXk`fe
`[\ek`È\[Xj½9\XZ_:`kpJlYjkXk`fe%¾@k`j`ek\e[\[kffIJ\iXYcl\gi`ekkfXcc[`jki`Ylk`fe
utilities – proving the effectiveness of integrating multiple distributed energy resources
with advanced controls and communications. It seeks to improve reliability and reduce
peak loads on grid components such as distribution feeders and substations.
9fk_lk`c`kp$fne\[Xe[Zljkfd\i$fne\[^\e\iXk`fe#`%\%#g_fkfmfckX`ZGM jpjk\dj
Xe[Y`f[`\j\c$]l\c\[^\e\iXkfij#Xe[\e\i^pjkfiX^\n`ccY\`ek\^iXk\[Xcfe^n`k_
X[mXeZ\[d\k\i`e^`e]iXjkilZkli\8D@ `ekfk_\i\Xc$nfic[jlYjkXk`fefg\iXk`fej
n`k_Xg\XbcfX[f]Xggifo`dXk\cp,'DN%
Beach Cities will serve as a guide for improved asset use as well as for operating the
entire distribution network in the future. Successfully “building” such capabilities
will enable customer participation in reliability- and price-driven load management
giXZk`Z\j#Yfk_f]n_`Z_Xi\b\pkfk_\i\Xc`qXk`fef]XjdXik\i^i`[%
34
High Penetration of Clean Energy Technologies by The City of Fort Collins
K_\Z`kpXe[`kjZ`kp$fne\[=fik:fcc`ejLk`c`kpjlggfikXn`[\mXi`\kpf]Zc\Xe\e\i^p
`e`k`Xk`m\j#`eZcl[`e^k_\\jkXYc`j_d\ekf]XQ\if<e\i^p;`jki`Zkn`k_`ek_\Z`kp
befneXj=fikQ<; %
Fe\jlZ_`e`k`Xk`m\j\\bjkfdf[\ie`q\Xe[kiXej]fidk_\\c\Zki`ZXc[`jki`Ylk`fe
system by developing and demonstrating an integrated system of mixed distributed
resources to increase the penetration of renewables – such as solar and wind – while
[\c`m\i`e^`dgifm\[\ijZ`\eZpXe[i\c`XY`c`kp%
These and other distributed resources will be fully integrated into the electrical
[`jki`Ylk`fejpjk\dkfjlggfikXZ_`\m\d\ekf]XQ\if<e\i^p;`jki`Zk%@e]XZk#k_`j
;F<$jlggfik\[gifa\Zk`emfcm\jk_\`ek\^iXk`fef]Xd`of]e\Xicp*'[`jki`Ylk\[
^\e\iXk`fe#i\e\nXYc\\e\i^p#Xe[[\dXe[i\jgfej\i\jfliZ\jXZifjj,Zljkfd\i
cfZXk`fej]fiXeX^^i\^Xk\[ZXgXZ`kpf]dfi\k_Xe*%,D\^XnXkkj%
photovoltaic (PV)
d`ZifkliY`e\jjdXccZfdYljk`fekliY`e\jk_Xk
produce between 25 kW and 500 kW of power)
[lXc$]l\cZfdY`e\[gfn\iXe[_\Xk:?G jpjk\dj
(utilizing the by-product methane generated from
a water treatment plant operation)
i\Z`gifZXk`e^fi`ek\ieXcZfdYljk`fe \e^`e\j
YXZblg^\e\iXkfij
n`e[
gcl^$`e_pYi`[\c\Zki`Zm\_`Zc\jG?<M `eXe
ancillary-services role
]l\cZ\ccj
K_`jgifa\Zkn`cc_\cg[\k\id`e\k_\dXo`dld[\^i\\f]g\e\kiXk`fef][`jki`Ylk\[
resources based on system performance and economics.
35
When Smart Grid implementation
becomes reality, everyone wins –
and what were once our risks become
our strengths.
SECTION NINE:
EDISON UNBOUND:
WHAT’S YOUR
STAKE IN ALL THIS?
36
LET’S REVISIT THAT LIST:
EFFICIENCY: It is estimated that tens of billions of dollars kfnXi[\e\i^p`e[\g\e[\eZ\]ifd]fi\`^e\e\i^pjfliZ\j#
will be saved thanks to demand-response programs that n_`Z_k_\dj\cm\jdXpY\kXi^\kj]fiXkkXZb#flkj`[\f]fli
gifm`[\d\XjliXYc\#g\ij`jk\ekjXm`e^jXe[i\hl`i\ef protection and control.
human intervention or behavior change. The dramatically
reduced need to build more power plants and transmission ENVIRONMENT/CLIMATE CHANGE::c\Xe#i\e\nXYc\
c`e\jn`cc_\cg#kff% jfliZ\jf]\e\i^pc`b\jfcXi#n`e[#Xe[^\fk_\idXcZXe\Xj`cp
be integrated into the nation’s grid. We reduce our carbon
RELIABILITY: 8JdXik>i`[k_XkXek`Z`gXk\j#[\k\ZkjXe[ footprint and stake a claim to global environmental leadership.
responds to problems rapidly reduces wide-area blackouts to
near zero (and will have a similarly diminishing effect on the NATIONAL ECONOMY: Fg\e`e^k_\^i`[kf`eefmXk`fen`cc
cfjkgif[lZk`m`kp % enable markets to grow unfettered and innovation to flourish.
=fiZfdgXi`jfeÀjjXb\#Zfej`[\ik_\dXib\k$dXb`e^\IJ\Zk
AFFORDABILITY:<e\i^pgi`Z\jn`cci`j\2_fn\m\i#k_\ of the opening of the telephone industry in the 1980s. With
kiXa\Zkfipf]]lkli\Zfjk`eZi\Xj\jn`ccY\]Xidfi\^iX[lXc i\m\el\jf]**Y`cc`feXkk_\k`d\#k_\\ejl`e^gifc`]\iXk`fe
gfjk$JdXik>i`[%JdXik>i`[k\Z_efcf^`\j#kffcj#Xe[ of consumer-centric products and services transformed it into
techniques will also provide customers with new options for X((.Y`cc`fedXib\kXjf])''-%
managing their own electricity consumption and controlling
their own utility bills. GLOBAL COMPETITIVENESS:I\^X`e`e^fli\Xicpc\X[`ejfcXi
and wind will create an enduring green-collar economy.
SECURITY: The Smart Grid will be more resistant to attack
Xe[eXkliXc[`jXjk\ij%Jf]fik`È\[#`kn`ccXcjfdfm\lj
37
SECTION NINE : CONTINUED
EDISON UNBOUND: WHAT’S YOUR STAKE IN ALL THIS?
Enables active participation Consumers are uninformed and Informed, involved, and active
by consumers non-participative with power system consumers - demand response and
distributed energy resources.
Accommodates all generation Dominated by central generation- many Many distributed energy resources
and storage options obstacles exist for distributed energy with plug-and-play convenience focus
resources interconnection on renewables
Enables new products, services Limited wholesale markets, not well Mature, well-integrated wholesale
and markets integrated - limited opportunities for markets, growth of new electricity
consumers markets for consumers
Provides power quality for the Focus on outages - slow response to power Power quality is a priority with a variety
digital economy quality issues of quality/price options - rapid resolution
of issues
Optimizes assets & operates Little integration of operational data with Greatly expanded data acquisition of
efficiently asset management - business process silos grid parameters - focus on prevention,
minimizing impact to consumers
Anticipates and responds to system Responds to prevent further damage- focus Automatically detects and responds
disturbances (self-heals) is on protecting assets following fault to problems - focus on prevention,
minimizing impact to consumer
Operates resiliently against attack Vulnerable to malicious acts of terror and Resilient to attack and natural disasters
and natural disaster natural disasters with rapid restoration capabilities
38
K_\JdXik>i`[Zi\Xk\jmXcl\lgXe[[fnek_\mXcl\Z_X`e#dlZ_c`b\k_\
`ek\ie\k_Xj%8jn\Àm\\og\i`\eZ\[n`k_k_\`ek\ie\k#XIJfi[XYc\#iXg`[Xe[
le`m\ijXcZfddle`ZXk`feZXe\eXYc\jfg_`jk`ZXk\[kiXejXZk`fej#Zi\Xk\
entirely new business models and sweep across society with surprising speed.
Gi`fikfk_\`ek\ie\kÀjX[fgk`fe#dXib\kj[`[eÀk_Xm\k_\XY`c`kpkffg\iXk\Xj
Zfjk$\IJ\Zk`m\cpXe[gif[lZk`m\cpXjk_\p[fkf[Xp%=\ngi\[`Zk\[k_Xkg\fgc\
would engage as seriously with the internet as they have. And no one could
have predicted the revolutionary advancements it has fostered.
J`d`cXicp#n\_X[ef`[\Xk_Xkk_\`ek\ie\knflc[i\mfclk`fe`q\jfdXep
aspects of our lives.
The Smart Grid represents the relatively simple extension of this movement
to power consumption.
K_fdXj<[`jfe#K_\N`qXi[f]D\ecfGXib#nflc[Xggifm\f]k_\\ek\igi`j\
and innovation that drive the Smart Grid. He might even ask what took
ljjfcfe^%E\nk\Z_efcf^`\jXe[glYc`Zgfc`Z`\j#\Zfefd`Z`eZ\ek`m\jXe[
regulations are aligning to bring the Smart Grid to full implementation. Its
success is imperative to the economic growth and vitality of America far
into the future.
We hope that The Smart Grid: An Introduction has given you a clearer
understanding of the need for immediate and concerted action in the
kiXej]fidXk`fef]flieXk`feÀj\c\Zki`ZXc^i`[%Kfc\Xiedfi\#gc\Xj\m`j`k
the websites listed on the following page.
39
RESOURCES
COLUMBIA UNIVERSITY1_kkg1&&nnn%c[\f%ZfcldY`X%\[l&i\j&g`&+[+&k\jkY\[j&JdXik$>i`[$N_`k\$GXg\i%g[]
EEI :
_kkg1&&nnn%\\`%fi^&`e[ljkipV`jjl\j&\c\Zki`Z`kpVgfc`Zp&X[mXeZ\[Vd\k\i`e^V`e]iXjkilZkli\%_kd
_kkg1&&nnn%\\`%fi^&dX^Xq`e\&\[`kfi`XcVZfek\ek&efeXmVjkfi`\j&)''.$'0$'($JdXik%g[]
_kkg1&&nnn%\\`%fi^&dX^Xq`e\&\[`kfi`XcVZfek\ek&efeXmVjkfi`\j&)'',$'($'($JdXik\i%g[]
ELSTER:
_kkg1&&nnn%\\`%fi^&d\\k`e^j&efeXmV)''/$')$'-$aX&>iXpV<cjk\i%g[]
_kkg1&&nnn%\\`%fi^&`e[ljkipV`jjl\j&\c\Zki`Z`kpVgfc`Zp&]\[\iXcVc\^`jcXk`fe&[\Z`[`e^VfeVjdXikVd\k\ij%g[]
GRIDPOINT1_kkg1&&nnn%\c\Zki`Z`kp[\c`m\ip]fild%fi^&g[]j&>i`[gf`ekVJdXik>i`[%g[]
XCEL ENERGY:
Smart Grid City Web site:_kkg1&&nnn%oZ\c\e\i^p%Zfd&OCN<9&:;8&'#*'/'#($($(V(,,*(V+*(+(V+-0*)$*0//+$'V'V'$'#''%_kdc
EPRI INTELLIGRID1_kkg1&&`ek\cc`^i`[%\gi`%Zfd&
SOURCES
Sources for this book include the Department of Energy, the GridWise Alliance, the Galvin Electricity Initiative
and EPRI/Intelligrid.
40
GLOSSARY: COMING TO TERMS WITH THE SMART GRID
AMI:8[mXeZ\[D\k\i`e^@e]iXjkilZkli\`jXk\id[\efk`e^\c\Zki`Z`kpd\k\ijk_Xkd\Xjli\Xe[i\Zfi[ljX^\[XkXXkXd`e`dld#`e_flicp
`ek\imXcj#Xe[gifm`[\ljX^\[XkXkfYfk_Zfejld\ijXe[\e\i^pZfdgXe`\jXkc\XjkfeZ\[X`cp%
AMR:8lkfdXk\[D\k\iI\X[`e^`jXk\id[\efk`e^\c\Zki`Z`kpd\k\ijk_XkZfcc\Zk[XkX]fiY`cc`e^gligfj\jfecpXe[kiXejd`kk_`j[XkXfe\nXp#
usually from the customer to the distribution utility.
ANCILLARY SERVICES: Services that ensure reliability and support the transmission of electricity from generation sites to customer loads. Such
j\im`Z\jdXp`eZcl[\1cfX[i\^lcXk`fe#jg`ee`e^i\j\im\#efe$jg`ee`e^i\j\im\#i\gcXZ\d\eki\j\im\#Xe[mfckX^\jlggfik%
APPLIANCE:8g`\Z\f]\hl`gd\ek#Zfddfecpgfn\i\[Yp\c\Zki`Z`kp#lj\[kfg\i]fidXgXik`ZlcXi\e\i^p$[i`m\e]leZk`fe%<oXdgc\jf]Zfddfe
Xggc`XeZ\jXi\i\]i`^\iXkfij#Zcfk_\jnXj_\ijXe[[`j_nXj_\ij#Zfem\ek`feXciXe^\j&fm\ejXe[d`ZifnXm\fm\ej#_ld`[`È\ijXe[[\_ld`[`È\ij#
kfXjk\ij#iX[`fj#Xe[k\c\m`j`fej%Efk\18ggc`XeZ\jXi\fi[`eXi`cpj\c]$ZfekX`e\[n`k_i\jg\Zkkfk_\`i]leZk`fe%K_lj#\hl`gd\ekjlZ_XjZ\ekiXc
_\Xk`e^Xe[X`iZfe[`k`fe`e^jpjk\djXe[nXk\i_\Xk\ij#n_`Z_Xi\Zfee\Zk\[kf[`jki`Ylk`fejpjk\dj`e_\i\ekkfk_\`igligfj\j#Xi\efk
considered appliances.
CAPITAL COST:K_\Zfjkf]È\c[[\m\cfgd\ekXe[gcXekZfejkilZk`feXe[k_\\hl`gd\eki\hl`i\[]fi`e[ljkipfg\iXk`fej%
CARBON DIOXIDE (CO2):8Zfcfic\jj#f[fic\jj#efe$gf`jfeflj^Xjk_Xk`jXefidXcgXikf]<Xik_ÀjXkdfjg_\i\%:XiYfe[`fo`[\`jXgif[lZkf]
]fjj`c$]l\cZfdYljk`feXjn\ccXjfk_\igifZ\jj\j%@k`jZfej`[\i\[X^i\\e_flj\^XjXj`kkiXgj_\Xk`e]iXi\[\e\i^p iX[`Xk\[Ypk_\<Xik_`ekf
k_\Xkdfjg_\i\Xe[k_\i\YpZfeki`Ylk\jkfk_\gfk\ek`Xc]fi^cfYXcnXid`e^%K_\^cfYXcnXid`e^gfk\ek`Xc>NG f]fk_\i^i\\e_flj\^Xj\j`j
d\Xjli\[`ei\cXk`fekfk_Xkf]ZXiYfe[`fo`[\#n_`Z_Yp`ek\ieXk`feXcjZ`\ek`ÈZZfem\ek`fe`jXjj`^e\[XmXcl\f]fe\( %
CLIMATE CHANGE:8k\idlj\[kfi\]\ikfXcc]fidjf]Zc`dXk`Z`eZfej`jk\eZp#Ylk\jg\Z`Xccpkfj`^e`ÈZXekZ_Xe^\]ifdfe\gi\mX`c`e^Zc`dXk`Z
Zfe[`k`fekfXefk_\i%@ejfd\ZXj\j#½Zc`dXk\Z_Xe^\¾_XjY\\elj\[jpefepdfljcpn`k_k_\k\id½^cfYXcnXid`e^¾2jZ`\ek`jkj#_fn\m\i#k\e[kf
lj\k_\k\id`eXn`[\ij\ej\`eZclj`m\f]eXkliXcZ_Xe^\j`eZc`dXk\#`eZcl[`e^Zc`dXk`ZZffc`e^%
CONGESTION:8Zfe[`k`fek_XkfZZlijn_\e`ejlijZ`\ekkiXej]\iZXgXZ`kp`jXmX`cXYc\kf`dgc\d\ekXccf]k_\gi\]\ii\[jZ_\[lc\j]fi\c\Zki`Z`kp
transmission simultaneously.
DSM:K_`j;\dXe[$J`[\DXeX^\d\ekZXk\^fipi\gi\j\ekjk_\Xdflekf]Zfejld\icfX[i\[lZk`feXkk_\k`d\f]jpjk\dg\Xb[l\kflk`c`kp
programs that reduce consumer load during many hours of the year. Examples include utility rebate and shared savings activities for the
`ejkXccXk`fef]\e\i^p\ijZ`\ekXggc`XeZ\j#c`^_k`e^Xe[\c\Zki`ZXcdXZ_`e\ip#Xe[n\Xk_\i`qXk`fedXk\i`Xcj%@eX[[`k`fe#k_`jZXk\^fip`eZcl[\jXcc
fk_\i;\dXe[$J`[\DXeX^\d\ekXZk`m`k`\j#jlZ_Xjk_\idXcjkfiX^\#k`d\$f]$lj\iXk\j#]l\cjlYjk`klk`fe#d\Xjli\d\ekXe[\mXclXk`fe#Xe[Xep
fk_\ilk`c`kp$X[d`e`jk\i\[;\dXe[$J`[\DXeX^\d\ekXZk`m`kp[\j`^e\[kfi\[lZ\[\dXe[Xe[&fi\c\Zki`Z`kplj\%
DISTRIBUTED GENERATOR: 8^\e\iXkfik_Xk`jcfZXk\[Zcfj\kfk_\gXik`ZlcXicfX[k_Xk`k`j`ek\e[\[kfj\im\%>\e\iXc#Ylkefe$\oZclj`m\#
characteristics of these generators include: an operating strategy that supports the served load; and interconnection to a distribution or sub-
transmission system.
DISTRIBUTION: The delivery of energy to retail customers.
DISTRIBUTION SYSTEM: The portion of the transmission and facilities of an electric system that is dedicated to delivering electric energy
to an end-user.
ELECTRIC GENERATION INDUSTRY: Stationary and mobile generating units that are connected to the electric power grid and can generate
\c\Zki`Z`kp%K_\\c\Zki`Z^\e\iXk`fe`e[ljkip`eZcl[\jk_\½\c\Zki`Zgfn\ij\Zkfi¾lk`c`kp^\e\iXkfijXe[`e[\g\e[\ekgfn\igif[lZ\ij Xe[
`e[ljki`XcXe[Zfdd\iZ`Xcgfn\i^\e\iXkfij#`eZcl[`e^ZfdY`e\[$_\Xk$Xe[$gfn\igif[lZ\ij#Ylk\oZcl[\jle`kjXkj`e^c\$]Xd`cp[n\cc`e^j%
ELECTRIC GENERATOR:8]XZ`c`kpk_Xkgif[lZ\jfecp\c\Zki`Z`kp#Zfddfecp\ogi\jj\[`eb`cfnXkk_flijbN_ fid\^XnXkk_flijDN_ %<c\Zki`Z
generators include electric utilities and independent power producers.
ELECTRIC POWER: The rate at which electric energy is transferred. Electric power is measured by capacity and is commonly expressed in
d\^XnXkkjDN %
ELECTRIC POWER GRID: A system of synchronized power providers and consumers connected by transmission and distribution lines and operated
Ypfe\fidfi\ZfekifcZ\ek\ij%@ek_\Zfek`e\ekXcLe`k\[JkXk\j#k_\\c\Zki`Zgfn\i^i`[Zfej`jkjf]k_i\\jpjk\dj1k_\<Xjk\ie@ek\iZfee\Zk#
k_\N\jk\ie@ek\iZfee\Zk#Xe[k_\K\oXj@ek\iZfee\Zk%@e8cXjbXXe[?XnX``#j\m\iXcjpjk\dj\eZfdgXjjXi\XjjdXcc\ik_Xek_\JkXk\\%^%#k_\
`ek\iZfee\Zkj\im`e^8eZ_fiX^\#=X`iYXebj#Xe[k_\B\eX`G\e`ejlcX2`e[`m`[lXc`jcXe[j %
ELECTRIC SYSTEM RELIABILITY: The degree to which the performance of the elements of the electrical system results in power being delivered
kfZfejld\ijn`k_`eXZZ\gk\[jkXe[Xi[jXe[`ek_\Xdflek[\j`i\[%I\c`XY`c`kp\eZfdgXjj\jknfZfeZ\gkj#X[\hlXZpXe[j\Zli`kp%8[\hlXZp
`dgc`\jk_Xkk_\i\Xi\jlijZ`\ek^\e\iXk`feXe[kiXejd`jj`fei\jfliZ\j`ejkXcc\[Xe[XmX`cXYc\kfd\\kgifa\Zk\[\c\Zki`ZXc[\dXe[gclji\j\im\j
]fiZfek`e^\eZ`\j%J\Zli`kp`dgc`\jk_Xkk_\jpjk\dn`cci\dX`e`ekXZkfg\iXk`feXccp`%\%#n`cc_Xm\jlijZ`\ekXmX`cXYc\fg\iXk`e^ZXgXZ`kp \m\e
X]k\iflkX^\jfifk_\i\hl`gd\ek]X`cli\%K_\[\^i\\f]i\c`XY`c`kpdXpY\d\Xjli\[Ypk_\]i\hl\eZp#[liXk`fe#Xe[dX^e`kl[\f]X[m\ij\\IJ\Zkj
on consumer service.
42 41
GLOSSARY (CONT’D)
ELECTRIC UTILITY:8ep\ek`kpk_Xk^\e\iXk\j#kiXejd`kj#fi[`jki`Ylk\j\c\Zki`Z`kpXe[i\Zfm\ijk_\Zfjkf]`kj^\e\iXk`fe#kiXejd`jj`fefi
[`jki`Ylk`feXjj\kjXe[fg\iXk`fej#\`k_\i[`i\Zkcpfi`e[`i\Zkcp#k_ifl^_Zfjk$YXj\[iXk\jj\kYpXj\gXiXk\i\^lcXkfipXlk_fi`kp\%^%#JkXk\GlYc`Z
J\im`Z\:fdd`jj`fe #fi`jfne\[YpX^fm\ied\ekXcle`kfik_\Zfejld\ijk_Xkk_\\ek`kpj\im\j%<oXdgc\jf]k_\j\\ek`k`\j`eZcl[\1`em\jkfi$
fne\[\ek`k`\j#glYc`Zgfn\i[`jki`Zkj#glYc`Zlk`c`kp[`jki`Zkj#dle`Z`gXc`k`\j#iliXc\c\Zki`ZZffg\iXk`m\j#Xe[JkXk\Xe[=\[\iXcX^\eZ`\j%
ELECTRICITY CONGESTION:8Zfe[`k`fek_XkfZZlijn_\e`ejlijZ`\ekkiXejd`jj`feZXgXZ`kp`jXmX`cXYc\kf`dgc\d\ekXccf]k_\[\j`i\[
transactions simultaneously.
ELECTRICITY DEMAND:K_\iXk\Xkn_`Z_\e\i^p`j[\c`m\i\[kfcfX[jXe[jZ_\[lc`e^gf`ekjYp^\e\iXk`fe#kiXejd`jj`fe#Xe[[`jki`Ylk`fe
facilities.
ENERGY EFFICIENCY, ELECTRICITY:I\]\ijkfgif^iXdjk_XkXi\X`d\[Xki\[lZ`e^k_\\e\i^plj\[Ypjg\Z`ÈZ\e[$lj\[\m`Z\jXe[jpjk\dj#
kpg`ZXccpn`k_flkXIJ\Zk`e^k_\j\im`Z\jgifm`[\[%K_\j\gif^iXdji\[lZ\fm\iXcc\c\Zki`Z`kpZfejldgk`fei\gfik\[`ed\^XnXkk_flij #f]k\e
without explicit consideration for the timing of program-induced savings. Such savings are generally achieved by substituting technologically
dfi\X[mXeZ\[\hl`gd\ekkfgif[lZ\k_\jXd\c\m\cf]\e[$lj\j\im`Z\j\%^%c`^_k`e^#_\Xk`e^#dfkfi[i`m\ n`k_c\jj\c\Zki`Z`kp%<oXdgc\j
`eZcl[\_`^_$\ijZ`\eZpXggc`XeZ\j#\ijZ`\ekc`^_k`e^gif^iXdj#_`^_$\ijZ`\eZp_\Xk`e^#m\ek`cXk`e^Xe[X`iZfe[`k`fe`e^?M8: jpjk\djfiZfekifc
df[`ÈZXk`fej#\ijZ`\ekYl`c[`e^[\j`^e#X[mXeZ\[\c\Zki`Zdfkfi[i`m\j#Xe[_\Xki\Zfm\ipjpjk\dj%
ENERGY SAVINGS:8i\[lZk`fe`ek_\Xdflekf]\c\Zki`Z`kplj\[Yp\e[lj\ijXjXi\jlckf]gXik`Z`gXk`fe`e\e\i^p\ijZ`\eZpgif^iXdjXe[cfX[
management programs.
ENERGY SERVICE PROVIDER: An energy entity that provides service to a retail or end-use customer.
FEDERAL ENERGY REGULATORY COMMISSION (FERC):K_\=\[\iXcX^\eZpn`k_ali`j[`Zk`fefm\i`ek\ijkXk\\c\Zki`Z`kpjXc\j#n_fc\jXc\\c\Zki`Z
iXk\j#_p[if\c\Zki`Zc`Z\ej`e^#eXkliXc^Xjgi`Z`e^#f`cg`g\c`e\iXk\j#Xe[^Xjg`g\c`e\Z\ik`ÈZXk`fe%=<I:`jXe`e[\g\e[\eki\^lcXkfipX^\eZp
n`k_`ek_\;\gXikd\ekf]<e\i^pXe[`jk_\jlZZ\jjfikfk_\=\[\iXcGfn\i:fdd`jj`fe%
FUEL CELL:8[\m`Z\ZXgXYc\f]^\e\iXk`e^Xe\c\Zki`ZXcZlii\ekYpZfem\ik`e^k_\Z_\d`ZXc\e\i^pf]X]l\c\%^%#_p[if^\e [`i\Zkcp`ekf\c\Zki`ZXc
\e\i^p%=l\cZ\ccj[`IJ\i]ifdZfem\ek`feXc\c\Zki`ZXcZ\ccj`ek_Xkk_\XZk`m\dXk\i`XcjjlZ_Xj]l\cXe[fop^\eXi\efkZfekX`e\[n`k_`ek_\Z\ccYlk
Xi\jlggc`\[]ifdflkj`[\%@k[f\jefkZfekX`eXe`ek\id\[`Xk\_\XkZpZc\#Xj[fdfjkfk_\i\c\Zki`ZXc^\e\iXk`fek\Z_e`hl\j%
GENERATION: K_\gifZ\jjf]gif[lZ`e^\c\Zki`Z\e\i^pYpkiXej]fid`e^fk_\i]fidjf]\e\i^p2Xcjf#k_\Xdflekf]\c\Zki`Z\e\i^pgif[lZ\[#
expressed in kilowatthours.
GLOBAL WARMING: An increase in the near surface temperature of the Earth. Global warming has occurred in the distant past as the result
f]eXkliXc`eÉl\eZ\j#Ylkk_\k\id`jkf[Xpdfjkf]k\elj\[kfi\]\ikfk_\nXid`e^jfd\jZ`\ek`jkjgi\[`Zkn`ccfZZliXjXi\jlckf]`eZi\Xj\[
anthropogenic emissions of greenhouse gases.
GREENHOUSE GASES: K_fj\^Xj\j#jlZ_XjnXk\imXgfi#ZXiYfe[`fo`[\#e`kifljfo`[\#d\k_Xe\#_p[if]clfifZXiYfej?=:j #
g\i]clfifZXiYfejG=:j Xe[jlc]li_\oX]clfi`[\#k_XkXi\kiXejgXi\ekkfjfcXij_fik$nXm\ iX[`Xk`feYlkfgXhl\kfcfe^$nXm\`e]iXi\[
iX[`Xk`fe#k_ljgi\m\ek`e^cfe^$nXm\iX[`Xek\e\i^p]ifdc\Xm`e^<Xik_ÀjXkdfjg_\i\%K_\e\k\]]\Zk`jXkiXgg`e^f]XYjfiY\[iX[`Xk`fe
and a tendency to warm the planet’s surface.
INTERMITTENT ELECTRIC GENERATOR OR INTERMITTENT RESOURCE: An electric generating plant with output controlled by the natural
mXi`XY`c`kpf]k_\\e\i^pi\jfliZ\iXk_\ik_Xe[`jgXkZ_\[YXj\[fejpjk\di\hl`i\d\ekj%@ek\id`kk\ekflkglkljlXccpi\jlckj]ifdk_\[`i\Zk#efe$
jkfi\[Zfem\ij`fef]eXkliXccpfZZlii`e^\e\i^pÉlo\jjlZ_XjjfcXi\e\i^p#n`e[\e\i^p#fik_\\e\i^pf]]i\\$Éfn`e^i`m\ijk_Xk`j#ile$f]$i`m\i
_p[if\c\Zki`Z`kp %
INTERRUPTIBLE LOAD:K_`j;\dXe[$J`[\DXeX^\d\ekZXk\^fipi\gi\j\ekjk_\Zfejld\icfX[k_Xk#`eXZZfi[XeZ\n`k_ZfekiXZklXc
XiiXe^\d\ekj#ZXeY\`ek\iilgk\[Xkk_\k`d\f]XeelXcg\XbcfX[Ypk_\XZk`fef]k_\Zfejld\iXkk_\[`i\Zki\hl\jkf]k_\jpjk\dfg\iXkfi%K_`j
kpg\f]ZfekifcljlXccp`emfcm\jcXi^\$mfcld\Zfdd\iZ`XcXe[`e[ljki`XcZfejld\ij%@ek\iilgk`Yc\CfX[[f\jefk`eZcl[\;`i\ZkCfX[:fekifc%
LINE LOSS:<c\Zki`Z\e\i^pcfjkY\ZXlj\f]k_\kiXejd`jj`fef]\c\Zki`Z`kp%DlZ_f]k_\cfjj`jk_\idXc`eeXkli\%
LOAD (ELECTRIC):K_\Xdflekf]\c\Zki`Zgfn\i[\c`m\i\[fii\hl`i\[XkXepjg\Z`ÈZgf`ekfigf`ekjfeXjpjk\d%K_\i\hl`i\d\ekfi`^`eXk\jXk
the energy-consuming equipment of the consumers.
LOAD CONTROL PROGRAM: A program in which the utility company offers a lower rate in return for having permission to turn off the air
conditioner or water heater for short periods of time by remote control. This control allows the utility to reduce peak demand.
OFF PEAK:G\i`f[f]i\cXk`m\cpcfnjpjk\d[\dXe[%K_\j\g\i`f[jf]k\efZZli`e[X`cp#n\\bcp#Xe[j\XjfeXcgXkk\iej2k_\j\fIJ$g\Xbg\i`f[j[`IJ\i
for each individual electric utility.
ON PEAK:G\i`f[jf]i\cXk`m\cp_`^_jpjk\d[\dXe[%K_\j\g\i`f[jf]k\efZZli`e[X`cp#n\\bcp#Xe[j\XjfeXcgXkk\iej2k_\j\fe$g\Xbg\i`f[j
differ for each individual electric utility.
OUTAGE:K_\g\i`f[[li`e^n_`Z_X^\e\iXk`e^le`k#kiXejd`jj`fec`e\#fifk_\i]XZ`c`kp`jflkf]j\im`Z\%
42
PEAK DEMAND OR PEAK LOAD:K_\dXo`dldcfX[[li`e^Xjg\Z`È\[g\i`f[f]k`d\%
PEAKER PLANT OR PEAK LOAD PLANT:8gcXekljlXccp_flj`e^fc[#cfn$\ijZ`\eZpjk\Xdle`kj#^XjkliY`e\j#[`\j\cj#figldg\[$jkfiX^\
hydroelectric equipment normally used during the peak-load periods.
PEAKING CAPACITY::XgXZ`kpf]^\e\iXk`e^\hl`gd\ekefidXccpi\j\im\[]fifg\iXk`fe[li`e^k_\_flijf]_`^_\jk[X`cp#n\\bcp#fij\XjfeXc
loads. Some generating equipment may be operated at certain times as peaking capacity and at other times to serve loads on an around-the-
clock basis.
RATE BASE:K_\mXcl\f]gifg\ikplgfen_`Z_Xlk`c`kp`jg\id`kk\[kf\XieXjg\Z`È\[iXk\f]i\klieXj\jkXYc`j_\[YpXi\^lcXkfipXlk_fi`kp%K_\
rate base generally represents the value of property used by the utility in providing service and may be calculated by any one or a combination
f]k_\]fccfn`e^XZZflek`e^d\k_f[j1]X`imXcl\#gil[\ek`em\jkd\ek#i\gif[lZk`feZfjk#fifi`^`eXcZfjk%;\g\e[`e^fen_`Z_d\k_f[`jlj\[#k_\
iXk\YXj\`eZcl[\jZXj_#nfib`e^ZXg`kXc#dXk\i`XcjXe[jlggc`\j#[\[lZk`fej]fiXZZldlcXk\[gifm`j`fej]fi[\gi\Z`Xk`fe#Zfeki`Ylk`fej`eX`[f]
ZfejkilZk`fe#Zljkfd\iX[mXeZ\j]fiZfejkilZk`fe#XZZldlcXk\[[\]\ii\[`eZfd\kXo\j#Xe[XZZldlcXk\[[\]\ii\[`em\jkd\ekkXoZi\[`kj%
RATE CASE:8gifZ\\[`e^#ljlXccpY\]fi\Xi\^lcXkfipZfdd`jj`fe#`emfcm`e^k_\iXk\jkfY\Z_Xi^\[]fiXglYc`Zlk`c`kpj\im`Z\%
RATE FEATURES:Jg\Z`XciXk\jZ_\[lc\jfikXi`IJjfIJ\i\[kfZljkfd\ijYp\c\Zki`ZXe[&fieXkliXc^Xjlk`c`k`\j%
RATE OF RETURN: The ratio of net operating income earned by a utility is calculated as a percentage of its rate base.
RATE OF RETURN ON RATE BASE:K_\iXk`ff]e\kfg\iXk`e^`eZfd\\Xie\[YpXlk`c`kp#ZXcZlcXk\[XjXg\iZ\ekX^\f]`kjiXk\YXj\%
RATE SCHEDULE (ELECTRIC):8jkXk\d\ekf]k_\ÈeXeZ`Xck\idjXe[Zfe[`k`fej^fm\ie`e^XZcXjjfiZcXjj\jf]lk`c`kpj\im`Z\jgifm`[\[kfX
customer. Approval of the schedule is given by the appropriate rate-making authority.
RATEMAKING AUTHORITY: 8lk`c`kpZfdd`jj`feÀjc\^XcXlk_fi`kpkfÈo#df[`]p#Xggifm\#fi[`jXggifm\iXk\jXj[\k\id`e\[Ypk_\gfn\ij^`m\e
k_\Zfdd`jj`feYpXJkXk\fi=\[\iXcc\^`jcXkli\%
RATES:K_\Xlk_fi`q\[Z_Xi^\jg\ile`kfic\m\cf]Zfejldgk`fe]fiXjg\Z`È\[k`d\g\i`f[]fiXepf]k_\ZcXjj\jf]lk`c`kpj\im`Z\jgifm`[\[kfX
customer.
RELIABILITY (ELECTRIC SYSTEM): A measure of the ability of the system to continue operation while some lines or generators are out of service.
I\c`XY`c`kp[\Xcjn`k_k_\g\i]fidXeZ\f]k_\jpjk\dle[\ijki\jj%
RENEWABLE ENERGY RESOURCES: Energy resources that are naturally replenishing but flow-limited. They are virtually inexhaustible in duration
Ylkc`d`k\[`ek_\Xdflekf]\e\i^pk_Xk`jXmX`cXYc\g\ile`kf]k`d\%I\e\nXYc\\e\i^pi\jfliZ\j`eZcl[\1Y`fdXjj#_p[if#^\fk_\idXc#jfcXi#
n`e[#fZ\Xek_\idXc#nXm\XZk`fe#Xe[k`[XcXZk`fe%
SOLAR ENERGY:K_\iX[`Xek\e\i^pf]k_\jle#n_`Z_ZXeY\Zfem\ik\[`ekffk_\i]fidjf]\e\i^p#jlZ_Xj_\Xkfi\c\Zki`Z`kp%
TARIFF: A published volume of rate schedules and general terms and conditions under which a product or service will be supplied.
THERMAL ENERGY STORAGE:K_\jkfiX^\f]_\Xk\e\i^p[li`e^lk`c`kpfIJ$g\Xbk`d\jXke`^_k#]filj\[li`e^k_\e\ok[Xpn`k_flk`eZlii`e^
daytime peak electric rates.
THERMAL LIMIT:K_\dXo`dldXdflekf]gfn\iXkiXejd`jj`fec`e\ZXeZXiipn`k_flkjlIJ\i`e^_\Xk$i\cXk\[[\k\i`fiXk`fef]c`e\\hl`gd\ek#
particularly conductors.
TIME-OF-DAY PRICING: A special electric rate feature under which the price per kilowatthour depends on the time of day.
TIME-OF-DAY RATE: The rate charged by an electric utility for service to various classes of customers. The rate reflects the different costs of
providing the service at different times of the day.
TRANSMISSION AND DISTRIBUTION LOSS:<c\Zki`Z\e\i^pcfjk[l\kfk_\kiXejd`jj`feXe[[`jki`Ylk`fef]\c\Zki`Z`kp%DlZ_f]k_\cfjj`j
thermal in nature.
TRANSMISSION (ELECTRIC) (VERB): The movement or transfer of electric energy over an interconnected group of lines and associated
equipment between points of supply and points at which it is transformed for delivery to consumers or is delivered to other electric systems.
Transmission is considered to end when the energy is transformed for distribution to the consumer.
UTILITY GENERATION: Generation by electric systems engaged in selling electric energy to the public.
UTILITY-SPONSORED CONSERVATION PROGRAM: 8epgif^iXdjgfejfi\[YpXe\c\Zki`ZXe[&fieXkliXc^Xjlk`c`kpkfi\m`\n\hl`gd\ekXe[
ZfejkilZk`fe]\Xkli\j`eYl`c[`e^jXe[X[m`j\fenXpjkf`eZi\Xj\k_\\e\i^p\ijZ`\eZpf]Yl`c[`e^j%8cjf`eZcl[\[Xi\lk`c`kp$jgfejfi\[gif^iXdj
kf\eZfliX^\k_\lj\f]dfi\\e\i^p$\ijZ`\ek\hl`gd\ek%@eZcl[\[Xi\gif^iXdjkf`dgifm\k_\\e\i^p\ijZ`\eZp`ek_\c`^_k`e^jpjk\dfi
Yl`c[`e^\hl`gd\ekfik_\k_\idXc\ijZ`\eZpf]k_\Yl`c[`e^j_\cc%
WIND ENERGY:B`e\k`Z\e\i^pgi\j\ek`en`e[dfk`fek_XkZXeY\Zfem\ik\[kfd\Z_Xe`ZXc\e\i^p]fi[i`m`e^gldgj#d`ccj#Xe[\c\Zki`Zgfn\i
generators.
43
www.energy.gov