Reliability and ResiliencyHardening the Grid

14PESGM2501Manufacturer’s Perspective on Reliability and

Resiliency in the US Capital RegionHardening the Grid: One Year after Sandy

G. RACKLIFFE, ABB

1

Superstorm Sandy• 8.5 million people without power across 21 states

– the highest outage total for an extreme weatherevent in history

• $65 billion in damage making it the 2nd mostcostly hurricane to hit the US after Katrina

• The superstorm followed three major extremeevents on the East Coast:

1. Hurricane Irene in August 2011 interruptedpower for 4 million people along the eastcoast with $15.6 billion in damage

2. A Halloween nor’easter knocked out powerfor more than 3 million people in the Mid-Atlanta and Northeast

3. Outages from a Derecho in June 2012affected more than 4 million people in theMidwest and Mid-Atlantic

Source – Greentech Media e-book: Resiliency: How Superstorm Sandy Changed America’s Grid

©2014 ABB Inc. | Confidential & Proprietary

2

Severe weather events

• Severe weather events arecausing widespread outages

• Regulators and policy makersare increasing penalties

• Customers are dissatisfiedand are investing indistributed generation

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Outages are becoming more commonCosts vary by industry

Source: Galvin Electricity Initiative, EIA

Outage Cost for Data Centers Businesses face significant costs for every minute without power.

eBay loses 330 KUSD/minute during a data center outage.

©2014 ABB Inc. | Confidential & Proprietary

The risks are high

©2014 ABB Inc. | Confidential & Proprietary

Survey of 107 utilities in the Midwest and East conducted in March 2014Outages caused by severe weather of all types

17%

33%

42%

8.20%

Hurricane, major stormIce, snow, winter stormThunderstorm, lightning, tornadoOther

57%18%

25%

Investor Owned

Municipal

Cooperative

©2014 ABB Inc. | Confidential & Proprietary

Actions planned to address outage challenges

0% 5% 10% 15% 20% 25% 30% 35% 40%

Grid hardening

New/upgraded OT

Improve/transform business processes

New/upgraded IT

©2014 ABB Inc. | Confidential & Proprietary

Justification for investments

0% 10% 20% 30% 40% 50% 60%

Improve safety

Improve reliability metrics

Reduce/control O&M expenses

Improve customer satisfaction

©2014 ABB company | Confidential & Proprietary

The costs of the new era of outages

10x INCREASE IN LARGE-SCALE OUTAGES

$20M SOCIETAL COST PER MINUTE

$25-70B AVERAGE ANNUAL COST

©2014 ABB Inc. | Confidential & Proprietary

Utility infrastructure is complexCritical transmission assets impact grid security most

Communication/ Network

Industrial customer

Commercial customer

Residential customer

Transmission control center

Distribution control center

Energy service provider

Distributed resource

Distribution power electronics

Distribution substationTransmission substationPower generator

Traditional definition of resiliency

“The ability to become strong, healthy, or successful again after something bad happens.”

Webster

©2014 ABB Inc. | Confidential & Proprietary

No one-size-fits-all solution to grid security, hardening and resilience

New definition of resiliency: The ability of people, networks and systems to anticipate events, absorb disturbances and adapt to evolving conditions • OT/IT worlds are converging; requires a holistic solution set

• Synthesis of grid data key to building system wide common operating picture for strategic scenarioanalysis and foresight planning

© ABB Inc. July 24, 2014 | Slide 11

Situational AwarenessGrid Hardening

• Vegetation management• Gas-insulated switchgear• Underground cables• Distribution automation

• Monitoring in real-time and recoveringquickly

• Wireless communications• Mobile workforce management• Customer communications

©2014 ABB Inc. | Confidential & Proprietary

Information Technology Synthesizes big data into critical insights and automated actions

Insights drive just-in-time work to optimize enterprise

Large volumes of data for visibility

into condition and status

Operational TechnologyMonitors and controls critical assets

31

2

Benefits of the IT/OT Convergence

EnterpriseRespond fasterto real-time conditions

Gain insight for business process improvement

Prioritize work to reduce the risk of outages

1

2

3

Utility Analytics – IT and OT Convergence

12©2014 ABB Inc. | Confidential & Proprietary

Outage Management – Reactive ProcessOutage Management

Mobile

Situational Dashboards

Outage Communications

Self healing grid strategies• Fault Detection, Isolation, and Restoration (FDIR)

– Coordinated control between groups ofreclosers, load break switches, and highvoltage circuit breakers across thedistribution grid

– Determines fault locations and preparesswitch orders to isolate faults andreconfigure the grid to immediately restoreas many customers as possible usingdistribution SCADA

• Benefits– Maximum improvement in SAIDI and CAIDI

scores– Takes advantage of the load profile

forecasting applications and uses the loadflow to verify solutions

– Allows utilities to take a proactive approachto grid management

– Highest level of worker safety

© ABB Group July 23, 2014 | Slide 14 ©2014 ABB Inc. | Confidential & Proprietary

Increasing reliabilityTypical FDIR components may include…

©2014 ABB Inc. | Confidential & Proprietary

Reliability benefitsSummary of reclosing benefits

©2014 ABB Inc. | Confidential & Proprietary

Situational awareness

Damage Assessment Summary

Route Assignments 20

Routes In Progress 2

Routes Complete 3

Assessments Submitted 6

Assessment Information

ID: 32Area: West

Lat, Long: 41.876789, -71.3996124Date Assessed: 08/26/13 3:04 PM

Assessment Details

Assessor Name: Tom HillHazard Level: HighEquipment: Poles / LinesCustomers: 5Critical: 1Emergency Onsite: Yes

Work: Replace 3 poles. Click here to enlargeMove lines.

©2014 ABB Inc. | Confidential & Proprietary

Storm damage projection and assessment health management

The next major advancement in outage & asset management…

©2014 ABB Inc. | Confidential & Proprietary

Predicting Future Problems

• Analytics uses past data to forecast, predict, and optimize• Anticipating future problems improves decision-making• Five Vs of big data: Volume, Variation, Velocity, Verasity >>> Value

Source: analytics value curve from the Utility Analytics Institute

©2014 ABB Inc. | Confidential & Proprietary

Storm Damage Projection

Storm damage projection

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Outage Lifecycle Management

Return to NormalReporting

Grid Hardening

.gov

Model Historical Data

Forecast Damage

Project Required Workforce & Materials

©2014 ABB Inc. | Confidential & Proprietary

Benefits of outage lifecycle management

Ensure compliance with regulatory requirements

Restore power faster, more safely and efficiently

Better real-time visibility for smarter, faster decisions

Capture expertise into mobile technology for safer, more efficient work

Better communication with customers, regulators and media

Better processes = quicker outage restoration = happier stakeholders

©2014 ABB Inc. | Confidential & Proprietary | 26

Microgrid technologies – grid resiliency

1. Grid-connected and off-grid operations2. Interconnection of renewable generation3. Islanded operations during storm response

© ABB Group July 23, 2014 | Slide 27 ©2014 ABB Inc. | Confidential & Proprietary

Minimal space requirement

Compact, unobtrusive design ideal forkey urban electrical infrastructure

Gas insulated substations are easilyelevated. Due to smaller size, can beplaced inside or covered.

Improving resiliency – physical design solutions

Gas insulated switchgear Underground cables

No overhead lines

Buried cables are more difficult totarget

Greater resiliency to weather

Same power can be transmitted

©2014 ABB Inc. | Confidential & Proprietary

State of the grid – aging transformers, 300M wooden poles

• Many T&D assets arepast their expected lifeand are at risk forcatastrophic failure

• Utilities must maintainor improve reliabilitywhile controlling bothcapital and operationalexpenses

©2014 ABB Inc. | Confidential & Proprietary

Uses advanced analytics to improve overall asset performance and system reliability. It balances:

Operational performanceFinancial performance Business Risk

Monitors assets at the ‘fleet’ or “substation” level by Risk of Failure (ROF) and Importance.

Asset Health Management

Reduce risk of critical assetfailure

Deploy capital most effectively

Optimize O&M spend whereit’s needed most

Improve workforce productivityand efficiency

Performance

RiskCost

Achieve Optimal Balance

©2014 ABB Inc. | Confidential & Proprietary

Aging Workforce

• Workforcedemographics arechanging

• There will be morecontractors andyounger workers in thefield

• Need to enable newworkers with state ofthe art mobiletechnology

©2014 ABB Inc. | Confidential & Proprietary

©2014 ABB Inc. | Confidential & Proprietary | 32

Grid Resiliency – Supported by Situational Awareness

• Synthesis of grid data key to building system wide common operatingpicture for strategic scenario analysis and foresight planning

• Automatic control of recovery following a disturbance is paramountto efficient decision making based on a multitude of catastrophescenarios

Today’s Resilience Definition: The ability of people, networks and systems to anticipate events, absorb disturbances, and adapt to evolving conditions

©2014 ABB Inc. | Confidential & Proprietary

For further information please contact:

Gary RackliffeVP Smart Grids North America

gary.rackliffe@us.abb.com