Application of San Diego Gas & Electric Company (U902M) for authority to update its gas and electric revenue requirement and base rates effective on January 1, 2012. Application No. 10-12-___ Exhibit No.: (SDG&E-11-CWP) CAPITAL WORKPAPERS TO PREPARED DIRECT TESTIMONY OF THOMAS O. BIALEK, Ph.D., P.E. ON BEHALF OF SAN DIEGO GAS & ELECTRIC COMPANY BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA DECEMBER 2010 TOB-CWP-1
SDG&E has submitted one the of most progressive and well funded energy storage programs in their 2012 General Rate Case to the CPUC. Also included is their electric vehicle program plans.
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Transcript
Application of San Diego Gas & Electric Company (U902M) for authority to update its gas and electric revenue requirement and base rates effective on January 1, 2012.
A summary table of the cash flows for all projects in this workpaper is provided below.
TOB-CWP-27
SDGE Doc #249440
Application of San Diego Gas & Electric Company (U902M) for authority to update its gas and electric revenue requirement and base rates effective on January 1, 2012.
Application 10-12-____ Exhibit No.: (SDG&E-11)
PREPARED DIRECT TESTIMONY OF
THOMAS BIALEK, Ph.D., P.E.
ON BEHALF OF SAN DIEGO GAS & ELECTRIC COMPANY
BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
December 2010
SDGE Doc #249440 TOB-i
TABLE OF CONTENTS I. INTRODUCTION...................................................................................................................... 1
A. Purpose of Testimony ................................................................................................................ 1
B. Overview of Operations ............................................................................................................. 3
C. Challenges Facing Operations .................................................................................................. 4
C. Reliability .................................................................................................................................. 14
D. Smart Grid Development ........................................................................................................ 15
E. Summary of Request ................................................................................................................ 16
II. NONSHARED SERVICES ..................................................................................................... 17
A. Introduction .............................................................................................................................. 17
1. Smart Grid Team ............................................................................................................... 17
B. Discussion of O&M Activities ................................................................................................. 17
1. Smart Grid Team Salaries and Benefits .......................................................................... 17
III. CAPITAL.................................................................................................................................. 18
A. Introduction .............................................................................................................................. 18
B. Capital Request Detail ............................................................................................................. 20
1. Renewable Growth: Energy Storage (Budget Codes: 10261) ....................................... 20
IV. CONCLUSION ........................................................................................................................ 35
V. WITNESS QUALIFICATIONS ............................................................................................. 37
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PREPARED DIRECT TESTIMONY OF 1
THOMAS BIALEK, Ph.D., P.E. 2
ON BEHALF OF SAN DIEGO GAS & ELECTRIC COMPANY 3
4 5 I. INTRODUCTION 6 7
A. Purpose of Testimony 8
1. New Projects Incremental to Historical Activities 9
The purpose of this testimony is to sponsor the Smart Grid capital forecasts for 10
San Diego Gas & Electric Company, SDG&E, for the years 2010, 2011 and the test 11
year 2012. The Smart Grid portfolio of projects that are presented in this immediate 12
general rate case, GRC, application also have a life span that extend beyond the test 13
year. Additionally, this GRC funding request is not to be viewed as the entirety of 14
Smart Grid projects that SDG&E may request since other projects may be necessary in 15
the future as requirements change and as new technologies and solutions become 16
available. 17
As discussed in the Smart Grid policy testimony of Mr. Lee Krevat, Exhibit 18
SDG&E-10, there are many drivers for SDG&E’s Smart Grid activities. Based upon 19
these drivers, SDG&E has developed a limited portfolio of projects with the goal of 20
applying Smart Grid technologies to effectively integrate intermittent renewable 21
generation sources and plug-in electric vehicles, and includes other capabilities 22
designed to maintain and/or improve system reliability. The projects included in this 23
general rate case include only the distribution component of each project. The 24
information technology, IT, capital portions associated with these projects are 25
necessary to provide the communication devices, IT infrastructure and applications 26
required to derive the functionality envisioned with the individual project. The IT 27
components required for the Smart Grid portfolio of projects, while need-justified 28
within the scope of this testimony, are presented in the testimony of Mr. Jeff Nichols, 29
Exhibit SDG&E-18. What might be described today as the conventional or on-going 30
capital and operations and maintenance forecasts are presented in the testimonies of 31
Mr. Alan Marcher, Exhibit SDG&E-06 and Mr. Scott Furgerson, Exhibit SDG&E-05 32
respectively. 33
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A list of the Smart Grid projects by categories and testimony sponsors is shown below: 1
RENEWABLE GROWTH 2
Energy Storage (ES) Capital Thomas Bialek, Exhibit SDG&E-11 3
IT Mr. Jeff Nichols, Exhibit SDG&E-18 4
Dynamic Line Ratings Capital Thomas Bialek, Exhibit SDG&E-11 5
IT Mr. Jeff Nichols, Exhibit SDG&E-18 6
Phasor Measurement Units Capital Thomas Bialek, Exhibit SDG&E-11 7
IT Mr. Jeff Nichols, Exhibit SDG&E-18 8
Capacitor SCADA Capital Thomas Bialek, Exhibit SDG&E-11 9
IT Mr. Jeff Nichols, Exhibit SDG&E-18 10
SCADA expansion Capital Thomas Bialek, Exhibit SDG&E-11 11
IT Mr. Jeff Nichols, Exhibit SDG&E-18 12
13
14
ELECTRIC VEHICLE GROWTH 15
Plug-in Electric Vehicles Capital Mr. Alan Marcher, Exhibit SDG&E-06 16
IT Mr. Jeff Nichols, Exhibit SDG&E-18 17
Smart Transformers Capital Thomas Bialek, Exhibit SDG&E-11 18
IT Mr. Jeff Nichols, Exhibit SDG&E-18 19
Public Access Charging Facilities Capital Thomas Bialek, Exhibit SDG&E-11 20
IT Mr. Jeff Nichols, Exhibit SDG&E-18 21
22
RELIABILITY 23
Wireless Faulted Circuit Indicators Capital Thomas Bialek, Exhibit SDG&E-11 24
IT Mr. Jeff Nichols, Exhibit SDG&E-18 25
Phase Identification Capital Thomas Bialek, Exhibit SDG&E-11 26
IT Mr. Jeff Nichols, Exhibit SDG&E-18 27
Condition Based Maintenance 28 Expansion Capital Thomas Bialek, Exhibit SDG&E-11 29
IT Mr. Jeff Nichols, Exhibit SDG&E-18 30
31
32
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SMART GRID DEVELOPMENT 1
Integrated Test Facility Capital Thomas Bialek, Exhibit SDG&E-11 2
IT Mr. Jeff Nichols, Exhibit SDG&E-18 3
4
2. Smart Grid Team 5
This testimony also sponsors the ongoing funding of the cost center for the 6
Smart Grid Team. This small group of individuals: a Director, Chief Engineer, Lead 7
Architect, Policy Manager, Customer Manager and Administrative Associate; are 8
responsible for developing SDG&E’s Smart Grid strategy and policy. The organization 9
is also responsible for aligning the strategy and policy across SDG&E. 10
11
Table TOB -1 12
Summary of TY2012 Change 13
(Thousands of $2009) 14
15 Functional Area: SMART GRID
Description 2009 Adjusted-Recorded
TY2012 Estimated
Change Testimony Reference
Total Non-Shared 330 1,003 673 Section II Total Shared Services (Book Expense)
0 0 0
Total O&M 330 1,003 673 Total Capital 0 57,269 57,269 Section III 16
B. Overview of Operations 17
Smart Grid is a new activity. A special cost-center function has been created to deal 18
just with this topic, and that cost center’s role is to provide steering and strategic guidance 19
throughout the organization to coordinate the adoption and implementation of Smart Grid 20
related technologies. 21
22
23
24
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C. Challenges Facing Operations 1
As described in the testimony of Mr. Lee Krevat, Exhibit SDG&E-10, SDG&E is 2
committed to meeting California policy goals of promoting increased levels of renewable 3
energy resources and the deployment of electric vehicles to meet greenhouse gas reduction 4
targets. However, with advancements in environmentally friendly technologies such as solar 5
and wind generation, plug-in electric vehicles, and energy storage, as well as the deployment 6
of new customer empowering Smart Meter technology, the electric system is in the midst of 7
significant change. SDG&E recognizes the need to leverage equally advancing information 8
and communication technologies, ICT, to ensure the continued safety, reliability, security, and 9
efficiency of the electric grid as utilization of intermittent energy resources and demand for 10
plug-in electric vehicle, PEV, increases. 11
In addition to the traditional grid management and customer-facing projects utilities 12
have undertaken in the past, environmental policy and legislation encouraging customer 13
empowerment over energy management is driving the need to accelerate the integration of 14
digital and communications technology with the electric delivery system, creating a smarter 15
grid. The public policy objectives of California and the situation faced in San Diego create a 16
need to move forward with the implementation of advanced technology in order to meet the 17
State’s ambitious energy policy goals. 18
The seven characteristics or performance features of a Smart Grid as developed by the 19
Department of Energy’s, DOE, Smart Grid Task Force and referenced by the CPUC are1: 20
• Anticipating and responding to system disturbances in a 21 self-healing manner; 22
• Enabling active participation by consumers; 23
• Operating resiliently against physical and cyber attack; 24
• Accommodating all generation and storage options; 25
• Enabling new products, services, and markets; 26
• Optimizing asset utilization and operating efficiently; and 27
• Providing the power quality for the range of needs in a 28 digital economy. 29
30 1 CPUC R.08-12-009, Order Instituting Rulemaking to consider Smart Grid Technologies Pursuant to Federal Legislation and on the Commission’s own Motion to Actively Guide Policy in California’s Development of a Smart Grid System, p 11.
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SDG&E’s current portfolio of T&D Smart Grid projects focus on four specific areas: 1
renewable generation growth, electric vehicle growth, reliability and Smart Grid development. 2
In the first area SDG&E is focused on mitigating the impact of renewable photovoltaic, PV, 3
distributed generation. For the second area, SDG&E is deploying new Smart Grid 4
technologies as well as traditional infrastructure to mitigate reliability issues due to customer 5
adoption of PEVs. The third area focus is to mitigate the reliability impacts of an aging 6
electric infrastructure by implementing advanced sensors and associated systems. For the last 7
area, SDG&E is planning to create an integrated test facility to put various emerging 8
technology solutions together to test for interoperability and provide proof-of-concept 9
demonstrations. 10
As indicated by Mr. Lee Krevat, Exhibit SDG&E-10, SDG&E needs to mitigate the 11
impacts of renewable generation development that is planned and occurring in the San Diego 12
region to satisfy California’s 33% Renewable Portfolio Standard, RPS. Additionally, San 13
Diegans have installed more total systems and nameplate capacity of distributed photovoltaic 14
generation than consumers in any city in the state based on 2009 data2. The arrival of 1,000 15
Nissan Leaf all-electric vehicles starting in December of 2010 will also increase the immediate 16
need for Smart Grid technologies on the electric grid in San Diego. 17
Increased situational awareness enabled by sensors, communications, data, analysis and 18
remote control allows the system to be operated with increased reliability and safety. Dynamic 19
measurement of system characteristics and improved distribution management also increases 20
the capabilities and resiliency of energy delivery. However, as a result, the complexity of grid 21
operations is increased significantly. 22
23
1. San Diego Drivers 24
The specific drivers of Smart Grid investments in the San Diego Gas & Electric 25
service territory are the growth of distributed photovoltaics, PV, the expected growth of 26
plug-in electric vehicles, PEVs and SDG&E’s aging infrastructure. 27
28
29
2 “California’s Solar Cities: Leading the Way to a Clean Energy Future”; Environment California Research and Policy Center, Summer 2009; accessed July 15, 2010 at http://www.environmentcalifornia.org/reports/energy/energy-program-reports/californias-solar-cities
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a. Distributed Photovoltaic Growth 1
At year end 2009 distributed PV accounted for approximately 65 MWac 2
of generating capacity on the SDG&E system. As of the same timeframe, 3
SDG&E has ten primary distribution circuits with over 20% of the load served 4
by PV at times of low circuit loading as shown in Figure TOB-1.3 Figure TOB-5
2 illustrates both the actual recorded PV installations and the California Energy 6
Commission, CEC, forecast based on past PV growth.4 Applying the CEC 7
forecast to existing installations on circuits produces Figure TOB-3 which 8
shows the circuits with levels of over 20% PV generation at year end 2020. 9
This figure shows sixty circuits meet this criteria, which SDG&E believes is an 10
appropriate threshold to conduct more detailed studies to determine if the circuit 11
can accommodate these levels of PV without impacting grid voltage operating 12
limits or creating any operations and maintenance issues. 13
14
15
3 While SDG&E’s Rule 21 places an emphasis on percentage nameplate capacity as a function of peak line section rating, for PV systems the maximum output at times of lower system load (no air conditioning) are more critical. 4 CEC CALIFORNIA ENERGY DEMAND 2010-2020 December 2009, CEC-200-2009-012-CMF, ADOPTED FORECAST , Form 1.4, Page 149.
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1 Figure TOB-1 – PV Penetration YE 2009 as a Percentage of Circuit Load on April 1, 2009, 1 2
pm 3
4
5
6
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1 Figure TOB-2 – Actual Historical PV Installations and CEC PV Forecast 2
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1 Figure TOB-3 – Impact of Increasing PV Penetration versus year with CEC Forecast Installations 2
3
SDG&E has been able to instrument a circuit with a high PV nameplate capacity at a time of 4
low circuit loading. Figure TOB- 4 shows the impact of a 1 MWac PV system on SDG&E’s primary 5
voltage for one day recorded with this instrumentation. The upper set of curves shows the impact of 6
fog burning off on the output of the PV system and the commensurate changes in primary voltage 7
during the day. The lower set of curves is a magnified view, 10 minutes of one particular change in 8
the PV system output data. Operational issues that are noted from these curves include the following: 9
high primary voltage coincident with PV system output and an approximately 15% swing in primary 10
voltage coincident with PV system output change. These measured and changes in values are outside 11
SDG&E’s design tolerance limits. Therefore, from the data and forecast currently available, SDG&E 12
believes investment in mitigation of intermittent photovoltaic generation is necessary. 13
14
15
SDGE Doc #249440 TOB-10
1 Figure TOB-4 – PV System Output Variability Impact on Primary Voltage 2
3
One component of a solution to this problem is to incorporate energy storage as a grid device. 4
With energy storage, given its cost today, it is necessary to accrue benefits associated with multiple 5
SDGE Doc #249440 TOB-11
value streams in order to provide a least-cost solution. The value streams for energy storage are as 1
follows: 2
• Grid operation to islanded system operation 3
• Smoothing electrical transition 4
• Power quality 5
• Power leveling / regulation on grids with connected variable, renewal energy sources, 6
such as Wind, PV, etc. 7
• Peak load shifting / shaving 8
• As needed 9
• Daily 10
• Energy storage for off-peak / on-peak energy arbitrage 11
• Energy regulation / ancillary services related to CAISO operations 12
• T&D capacity deferral 13
14
SDG&E has utilized a report published by Sandia National Labs as a reference guide for 15
energy storage applications which states5: 16
"The work documented in this report represents another step in the ongoing investigation of 17
innovative and potentially attractive value propositions for electricity storage by the United 18
States Department of Energy (DOE) and Sandia National Laboratories (SNL) Energy Storage 19
Systems (ESS) Program. This study uses updated cost and performance information for 20
modular energy storage (MES) developed for this study to evaluate four prospective value 21
propositions for MES. The four potentially attractive value propositions are defined by a 22
combination of well known benefits that are associated with electricity generation, delivery, 23
and use. The value propositions evaluated are: 1) transportable MES for electric utility 24
transmission and distribution (T&D) equipment upgrade deferral and for improving local 25
power quality, each in alternating years, 2) improving local power quality only, in all years, 3) 26
electric utility T&D deferral in year 1, followed by electricity price arbitrage in following 27
years; plus a generation capacity credit in all years, and 4) electric utility end-user cost 28
management during times when peak and critical peak pricing prevail." 29 5 Sandia National Laboratory, SANDIA REPORT SAND2008-0978, Unlimited Release Printed, February 2008, Benefit/Cost Framework for Evaluating Modular Energy Storage, A Study for the DOE Energy Storage Systems Program, Susan M. Schoenung and Jim Eyer.
SDGE Doc #249440 TOB-12
1
The summary results of the SNL study are shown below. 2
“Figure 17 shows the present worth of benefits and costs for lead-acid battery storage used for 3
the four value propositions investigated. Most notably: value proposition 1 (T&D deferral plus 4
PQ), value proposition 2 (PQ/reliability only) and value proposition 3 (high value T&D 5
deferral plus arbitrage and generation capacity credit) show promise as they have a benefit/cost 6
ratio greater than 1. 7 8
9 10
Other components of the multi-faceted solution include dynamic line ratings, phasor 11
measurement units and supervisory control and data acquisition, SCADA, expansion to enable remote 12
control of capacitor banks and other switches on the system. 13
14
B. Plug-In Electric Vehicle (PEV) Growth 15
As also discussed in the testimony of Mr. Lee Krevat, Exhibit SDG&E-10, the impact 16
of PEVs on SDG&E’s system is expected to be significant. He discussed the US Department 17
of Energy, DOE, and California Energy Commission, CEC, grants awarded to ECOtality6 as 18
6 ECOtality is a San Francisco based company specializing in the development and commercialization of electric transportation and storage technologies.
SDGE Doc #249440 TOB-13
well as the large loads that these vehicles will impose on the system as a result of the rapid 1
deployment of PEVs and residential, commercial and public charging facilities in the SDG&E 2
service territory beginning in 2010. He also mentioned the need to make infrastructure 3
investments to empower customers and to minimize barriers that would be created without 4
immediate action taken to ensure the deployment of adequate charging infrastructure. This 5
position is also supported by the Commission as described in the testimony of Ms. Kathleen 6
Cordova, Exhibit SDG&E-15 (SDG&E’s Electric Clean Transportation Program). In January 7
2010, the Commission recognized the importance of early action to support the electric 8
transportation market in defining the scope for the alternative-fueled vehicles rulemaking and 9
stated that it will follow the directive set forth in Senate Bill 626 to evaluate policies to develop 10
infrastructure sufficient to overcome any barriers to the widespread deployment and use of 11
plug-in hybrid and electric vehicles.7 12
Figure TOB-5 shows SDG&E’s estimates of PEV sales in its service territory. This 13
estimate of PEV sales was based upon several independent analysts’ forecast of light duty 14
vehicles PEV penetrations adjusted to be applicable to SDG&E’s service territory and related 15
impacts. By 2012 approximately 15,000 PEVs are estimated to be owned by customers in 16
SDG&E’s service territory. With an estimated load of 3 kW per vehicle this equates to 45 MW 17
of new load, that if not managed properly could have a significant impact on the local 18
distribution system and potential generation needs. It should be noted that the Commission 19
approved in June of 2010 the use of three experimental PEV time-of-use rates, each with 20
varying differences between on-peak and off-peak pricing to explore the degree to which rates 21
One of many challenges associated with PEV growth rates will be with customers who 24
purchase these vehicles and are located in the older coastal areas of SDG&E’s service territory. 25
In most instances these homes are smaller, do not have air conditioning and the number of 26
customers connected per transformer is greater than in the inland valleys. A 3 kW charging 27
7 January 12, 2010 Scoping Memo in R.09-08-009, Commission Rulemaking on alternative-fueled vehicle tariffs, infrastructure and policies to support California's greenhouse gas emissions reduction goals. 8 http://docs.cpuc.ca.gov/word_pdf/AGENDA_RESOLUTION/119477.pdf Res.E-4334 – The CPUC approved SDG&E’s request to establish three new temporary experimental residential rate schedules for plug-in electric vehicle (PEV) charging to be used coincident with the EV Project (ECOtality’s deployment of home, commercial and public charging facilities in collaboration with Nissan’s deployment of the Leaf PEV in SDG&E’s services territory). This Resolution approves implementation of the experimental rate schedules beginning January 1, 2011. The temporary rates will remain in effect until November 30, 2012 (or until completion of the related pricing pilot research project.)
SDGE Doc #249440 TOB-14
load is comparable to an air conditioner load which now suddenly is placed onto the grid. 1
SDG&E is currently involved in an Electric Power Research Institute, EPRI, project9 to further 2
understand the impact of PEVs on the grid. Proactively, SDG&E believes it is imperative to 3
fund three areas of activities: existing facility upgrades, smart transformers and public charging 4
infrastructure in order address the coming PEV consumer demand and to reduce potential 5
market barriers to PEV adoption due to inadequate charging infrastructure. 6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Figure TOB-5 – SDG&E’s Estimate of PEV Sales 21
22
C. Reliability 23
As discussed at length in the testimony of Mr. Alan Marcher, Exhibit SDG&E-06, 24
SDG&E has an aging infrastructure and a need to continue to improve its fire preparedness. 25
Seventy-eight percent of SDG&E’s 4 kV substation transformers have been in-service 50 years 26
or more while only thirty seven percent of 12 kV substation transformers have been in-service 27
40 years or more. It is not just transformers but basic equipment such as poles, wire and cable. 28
Putting this in context, these pieces of equipment have to handle not only existing historical 29
loads but now also the intermittent power flows associated with PV systems that have been 30
installed and the PEV loads that are poised to make an appearance at the end of 2010. 31 9 EPRI Project ID No. 065939.
Cumulative and annual PEV sales (2010 to 2020)BEVs and PHEVs (x 1,000)
As SDG&E works to further reduce the risk of fires and strive to improve its ability to 2
respond and restore electrical service as quickly as possible, it is leveraging advances in 3
technology and systems. SDG&E believes that by putting the “smarts” in the grid it should be 4
possible to maintain and/or improve reliability in the face of these challenges. Therefore, 5
SDG&E has developed cost forecasts for three Smart Grid projects for incorporation in this 6
general rate case: wireless faulted circuit indicators, phase identification and an expansion of 7
condition based maintenance. 8
9
D. Smart Grid Development 10
As the Commission has noted in its recent Smart Grid OIR decision, D.10-06-047, 11
“…that deployment plans should include a discussion of an IOU’s Smart Grid strategy, 12
and that the strategy should offer a sense of direction and guidance, rather than setting rigid 13
requirements. This is clearly a reasonable approach since there are significant uncertainties 14
surrounding future technologies that may be part of a Smart Grid.” 10 15
also 16
“There is a consensus among those parties providing comments that a 17
roadmap can provide useful information concerning technologies and their 18
deployment, even though they will remain subject to change.”11 19
20
and finally 21
“In addition, there is near universal agreement that it is difficult to provide a reliable cost 22
estimate based on future and unknown technologies and infrastructure investments….but the 23
Commission does not find that it would be possible to require detailed, projected cost estimates 24
for technology that is undergoing dramatic changes in costs and technology today, or has yet to 25
be invented.”12 26
Given that Smart Grid technologies, solutions and standards are rapidly evolving and it 27
is difficult to estimate costs and requirements in the next five years, there is a need, as pointed 28
10 R.08-12-009, Order Instituting Rulemaking to Consider Smart Grid Technologies Pursuant to Federal Legislation and on the Commission’s own Motion to Actively Guide Policy in California’s Development of a Smart Grid System, D.10-06-047 (Decision Adopting Requirements For Smart Grid Deployment Plans Pursuant To Senate Bill 17 (Padilla), Chapter 327, Statutes Of 2009)., pg. 47. 11 Ibid, pg. 64. 12 Ibid, pg. 68.
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out by Mr. Lee Krevat Exhibit SDG&E-10, for SDG&E to test the function of new consumer 1
focused technologies on the installed smart meters and associated systems to enable two Smart 2
Grid characteristics. These characteristics are enabling active participation by consumers and 3
new products, services, and markets. Therefore, SDG&E has developed a cost forecast for an 4
integrated Smart Grid test facility to address standard, integration and interoperability 5
challenges for these technologies. 6
7
E. Summary of Request 8
9 Table TOB - 2 10
O&M Non-Shared Services 11 Testimony Section II 12
A cost forecast is provided to construct facility upgrades and purchase and install 2
equipment to create an integrated test facility. This will allow testing of the integration of 3
multiple complex hardware and software systems comprising Smart Grid technologies. 4
Smart Grid technologies, communications and systems are rapidly evolving or in 5
some cases do not yet exist. The National Institute of Standards and Technology, NIST, is 6
currently working on consensus standards. New product and services are also being 7
developed. In parallel SDG&E is rolling out its advanced metering infrastructure. It is 8
critical that these new systems and standards allow for interoperability between products. 9
As it develops, the Smart Grid will require the integration of multiple complex 10
hardware and software systems. As part of the effort to integrate technologies to improve 11
electric power systems’ reliability and efficiency, facilities, systems, and personnel will be 12
required to test their interoperability, functionality and effectiveness in meeting 13
requirements. Leveraging space at an existing SDG&E building, the project will implement 14
necessary upgrades and equipment to create an integrated test facility. 15
16
The project will implement necessary upgrades and equipment to create an 17
integrated test facility. The cash flow below reflects constructing this facility primarily over 18
a two year period from 2011 to 2012. 19
20 Table TOB - 18 21
Smart Grid Development, Integrated Test Facility Capital Expenditures 22 (Thousands of 2009 dollars) 23
24 Description 2009 Adjusted
Recorded 2010
Estimated 2011
Estimated TY2012
Estimated Category 1 $0 $0 $502 $1,340
25
IV. CONCLUSION 26
The Commission has determined in D.10-06-047 the rules by which Smart Grid deployment 27
plans as envisioned by SB17 will be would be vetted. The Commission has recognized the need for 28
funding requests both in the course of general rate cases as well as special applications, and directed in 29
SDGE Doc #249440 TOB-36
that same decision that utilities may include cost forecasts for Smart Grid development in future 1
GRCs. As noted in the decision: 2
“Finally, we agree that Smart Grid investments may be best considered in rate cases and prefer 3
that IOUs propose Smart Grid investments as part of their GRCs.”15 4
also 5
“Pacific Gas and Electric Company, Southern California Edison Company, and San Diego Gas 6
& Electric Company each shall seek approval of Smart Grid investments either through an 7
application and/or through General Rate Cases.”16 8
9
SDG&E’s preliminary list of Smart Grid projects as proposed in this application are needed to 10
empower consumers while addressing the impact of renewables and PEVs on the grid, while 11
simultaneously maintaining and/or improving reliability. An integrated test facility is required to test 12
standards, interoperability and functionality of future Smart Grid technologies and systems. I 13
respectfully request the Commission adopt the cost forecasts for SDG&E’s Smart Grid development 14
as described in this testimony. 15
This concludes my prepared direct testimony. 16
17
15R.08-12-009, Order Instituting Rulemaking to Consider Smart Grid Technologies Pursuant to Federal Legislation and on the Commission’s own Motion to Actively Guide Policy in California’s Development of a Smart Grid System, D.10-06-047 (Decision Adopting Requirements For Smart Grid Deployment Plans Pursuant To Senate Bill 17 (Padilla), Chapter 327, Statutes Of 2009)., pg. 114. 16 Ibid, Ordering Paragraph 14, pg. 114.
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V. WITNESS QUALIFICATIONS 1
My name is Thomas O. Bialek, Ph.D., P.E.. My business address is 8316 Century Park 2
Court, San Diego, California 92123. I am employed by San Diego Gas & Electric Company 3
("SDG&E") as a Chief Engineer in SDG&E’s Smart Grid Initiative. My present responsibilities 4
involve developing strategy and policy with regards to T&D Smart Grid initiatives. These 5
activities generally include technical review, policy development and strategic planning of 6
transmission and distribution systems. I am also responsible for the preparation of exhibits and 7
proposals for regulatory proceedings in the Smart Grid areas. 8
I have been employed by SDG&E since 2000 and have held various positions with other 9
North American utilities and equipment manufacturers subsequent to that time. My experience 10
includes electric utility design, planning & operation, and equipment design, development and 11
manufacturing. 12
I received a Bachelor and Master of Science and Degrees in Electrical Engineering from the 13
University of Manitoba in 1982 and 1986 respectively. I received my Ph.D. in Electrical Engineering 14
from Mississippi State University in 2005. I am a registered Professional Engineer, Electrical 15
Engineering, in the State of California. 16
I have previously testified before the California Public Utilities Commission. 17