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By Doug Peeples

SGN News Editor

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Smart Grid News spent a little face time with Federal Energy Regulatory Commission (FERC) Chairman Jon Wellinghoff when he was in Portland, Oregon, last week for the Smart Grid RoadShow. He shared some thoughts on the National Demand Response Action Plan and on transmission and grid security issues.

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Long-term goals for the National Demand Response Action Plan

"I think the long-term goals are communications. We need to ensure there's a communication component for consumers so they can be fully informed of the benefits of demand response and anticipation of demand response. Communications is the biggest key overall. Secondly, we're rolling out some tools with respect to that action plan as well that are not only for consumers, but distribution utilities and other stakeholders for them to be able to determine how demand response may play in markets and in doing so, what the benefits and effects may be. That's part of the communications component, but a more interactive process that allows consumers themselves to get engaged."

He commented that the consumer elements of the second component are "...a little bit down the road because initially we have to get a budget authorization — and we're working with DOE to do that." The funding, he said, would come from DOE, not FERC.

Smart grid enhancements needed to make demand response succeed

"We have to have things beyond advanced metering infrastructure for the consumer," Wellinghoff said. "We need information systems to provide consumers with the know how to modify loads to help the grid be more efficient." To that end, he said EVs can play an important role. "For example, electric vehicles can be used as a car and also be used as a grid service." The technologies to do that will need to be installed in EVs themselves to provide regulatory services, small increments of power injected into or taken out of the grid. That type of service now is provided by generators, he said, but can be accomplished in a more precise, pinpointed way by EVs or, for that matter, any appliance that can be turned on and off, like a water heater. It's a good deal for consumers, he added. "In essence, you can provide these services to the grid and get paid. Consumers will have to have these types of technologies to take advantage of demand response and maximize consumer benefit."

The chairman said the technology to have EVs double as grid service providers isn't pie in the sky. It's being tested in prototype form now; it's not hard to manufacture and probably would cost less than $50 per unit.

The transmission "problem"

Much has been said about how time-consuming, complicated and expensive the transmission siting/permitting process has become. When we asked Chairman Wellinghoff if there's an "ideal" solution, he commented that undergrounding transmission lines might qualify as an ideal, "but that's a long ways down the road." He did, however, offer his view of a solution. "Practically, we need a system where we (FERC) can have more potential federal backstop authority with siting problems." That option has been included in federal legislation introduced by U.S. Senator Jeff Bingaman (D-NM), chair of the Senate Committee on Energy and Natural Resources.

Grading utilities on their smart grid security performance

"I don't have a grade for them, but grid security needs to be enhanced. If there's an imminent threat right now, we (FERC) don't have sufficient authority to address it." He said there are a number of bills in Congress to remedy the situation, but he had a hard time assessing their chances for success. "I don't know. I've thought for the last two years the chances were good. I'm surprised every year that it doesn't get passed."

Chairman Wellinghoff is an energy law specialist and has been a member of FERC since 2006. He was selected as FERC chairman by President Obama in March 2009. The commission regulates wholesale electricity  transactions and interstate transmission and gas transport in the U.S.