Matt Smith – Director, Technology Development and Utility of the Future Project Creating the Utility of the Future.

Matt Smith – Director,Technology Development and Utility of the Future Project

 Creating the Utility of the Future

Who is Duke Energy?

Fortune 500 Assets over $48 billion 3.9 million customers Top-tier electric utility Top 5 for U.S. generating

capacity 150+ years of service Traded on NYSE as DUK Stock dividends for 80+

years

• 5 states: North Carolina, South Carolina, Indiana, Ohio and Kentucky

• 47,000 square miles of service area

• ~28,000 MW

• 3.8 million retail electric customers

• 500,000 retail gas customers

US Franchised Electric & Gas

Latin American Assets

Sao Paulo

Buenos Aires

Lima

Guatemala City

Mexico City

• 4,000+ MW

• 6 countries: Brazil, Argentina, Peru, Ecuador, El Salvador and Guatemala

Regional Office

Operating Asset

Vision and Strategy Statement for the Utility of the Future Team

Vision Statement for the Utility of the Future Project Our vision is to transform the operation of our electric power grid

by creating a networked infrastructure capable of delivering and receiving information from intelligent devices distributed across our power system, automating components of the distribution system and leveraging the network for improved operational efficiencies and improved customer satisfaction.

Strategy Statement for the Utility of the Future Project Our strategy is to investigate, select and deploy intelligent devices

across our distribution system which will measure, protect and automate the grid, combined with a communication system linking the intelligent devices in a networked fashion, creating opportunities for system wide load response, enhanced outage management, better asset management, more efficient operations, and empowering customers to use electricity more efficiently.

Distribution Substation Step-down Transformer

Customer Step-down Transformer

Load

Distribution Lines 4,160, 12,500, 24,000 Volts

Metering and Sensing Devices Metering and sensing devices will deliver information along a digital communication infrastructure.

Data Collection and TransmissionNodes along the distribution lines will collect data about the system and communicate to the operations center in real time across a digital communication infrastructure

Digital Communication Infrastructure

The communication system will provide a mechanism for transmitting data, controlling and automating multiple devices along the distribution path, including applications behind the meter

Innovations at the TransformerThe transformer will support various endpoint measurement an control,

including potential metering advances.

Creating a Digital Grid

• Digital components are easier to scale as the system grows

• Programmability of digital devices is easier

– Ability to build intelligence into end devices

• Advances in digital technology can be adopted from other industries

• Richness and volume of data available using a digital system is superior to analog

• Digital controls enables near real-time operational decision making

• Automated meter reading at more frequent intervals

• Workforce and work order management is enhanced

• Remote connect and disconnect capability

• More accurate meter reading and billing

• Outage management improvements

• Power quality monitoring

• Asset management

Operations Benefits

The Benefits of the Digital Grid - Operations

• Digital applications are widely supported across industries

• Data communication is easier and faster using digital technology

• Graphical user interface for the utility and utility customers becomes a reality

• A variety of technology solutions, such as wireless, BPL, Wi-max, etc., are available using digital communications

Communications Benefits• Broadens the scope of customers

eligible for demand response programs

• Asset optimization through real time information flow

• Better load forecasting and load study data at more frequent intervals

• Enables real time rate structures

• Load control capability

• Firmware upgrades reducing the potential hardware obsolescence

The Benefits of the Digital Grid – Communication

Revolutionary vs. Evolutionary Changes

One way information flow

Invites tampering

Incremental changes to the meter dictated by existing back office

processes

Metering Today

Electromechanical in a digital age

Networked Communication

Business process dictates meter technology

Bi-directional Information flow from the meter

Meter can be the gateway to home automation

Interface with the utility becomes dynamic creating real time information capabilities

Enables additional utility services

No power data nor control

The meter is another sensor in a wide array of interactive sensors on the network

Connecting the Network

• Higher bandwidth

• Increasing number of communications nodes

• Distributed generation control

• Multiple backhaul paths

• Device interoperability

• Open communications protocols

• Utility price signals to smart appliances

• Meter as a premise “portal”

• Remote connect/disconnect

• Upgradeable firmware

CommunicationsServers

CommunicationsServers

CommunicationsServers

Meter

Utility Back Office

Utility Substation

Customer Premise

Remote Access

Trends in Network Communication

Integration of Operations and Communications

Selection Criteria and Guiding Principles

• Networking infrastructure project, not just AMI or AMR

• Standards-based hardware and software products

• Operational and business decisions should not be constrained by infrastructure choices

• Guiding principles include:

– Ability to choose products and services from best in class companies

– Communication network can carry information from any device

– Standard connections with minimal integration efforts

– Ability to remotely upgrade and adapt devices

Key Concepts Leading to theUtility of the Future

Utility Head End System

Proprietary network does not “exclude” other utility assets

WAN selection is not dependent on meter technology

Communication to the home can go through or around the meter

Open, IP based standards “invites” innovation from outside the utility industry Multiple

devices can use the WAN

Utility of the Future – A Networked Power System

Smart Grid

Enhanced Functions

Capacity Planning

Capital Investment

Generation Work

Management Customer contracts

AMR & Billing

Distribution Trends

Distribution Automation

Reads

QueriesInstallation & Services

Quality

Roll Out

Customer Information

Supply ChainImprovements

RevenueEnhancement

OperationalFlexibility

DemandForecasting

CorporateStrategyAsset

Management

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NES Architecture & Components

Net

wor

ked

Ener

gy

Serv

ices

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Extending Into the Home

Power lines are the ideal connection into the home– More reliable and economical than RF – ANSI 709 open standard – 1,000+ LonMark Certified products – Secure authenticated and encrypted data exchange

PLC in Meter reaches every home outlet and switch PLC is not blocked by or interfered with existing 2.4GHz home networks PLC is not subject to RF multi-path fading in fixed point communication PLC can be used to bridge to home gateway and RF devices inside the home The NES network provides a low-cost, universal, bi-directional communications

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Fundamental Design PrinciplesLeverage the power of networks

Data networks share expensive resources to reduce cost per connected point– Networked printers, networked servers, shared broadband

connection, …

Advanced metering networks should too– Spread cost of “expensive” components (e.g., modems, backhaul

connection) across many meters and devices

The NES system is not a “PLC” system

The NES system is not an “RF” system

The NES system is an IP networked system– Leverages the strengths of each to lower deployment cost, lower

operating costs, and lower life-cycle costs

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Fundamental Design PrinciplesUse best-of-breed standards

Each element of the system uses standards optimized & proven for that application domainMeters built on proven metering standards

ANSI C12.18, ANSI C12.19Networks built on proven networking standards

ANSI 709, TCP/IP IT interfaces built on proven enterprise standards

XML/SOAP (Web services)

Leads to highest quality & security Drives down cost of network connectivity, IT

integration– The largest contributors to total cost of ownership for an

advanced metering system

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Fundamental Design Principles“Never visit the meter again”

High level of “base” functionality built into every meter Enable/configure functionality remotely instead of

replacing products– Built-in, firmware controlled disconnect in every meter– Hourly metering and multi tariff in every meter– Prepay support in every meter– Power quality in every meter– Multi-channel data logger/load profiling in every meter– …

Remote upgrade rather than replacing products– All components support remote firmware upgrade

Long-lived, reliable products– Designed for >20 year life with <0.3% annual failure rate

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NES MetersMarket-leading advanced functionality

Detailed electrical measurements– Active and reactive energy– Import and export metering– Flexible time of use metering

Extended information & alarms– Multi-channel data recorder– Power quality data and alarms– Tamper and theft detection– Connectivity to other meters and devices

200A disconnect under glass– On/off– Load limiting/service upgrade to any level– Prepay

“Virtual IP” card in every meter– Share a single physical IP connection– Communicate to in-home devices

Remote firmware download support Designed for >20 year life with <0.3% annual

failure rate Traditional, compact form-factor

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NES network operating system – Enables choice of off-the-shelf

applications– Supports quick development of

custom applications and integrations

Scalable to millions of devices

Redundant architecture Backward-compatible Standards-based SOA

NES System SoftwareWeb services interface based network operating system

Utility Software

Web services Web events

IP WAN

NES System Software

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NES is the Platform for Smart Grid

NES Smart Meter

with IP

Open Web Services API Network Operating System

PLC A Band for Utility

Distribution Automation Networks

MeterExpansion

Port

TCPIP WANor LAN

NES Smart Meters

LONMARK® i/f+ RF

NES System ServersDatabase

Data CollectionConfiguration

Security Home Automation Networks

Building Automation Networks

IP HAN Gateway

Open HAN RF