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Iberdrola involvement leads to a Smart Grid for New York
By Phillip Bane
May 13, 2008 - 1:00:00 AM

New York shunning Smart Grid opportunity? In its zeal to protect customers in the short-term, New York’s Public Service Commission (NYPSC) may be missing an important opportunity to improve the grid in the long-term. Spain’s Iberdrola SA recently sought to purchase Energy East Corporation, which is based in Maine but has more then 1M customers in upstate New York. NYPSC has requested concessions, including the sale of Iberdrola’s wind generation business in New York. Ironically, Iberdrola had been planning to spend over $100M in wind farm investments in New York over the next three years. Equally important, Iberdrola has extensive experience integrating wind into the grid based on its massive European wind operations.

   QuickTake: Several studies (see links below) have recognized the importance of wind to the Northeast. NYPSC may be throwing away an important opportunity to use Iberdrola’s experience and money to deliver more renewables to the region.

   NYSERDA GE Energy Study (PDF)

   AWEA Highlights Wind Forecasting/NYISO Wants Wind Farms to Pay

   Albany Times Union story

   NYISO April 21 2008 FERC Filing

   NYISO April 3 2008 press release: amount of wind generation in application process

 

ONCOR purchase may signal challenges for BPL.  Maryland’s Current Group is the North American leader in broadband over powerline (BPL) and related Smart Grid applications. It often owns and operates Smart Grid networks under long-term service agreements with utilities. Now one Texas customer has decided to buy and operate the equipment on its own. Dallas-based Oncor, which operates the largest T&D network in Texas, has purchased the existing network and additional equipment for $90M. The network now serves one-sixth of Oncor’s territory; the utility may ultimately expand it to reach one-half.

   QuickTake: The press release indicates that Current’s products have provided real benefit to Oncor. If so, the sale may be a positive sign and the result of hard bargaining from Oncor’s new owner, buyout firm KKR. Current took much of the early financial risk. Now that the application has proven itself, KKR and Oncor may want to keep more of the value for themselves. If that’s the case, we may see other utilities turn away from long-term service agreements in favor of owning the assets themselves.

   But Utilipoint analyst Patti Harper-Slaboszewicz says the move came because “BPL is just not ready for primetime.” If that is the true scenario, then it underlines the growing realization that the communications piece is the weak link in the Smart Grid... and that BPL may not be ready yet to be the complete communications backbone.

   If you know more about the real situation, or you have an opinion on BPL, scroll to the bottom to blog your comments. 

   CURRENT GROUP press release

   Utilipoint article

 

CEC takes a hard look at Smart Grid. As part of a possible amendment to California’s Load Management Rules, the California Energy Commission’s Efficiency Committee is studying many facets of the Smart Grid, from advanced metering to demand response to time-of-use rates. On April 29, the Committee entertained presentations from (among others) Eric Lightner, the Director of the Federal Smart Grid Task Force and Terry Mohn, Vice Chairman of Gridwise Architecture Council and Technology Strategist from SDG&E.

   QuickTake: With California and Texas leading the Smart Grid charge, it makes sense to see what they are considering next. Click the link below to navigate to the presentations, including a valuable Smart Grid timeline from Terry Mohn.

   California Energy Commission Load Management Docket

 

BC transmission proposal gains business support. In an attempt to minimize “not-in-my-backyard” backlash, a coalition of pro-growth companies has released a preliminary study detailing the benefits of a proposed transmission line deep into British Columbia’s northwest region.  The study claims the Highway 37 power line could bring over $3.5B in capital investments by allowing eight mining projects to begin production. Those projects could create 2,000 jobs, generate over $300M in annual revenues, and provide more than $75M in annual taxes to government.

   QuickTake: Those who want to see more U.S. transmission could take a lesson from their Canadian neighbors. Proactive studies focusing on economic benefits can make it easier for projects to survive the inevitable protests.

   Northwest Power Line press release

 

GWAC at ConnectivityWeek. The GridWise Architecture Council (GWAC) has played a role in the expansion of the ConnectivityWeek trade show to become a nexus for automation integration engineers and business developers. Set for May 20 – 22 in Santa Clara, CA will have close to 140 speakers and 20 tracks GWAC members playing a visible role throughout. Besides participating in some of the keynote sessions, GWAC members will address the Energy Independence and Security Act, smart grid opportunities, and advanced electric metering implementations.  They will also be involved with sessions at the concurrent events, which include IndConn, HomeConn, BuilConnn, and DR-Expo.

   GWAC web site

   GWAC Interoperability Context-setting Framework v1.1 document (PDF)

 

PGE gets go-ahead for 850,000 smart meters. Despite opposition from ratepayer advocacy groups, Portland General Electric Company (PGE) has received approval from the Oregon Public Utility Commission (OPUC) to install more than 850,000 smart meters over the next two years. The new system will also support future demand response programs to reduce the need for new power plants. PGE says it will eventually provide customers with access to daily energy use information via the Web.

   QuickTake: Why is it getting easier to gain regulatory approval for smart meters? Because of payback numbers like these: PGE says the capital cost will be $135M, with annual operating savings of $18M starting in 2011 just from lower costs for meter reading and shutoffs. PGE expects even bigger savings when it adds demand response, which will reduce the need to build new power plants.

  Oregonian article

 

U.S. Smart Grid committee kicks off in May. A newly established Electricity Advisory Committee will counsel the U.S. Department of Energy, as mandated in the Energy Independence and Security Act of 2007. Thirty inaugural members – including some of the sectors top thought leaders -- will serve one- or two-year terms. They will advise on Smart Grid deployment, energy storage R&D, renewable energy integration, and new transmission infrastructure.

Linda Stuntz, who served as Deputy Secretary of Energy from 1992-1993 and held other senior positions in DOE from 1989-1992, will chair the Committee.  The Committee will hold its first meeting May 20, 2008 in Arlington, VA.

   QuickTake: It’s too early to know if the Committee will have any real power. But a quick glance at the membership (see below) reveals a group that is stacked with Smart Grid proponents. 

   DOE press release

 

  

Linda Stuntz, Committee Chair
Founding Partner
Stuntz, Davis & Staffier, P.C

Guido Bartels
General Manager
Global Energy and Utilities
IBM

 

Gerry Cauley
President and Chief Executive Officer
Southeast Electric Reliability Council

 

Ralph Cavanagh
Co-Director
Energy Program
Natural Defense Resources Council

 

Jose Delgado
President and Chief Executive Officer
American Transmission Company

 

The Honorable Jeanne Fox
President
New Jersey Board of Public Utilities

 

Joseph Garcia
President
National Congress of American Indians

 

Robert Gramlich
Policy Director
American Wind Energy Association

 

The Honorable Dian Grueneich
Commissioner
California Public Utilities Commission

 

Michael Heyeck
Senior Vice President
Transmission
American Electric Power

 

Hunter Hunt
President
Sharyland Utilities, LLP

 

Susan Kelly
Vice President
Policy Analysis and General Counsel
American Public Power Association

 

Irwin Kowenski
President
Occidental Energy Ventures Corporation

 

Barry Lawson
Manager
Power Delivery
National Rural Electric Cooperative Association

 

Yakout Mansour
President and Chief Executive Officer
California Independent System Operator

 

Ralph Masiello
Senior Vice President
KEMA

 

John McDonald
General Manager
Marketing, Transmission & Distribution
GE Energy

 

Steve Nadel
Executive Director
American Council for an Energy Efficiency Economy

 

David Nevius
Senior Vice President
North American Electric Reliability Corporation

 

Brad Roberts
Chairman
Energy Storage Association

 

Enrique Santacana
President and Chief Executive Officer and Region Manager
ABB North America, ABB, Inc.

 

The Honorable Tom Sloan
Representative
Kansas House of Representatives

 

The Honorable Barry Smitherman
Chairman
Texas Public Utilities Commission

 

Tom Standish
Senior Vice President and Group President
Regulated Operations
CenterPoint Energy

 

Robert Thomas
Professor
Electrical and
Computer Engineering
Cornell University

 

Paul Tonko
President and
Chief Executive Officer
New York State
Energy Research and Development Authority

 

Vicky Van Zandt
Senior Vice President
Transmission Business Line
Bonneville Power Administration

 

Bruce Walker
Senior Staff Attorney
Consolidated Edison of New York

 

Jonathan Weisgall
Vice President
Legislative and Regulatory Affairs
MidAmerican Energy

 

Malcolm Woolf
Director
Maryland Energy Administration

 

 

 

 

 


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