for Stakeholder Review by Carolyn Moses June 2012 ERS2014@eia

1. Energy Efficiency/Demand Response/Smart Grid/Distribution System Reliability and Consumption of Electricity Changes Clearance 2014http://www.eia.gov/survey/meetings/elec-prelim0612/ for Stakeholder Review by Carolyn Moses June 2012 ERS2014@eia.gov

2. Redesigning EIA’s SG data collection:Research • 2010/2011 SG study: “the Smart Grid Task” • Meanwhile, EIA worked with stakeholder groups, and formerly provided comments • Considered retail customer programs that could be impacted by smart grid Major contributing stakeholders: U.S. Department of Energy, Office of Electricity Deliverability and Energy Reliability Lawrence Berkeley National Laboratory American Council for an Energy Efficiency Economy State and Local Energy Efficiency Action (SEE Action) Network Consortium for Energy Efficiency Federal Energy Regulatory Commission North East Energy Efficiency Partnerships Carolyn Moses Stakeholder Review June 2012

3. Form EIA-861, Annual Electric Power Industry Report, was reviewed • Advanced Metering, AMI and AMR • “Demand Side Management” • Demand response and energy efficiency programs • Savings (MW and MWh) • Expenditures • Supplemental information, e.g., number of participants • Net Metering • Green Pricing • Distributed/Dispersed Generation Carolyn Moses Stakeholder Review June 2012

4. Recently approved enhancements for SG data collection • Updates for 2010 Reporting Year: • Collect DSM information from all respondents, regardless of size • DSM data now include State- and sector-level breakdowns • Net metering data includes capacity and more technologies • Clarification of green pricing terms Advanced meter penetration by end-use sector percent of customers Residential Commercial Industrial All Sectors Source: U.S. Energy Information Administration, Form EIA-861, Annual Electric Power Industry Report Carolyn Moses Stakeholder Review June 2012

5. Redesigning EIA’s SG data collection:Background research results • Reports on: • Legislative and Regulatory Drivers for Retail End Use Customer Programs • Case Studies • Successful and Progressing Smart Grid Projects • Cancelled or Postponed Smart Grid Projects • International Smart Grid Deployments • Study of Current Data Collection Activities related to these topics • EIA made these research reports public Carolyn Moses Stakeholder Review June 2012

6. Research task: Sources for Legislative and Regulatory Proceedings • Common sources for demonstration projects, standards, legislation, policy, regulation, best practices, and other topics regarding smart grid: • Database of State Incentives for Renewable Energy (DSIRE) • American Council for an Energy-Efficient Economy (ACEEE) database • Smart Grid Information Clearinghouse (SGIC) website • Association for Demand Response and Smart Grid (ADS) report “State Legislative and Regulatory Policy Action Review: May 2010 – June 2011” • National Conference of State Legislatures (NCSL) “2011 Smart Grid Legislation” webpage Carolyn Moses Stakeholder Review June 2012

7. Research Results: Existing or Pending Legislative and Regulatory Activity for AMI/AMR Adopted AMI Plans & Requirements Pending AMI Requirements Notes: Adopted AMI Requirements: In addition to direct orders to deploy AMI, this includes orders from the state public utility commissions directing utilities to file deployment plans. Does not include regulation or laws that serve only to authorize or simply promote AMI deployment. The state of Maine also has pending legislation to place a temporary moratorium on deployment. Pending AMI Studies: Includes states in which the legislature or public utility commission is studying the effects of pilot programs and large scale deployments. This also includes the public utility commission decisions to study the effectiveness of requiring implementation of PURPA Standard 14 (Time-Based Metering and Communications) of EPAct 2005 on a utility-by-utility basis. Pending AMI Studies No Legislation/Regulation Source: SAIC Carolyn Moses Stakeholder Review June 2012

8. Research Results: Existing or Pending Legislative and Regulatory Activity for Smart Grid Program Types AMI, NM, DG, DP, EE AMI, NM, DG, EE AMI, DG, DP, EE AMI, NM, EE NM, DG, EE EE AMI = Advanced Metering Infrastructure, NM = Net Metering, DG = Distributed Generation, DP = Dynamic Pricing, EE = Energy Efficiency Source: SAIC Carolyn Moses Stakeholder Review June 2012

9. Research Task: U.S. Smart Grid Case Studies Carolyn Moses Stakeholder Review June 2012

10. Research Task: Key Drivers for Smart Grid Project Postponement or Cancellation Carolyn Moses Stakeholder Review June 2012

11. Research Task: International Programs: Drivers for Smart Grid Development Notes: •Government Policies/Mandates - The individual country government or region in which the country is a part (e.g., EU) has policies in place or has issued mandates specific to smart grid development. •Environmental Goals – The country has a strong focus on environment and climate goals and the advancement of smart grid initiatives is seen as a key factor in meeting those goals. •Electric Vehicle Integration – The integration of electric vehicles is seen as a major component of smart grid development in the country. •Renewable Integration – The country is focused on rapidly increasing the integration of intermittent renewable energy sources which is driving the need for an advanced grid infrastructure. •Reliability Concerns – The reliability of electric power supply to end use customers is a concern and smart grid development is seen as a main way to mitigate this. •Financial Incentives - The country is supplying a large amount of government subsidies targeted specifically to smart grid development. The country is ranked as one of the top ten in government investment on smart grid. •Energy Efficiency Goals – The country has a focus on the improvement of efficiency in the electric power sector and smart grid initiatives are seen as a way to accomplish this. •Increasing Demand – The country is seeing a rapid increase in energy demand due to increasing population or expanding industry. Smart grid development is seen as a primary means to manage the growing energy demand related to this growth. •Economic Competitiveness – The country views smart grid development as a key way to spur industry growth and improve global economic competitiveness. •Geographic Grid Constraints – Sources of energy supply and centers of energy consumption are separated by long geographic distances or challenging terrain putting strain on the energy delivery system. More effectively managing the energy delivery through smart grid upgrades is seen as a key method of alleviating this issue. •Energy Security Goals – Improving energy security and reducing imports is a key smart grid driver in these countries. •Energy Theft Reduction – Energy theft is widespread and the development of a smart grid, especially smart meters, is viewed as a way to manage these non-technical losses. Carolyn Moses Stakeholder Review June 2012

12. Redesigning EIA’s SG data collection:Proposed survey changes • Summary • Programs that are highly evolved based on the 2011 clearance, or 2010 reporting year • Green Pricing • Net Metering – Remove 2 MW Cap • Distributed and Dispersed Generation – Add for residential sector, exclude net metered generation • Redesign existing Demand-Side Management data collection • For revenues, customer counts and sales – add - Are the rates decoupled and is the revenue adjustment automatic or does it require a rate making proceeding • For Energy Efficiency to reflect life-cycle effects • Extract average annual characteristics for economic analysis Carolyn Moses Stakeholder Review June 2012

13. Redesigning EIA’s SG data collection:Proposed survey changes • Summary continued • New Data Collection • Dynamic pricing programs or time-based rate programs • Direct load control • Customer-side systems like non-billing communications • Distribution system information • Infrastructure inventory • Reliability metrics • Automation • Enhanced definitions and examples Carolyn Moses Stakeholder Review June 2012

14. Redesigning EIA’s SG data collection:Key concepts or definition changes • Energy Efficiency Programs • Gross Energy • versus Net Energy Savings (MWh) • Incremental Annual Savings and Incremental Life Cycle Savings • versus Annualized Incremental Effects and Actual Annual Effects • Reporting Year Incremental Costs and Incremental Life Cycle Costs • versus Annual Costs • Reduction in cost categories, Customer Incentives Payments and all other costs • versus direct, indirect, and incentive payment costs • Remove questions about verification and reporting on another company’s form and • add question asking for website address to their energy efficiency reports. Carolyn Moses Stakeholder Review June 2012

15. Redesigning EIA’s SG data collection:Key concepts or definition changes • Energy Efficiency Programs • Include new concept Weighed Average Life in Years and provide a worksheet to calculate this number • Based on the Northeast Energy Efficiency Partners (NEEP) standards • Provides critical economic evaluation data Carolyn Moses Stakeholder Review June 2012

16. Redesigning EIA’s SG data collection:Key concepts or definition changes • Demand Response or Load Management • Remove Potential Peak Reduction • Collect Reporting Year Savings and Reporting Year Costs • versus Annualized Incremental Effects and Actual Annual Effects and Annual Costs • Report Customer Incentive Payments and all other costs • versus Direct, indirect, and incentive payments • Note indirect costs were never broken down between EE and DR Carolyn Moses Stakeholder Review June 2012

17. Redesigning EIA’s SG data collection:Key concepts and definition changes • New Data Collection: • Dynamic pricing programs or time-based rate programs • Provide the number of customers you have in these programs and check which of the following programs you have • Time-of-Use Pricing • Real-time Pricing • Variable Peak Pricing • Critical Peak Pricing • Critical Peak Rebate • versus if you have any of these programs provide the number of customers Carolyn Moses Stakeholder Review June 2012

18. Redesigning EIA’s SG data collection:Key concepts and definition changes • New Data Collection: • For AMI and AMR meters • Number of customers with direct load control • Number of customers for whom service provider engages in non-billings electronic communication and • Frequency of this communication • Number of customers that can access this information at least daily Carolyn Moses Stakeholder Review June 2012

19. Redesigning EIA’s SG data collection:Key concepts or definition changes • New Data Collection: • Distribution System Infrastructure inventory • Number of Distribution Circuits • Number of DCs using automation • Type of automation, yes/no • switches, VAR control, equipment monitoring • Number of customer and load served by distribution circuits with automation Carolyn Moses Stakeholder Review June 2012

20. Redesigning EIA’s DR&SG data collection:Key concepts or definition changes • New Data Collection: • Reliability metrics- will need to report every year • SAIDI and SAIFI, either by IEEE 1366-2003 standard or by a nonstandard method, if you already calculate it that way • Both with and without Major Events included • Both with and without loss of supply (probably a transmission organization question) • Results in 3 SAIDI and 3 SAIFI calculations • Total number of customers used to calculate SAIDI and SAIFI Carolyn Moses Stakeholder Review June 2012

21. Redesigning EIA’s DR&SG data collection:Key concepts or definition changes • New Data Collection: • Reliability metrics- changes every infrequently, probably just report the first year and then review in subsequent years • Percent of system that is Urban, Suburban, and Rural • What voltages to you consider as distribution system • Do you have an automated Outage Management System (OMS) • Do you include inactive accounts • Do you include non-customer meters • How do you define momentary interruptions, less than 1 minute, less than 5 minutes or other • How do you define major events, five options • Do you receive information about an outage before the customer reports it? Carolyn Moses Stakeholder Review June 2012