Energy Utilities Approaches to Grid Modernization

Successful Grid Modernization Programs

There are a number of energy utilities that have adopted a holistic approach to Grid Modernization that ensures the network is properly refurbished and hardened, thus ensuring that the full benefits of SmartGrid (e.g. grid automation) are realized by the vast majority of their customers. In so doing, these utilities have been able to meet the near-term mandates in providing safe and reliable electric service. The following examples illustrate the effort that this type of program calls for, and demonstrate the performance levels that can be expected.

We Energies-Power of the Future Plan

In September 2000 We Energies of Milwaukee, Wisconsin announced its Power the Future plan that served as a comprehensive approach to address electricity supply and reliability issues. Their 10-year plan expands power production to meet growing demand, improves existing power plants for increased efficiency and reduced emissions, and upgrades the power delivery network. We Energies (NYSE: WEC) serves approximately 1.1 million electric customers in Wisconsin and Michigan’s Upper Peninsula and serves customers in a range of urban, suburban, ex-urban, and rural areas over a wide geographic area. The plan has received broad support from regulators, customer groups, organized labor, and many other public and private sector state leaders.

In 2002, We Energies began experiencing improved electric reliability as a result of implementing the first phase of its Power the Future plan. The energy delivery-related scope and impact of the Power the Future plan has included:

• A $2.7 billion investment over 10+ years in the transmission and distribution infrastructure. The planning and progress of these investments are reported approximately bi-annually to the Public Service Commission of Wisconsin (PSCW).
• For the fifth time in the past six years, We Energies has been named the winner of the Reliability  One award in the Midwest region for the superior reliability of its electric system. The Reliability One award is given annually by PA Consulting Group to the utilities that have excelled in delivering reliable electric service to their customers.
• We Energies long-term ambitions for reliability are aimed at satisfying the needs of advanced industries. As noted by a We Energies principal engineer – “We did some self-examination and found that the practical limit of U.S. distribution systems is four nines of quality. Customers equate reliability to electric service availability. Radial feeder electric distribution systems deliver levels of perceived reliability that are typically in the range of 99.98 percent available service. That equates to about 100 minutes of annual outage time on a given system, as indicated by what’s called SAIDI (system average interruption duration index). Our goal is to deliver less than one minute of qualified outages to customers per year, or 99.9998 percent available service.”

We Energies focus on network modernization has led to a variety of leading initiatives. These have included:

• Developing a consortium of utilities and vendors called DV2010, LLC (Distribution Vision 2010) in Milwaukee, Wisconsin working to advance Distribution Automation to next level of development. DV2010’s focus is on developing the electric distribution system to eventually become so automated that it virtually corrects itself without human intervention. The basic idea is to take high-speed, fiber-optic based communications systems, overlay them on the distribution grid, and develop intelligent devices that can do the switching and adjustments remotely, using more than one pathway for the electricity — in effect “dynamic re-closing.”
• Implementing the Premium Operating District (POD) – a modernized network configuration that includes a level of automated switching designed to make the district virtually outage proof. The system uses three different feeder lines to the district, thus incorporating the concept of a “matrix” so that if one feeder is interrupted, the system automatically switches to another. These Premium Operating Districts are now in service on the We Energies system.

The overall performance of the We Energies energy delivery network has improved significantly (25-35%) since the outset of this initiative.

Note – The PSCW reporting standards include all major storms (in contrast to the storm exclusion principles adopted in other jurisdictions). We Energies 2005 performance is considered an extreme anomaly because it included data from a severe storm that occurred in the rural Iron Range Area on November 15, 2005 affecting over 15,000 customers and nine (9) ATC transmission system outages occurred in the Iron Range Area during 2005 affecting over 42,000 customers.

KCP&L-Comprehensive Energy Plan

In 2005 Kansas City Power & Light (KCP&L) began implementing its Comprehensive Energy Plan (CEP), a long term plan to address its region’s power supply and energy delivery needs. At the time of the CEP, KCP&L served approximately 500,000 customers in Kansas and Missouri. As a result of its July 2008 acquisition of the electric utility systems of Aquila, Inc. (i.e. the former Missouri Public Service and St. Joseph Power & Light operating companies) KCP&L now serves over 830,000 customers.

The CEP energy delivery-related elements include a focus on sustaining its top reliability performance by constructing, replacing, and/or upgrading existing transmission and distribution facilities to accommodate new generation and incorporating new technologies for faster diagnosis and repair of service interruptions. KCP&L has a long-term record in outstanding reliability and the recipient of the PA Consulting National Reliability Excellence Award.

KCP&L has had a long-term commitment to an asset management program that has (among other elements) substantially eliminated antiquated 4.8kV assets and has established strategic networking of portions of the company’s radial distribution system. To maintain high reliability and customer satisfaction levels, the CEP provides for accelerated investments in T&D infrastructure in three areas: distribution assets, transmission assets, and distribution automation. Specifically, they focus on:

• Distribution Assets – including a distribution system inventory and condition assessment, proactive URD cable replacement, URD cable injection, and programs to address poor performing pocket areas.
• Transmission Assets – including T&D circuit breaker replacement, RTU replacement, wood pole and structural replacements, transmission disconnect switch replacement, and shield wire replacement.
• Distribution Automation – including circuit fault indicators, underground network automation, relay automation, dynamic voltage control, 34-kV automated switching, and rural power quality.
• An Integrated Circuit of the Future (ICF) program as part of the CEP has also been established to provide proof of concept for its new technologies. The ICF project is a test-bed used prior to large scale deployment of key distribution automation technologies. Each component needs to successfully pass a series of practical and technical requirements and must support a strong business case. After meeting these requisites, the design is a candidate for system side deployment.

KCP&L owns and operates a significant 34-kV sub-transmission system in rural districts. Due to the age of this infrastructure and the length of these circuits, the 34-to-12-kV substations serving customer load were subject to more frequent and longer outages than in the metropolitan areas. Planned switching of these circuits is costly due to the distance between switching points; moreover KCP&L has experienced equipment malfunctions operating existing manual gang operated switches on this system due to the age of the equipment and challenges to perform in-service maintenance on these switches. As part of this program, KCP&L is in the process of implementing a major initiative to install distribution automation on these circuits and substations with complete deployment realized by 2009.

The overall performance of the KCP&L energy grid has been outstanding; indeed, the focus by KCP&L has been on sustaining (as opposed to improving) its high reliability.