De Martini CCIF 030915

© 2015, Newport Consulting Group, LLC
Evolving Distribution System
Helping Consumers Navigate Access to Data, Products & Services
Paul De Martini
March 9, 2015

2© 2015, Newport Consulting Group, LLC
Grid Evolution: One-way Road to Grid of Things
Source: IEEE
Grid increasingly becoming a multi-directional network interconnecting millions of
intelligent consuming devices and flexible DER and back-up generation
Operating such a system requires greater situational visibility and
collaboration with customers and their services providers

Evolution of Customer & Distribution System
3
Stage 3:
Distributed Markets
Multi-party
Transactions
Market
Operations
DER Integrator
& Optimization
Dist. Platform Development
Customer
Onsite Supply
& Reliability
Stage 2:
DER Integration
Smart Grid Investments
Aging Infrastructure Refresh
Cost Mgmt. Services
Information &
Decision Tools
Stage 1:
Grid Modernization
Value
Time
3 Stages of Evolution as DER Adoption Grows & Market Opportunities Expand
Distribution
System
Customer
Engagement

Information Evolution: Grid Planning & Operations
Historical data to dynamic multi-way flows of information
Planning w/DER
 Gross load growth & characteristics
 Load “modifiers”
 EE effects by feeder
 Conservation effects by feeder
 DER/EV/BUG adoption by feeder
Operations w/DER
 Dist. Asset optimization (~15 min)
 Whsle Market optimization (5 min)
 Frequency Control (4 sec)
 Distribution Voltage Control (<4 sec)
 Distribution Protection (30 msec)
Production and net usage are becoming increasingly unpredictable, making
traditional heuristics unreliable - driving need for higher information fidelity

State Regulatory Evolution
5
“Utilities must transform into “market-
makers” who solve problems at the edge of
the system”
Audrey Zibelman, Chair, NY PSC May 2014
Several states have open proceedings or
having preliminary stakeholder dialogs
 New York REV
 California DER/EV related proceedings
 Hawaii Grid Modernization & DER integration
 Arizona Utility DER services & ownership
Focus of Regulation & Advocacy
 Distribution as an enabling network
open access platform & distribution system
operations as market facilitator
 Expanding customer services
opportunities for utilities to facilitate and/or provide
DER, microgrid and other competitive customer
services
 Reforming Regulation
 Performance based ratemaking (extensive metrics)
 Rate case process changes (e.g., future test year,
length)
 NEM/TOU Rate reform

National Discussions
 What are the power systems’ vulnerabilities (e.g., cyber
and physical attacks, extreme weather events)?
 How well can the current TS&D system support
Greenhouse Gas reductions?
 How can an advanced grid and storage facilitate the
incorporation of zero and low carbon generation?
 What improvements can be made in the use of real-time
data, analysis and communications?
 How can improved smart grid interoperability standards
better integrate distributed resources & microgrids into
the operation of the power system?
 What challenges face customer access to alternative
supply and reliability enhancement options?
 What are the business challenges and opportunities
facing the electric industry?
Several National Initiatives Exploring Evolutionary Issues*
* Adapted from DOE QER Presentation

De Martini CCIF 030915

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