NV Energy rolls out first-ever HAN-based demand response program

By Jesse Berst

Utilities around the country will want to keep a close eye on the progress of NV Energy's smart grid project. As part of that larger effort, the Nevada utility is embarked on an intriguing approach to encourage customers to enroll in demand response and dynamic pricing. In a nutshell, it hopes to entice them with a feature-laden home energy management console.

To get an update on the overall progress of the statewide smart grid project, I spoke with Gary Smith, Director of Customer Energy Solutions.  Smith is responsible for the successful implementation of the core smart grid platforms. The goal is to raise customer service levels and provide new products and services to customers, while dramatically reducing operational costs. 

NV Energy serves 1.3 million electric meters (and 150,000 gas modules) over 54,000 square miles, serving electricity to over 90% of Nevada's 2.4 million inhabitants. Thanks to brutally hot summers, it suffers from severe summer peaks.  Hence, it is no coincidence that NV Energy is looking first to implement advanced demand response and dynamic pricing programs with its new infrastructure.

Statewide smart grid program

The statewide smart grid program began in 2010 and will wrap up in 2012. The project will ultimately total $303 million, of which $139 million was provided by a stimulus grant. The project integrates multiple technologies into a core platform that will be expanded over time:

• Communications networks (field area and home area networks)
• Advanced metering
• Meter data management
• Demand response management
• Customer portals
• Enterprise integration

The system uses communications and meters from Sensus, a meter data management system from Itron, a demand response management system from UISOL, and home area network technology from Control4. IBM WebSphere provides the underlying enterprise engine.

Progress

NV Energy will have completed meter installations for 750,000 customers by end of year 2011 and all major systems are live.  A customer portal displaying detailed billing information and energy information down to 15-minute intervals is online and available.  Employee acceptance testing is underway now for its next-generation demand response program.  Furthermore, the company is preparing to launch a sizable dynamic pricing pilot on January 1, 2013. 

Yet, systems and infrastructure are just part of the project.  Business readiness, customer service operations, change management, corporate communications, security, and regulatory and reporting will be every bit as important to success as software and hardware.

Smith believes "consumer confidence is our biggest challenge and our biggest opportunity." In fact, NV Energy was awarded an additional $1 million to study consumer confidence and report publicly.

Smith says one success secret was to be a fast follower. He cites smart grid pioneers such as San Diego Gas & Electric and Portland General Electric as "model advisors." Now Smith and his colleagues are sharing their results in turn, as a way to "pay it forward."

After studying the pioneers, NV Energy came up with its own six-step rollout plan:

1.     Security

2.     Privacy front/health

3.     Accuracy

4.     Deployment

5.     Verification

6.     Ownership

Next page: Plan details >>