Home Area Network Workshop

1. Home Area Network Workshop Erich W. Gunther, P.E. Chairman and CTO EnerNex Corporation erich@enernex.com Chairman UtilityAMI, OpenHAN, CA Title 24 PCT Reference Design Task Force

2. Agenda • Introductions • Context Setting • EPRI Consumer Portal Project Overview • California Influence • Reference Design for AMI and DRI • Demand Response –Title 24 PCT • Industry Response • OpenAMI Overview • UtilityAMI Overview • Questions and Discussion • Break • OpenHAN – What have we been up to? • Security – Examples, Issues, Opportunities • Questions and Discussion • Adjourn - Lunch

3. EPRI Consumer Portal Overview • Questions before proceeding?

4. Consumer Portal FAQ • What is a Consumer Portal? • Why are we talking about portals? • How would a portal be used? • What could portals do? • Which functions of a portal are most important? • How could portals make money? • What could a portal look like? • What do YOU think?

5. What is a Consumer Portal? “A combination of hardware and software that enables two-way communication between energy service organizations and equipment within the consumers’ premises.”

6. What is a Consumer Portal?More Possible Definitions • A “router” that just forwards messages • A “gateway” that translates technologies • A “single point of access”: • Frommultiple organizations • To a variety of customer premises equipment • A “virtual device” that may be located in: • A meter • A thermostat • A PC • A set-top box • All or none of the above • A “window” into the customer site

7. Why are we talking about portals? • Frustration • Too many failed attempts • Proprietary systems • Unable to deploy on large enough scale • Regulation • California, Ontario, New York, etc. • Trying to “level the playing field” • Reduce barriers for vendors • Make costs common to all • Ensure common service for consumers • Evolution • Recent events putting pressure on the grid • Must find a way to adapt

8. Why are we talking about portals?The Power System is Under Pressure! • Reliability • 2003 Northeast Blackout • The grid is “brittle” • Security • Terrorist attacks • The grid is vulnerable • Markets • Deregulation, opening of energy markets • Unprecedented sharing of data • Consumer Demands • Distributed generation, green energy, need for hi-quality power • Consumers are demanding a say in the operation of the grid

9. Why are we talking about portals?Portals Lead to an Intelligent Power Grid • The IntelliGrid Consortium: • A group of Utilities, vendors, researchers and governments • Goal is a grid communications system for a “digital society” • Has developed an architecture: www.epri-intelligrid.com • Intended to address the pressures discussed here • A grid that automatically predicts failures, heals, optimizes, and interacts with customers • Where does a consumer portal fit in? • High volumes of timely, accurate information • Gathered from millions of customer sites • Enables more responsive simulation, modeling, optimization, prediction, and markets

10. How could a portal be used? A scenario. • A “heat storm” is due tomorrow • Energy service provider notifies consumers that a “super peak” tariff is coming • Consumer previously told the portal how to react • Some consumers permitted to bid into the load reduction market

11. How could a portal be used?The Response • Portal adjusts load when the new rate hits: • Increases thermostat setting • Turns off water heater • User could have provided input: • Viewed the tariff change • Adjusted settings • Viewed $$ savings • But not necessary! • Portal reacts anyway.

12. How could a portal be used?An Emergency • Tree contact causes transmission line fault • Transmission lines overloaded • ISO issues load reduction request to portals • Each portal cuts back load drastically • Distribution operator queries all portals in the area • Extent of the outage becomes clearly visible • Operator acts quickly to partially restore power

13. What could portals do? A portal could have many clients: • Residential and commercial consumers • Energy service providers • Independent system operators • Distribution companies • Other utilities • Non-utility organizations • Others Each of these clients could use it differently.

14. What could portals do?Advanced Metering and Demand Response

15. What could portals do?Residential Customer Services

16. Integrate with local Energy Management System Optimize energy use Compute energy efficiency Control distributed generation Coordinate load profiles between buildings Submit bids to energy markets What could portals do?Advanced Customer Services

17. What could portals do?Customer Management • Remotely connect or disconnect customers • Detect tampering • Detect theft of energy • Limit maximum load in response to billing irregularity

18. Provide large volumes of accurate data for marketing, simulation, modeling, and predictive maintenance Aggregate data from multiple types of utilities Stagger load pickup in “black start” emergencies What could portals do?Widespread Distribution of Data

19. Detect and isolate outages more quickly Shed load with finer control Use demand response customers as a “fast reserve” Monitor and optimize power quality more accurately Monitor and control distributed generation Minimize system losses What could portals do?Advanced Distribution Operations

20. What could portals do?Non-Energy Applications Also: • Weather forecasting • Flooding and freezing alerts • Air quality • Optimize building heating and lighting

21. Which portal functions are most important? • Feedback from IntelliGrid Consortium members

22. Benefits: Increased system efficiency, stability, and power quality Cumulative savings from demand response Avoided costs of incremental capital investment Recovered costs: Theft detection Fewer outages New income: New value-added services Participation in markets with better data Barriers: Cost of equipment Portal itself (unless embedded in other devices) Peripherals, e.g. meters, thermostats, EMSs Cost of deploying networks To the consumer site Within the consumer site Cost of operation Signing up customers Technical support Billing infrastructure How Could Portals Make Money?

23. How could portals make money?EPRI Study - 2004 • 5-20 year assessment of California market • 15% discount rate assumed • $15B benefit to society AFTER investors have earned 15%!

24. How could portals make money?Lessons Learned – from dozens of past attempts • The technology exists. • No breakthroughs are necessary • Make it simple. • Customer must be able to not participate • Standardize. • Don’t try to “lock in” customers to proprietary systems • Achieve economies of scale and reduce costs • Share the infrastructure. • Use portal-like services from other industries • Build an architecture. • Integrate the portal with the whole energy system • Don’t create “islands of automation” • Don’t strand assets. • Make it easy and inexpensive to upgrade • The best applications may be yet to come • Share the benefits. • Distribute the “societal benefits” to everyone

25. What could a portal look like? • A consumer portal is an idea, not a particular device! • IntelliGrid is developing a reference design • A standard “virtual appearance” for a portal • A clearly defined set of interfaces • May be incorporated into a variety of devices • May be distributed among several devices • The physical device(s) may vary, but the virtual device must be standardized to ensure • Interoperability between vendors • Reduction in cost due to economies of scale • Some vendors already provide portal-like devices, but they are not standardand notinteroperable.

26. What could a portal look like?Some Options: Portal in a meter Portal in a set-top box Portal in a stand-alone device or PC Portal in a local energy management system

27. What could a portal look like?Possible User Interfaces • A web page • Through Internet or directly • A television interface • Similar to web interface • Through a set-top box • A simple control panel • Colors to indicate tariffs • Buttons to control responses • A single light • To indicate emergency curtailment • To indicate level of rates applied • ...or others

28. Every portal would have the SAME: Minimum data model Security scheme Upgrade mechanism Tariffs Configuration Applications The following things could be DIFFERENT: Innovative additions to the minimum data model In-building communications technology Wide-area network technology User Interface What could a portal look like?Characteristics 

29. What do YOU think? • These have been some of the common ideas about portals • Many people have different viewpoints • Discussion: What do YOU think?

30. California Influence • AMI / DR Reference Design • CEC PIER Title 24 Reference Design • Questions before proceeding

31. Background • The electricity crisis of 2000/2001 had many contributing factors • Market power (Enron, et al) • Aging fossil fuel plants (pollution) • Flaws in deregulation (AB 1890) • Disconnect between wholesale and retail prices • However, most agree that one mitigating factor was missing DEMAND RESPONSE

32. CECPolicy& Programs • Under the leadership of Commissioner Rosenfeld, the CEC along with the CPUC, CPA, and the State’s 3 major IOU’s embarked upon a path to encourage DR through “price-responsive” load • In support of this CEC policy and program, PIER initiated a DR Program to perform related R&D • Consultant Report: “A Strawman Reference Design for Demand Response Information Exchange” - http://ciee.ucop.edu/dretd/

33. Reference Design Project Genesis • Implementing DR policy requires implementing a demand responsive infrastructure • Stakeholders had widely varying views as to how such an infrastructure could be deployed • Most if not all of those views were incompatible with each other, were not based on standards, were not scaleable, and would have likely resulted in more stranded assets in the long run • The concept of a reference design as used in other industries came to mind as a way of mitigating this problem

34. Back of the Napkin Concept

35. Characteristics of Infrastructure • Shareability - Common resources offer economies of scale, minimize duplicative efforts, and if appropriately organized encourage the introduction of competing innovative solutions. • Ubiquity - All potential users can readily take advantage of the infrastructure and what it provides. • Integrity - The infrastructure operates at such a high level of manageability and reliability that it is often noticeable only when it ceases to function effectively. • Ease of use - There are logical and consistent (preferably intuitive) rules and procedures for the infrastructure's use.

36. Characteristics of Infrastructure • Cost effectiveness - The value provided must be consistent with cost or the infrastructure simply will not be built or sustained. • Standards - The basic elements of the infrastructure and the ways in which they interrelate are clearly defined and stable over time. • Openness - The public infrastructure is available to all people on a nondiscriminatory basis. • Secure - The infrastructure must be protected against unauthorized access, interference from normal operation, and facilitate implementing information privacy policy

37. Demand Response Infrastructure: Principles and Goals • The DRI must provide a set of interfaces, transactions and services to support current and envisioned demand response functions. • The DRI must serve all constituents. • The DRI must promote the principles of free enterprise. • The DRI must protect the rights of users and stakeholders. • The DRI must promote interoperability and open standards.

38. Purpose of the DR Reference Design • To establish a common starting point for implementing open information exchange for a DR infrastructure whose characteristics include: • Scalability • Interoperability • Facilitating Innovation (cheaper, better, faster) • Maintaining Compatibility (existing and proprietary systems) • Guarantees regulatory bodies the ability to develop tariffs, programs and other currently unknown initiatives • To protect the integrity of California’s power delivery system

39. Example:Emergency Load Curtailment • Present Day • The ISO has no idea of how much ELC is available, how will or did the system respond, nor is it enough to stabilize the system • ISO issues command in different ways to different IOU’s • Each IOU sends ELC signal to their subscribed loads using different methods with varying latencies and feedback • Future • Available ELC providers known to ISO through a common information system including stats on available ELC and expected response magnitude and delay • ISO broadcasts ELC signal using a single, standard method to all IOU’s, ESP’s, LSE’s, and other providers • Each provider relays ELC signal using standard interface to all subscribers • Subscriber response is confirmed, logged, and reliability statistics are updated and made available immediately to the ISO • Regulators are able to audit program effectiveness, system capacity and actual performance

40. Strawman Reference Design • Zones of information exchange • Inside is a domain of open systems information exchange • Outside is a domain of existing and proprietary devices and systems • Between the two exists a defined set of interfaces • The reference design is the set of implementing standards and technologies

41. Reference Design Components • Actors - the entities that need to exchange information (e.g., CAISO, LSE’s, and UDC’s) • Applications - the functions that need to be performed by the actors • Protocol - the underlying communication methods used to move bits and bytes • Language - a common language to facilitate information exchange • Objects - high-level definitions of objects that are independent of protocol and language • Translation - services that provide a way to allow information exchange with external systems • Security - overarching methods to ensure confidentiality, integrity, and availability

43. Interfaces and Transactions • DR information exchange infrastructure is typically specified in terms of interfaces and transactions. • Interfaces constitute points of connection or interaction among system components. They often refer to places where entities may offer services or link systems; they also may refer to the links at boundaries of layers of various functions. • Transactions specify sets of rules and formats that determine the communication behavior between entities • Any new system capability will have to connect via an existing or standard interface, even if some of the properties are tailored to the specific nature of the service. • It is essential that the system's key interfaces and transaction models be open to future evolution and development. • It is important to specify both the underlying services and the information objects exchanged across the infrastructure.

44. Review – The Premise • Demand Response (DR) will become a major resource to deal with California’s future electricity problems • An advanced metering infrastructure will be deployed on a large scale throughout the state • Price signals will be used to induce load response when contingencies and market imbalances exist • Technology will act as a proxy for end users (e.g. respond to signals and take action)

45. Implications • If the premise is true, then • Information exchange will be required between several organizations and systems • Numerous applications that create and consume information will exist

46. Conclusion For there to be seamless exchange of information in ways that we can’t fully define today, there has to be a common reference design for California’s demand response infrastructure

47. Questions ???

48. California PCT • CEC Title 24 Building Standards • Current code mandates PT’s • 2008 revision mandates PCT’s • Specifies minimum requirements • Points of Interoperability • Communications Interface • HVAC Interface • Human Interface • Expansion Interface • California WAN -1 Way • RDS • Paging

49. Reasons for PCT Interface Specs • One PCT for all of CA (US) • Retail purchased at Home Depot, etc. • Consumer owned, installed, maintained • Common signaling throughout CA (US) • Works with any minimum AMI system • Signals synched with AMI resolution • Compatible with legacy technologies • Preserve richness of thermostat options

50. Title 24 Code Language • (i) Thermostats – All heating and/or cooling systems shall have a Programmable Communicating Thermostat (PCT) that meets the requirements of Subsections 150(i)(1) and 150(i)(2) below: • (1) Setback Capabilities - All PCTs shall have a clock mechanism that allows the building occupant to program the temperature set points for at least four periods within 24 hours. Setback thermostats for heat pumps shall meet the requirements of Section 112(b). • (2) Communicating Capabilities – All PCTs shall be distributed with a non-removable communications device that is compatible with the default statewide DR communications system (to be determined), which can be used by utilities to send price and emergency signals. PCTs shall be capable of receiving and responding to the signals indicating price and emergency events as follows.