st Century Stepping into the 21 st Century Stepping into the 21 - PowerPoint PPT Presentation

st Century Stepping into the 21 st Century Stepping into the 21 Dwayne Turner Dwayne Turner Project Lead - - HAN HAN Project Lead Regulated Operations Regulated Operations Technology Technology NYSE:CNP www.CenterPointEnergy.com 1

CNP - Houston Metropolitan Area � 5,000 square mile service area 5,000 square mile service area � � Approximately 2.2 million electric and Approximately 2.2 million electric and � 1.1 million gas meters 1.1 million gas meters � Houston Electric Houston Electric � � Delivers 73.6 billion kilowatt hours Delivers 73.6 billion kilowatt hours � yearly for about 60 certified competitive yearly for about 60 certified competitive retailers retailers � Transmission and Distribution System Transmission and Distribution System � � 3,640 miles of transmission lines 3,640 miles of transmission lines � � 41,913 miles of distribution lines 41,913 miles of distribution lines � � 225 substations 225 substations � Electric Challenge: Electric Challenge: Effectively monitor and control millions of meters, line Effectively monitor and control millions of meters, line devices and miles of delivery wire which, if laid end to devices and miles of delivery wire which, if laid end to end, almost circle the earth twice around the equator end, almost circle the earth twice around the equator

Current Electric Utility Environment � Increase shareholder value � Increasing costs � Labor � Gas – Overall rates � Copper, aluminum, steel – Transformers / conductors � Vehicle Fuel � Taxes and franchise fees � Continued regulatory pressure to decrease rates � Regulatory reliability concerns / awareness � Northeast blackout � Hurricane impacts � Increasing Deregulated Texas Electric Market Demands on performance � Increased management / accounting controls – Sarbanes / Oxley � Aging workforce – both internal and field (Knowledge / Skill Transfer costs) � Electric Utility Energy Market Changes � Rapidly Changing Customer Needs The overall utility environment is demanding higher performance in an ever increasing cost environment. 3

“ Rapidly Changing Customer Needs ” “The greatest challenge facing electric distribution is responding to rapidly changing customer needs for electricity. Increased use of information technologies, computers, and consumer electronics has lowered the tolerance for outages, fluctuations in voltages and frequency levels, and other power quality disturbances. Source: “Grid 2030” A National Vision for Electricity’s Second 100 Years, p 7 Electro-Mechanical Digital Era Convergence Era Era Utility “Smart Grid” Customer strategies converge Customer expectations expectations on changing customer begin to expectations. change 1960’s 1970’s 1980’s 1990’s Today 4

CenterPoint Energy’s Electric Smart Grid The smart grid initiative focuses on installing the smart meter system as a first stage to allow consumers to begin taking advantage of the benefits of smart meters. The next stage is to focus on grid automation. DOE’s “Grid 2030” and EPRI’s IntelliGrid Framework CenterPoint Energy Smart grid outcomes Preventive Identify and repair intermittent grid Event Avoidance problems to minimize outages • Remote Load Profiling / Mgmt • Grid Event Diagnostics Self Healing • Advanced Data Analysis Grid • Grid Condition Sensing & Predictive Response Objectives Real Time Sensing Self-Healing Grid & Responding “The • Improved Asset Mgmt / Visibility self healing Quickly react to disturbances • Real time Grid Condition Monitoring grid is an to minimize impact • Automated Grid switching, etc. important • Meter as a Sensor building block • Transformer Load Mgmt of the smart • Condition Based Crew Dispatching power • Grid Event Detection and Location Continuous delivery system” Monitoring Advanced Meter System (AMS) Dynamically optimize the • Smart Meters performance and robustness • Meter Interrogation of the system • Meter Connect / Disconnect 5

Smart grid benefits Key Stakeholder Benefits • Enables more effective loading of utility assets (lines, transformers…) • Enables increased monitoring and diagnostics to enhance the life of Electric Utility utility assets • Improved line fault detection and diagnostics • Power quality and reliability improvements • Friendly access to detailed consumption information to make informed Consumers choices and enable faster transactions • Enables and promotes energy conservation • Expands retailer’s ability to offer new service offerings • Enables time-of-use rates and critical peak pricing Retailers • Establishes platform to offer future home appliance monitoring and control • Enables demand-side management • Facilitates integration of solar and wind generation into grid Environment • Promotes energy efficiency through immediate energy consumption awareness A smart grid will transform the way we buy, deliver and use electricity 6

Visibility Throughout the Grid is Key “Intelligence “ Intelligence” ” through through End End- -to to- -end Data Integration end Data Integration

Electric Market Benefits Automated Meter Management Utility Automation Sensing and Controls Intelligent Grid Utility Apps Retail Apps Portal Customer Self-Service Retail Opportunities Utility Benefits Energy Conservation Grid Diagnostics & Control Smart Home Support Automated Meter Reading Informed Choices Demand Response Support Improved Grid Efficiencies Increased Reliability Virtual Pre-payment Programs Improved Asset Management Information on Demand Dynamic Pricing Increased Customer Satisfaction

CNP Advanced Metering System Deployment…. Cost Effective Technology that Empowers Consumers and Retail Energy Providers ANSI C12.22 Data Transport ANSI C12.19 Data Tables Zigbee Enabled Devices BPL / Wireless Communication Home Area Network Retail Energy Fire Wall Provider AMM System Smart Thermostat ZigBee Portal End Customer ZigBee Access Appliance Controls Z i g B e e Customer Approved CiCo 3 rd Party Water Heater Advanced Metering System Regulated Environment Energy Conservation Retail Domain Demand Response Retail Environment

Smart Meter Deployment Major Program Components • Systems Integration - eMeter’s Energy IP Meter Data Management software • Wireless WAN Communications Network System – GE’s Mercury 3650 Radio • End Systems Management and Operations – IBM’s Tivoli • Smart Electric Meter – Itron OpenWay meters • User Portals – IBM’s WebSphere software • Texas Common Data Repository - Joint work with TX Electric Utilities • Home Area Network (HAN) – Wireless system incorporated into meter using Zigbee Smart Energy Profile 10

Smart Meter Deployment Main Deliverables � Meter Installs – Start March 2009 � March 2009 thru Dec 2009 – 145,000 � Years 2010 – 536,500 � Years 2011 thru 2013 – 558,000 � Year 2014 – 46,500 � Functionality (non-inclusive) � 15 Minute usage data � Remote connect / disconnect within one hour � Real time meter interrogation for power availability and register read � Enables HAN devices � Meter reports outages � Tamper notification � Full security for multiple access � Web access to usage data 11

2 Electric Network Design Wind Generation Internet Internet Web Web Services Services High Voltage Lines FIBER LINK Medium Voltage Line Wireless Tower Cell Relay RF Wireless Repeater Residential Consumer Local Home Smart Meter Area Network 12

Smart Meter Home Area Network Concept Consumers Zigbee Home Wireless Broadband Wireless Area REP’s Network Connection Devices CNP Consumer / REP Broadband Communication, Interface & Device Provided by Consumer or REP Basic HAN Device Provided by REP / Consumer - operates on CNP Communication Complex High End HAN Utility APPS (DSM, Basic Device Controls, Near Real Time Consumption Feedback…) Complexity of HAN Devices 13

Home Area Basic Network Consumers ZigBee Programmable Communicating Retail Energy Providers Thermostat HAN Traffic (Limit Five Devices) Internet ZigBee In Home Device Monitor (& Control) Network Smart Electric CenterPoint Energy Meter Load Control •Pool Pumps •Fans •Electric Water Heaters •Electric Heaters •Washer / Dryer 14

Interactive Grid Concept Consumers ZigBee Programmable Communicating Retail Energy Providers Thermostat Internet Consumer Smart Electric Meter ZigBee In Home Device Monitor Network (& Control) CenterPoint Energy Load Control •Pool Pumps •Fans Fuel Cells •Electric Water Heaters •Electric Heaters Solar Panels Distributed Generation PHEV •Washer / Dryer Micro Grid 15

Customer Self-Service Portal Utility Apps Retail Apps Portal Self Service

Advanced Metering Enables Consumer Choices and Control Customer Portals Enable Consumer Appliance Control In 1 Conjunction With Energy Management 1. By Telephone Examples: On Line Banking, Prescription Refills, EZ Tag renewals, etc. 2. By Simple Internet Portal Examples: Power To Choose, On Line Banking, Prescription Refills, etc. 2 & 3 3. Intelligent Grid enables consumer portal choices that allows analysis: - Web Data and Links - REP Rate Information and Links - Price Comparisons / Bill Projections - Energy Conservation Choices and Links - Services and/or products and Links