9/12/2007 1

CCET at Two Years

Presentationto

RMS Meeting of ERCOTAustin, Texas

October 10, 2007

Dr. Milton HollowayChief Operating Officer

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IBM

• Formed in Sept 2005 by Five Members (CNP, TXU ED (now Oncor), AEP Texas, Freescale & TxCEE)

• Now 19 Members (8 Full and 11 Affiliate Class)

LCRA

eMeter

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CCET ORGANIZATION

• CCET’s objective • to develop and capture the benefits of advancing

technologies in: – electric energy transmission– distribution and – end use

• by bringing together the extensive existing facilities and technical capabilities of electric utilities, high technology leaders, and Texas universities and colleges.

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CCET ORGANIZATION CCET

Board of Directors

Chief Operating Officer

President & CEO

Project A

Project B

Project C

Project D

Project “N”

Technical Advisory Group

Affiliates

TxCEE

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CCET ORGANIZATION

• Technical Advisory Group (TAG) • Responsible for advising and assisting the

center’s process for developing commercialization proposals

• One technical representative from each member company, and affiliate members

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THE COMMON INTERESTSI. Find the mutual interests (objectives)

II. Find the technologies that serve the mutual interests (objectives)

Generation Transmission Distribution End Users

DG Mgt EnableEfficiency Reliability Stability

Security

The T & D Grid

Developing the CCET Road Map

Electric utilities (wires companies)IOUs

Municipal electric utilities and coops

High tech firms

University (research and training programs)

The public interest

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THE COMMON INTERESTSInterface between end user and the grid

Priority ApplicationPrimary

product/technology Upstream essentialDownstream essential

#1

1 two way communications between customer and utility

receiver transmitter backhaul communication and software

customer interface devices

2 customer information on demand

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THE COMMON INTERESTS Improve the stability, security, reliability and

power quality of the grid

Objective Priority Application Primary product/technologyPrimaryImprove the stability, security and reliability of the grid

1 identify faults before they cause outages

RTU with DFA software and based on automation of the distribution grid; flexible for use in varying systems and with many companion devices

2 monitoring and control of distribution line devices

RTU in part; current & voltage sensors, in part

3 automatic switching RTU in part4 load profiling, analysis RTU in part, advanced meter capability5 video monitoring RTU in part6 Perform power quality analysis

remotelyRTU in part

7 active monitoring and control of capacitors

RTU in part, sensors in part

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THE COMMON INTERESTS Lower the wires cost

Objective Priority Application Primary product/technologyPrimaryLower the wires cost 1 monitor voltage real time at point of

servicevoltage sensor

2 monitor current real time at point of service

RTU in part; current & voltage sensors, in part

3 remote cut in/cut out RTU in part, advanced meter capability4 locate faults RTU & DFA in part5 identify fault type RTU & DFA in part, w time stamping & BPL6 real time theft detection RTU in part, advanced meter capability7 read meters remotely Advanced meter capability

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Criteria for Selection AND Funding:

– Commercial Prospect

– Project Timing – Near term (this budget cycle or next)

– A Common Interest

– Leverage (funding and intellectual resources )

– Quantifiable Benefits

– Focus (T&D) –Development and integration of projects applicability to

distribution systems

– Project Management Capability

– Contribution to Long Term Vision Strategy

– Exit Strategy for CCET

– IP clearly identified

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Projects in Progress

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Project #1. Use of Synchronized Sampling in Substations and System-wide Applications

Project #2. Electrical Power Distribution Feeder Remote Terminal Unit

Project #3. Demand Response Pilot

Projects in Progress

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Projects in Progress

Project # 1. Use of Synchronized Sampling in Substations and System-wide Applications

– Approved for CCET funding at April 3, 2006 Board

Meeting (match funding EPRI, DOE, ERCOT)

– Grant from Emerging Technology Funds Approved

in June 2007

– Two-year project

– IP agreement reached with TAMU (royalty sharing

and commercialization responsibility)

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Projects in Progress

Project # 2. Electrical Power Distribution Feeder Remote Terminal Unit

– Phase I Approved for CCET funding at April 18, 2007 Board Meeting (match funding Texas SECO)

– Design Specs for Prototype

– Phase II Prototype Testing (2008)

– Phase III Commercialization (2008-2009)

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Projects in Progress

Project # 3. Demand Response Pilot – Approved for CCET funding at February 21, 2007 Board

Meeting

– Residential Sector – 500 Participants in Dallas & Houston (Oncor and

CNP Service Areas)– This fall through 2008 summer season– Incentives offered by Retail Electric Providers– Enabled by BPL and Advanced Meter Deployment– M&V – As if Settled by ERCOT

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Projects in ProgressProject # 3. Demand Response Pilot

• Conduct a pilot to shift residential electric load off the daily peak

• Using advanced metering infrastructure and BPL communications

• Gauge customer reactions and acceptance

• Develop experience among market participants for residential demand response• TDUs – Transmission & Distribution Utilities• REPs – Retail Electric Providers• ERCOT

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Projects in Progress

• Our solutions are enabled with advanced sensors distributed throughout the network and with a high speed, symmetrical communications network

Low Voltage <10 Mbps

Medium Voltage < 20 Mbps

Fiber or Wireless Backhaul1 Gbps (fiber), 1-3 Mbps (wireless)

MANDWDM Multi Gbps

Carrier POP

Utility Substation(Operational & Non-

operational Data)

Metro Area Fiber Network

Managed In Home Network

Private IntranetUtility Partner

Real time control & verification

All meter data

Distribution Point

Current and voltage sensing at the transformer

CT Coupler & CT Bridge®

Current NodeCT Coupler &

CT Backhaul-Point

CT Coupler® & CT OTP™

BPL Network Architecture on Oncor System

Source: CURRENT Group LLC

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Projects in ProgressCURRENT/CSE HAN Architecture

CURRENT Look / Demand Response Software

CT Bridge

HomePlug Over LV Wiring

CURRENT BPL Network

BPL Smart Meter

DLC Switch

High speed connectivity to each electrical outlet through HomePlug standard and ability to add / adapt to evolving standards through gateways

PHEVBPL to HPCC / Other Gateway

In-home HAN Network with Flexibility to Enable Various Standards if Necessary

Solar Panel

Source: CURRENT Group LLC

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Projects in Progress

Ret ai l A

pp

s

Customer Self-Service

Utili ty A

pp

s

Portal

WaterHeater

LV 120V

Meter Relay

BPLRepeater

BPLRepeater

ZigbeeZigbee

Compressor

PoolPump

RF(Radio

Frequency)

RF(Radio

Frequency)

SmartThermostat

BPL Network Architecture on CNP System

Source: CenterPoint Energy.

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Projects in Progress

Project # 3. Demand Response Pilot: Participants & Supporters

American Electric PowerCenterPointOncorAustin Energy (coordinated activities)Direct EnergyReliant EnergyTXU EnergyCurrent GroupComvergeCorporate Systems Engineering

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Projects in ProgressProject # 3. Demand Response Pilot: Objectives

TDUs: Demonstrate that new advanced metering infrastructure (AMI) technologies can contribute to higher grid performance and lower demand when needed through consumer programs

Retail Electric Providers: Test marketing strategies to enroll consumers in programs, and determine if the customer experience will support demand side programs as a permanent part of their supply strategies

ERCOT: Gather data for settlement process and develop added flexibility for the electric system during peak demand periods

CCET: Establish role of research and development organization in introducing new technologies

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Demand Response Pilot: Scope of Pilot

• CenterPoint & Oncor Advanced Metering Infrastructures Using BPL

• 1,000 Customers 500 Each Area

• Loads To Be Controlled• Thermostat setbacks• HVAC compressors• Electric water heaters• Pool pumps

• TDU Energy Efficiency Program

• Market Transformation Program

• 3 Retail Electric Providers• Direct Energy• Reliant Energy• TXU Energy

• Technology & Service Vendors• CURRENT• Comverge

Rollout Late Summer & Fall 2007 Conti in 2008

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Projects in Progress Project # 3. Demand Response Pilot: The Players

Oncor Area Pilot

• Direct Energy• Reliant Energy• TXU Energy

• CURRENT• Corporate Systems

Engineering

CenterPoint Area Pilot

• Direct Energy• Reliant Energy• TXU Energy

• Comverge

ERCOT

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Projects in Progress Project # 3. Demand Response Pilot: Expectations

– Leverages the AMR/BPL roll-out

– REPs recruit their current customers from 10,000 - 18,000 customer target in each area

– REPs install two-way communicating thermostats and switches in 500 customers homes each area, via subcontracts with CURRENT & Comverge

• Devices are addressable through the Internet (IP)

• Load control signals to these devices via BPL

– Customers’ load is reduced by each REP when needed• By Oncor & CNP during peak months

• As desired by REP at anytime

– Oncor & CNP provide 15-minute meter reading data to ERCOT at the end of each month. Data will be used to validate peak demand reductions

Source: Oncor Electric Delivery

25

REPsCustomer

Relationship

Technology Vendors

Controllable Load

TDUs15-MinuteMeter DataR&D and

EE Funding

Communication Vendor

Vendors of Switches,

Thermostats

Installation Vendor/

Contractor

Vendor/ContractValidation

Customers

CCETProject

Management

ERCOTValidation

Settlement Protocol

Projects in Progress Project # 3. Demand Response Pilot: Relationships &

Responsibilities

15-Minute Meter Data

R&

D $

s

Ene

rgy

Effi

cien

cy $

s

kW R

educ

tions

Equipment

Services

R&D $s

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Projects in The Parking Lot

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Projects in The Parking Lot

Community Energy Storage – With Islanding Feature

– Sodium Sulfur (NAS) battery owned and operated by AEP

– Location in Corpus Christi – CCET added value

• Integration Studies

• Economic Impacts of Alternative Battery Applications – Issue: Storage May Be Considered Generation Under

Texas Law

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Projects in The Parking Lot

Current Sensor Development Project

– Build on company experience in developing

a fiber-optic-based voltage sensor

– Develop, test and commercialize fiber-optic-

based current sensor

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New Project Ideas

• Under Development – Stay tuned