Smart Grid: an Ontario Perspective

1. Smart Grid: an Ontario Perspective Brian Hewson, Senior Manager Regulatory Policy Hamilton May 8, 2013

2. Overview • Role of the Ontario Energy Board • What is smart grid – a very quick picture • What are the smart grid issues? • The policy context for smart grid • What’s happening in Ontario?

3. Role of the Ontario Energy Board • OEB regulates (licence and set rates) 77 distributors of varying size and 5 transmitters, OPA and IESO (including SME) • Licences generators, wholesalers, sub-metering and retailers • Establishes rules for network businesses conduct with customers and with other market players • Review and approval of major transmission facilities • Review of market rules, reliability standards • Sets CDM targets and establishes compliance with targets • Five objectives guide the Board in electricity sector regulation: • protecting the interests of consumers • Maintaining financial viability and economic efficiency • promotion of renewable energy generation and CDM, facilitate development and implementation of smart grid

4. What is a smart grid? • Telecom Network • Phone • Internet • Smart Meter communication infrastructure Intelligence/Communications Layer Diagram source: EPRI • Conventional grid interoperates with smart grid intelligence through enhanced devices: • - Smart meters • - Switches • - Transformers Smart Grid Status / Control Status / Control Status / Control Conventional Grid Diagram source: EPRI 4

5. What is smart grid?

6. What are the key smart grid issues and challenges? • Data access and analytics • Cyber security • Privacy • Customer value and Cost • Interoperability/compatibility

7. So how are the issues being addressed? • Interoperability • Standards development • NIST, IEC, Standards Council of Canada • Transmission and distribution - coordination • Behind the meter – more challenge • Cyber-security • Standards – NERC/NIST • Utility focus – protection of grid???

8. So how are the issues being addressed? • Integration of new technology • Pilots and demonstration programs: EVs, storage, sensors, self-healing • Renewable energy –solar, wind, fuel cells • Data access – privacy, security • Data management - analytics

9. The Ontario policy context for addressing these issues • Green Energy Act 2009 – smart grid objective • Minister’s Directive on smart grid • 3 areas of focus: customer control, system operations and adaptive infrastructure • 10 policy objectives • OEB Renewed Regulatory Framework • Smart Grid Report • Review of plans for demonstrations and smart grid related to connection of generation

10. Renewed Regulatory Framework Objectives • Shift  focus from utility cost  to value for customers • Better align utility reliability and quality of service levels with customer expectations • Institutionalize continuous improvement and innovation • Provide for a comprehensive approach to network investments to achieve optimum results • Better align timing and pattern of expenditures with cost recovery • Provide a sustainable, predictable, efficient and effective regulatory framework

11. Defined Outcomes • Customer Focus • services are provided in a manner that responds to identified needs customer preferences • Operational Effectiveness • Continuous improvement in productivity and cost performance is achieved; and utilities deliver on system reliability and quality objectives • Public Policy Responsiveness • Utilities deliver on obligations mandated by government (e.g. in legislation and in regulatory requirements imposed further to Ministerial directives to the Board) • Financial Performance • Financial viability is maintained; and savings from operational effectiveness are sustainable

12. Smart Grid Development & Implementation • Smart grid is a modernization of the grid • Meter is demarcation point for utility smart grid activities • Allow opportunity for all players, creativity and innovation • Board Report recognizes need for innovation, develop appropriate incentives for utilities • Provides direction on developing a clear set of expectations for utilities in planning for smart grid

13. Smart Grid Report • Direction to network businesses • Develop plans which must address smart grid policy: • Customer engagement • Data access • Automation of networks to provide flexibility • Integration of technology - storage • Assessment of new innovative technology • Plans to consider 10 policy objectives • Principle concern for value, reliability, consumer

14. What’s happening now in Ontario? • Hydro One Networks • Owen Sound ‘smart zone’ to demo a number of technologies for system and customer • Sensor deployment • Renewable integration – automated switching • Toronto Hydro • North York ‘smart pilots’ • Community storage • Automation to support renewables

15. What’s happening now in Ontario? • Powerstream • EV demonstration • Micro-grid • Grid automation/sensing • 20 or so utilities working together on data security assessments, analysis • System Operator developing alternative technologies to manage the provincial grid • Storage, demand control • Peak management – DR automation

16. What’s next? • Utilities developing plans based on policy direction • Standards development • SCC work • Data access • Green Button Smart grid is an evolution not a revolution.

17. Thank You ??????? Go to: www.ontarioenergyboard.ca