Houston's Smart Grid: Transforming the Future of Electric Distribution & Energy Consumption

PUCT StaffSeptember 19, 2011

Current Status

Advanced Metering System 1.6 million smart meters deployed

Smart Meter Texas portal deployed

Meter accuracy was validated by PUCT/Navigant Consulting

Benefits achieved 1.5 million meters being read for billing electronically

1.4 million service orders completed electronically

Average electronic service order execution time is 30 minutes

1,500 HAN devices deployed and functioning

About 150 direct and 400 indirect jobs have been created/retained as of Q2 2011

Project is on Schedule $200M DOE grant accelerated project completion from 2014 to 2012

2.2 million meters will be deployed by mid-2012

2

How are we doing?

● Deployment of Smart Meters is on schedule (73 percent complete)

● Design of Advanced Distribution Management System is underway

● Installation of Intelligent Grid infrastructure is underway with work in

six substations and installation of 186 switching devices complete

● Invoiced $190M and received $190M in reimbursement from our

$200M Department Of Energy Smart Grid Investment Grant

● Recognized globally as a leader in smart metering3

$200M DOE Stimulus Grant

DOE Grant Awarded – December 24, 2009

Advanced Metering System (AMS)

Accelerate installation of 2.2 million AMS meters from 2014 to 2012

Moved from 44,000 meters/month to 80,000 meters/month

Moved from 120 cell relays/month to 200 cell relays/month

Impact of DOE grant was incorporated into our surcharge reconciliation,

reducing the cost of AMS to end-use consumers

Intelligent Grid (IG)

Automate 226 distribution circuits and 29 distribution substations

Install software systems to monitor and control the smart grid

Establish bi-directional communication network to support IG, by leveraging

the AMS communications system

4

• Our Energy InSight Center has hosted nearly 700 tours with local, state,

national, and international guests

Delegations from many countries (France, Germany, Brazil, Canada,

Russia, South Africa, UK) visited our facilities in the past year

Three FERC commissioners made site visits

Representatives of the Department of Energy spent three days on site

We participated in a US delegation to Russia on behalf of US Energy

Association

• A successful audit by the Inspector General of the Department of Energy was

conducted in December

• A media celebration was held in February commemorating the 1,000,000th

meter installed, with widespread coverage by media channels

• A press conference with DOE Deputy Secretary Poneman was held in July to

announce consumer adoption of HAN devices with widespread coverage by

media channels

Global Recognition

5

Components of our Advanced Metering System (AMS)

Combined with back office computer systems and integration, our AMS provides:

Daily register reads

Daily 15 minute interval reads

Remote connect / disconnect / on-demand reads

Access to data via Smart Meter Texas portal6

Data Collection

Engine

(Itron DCE 3.0

SP1)

Digital

Communications

Backhaul

Meter Data

Management

System

(eMeter MDM 6.2)

Legacy

Systems

Wireless Communications

Environment

(GE WiMax with GSM

Backup)Smart Meter

Texas PortalExisting

Recently

Deployed

Legend

Itron Open Way

HW 2.0 SR 3.0

Some Components of our

Intelligent Grid (IG)

Combined with back office computer systems, our IG technology, when fully

deployed, will automatically identify the location of power outages, isolate faulted

sections of the main feeder portion of the network and re-route power from other

sources, essentially “healing” the system.7

Consumer benefits of smart meters

Available NOW

Remote meter reading

Faster, automated move-in/out, switching

Pre-paid service, time-of-use rates

15-minute usage data to promote

energy conservation

Easier integration of distributed generation and renewables

Available SOON

Automatic outage notification

Available in the FUTURE

Energy analysis and cost comparison tools

Support for plug-in hybrid electric vehicles

Consumer remote control of thermostats and appliances (HAN)

Energy management systems

Ability to participate in Demand Response programs

71 percent of participants in CNP’s

In-Home Display pilot program

indicated that they have…”changed

their electric consumption behavior…”

as a result of the information available.

Consumer benefits of intelligent grid

Initial Benefits

More precise identification of outage

locations, resulting in faster

restoration of electric service

Reduction in time required to perform

circuit switching to isolate fault

Long-term Benefits

Improved reliability and faster

restoration, especially during major

weather events

Enhanced and improved customer

communications and notifications

The Customer Benefits in a

More Robust Electricity Market

Educate

consumers about

electricity usage

Help consumers

save money on

utility bills

Facilitate

Distributed

Generation and

Renewables

Encourage

demand

response

Improve

reliabilityEnhance customer

service 10

The following initiatives involve direct customer engagement:

• 2011

Residential Energy Feedback R&D Project - Approx. 800 IHDs

In-Home Display REP Pilot Program - Approx 1,500 IHDs

“Smart Partners” R&D Project

– Residential Direct Load Control Demand Response – (39 thermostats, 104 Switches)

– Residential/Small Commercial Standby Generator Demand Response – (3 Homes)

• 2012

Energy Efficiency Ambassador Program: Community-based outreach to

educate customers on energy conservation, smart meters and PEVs

Retail Electric Provider (REP) Pilot Program - $3.5 MM¹ set aside

program for the REPs: structured as a cafeteria plan to pick participation

Energy Efficiency (EE)Customer Engagement Programs

In-Home Displays (IHDs) Time-of-Use Rates (TOUs)

Direct Load Control A/C Tune Ups

Load Management (1) 2012 Budget could include 25K IHDs or 18K DLC/LM or

70K Tune Ups depending on participation from REPs11

What’s Next?Smart Meters Are Just The Beginning

Price control / load control

Micro Grids

Storage

Advanced Self-Healing Grid

Aggregated Demand Management

Electric vehicles

2010 20202014201320122011

HAN Devices Smart Appliances

Smart Meters

Intelligent Grid

Phase 1:

Customer

Insight

Phase 2:

Customer

Engagement

Phase 3:

Customer

Co-Creator

of Value

Intelligent Load Shed

12

Per the DOE Grant Agreement,:

“If you publish or otherwise make publicly available the results of the work conducted under

the award, an acknowledgment of Federal Support and a disclaimer must appear in the

publication of any material, whether copyrighted or not, based on or developed under this

project, as follows:”

Acknowledgment: “This material is based upon work supported by the Department of Energy

under Award Number [DE-OE0000210]”

Disclaimer: “This report was prepared as an account of work sponsored by an agency of the

United States Government. Neither the United States Government nor any agency thereof,

nor any of their employees, makes any warranty, express or implied, or assumes any legal

liability or responsibility for the accuracy, completeness, or usefulness of any information,

apparatus, product, or process disclosed, or represents that its use would not infringe

privately owned rights. Referenced herein to any specific commercial product, process, or

service by trade name, trademark, manufacturer, or otherwise does not necessarily constitute

or imply its endorsement, recommendation, or favoring by the United States Government or

any agency thereof. The views and opinion of authors expressed herein do not necessarily

state or reflect those of the United States Government or any agency thereof.”

DOE Acknowledgement and

Disclaimer

13