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 APRIL/MAY 2015 • VOL. 28 • NO. 3

DIGITAL EDITION contents

2015 FLEET MANAGEMENT REPORT

www.electricity-today.com

22 SECRET TO FLEET
MANAGEMENT SUCCESS
How to make the most of innovative tools and
best practices

28 EXPLORING ALTERNATIVE
VEHICLE OPTIONS
SUBSCRIBE FOR FREE How to improve mobile functionality for utility workers

www.electricity-today.com/subscribe-et 30 CONNECTING WORKERS TO VEHICLES

How to improve information flow with
CHANNELS tech-enabled fleets

Underground T&D
10 Underground Smart Grid
34 THE GREAT DEBATE
Evaluating the benefits of fleet tracking solutions

FEATURES
Smart Grid
16 Moving Smart Grid to 38 GROUNDING SYSTEM
the field MAINTENANCE GUIDE
Standards addressing design and
measurement procedures
Electrical Substations
54 Demystifying Ethernet 42 A DANGER TO RELIABILITY
cable selection How the power industry is responding to
geomagnetic disturbances

58 Power Transformers 46 TRACKING THE SMART

Crunching the numbers for
transformer loss costs
CITY TREND
How utilities can profit from forthcoming
changes and technologies

DEPARTMENTS
BONUS ARTICLE
www.e l e ctricit y-t oday.com
6
7
Editor’s Desk
Advertiser Index
Transmission
Planning 50 7 Electrical Training
Protecting the
physical security Read Our Expanded
of the power grid
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editor’s desk Send your feedback and questions to:
phill@electricityforum.com

UNDERGROUND SMART GRID STANDARDS APRIL/MAY 2015 • VOL. 28 • NO. 3

H
undreds of new industry standards, according to the Na­ PUBLISHER/PRESIDENT
tional Institute of Standards and Technology (NIST), will Randolph W. Hurst
be required in order to provide an efficient and effective E-Mail: randy@electricityforum.com
Smart Grid. Industry standards currently available or still in de­
velopment provide guidance and governance over a multitude of EDITOR-IN-CHIEF
Phill Feltham
utility operations, including underground facilities.
E-Mail: phill@electricityforum.com
Doug Houseman, an IEEE Member and vice president of Tech­­
nical Innovation for EnerNex Corporation, and a leading ex­
NATIONAL SALES MANAGER
pert on the usage of Smart Grid technologies for underground Tammy Williams
transmission and distribution systems, says that, currently, more E-Mail: tammy@electricityforum.com
than 200 standards exist for governing new technologies in un­
der­ground systems. MAGAZINE CIRCULATION
Industry standard organizations such as the IEEE Standards Colleen Flaherty
Association, the International Electrotechnical Commission, and E-Mail: colleen@electricityforum.com
the North American Energy Standards Board (NAESB) have all
contributed to developing guidelines to govern Smart Grid technologies in the power sector. The Smart WEB ADVERTISING SALES
Grid Interoperability Panel (SGIP) has a catalog of standards; some of the 60-plus standards in the catalog Barbara John
have direct application to the underground grid. E-Mail: barbara@electricityforum.com

STANDARD PURPOSE WEBSITE ADMINISTRATOR

IEEE 1901: “Standard for
Broadband over Power Line
Networks: Medium Access Control
and Physical Layer Specifications”
NISTIR 7628: “Guidelines for
Smart Grid Cybersecurity”
IEEE C37.238: “Standard Profile
for Use of IEEE 1588 Precision
Time Protocol in Power System
Applications”
IEEE C37.239: “Standard for
Common Format for Event Data
Exchange (COMFEDE) for Power
Systems”
Alla Krutous
Allows data to be sent from one location to another
E-Mail: alla@electricityforum.com
underground over the actual conductor, thus minimizing the
number of locations that communications equipment has to ART DIRECTOR
be deployed Jason Praskey
Presents an analytical framework that organizations can use E-Mail: jason@electricityforum.com
to develop effective cybersecurity strategies tailored to their
CONTACT US:
particular combinations of Smart Grid-related characteristics,
Web Site www.electricity-today.com
risks, and vulnerabilities including the underground grid
E-mail hq@electricityforum.com
Specifies a common profile for use of IEEE 1588-2008 Precision
Time Protocol (PTP) in the power system, since many locations Phone 905.686.1040
don’t have direct access to global positioning system (GPS)
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No doubt, new industry standards will help enhance the effectiveness of Smart Grid technologies in under­ The contents of this publication may not be
reproduced in whole or in part without prior
ground power facilities. Moreover, these new standards will challenge manufacturers and vendors to continue permission from the publisher.
improving the functionality of these technologies. Lastly, the aforementioned standards provide methods that
can help electric utilities more effectively provide reliable power to their customers. ET FOLLOW US ON:
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www.twitter.com/theEForum
Editor-in-Chief

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 ADVERTISER INDEX
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American Connectors, Inc. 11 www.americanconnectors.com
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High Voltage, Inc. 13 www.hvinc.com
Hubbell Power Systems, Inc. 4 www.hubbellpowersystems.com
ICUEE 2015 63 www.icuee.com
LaPrairie Inc. 19 www.laprairieinc.com
Lineman’s Testing Laboratories (LTL) 1 www.ltlutilitysupply.com
Mattracks 33 www.mattracks.com
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Motion Computing, Inc. 25 www.motioncomputing.com
Quantum Technology Sciences 18 www.QTSI.com
Red Phase Instruments 17 www.redphase.com.au
Schneider Electric 15 www.schneider-electric.com
Tallman Equipment Co., Inc. 3 www.tallmanequipment.com
UTS Consultants Inc. 31 www.utsconsultants.ca
Valard 37 www.valard.com
Yale Cordage 26 www.yalecordage.com
Youngstown Glove Company 14 www.ytgloves.com
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UNDERGROUND T&D CHANNEL
E R G
U N D
T H E G R I D
A R T
SM
improve system reliability and resilience
BY PHILL FELTHAM, Editor-in-Chief
I
n recent years, the cost to bury high-voltage power lines has
decreased dramatically. The American Transmission Company
re­ports that installation costs for underground trans­mission
lines (over 100 kilovolts) are now only 2.5 to 10 times the cost
of an equivalent overhead line. Consequently, the number of
un­derground transmission line projects has ex­ploded in re­cent
years and the number of underground high-vol­tage pow­er lines
operating in the United States have dram­atically increased.
To date, overhead lines, for the most part, have been first
choice for utilities interested in adding new distribution to the
power grid. Un­derground distribution has remained their second
choice due to cost, accessibility, worker safety, and other
reasons. However, the adoption of underground lines is gaining
traction in the industry, due to their resistance to many forms of
natural disasters, and the desire of many real estate developers
to reduce the visibility of electrical infrastructure.Despite the
recent interest in underground distribution, the aforementioned
issues, par­tic­u­larly accessibility, pose difficulties for workers
who must maintain and, more importantly, mon­itor underground
power lines and facilities. One option available to address the
monitoring issue, among others, is Smart Grid technologies.
Many utilities either are in the process of im­plementing—or
already have—implemented an Underground Smart Grid (that
is, integrated Smart Grid technologies with their underground
distrib­ution systems). However, implementing these technologies
to underground facilities comes with a higher level of difficulty.
Utilities must overcome key challenges in or­der to allow
for the level of interconnection, in­tegration and data sharing
that is envisioned for a truly operational Underground Smart
Grid. In this issue’s Underground T&D Channel, Elec­­tricity
Today Magazine connects with Doug House­­­man who is one
of the leading experts in the field to provide further insight
on some of the major issues surrounding the ad­vance­
ment of the Underground Smart Grid. House­man is an IEEE
Senior Member, and vice pres­ident of technical innovation
for the Ener­Nex Corpor­ation. He provides insight on tech­
nologies, stan­dards, and challenges the util­ity industry faces
moving forward.
10 | APRIL/MAY 2015
O U N D
R
Exploring technologies that
Q: Why are many utilities pursuing Smart Grid
Photo credit (manhole cover): Joey Gannon
technologies for underground T&D systems?
Migration to dense, urban areas is putting a strain
A: on existing under­ground infrastructures in many
com­munities across the nation. As a response to
this, utilities are modernizing their underground
infrastructure to improve effi­cien­cy of the power grid (reduced
losses, im­proved hosting of distributed energy resources, among
others), as well as to improve the grid’s reli­abil­ity and resiliency—
always a top priority for elec­tric utilities.
The growing use of distributed energy re­sources (DER) equipment
in urban areas is creating chal­lenges. Increased usage is happening
in areas where the available underground real estate is already
densely populated with communications systems, subways, water
and sewage lines, gas mains, fiber optic, and other utilities.
What’s more, cutting open roads to install new conductors
in downtown areas is heavily frowned on by local citizens,
since most streets are already congested—even without any
con­struction. Thus, adding intelligence and re­mote controls
increases the longevity and resiliency of a utility’s existing
infrastructure with a minimal impact on citizens.
Other difficulties include moving infor­ma­tion from
underground locations via com­mun­ications to a control center
and overcoming data acquisition limits of legacy control
systems. Fin­ally, some required equipment such as solid-state
transformers, nano-crystal conductors, and high-density energy
storage has yet to reach com­mer­cial viability.
What Smart Grid technologies (for example,
Q: automation, monitoring, wireless, storm hardening,
security, data man­agement, and sensors) are
utilities pursuing for underground T&D systems?
A:
The technologies that are going to make a significant
difference in the underground system will start with
sensors, which form the basis of any improvement in
intelligence in the underground grid. By sensors, of
course, I am referring to the “Internet of Things”: sensors that soon
will be able to talk to each other.
FREE Subscription: www.electricity-today.com

Q: Utilities appear to have
multiple technologies at
their dis­posal to improve
their underground oper­
ations. Please elab­orate on the
functions and capabilities of some of
these tech­nologies.
The benefits for each of these
A: underground technologies
would fill pages. Adding
sensors alone provide more
than 50 cur­rently identified applications—
even without adding any auto­mation
equipment to implement the learnings
remotely. As an exam­ple, sensors provide
a wide range of applications, including
the ability to monitor the state of the air
in a manhole, tracking the exact location
of a fault in the conductor and precisely
sensing the characteristics of the power
flowing in the underground system.
Knowing the state of the air in a
manhole can mean the prevention of
manhole explosions or a safer and rapid
entry into a manhole, in case of an emer­
gency. Sensors can identify the state of
the air beforehand, which means entry
teams will know with certainty that the air
in the manhole is safe. Knowing the exact
location of a fault in the conductor leads to
dramatically shorter repair times, which is
always of utmost importance. In addition,
knowing specific power characteristics can
help determine when to use capacitor banks
or when to switch loads onto a dif­ferent
circuit to pre­vent overloads.
The “Internet of Things” is
Q: considered a network of
“things” (that is, physical
objects), which are embedded
with elec­tronics, networks, sensors, and
con­­nec­tivity. This concept is starting
to make waves in the mainstream.
However, not everyone has a full scope
on the “Internet of Things”. Can you
provide some specific examples from a
utility perspective?
FREE Subscription: www.electricity-today.com
Utility workers tend to a
flooded cable chamber in
downtown Toronto
A:
One example is conductors are the underground grid currently operates
Photo credit (street work): Toronto Hydro
now be­ing manufactured with with a large number of mute autonomous
sen­sors built in­side the core of devices, once the sensors in the differing
some of their strands, allowing devices are communicating with each
a set of sensors to be deployed at known other and with the operations center,
intervals all the way along the conductor. operators will be able to set different
Many other sensors can be mounted parameters in the existing autonomous
around insul­ated lines that are already equipment, allowing them to operate
installed at access points (for example, robustly in different weather and grid
manholes) to measure vol­tage, power flow,
outages, and other conditions. Once
conditions. For instance, protection
devices can be set to allow reverse
utilities deploy sensors such as these, power flow from distributed generation
communications be­tween underground on nice days, and set to prevent it in
lo­ca­tions and an operation cen­ter can thunderstorms—protecting appliances,
occur. Communications is the second set computers and other equipment from a
of technologies that utilities will pursue for lightning strike.
building an improved Underground
Smart Grid.
Communications will range from
cellular com­mun­ications to radios
to fiber optic cables. In each case, Experience the Ease
the introduction of communications
provides the ability to bring in the of Installation
third round of intelligence: that being
automation systems, including
switching, automated capacitor banks,
remote control of inverters, and other
automation. At the operations center,
MC CABLE
new distribution management systems,
data storage systems, and anal­ytics with
improved capabilities will be deployed
to take advantage of the sensors
and controls in the field; adding both
CONNECTORS
physical and cybersecurity to keep the
systems secure. These capabilities
will enable the ad­dition of un­derground
storage systems, and other com­ponents
that will allow even more flexibility and
resiliency to the underground grid.
What role does a utility’s Installs 3X Faster
Q: com­mun­­ication system
play in the Un­der­ground Easily Inspectable
Smart Grid?
Simple, Reliable
Communications provides
A: the back­bone to move
information to and from A merican Connectors
equipment in the field and www.americanconnectors.com
the operations center. While
APRIL/MAY 2015 | 11

Additionally, communications provides support for security
monitoring, outage notification, and the ability to deploy
automation as systems instead of individual devices that act in an
uncoordinated fashion, as many of the existing legacy systems
deployed today in the grid were forced to be because of the lack
of communications capability.
Automation is another Smart Grid function that
Q: allows electric utilities to acquire data, control
devices, and monitor systems, to name a few. How
can automation systems benefit the Underground
Smart Grid?
12 | APRIL/MAY 2015
IMPROVING INFRASTRUCTURE
Toronto Hydro apprentice Matt Antonacci peers out
of an underground cable chamber to take in the view
overlooking PanAm Village. Toronto Hydro has been
building and improving infrastructure to provide
power to the village. Due to the location, the water
table is high and crews must pump water out of the
chambers on a regular basis.
A:
Automation systems allow the operators to operate
Photo credit (worker): Toronto Hydro
the grid remotely in both overhead and underground
facilities, building on the knowledge provided by the
sensors and the infrastructure created by adding
communications. Operators can use automation systems to
reduce the time gap between the identification and the potential
resolution of an issue, allowing, for instance, switching around
a fault in the grid, while balancing the load across the remaining
circuits in the area, so that the initial blackout can be quickly
resolved for most customers.
Additionally, automation provides utilities with the ability
to quickly balance load across circuits and phases in the
grid. Furthermore, automation systems allow the operator to
improve the power quality that is delivered to customers. Again,
a wide range of additional applications exist for automation
systems including increasing the hosting capacity of the grid
for distributed energy resources (DER), which include resources
such as electricity storage, solar photovoltaics, small natural gas-
fueled generators, and combined heat and power plants that are
connected to the distribution system.
Q:
How does data storage and analytics help the
utility’s Underground Smart Grid?
Data storage and analytics allows massive amounts
A: of data to be retrieved from the field and used for a
wide variety of purposes, starting from modeling and
simulation of the current protection schemes, which
allows the utility to improve how they protect the underground
grid. Additionally, utilities can use analytics to locate and treat
equipment requiring maintenance or replacement parts. Sensors
alert operators before equipment failure, thus preventing
potential downtime and reducing the risk of accidents. Lastly,
utility executives can use data for planning and modeling to allow
both for forecasting and to prioritize capital expenditures that will
best improve the operation of the grid.
Q:
Utilities who implement Smart Grid technologies
face other challenges besides extreme weather
and aging infrastructure. A heavy reliance on
digital technologies presents utilities with a
host of security vulnerabilities as well as threats. How can
an Underground Smart Grid benefit from physical and
cybersecurity solutions?
FREE Subscription: www.electricity-today.com
 DIGGING TECHNOLOGIES
Utility contractors are offering electric utilities new
technologies to assist in not only monitoring, but
digging holes to install new poles. For example,
Toronto Hydro’s contractor, Super Sucker now
offers a truck that cuts into the sidewalk for new
poles. This tool removes jack hammers and dust,
ripped up sidewalks, and increases cost efficiency
and productivity. Moreover, the work area is neater,
safer and back to normal for pedestrians much faster.

Physical and cybersecurity provide both improved safety of life
and equipment, as well as the knowledge that an outside party
is not attempting to attack the grid, either physically or via a
cyber-attack. For example, security technologies can improve
Photo credit (hole): Toronto Hydro
utility capital project include, from planning to engineering,
procurement, installation, communications, integration,
software, training and operations. What are some of the costs
associated with implementing Smart Grid technologies to

the physical safety of the underground infrastructure—and those
working in it—by rapidly alerting operators of unauthorized
personnel or intruders who have entered a manhole.
Subsequently, operators can dispatch the appropriate authorities
to remove the unauthorized individuals from the manhole quickly.
In every case, many more applications could be discussed.
underground T&D systems?
While the cost of installing these technologies may
A: seem great, the alternative option is to install additional
infrastructure, including miles and miles of new
conductors in many areas. With underground installation
running between $300,000 and $4,000,000 a mile (in almost every

Q:
Utility executives know that the implementation case), extending the life of the existing infrastructure with Smart Grid
of any Smart Grid project is a large investment. technologies is significantly cheaper than leaving the intelligence of
The range of costs matches the costs that any the power grid alone and just installing more conductors.

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 Installation is more complex than overhead, because of the
need to access the underground system at existing access points
and the need to provide communications from an underground
location, instead of at the top of a pole. In many cases, the access
points are in the middle of heavily trafficked streets, so installing
antennas for cellular or radio-based systems can be expensive.
These systems have to be built to survive heavy vehicles such as
100-plus ton trucks, rolling over the top of them, and/or factors,
such as a snow plow hitting the edges of the antennas.

Q:
Worker safety is paramount for electric utilities.
What are some of the safety concerns associated
with implementing Smart Grid technologies to
underground T&D systems and how can these
systems improve electrical safety?

As previously mentioned, the first safety improvement

A: is knowing the gas mix in manholes, both improving
the safety for workers who have to enter manholes,
and at the same time minimizing manhole explosions.
Others include reducing the amount of time that a live conductor
can be sticking out of the ground, which obviously creates
a potential safety hazard, and minimizing the chance that
transformers and other equipment will be overloaded which,
ultimately reduces the chance of equipment failure.
Another important safety item is the ability to quickly ascertain
which manholes and underground areas are flooding. This allows
crews to be rapidly dispatched to pump the location if the existing
drainage system is failing to keep up with rising water. As I am
sure you can imagine, many other safety-related improvements
along the same vein can come from the deployment of sensors,
communications, and controls. ET

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SMART GRID CHANNEL
MOVING
SMART
GRID
TO THE
FIELD Intelligent planning for a successful deployment plan
BY JOHN FINNIGAN, Environmental Defense Fund
B
en Franklin famously said, “If you fail to plan, you’re
planning to fail”. This saying certainly holds true for
Smart Grid deployments, which can cost utilities several
hundred million dollars. Given these high stakes, effective
planning is essential.
Many North American electric utilities have installed
Smart Grid systems. Currently, 25 percent of U.S. electricity
customers have smart meters, a key component of the Smart
Grid. Some early deployments were rocky, but utilities have
learned valuable lessons. Utilities have incorporated these
lessons learned into the planning process for recent Smart Grid
deployments. A well-thought-out Smart Grid deployment plan
should address strategic purpose, roadmap, technologies,
PURPOSE OBJECTIVES
Enable informed participation by consumers in retail
and wholesale energy markets
Accommodate all types of central and distributed
generation and storage options
Enable new products, services, and markets
Provide for power quality for a range of necessities
by all types of consumers
Optimize asset utilization and operating efficiency of
the electric power system
Anticipate and respond to system disturbances
Operate resiliently to attacks and natural disasters
16 | APRIL/MAY 2015
implementation, customer impacts, new service, customer
education, as well as cybersecurity and data privacy.
STRATEGIC PURPOSE
A strategic purpose identifies the utility’s objectives for
deploying Smart Grid technologies. Additionally, a strategic
purpose outlines guiding principles that will govern the project.
The U.S. Department of Energy (DOE) developed a list of seven
functional characteristics of a Smart Grid, which it uses to
oversee the Smart Grid Investment Grant Program. The Smart
Grid plan’s strategic purpose can incorporate these broad
functional objectives (refer to “Purpose Objectives” sidebar).
ROADMAP
The Smart Grid deployment plan should provide a step-by-
step overview for each phase of deployment, in chronological
order. Additionally, the roadmap should cover each step
in the sequence beginning with planning the Smart Grid
deployment through using the new equipment and processes
in everyday business operations. The roadmap should include
ROADMAP TO DEPLOYMENT
Key steps necessary for planning
1. Customer education
2. Selecting and purchasing new equipment and
technologies
3. Designing new business processes
4. Installing field equipment and back-office
infrastructure
5. Testing and maintenance
6. Employee training
7. Implementing new business processes
8. Managing installation issues and customer issues
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 a timeline describing the date of each step from introduction to
completion. The roadmap should include the following key steps
in the deployment sequence.

TECHNOLOGIES
Describe the technologies selected by the utility and explain how
these technologies will function together as a unified system.
Generally, the Smart Grid deployment plan should discuss the
information systems and technologies used to read customers’
electricity usage data; explain how the technologies will
transmit the data to the utility; and how the utility’s meter data
management system will store and process the data.
Additionally, the plan should describe how usage data would
be shared with customers. This section can also explain how
the utility’s energy information management system will monitor
the new information and use it to improve grid operations. The
billing, customer communications, and vendor communications
systems are also important components of this section.

IMPLEMENTATION
Explain how the utility will manage the project and coordinate
the activities of the different departments involved in
the deployment. Several departments will work on the
implementation of the project. These departments may include
meter reading, electric operations, maintenance, information
technology, revenue management, billing, call center, marketing,
rates, and regulatory affairs.
The Smart Grid deployment plan should explain the activities
for which each department will be responsible and how the
departments will interact during the Smart Grid deployment.
Selecting a capable project manager to coordinate the activities of
the different departments is essential, and the plan should explain
how the project manager would oversee the Smart Grid rollout.

Smart meters are an integral

part of the Smart Grid

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The Smart Grid will
enable new products
and services.
CUSTOMER IMPACT
Identify how the Smart Grid deployment
plan will affect customers. Additionally,
outline the changes that customers will
experience in their electricity service.
Changes include meters, meter
data, billing, collection, connection/
disconnection of service, and
customer service.
Customers will experience changes
in the information received from the
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utility and in their everyday interactions
with the utility. A worker will visit
the customer’s home to change the
customer’s existing meter with a smart
meter. After installation, service can be
connected and disconnected remotely.
The utility’s deployment plan may
include home area networks that allow
customers to monitor energy usage.
When service outages occur, the utility
will now be able to detect whether
electricity is being delivered to the
customer’s home. The utility bill will
have more detailed information. The
plan should inform customers of
these changes regarding how they
will interact with the utility after the
Smart Grid deployment is completed.
NEW SERVICES
Identify what new products and
services, including new rate plans,
the utility will provide after the smart
meters are installed. The Smart Grid
system will enable new products
and services, such as distributed
generation, storage, electric
vehicles, home energy management
networks, and automated demand
response. The utility will be able
to offer a variety of new time-
based rate plans. The Smart Grid
deployment plan should describe the
new types of products and services
that will become available.
CUSTOMER EDUCATION
Outline the process on how the
utility will educate customers about
the Smart Grid deployment plan.
Furthermore, identify what channels
the utility will use to communicate
with customers and how often these
communications will occur.
The importance of customer
education cannot be overstated.
Education could make the difference
between a successful deployment and
a resounding failure. The customer
education plan should be thorough and
ongoing. The deployment plan should
include the general information to be
communicated, the communication
channels, and the timeline. Periodic
customer focus groups can be an
effective means of testing whether the
utility is successfully communicating
these messages.
CYBERSECURITY & DATA PRIVACY
Cybersecurity and data privacy have
received greater attention in recent
months, as retailers and credit card
companies have reported data breaches
and as the electric grid has undergone
both physical and cyber-attacks.
Regulatory standards exist for certain
components of the grid, such as
generating plants and the transmission
network. However, cybersecurity
standards at the smart meter level are
voluntary industry standards.
Moreover, existing state data privacy
standards may not explicitly address the
new forms of information produced by
the Smart Grid network or new methods
for sharing this information. Both state
The Smart Grid
means electricity
will no longer be a
one-way street.
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 A Division of WESCO Distribution Canada LP

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 A well-thought-out Smart
Grid deployment plan
should address cybersecurity
and data privacy.
regulators and consumer advocates will
closely scrutinize this section of the utility’s
Smart Grid deployment plan. The plan
should thoroughly explain how cybersecur­
ity and data privacy would be addressed.
A utility preparing for a Smart
Grid deployment should follow the
standards developed by the Smart Grid
Interoperability Panel (SGIP). The SGIP
is a public-private partnership formed
20 | APRIL/MAY 2015
in 2009 by the National Institute of
Standards and Technology and the Smart
Grid industry. The SGIP’s mission is to
develop industry standards to ensure
that all the equipment and systems used
in a Smart Grid deployment will work
effectively together.
Electric utilities should develop a
strategy in the Smart Grid deployment
plan outlining how the utility will protect
customers’ usage information.
This strategy should include how
customers can give information to
other providers of energy products
and services as well as what types
of information will be available to
these third parties.
REGULATORY REVIEW CHANGES
Merely applying traditional regulatory
review principles will not assure a
successful Smart Grid rollout. From
a regulatory perspective, a utility will
often seek regulatory pre-approval
before embarking on a Smart Grid
deployment. In order to win pre-
approval, the utility must demonstrate
that the benefits from the Smart Grid
deployment outweigh the costs.
If the utility obtains pre-approval,
this reduces the risk that regulators
might later disallow cost recovery
by concluding the Smart Grid
deployment was imprudent.
Under traditional ratemaking
principles, a utility begins to recover
its costs and earn a return on its
investment in new equipment
after the equipment is placed in
commercial operation and approved
by regulators in a rate proceeding.
The utility must only demonstrate that
the new equipment is being used to
provide electric service to customers.
Photo credit (password form): Gerd Altmann
New rate plans may require customers
to start paying for the Smart Grid
equipment after it is placed in service,
but before the benefits from the Smart
Grid deployment are fully realized.
This traditional regulatory review
does not move far enough because it
fails to examine whether customers are
receiving all the benefits promised by
the utility. The benefits cited to justify
Smart Grids may include improved
reliability, supporting greater deployment
of renewable energy, energy efficiency,
demand response, plug-in electric
vehicles, and environmental benefits.
The utility might be able to start
recovering its smart meter costs by
showing that it uses the smart meters to
deliver electricity to customers, without
showing that it has provided these other
benefits. If regulators fail to monitor the
utility’s performance, customers might
not receive all the Smart Grid benefits
promised by the utility.
PERFORMANCE METRICS
Regulators can ensure that customers
are receiving the benefits promised
in a Smart Grid deployment plan by
measuring its success. Tom DeMarco,
a management expert, said, “You can’t
control what you can’t measure”. The
plan must contain metrics to define
how success will be measured. Having
clear, objective performance metrics will
protect the utility’s customers by holding
the utility accountable for delivering all
the benefits promised.
California, Illinois, and Maryland are
examples of states, which have adopted
performance metrics for utility Smart
Grid deployments. These performance
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 MEASURING DEPLOYMENT SUCCESS
Measurements to ensure customers
receive benefits
• Number of customers enrolled in dynamic pricing
programs
• Number of devices on customers’ side of the
meter receiving signals from the grid
• Number of customers on a net metering tariff
• Number of customers who access a web-based
portal to obtain real-time price information
• Number of customers with home area networks
• Number of customers on time-based electric
vehicle tariffs
• Whether competitive suppliers can offer dynamic
pricing; and
• Amount of greenhouse gas reductions enabled by The importance of customer
the Smart Grid education cannot be overstated.

metrics include service reliability measures and customer- The EPA has issued a roadmap to allow states to
(power lines) Michael Schwarzenberger
Photo credit (computer): William Iven,

oriented measures (refer to “Measuring Deployment Success”
sidebar).
These performance metrics provide clear evidence of
how well a utility delivers on the promised benefits of
its Smart Grid deployment. State utility commissioners
reviewing upcoming Smart Grid projects in their jurisdictions
should think about requiring these same types of detailed
performance metrics for the Smart Grid deployment plans
under consideration.
Performance metrics for Smart Grid deployments may
result in an additional benefit—using the clean energy
benefits from a Smart Grid deployment to comply with U.S.
Environmental Protection Agency (EPA) air quality regulations.
The EPA issued regulations in May 2010 capping the
emissions of carbon dioxide from industrial sources. These
regulations could cause many regions of the country to be
designated as non-attainment areas under the EPA’s National
Ambient Air Quality Standards. States must develop state
implementation plans to comply with these regulations.
incorporate into their state implementation plans the carbon
dioxide reductions from state energy efficiency and renewable
energy portfolio standards. These carbon dioxide reductions
could then be used as an offset to the state’s cap for carbon
dioxide emissions. Using performance metrics will spur
greater adoption of energy efficiency, demand response,
and renewable energy by customers, thus providing states a
greater benefit for their state implementation plans.
LAST LOOK
Ben Franklin also said, “An ounce of prevention
is worth a pound of cure”. Developing a
thorough Smart Grid plan and using well-honed
performance metrics will help prevent a Smart
Grid deployment from going awry and will help
ensure that customers benefit from the Smart
Grid deployment. ET

Many North American

electric utilities have installed
Smart Grid systems.

FREE Subscription: www.electricity-today.com APRIL/MAY 2015 | 21

FEATURE | FLEET MANAGEMENT REPORT
SECRET TO FLEET MANAGEMENT
SUCCESS
How to make the most of innovative tools and best practices
BY JOE CAYWOOD, Terex Utilities
F
leet managers working at electric utilities know that for
crews to be successful on any jobsite, they need to have
access to tools that will help them work safer, smarter,
more ef­­ficien­t­ly and more profitably. In the electric utility in­
dustry, a utility truck, whether an aerial device, such as a bucket
truck, a digger derrick, or an auger drill, is critical to a crew’s
productivity. How­ever, as important as the utility trucks are, the
work practices in place to protect staff and equip­ment from the
hazards of working around elec­tricity are even more important.
Work practices enable fleet managers and their
crews to focus on completing jobsite tasks ef­ficiently,
effectively and as safely as possible. The fundamentals of
current work practices consider asset management, available
equipment offer­ings, a truck’s technologies, equipment
upkeep and maintenance and safety as well as incident
prevention. Additionally, fleet managers imple­ment work
practices that allow their crews to com­ply with standards set
forth by industry agen­cies, including the U.S. Occupational
Safety and Health Administration (OSHA) and the Amer­ican
National Standards Institute (ANSI).
MANAGING ASSETS
Justifying the purchase of new or replacement equipment
is a difficult task for fleet managers watching their bottom
line—regardless of how im­portant a piece of equipment is in
their fleet. Currently, many fleet managers minimize equip­ment
acquisition costs. Their goal is to utilize all equipment in the
current fleet inventory before acquiring new assets. Inventory
management ar­rives at this logic: fleet managers need to
maximize the use of each unit, while retaining the smallest
possible number of units in their fleets.
Over the years, industry suppliers have fo­cus­ed on
introducing and promoting products with rapid-response
capabilities in the market to de­liver the necessary equipment
solutions to match real-world applications. In the past decade,
man­ufacturers and suppliers have worked directly with
22 | APRIL/MAY 2015
fleet managers and other operations-based stake­holders
to improve their understanding of equip­­ment utilization.
Consequently, this part­ner­ship has led to significant
improvements in own­ership and operating costs, as well as
util­iz­ation, of electric utility trucks.
SPECIFYING A UTILITY TRUCK FLEET
Every lineman, operator, or field crew team mem­ber has
specific ideas about utility truck design and operation (that
is, how the vehicle will best suit jobsite requirements). These
ideas are given to their fleet managers, who start with the
specs of a base truck, which includes the work zone capacity
for digger derricks or working height and side reach for
aerial devices. Subsequently, field staff works with industry
suppliers to tailor a truck to fit the utility’s particular work
practices and requirements.
Traditionally, utilities have adopted, adap­ted, and evolved
these work practices and require­ments.
In an effort to manage cost and lead times, as well as
proactively address challenges, manufacturers work closely
with fleet managers to find synergies in truck specs, work
practices, and requirements to develop a standard equip­ment
offering that is cost efficient and time ef­fective to produce.
UTILIZING NEW TECHNOLOGIES
Over the years, industry suppliers have incorporated new
technologies such as global positioning systems (GPS) and
telematics into their equipment offerings. Fleet managers
are using the aforementioned type of advancements to
manage and monitor their utility trucks more efficiently. For
example, GPS technologies can track the movement and
whereabouts of rental utility trucks, and telematics can help
fleet managers track truck chassis issues, allowing them to
proactively schedule maintenance or repair work to avoid
costly downtime in the field.
Industry suppliers, with the help of fleet managers, have
developed the tilting pedestal system and the platform lifter,
two new product concepts recently introduced to the market.
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 These two products enable crews to work more effectively on
slopes and more efficiently around utility poles.

TILTING PEDESTAL SYSTEM

Many utility
eufmc crews must
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fleet managers pursue equipment that allows the successful
completion of work on an incline without compromising the
crew’s safety or productivity.
Bucket trucks should be operated on firm, flat surfaces
and stay within a five-degree slope. Orange and Rockland
Utilities, for example, operating in the mountainous Hudson Fleet Strategies to Maximize
Total Company Performance
Valley area in New York State, setting up at a maximum of five
degrees really limited its crews’ ability to service customers
in its operations area (which includes parts of New York,
New Jersey and Pennsylvania). Utility crews are required to
work on inclines that often exceed five degrees. The utility
approached several industry suppliers with this business
challenge and asked them to develop a product to fill the void
in the market.

If a utility truck has any issue that cannot be fixed by the com­
pany’s in-house service crew, additional trained technicians
or mechanics need to be involved. Outsourcing fleet mainten­
ance tasks may be more cost-effective, as well as convenient,
to meet a fleet manager’s needs.
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 A maintenance program should be developed based on the
manufacturer’s schedule, and then customized to fit a crew’s
work­ing schedule. Maintenance tasks should be completed at
reg­ular intervals in the utility truck’s lifecycle.
PLATFORM LIFTER
Platform lifters are tools that fleet managers can use on their
aerial utility trucks to increase the boom’s range of motion.
This tool has an additional platform arm that rotates up to 215
degrees, accompanied with the 180-degree platform rotator,
providing additional flexibility to operators to reach both sides
of the utility pole without having to reposition the truck, thus
expanding the truck’s work area and increased access from
one-truck set-up. Additionally, a platform lifter option enables
operators to raise and lower the bucket for additional height.
“We needed a solution that was centered around our With 32 years of working experience in the utility industry,
specific need—to be able to work on slopes in our operations Roger Agge, a retired lineman from Consumer’s Energy in
area that can be as great as 18 degrees or more,” said Jackson, Michigan, was one of the first people to demo the
Scott Braghirol, Central Field Services, Senior Specialist of new option. From a user’s viewpoint, Agge noted that with the
Transportation Operations, for Orange and Rockland Utilities. material handling jib rotated out of the way, it made it much
“We hosted on-site visits so that product engineers could easier for him to reach around the utility pole to complete
better understand our need and work with us to find a solution a task such as changing out multiple transformers. In other
that would not only accommodate the industry standard but words, he rotated the bucket and continued to work.
also our specific applications and work practices.” The capability of rotating the swing arm as well as the
From this request, a tilting pedestal system for aerial utility bucket gives crews a reasonable reach to perform necessary
trucks was developed to help crews when working on slopes tasks on the utility pole. “In other words, this option allows
exceeding five degrees. This system allows for operation on operators to work within the entire range of the aerial device’s
slopes of up to 20 degrees to accommodate the need for work zone,” says Agge.
real-world truck positioning, while decreasing stress on the
rotation gearbox when rotating “up the hill”. Utility trucks,
equipped with a tilting pedestal system, allow operators
to save time during the set-up process, by providing the
capability to position the truck on sloped terrain.
Other benefits of a tilting pedestal system include
maintaining the work platform level throughout the entire
360-degrees of operation, boosting productivity and
creating less fatigue for the operator having to maintain
balance while in the platform. The bottom of the bucket
where the operator stands is level so that operator is not
standing at a “sidehill” angle.
Additionally, the aerial utility truck can operate within
its designed configuration and the cylinders used in the
pedestal are rated to support the rated load independently.
Furthermore, using the material handling jib removes the
capacity reductions on the tilting pedestal system.
The tilting pedestal system, according to Braghirol, helped
to reduce stress on equipment operators. Additionally,
Braghirol added that the system improved working conditions
as well as reduced production time and costs because
workers had the necessary equipment to complete most
jobsite tasks.

The new swing arm feature on aerial devices makes it possible

for operators to reach both sides of the utility pole without
having to reposition the utility truck, thus expanding the truck’s
work area and increasing access from a one-truck set-up.

24 | APRIL/MAY 2015 FREE Subscription: www.electricity-today.com

 This new capability was specifically designed to improve
job­site efficiency, as well as deliver more productivity to line
crews, be­cause they can work both sides of the pole from one
truck position.
Platform lifters improve the equipment owners’ return on
investment by reducing the number of trucks required to
complete a task. If fleet managers can reduce the number of
linemen and amount of equipment at each jobsite, as well as
reduce the number of times crew members have to position
and reposition their trucks to complete a job, that translates
to less operational costs impacting the bottom line and more
productivity to finish the necessary work.
TRAINING & WORKSITE SAFETY
Electric utility worksites come with a high level of complexity.
Consequently, the equipment crews utilize on these worksites
has also become more technically complex. For fleet
managers, their number one priority is to keep crews and
equipment working safely and productively. When assigned
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personnel at a worksite have appropriate training and
certification, and strictly adhere to safety protocols, electric
utilities can maintain a workplace culture of safety.
OSHA and ANSI standards require that every operator must
be qualified to operate any aerial device or digger derrick
effectively and efficiently. The best way to maintain work­er safety,
and to ensure that an aerial device or a digger derrick remains
productive, is for operators to become intimately familiar with the
operator manual provided by the manufacturer and to commit
to following all of its safety guidelines and requirements.
Fleet managers can achieve the aforementioned goals by
investing in further education for crew members. Education
includes industry certifications when a new safety standard
is implemented, as well as training from manufacturers when
new equipment is added to a utility’s fleet.
Participants in these programs not only gain valuable
training but also an understanding of work methods and
safety procedures on utility equipment to meet the most
current jobsite requirements and industry standards.
APRIL/MAY 2015 | 25
 A tilting pedestal system de­creases stress on the rotation gearbox
when an aerial device is rotating “up the hill”, as well as decreases
the utility truck’s set-up time because it eliminates the need to “crib”
the outriggers and does not limit boom operation or load charts.

FLEET MAINTENANCE
Preventive maintenance is key to keeping electric utility trucks running at peak
efficiency. This logic is especially true in today’s economy as the cost of buying new
equipment compared to the cost of investing in preventive maintenance programs
significantly affects the utility’s bottom line.
Preventive maintenance is a daily commitment for owners and operators of any
utility truck. Electric utilities should develop a maintenance program based on the
manufacturer’s schedule, then customized to fit a crews’ working schedule. Most
manufacturers recommend maintenance tasks be completed at regular intervals in
the truck’s lifecycle.
Daily maintenance tasks include a visual inspection of all the truck’s main
systems, as well as an operational test of all the truck’s main functions. Those most
qualified to complete the daily maintenance tasks are the truck’s operating crew
because they know the most about the truck’s particular sounds and performance.
If any components or functions of the truck are not working properly, these items
need to be brought to the attention of the fleet manager, as well as a trained service
technician or mechanic, and be immediately repaired or replaced to ensure the
safety and productivity of the truck and its crew.
Maintenance intervals are excellent opportunities for fleet managers and the
truck’s operating crew to have an open discussion about vehicle usage, operating
conditions, and performance. For example, fleet managers must know if workers
are operating any vehicle in adverse conditions, such as in extreme hot or cold
temperatures. Consequently, fleet managers can implement specific maintenance
tasks into operating procedures to help prolong truck performance in such
conditions.
Additionally, fleet managers must ensure that the maintenance program includes
a complete “once-over” check of the truck’s components and functions. For
example, ANSI prescribes the dielectric integrity of a utility truck’s boom must
be tested every year. In this case, fleet managers can complete two important
maintenance tasks at one time, reducing downtime and minimizing costs.
During the annual inspection, fleet managers must involve all parties, from field
crews to shop mechanics, in the truck’s operation and care, to check the vehicle’s
maintenance records to spot any patterns where problems could occur.

FAMOUS LAST WORDS

In the end, whether handled in-house or outsourced, fleet
managers who prioritize preventive maintenance will increase the
chances of maintaining low equipment costs and a high uptime.
As industry suppliers continue to solicit fleet managers’ feedback
and opinions on equipment innovations, a clearer understanding
of what utility workers require while at work is gained. Additionally,
feedback allows suppliers to develop more efficient solutions
to meet the necessary requirements. Fleet managers find
value in equipment innovations that focus on improving jobsite
performance safely, saving on operational costs, and delivering a
real return on investment. ET

26 | APRIL/MAY 2015 FREE Subscription: www.electricity-today.com

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FEATURE | FLEET MANAGEMENT REPORT
TIVE V
L T E R N A n a l i ty f
P L O R I o NG A
bile funct i o
EX im prove m
How to
BY TODD GOLDMEYER, Adrian Steel Company
U
tility workers and linemen work in one of the most
mobile industries in the country. Think about it: utility
workers are always moving from one project to the next
as efficiently as possible. Since utility workers rely so heavily
on their work vehicles, it is critical that they drive a vehicle
that works best for their needs. Fleet managers now have a
wide variety of vehicles to choose from, ranging from utility
trucks, to light-duty trucks, to cargo vans.
Since utility workers are always on the move, their work
vehicles must be more than just a mode of transportation.
A work vehicle must also function as a mobile office and a
storage hub for tools and equipment. Utility workers do not
always have time to drive to the main office before heading
to the next jobsite, so their vehicles must be prepared for
all possible scenarios. A utility work vehicle should have file
storage capabilities, as well as secure storage for expensive
tools and equipment. Some utility workers may even require a
workspace within their vehicles.
IMPORTANCE OF ORGANIZATION
Organization and efficiency are critical aspects to electric
utilities. How utility workers store their tools can greatly hinder
on-the-job effectiveness. Organization is highly important for a
number of reasons.
1. Maximizes Efficiency
When workers need to shuffle through multiple drawers to
find the necessary tool, that time can really accumulate and
inundate the entire team.
A work vehicle must
function as a mobile office
and a storage hub for tools
and equipment.
28 | APRIL/MAY 2015
P T I O NS
E H I C lity wor LE O kers
or uti
2. Improves Worker Safety
Utility workers risk their lives daily to ensure that their
customers have reliable, continuous service. In the case of an
emergency, workers must operate quickly, which can be tough
when they cannot find the tools required to complete the task.
3. Elevates Customer Perceptions
Often, utility workers avoid cleaning their vehicles, but
appearances matter. When a customer sneaks a peek at
the interior of a vehicle, it could certainly affect his or her
perception of the company.
UPFITTED VAN VS TRADITIONAL UTILITY TRUCK
Many utility workers do not necessarily need to drive a large
boom truck. While a utility truck is still required for situations
where linemen need the crane to repair lines, not all tasks
require such a large, bulky vehicle. Upfitted vans are one
option that utility workers can use to complete tasks. This
feature details some of the major differences between upfitted
vans and traditional utility trucks.
Upfitted Vans
Upfitted cargo vans are certainly smaller than their utility truck
counterparts, which removes the difficulties of driving in cities
and parking in tight spaces. Due to the smaller size, cargo
vans use less fuel and have lower maintenance costs.
Vans come in many shapes and sizes and can accom­
modate quite a bit of cargo—especially when upfitted with
the appropriate equipment. Upfits can be customized to meet
the storage requirements for utility workers (for example, wire
and cable). Additionally, upfit products such as shelving and
drawer units can be very useful for storing tools such as bolt
cutters, wire strippers, safety equipment, and smaller tools.
Utility Trucks
Utility trucks are necessary whenever line repairs are required.
Even though trucks cost more to operate than vans, the
crane on the utility truck is a critical piece of equipment for
many jobs. An effective utility truck often has compartments
for storing tools and equipment, but sometimes that space
is constricting and difficult to use. On the other hand, utility
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 Table 1: Fleet details for U.S. electric utilities
Company Fleet Size Rank Fleet Size # of Vans # of Class 3-6 Trucks
Pacific Gas & Electric 30 7,438 309 2,514
Southern California Edison 36 6,600 - -
Sempra Energy Utilities 82 4,290 0 3,913
FirstEnergy 84 4,100 - -
Public Service Enterprise Group 85 4,060 1,736 515
Con Edison Company of New York 86 4,054 0 847
Atmos Energy Corp 95 3,775 10 1,600

trucks often have more space to accommodate larger spools
of wire and cable on the exterior of the vehicle.
HOW UTILITY WORKERS USE UPFITTED VANS
Typically, classifications are given to trucks based upon
the maximum weight of the truck. Light-duty vehicles are
considered classes 1 to 3; medium-duty vehicles are classes
4 to 6; and large-duty vehicles are classes 7 to 8. The majority
of utility fleets consist of many class 3 to 6 trucks.
However, according to a survey conducted by Automotive
Fleet, a substantial number of electric utilities are utilizing
vans in the field. Refer to Table 1 to explore the fleet
landscape for some of the largest electric utilities in the
United States.
Previously, private practice service professionals mainly
utilized upfitted vans. Since these trade workers primarily
work on new housing developments and take house calls,
they do not require a crane to repair lines. However, in
the utility industry, workers take house calls, too. In these
scenarios, dispatching workers to take house calls is
nonsensical, which explains why many electric utilities are
adding upfitted vans to their fleet.
Additionally, upfitted vans are great support vehicles. Line
workers cannot use them to repair power cables; however,
workers can use these vans to store additional equipment
and supplies—without impeding traffic on a busy road. Safety
lights can easily be applied to cargo vans, and in turn, the
vans can be used to help keep workers safe. Ultimately, a
major reason why utility companies may add more upfitted
vans to their fleets is the cost saving factor.
FAMOUS LAST WORDS
Fleet managers are tasked with maximizing the
efficiency and minimizing the costs associated
with daily vehicle use. Vans are less expensive
to operate than utility trucks, and in the long
term, these vehicles can provide electric
utilities a substantial return on investment. As
electric utilities become more conscious of fleet
efficiency, the industry can expect to experience
a rise in the use of upfitted vans for utility work. ET
Todd Goldmeyer is the marketing manager at Adrian Steel
Company, a leading manufacturer of commercial vehicle
upfits and storage solutions. Established in 1953, Adrian Steel
produces high-quality upfits for service professionals in all
industries, including the utility trade.

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FEATURE | FLEET MANAGEMENT REPORT

CONNECTING WORKERS
TO VEHICLES

How to improve information flow with tech-enabled fleets

BY SCOTT BALL, Xplore Technologies breakdowns between the utility and the worker. However,
while the con­su­mer market has quickly made connectivity

I
n reports analyzing the response of power utilities to
incidents such as Hurricane Sandy, or the more recent ice
storms on the east coast, one item has been remarkably
consistent—the conclusion that com­munication requires
improvements.
The concern is not hard to fathom. Knowing accurately when
power will return has an enormous impact on how a family or
a business copes with the situation. Moreover, if the customer
depends on electrical power for a life-support system, having
the right knowledge can be a matter of life and death.
The finger, however, is often pointed inappropriately at
the wrong par­ty. News reports often cite insufficient service
desk personnel, or poor fore­casting by managers. What is
missed is that those in charge simply do not know because
of insufficient communication with the field. In a recent ice
storm incident in Canada, for example, a local utility reported
that the dispatch system deteriorated into utter chaos, with
residents out in the streets flagging down repair trucks.
The problem of inadequate communication is certainly not
limited to disasters. Missed calls, inefficient routing, errors in
delivery of components, and rework are all consequences of
communication breakdown between the central office and the
field worker, and, consequently, productivity suffers.
Emergency or not, quickly dispatching
proper utility vehicles to the ap­
propriate location requires
timely, highly specific
ubiq­uitous for most work­ers, electric utilities are still on a
steep adoption curve, and many utility workers are still not
connected—how­ever; that is now changing. Research firm
Navigant Re­search is predicting that the number of connected
utility work­ers will increase from 1.2 million employees in 2013
to over 2.4 mil­lion by 2020.
Furthermore, according to analyst firm VDC Research, the
overall rug­ged tablet market grew by an astounding 17.5
percent in 2014 and was particularly strong in the fourth
quarter of 2014. The rugged mobile market is indicating
exceptionable growth potential in 2015 as many organizations
recognize that consumer tablet devices were not meeting the
rigors of harsh environments.
However, many of the mobile communications
arrangements in the in­dustry remain outdated. In fact, for
many utility industry fleet managers, mobile computing
technology refers to a vehicle-based computer system
for data log­ging and GPS positioning. This view does not
reflect the role of newer mobile technology now being wide­
ly adopted, which maintains connectivity for the worker at all
times—wheth­er inside or out­side the vehicle.
Currently, a growing num­ber of utilities are equipping their
work­ers with rugged tablets, giving them the necessary
technology tools for improving productivity, accuracy, and
time­liness when working remotely.
Our research indicates a high demand for notebook
replacements, espec­ially when replacing existing notebooks

70
Estimated percentage of
information—data that
can only be obtained
from an unbreakable
mounted into vehicles. The extra portability of a tablet for use
outside of a vehicle is also highly appealing for many electric
utilities seeking productivity improvements at the point of
communications service. However, adding portability isn’t enough to achieve
mobile workers who will link with the point true mobility: a missing feature is an environment that will
of service for each
use a tablet or a hybrid individual worker.
support the workflow enabled by these devices, and much of
that is related to the vehicle itself.
device that has tablet-like
characteristics by 2018 MOBILE/TABLET KNOWN WEAKNESSES
ADOPTION ON RISE We have to examine device usage patterns of the typical
Source: RapidValue Market experts mobile utility worker to un­derstand the issues around setting
forecasted that mobile up a vehicle as a mobile office.
tech­nology would Typically, computing work is divided into two categories.
solve commu­nication The first category of work is the administrative workload, which

30 | APRIL/MAY 2015 FREE Subscription: www.electricity-today.com

 is typically completed in point to the other with minimal data interruptions. Without this
Emergency or not, the truck. This work in­ ubiquitous presence of a data device, workers will fail to use
cludes tasks such as their device 100 percent of the time, and communication and
dispatching proper fil­ling out work orders, productivity will suffer.
utility vehicles to the deal­­ing with schedules,
submitting requi­sitions THE DATA-ENABLED VEHICLE
appropriate location for new equipment, or The most successful approach has been to create an
quickly requires timely, reporting on excep­ environment where the utility worker can comfortably
highly specific tional sit­uations. In this complete his or her administrative work in the vehicle,
scenario, the ve­hicle itself and easily transition back and forth between that and the
information. becomes a mobile office. work specific to the point of service. In this scenario, the
The second category is vehicle serves as a mobile office and a communications hub
the accessing and gathering supporting the mobile device.
of in­for­mation at the point of Two major considerations regarding the vehicle are
ser­­vice. For example, a worker may creating a mobile of­fice space and a vehicle area network.
be using a data device to collect meter readings, record circum­ Fleet managers and the utility’s in­formation technology (IT)
stances on a jobsite, or receive an ex­planation from a customer. department must collaborate closely in order to achieve
Increasingly, information from knowledge bases is be­ing success.
pushed out to the point of service, giving workers timely in­for­­­m­
ation about customers, the condition of equipment, or histories. MOBILE OFFICE SPACE
What utility workers require, consequently, is an Employees who are required to complete office work in
infrastructure that gives them the ability to work seamlessly vehicles require a comfortable, ergonomically appropriate
in both categories, passing information from one connection work environment. The workplace, typically the area around
the driver’s seat, requires enough space to support work for
extended periods.
The data device itself, typically a rugged tablet, requires a
connection to a docking unit. Moreover, the device requires
easy removal from this unit so that workers can carry it into
the field. The docking unit itself requires a design for high
volume usage. In this case, the device might be docked or
undocked 50 times a day, and the task has to be seamless,

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 easy, and failsafe. users—map-based images, for example—electric utilities are
When docked, opting for devices with larger displays. Consequently, vehicles
the device should of the future will probably have to accommodate the mounting
The number be mounted in a of larger devices.
of connected utility location where it is
easy to operate, VEHICLE AREA NETWORKS
workers will increase the screen is clearly The other important factor for the mobile office is setting up
from 1.2 million employees readable, and at the the vehicle as a communications hub. In the past, these hubs
in 2013 to over same, the mounting were established using a pass-through antenna, based on the
arrangement does not traditional cellphone antenna that used to be found in vehicles.
2.4 million by 2020. compromise vehicle The antenna simply relays the signal to a fixed or docked laptop or
Source: safety. other data device. The device loses connectivity if undocked. This
Navigant Research A mistake that is arrangement can be slightly improved by switching arrangements
frequently made is that relay the signal, but the signal losses are significant with this
mounting the device on approach, and the connectivity tends to be poor.
a post that is attached The more effective method is to install a mobile gateway—a
to the floor. This error can receiving unit that sets up a Wi-Fi zone or Vehicle Area
compromise vehicle safety and Network (VAN) around the vehicle for all mobile devices in
limit the worker’s ability to access the truck’s exterior from use. This system makes connectivity seamless, whether the
the interior. In fact, this arrangement is now illegal in some computing device is operating inside or outside the vehicle,
jurisdictions such as Australia. with no interruption when the device is docked or undocked.
The preferred method is to mount the device on the Auto manufacturers are already moving in this direction in
dashboard. Unfortunately, many vehicles have very limited consumer markets—one example is the Chevy OnStar Wi-Fi
mounting options for technology. Limiting factors include the hotspot feature, which allows the vehicle to create a Wi-Fi
size and layout of the vehicle, or the design of the dashboard zone in a campsite or other area where the vehicle is parked.
itself. Workers will have difficulties mounting a device on a This trend will probably continue with commercial vehicles.
dashboard that is curved towards the driver. Additionally, plastic
dashboards provide no solid surface, so workers will have TWO-WAY COMMUNICATION
difficulty mounting any device due to instability. Workplace management systems, in order to function properly,
How workers use the vehicle is another factor. If only one require roughly 100 percent compliance from the employees
person occupies the vehicle, the worker can disable the passen­ who use them. Given the utility workers’ environment, it is
ger airbag and use the dashboard space to mount a device. critical to ensure that the infrastructure makes computing as
Another trend that planners should allow for is that as compatible as possible with his or her workflow. Additionally,
mobile applications start to deliver more graphic content to infrastructure must allow workers to engage in computing
activities with minimal interruption. Workers’ vehicles, when
not equipped properly, are typically less dependable.
2nd Fleet managers should brainstorm with
the utility’s IT department to determine exactly
Microgrid Development
how the organization’s information manage-
for Public & Private ment strategy might affect the demands
Sectors WEST COAST on workers inside and outside their
vehicles, and what the implications are
Establishing a Microgrid for vehicle selection.
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& Planning Division Director of Economics
California Public Edison Electric
Utilities Commission Institute

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Accessing information
at the point of service
improves productivity

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 COMMUNICATION STRATEGIES
How to move fleet managers and IT personnel
into effective collaboration
Similar to fuel efficiency, safety, and environmental
performance, data device compatibility should be a key
evaluation factor in the purchase of new vehicles.
Planners should budget for the cost of a suitable mounting
device and a mobile gateway device. The latter may soon
become available as an option from the vehicle manufacturer.
Planners should look to the future. Information technology
is changing rapidly, especially on the mobility side, and the
larger screens and added functionality of mobile devices
will probably change the requirements.
The requirement to create data-enabled vehicles is not
unique. Police departments, for example, are involved in
similar dialogues. Utilities should voice their concerns and
become part of the conversation.
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The major test of any system comes in a worst-
case scenario. When coping with the effects
of a hurricane or ice storm, uninterrupted
communication with each worker in the field is
the most powerful weapon that a utility can ever
possess. Creating a fleet of mobile offices with
powerful connection capabilities is one of the best
methods of achieving this goal. This process
begins with IT collaboration, which includes
considering the necessities of end users. ET
Scott Ball is the country manager of Xplore Technologies,
a rugged tablet company that provides integrated mobile
technologies for the power and utilities industry sector, as well
as other industries with mobile workforces.
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APRIL/MAY 2015 | 33
FEATURE | FLEET MANAGEMENT REPORT

EAT DEBA
“ Many fleet managers
wonder if fleet tracking is
“
E G R really worth the investment.

TH T E Electricity Today Magazine’s Fleet Management Report will

compare the common objections to versus the benefits of
GPS tracking to help utilities decide if this technology is useful
for their fleet.

FEAR OF EMPLOYEE PUSHBACK

One of the biggest concerns about GPS tracking for fleet
professionals is the fear of employee pushback. Many
fleet managers and workers use the “Big Brother” theory
in reference to GPS tracking, as well as concerns from
employees who do not want to be tracked. According
to the Free Dictionary, the Big Brother theory describes
an omnipresent, benevolent figure that symbolizes the
oppressive control over indi­vid­uals used by authoritarian
management and/or government. Sev­eral workers believe
that the technology invades their privacy, or that it means
management does not trust them. Many fleet managers have
close relationships with their drivers and may not feel that
GPS tracking is necessary.
Firstly, electric utilities must understand that the goal is
o ns
Eva

not to micro­manage employees, invade their privacy, or

show distrust; the goal is to improve business operations.
u ti
ual

Measuring driver performance is another method to help

ng s
ol

ensure fleets are productive to increase the utility’s bottom

ti

the g
kin
line. Every work activity measures employee performance,
b rac
and GPS track­ing is a tool that electric utilities can utilize
enefits le et t
of f towards this end.
If a business is not evaluating employee performance, fleet
oper­ations are probably not up to par.
BY JENNY MALCOLM, GPS Insight Another important question to consider is: “Why employees
would oppose being tracked if they are not doing anything

S
ince global positioning system (GPS) tracking was wrong?” When employees perform their work properly, many
first intro­duced to the fleet industry, users have will want recognition for their efforts.
debated whether this tech­nology is beneficial for their
fleets. Some of the most common objections include the
fear of employee pushback, budget concerns, and usage
apprehensions regarding Big Data. Additionally, GPS
tracking pre­­sents a learning curve, which means
that utilities have to train their employees
to use the technology. Moreover, daily
operations swamp utility employees.
The aforementioned challenges
present hassles for electric utilities.
In addition, original equipment
manufacturers have introduced ve­
hicles equipped with GPS tracking,
which has raised the question of
whether these will become the
preferred choice in the future.
On the other side of the
discussion, electric utilities that have
im­plemented GPS tracking in their
operations believe the “great debate”
should not even exist. Fleets that Many worry about the costs
use GPS tracking technology have involved in implementing GPS
been able to increase productivity tracking without considering
and efficiency, reduce costs, improve the opportunity cost of not
safety, and overcome many other using the technology
business challenges. This feature in

34 | APRIL/MAY 2015 FREE Subscription: www.electricity-today.com

 Big Data is a term that
overwhelms people, but it
can be quite powerful when
converted to actionable
intelligence
BUDGET CONCERNS
Many fleet professionals are concerned with the associated
costs in­volved with GPS tracking technologies. Many electric
utilities can­not afford the extra expense in their budget. If
finding a solution is not a top priority, shelling out valuable
funds may not seem necessary to incur the cost.
Budgets involve costs and expenses, liabilities, and cash
flows to sus­tain everyday operations while maintaining
profitability. In other words, most budgetary concerns about
GPS tracking revolve around the idea that the technology will
be a long-term expense.
Although prices are associated with purchasing a solution,
electric utilities should not just focus on upfront and monthly
costs. Businesses using GPS tracking have reported that
quality GPS tracking software can deliver a return on
investment (ROI) almost immediately to customers. Electric
utilities can receive a 100 percent return on investment within
the first year when used properly. Investors should view GPS
tracking as a tool to reduce costs and generate revenue, not
as an expense.
BIG DATA & ADVANCED SOLUTIONS
Another concern for fleets regarding GPS tracking is Big Data,
which is a source of conflict for many fleet professionals. Big
Data encompasses important information about the utility’s
fleet, but the overwhelming am­ount of data leaves fleet
managers unsure on how to turn it into action­able intelligence.
Fleet managers want to minimize their or their employee’s
time spent sifting through data irrelevant to their daily re­
sponsibilities.
The lack of a filtering mechanism used to pinpoint relevant
infor­ma­tion is the issue, not the amount of incoming data.
GPS tracking solutions help sort through fleet data relevant to
occupation, and is ac­cess­ible to employees when necessary.
For instance, accounting and dispatch de­partments require
information relevant to their departments. Electric utilities can
FREE Subscription: www.electricity-today.com
use a GPS tracking solution to filter the appropriate data to
these departments.
On the surface, utilities may perceive that collecting
considerable a­mounts of data is not necessary, but instances
could occur where the collected information may become
invaluable. For example, utilities accused in a lawsuit from
an incident that occurred two years ago can dispute or verify
claims by accessing their fleet’s historical data. Electric
utilities can verify any vehicle’s location on any date and at
any time as long as the vehicle is equipped with a tracking
device during that time per­iod. Access to information can
prevent a utility’s fleet from being held financially responsible
when not at fault.
INCONVENIENCE
Some fleet managers perceive that if they are aware of their
drivers’ locations, then why use a technology to provide
already known information. Additionally, some fleet managers
may fear that personally pushing a project forward means
employment termination if the project fails. Overall, the
perception is that implementing GPS tracking solutions is too
much of an inconvenience to consider.
Knowledge of an employee’s location does not take into
account his or her activity. Drivers could speed, spend too
much time at one jobsite, or consistently arrive late. Fleet
managers cannot address the aforementioned issues by
simply knowing a driver’s location.
Fleet managers should not refrain from using a GPS
tracking solution because they fear that management
will hold them personally responsible if the project fails.
Conducting thorough research and obtaining the facts
on how GPS tracking will help solve the utility’s business
challenges reflects initiative and is more than likely to impress
management. In addition, if fleet managers take the necessary
steps to ensure the project implementation is a success, they
may very well look like the heroes.
APRIL/MAY 2015 | 35
 If fleet managers perceive that GPS tracking is problems for most fleets. OEM-installed solutions do not
inconvenient, consider the difficulties that can arise when usually work for mixed fleets. In most fleets, utilities own
a preventable incident occurs. Monitoring driver behavior vehicles from different manufacturers, which, consequently,
can improve safety by eliminating fatalities and eliminating means that fleet managers will use multiple OEM solutions to
expensive accidents. If an accident occurs involving track those vehicles. Using multiple GPS tracking platforms
unmonitored vehicles, electric utilities cannot determine fault creates complications and unwanted expenses, as well as
accurately (that is, whether or not the motorist drove too wastes valuable production time. Unless the utility purchases
fast). Without this data, electric utilities will have to rely on all its fleet vehicles from one manufacturer, purchasing OEM-
“guesstimations” which, consequently, could result in many installed GPS tracking solutions will probably not be worth the
more unnecessary costs. investment.
Remember, when comparing OEM solutions and advanced
TIME & EXPERTISE aftermarket GPS tracking software, GPS tracking solutions
Some fleet executives disapprove of GPS tracking because differ in quality. Typically, OEM solutions are one-size-fits-
not enough time is available to remove vehicles from service all solutions with zero customizations available based on
to install devices and implement the solution. While this is the utility’s business model. Software development is not a
a legitimate concern to prevent a dip in productivity, GPS focus for vehicle manufacturers, so OEM solutions typically
tracking providers often work with professional installation fall short of expectations. If electric utilities are investing in
teams to ensure installs are well organized and completed in GPS tracking to help solve business challenges, the selected
a timely manner. Professional installers will hook up as many software must have the capability to show results for those
devices at once as possible to ensure utilities experience the business challenges beyond reducing idle time and
least amount of down time due to an installation. Additionally, speeding.
devices that plug into the vehicle’s on-board diagnostic
system (OBDII) port are available, which means that no
installation is required.
GPS tracking can actually create more time in the
day for fleet managers by eliminating manual
processes traditionally associated
with fleet management. GPS
tracking solutions automate
fleet operations so that fleet
managers can spend their time
more productively.
Additionally, employees do not
require technical expertise to use
a GPS tracking solution. Most
top-tier solutions are user-friendly
for wide adoption throughout
an organization. Fleet managers
should ensure that the vendor
provides 24-hour technical
support and account managers
who offer ongoing training,
present areas for improvement,
and demonstrate how to measure
success with a GPS tracking
solution.

PRE-INSTALLATIONS
Vehicle manufacturers now
offer pre-installed GPS tracking;
however, this feature presents

GPS tracking
software can automate
many time consuming
processes

36 | APRIL/MAY 2015 FREE Subscription: www.electricity-today.com

 FAMOUS LAST WORDS

When considering if GPS tracking is more visibility of a utility’s fleet, quicker

appropriate for operations, electric
utilities must explore their long-term
plans. Utilities must move beyond their
current condition and plan for future
profitability. Customers will be expecting
response times, and more efficiency
overall. GPS tracking technologies can
help improve success now and in the
future by increasing revenue, reducing
risk, and increasing efficiency. ET

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FEATURE | ELECTRICAL SUBSTATIONS

Standards addressing design and

measurement procedures
BY ALEX MOGILEVSKY, CEATI International & SHAWN OTAL,
BABAK JAMALI, BYRON MA, METSCO Energy Solutions

G
rounding systems are a crucially important component
of any power supply system, because they directly
impact public and employee safety, supply system
reliability, power quality and life expectancy of power
equipment. In spite of their crucial role in safe, reliable, and
economic operation of power supply systems, grounding
systems do not receive the same level of preventative
maintenance as other infrastructure assets.
While utilities have generally adopted state-of-the-art
risk-based main­tenance practices for other important
assets, very little work has been un­dertaken in improving
and modernizing the maintenance practices for grounding
systems. A newly published “Grounding System Maintenance
Guide” commissioned by CEATI International’s Grounding
and Lightning Interest Group, provides information that can
help utilities modernize the maintenance practices for their
grounding systems. Refer to the “Guide Objectives” sidebar
for further information.

GUIDE OBJECTIVES
CEATI International’s “Grounding System Maintenance Guide”, which
was developed with the support of Grounding and Lightning program
members from 19 North American electrical utilities, has been produced
to achieve a number of objectives.

1 2
Identify and document Specify appropriate
the common degra­ inspection techniques
dation and deterioration and test methods to
processes associated assess and benchmark
with various components of the health and condition of
grounding systems grounding systems in a cost-
effective manner

3 4
Identify and document Develop an objective
the common degra­ yardstick for measure­
dation and deterioration ment and benchmark
processes associated the functional state of
with various components of grounding systems through the
grounding systems use of appropriate health index
algorithms

38 | APRIL/MAY 2015 FREE Subscription: www.electricity-today.com


Currently available grounding standards address grounding
system de­sign and measurement procedures but they do not
address the scope and frequency of maintenance activities
needed to be performed on different types of grounding
systems as outlined in this feature.
PREVENTATIVE MAINTENANCE
Preventative maintenance of grounding systems involves
inspections and testing to correctly and precisely assess the
functional state of grounding system components, allowing
timely replacement of the degraded com­ponents when their
performance becomes unacceptable. The best strategy in
assuring the readiness of ground grid components for reliably
carrying out their intended functions at all times consists of a
four-step plan.
Step 1
Collect, monitor and manage the relevant information about
ground grid components, that is, maintaining data bases
showing past, scheduled and planned maintenance activities
and detailed results of prior inspections and testing that could
be used as benchmarks for interpretation of in­spection and
test results.
Step 2
Evaluate the consequences of risk associated with failure of
the ground grids in carrying their intended function. Use this
risk profile to determine the optimal scope and schedule of
preventative maintenance activities in the form of periodic
testing to assess the condition of various components.
Step 3
Employ the information of various ground grid health
parameters col­lected through visual inspection and testing, to
determine the overall health and condition of ground grid in
form of health index.
Step 4
Prioritize the mitigation work to rectify defects based on the
health indices and implement the optimal intervention activities.
SYSTEM COMPONENTS & DEGRADATION MODES
A simple grounding system for a pole may consist of a single
rod driven into earth and bonded to the case of a distribution
transformer and sys­tem neutral through a riser conductor and
appropriate connectors. A grounding system for pad-mounted
distribution equipment may consist of two to four ground rods
installed at the corners of the rectangular pad and connected
in parallel through a bare conductor buried horizontally in
form of a ring or counterpoise. The grounding system for a
substation consists of a large number of components that
include ground rods, bur­ied interconnecting mesh, ground
leads and bonding conductors with adequate redundancy,
grounding connectors, voltage gradient mats, sur­face stone,
and fence grounding.
Each of these grounding components performs a different
task in a grounding system. For example, ground rods
facilitate the conduction of fault current from the upper layer
of the soil (which is typically frozen during winter conditions)
to the bottom layers, and surface stone provides an upper
layer of high resistivity material to increase the safe ground
po­tential limits during a fault.
Each aforementioned component experiences different
forms of degradation in health with time. For example, steel
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Circuit network diagram of a gro
und grid
Ground
R ab
Node a Node b
Node 1
R1
Branch 1
R2 Node 2
R3 Node 3 Branch 2
ground rods provide acceptable electrical and mechanical
characteristics upon installation, but with passage of time,
these rods are subjected to corrosion, which results in a
reduction in the rod diameter. Similarly, the surface stone
may break into smaller particles (fines) with passage of time,
allowing vegetation to grow, which reduces the resistivity of
the surface stone, and lowers the safe limits of touch and step
potentials. Touch potential is the voltage between energized
equipment and the feet of a nearby subject who is in direct
contact. Step potential is the voltage between the feet of a
nearby subject who is standing within proximity of energized
electrical equipment.
Dissimilar to the conventional fixed assets employed
on power systems, that is, transformers, circuit breakers,
protection and control (P&C) components, among others,
grounding systems do not generally experience a sudden
and total failure in service, but their performance degrades
gradually over life.
The end-of-service life for a grounding system is deemed
to be when the performance has degraded to a level at which
it can no longer meet the performance level of its intended
functions.
The grounding system degradation rates with time depend
on a number of external factors that include short circuit
level, how much of the unbalanced load current flows through
ground grid, acidity of surrounding soils causing corrosion
of below grade components, construction and maintenance
activity in the area and theft of copper conductors.
CONDITION ASSESSMENT
The condition assessment techniques for grounding systems
can be grouped into three general categories: visual
inspections, in-situ electrical measurements, and lab testing
on excavated components.
Visual inspections are extremely cost effective in assessing
the condition of above-grade components. Through visual
inspections, maintenance personnel can confirm conductor
size and conductor redundancy for ground leads and bonds
and reveal any mechanical damage to conductor strands
APRIL/MAY 2015 | 39
 ponents
Life expectancy of ground grid com
Component Life Expectancy
100
y (years)

90
80
Component Life Expectanc

70
56 53
60 53 51 47 44
50 39
50
40
30
20
10
Surface Stone
0 Buried ground Above-grade Voltage
Buried Ground leads Bonding
Ground rods ucto rs grid connectors grounding and gradient mats
g
interconnectin conn ecting cond
ectin g bonding
mesh ground conn
connectors Mean
electrode with ground electrode
supply system with equipment Maximum
neutrals frames
Minimum

including damage to the grid caused by copper theft.
It is not practical to assess the condition of below-grade
components through visual inspections. Therefore, condition
of ground grid components, installed below grade, can be
determined through in-situ electrical measurements, including
integrity tests, fall-of-potential measurements, and step-and-
touch potential surveys.
These tests provide fairly accurate results of the overall
health and condition of the ground grid. However, in
assessing its effectiveness in meeting the intended safety
objectives, these tests may not reveal the underlying cause
of its unsatisfactory performance. When a grounding
system is in poor condition, testers can identify the root
cause of its less-than-stellar performance by excavating a
representative sample of the ground grid

Surface stone resistivity testing

components and performing inspections and
laboratory tests on affected components
to determine the degree of degradation.
Inspections and testing of a representative
sample of excavated ground rods and below-
grade conductors and connectors provide
reliable indication of the overall health of the
grounding system.
Through excavations, testers can verify
and assess the conductor sizes and any loss
in diameter of ground rods due to corrosion.
Mechanically stressed connectors can be
detected and their resistance can be measured.
Ground rods may be pulled and tested in a lab
or tested non-destructively at the work site to
measure metal loss due to corrosion.

HEALTH INDEXING
In order to quantify the condition of a
grounding system relative to critical long-term
degradation factors that cumulatively lead to
its end-of-life, utilities can develop the Health
Index of the grounding system. Table 1 shows
grounding system health index formulation.
As described in Table 1, computing
the Health Indices for grounding systems
requires assignment of condition ratings to
various health and condition indicators. The
CEATI guide provides guidelines to maintain

40 | APRIL/MAY 2015 FREE Subscription: www.electricity-today.com

 Table 1: Health Index Formulation
# Condition Criteria Weight Condition Rating Factors Maximum Score
1 Quality of Original Grounding System Installation 4 A,B,C,D,E 4,3,2,1,0 16
2 Condition of Risers/Bonds to Equipment/ 4 A,B,C,D,E 4,3,2,1,0 16
Structures/Neutral/ Overhead Ground wires/
Attachment Points
3 Condition of Bonds to Buildings, Fences, Gates 3 A,B,C,D,E 4,3,2,1,0 12
4 Condition of Voltage Gradient Mats 2 A,B,C,D,E 4,3,2,1,0 8
5 Condition of Surface Stone 2 A,B,C,D,E 4,3,2,1,0 8
6 Surface Stone Resistivity 2 A,E 4,0 8
7 Grid and Bond Integrity 4 A,B,C,D,E 4,3,2,1,0 16
8 Current Injection Test 4 A,B,C,D,E 4,3,2,1,0 16
Max Score 100

Table 2: Condition of risers/bonds to buildings/fences/gates

Condition Rating Description
A Adequate number of riser conductors thread through fence fabric and are bonded to barbed wire, gates bonded
side-to-side, with gradient control grids under swing area and buildings
B Normal signs of wear with respect to the above characteristics
C A few (< 5 percent) of the risers/bonds have some deficiencies
D A significantly large fraction (> 5 percent and <50 percent) of the risers/bonds have serious deficiencies
E A majority (> 50 percent) of the risers/bonds have serious deficiencies

Table 3: Grounding system health index scale

Health Index Condition Description Requirements
85-100 Very Good No noticeable aging or deterioration of Normal maintenance
grounding system components
70-85 Good Minor deterioration of some grounding Normal maintenance
system components
50-70 Fair Significant deterioration of some Increase diagnostic testing, possible replacement of
grounding system components degraded components depending on criticality
30-50 Poor Widespread deterioration of most Start planning process to replace or rebuild,
grounding system components considering risk and consequences of failure
0-30 Very Poor Extensive serious deterioration of most At end-of-life, immediately assess risk; replace or
grounding system components rebuild based on assessment

objectivity, consistency, and uniformity in assignment of the
condition ratings—particularly when a large team is involved
in condition assessment. The guidelines can be reviewed and
modified by a utility, if necessary, to meet its specific plans
and objectives. As an example, Table 2 provides a guideline to
calculate condition rating of risers/bonds to buildings/fences/
gates.
After the health index of the grounding system has been
determined based on the criteria provided in Table 1, overall
condition of the grounding system can be expressed and
interpreted through the scale provided below in Table 3.
Health indices, determined in this manner, can be used
to benchmark the degree of degradation in performance
of a grounding system in providing its intended functions.
Additionally, health indices can be used to correctly direct
investments of the correct size and scope and at the
appropriate time into repairs, refurbishment, and replacement
of grounding systems, ensuring economic efficiency of the
investments. ET
Shawn Otal (is the chief executive officer (CEO) of METSCO
Energy Solutions Inc. and a senior electrical engineer with
over 35 years of experience. Babak Jamali is a professional
engineer with more than 15 years of experience in power
systems. Byron Ma is an apprentice engineer specializing
in system planning and ground grid investigations. Alex
Mogilevsky is a senior program manager, transmission and
distribution programs at CEATI International with over 25 years
of experience in program/project management.
CONTACT: alex.mogilevsky@ceati.com

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FEATURE | STATE OF INDUSTRY
A DANGER TO
RELIABILITY
HOW THE POWER INDUSTRY IS RESPONDING TO GEOMAGNETIC DISTURBANCES
BY MARK LAUBY, North American Electric Reliability Corporation
I
n 1989, the Québec grid collapsed as equipment protection
relays trip­ped in a cascading sequence of events. Six
million consumers were left without power for up to nine
hours. The cause of this major outage was a geomagnetic
disturbance (GMD).
Geomagnetic disturbances occur during solar storms
caused by charged particles, that are ejected by the sun
toward Earth. These high-ener­gy particles, known as a
coronal mass ejection, can travel to Earth in 14 to 96 hours
after erupting from the sun’s surface and can affect Earth’s
magnetic field. When this process occurs, quasi-DC voltages
are induced in transmission lines that drive the flow of
geomagnetically induced currents (GICs) through electrical
paths and grounded power equipment such as transformers,
with the potential to disrupt reliable operation of high-voltage
power systems.
The most significant issue for bulk power system operators
who respond to a severe GMD event is to maintain voltage
stability. As transformers ab­sorb high levels of reactive power,
protection and control systems may trip supporting reactive
equipment. For example, some instances have occurred
where GMDs have affected the North American electric power
grid, most notably, in March 1989 when a GMD resulted in
GICs that init­iated a blackout of the Hydro-Québec power
system. The unexpected need for reactive power support
caused by saturated transformers was the primary contributor
to the GMD-induced outage. Other sectors that can be
affected by GMDs include communications, navigation,
satellites, geology, and pipelines.
In addition to potential voltage issues in the power system,
geomagnetically- induced currents can pose a risk to the
health of some large power trans­formers. The design, age,
42 | APRIL/MAY 2015
Photo credit (solar eruption): National Aeronautics and Space Administration (NASA)
location, local geology, and condition of the large pow­­­er
trans­former play a large role in its susceptibility to the effects
of geo­magnetically- induced current. This is a particular
concern due to the high capital costs and long lead-times for
replacement associated with this equipment.
GIC flow in grounded power transformers can increase
internal heating and potentially cause transformer damage or
failure. NERC’s new standard includes requirements aimed at
addressing vulnerabilities to the bulk-power system from GIC-
related heating in transformers and system voltage impacts.
GMD’s POWER GRID IMPACT
Geomagnetic disturbances can vary in intensity. Moreover, a
GMD’s impact on an electric power system is dependent on a
number of factors, including the location of the geomagnetic
storm as well as the magnitude and direction of the
geomagnetic fields.
Additionally, the geomagnetic latitude of the electric power
system, the local geology (that is, electrical conductivity of the
ground), and the charac­teristics of the electric power system
are factors which dictate a GMD impact.
Impacts of a minor geomagnetic disturbance can include
radio inter­ference and electronic control malfunction. Impacts
of a major geomagnetic dis­turb­ance can include an increase
in reactive power consumption and a loss of voltage stability,
overheating of power transformers and improper operation of
transmission relays.
INDUSTRY RESPONSE
Most recently, the North American Electric Reliability
Corporation (NERC) completed a new reliability standard
entitled “Geomagnetic Disturbance Mit­­igation” in January
2015 aimed at addressing risks that geomagnetic
disturbances (GMDs) pose to the North American electric grid.
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 Major GMDs can possibly
increase reactive power
consumption and cause a
loss of voltage stability.

The new standard, which was filed with the Federal For comparison, researchers consider the March 1989
Photo credit (sunset): Bishnu Sarangi

Energy Regulatory Commission (FERC) for approval,
proposes requirements for utilities to assess the risks of a
severe geomagnetic disturbance on the bulk power sys­tem
and mitigate issues that are identified in the assessment.
A team of ex­perts from utilities in the United States and
Canada, along with a leading space weather researcher
from National Aeronautics and Space Administration
(NASA), worked collaboratively with industry stakeholders,
transformer manufacturer representatives and public
and private researchers to develop the proposed GMD
mitigation standard.
No geographic areas or regions are exempt from NERC’s
GMD reliabil­ity standards. However, the standards do
not ignore the geographic variability of GMD events and
they enable bulk power system owners and operators to
tailor mitigation plans based on the characteristics of their
equipment and system. Similar to other reliability standards,
NERC will support im­plementation of the GMD standards
with audits and enforcement actions, if necessary, in order to
assure protection of the bulk power system.
The GMD mitigation standard, which was filed with the U.S.
Federal En­ergy Regulatory Commission (FERC) in January
2015, relies on NERC and the power industry’s collaborative
efforts over the past several years to work with experts in this
maturing field of science on sound approaches to understand
and mitigate GMD risks. A key component of the standard is
the use of a one-in-100 year GMD event as the benchmark for
assessing vulnerability of the bulk power system.
GMD event to be between a one-in-40 year to a one-
in-75 year event, which is less intense than the proposed
benchmark. Under the standard, industry is expected to
periodically analyze the performance of their power systems
and equipment against the one-in-100 year benchmark and
address reliability issues, such as bulk power system voltage
performance and excessive heating in power transformers.
ASSESSING THE RISK
Assigning precise probabilities to the occurrence of extreme
geomagnetic storms is difficult because of their rare nature
and the lack of high fidelity geomagnetic recording of events
prior to the 1980s. Inherent uncertainty ex­ists in predicting
extreme rare events. By choosing a one-in-100 year event
as the benchmark for assessments and mitigation planning
required by the new standard, the industry is protecting the
power grid from extreme GMD events that are of the scale of
the March 1989 or greater.
NERC and stakeholders believe strong justification exists
for using the high benchmark that is being proposed in
NERC’s GMD mitigation stan­dard. Severe GMD events
have the potential to quickly and extensively impact large
parts of the power grid, as was seen in the March 1989
Québec power system event. Even stronger storms that
pre-date the modern electric grid have been recorded and
scientists from around the world are engaged in efforts to
improve the understanding of their characteristics. Selecting
a geomagnetic storm that represents the most severe in

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a 100-year period pro­vides industry a method to model
and measure impacts on the power sys­tem and develop
mitigations that result in a high level of assurance that the
bulk power system can operate reliably.
GMD RELIABILITY STANDARDS
Under NERC’s “Geomagnetic Disturbance Mitigation”
standard, adopted in December 2014, more robust mitigation
can be achieved by using specialized models of their power
systems to plan tailored mitigation that may include improved
operating procedures, equipment upgrades, or protection sys­
tems as part of overall future system design.
This recently completed mitigation standard complements
NERC’s on­going GMD efforts, which include another standard
that was approved by the U.S. Federal Energy Regulatory
Commission in June 2014.
NERC’s “Reliability Standard for Geomagnetic
Disturbance Operations” requires grid operators to develop
operating procedures that can reduce GMD impacts, which
is advantageous to reliability as operating procedures
can be developed and implemented relatively quickly,
drawing on industry’s op­erating experience in managing
geomagnetic disturbances.
Operating procedures can lessen the impact of GMD
events by increasing operator awareness of storm and
system conditions and enhancing pre­pared­ness for abnormal
conditions. Together, the two reliability standards complement
each another to provide resiliency using mitigation planning
and operating practices.
NERC’s new standard requires
utilities to develop operating
procedures that can reduce
GMD impacts.
44 | APRIL/MAY 2015
1989
Year of a severe geomagnetic disturbance that
collapsed the Québec power grid in a matter of
seconds as equipment protection relays trip­
ped in a cascading sequence of events
STANDARD IMPLEMENTATION
The GMD operating procedure standard is effective
as of April 2015. The GMD mitigation standard for
geomagnetic disturbance assessments includes a proposed
implementation plan that will phase in the requirements
over a five-year period following FERC approval. The
implementation timeline provides entities with sufficient time
to obtain new models and tools that are critical and unique
to assessing GMD impacts. In addition, the assessments
required by the new standard rely on coordination among
many entities, which is effectively sequenced during the
initial implementation.
STANDARD IMPACT ON INDUSTRY
The GMD standards affect generation and transmission
owners, operators, and entities responsible for planning
for the reliable operation of the bulk power system. These
standards apply to portions of the grid operated at 200
kilovolts or higher, where geomagnetically induced currents
tend to be highest. NERC’s actions show that it takes GMD
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 events seriously as a potential risk to the reliable operation of
the bulk power system.
FURTHER INDUSTRY EFFORTS
Since 2010, NERC has spent a substantial amount of
effort working with experts across the North American
power industry, U.S. and Canadian government agencies,
transformer manufacturers and other vendors, to address the
risk from severe geomagnetic disturbances classifying severe
GMD as a “high-impact, low-frequency” event requiring
special attention. That same year, NERC formed a task force
of leading industry operators and planners, government and
private researchers, equipment experts and policy makers.
With research support provided by the Electric Power
Research Institute, which has a long history of examining
GMD impacts, the task force’s purpose was to fully describe
the risks, gather, and test system and equipment models
vital to determine potential impacts, and develop a plan for
coordinated action.
In 2012, the NERC GMD Task Force released a report
titled “Effects of Geomagnetic Disturbances on the Bulk
Power System”. In addition to describing historical GMD
events and their effect on power system equipment and
operations, the report included a comprehensive set of
Photo credit (solar eruption): National Aeronautics and Space Administration (NASA)
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recommendations for NERC and industry, space weather
organizations and researchers.
Since that time, collaborative efforts between NERC’s
GMD Task Force participants and partners, such as the
North American Transmission Forum, have produced a
well-coordinated suite of models, guidelines, and tools for
assessing and mitigating GMD impacts. This work provided
the technical foundation for NERC’s new reliability standards.
Additionally, this work continues to advance the industry’s
capabilities in this maturing field by providing an open forum
for sharing ideas and best practices.
FAMOUS LAST WORDS
While the science surrounding standards
to address the effects of geomagnetic
disturbances has advanced since the 1989
event, it is still exceedingly difficult for scientists
in the United States and other countries to
predict when a coronal mass ejection will cause
a GMD affecting Earth. Furthermore, even if a
coronal mass ejection causes a GMD event on
Earth, which is rare, it is nearly impossible to
predict whether the event will impact the North
American bulk power system.
In North America, the responsibility for
monitoring and forecasting space weather
rests with the National Oceanic and
Atmospheric Administration Space Weather
Prediction Center and the Canadian Space
Weather Forecast Centre. Both countries
share data from magnetometers operated by
the U.S. Geological Survey, Natural Resources
Canada and other international participants.
With the evolution in detecting the
occurrence and impacts of geomagnetic
disturbances, forecasting capabilities have
also advanced. Numerical forecasting of the
near-space environment conditions under
NASA’s Solar Shield system can be used to
tailor information to industry needs. Currently,
forecasts are able to characterize the general
level of global geomagnetic activity.
Implementation of reliability standards
addressing geomagnetic disturbances and
other risks such as cyber and physical threats
will lead to a safer and more secure bulk
power system. ET
Mark G. Lauby is senior vice president and chief reliability
officer or the North American Electric Reliability Corporation.
NERC’s job as the Electric Reliability Organization in North
America is to ensure and enhance the reliability of the bulk
power system.
APRIL/MAY 2015 | 45
FEATURE | GROWTH & INNOVATION
TRACKING THE
How utilities can profit from forthcoming changes and technologies
BY JESSE BERST, Smart Cities Council
A
lready, smart city technologies are strong in Europe and
the Middle East. Now, cities all over North America are
joining the smart cities movement as well. Once the
journey begins, a city quick­ly realizes that it cannot become
smart and sustainable without the help of its electric power
utility. Like it or not, investor-owned utilities are being pulled
SMART CITY DEFINITIONS How this technology improves urban livability, workability, and sustainability
Computing power
Digital technology has transformed many other sectors. Now,
these technologies are changing how cities operate.
A smart city is not just about sustainability or even
resilience. A smart city delivers “triple bottom line” benefits:
quality of life, economic development, and environmental
improvements.
Instrumentation and ICT (information and communications
technology)
If we expand the technical definition, we can identify the
underpinnings of a smart city. Sensors record conditions.
Switches and related devices allow remote operation of
many functions. Computers analyze the data. A citywide
communications network carries the signals back and forth.
46 | APRIL/MAY 2015
into the smart city conversation.
Photo credit (lead image): Brigitte Werner, (smart city): Regiars via Wikimedia Commons
I predict many utilities will learn to appreciate the smart
cities movement. Implemented correctly, the smart cities
dialogue will give utilities powerful new advocates for the
policy and rate changes necessary to flourish. Im­ple­mented
correctly, dialogue will help utilities find partners to share the
costs of upgrades. Implemented correctly, smart cities will
position utilities as the foundation for future economic growth.
Instrumentation and ICT through situational awareness,
real-time optimization, and predictive analytics
This definition identifies three primary methods smart
technologies can assist in this process. These technologies
(1) update city officials on current happenings throughout
the area, with the ability to obtain the desired details to any
specific point, (2) allow cities and utilities to use computers to
fully optimize complex systems in real-time, a capability far
beyond the capacity of human operators, (3) give operators
the ability to predict potential problems in order to intervene
proactively in a timely manner.
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 Avista Utilities is spearheading
the 200-acre University District
Smart City Project in Spokane,
Washington at Washington State
University while searching for
“economies of scope”—methods to
use a single asset in multiple ways
to create multiple value streams.
Implemented incorrectly, utilities will face new adversaries,
as has hap­pened in some regions already around related
topics such as resilience and net metering.
Utilities must pursue a formula that leads to success. One
key to this for­mula is learning to share: searching for ways
utility infrastructure and data can be shared with cities to their
mutual benefit.
WHAT IS A SMART CITY?
Whenever a tech trend gains traction, the first challenge is to
reach a consensus definition. Although the term “smart city”
is quickly moving mainstream, the phenomenon still confuses
many individuals because virtually any and every aspect of
urban life can fall under the smart city umbrella.
For electric utilities, a smart city takes the same basic
concepts—sensors, communications, analytics—and applies
them to all of a city’s assets. The Smart Grid instruments
assets such as meters and substations. A smart city
instruments many other assets and objects including streets,
buildings, streetlights, and even garbage bins.
The aforementioned definition is general, especially if
utilities realize that cities are not restricted to monitoring
physical assets. Additionally, smart cities can monitor
environmental conditions such as air quality, water quality,
PROBLEMS PLAGUING UTILITIES AND CITIES
Budget constraints: By some estimates, fewer than 10 percent of
American cities have returned to pre-recession budget levels.
Aging physical infrastructure: Many cities have no choice; they
must rebuild their infrastructure. Increasingly, they are determined struggling to reinvent how they interact with their stakeholders.
to replace their infrastructure with smart versions.
Aging or missing ICT infrastructure: Many cities are a decade
or more behind industry in establishing a strong, enterprise-level
computing platform as well as in establishing citywide connectivity.
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Drivers Behind Smart Cities Trend
• Global competitiveness: Cities increasingly realize they
must be “smart” to attract the best jobs and talent. Those al-
ready on the path are documenting extraordinary benefits. In
the case of smart city pioneer Barcelona, nearly $4 billion so
far when you include new jobs and environmental benefits.
• Resource efficiency: Every city is pursuing increased ef-
ficiency in its use of power and water.
• Climate and sustainability: Some cities are strongly moti-
vated by greenhouse gas reduction, renewables and similar
sustainability issues, whether on their own or to meet state or
federal mandates. For instance, the 2015 Itron Resourcefulness
Index revealed that 64 percent of all surveyed consumers would
like the utility industry to focus on renewable integration.
• Dramatic improvements in technology: Sensors, communi-
cations networks, cloud computing, geographical information
systems (GIS)—these and many other underpinnings of a
smart city have seen costs plunge while capabilities skyrocket.
and storm threats. Moreover, with careful attention to privacy,
smart cities can also monitor people. Modern smartphones
are both a delivery platform—a place to use e-government
apps—and a sensor network. Most modern cell phones can
track everything from location to humidity to acceleration.
The “Smart City Definitions” sidebar on page 24 contains a
short series of smart city definitions, from simple to complex.
Each variation reveals another important aspect of the overall
vision. In addition, the final definition spotlights the shar­ing
issue. To achieve integrated, crosscutting solutions, cities will
inev­itably need to share infrastructure and share data with
their electric power utilities.
TACKLING THE SMART CITIES TREND
The smart cities sector is about to hit its inflection point.
That unstoppable momentum has been created by several
powerful drivers including global competitiveness, resource
efficiency, climate and sustainability, as well as dramatic
improvements in technology (refer to “Drivers Behind Smart
Cities Trend” sidebar). However, utilities must also understand
their own problems in order to collaborate effectively with
cities. Pinpointing problems should not be difficult, since
many utilities face similar issues (refer to “Problems Plaguing
Utilities” sidebar).
Urbanization pressures: As city populations grow, challenges
such as crime, congestion, and income inequality also increase.
Stakeholder engagement: Cities—similar to utilities—are
Citizens are choosing—in some cases demanding—to participate
in new ways, ranging from smartphone apps to social media.
Given the other constraints as previously mentioned, stakeholder
engagement is all the more critical.
APRIL/MAY 2015 | 47
TURNING CHALLENGES INTO OPPORTUNITIES
“We can turn these challenges into opportunities if we
have the right skills and frame of reference”, asserts Roger
Woodworth, Vice President and Chief Strategy Officer at
Avista Utilities, which provides electricity to roughly 340,000
customers in eastern Washington and northwestern Idaho.
Avista is embarking on a smart city pilot in Spokane,
Washington. Woodworth provided the following advice on
how to turn smart city challenges into opportunities.
1 Establish a shared purpose
This step requires stakeholder engagement and
strong partnerships before the implementation of
any smart city projects. According to Woodworth, “It takes
a village to raise a child and it takes a partner ecosystem to
build a smart city”.
2
Set up a mechanism for regular, effective collaboration
Woodworth reminds that cooperation and coor­
dination between stakeholders and electric utilities
must exist in order to achieve success in any smart city
project. Avista, for instance, has established a community
coalition and hired a full-time coordinator.
3 “Start small... but first think big”
This motto has long been a mantra of the Smart
Cities Council. Avista advocates the same strategy.
First, understand the long-term vision. Then, plan for a
future-proof platform that allows for a staged expansion. (As
opposed to isolated, single-purpose projects that reinvent the
same basic wheels.) Subsequently, start small and gradually
grow to scale.
4
Seek to jointly identify and remove policy barriers
In collaboration with the Avista formula, I would add
this fourth element based on my review of hundreds
of smart city initiatives in my role as Chairman of the Smart
Cities Council. The city and its utility can work to remove
policy roadblocks with a shared purpose and a mechanism for
collaboration.
48 | APRIL/MAY 2015
A Smart Grid is the bedrock of a smart city, yet
“it can be difficult for utilities to quantify the
full range of Smart Grid benefits”, explains
Russ Vanos, Senior Vice President,
Strategy, and Corporate Development
at Itron, a founding member of
the Smart Cities Council. “With
regulatory reform, commissions
could better value future benefits,
removing disincentives for utilities
as they build their business
cases”.
“Utilities have a real
opportunity to be visionary
leaders and help create the
foundation for smarter cities”,
explains Vanos. “Smart Grids
provide the mechanism for two-
way communications, as well as
real-time data for reducing energy
and water waste”. When building a
business case for implementing Smart
Grid projects, utilities should consider how
the technology could benefit local cities.
For instance, says Vanos, city leaders can use
information captured from smart devices to pump
water at off peak times and apply the savings to other city
programs. Alternatively, city leaders can compare building-
level information to create awareness and lower the energy
footprint, reduce waste, and create awareness to decrease
city costs.
SHARED INFRASTRUCTURE FOR SHARED SUCCESS
Sharing the communications network has been a key part of
the success experienced recently in Chattanooga, Tennessee.
EPB is a municipal utility serving more than 172,000 homes
and businesses across 600 square miles in the Greater
Chattanooga area. The utility has installed a 100 percent fiber-
optic network, which serves two purposes.
First, the fiber-optic system acts as the communications
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 network for EPB’s Smart Grid, where the speed
of fiber lets EPB pursue even the most
demanding distribution automation
applications. Those applications
were tested during a summer
storm in 2014. EPB was able to
restore power to thousands of
customers remotely. The utility
documented a 55 percent
reduction in outage durations
and 58 million avoided
minutes of customer
interruption, saving itself
$1.4 million on that one storm,
not to mention the business and
lifestyle benefits to its customers.
Second, EPB uses the fiber-
optic network to sell triple-play
media services (Internet, video and
telephone) to the community. The
network is able to offer upload and
download speeds up to one gigabit—200
times faster than the current national average.
Chattanooga’s combination of an ultra-
reliable grid plus ultra-fast Internet is beginning to
attract new business—about 1,000 jobs in the last three
years according to city officials, including data centers and
high-tech start-ups.
THE CHALLENGES OF SHARING
As witnessed, cities will increasingly ask utilities to share data
and share infrastructure, such as communications networks
and streetlights. However, that sharing will come with
economic, technical, legal, and “cultural” obstacles. Electric
utilities will rightfully have concerns such as overloading a
communications network or losing priority during outages.
Furthermore, electric utilities might not be legally allowed
to share data about customers or obtain rate support or
regulatory permission to host outside solutions on their
systems. Utilities certainly cannot afford to build custom, one-
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DID YOU KNOW
Florida Power & Light and CPS
Energy of San Antonio are both
about to announce projects to
use their existing communications
infrastructure for smart city projects
off data sharing solutions for each township in their service
territories. As a result, new standards and new policies will be
essential to the success of the utility-city partnership.
However, utilities across North America are increasingly
stepping up to experiment with sharing. “I think of the utility
and the city operating in three intersecting networks: The
infrastructure network, the communications network, and
the social network”, says Anne Pramaggiore, president and
chief executive officer (CEO) of Commonwealth Edison, which
provides electric service to more than 3.7 million customers
across Northern Illinois.
ComEd began to move toward a smart cities platform
three years ago when the utility launched a $2.6 billion
modernization program. Pramaggiore says the same wireless
communications overlay that allows for grid modernization
also provides a platform for smart city efforts.
“The more users connected to the system, the lower the
cost to any single user”, she explains. “Numerous devices can
be connected to the wireless network to create efficiencies in
core city functions—energy, water, and transportation”. ET
Jesse Berst is the Chairman of the Smart Cities Council, a
coalition of utilities and technology companies seeking to
improve urban livability, workability, and sustainability by
supporting and educating cities in their digital transformation.
COMMENTS: Jesse.Berst@SmartCitiesCouncil.com
APRIL/MAY 2015 | 49
FEATURE | SUBSTATIONS
TRANSMISSION
PLANNING
PLANNING
TRANSMISSION
Protecting the physical security of the power grid
BY FRANK MCELVAIN, Siemens PTI
R
ecent physical attacks on substations have heightened
the industry’s awareness of the necessity for physical
security of critical facilities on the bulk power system.
The goal of the North American Electric Reliability Corporation
(NERC) Critical Infrastructure Protection (CIP) reliability standards
is to identify and protect the physical security and cybersecurity
of critical electricity infrastructure of North America.
With the Federal Energy Regulatory Commission (FERC)
providing conditional approval of the North American Electric
Reliability Corporation’s new CIP-014-1: “Physical Security”
reliability standard in November 2014, the standard became
effective on January 26, 2015. This leaves many in the
industry seeking further clarification on the technical approach
and methodology required in performing vulnerability
assessments to determine which stations may be worthy of
further physical security measures.
While the standard itself is silent on study methodology
requirements, this feature in the April/May 2015 issue of
Electricity Today Magazine offers the guidance of a suitable
technical approach and the measures that should to be taken
into consideration to not just comply with the standard, but
also to truly study the threats represented in CIP-014-1.
CIP-014-1 requires transmission owners (TOs) and
transmission operators (TOPs) to identify and protect
transmission stations, transmission substations (and
their associated primary control centers) that if rendered
“inoperable or damaged as a result of a physical attack could
result in widespread instability, uncontrolled separation,
or cascading within an interconnection”. Furthermore, the
standard reinforces the steps that must be taken to secure
the substations that present the greatest risk to reliability if
damaged or inoperable.
50 | APRIL/MAY 2015
CIP-014-1 REQUIREMENTS AND MEASURES
Photo credit (Utility control room): PJM Interconnection
The standard contains six requirements, with the results of
Requirements R1 and R2 placing a significant emphasis
on the applicability of the remaining requirements. While
Requirements R3 through R6 do not focus on transmission
planning, these specifications are included in the following
points to capture a holistic picture of the standard.
1
Requirement R1 mandates that applicable
transmission owners perform an initial risk
assessment—and subsequent risk assessments—
of their existing and planned transmission stations
and transmission substations to identify critical facilities
on their systems. Additionally, the transmission owner will
be responsible for identifying the primary control center
that operationally controls each transmission station or
transmission substation that is identified in the Requirement
R1 risk assessment.
2
Requirement R2 calls for each applicable
transmission owner to have an unaffiliated third
party with appropriate experience to verify the risk
assessment results performed under Requirement
R1. Modifications that are consistent with the verifier’s
recommendation should be implemented, or further technical
basis for not doing so should be documented.
3
Requirements R3 through R6 highlight requirements
for transmission owners and/or operators to conduct
evaluations of potential threats and vulnerabilities
of a physical attack on each of their respective
transmission station(s), substation(s) and primary control
center(s) as identified in Requirement R1 and verified
in Requirement R2. Latter requirements mandate the
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 development and implementation of a physical security plan
that addresses potential threats and vulnerabilities, as well as
a third-party verification of this plan.
STUDY METHODOLOGY CONSIDERATIONS
When establishing a study methodology, it is crucial to take
into consideration the intention of the standard. Assuming that
there is a differentiation between satisfying the compliance
requirements and satisfying the threat described by the
standard, study methodologies must be adjusted accordingly.
If the objective of this exercise is to be prepared for the
worst-case scenario, then addressing just the bare minimum
requirements of the standard will be insufficient in mitigating
the true threat that is posed. The time to repair damaged
equipment is also a fundamental contribution to these studies.
A significant station-out scenario consists of three
distinct phases. The first phase is surviving the initial
station-wide contingency, a phase receiving most of the
industry’s focus. However, a temporary “new normal”
will establish itself over a lengthy time period. Electric
utilities cannot ignore these temporary long-term station-
out scenarios, which require a minimal level of additional
study to gain the insights necessary to confidently assure
operational system reliability. This temporary new normal
may exist for a period of up to 16 months, in the worst
case, as shown in Figure 1. Minimally, the transmission
owner should confirm that generation near the damaged
Physical damage remains a real
vulnerability to electricity infrastructure
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station remain in stable operating configurations through all
three station-out phases.
Additional goals for these studies should be to gain
operational insight if an event described in CIP-014-1
were to actually occur, which would require consistency
among the entire family of NERC standards based on study
outcomes. Transmission owners do not need to treat system
inadequacies in these studies as indications that a station
is critical, but instead can seek to develop new operating
procedures that will be invoked if the abnormal condition
arises. That is, a new operating procedure may mitigate the
necessity for physical security measures, by allowing the
system to operate in a stable manner through the temporary
normal condition created by a station-out scenario.
The two longer-term station-out phases include a period of
two to four weeks in which the entire station could be out of
service, followed by a period of up to 16 months in which the
station is mostly restored, except for the damaged station’s
transformers. Figure 1 indicates current replacement times for
larger substation equipment.
The critical path item is the replacement of transformers,
which currently require up to 16 months to be manufactured,
shipped, delivered, and energized. Considering these factors,
the new normal also could create new, more constraining
interconnection reliability operating limits (IROLs) for which
other organizations, responsible for restoring stable operation
to the system within 30 minutes, are responsible.
APRIL/MAY 2015 | 51
 Figure 1: Current replacement times for large substation equipment
Damaged Station Weeks to Replace
Equipment 4 8 12 16 20 24 28 32 36 40 44 48 52 56 60 64
Bus O
Circuit Breakers O Most Likely P
Switches O P
Current Transformers OP
Other Switchgear OP
Power Transformers O Most Likely P
Cooling Radiators OP
Surge Arresters O P

O = Optimistic P = Pessimistic

GUIDANCE ON DEVELOPMENT
Given the aforementioned considerations, how can
transmission owners proceed with performing a study?
After surviving the initial contingency in both power flow and
stability, transmission owners must evaluate the system’s
ability to survive the next contingency for the next few weeks,
months and so on. System operators must become aware
of how the system will respond to such contingencies in
advance; this procedure cannot be studied effectively after
the station has been taken out of service.
1
First, approach the study as a means to mitigate the
criticality of a station. Granted, stations may exist
that are so important to the grid that no operating
alternatives are available to lessen their importance,
and for which physical security will be required. However, for
most stations, options are available by which to reduce the
station’s criticality. These options include system redispatch,
or deploying spare transformers at other locations on the
system, with the ability to be moved and connected to the
critical location.

2
Study each applicable station-out contingency in
power flow and stability. The transmission owner has
considerable latitude in this matter; removing all voltage
level buses and connected branches is recommended.
Transmission assets critical Furthermore, in stability studies, simulations with three-phase
faults are suggested with normal clearing times.
to reliable power delivery

3
Determine if nearby generation remain in stable
operating configurations. This process includes
creating two longer-term station-out power flow cases
for each station being studied. The first station-out
case should represent the initial long-term system conditions
in which all station buses and switchgear are unavailable,
with all branches connected to the station being studied out-
of-service. The second case should represent the following
long-term conditions in which station buses, switchgear, and
branches have been returned to service, but for which the
station’s transformers remain unavailable.

4
Perform an N-1 power flow analysis on each created
station-out case, and search for the normal areas of
concern, including high or low voltages, or overloads.
An N-1 power flow would study a scenario in which
the system must be able to tolerate the outage of one
component on the system without disruption to the reliability
of the system as a whole.

5
For each of the station-out cases created, perform
dynamic studies to assure generation can operate
in a stable manner. Minimally, this process includes
placing a three-phase fault at the high-voltage bus
of each generation plant, clearing the fault under expected
clearing times, and tripping the highest loaded high-voltage
circuit emanating from the plant. If an instability is identified,
reduce plant output to find the output that the system can
accommodate while also assuring N-1 stability. When the
system identifies this output level, transmission operators
must redispatch the circuit within a 30-minute period,

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 Table 1: NERC CIP-014-1 standard implementation deadlines
Date Requirement
October 1, 2015 Effective Date of CIP-014-1 (in the U.S.) – U.S. entities must comply with Requirement R1
by this date
December 30, 2015 U.S. entities must have completed Parts 2.1, 2.2, and 2.4 of Requirement R2
February 28, 2016 Latest date by which U.S. entities must have completed Part 2.3 of Requirement R2
March 6, 2016 Latest date by which U.S. entities must have completed Requirement R3
June 27, 2016 Latest date by which U.S. entities must have completed Requirements R4 and R5
September 25, 2016 Latest date by which U.S. entities must have completed Parts 6.1, 6.2 and 6.4 of Requirement R6
November 24, 2016 Latest date by which U.S. entities must have completed Part 6.3 of Requirement R6
October 1, 2017 Due date for informational filing addressing control center issue

as required in NERC’s reliability standard TOP-004-1: FAMOUS LAST WORDS

“Transmission Operations”, Requirement R4.
NERC’s CIP-014-1 is silent on specific study
With the aforementioned studies, each transmission owner methods, but that does not mean that utility
and transmission operator will be able formulate any studies should fall short of preparing for the
necessary operating procedures and determine if there are
any detrimental impacts to operating reserves. This allows physical threat specified in the security standard.
the entire industry to be prepared for the worst, while also Physical damage remains a real threat to electricity
demonstrating compliance with CIP-014-1. infrastructure, requiring a minimal level of pre-
planning. This feature has presented a method to
MOVING FORWARD WITH IMPLEMENTATION
Applicable U.S. entities must comply with CIP-014-
fill the gap between the standard’s language and
1 Requirement R1 by October 1, 2015. Subsequent the minimum level of pre-planning necessary to
requirements must be performed based on specific timelines gain helpful reliability insights, if the worst case
according to completion of Requirement R1. For example, were to occur. ET
Parts 2.1, 2.2 and 2.4 of Requirement R2 must be completed
within 90 calendar days of the effective date of the standard,
and Part 2.3 must be completed within 60 calendar days of
the completion of Requirement R2, Part 2.2. Although the
Frank McElvain has been a system planning and
standard is designed to be dependent on the completion
operations professional in the industry for over 30 years,
of certain prior specifications, NERC has issued a guideline
and simultaneously served as a reserve officer in the
of dates that direct transmission owners and transmission
military. He also currently represents large power users on
operators to comply with certain requirements by specific
the NERC Standards Committee.
deadlines (refer to Table 1).

Standards help ensure transmission line security

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ELECTRICAL SUBSTATIONS CHANNEL

DEMYSTIFYING ETHERNET
CABLE SELECTION
Six steps for selecting proper THE PLEDGES OF THE SMART GRID

cabling for substations 1 Integrate renewable energy sources into the grid in order to
reduce dependency on traditional sources that may be harmful
to the environment
BY TIM WALLAERT, Belden 2 Increase the overall efficiency of the electrical system
3

E
lectric utilities are constantly searching for the most Enhance reliability by monitoring equipment and fixing
efficient, reliable and cost-effective methods to deliver problems before an outage is caused
electricity to customers. A vision for accomplishing 4 Improve recovery time by switching power around downed areas
this is the migration of the electrical grid from a reliable,
but inflexible system to the Smart Grid, which promises 5 Meet peak demand without requiring the build-out of additional
adaptability and efficiency. traditional generating facilities
One definition of the Smart Grid, based on work from the
U.S. Department of Energy, is: “A modernized electrical grid substations and gather important and necessary information.
that uses information and com­munications technology to In order to integrate with the Smart Grid, however, substations
gather and act on information in an automated fashion…to require two-way communication, which involves upgrading to
improve the efficiency, reliability, economics, and sustainability modern Ethernet and IP-based systems.
of the production and distribution of electricity”. With this migration, many utilities are faced with having to
The promises of the Smart Grid are exciting on many fronts design and implement communications infrastructures, which
such as in­creasing the overall efficiency of the power system are dissimilar to any previously involved project.
(refer to “The Pledges of the Smart Grid” sidebar). Utility engineers, field technicians, managers, or information
However, to accomplish all promises and pledges, technology (IT) employees working on a communications
the elements of the electrical grid requires the ability to project might wonder where to begin. One basic, but critical
communicate and share data quickly. Currently, the majority first step is to select the appropriate Ethernet cable for the
of utilities are still using technologies—ranging from modem substation application.
connectivity to serial bus technology—to ‘talk’ to their
THE RISK OF THE WRONG ETHERNET CABLE
WHERE NETWORK FAILURES OCCUR In a typical office setting, the Ethernet
infrastructure is installed in a relatively
clean, quiet environment with cables hidden
Application 3%
Application Programs behind walls, in ceilings or under floors; and
network switches, hardware and connectivity
Presentation 7%
components sheltered in protected areas.
8% Network Operating Electrical substations, however, present a
Session
very different reality. Most ca­bles, connectors,
Systems
10 % switches, and active network components are
Transport integral to the substation’s instrumentation
12 % and control systems, which places them in
Network Network harsh and potentially hazardous situations.
25 % Components Unconditioned control sheds—with equipment
and Media exposed to electromagnetic fields and waves,
Data Link 35 % and wide temperature swings due to no
heating or cooling—are the norm.
Physical
Even the best commercial off-the-shelf
(COTS) Ethernet systems are not made to
Source: Datacom, Network Management Special
handle these conditions over time. Rugged
conditions call for ruggedized cables and only
Figure 1: The Open Systems Interconnection (OSI) Model shows the layers of industrial-grade Ethernet system components
communication systems, and reveals where network failures most often occur. are built tough enough to withstand the hazards
Downtime costs for a power plant can average around $45,000 per hour. If dam- and risks they are exposed to day after day.
aged or unsuitable cable is at the root of an outage, network downtime can be When it comes to wire and cabling for your
lengthy due to the difficulty of troubleshooting cable issues. substation, basic principles still apply. It is

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 “
A critical first step in migrating
to modern Ethernet and
IP-based systems is to select
“ where the devices may have copper Ethernet ports, the use of
the right Ethernet cabling.
essential to use the appropriate industrial Ethernet cable to
achieve reliable performance. Improper cables are difficult
to troubleshoot and cause the majority of communication
problems.
In fact, according to Datacom’s Network Management
Special, more than 70 percent of all communication errors
are introduced at the physical layers of a network (refer to
Figure 1: Where Network Failures Occur), such as cables and
connectors. Operating systems and application programs, on
the other hand, account for fewer than 30 percent of failures.
When the cost of cabling is compared to the cost of a
network failure, it is abundantly clear that it makes financial
sense to select and install the appropriate cable for the
project the first time. It is vital to determine the proper cabling
infrastructure that fully supports the system requirements. The
following are specific steps to assist electric utilities through
the process.
SIX STEPS TO SELECTING ETHERNET CABLES
1 3
Understand the flex and environmental factors
First, utilities must understand the flex and
environmental requirements of your substation
application. Refer to the following examples.
• Cabinet or control rooms (low vibration): In these types
of applications where it is an enclosed environment and
vibration is limited, a solid conductor is the correct choice
because it is future-proofed with high bandwidth capability.
• On equipment (high vibration): For use on or near the
electrical equipment, where vibration and temperatures are
high to very high, utilities need extremely flexible cabling
that is resistant to trailing and torsion, as well as a high
level of connectivity protection against liquids (M12 with
IP67 and IP68 protection).
2
Determine copper and fiber media requirements
Two of the traditional criteria that differentiate
the use of copper or fiber optic cable are the
length of the network cabling segments and the
rate of data transmission. However, in the substation, the
ability to withstand the strong electrical noise environment is
DETERMINING MEDIA
Copper Fiber
Maximum Up to 100 meters Up to 2,000 meters:
Cable Length multimode fiber
More than 2,000 meters:
single-mode fiber
Data Rates 100 Mb/s (Cat 5e) 10 Gb/s
1 Gb/s (Cat 6)
Table 1: Basic guidelines for determining the appropriate media for use
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the primary driver. The rule of thumb utility workers should
follow is to use copper for anything that requires Power over
Ethernet (PoE) and fiber for all other applications. In cases
media converters is recommended (copper to fiber), especially
if the cabling is rolled out across the substation yard. Table 1
provides basic guidelines to determine the appropriate media
for use in the substation.
If the cable run lengths are long and the data volume is
high, then fiber cable may be the obvious choice, so utilities
can select a specific fiber cable.
Alternatively, if the runs are short and the data volume
fits within copper’s capacity, then copper is a fit. During the
process, utilities should not forget to plan ahead by taking into
account higher data requirements that may occur in the future.
If the requirements are somewhere in the middle, utilities
might want to consider additional general differences between
copper and fiber Ethernet cable. Table 2 provides some
distinctions between copper and fiber cable.
In reviewing the characteristics in Table 2, if utilities require,
for example, lightweight cable that is immune to electrical
noise and is not a spark hazard, fiber is most likely the
appropriate fit for the installation.
A final consideration facing some substation engineers is
the theft of copper wiring from their facilities. The damage
and loss of this cabling can be an unexpected cost and some
engineers are switching to fiber to reduce this issue.
Choose the appropriate jacketing for the location
The proper jacket material will provide the
necessary protection against a variety of
environmental and physical challenges that
substation cabling may face. The “Questions for Jacketing
Selection” sidebar provides questions to answer before
considering a particular jacketing for a cable. The cable jacket
can adapt a cable for particular environmental conditions, as
shown in Table 3 on page 56.
4
Choose high-performance cable designs
While fiber cabling is often preferred, due to its
resistance to electromagnetic interference (EMI), if
copper cabling is necessary, utilities must consider
additional items.
Copper cables with bonded-pair technology are designed
for high-balance performance and optimal signal transmission
integrity. These cables provide resistance to the rigors
COPPER & CABLE
Copper Fiber
Electrical Susceptible, unless Immune
Noise bonded-pair and/or
shielded
Spark Haz- Hazardous No spark hazard
ard
Weight Heavier Lightweight
Durability Lower, but can be High
improved with
jacketing
Cost Lower Higher
Table 2: Distinctions between copper and fiber cable
APRIL/MAY 2015 | 55
 TYPES OF JACKETING
QUESTIONS FOR JACKETING SELECTION
Function PVC Low Smoke Zero
What to answer before selecting product for a cable Halogen
• What operating temperature range is needed? Oil Resistance ** N/A
Abrasion ** *
• Is there dust or water? Resistance
Continuous Flex ** *
• What electrical noise is there?
Specific General No toxic smoke, im-
Attributes purpose, good proved environmental
• Are there vibrations? mechanical sustainability, excel-
strength lent flame resistance
• Could the cable be cut, crushed, or abraded?
Cost of Installation
• Will the cable be flexed? Type of Application Permanent Permanent installation
installation
Moderate Moderate flexing
of installation by applying a manufacturing technique flexing
that attaches the insulation of the cable pairs along their
longitudinal axis so no gaps can develop between the Legend: * = fair, ** = good
conductor pairs. This bonded-pair technology enables the Table 3: Chart shows application requirements and the appropriate
cable to maintain electrical performance even when it is bent,
corresponding jacket materials necessary
pulled, or twisted. Twisted pair cable construction may be
susceptible to pair gapping during installation, as well as
impedance mismatches. environments. Shielding uses a foil or braid to protect the
integrity of the signal and to screen out any undesirable

5
Consider electrical noise
Electromagnetic interference (EMI) and radio
frequency interference (RFI) noise levels must
be evaluated to determine if utilities should use
shielded or unshielded cables.
Utilities can use unshielded cables in most environments,
but shielded cables are recommended for high-noise
interference or noise. However, to provide extra durability
and noise protection, cables may also use a foil and braid
combination.
Highly balanced, bonded-pair cables in shielded or
unshielded configurations provide the most robust noise
immunity performance. Fiber cable provides the ultimate level
of noise immunity.

The integral elements of electrical substations need to be ruggedized

to protect them from harsh and hazardous situations.

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 SUBSTATION CABLING INSTALLATION GUIDELINES Sections available in the IEEE 525 standard
CONTROL & INFORMATION COMMUNICATION FIBER OPTICS
Control and information cable for Communication cable, including Fiber optic cable for interconnecting
equipment control cabinets, conduits, telephone, data, and coaxial cables, for substation control and protection
cable trenches, cable trays or other transferring data between intelligent equipment, to connect the substation
raceway systems in the electric substa- electronic devices (IEDs) at the substa- equipment to offsite circuits, and to
tion environment; in the U.S., cables are tion and communication equipment at connect instrumentation and commu-
usually designed and constructed in the remote site nication devices
accordance with the National Electrical
Manufacturers Association’s NEMA WC
57-2004/ICEA S-73-532 standard: “Stan-
dard for Control, Thermocouple Extension
and Instrumentation Cables”

6
Follow installation guidelines LAST LOOK
Finally, follow the IEEE 525 substation cabling
installation guidelines. Compliance will ensure that While the Smart Grid promises vast
substation cables will work properly for years to improvements for the reliability, efficiency,
come. The IEEE Standard Association’s guide offers details and economics of utilities, it will not meet the
on the design, installation, and protection of wire and cable
systems in substations, with the goal of minimizing cable
goal that power producers envision without a
failures and the consequences. robust communications infrastructure in place.
For each cable type, the IEEE guidelines offer specific Choosing the appropriate cable for transmission
details related to cable selection, cable raceway design, and distribution substations plays a critical step
routing, transient protection, electrical segregation,
in ensuring electric utilities have the appropriate
separation of redundant cable, cable pulling tension,
handling, installation, acceptance testing, and recommended communications infrastructure to fully capitalize
maintenance. The “Substation Cabling Installation Guidelines” on available Smart Grid opportunities. ET
sidebar provides a short listing on the available relevant
sections within the IEEE 525 standard.

Tim Wallaert is global director of vertical markets, energy at

Belden focusing on substation communication and automation
as one of the key enablers for Smart Grid applications. He also
is a veteran of several early Smart Grid demand response pilots.

The integral elements of electrical substations need to be ruggedized

to protect them from harsh and hazardous situations.

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$
POWER TRANSFORMERS CHANNEL
LOSS COST FORMULA
In 1998, the Ontario Municipal Electric Association, or OMEA
(predecessor to the Electricity Distributors Association),

COUNTING
published a formula for dis­tribution transformers supplying
urban loads (refer to formula in “OMEA Loss Cost Formula”
sidebar).
Loss costs are largely proportional to electricity prices.

THE COSTS
Since 1998, prices in Ontario—and elsewhere—have risen
much faster than the overall rate of inflation. In 2012,
Don Dewees, University of Toronto professor emeritus of
economics, reported the following price changes for Toronto
residential customers (refer to Table 1).
Crunching the numbers for Since the Dewees study, prices for most consumers have
transformer loss costs continued to rise in Ontario, from an average of 10.15 cents
per kilowatt-hour in 2010 to 12.65 cents per kilowatt-hour in
2013. This 25 percent hike contrasts with the five per­cent rise
BY JOE CROZIER, PowerStream & LORI GALLAUGHER, in the Canadian consumer price index over the same period
Utilities Standards Forum of time.

A
car owner must make some important decisions when OMEA LOSS COST FORMULA
purchasing a new vehicle—particularly if he or she
has not bought one in dec­ades. The features of the Cost of losses = (8.3 × N) + (4.1 × L) [$]
hundreds of 2015 models available can seem overwhelming.
The budget-conscious owner, considering factors such as
WHERE:
fuel efficiency, miles/kilometers driven, and gas prices, soon N = no-load losses (NLL) in watts, 8.3 in $/watt
learns that low price does not mean low cost. A highly fuel-
efficient car with a high cost may be uneconomic at 1998 L = load losses (LL) in watts, 4.1 in $/watt
gas prices, but a paying proposition in 2015—or not. In order
to make an informed decision, the potential owner must FORMULA REVIEW
calculate his or her numbers correctly. In May 2013, Lori Gallaugher, Executive Director of the Utilities
Similar to accurate gas prices, correct estimates of Standards Forum (USF), a non-profit corporation owned by
transformer loss costs can help minimize total ownership
cost (TOC), a financial estimate used to determine direct
and indirect costs of a product or system. Distribution
transformers in a municipally-owned utility can make up more
than 10 percent of the book value of its assets—and last
decades. Therefore, crucially, utilities must ensure that their
distribution transformers are as economic as pos­sible
to own and operate. Utilities can achieve this goal by
accounting for a trans­former’s losses upon purchase (refer to
“Transformer Owning Cost” sidebar).
No-load losses—core losses —exist whenever a trans­for­
mer’s core draws magnetizing current. The core is the chan­nel
through which energy
TRANSFORMER OWNING COST flows from the excited
winding to the others.
Total cost of ownership = Some of this energy is
(sticker price) + (lifetime operating
wasted as heating and
and maintenance costs)
hum­ming. No-load losses
+ (no-load loss costs) + (load loss costs)
vary slightly with
excitation vol­tage, but,
for most practical pur­
poses, remain con­stant
24 hours a day, seven
days a week. In contrast,
load losses—coil
losses—are caused by
I2R (Joule) heating of the
load-carrying windings,
and vary with load-
squared. (I2R heat­ing in a
metal is due to in­elastic
interactions between
con­duc­tion electrons and
the metallic lattice.)

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 RESIDENTIAL PRICES Table 1: Residential Prices, Toronto, 2000-2010
49 of Ontario’s electricity distributors, 2000 2010 %change %change/year
formed a working group to examine total nominal real
the total ownership cost formula for
Consumer price index 100.0 122.5 22.50 2.05
distribution transformers and recommend
an updated approach to USF members. 1000 kWh/month bill [$] 83.50 132.06 58.16 4.69 2.59
The organization develops and maintains Bill including tax [$] 89.35 149.22 67.01 5.26 3.15
a shared set of electrical and material
standards that meets the electrical Electricity price [c/kWh] 4.30 7.50 74.42 5.72 3.60
distribution safety requirements of Ontario Transmission price [c/kWh] 1.00 1.20 20.00 1.84 -0.21
Regulation 22/04 (Electrical Distribution
Distribution price [c/kWh] 1.00 1.57 57.00 4.61 2.51
Safety), a set standard for licensed
electricity distributors in the province.
ESTIMATING TRANSFORMER LOSS COSTS
LOSS EVALUATION METHOD Steps taken to calculate losses for distribution transformers
The IEEE Standard Association’s standard C57.120: “Loss
Evaluation Guide for Power Transformers and Reactors” 1 Determine unit price of electricity
describes in detail how to cal­­culate loss costs for substation
transformers. This method is unnecessarily complicated for
2 Remove costs that do not apply
dis­tributors, as it accounts for the power require­ments for fans 3 Estimate expected transformer life
and pumps—not used in distribution trans­formers—and also
requires separate in­vest­­ment cost estimates for generation 4 Calculate prices over expected transformer life
and trans­mission—data not readily available to most local 5 Discount future prices to present values
distributors.
6 Sum present values to obtain NLL costs
CHANGING THE FORMULA 7 Match load and loss factors to application
Instead, the USF Working Group based its ap­proach on a
principle stated by O.C. Seevers, in the “Power Systems 8 Estimate peak responsibility factor
Handbook: Design, Oper­ation, and Maintenance”: “Every 9 Apply loss factors and PRF to obtain LL costs
peak kilowatt of loss on your distribution system has to be
generated, transmitted, and distributed. How can a gen­ 10 Perform sensitivity analysis
erator, transmission line, or distribution line be expected

to tell whether the last kW loaded on its back is going to a

paying load, or is going to be dissipated as heat and lost
into the atmosphere? Af­ter all, that’s load, just as much as
any metered kilowatt. Only there is no compensation for
it. However, someone has to provide just as much trans­
mission capacity for it as for a metered kilowatt; just as much
distribution capacity; just as much generating capacity”.
The steps we took to estimate transformer loss costs can be
found in the “Estimating Transformer Loss Costs” sidebar.

1
Determine Unit Price of Electricity
According to the Ontario Energy Board’s “2013
Yearbook of Electricity Distributors”, the province’s
distributors bought 14.30 gigawatt-years in 2013, paying
the supply system over $12.43 billion and incurring internal
costs of $3.42 billion for an average price of 12.65 cents
per kilowatt-hour. Between 2013 and 2015, prices under the
Ontario Regulated Price Plan rose a further 1.6 cents/kWh, to
a current (mid-2015) price of 14.2 cents/kWh.

2
Remove Costs That Do Not Apply
The amperes that supply distribution transformer
losses do not flow through the secondary
distribution system. Secondary costs are a fairly small fraction
of distributors’ internal costs (around 10 percent). Since
payments to the supply system account for 80 percent of
distributors’ revenues, secondary costs make up two percent
of the total. Reducing 14.2 cents/kWh by two percent gives an
adjusted average price of 13.9 cents per kilowatt-hour.

3
Estimate Expected Transformer Life
We assumed that distribution transformers last 40
years, based on the 2010 Kinectrics report, “Asset

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 7
Depreciation Study for the Ontario Energy Board”. This 40- Match Load and Loss Factors to Application
year life applies to both pole- and pad-mounted oil-filled A customer’s load factor equals its average
transformers. annual load divided by its annual peak. Likewise,
loss factor equals average loss divided by peak loss. For

4
Calculate Prices over Expected Transformer Life distribution transformers, the relationship is: loss factor = 0.15
The Long-Term Energy Plan (LTEP), announced in × (load factor) + 0.85 × (load factor)2. Refer to our estimates in
December 2013 by Ontario Energy Minister Bob the “Loss/Load Factors” sidebar.
Chiarelli, predicts yearly price increases for residential users
of around 2.5 percent until 2022, and 0.85 percent for the next
ten years. We assumed that unit prices would rise in proportion
LOSS/LOAD FACTORS
to the monthly forecasts shown in the “Typical Residential Type of load Load factor (%) Loss factor (%)
Electricity Bill Forecast” graph, originally published in the LTEP, Three-phase non-residential 60 39.6
with further yearly increases of one percent past 2032.
Single-phase residential – urban 25 9.1

5
Discount Future Prices to Present Values Single-phase residential – rural 10 2.4
For discounted cash flow calculations, we used a ­

8
discount rate equal to the OEB-deemed weighted
average cost of capital (WACC) from the previous rate filing. Estimate Peak Responsibility Factor
WACC varies with utility and time. In this issue’s Power The IEEE Standard Association’s standard C57.120:
Transformer Channel, we assume six percent, but recommend “Loss Evaluation Guide for Power Transformers
strongly that each utility use a rate appropriate for its own and Reactors” defines peak responsibility factor (PRF) as a
capital structure and financial environment. transformer’s load at the time of the system peak, divided
by its peak load. When deriving load loss costs from no-load

6
Sum Present Values to Obtain No-Load Loss Costs loss costs, we need to square PRF, since load losses vary
No-load loss costs equal the present values with load-squared. Two group members calculated the peak
estimated previously, summed over expected responsibility factor from the smart meter data of our residential
transformer life, converted from cents per kilowatt- distribution transformers: 0.90 for Guelph Hydro and 0.92 for
hour to dollars per watt. (refer to “Calculating No-Load Loss PowerStream. We, therefore, estimated PRF at 0.91.
Costs”, Table 2.)

Figure 7: Typical Residential Electricity Bill Forecast

240
225 228
221
218 218
Monthly Residential Bill, Includes taxes in

218 216 216 215

220 212
204
Nominal $ assuming 800 kWh

210
205 207
200 190 202 204
191 198 200
193 194
178 188 191
187
180 172 181
167 178 177
162 170
154 167
160 162 A typical residential customer can expect to pay
152 about $520 less than the previous forecast in the
140 145 near-term (2013 to 2017), and $3,800 less over
138
13 7 the life of the plan (2013 to 2030).
120 125

100 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032

2010 LTEP before OCEB 2013 LTEP before OCEB 2013 LTEP after OCEB

* Beyond 2015, the OCEB program’s future would require legislative changes and would need to take into account a number of
factors including the province’s fiscal position.

Source: Long-Term Energy Plan, Ontario Ministry of Energy

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 CALCULATING NO-LOAD LOSS COSTS Table 2
Photo credit (dollar sign): Gerd Altmann

Year Formula: Last year’s price x (next year’s bill/this year’s bill) ÷ yearly discounting factor = this year’s price
2016 13.90 × (167/162) ÷ 1.06 = 13.52 cents/kWh
2017 13.52 × (170/167) ÷ 1.06 = 12.98
2018 12.98 × (178/170) ÷ 1.06 = 12.82
2054 2.43 × 1.01 ÷ 1.06 = 2.31
2055 2.31 × 1.01 ÷ 1.06 = 2.20 cents/kWh
** Add cents/kWh totals for each year together to calculate no-load loss costs
NO-LOAD LOSS COSTS 2016 (cents/kWh) + 2017 (cents/kWh) + cents/kWh + 2018 (cents/kWh) + • • • + 2054 (cents/kWh) + 2055 (cents/kWh)
NLL costs = 13.52 + 12.98 + 12.82 + • • • + 2.31 + 2.20 = 259.4 cents/kWh = $2.594 $/kWh = $22,740 $/kW based on
8,766 hours per year = $22.7 $/watt
­

9 Apply Loss Factors & PRF to Obtain Load Loss Costs

As the “Comparing Loss Cost Estimates” sidebar
shows, no-load loss costs are now almost three
times higher than they were in 1998, whereas for transformers
“ Transformer life is less than
proportional: due to the effect
of discounting on future cash
supplying residential customers, load loss costs are less than
half the earlier figure. flows, doubling expected life “
from 25 to 50 years increases loss
COMPARING LOSS COST ESTIMATES cost estimates by 33 percent.
Type of load No-load loss Load loss costs
costs ($/watt) ($/watt)
Three-phase non-residential 22.7 7.5
Single-phase residential – urban 22.7 1.6
Single-phase residential – rural 22.7 0.4
­

10
Perform Sensitivity Analysis
Some of the input variables influence the results
more than others. The price of electricity is
proportional: doubling price doubles loss costs. Transformer
life is less than proportional: due to the effect of discounting
on future cash flows, doubling expected life from 25 to 50
years increases loss cost estimates by 33 percent.
Reducing the peak responsibility factor by 12 percent
reduces load loss costs by 23 percent. No-load loss costs
are unchanged, so the peak responsibility factor affects total
loss costs much less for transformers supplying residential
customers.

FINANCIAL IMPLICATIONS
Utilities consider many factors when buying transformers. If
minimum total ownership cost was the only decision criterion,
the resulting emphasis on energy efficiency might well have
significant design cost impacts for manufacturers and pricing
implications for utilities. However, although each utility needs
to assess these implications with all due diligence, recent
experience indicates that efficiency is a paying proposition.
For instance, after the Utilities Standards Forum released
the group’s findings, several utilities applied our formula. The
higher no-load loss cost figure seemed to push many toward
amorphous core steel, which is a little more pricey but a lot
more efficient than grain-oriented silicon steel. Amorphous
core 50 and 100 kVA minipads are priced $50 to $300 higher
than non-amorphous designs, but have total ownership costs
of $1,800 to $2,700 lower. In these cases, the economics
of the more energy-efficient transformers appear extremely
compelling, despite their higher prices.

FREE Subscription: www.electricity-today.com APRIL/MAY 2015 | 61

 Nonetheless, utilities must manage the budgetary impact
of the move to higher efficiency. Strategies for minimizing the
downside risks of this shift include: (1) picking the appropriate
weighting factors for each decision criterion, (2) phasing-in the
updated loss cost estimates over time, and (3) assessing the
effects of these changes on the entire supply chain.
ECOLOGICAL IMPLICATIONS
The updated estimates may lead utilities with fossil-fuelled
generation to buy transformers with lower greenhouse
gas emissions. During off-peak hours, amorphous core
transformers may operate at a cooler temperature than older
designs, slowing insulation aging and, over time, improving
system reliability. Overnight reliability will become increasingly
important as electric vehicle chargers proliferate.
REGULATORY CONSIDERATIONS
Co-author Kip Viscusi’s book, “Economics of Regulation and
Antitrust, 4th Edition”, sums up the benefits of regulation in
a dozen words: “to reduce deadweight losses in efficiency
that would exist under unregulated monopoly”. This goal, to
ensure the output of an economy is produced at the lowest
cost, is also mandated by the Ontario Electricity Act: “to
promote economic efficiency and sustainability in the…
distribution…of electricity”. Moreover, the Ontario Green
Energy Act requires public agencies to consider energy
efficiency as well as economic efficiency when acquiring
products and services. A utility cannot possibly meet these
twin objectives of economic efficiency and energy efficiency if
it buys transformers based on sticker price alone.
“ As demand for power
grows, so must efficiency.
62 | APRIL/MAY 2015
LAST LOOK
Regulatory considerations aside, no sector
of society can thrive unless it is economically
healthy. In 2001, Industry Canada economist
David Swimmer analyzed the then-current
state of Canadian infrastructure, noting not
only the relative under-investment in the
electric power sector, but also its low capital
productivity—the lowest, in fact, of the
eighteen sectors he studied.
Swimmer concluded: “These misallocations
of infrastructure capital may have contributed
to the overall slowdown in the 1980s and 1990s
of both labor and total factor productivity and
to Canada’s infrastructure rankings”, which
he described as “poor” compared with other
developed nations.
His remedy: “invest where the productivity,
benefits, or returns, in terms of profit or in terms
of the public good, are highest”.
If a minimum-total ownership cost approach
to buying transformers can improve a utility’s
technical and economic efficiencies, and reduce
its environmental footprint, it looks like an easy
sell. However, for customers, shareowners and
society to enjoy all the benefits, utilities need to
get the numbers right. ET
“
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 Editorial Contributors

JESSE BERST, Smart Cities Council

Jesse Berst is the founder and Chairman of the Smart Cities Council, a coalition of utilities and
technology companies that seeks to accelerate the move to smart cities with better livability,
workability, and sustainability. Jesse came to the smart city sector from the Smart Grid where
he was the chief analyst of SmartGridNews.com, one of the Internet’s oldest, largest, and
highest-ranked Smart Grid sites.
Tracking the Smart City Trend: How utilities can profit from forthcoming changes
and technologies CLICK HERE

LORI GALLAUGHER, Utilities Standards Forum

Lori Gallaugher is the Executive Director of Utilities Standards Forum (USF). Owned by
49 of Ontario’s electricity distributors, USF develops and maintains a shared set of design
standards that meet the requirements of Ontario Regulation 22/04 and promote electri-
cal distribution system safety. Lori holds a Co-operative Management Certificate from the
Schulich School of Business, an Executive MBA from Queen’s School of Business, a Busi-
ness Administration Diploma from Wilfrid Laurier University, and a Chemical Technologist
Diploma from Seneca College.
Counting the Costs: Crunching the numbers for losses of distribution transformers CLICK HERE

JOE CROZIER, PowerStream

Joe Crozier is Standards Engineer at PowerStream. PowerStream is a community-owned energy
company providing power and related services to more than 370,000 customers residing or
owning a business in communities located north of Toronto and in Central Ontario. Joe worked
previously with Ontario Hydro as a Protection & Control Engineer and Distribution Lines Pro-
gram Supervisor as well as a Lines Maintenance Project Manager at BC Hydro. Areas of special-
ization include benefit-cost analysis of utility projects and programs, economic optimization of
distribution reliability improvement work, and project management. Joe is a Licensed Profes-
sional Engineer in Ontario.
Counting the Costs: Crunching the numbers for losses of distribution transformers CLICK HERE

This issue’s contributors

Scott Ball, Motion Computing
Jesse Berst, Smart Cities Council
Joe Caywood, Terex Utilities
Joe Crozier, Powerstream
John Finnigan, Environmental Defense Fund
Lori Gallaugher, Utilities Standards Forum
Todd Goldmeyer, Adrian Steel Company
Todd Haycock, Transcentra
Doug Houseman, IEEE, Enernex Corporation
Babak Jamali, METSCO Energy Solutions
Mark Lauby, North American Electric Reliability Corporation
Byron Ma, METSCO Energy Solutions
Frank Mcelvain, Siemens PTI
Alex Mogilevsky, CEATI International
Shawn Otal, METSCO Energy Solutions
Tim Wallaert, Belden

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THE
LAST
PAGE
Toronto Hydro’s Drew Carley, removes old and
damaged underground cable. Residents in this
neighbourhood, located in Scarborough, Ontario have
suffered from numerous outages in the past year and
while repairs have been made, the cable now needs to
be replaced altogether. Approximately 40 percent of
outages are caused by equipment past its life span.

Photo credit: Toronto Hydro