Jim Robb
Senior Vice President, Strategic Planning & Environmental Affairs
Northeast Utilities
2012 Summer Seminar
August 5-7, 2012
Smart Energy vs. Dumb Utility
2 © 2012 Electric Power Research Institute, Inc. All rights reserved.
The Good Old Days…
CORE
BUSINESS
• Manage the energy delivery system
• Safe, reliable cost-effective
• Facilitate “social/energy” policy
• Environmental priorities/
externalities
• Energy Efficiency Programs
• Etc.
3 © 2012 Electric Power Research Institute, Inc. All rights reserved.
Who Moved My Cheese?
CORE
BUSINESS
• Manage the energy delivery system
• Safe, reliable cost-effective
• Facilitate “social/energy” policy
• Environmental priorities/
externalities
• Energy Efficiency Programs
• Etc.
4 © 2012 Electric Power Research Institute, Inc. All rights reserved.
• Manage the energy delivery system
• Safe, reliable cost-effective
• Facilitate “social/energy” policy
• Environmental priorities/
externalities
• Energy Efficiency Programs
• Etc.
EXPANDING
EXPECTATIONS
• Increasing Reliability
Expectations
• Transportation Fuel
Delivery
• Energy Usage
Information
• Product/Service
options
• Information services
• Carbon Footprint
reductions
• Customer interaction
technology
• Etc…
Future Shock: Emerging Realities
CORE
BUSINESS
5 © 2012 Electric Power Research Institute, Inc. All rights reserved.
• Manage the energy delivery system
• Safe, reliable cost-effective
• Facilitate “social/energy” policy
• Environmental priorities/
externalities
• Energy Efficiency Programs
• Etc.
EXPANDING
EXPECTATIONS
• Increasing Reliability
Expectations
• Transportation Fuel
Delivery
• Energy Usage
Information
• Product/Service
options
• Information services
• Carbon Footprint
reductions
• Customer interaction
technology
• Etc…
The Management Challenge
CORE
BUSINESS
• Limited visibility into
changes
• Pace of change
• Lack of control
• Long vs. short PLCs
• Regulatory realities
6 © 2012 Electric Power Research Institute, Inc. All rights reserved.
NU’s Wakeup Call
• 30+ inches of heavy wet snow on October 29
• Full tree canopy
• Multiple municipal elections on November 1
• Ever growing estimates of trouble spots
• ~ 60% of customer base out
• 11-12 day restoration with 4x normal complement of crews
7 © 2012 Electric Power Research Institute, Inc. All rights reserved.
“Back to the Future …”
• Digitized commerce – can’t
transact
• Digitized entertainment – can’t
keep kids occupied
• Digitized communications (VOIP
vs. “analog land line) – can’t
communicate
• ATMs, digital fuel pumps, etc. –
can’t get money, gasoline, etc…
“A long time ago…”
• Blankets and fireplace for
warmth
• Read/play Monopoly by
candlelight
• Cook on the grill
Impact of Prolonged Outage
8 © 2012 Electric Power Research Institute, Inc. All rights reserved.
Smart Energy – Back to Basics?
• Vegetation
management
• Undergrounding
• Back up generators
• Planning and drilling
• Crew management
• IVR/Call Center
• Clear accurate billing
Reliab
ilit
y & Resiliency
Restoration
Cu
sto
mer
& Marketer Interactions
FUTURE
STATE
9 © 2012 Electric Power Research Institute, Inc. All rights reserved.
Or forward to a Brave New World
(that has such technology in it)?
• Vegetation
management
• Undergrounding
• Back up generators
• Town Center Micro-Grids
• Self-healing/Fault
Location, Isolation, and
Restoration
• Planning and drilling
• Crew management
• Outage detection
• RT damage reports
• RT Restoration estimates
• Damage Forecasting
• State/Municipal
communications
• IVR/Call Center
• Clear accurate billing
• Remote load control
• Accessible usage data
• Standard Open architecture
• Cyber-secure
Reliab
ilit
y & Resiliency
Restoration
Cu
sto
mer
& Marketer Interactions
FUTURE
STATE
10 © 2012 Electric Power Research Institute, Inc. All rights reserved.
Two Policy/Strategy Issues:
• Vegetation
management
• Undergrounding
• Back up generators
• Planning and drilling
• Crew management
• Outage detection
• RT damage reports
• RT Restoration estimates
• Damage Forecasting
• State/Municipal
communications
• IVR/Call Center
• Clear accurate billing
• Remote load control
• Accessible usage data
• Standard Open architecture
• Cyber-secure
Relia
bili
ty &
Resiliency
Restoration
Custo
mer
& Marketer Interactions
FUTURE
STATE
Good Spinach... … or technology
enablement? • Town Center Micro-Grids
• Self-healing/fault Location
isolation and restoration
AND… at what cost?
11 © 2012 Electric Power Research Institute, Inc. All rights reserved.
What’s a reasonable price to pay?
JBRobb “Experience”
• College in Midwest early
80’s (PSI customer)
• Adult “formative” years in SF
(PG&E customer “pre- and
post- Diablo Canyon)
Cents/kwh
10-12
<9
>13
“A Bargain”
“Expensive”
“About Right”