The Smart Grid Business Case:Creating a Secure & Reliable Energy Resource

Steve OldhamChair, USTelecom

President & CEO, SureWest Communications

About USTelecom• Premier Broadband Trade Association

representing service providers and suppliers for the telecom industry

• Supports a wide range of services across wireless and wireline communications networks

• Diverse membership spans large national carriers to rural cooperatives

What is a Smart Grid?

The Goal

Develop the ability to dispatch customer loads reliably enough to reduce critical peak loads and to

provide system operators with another source of spinning reserve.

Crucial Elements to Smart Grid Success• Reliable two way communication between

electric provider and customer loads

• Secure and verifiable access to household energy consumption data by the customers

• Load dispatching capability equal to or superior to resource dispatching

Not Just a Distribution Problem

Generation Transmission Distribution

Key Challenges

• Customers will not accept a lower level of reliability to incorporate lower/no emission generation

• Renewable resources are intermittent by nature

• The Electric Vehicle…

Impacts of PHEV

An Engaged Customer?

Key Success Factors• Customers must be able to willingly specify their

level of participation – on an ongoing basis

• A successful program can’t come at the expense of reliability, comfort, or consumer lifestyle

• Ongoing customer support and device support can’t be ignored

How This Can Work1. Leverage existing Networks2. Enable the customer3. Constantly monitor the devices4. Aggregate customer profiles into dispatch-

able load5. Enable platform flexibility & scalability

Why Telco’s• The network is already in place• Our core competency is operating and

upgrading communication networks to meet customer needs

• We take security seriously• We already have a presence inside the

home• Ready to provide the ongoing customer

support necessary to make this successful

Residential Demand ResponseConsumer

Engagement

Two-way Communication

Security & PrivacyReliability

Monitoring & Support

Closing Thoughts• Smart grid is receiving plenty of attention

today – but will take time• Telecom is ready to enable cost effective

two-way, IP-based demand response solutions

• Public policy must focus on encouraging investment while protecting rate payers