Texas grid saved by demand response...Florida outage was predictable...California proposes Smart Grid...

Texas grid saved by demand response. Several factors caused a drop in system frequency for the Texas grid on February 26, 2008. The Texas grid operator ERCOT utilized a back up demand response plan to resolve the problem. The factors causing a drop in frequency included a drop in wind energy production at the same time the evening electricity load was increasing, accompanied by multiple power providers falling below their scheduled energy production. In addition, the drop in wind energy led to some system constraints in moving power from the generation in the north zone to load in the west zone, resulting in limitations of balancing energy availability. The wind production dropped from over 1700 megawatts (MW) three hours before the event, down to 300 MW at the point emergency procedures were activated. The emergency demand response plan called Loads Acting as Resource (LAARs) added approximately 1,100 megawatts of resources within a 10-minute period. LAARs are typically large industrial and commercial users who are paid to curtail their electricity use as needed for reliable grid operation.

   QuickTake: Demand response is resolving several problems here, including the cost of fuel, additional generation and reliability. The Smart Grid at work.

   ERCOT Press Release

Florida outage was predictable. U.S News and World Report disclosed that the North American Electric Reliability Corporation (NERC) concluded in its winter assessment that Florida has less room for error than other states. The margin of available power for the Florida grid was lower than any of the other seven NERC regions by about ten percent. Florida also did not have the interconnection needed to bring in power from other states. NERC is using “synchro-phasors” to monitor the outage and predicted it would be able to analyze the outage quicker than in the past.

   QuickTake: Marianne Lavelle’s article is excellent and shows that while NERC can predict and analyze, it is up to the states to act – especially on intrastate grid infrastructure needs.

   Florida Power and Light Press Release

   NERC Press Release

   US News and World Report article

California proposes Smart Grid. Senator Padilla introduced legislation in the California Senate on February 21, 2008 that would require utilities with more then 10,000 connections to implement a Smart Grid deployment plan no later than June 30, 2009 and to issue an RFP no later than September 1, 2009. The legislation defines a Smart Grid as including “two-way communications”. The legislation allows for reasonable cost recovery for Smart Grid assets deployed. But most importantly, it allows for cost recovery of legacy non-Smart Grid assets made obsolete by Smart Grid deployment.

   QuickTake: With the passage of two Federal laws encouraging the Smart Grid (EPAct 2005 and EISA 2007) in two years, the Smart Grid mantle is for the states to pick up. SGN is just completing a roadmap for the State of Washington (Smarter Grid for Washington) and states such as California are moving ahead with legislation. SGN will focus a good portion of its 2008 reporting on which states act ... and which do not.

   California Senate Bill 1438 - Proposed Smart Grid Legislation

Pennsylvania should chose advanced meters over rate caps. Analyzing the electric markets in Pennsylvania, the Analysis Group advocates the deployment of advanced meters over continuing rate caps. Pennsylvania is considering extending rate caps, and the industry group representing regulated electric and natural gas energy distribution companies asked the Analyst Group to analyze alternatives. The report highlights the competing pressures faced by utilities and regulators: rising fossil fuel prices, need for adequate investor returns, and concerns about consumers paying more for electricity.

   QuickTake: The report reminds us of the often-overlooked argument for a Smart Grid – it introduces efficiencies and controls that could continue the price value offered by electricity.

   Pennsylvania's Electric Power Future: Trends and Guiding Principles (PDF)

Hawaii has opportunity to implement Smart Grid. DOE and Hawaii are increasing cooperation with the intent of decreasing Hawaii’s reliance on fossil fuels from 90% to 30% by 2030. Included in the effort will be:

• Designing cost-effective approaches for the exclusive use of renewable energy on smaller islands;
• Designing systems to improve stability of electric grids operating with variable generating sources, such as wind power plants on the islands of Hawaii and Maui;
• Minimizing energy use while maximizing energy efficiency and renewable energy technologies at new large military housing developments;
• Expanding Hawaii’s capability to use locally grown crops and byproducts for producing fuel and electricity; 
• Assisting in the development of comprehensive energy regulatory and policy frameworks for promoting clean energy technology use.

   QuickTake: Given Hawaii’s high cost per KWH, these efforts could also significantly reduce the cost of electricity and improve the state’s economy. Hawaii’s unique location on the Pacific rim will also give it the opportunity of working with other Pacific islands to improve energy efficiencies. SGN predicts that Hawaii could be one of the first states with a complete “end to end solution” if it keeps proceeding down this path.

   DOE Press Release

NERC -- grid improvements without building new transmission lines. In a recent speech, Rick Sergel, President of  North American Electric Reliability Corporation (NERC) discussed how phasor measurement, demand management and distributed generation storage could all be added to the grid without building another mile of transmission. He said this at a speech at the National Transmission Delivery Forum in Washington, D.C. the week of February 24. The Forum was held during National Association Regulatory Commissioners (NARUC) Winter Meetings. He also said NERC thought the grid was operating closer to the edge then ever before. This was before the Florida outage.

   QuickTake: The combination of regulators, utilities and vendors at NARUC’s Winter Meetings developed into an impressive dialog. Those interested in the Smart Grid should attend NARUC meetings.

   NERC News - February 2008 (PDF)