MADRIWorkingGroupMeeting#45– March7,2017Washington,DCBryanNicholson,GridWise Alliance

1800MStreet,NW,Suite#400S,Washington,DC20036|Phone:(202)530-9740|Fax:202-530-0659|info@gridwise.org

GridModernizationIndex(GMI)Overview

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PresentationOutline• AboutGridWise Alliance• GMI-3FindingsandFeedback• What’snewforGMI-4• GMI-4ProjectSchedule• Questions

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AboutGridWiseAlliance

• Electricutilities• Informationandcommunicationstechnologyequipmentandserviceproviders• NationalLaboratories• Academicinstitutions• RegionalTransmissionOperators(RTOs),IndependentSystemOperators(ISOs),andmore.

WhoWeAre:Broadanddiversestakeholdersthatdesign,buildandoperatetheelectricgrid.

• InfluencefederalpoliciesandR&Dprioritiesbyinformingkeystakeholders• Influencestateinitiativesandemergingpoliciesbyinformingkeystakeholders• Influencedevelopmentandinvestmentdecisionsbyinformingkeystakeholders• Providecontinuedthoughtleadershipandguidanceonindustrybestpractices

Since2003,theAlliancehasbeenattheforefrontofeducatinglegislatorsandregulatorsaboutthecriticalneedtomodernizeournation’selectricitysystem.

WhatWeDo:Connectingthebestandbrightestinfluencerscommittedtomodernizingthegrid.

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2017Priorities

• 4thAnnualGridModernizationIndex(GMI)• ThoughtleadershipthroughAllianceSpeakersBureau• Contenttohighlightleadingindustrypractices• Strategicpartnershipswithstakeholdergroups

• Sustainmembershipengagement&growth• DeliverAlliancebrandedcollateralandstrengthenedcommunicationschannels

• Ensureorganizationalgovernance

• Federalenergylegislation• Leveragingkeypolicypositions• Statepolicyengagementplan• Stakeholdereducation&outreach

• TopicalWorkshops,Forums,Webinars• Whitepapersonemergingissues• EngagewithU.S.DOEGridModernizationInitiative(GMI)&GridModernizationLabConsortium(GMLC)

Policy: Outreach:

Technical: Operations:

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• Policiesaremadebythepeoplewhoparticipate.TheGridWise Allianceactivelyinvolvesitsmembers,allowingthemtobeashaperofpolicy.FederalandstatepolicywillcontinuetoplayasignificantroleinthewayinwhichgridmodernizationisimplementedacrosstheU.S.–weneedyourinput.

• TheimpactofyourmembershipdollarsismultipliedmanytimesoverwhencombinedwiththecontributionsoftheotherAlliancemembers.YourinvestmentintheAlliancewillhaveamajorimpactonyourbusiness– investtoday.

• Policymakersviewbroadindustrycooperationasbeneficial.TheAlliance’scross-industrycompositionandconsensusviewhavemadetheGridWise AllianceavaluedresourceonCapitolHillandwithfederalandstateagencies;affordingourmemberstheopportunitytoinfluencethefuturebyeducatingtheinfluencers– helpamplifyourmessage.

• TheconveningpoweroftheAlliancebringstogetherthetopexpertsfromacrosstheindustrytoworkonspecialinitiativesthatwillmorefullyinformthegriddebateandadvancegridmodernization– shareyoursuccessstories.

JoinUsin2017

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Sharpenyourexpertise…• Networkwithleadingindustrypeers,exchangebestpractices,andadvancethoughtleadership

Positionyourorganizationforsuccess…• Receive timelymemberupdatesandpolicysummaries• Participate instrategicstakeholdereducationsessions,hillbriefings,andlegislativemeetings

• Gainintelligence onstate’sleadinggridmodernizationpracticesInfluenceourenergyfuture…• Engagewithindustrystakeholdersatworkshopsandothereventstoshapethechangingenergyecosystem

Accessmemberservicesandengagementopportunities…• Join industryexpertstoexploretechnicalandpolicyissuesatworkshopsandwebinars

• Receive timelyupdatesaboutpolicydevelopmentsandAllianceactivities

MembershipBenefits

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• Easytounderstandstaterankingofgridmodernizationprogress

• Analyzesall50U.S.statesandtheDistrictofColumbia

• Usesthreecategories:StateSupport,CustomerEngagement,andGridOperations

• Informationgatheredbyadiverseprojectteam consistingof50+representativesfromutilities,consultants,andNGOs

• Informationsuppliedbyrepresentativesfromutilities,PUCs,SEOsandotherscloselytrackinglocalmarkets

GridModernizationIndex(GMI)Overview

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GMI-3OverallResultsTotalOutof100AvailablePoints

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GMI-3Leaders• CA,IL,andTXretainthetopspots• Thespreadbetweenthetopstatesandlowerstatesremainssignificant

o 28pointspreadexistsbetweenleadingCaliforniaand5thplaceDelaware

o Top10stateswithanaveragescore23pointshigherthanthenext10states

o 9stateswithascorehigherthan50(outofapossible100)

• Neighboringmid-AtlanticstatesMaryland,Delaware,andWashingtonD.C.tookspots4to6• OregonandGeorgiaeachjoinedthetop10

The10Highest-ScoringStates

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RisersandFallersStatesThatRoseorFellby10Pointsor10RankingPlaces

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StateSupportResultsTotalOutof30AvailablePoints

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StateSupportLeadersTop10States:PerformanceinSelectIndicators

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CustomerEngagementResultsTotalOutof30AvailablePoints

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CustomerEngagementLeadersTop10States:PerformanceinSelectIndicators

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GridOperationsResultsTotalOutof36AvailablePoints

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GridOperationsLeadersTop10States:PerformanceinSelectIndicators

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• CALIFORNIA nowrequiresitsmajorinvestorownedutilitiestosubmitdistributedresourceplans

• NEWYORK’slandmarkREVproceedingrecognizestheneedforadvancedmeteringfunctionalityasitworkstoupdateitsenergysector

• MASSACHUSETTS requireditsutilitiestosubmitgridmodernizationplans- proposalsincludesmartmeters,timeofusepricing,andDERmanagementsystems.

• MINNESOTA hasfinishedPhaseIofitse21Initiative,whichaimstohelputilitiesrecognizethenewrolethatcustomersplay.

• HAWAIIincreaseditsRPSto100%by2045.ItsutilitieshavestruggledtointegratemoresolarPV(aswellasstorageandotherDERs).

GridModernizationMajorDevelopmentsStatesTakingInnovativeAction

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• Widegapingridmodernizationprogress betweenstates• Driversforgridmodernizationdiffer fromplacetoplace• Funding continuestobeachallenge• GrowthofDERs to increase significantly• SmartDSMprograms willhelputilities monetizevalue• Morecustomeroutreachandeducation needed

KeyThemesintheGMI-3

MeanaveragesofGMIstatescoresorganizedbyeachcategoryandoverallinbucketsof10.

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4th GridModernizationIndex(GMI)AdvisoryCommitteeParticipants• AmericanPublicPowerAssociation(APPA)• EdisonElectricInstitute(EEI)• NationalAssociationofRegulatoryUtilityCommissioners(NARUC)• NationalAssociationofStateEnergyOfficials(NASEO)• NationalConferenceofStateLegislatures(NCSL)• NationalGovernorsAssociation(NGA)• NationalRuralElectricCooperativeAssociation(NRECA)• NorthCarolinaCleanEnergyTechnologyCenter

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4th GridModernizationIndex(GMI-4):AddressingGMI-3FeedbackFeedbackonGMI-3Process• Researchinstrument:toolarge,coveringtoomanyareasofexpertise• DifficulttofindandengagetherightrespondentsinsomecasesKeyrefinementstoresearchinstrumentforGMI-4include:• Refined,clarifiedandre-organizedresearchquestions

• SeparatedGridOpsquestionsintothreesectionstobettertargetdistinctrespondents:AMI,Distribution,andTransmission

• MappedassetsinDistributionandTransmissionsectionstothefunctionalityenabledratherkeepthemasstand-alonequestions

• Createdclearanddiscretelevelsforextentofsystemcoverage(i.e.,1-9%,10-49%,50-89%,90-100%)bysmartgridfunctionality ratherthanopen-endeddatafield

• Allowrespondentstoself-selectquestionareasbasedonexpertise• ImplementGMIDataCollectionPortal:web-basedplatformtoimprovedatacollection

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4th GridModernizationIndex(GMI)TheGMIDataCollectionPortalandourProjectTeamTheGMIDataCollectionPortalwasdevelopedtofacilitatedatacollection:• QuicklybroadenouttheGMIrespondentpool• Allowparallelcompletionofresearchquestionswithinanorganizationratherthansequentially• FacilitatetrackingofprogressandidentificationofgapsbeforedeadlinesexpireAlliancemembersplayacriticalroletomakingtheportal-basedapproachasuccess:• Coordinatewithrespondents(orrespondentorganizations’pointsofcontact)andcommunicate

weblinkandprovidethecompanionExcelreferencedocument• HelpAlliancestaffteamreviewdatareceivedfromeachStateandaggregateresults• Helpfillinthegapsbyconductingfollow-upcallswithrespondentsorthroughresearchusing

DSIRE,EIA,AEE,andotherresources(includingState-specificwebsites).

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4th GridModernizationIndex(GMI-4)ProjectPlanSchedule

Task 2016 2017Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June

MAJORMILESTONES

PrepareandReleaseInitialFindingsatNARUCWinterMeeting

ReleaseReport4/30

PromoWebinar5/15

Promoteat NARUCReg.Events

Task1– DevelopStreamlinedApproach

Task2– Manage Project

Task3– CollectInformation

Task4– FinalizeDataInputs andScoring

Task5– PerformStatisticalAnalysis

Task6– WriteandLayOutFinalReport

Task7– MarketandPublicizeGMI

ProposedMeetingsWithProjectTeam Bi-monthly ProjectTeamCallsbeginninginNovemberthroughJune

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4th GridModernizationIndex(GMI)NextSteps• Work with designated state representatives to fill in data gaps and finalizeportal responses - March 17 target completion date

• Deliver data to Accenture to execute statistical analysis• Deliver all necessary data and findings to Clean Edge for report production• Communicate launch plan and provide marketing collateral to Alliancemembers and Advisory Committee members

• GMI-4 Final Report Launch – April 30 target completion date• Findings reporting provided at NARUC Regional Meetings

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Questions?

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ThankYou

• SteveHauser,CEOshauser@gridwise.org

• BryanNicholson,ExecutiveDirectorbnicholson@gridwise.org

• LadeeneFreimuth,PolicyDirectorlfreimuth@gridwise.org

• RichieO’Neill,OperationsDirectorroneill@gridwise.org