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Can you transform a utility by transforming its communications network?

That’s the belief at CenterPoint Energy, where a company-wide effort to implement an “Intelligent Utility Network” is seen as the core enabler for transforming the entire organization. In this article, I want to explain:

·         The four “customers” CenterPoint had to satisfy

·         The three stages of their communications overhaul

·         The four foundational technologies they needed in addition to meter data management

·         Where to get more information, including a free webinar Dec. 14 featuring Bob Frazier, Director of Technology for Houston Electric at CenterPoint Energy

Four tough “customers”

Smart Grid News Lessons from the Real World Webinar . Achieving the Ultimate Communications Network . Tuesday, Dec. 14   10:20 a.m. Pacific / 1:30 p.m. Eastern . Click to register >>

CenterPoint Energy is a combined gas and electric utility with more than 5 million customers overall. It has 2.4 million electricity customers, most of them in the storm-prone Houston area, where outage management is a Really Big Deal. The company is in the middle of switching entirely to smart meters. It began in March 2009 and hopes to finish in mid-2012.

As it launched, CenterPoint was faced with a major challenge -- the need to satisfy four different groups with four different motivations.

Customers wanted more control over energy consumption and tools to lower their bills. Regulators wanted lots of things, including security, privacy and cost-efficiency. Operations wanted to reduce manpower, not just for meter reading but for outage management as well. Operations also wanted to monitor system status in real time.

In Texas’ deregulated environment, CenterPoint had a fourth “customer” -- the retail providers who use CenterPoint's wires. They wanted a foundation on which to build innovative new services, such as prepayment and dynamic pricing.

If it hoped to satisfy all four groups, CenterPoint could not get by with a communications system that merely talked to the meters. CenterPoint needed a system that could serve all departments -- a cross-functional communications system that would be the foundation for new applications and new ways of doing business.

·         Grid management and optimization to increase reliability

·         Process automation to reduce outage time

·         Remote monitoring and diagnostics to extend asset life

·         Energy tools and services to help customers monitor and control their usage

Three typical stages

In other words, CenterPoint could not get by with a “basic” network suitable only for reading meters every once in a while. It needed a full-fledged, enterprise-level communications network. Fortunately, it’s possible to build out such a network in stages. The key is a long-range plan. In talking with folks from CenterPoint, and from IBM, the lead integrator, I’ve come to understand that these kinds of projects often go through three predictable stages:

1.     Strategy and assessment where you evaluate your needs, review your options, and create your conceptual architecture.

2.     Architecture and design where you create your roadmap, including technology, security, testing, and installation.

3.     Integration and deployment where you pilot, test, train, deploy, and build your ongoing maintenance plan.

Four foundational technologies

As CenterPoint planned its system, it became clear that it could not make do just with meter data management. A true, cross-functional, company-wide network also needs:

·         Performance management for optimizing the system

·         Fault management for monitoring events and alarms

·         Configuration management for ensuring consistency and security

·         Enrichment and automation for building next-generation services

These foundational systems have been employed for years if not decades in many other industries. The electric industry is just now beginning to tap their power. Although I don’t have space to delve into them here, I can point you other places for more information. For further overviews, you can download a PDF, or view a short video.  To drill down to the nitty gritty and ask questions of people involved, swing by the Dec. 14 Webinar on “Achieving the Ultimate Communications Network.”It will feature experts from CenterPoint and from IBM and it’s free to SGN readers by clicking the link above.

You might also be interested in …

Smart grid communications services need to be top-notch to support grid initiatives

Smart grid communications: IBM offers utilities an easier way to make the leap

Communication network architecture and design principles for smart grids

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