Energy Central EnergyPulse Home
Home Subscribe Login Contribute to Energy Pulse Advertise on Energy Pulse About Energy Pulse Feedback to Energy Pulse
Search Articles:   
  You are here: Home > Grid Operations > Article Display


Free Newsletter
Sign up today for your free subscription to the EnergyPulse Weekly Update - delivered directly to your e-mail box.
e-mail:


 

Communicating Smart Meter Value

Sep 9 2010 - 2010-01-01 12:00:00 - Your City

If you are involved in Management or Customer Service and are responsible for communicating the value of smart meters to your utility customers, you don’t want to miss this online discussion - Communicating Smart Meter Value.  more...

Social Media: The new frontier in recruiting, communications and marketing

Sep 13 2010 - 2010-01-01 12:00:00 - Your City

Join social media mavens Matthew Burks and Amanda Shewmake as they provide an insider's perspective on how HR, communications and marketing professionals in energy companies can harness the power of social media to be more effective and productive. more...

Eliminating Obstacles and Delivering the Benefits of the Smart Grid - IBM's Optimized Energy Value Chain (OEVC)

Sep 14 2010 - 2010-01-01 12:00:00 - Your City

The convergence of power and information technologies in the smart grid has created opportunities for finer grained and broader controls of energy flows. These opportunities can improve electric service in multiple dimensions: lower cost, greater reliability, greater customer satisfaction, and more...

Achieving Operational Excellence - What to Consider Before Implementing or Upgrading Your Distribution Management Solutions

Sep 16 2010 - 2010-01-01 12:00:00 - Your City

Significant cost over runs. Changing business requirements. A well thought out plan is essential. Attend this free webcast discussion to hear inside hear three experts in utility operations discuss what utilities need to evaluate when they are considering upgrading or more...

Outsmarting the Smart Grid: IT, Security and Communication Infrastructure  Challenges & Opportunities for Utilities

Sep 21 2010 - 2010-01-01 12:00:00 - Your City

The smart grid is shifting the playing field for utilities. And when the game changes, it pays to be prepared. A nimble solutions partner can help you design the solutions that keep operations on track, even as new challenges come more...

1st CSP Today Concentrated Solar Thermal Power Summit India

Sep 7 2010 - Sep 8 2010 - New Delhi India

Deliver a profitable, productive and commercially successful large scale CSP business in India. Building on the success of past events in USA, Europe & MENA, CSP Today brings to New Delhi the most relevant international experience for the concentrated solar more...

Offshore Wind Energy in North America's Great Lakes Conference

Sep 9 2010 - Sep 10 2010 - Toronto

Two day conference that tackles the most important challenges. A blend of European knowledge from the companies who have been installing offshore wind turbines for the last decade alongside local state governing bodies and leading project developers. Permitting, securing long more...

Autovation 2010

Sep 12 2010 - Sep 15 2010 - Austin, TX - USA

Autovation 2010 is a not-to-miss educational forum that will attract utility executives from around the world looking for new ways to optimize their operations through automation technologies. more...

Global Sustainable Bioenergy North American Convention

Sep 14 2010 - Sep 16 2010 - Minneapolis, MN - USA

The North American convention provides a remarkable opportunity to play a part in guiding renewable energy policy for the 21st century. Attendees will create a resolution that, along with similar resolutions already drafted on four other continents, will help set more...

GridWise Global Forum

Sep 21 2010 - Sep 23 2010 - Washington, DC - USA

Hosted by the GridWise(R) Alliance and the U.S. Department of Energy, the GridWise Global Forum will convene thought leaders from the highest levels of government, business, NGOS, and academia from around the world to discuss the ultimate enabling potential of more...

1. Intro to Nat Gas Trading & Hedging 2. Option Applications in Energy

Sep 20 2010 - Sep 23 2010 - Houston, TX - USA

Introduction to Natural Gas Trading & Hedging - This program provides a comprehensive understanding of the structures that underlie Natural Gas trading. Beyond Essentials: Option Applications in Energy - This course provides a solid practical and conceptual (non-quantitative) understanding of more...

Electric Business Understanding Seminar

Sep 20 2010 - Sep 21 2010 - Houston, TX - USA

Electric Business Understanding provides a comprehensive overview of the electric industry. Position yourself for career advancement by gaining a solid understanding of how the electric business works including key physical, market, and regulatory aspects and how market participants navigate this more...

Electric Market Dynamics Seminar

Sep 22 2010 - Sep 23 2010 - Houston, TX - USA

Electric Market Dynamics offers participants an in-depth understanding of North American electric markets and how they function. Enhance your career by furthering your knowledge of market structures, pricing mechanisms, services offered in markets, and how various participants use the markets more...

Gas and Electric Business Understanding Seminar

Oct 5 2010 - Oct 6 2010 - Los Angeles, CA - USA

Gas and Electric Business Understanding provides a comprehensive overview of the natural gas and electric industries. Position yourself for career success by gaining a solid understanding of how each business works, including key physical, market and regulatory aspects, as well more...

Energy Central
Power Network




Grid Operations


We know you have something to say!
There is an immediate need for articles on the hot topics in the Power Industry! EnergyPulse, like no other publication, also provides a means for our readers to immediately interact with experts like you.
 
Contribute Today!
Please view our Author Guidelines and send submissions to the editor.

Click For More Articles on Grid Operations
 
FERC's Smart Grid Policy Proposal Sure to Stimulate Discussion
4.9.09   Kate Rowland, Managing Editor, Intelligent Utility Magazine, Energy Central

Article Viewed 3746 Times
1 Comment
E-mail Article Printer Friendly
 
  • Email This Author
  • Comment On Article
  • About The Author
  • More Articles By This Author

    Issued March 19, the Federal Energy Regulatory Commission's proposed smart grid policy statement and action plan is designed to provide "guidance to inform the development of a smarter grid for the Nation's electric transmission system focusing on the development of key standards to achieve interoperability of smart grid devices and systems."

    As well, the policy statement proposes an interim rate policy until interoperability standards are adopted. "Smart grid investments that demonstrate system security and compliance with Commission-approved Reliability Standards, the ability to be upgraded, and other specified criteria will be eligible for timely rate recovery and other rate treatments." It is hoped that the proposed new rate policy will further encourage development of smart grid systems.

    According to the policy statement: "The Commission's interest and responsibilities in this area derive from its authority over the rates, terms and conditions of transmission and wholesale sales in interstate commerce, its responsibility for approving and enforcing mandatory reliability standards for the bulk-power system in the United States, and a recently enacted law requiring the Commission to adopt interoperability standards and protocols necessary to ensure smart-grid functionality and interoperability in the interstate transmission of electric power and in regional and wholesale electricity markets... The Commission intends to use its authority, in coordination and cooperation with other governmental entities, to help achieve interoperability in a timely manner."

    There is keen interest in prioritizing the development of key interoperability standards, and in a timely fashion. With the rush to integrate renewable resources into the grid, FERC felt it imperative to propose a targeted acceleration of certain aspects of the interoperability standards process. "The purpose of the policy statement the Commission ultimately adopts will be to prioritize the development of key interoperability standards, provide guidance to the electric industry regarding the need for full cybersecurity for Smart Grid projects, and provide an interim rate policy under which jurisdictional public utilities may seek to recover the costs of Smart Grid deployments before relevant standards are adopted through a Commission rulemaking.

    "Specifically, development of interoperability standards for inter-system communication, system security, wide-area situational awareness, demand response, electric storage, and electric transportation should be prioritized and accelerated."

    Further, FERC said, it recognizes that a key consideration of public utilities in deciding whether or not to invest in smart grid technologies may lie in the stranded costs associated with legacy systems that are replaced by smart grid equipment. It proposes, therefore, to set a rate policy for the interim period until final interoperability standards are adopted, in order to offer some rate certainty to public utilities going ahead with implementation, and guidance for jurisdictional entities.

    Specifically, comments are being sought from the industry in the following areas, as well as "other steps the Commission can take to encourage and expedite the development of interoperability standards and implementation of Smart Grid projects":

    • Determining "sufficient concensus". Section 1305(a) of the Energy Independence and Security Act of 2007 (EISA) directs the National Institute of Standards and Technology (NIST) to coordinate the development of a framework that includes protocols and model standards for information management to achieve interoperability of smart grid devices and systems. When FERC is satisfied that NIST's work has led to "sufficient consensus" on interoperability standards, it is then directed by EISA to institute a rulemaking proceeding to "adopt such standards and protocols as may be necessary to insure smart-grid functionality and interoperability in interstate transmission of electric power, and regional and wholesale electricity markets." This may take the form of a number of rulemakings, as individual or suites of standards achieve sufficient consensus.

      FERC, therefore, is looking for comments on what factors it should consider in determining when NIST's work has led to "sufficient consensus", as well as comments and ideas on how to identify and state the adoption of successive waves of interoperability standards. Finally, it also seeks comment as to whether there should be a formal process for parties to seek FERC guidance "if negotiations on certain interoperability standards reach an impasse."

    • Cross-cutting issues of cybersecurity and the further development of common information models. While the EISA contains no specific deadline for the creation of interoperability standards, but simply provides for a consensus-based process, there is an increasing sense of urgency both within the government and within industry for a) the development of standards for, and b) the deployment of smart grid technologies generally. With billions of dollars set aside in the American Recovery and Reinvestment Act of 2009 (ARRA) for upgraded, smart transmission lines and smart grid projects, the ticking clock on spending makes the need for standards all that more urgent.

      The fact that a smarter grid would allow two-way communication between the electric system and a much larger number of devices located outside of controlled utility environments commands that even more attention be given to the development of cybersecurity standards," FERC notes in its proposed policy. "Therefore, the Commission proposes to advise the Institute to undertake the necessary steps to assure that each standard and protocol that is developed as part of the Institute's interoperability framework is consistent with the overarching cybersecurity and reliability standards approved by the Commission pursuant to section 215 of the FPA. The Commission proposes to make consistency with cybersecurity and reliability standards a precondition to its adoption of Smart Grid standards. We seek comment on these proposals."

      Further, it notes: "In order to fully incorporate measures to protect against cyber and physical security threats, we also propose to advise the Institute to take the necessary steps to assure that its process for the development of any interoperability standards and protocols leaves no gaps in cyber or physical security unfilled. We are concerned that this could be a particular problem where separate groups of interested industry members independently develop and advocate select standards or protocols for the Institute's consideration. We seek comment on this proposal."

      Finally, FERC also seeks comment on inter-system communication and coordination standards and issues, in order to move forward with a targeted acceleration of certain aspects of the interoperability standards process.

    Specifically, FERC proposes to prioritize the development of standards for two cross-cutting issues and four key grid functionalities involving interfaces between utilities [e.g., regional transmission organizations (RTOs) to utilities outside the RTO], utilities and customers, and utilities and other systems (e.g., energy management systems). "These cross-cutting issues and key functionalities are proposed as the first level of work to be accomplished in the interoperability standards-setting process," it says. "The two cross-cutting issues are first, cybersecurity (and physical security to protect equipment that can give access to Smart Grid operations) and second, a common semantic framework and software models for enabling effective communication and coordination at the boundaries of utility systems where these interface with customer and other systems (and hence provide 'inter-system' functionality). The four key grid functionalities are wide-area situational awareness, demand response, electric storage, and electric transportation."

    The entire proposed policy statement and action plan has been published on the FERC website, and in the Federal Register. Comments are due by May 10. FERC has also noted it may convene a technical conference for further public input on these issues.

    For information on purchasing reprints of this article, contact Tim Tobeck ttobeck@energycentral.com.
    Copyright 2010 CyberTech, Inc.
     
    Contact The Author
    Email the author
    Phone: 250-227-8938
    E-mail Article Printer Friendly
     
  • Click Here For More Articles on Grid Operations


  • Click Here For More Articles By Kate Rowland
  • Do you agree or disagree with this article? Send in your own article.

     

    Readers Comments

    Date Comment
    Herschel Specter
    4.14.09
    As I understand it, the energy bill recenly drafted in the House of Representatives by Congressmen Markey and Waxman would give much more authority to FERC so that it could force states to run transmission lines through them, whether they liked it or not. This is to enable wind power sites, which are often far from the load centers, to get their electricity to a unified electrical grid that is supposed to go coast to coast. First we had subsidies on wind power, then mandates on how much renewable energy by a date certain, and now the proposed heavy hand of the federal government overruling the wishes of the people in states, many of whom would not appreciably benefit from these proposed and expensive power lines.

    Even this might be acceptable, if the American people knew and accepted how much all of this would cost them and if the 99% reliability of our national electrical system that we now enjoy would not be compromised. The National Renewable Energy Lab (NREL) has stated that if 20% of the US electricity came from wind power,it would cost $1.1 trillion dollars plus another $80 billion for 15,0000 miles of transmission line. NREL also notes that even with our 99% reliability the US still has losses of $119 to $188 billion dollars a year due to power outages and power quality issues.

    No one should support the Markey/ Waxman draft bill until it requires FERC to make a determination that forcing a state to run transmission lines on its land would only be allowed if, as a minimum, the 99% reliability system reliability is maintained and that the price of the additional electricity is no more than 50% higher than present costs of electricity, without state or federal subsidies. That's what democracy is supposed to be all about.

    Herschel Specter

    Add your comments:
    Please log in to leave a comment!

    Top

        Home | Register | Subscribe | Contribute | Advertise | About Us | Feedback
       Copyright © 2002-2010, CyberTech, Inc. - All rights reserved. Read our Terms of Service.