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Utility Restructuring Weekly Update

January 22, 1999/0 Comments/in Research, UFTO Notes /by beardsworth

A reminder that this weekly service is available from DOE. Anyone can request to be added to the email distribution list. Notice the availability on DOE’s website.

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Subject: Utility Restructuring Weekly Update
Date: Fri, 22 Jan 1999 16:46:48 -0500
From: Jennifer Bergman
To: Ericka Goss

January 22, 1999
Utility Restructuring Weekly Update

This weekly information has been compiled by Energetics, Inc. for the U.S. Department of Energy. Questions or comments on subscribing to the weekly should be directed to either Jennifer Bergman, Energetics, jbergman@energeticsinc.com, or Diane Pirkey, U.S. Department of Energy, DIANE.PIRKEY@HQ.DOE.GOV. All other inquiries should be directed to the specific organization in question.

The Weekly Update is available on the Internet at
http://www.eren.doe.gov/utilities/utilityres/weekly.html

National/Federal
State legislators from around the country are expressing their opposition to Congressional activity that will preempt state efforts in the area of electric industry restructuring. Speaking on behalf of the National Conference of State Legislatures, . . . . . .

WEBSITES:
Yahoo Utilities Company News: http://biz.yahoo.com
PMA Daily Power Report: http://www.powermarketers.com
EnergyOnline: http://www.energyonline.com

****************************
Jennifer Bergman
Energetics, Incorporated
501 School Street, SW
Suite 500
Washington, DC 20024
(202)479-2748 ext. 108
Fax (202)479-0229

Ultra-Net Satellite SCADA Communications Network

January 21, 1999/0 Comments/in Research, UFTO Notes /by beardsworth

ULTRA-NETª is a satellite communications system which provides reliable dedicated links between a company’s control centers and remote data acquisition, monitoring and control points. ULTRA-NETª improves reliability by providing a low cost, real time, monitoring of critical operating parameters, and enabling the automation of systems that are dispersed over a wide geographical area. It also can be used to augment or replace older communication systems (which can help justify the cost of automation projects).

Ultra-Net has already been demonstrated and proven in full scale use for over 3 years in SCADA applications by Southern California Edison (SCE), linking nearly 200 remote terminals at 150 substations to central control centers (equipment monitoring, load switching, etc.). There is a great deal of operational data available.

The system is not affected by terrain variations such as mountains, hills and river valleys that impede radio and microwave communications. It eliminates the need to acquire and access heavily congested radio frequencies, and it eliminates the high cost of leased telephone lines and the cost of substation ground fault isolation. ULTRA-NETä systems can be installed in environmentally sensitive areas that can not be accessed for the installation of landlines, radio, or microwave towers. The documented avoided cost savings at SCE were in excess of five times the cost of equipment and labor of alternative technologies.

Another positive feature of ULTRA-NETª is that high wind, ice and snow loading do not adversely affect its performance (in marked contrast to ground phone lines). Nor are systems affected by flooding, as are buried lines and vaults. SCE’s system has survived Santa Ana windstorms with wind speeds over 100 mph, with no effect on performance.

Ultra-Net is designed for very specific niche applications — SCADA systems in electric, gas and water utilities, and oil and gas pipelines. It likewise is well suited for distribution automation and weather or hydrological data collection.

The small earth station units are self-contained, and are easily installed with mimimal site impact and with direct interface to existing user equipment , with only DC power and RS-232 data cables as the only connections. The system uses commercial geosynchronous satellites, so it provides uninterrupted dedicated communications, polling every remote unit every 4 seconds.

Edison Technology Solutions (ETS) is offering the system commercially, and will develop the requirements and cost proposal, do the installation, and provide service and support.

Contact: Jerry Barich, 626.815.0503, jbarich@edisontec.com
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Business Sensitive–UFTO Notes are for the exclusive use of UFTO
client companies and their staff, except as authorized in writing.

CURC Annual Conf. 11/98

November 23, 1998/0 Comments/in Research, UFTO Notes /by beardsworth

California Utility Research Council
Annual Technology Conference
November 2-4, 1998
Costa Mesa CA

Background Information —————–

——- Who is CURC? ——-
CURC (California Utility Research Council) was established by the California Legislature (Public Utilities Code, Sections 9201-9203) in 1984 to:

– Promote consistency of utility RD&D programs with state energy policy
– Prevent unnecessary duplication of research efforts
– Encourage the free exchange of information related to utility RD&D projects where appropriate
– Identify opportunities for research coordination between energy utilities and for joint funding of RD&D projects of benefit to California ratepayers

CURC Board includes representatives from the CPUC, CEC, PG&E, SDG&E, SCE, and SoCalGas. [Recently, a new category of “Associate Member” was created, and includes CIEE, CMUA, EPRI, GRI, LADWP and SMUD.]
Website —- http://www.curc.org

——- Restructuring and Public Interest R&D ——-
Restructuring of the electric and natural gas industries is having a dramatic effect on the energy RD&D landscape in California. Previously, most of this work was funded by ratepayers and managed by the four largest investor-owned California utilities: PG&E, SCE, SDG&E, and SoCalGas. Supplemental funding for California RD&D interests was provided by GRI, EPRI, and Federal Agencies.

Restructuring is providing new opportunities for collaboration of energy RD&D efforts. Recent California legislation (AB1890) has made available $62.5 million per year for public interest energy RD&D to be managed by the California Energy Commission (CEC). Utilities will continue to fund ratepayer RD&D activities, although on a lesser scale. It is also expected that there will be an increasing interest in shareholder-funded technologies by energy companies seeking a competitive advantage. Finally, restructuring will have a direct effect on programs offered by EPRI, GRI, and perhaps even Federal Agencies.

——- Purpose ——
– To help attendees better understand how all of the energy RD&D pieces fit together in a restructured environment.
– To provide participants with an overview of technology trends and energy RD&D collaboration activities which benefit California.
– A first hand look at how the California PIER (Public Interest Energy Research), Renewables, and Energy Efficiency programs are being implemented.
– Opportunities to network directly with peers and funding agencies.

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Highlights from the Conference

– Keynote : “California’s Electric Restructuring: a Stunning but Secret Success”
Phil Romero, Chief Economist, Office of the Governor, outlined how rapidly the transformation of California’s electric industry has proceeded and the significant benefits already being realized. He summarized the “deal” struck between all players on stranded assets and rates (recently upheld by the defeat of Proposition 9), and replied to some of the criticisms — there are consumer choice, numerous competitors, and longer term benefits of a renewed generation base, new energy services, and the chance for California to be a winner in world energy service markets.
One surprise was the high price paid in auctions of the fossil power plants. On average, they have sold for 2.5 times more than anticipated. The CEC had expected a “fire” sale. Book value seems to be irrelevant–the underlying issue seems to be the cost to rebuild at a greenfield sight.
California needs to prepare for a population that is expected to double within the next 25 years.

– Keynote: Telecomm RD&D Transition
Peter Magill, Bell Labs reviewed what happened to Bell Labs as AT&T was broken up in the 1980’s, and how the R&D evolved. Under the regulated monopoly, R&D was decoupled from the needs of the business. Interest and dollars dipped and work became much more targeted under the local operating companies and long distance provider. Now Lucent, the new owner of Bell Labs, dedicates 1% of revenues to an agile and strategic research program, and regards it as critical to their success. He noted the complex array of technologies and markets that are converging now in the telecomm industry, and outlined the opportunities for energy utilities to play. In particular, they have no legacy networks to overcome, and have the chance to leapfrog technologically, avoiding a “me-too” approach.

— National R&D Needs and Programs

– EPRI – an overview of EPRI’s continuing process of providing more options, and exploring new ways of providing services.

– GRI – FY 1999 R&D Plan is on their website (www.gri.org). GRI has just done a major reorganization with business units focused on customer segments, and offering staff services on a competitive basis. GRI’s traditional funding mechanisms are disappearing, so they are looking at new business models.

– Livermore and Idaho National Labs – representatives presented overviews of their programs. LLNL sees their advanced computing for weapons modeling as a capability that can make contributions in energy, and expect hydrogen to play a major role in the future. INEEL offers capabilities in environmental management and systems integration, and Lockheed Martin has strong incentives to work with industry and commercialize technology under its management contract.

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— California Utility R&D Perspective

1998 is the last year of ratepayer funded research by electric utilities in California, as the transition proceeds (with the CEC public interest programs–see below). Corporate R&D departments have been disbanded, and the function decentralized completely into separate business units, for each to pursue according to their own priorities. Human and financial resources are declining dramatically, and there is little or no coordination among departments.

PG&E – In 1999, R&D funding will come from foreign utilities, the CEC PIER program, co-funding, and department operating funds. R&D must compete with maintenance projects for funding, and is expected to be about 1/4 of 1998 levels. Current programs of interest include: Information technology, Environmental impacts and compliance, Real time data for customer decisions, Life extension, Pipeline rehabilitation, Fitness for service–better utilization of assets, and Underground construction activities. Needs include: Reducing the time to bring technologies to the field, Producing products in a shorter timeframe, Looking to others for fundamental research. PG&E expressed concern over loss of in-house expertise. There is a need to collaborate and work with other utilities/research organizations toward reaching common goals.

San Diego Gas & Electric – R&D funding is now focused on technology development and application for core business. A four to five year time horizon for a new product is too long. Programs must focus on the near term – one to two years. SDG&E has interest in programs that increase system reliability, improves performance, and minimizes service.

So Cal Edison – In 1997, SCE spent $30 million in R&D related activities. The 1998 budget was $1.5 million. It has disbanded its research department. Research activities are being conducted by the business units and Edison Technology Solutions, which is a new unregulated unit competing for R&D funding, notably the CEC PIER program. With strong affiliate transaction restrictions in effect, ETS and SCE must keep very separate, and carefully handle any contacts between them.

Sacramento Municipal Utility District – Unlike the IOUs, SMUD’s R&D programs are stable. They are spending 3.7% of their revenues on R&D. SMUD is interested in photovoltaics for parking lots and rooftops and renewable programs. SMUD’s R&D funds are committed, but they welcome collaborations. They will use their funds, others will have to use their funds. Current areas of interest include: landfill gas, fuel cells, microturbines, and wind.

All the utilities represented at this meeting are looking for third party funding—federal, state, partnering arrangements. Utilities can supply test beds for new products and systems, and are interested in collaborative research.

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— Environmental R&D

California EPA – is a family of regulatory bodies, including the Air Resources and Water Resources Boards. The Innovative Clean Air Technology Program (ICAT) has been set up to help new technologies thru the “valley of death” by providing funding, guidance, and certification for new technologies trying to become commercial.

South Coast Air Quality Management District – In So. Calif, 88% of NOx and two-thirds of VOC emissions from mobile sources. The SCAQM spends nearly $5 Million per year to advance new technology solutions to air quality–priorities include fuel cells, electric/hybrid vehicles, and stationery VOC source reduction. They look for cost-sharing, and will accept unsolicited sole-source proposals.

CEC Environmental R&D – The CEC has its own role in supporting energy related environmental R&D focused on improved siting and regulatory decisionmaking. Topics include upper atmosphere NOx transport modeling, avian mortality and wind turbines, and power plant water sources.

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CEC – Public Interest Energy Research (PIER)

(Extensive information is available at http://www.energy.ca.gov/research

Questions regarding PIER should be directed to Mike Batham
of the Commission’s Energy Development Division at:
916-654-4548, MBatham@energy.state.ca.us

PIER is for “public interest” not for regulated utility or competitive research, though it is recognized that the boundary is fuzzy.

Stage I is nearly complete, and Stage II is about to start.

In Stage I, three 1998 solicitations have been completed, with 83 projects approved for funding totaling $53 million through June 1999 (FY).
– One-time Transition Project Funding, for up to one year to continue ongoing (ratepayer-funded) public interest energy RD&D projects
– 1st General Solicitation funding, for projects in Environmental, Advanced Generation and Renewable Research
– 2nd General Solicitation funding, in End Use Efficiency and Strategic Research

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UFTO has an electronic version of the complete listing of these projects that was handed out at the conference. It is available on the UFTO website, or on request. Send an email to pierprojects@ufto.com
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Other accomplishments include establishment of the “Small Grants” program ( $2.5 Million for grants up to $75K each for concept development–announcement due soon, with grants early in ’99). Also, membership in seven EPRI targets has been approved ($1.5 Million).

PIER has a14 member Policy Advisory Council with representation of industry, universities, government and environmental groups.

Stage II Funding is organized around six Program Areas, with a staff team for each area. The team leaders, which in some cases are interim at this time, are listed in the respective program area.

– Industrial/Agricultural/Water — John Sugar, 916-654-4563
– Residential and Commercial Buildings — Nancy Jenkins, 916-654-4739
– Energy-Related Environmental Research — Bob Eller, 916-654-4930
– Environmentally-Preferred Adv. Gen. — Mike Batham, 916-654-4548
– Renewables — George Simons, 916-654-4659
– Strategic — Tom Tanton, 916-654-4930

Each team has compiled a list of high-level issues, based on input from focus groups, the Policy Advisory Council, and the Commissioners. These draft issues are still a work-in-progress as the teams proceed with the next steps: (1) identification of program goals and objectives; (2) prioritization of technical issues corresponding to the high-level issues; and (3) funding options and strategies. (Note: The complete document is available online and as an Acrobat pdf file).

CEC claims it has “streamlined” the contracting process. The Commissioner admitted that the contracts offered previously were difficult to accept. A team has recently reviewed and modified the terms and conditions (T&C’s). The T&C’s now used are in the best interests of the program—not the State’s. Modifications will be very difficult to get in the next solicitation. It was strongly recommended that the T&Cs be reviewed before preparing a bid, and be ready to accept them if selected for an award.

The next solicitation opportunity is tentatively scheduled to be released late winter (likely in February). A series of solicitations will address clearly defined target areas. There is no policy in place for reviewing, approving, or handling unsolicited proposals, and they are distinctly not encouraged. Would-be applicants probably would do well to contact CEC program staff informally to explore their ideas.

Criteria include: eligible organizations, public interest benefits in California, technical merit, credible team and schedule, policy fit — scores by independent evaluators are weighted, added and ranked. Matching funds can be zero if benefits are 100% public–must increase in proportion to non-public benefits.

NOTE: A proposal does not have to be submitted by a California company, nor does it have to be performed in California. There is no “favorable weighting” for California companies in the PIER program. The program, however, must clearly benefit California rate payers. The program requires matching funds. There will be a PIER workshop in January or February.

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The Other Public Benefit Programs

There are two other major “public benefit” programs that were established under AB1890 restructuring that represent a much larger $ resource than PIER — Renewable Technology, and Energy Efficiency. Presentations and discussions explored how these programs bridge to or overlap with PIER.

— Renewable Technology Program (www.energy.ca.gov/renewables)

AB1890 provided for $540 Million ( of the “Public Good Charge” to be collected from the IOUs) to support existing, new and emerging technologies, and SB90 codified recommended allocation and distribution mechanisms. Basically, there are four separate “accounts” (existing, emerging and new technologies, and consumer-side), all of which provide some form of “buy-down” for renewable generation, with no participation in any form of RD&D. The purpose is to encourage the renewables industry to accept and promote new renewable technology.

— Energy Efficiency (www.cbee.org)

The Calif. Board for Energy Efficiency (CBEE) is a Board established by the CPUC to administer these funds–roughly 10 times the budget for PIER. Under “standard performance contracts, payments are made for measurable energy savings achieved by installation of specific energy-efficiency projects. Savings must be measured and installations verified under standardized program rules. There are also “market transformation” programs providing commercial downstream incentives, LED traffic signal standards, commercial surveys, and a demonstration programs for a premium efficiency relocatable classroom. Nearly 1/3 of the funds will go towards residential programs, e.g. contractor training and labeling programs. Contact Mark Thayer, 619-594-5510

— Bridging PIER (R&D) and the Renewables/Efficiency Programs
California Institute for Energy Efficiency http://eetd.lbl.gov/CIEE/
(CIEE plans, funds and manages a statewide energy R&D program)

CIEE outlined some their own programs, and offered ideas to bridge the gaps between R&D and these two programs. PIER can’t support demonstrations unless they “add to the knowledge”, and the CBEE needs more latitude for emerging technology. PIER needs to awareness of market needs. There is a need to prove cost effectiveness to market participants, etc.

An important element for bridging the gap is the multi-year program strategy that enables orderly transitions from R&D to demos to commercial use. Multi year projects should have advisory committees, direct involvement by market representatives, and deliberate plans for disseminating results in appropriate venues. CIEE also recommends that research be done directly on market processes themselves–barriers, incentives and decisionmaking.
Contact: Jim Cole, CIEE Director, 510-486-5380, jwcole@lbl.gov

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Calif. Trade and Commerce Agency, Office of Strategic Technology (OST)
Pasadena CA http://goldstrike.net

Steve Jarvis, 626-568-9437, sjarvis@goldstrike.com
Richard Keeler, ” ”

This agency provides resources, support, funding and access to various state and federal programs to help California companies to be successful and compete globally. OST partners with other organizations that seek to help the formation of partnerships and enable industry to move forward. A total investment 5 year investment approaching $1 Billion has been realized, leveraging funds from federal, state and private sources.

Companies seeking help must meet strict criteria as businesses (i.e. not just technology), much as venture capital investors require.

OST programs include the Calif Technology Investment Partnership, Regional Technology Alliances, Calif. Manufacturing Technology Program, Calif. Information Infrastructure, and NSF Research Centers.

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Other agenda items included:

A series of presentations of a sample of PIER funded research projects:
– Waste water and agricultural technology demonstrations
– Monitoring and Diagnostic system for Commercial Buildings
– Global Climate Change–scenarios and analysis
– Low emission Gas Turbine Combustor for Distributed Gen.
– Photovoltaic system implementation

Customer view of RD&D Needs
– Calif. Manufacturers Assoc.
(want certain end in 2002 of ratepayer funded R&D)
(suggest a number of energy conservation items for work til then)
– Applicant Design of Gas and Electric Distribution systems
(evolving to include private ownership and O&M, with many
resulting legal, regulatory and technical issues)

Panel Discussion on Improving Collaborative RD&D Processes

Past Successes of CEC and IOU research (under the old framework)
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Utility Restructuring Weekly Update

March 13, 1998/0 Comments/in Research, UFTO Notes /by beardsworth

A reminder that this weekly service is available from DOE. Anyone can request to be added to the email distribution list. (Only a small portion of the current list is shown in the note below.) Notice the coming availability on DOE’s website.

I have an electronic file of back issues from 5/97 on, if you need them.

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Subject: Utility Restructuring Weekly Update
Date: Fri, 13 Mar 1998 17:05:00 -0500
From: Jennifer.Bergman@ee.doe.gov

**********************************************************************
Please note: Effective March 23rd the Weekly will be available on the Internet at http://www.eren.doe.gov/utilities/weekly.html. The March 20th and March 27th editions of the Weekly will not be e-mailed. We expect to resume e-mail delivery for the April 3rd edition.

March 13, 1998

Utility Restructuring Weekly Update

This weekly information has been compiled by Energetics, Inc. for the weekly should be directed to either Jennifer Bergman, Energetics, Jen_Bergman@Energetics.com, or Diane Pirkey, U.S. Department of Energy, DIANE.PIRKEY@HQ.DOE.GOV. All other inquiries should be directed to the specific organization in question.

National/Federal:
An advisory committee, comprised of leaders from the electric and natural gas industries, Congress, Federal agencies, utilities, and consumer groups, recently released a report on federal and state restructuring policy and guidelines. “Restructuring the Electric Utility Industry: A Consumer Perspective,” prepared by the Consumer Energy Council of America Research Foundation consumers, particularly small commercial and residential users. The following are some of the recommendations made in the final report: (1) Congress should pass restructuring legislation soon; (2) consumers should be allowed to stay with their current provider and pay cost-based rates during the transition period of stranded costs recovery; (3) consumers should have access to and receive the programs should be continued; and (5) market power issues and solutions should be studied further and recommendations presented. The report is available from CECA/FA at (202) 659-0404. CECA/RF Press Release, March 4th

Rep. Stearns is developing a restructuring bill that would give states According to Stearns, “Congress should be careful not to mandate re-regulation… We should empower the states to enact measures providing their customers with retail competition and choice.” The legislation is said to include a reciprocity provision that would prohibit utilities from competing for customers if their own state was not open for customer choice. This bill is seen by some as an alternative to Rep. Schaefer’s bill and could possibly gain more bipartisan support because it does not mandate a date certain for retail choice. Congress Daily, March 9th

33,000 out of the 10 million electricity customers have signed up with new energy suppliers. Of these 33,000 customers, only 14,000 are residential and small commercial customers. It seems as if many of the California consumers are listening to the Southern California Edison ads that say “Do Nothing” about competition. EnergyOnline, March 9th

Merger:

The Justice Department approved the proposed merger between Enova Corp. and Pacific Enterprises. As a part of the merger, which would form Sempra Energy, San Diego Gas & Electric will sell two of its fossil-fuel plants.

Stranded Benefits:

The U.S. Department of Energy and the California Energy Commission signed an agreement to promote the development energy-efficiency technologies. This plan is the first of its kind and it is being energy sources continues in a restructured electricity industry. The agreement, which is in a Memorandum of Understanding, focuses on energy-efficiency and renewable-energy technologies and encourages the development of advanced electricity generation systems. PowerPlus, March 9th

Principles that would guide buyers and sellers in a competitive marketplace. Under AWEA’s green marketing principles, green power products must include power from wind, solar, biomass, and geothermal resources. There should be no repackaging of electricity from renewables that are “already being paid for by utility ratepayers” and existing and new entrants must compete, with no preference given for Electricity Daily, March 5th

A new fast food restaurant in Phoenix offers its patrons an item not found on a typical menu: use of an electric vehicle charging station. Although this is not the first area restaurant to offer such station, it is the first one to offer both conductive (plug-outlet technology) and inductive (not requiring a metal-to-metal connection) charging. This $1 million, 115-seat McDonalds is the product of a collaborative effort between the fast food chain and the Arizona Public Service Co. to design a restaurant that is energy-efficient and environmentally friendly. Among its features are an energy management system to control cooling/heating, lighting, and ventilation; solar light tubes; occupancy sensors; photosensors to adjust to lighting needs; skylights; and state-of-the-art glazing. These features are projected to reduce energy costs by 25 percent. This store is one of a few McDonalds prototypes in the nation that is optimized for the climate of region in which it is located. Knight Ridder/Tribune Business News, March 9th

States:

Arizona

Negotiations continue in the effort to generate an intergovernmental agreement between the Salt River Project (SRP) and the Arizona Corporation Commission (ACC) to ensure that the rules of the retail market apply to all electricity providers. Currently, long-held agreements between investor- owned utilities (IOUs) and SRP define the various suppliers’ service territories. In competitive markets, however, those boundaries will fade, and the IOUs fear that SRP will invade their service territories without providing reciprocal access to its market. According to sources, both the ACC and SRP are committed to creating an agreement, but disagreement continues over enforcement issues. These discussions are taking place in the context of legislative action on an electric restructuring bill. The bill, which passed the Arizona House last week, calls for full competition in SRP’s service territory by 2000, although the ACC’s blueprint for reform does not envision direct access for the IOUs until 2003. The measure was sent to the Senate, which is expected to begin committee review within the next week. Electric Power Alert, March 11th & March 9th

Colorado

The latest Colorado bill to deregulate the electric industry fared no better than those that have preceded it. Rep. Gary McPherson (R) shelved his bill to allow commercial and residential consumers to choose their electricity provider by 2002 because he did not have enough votes to move it out of the House committee. The next step is to prepare a compromise bill by combining it with one previously introduced by Rep. Paul Schauer (R) that stalled in committee last month. If the compromise bill fares no better in the General Assembly, a measure to prepare a report on the effects of deregulation by December 1999 will be the next step. Progress toward deregulation continues to move slowly in the state; comparatively low electric rates and many opponents, including rural electric associations and cooperatives, are cited as reasons. Knight Ridder/Tribune Business News, March 9th

Florida

State Senator Charlie Crist (R) recently announced his bill to bring choice to the state’s electricity consumers in three years. The bill would require utilities, including municipal power agencies and rural electric cooperatives, to submit restructuring plans detailing what they would charge for generation, transmission, distribution, metering, and billing to the Pubic Service Commission by year’s end. Without a co-sponsor or a companion bill in the House, it is not likely the bill will go beyond the committee hearings. Knight Ridder/Tribune Business News, March 9th

Illinois

The relationship between investor-owned utilities (IOUs) and their affiliate companies will be the subject of an extensive series of hearings by the Illinois Commerce Commission (ICC) at the end of the month. The ICC is instructed by Illinois’ newly enacted open competition law to determine proper boundaries for these relationships. The Illinois Citizen Utility Board (CUB) and Enron
Corp have already gone on record indicating that they are concerned about the impact IOU relationships with sister companies may have on a competitive market. Citing a recent court decision, the CUB argues that the relationships between affiliates creates a barrier to entering the market. Enron Corp is concerned with making sure that they pay no more than an affiliate for services like transmission and distribution. According to sources, Commonwealth Edison (ComEd) and other Illinois-based IOUs will argue that denying them a strong relationship with their affiliates will put them at a disadvantage in competing with IOUs from other states that may not be regulated as strongly. ComEd also plans to testify that electric competition will increase customer welfare and that regulation by the ICC should be light-handed. Electric Power Alert, March 11th

Indiana

An electric industry deregulation bill died in the Indiana state legislature, a victim of divergent interests within the state’s investor-owned utility community. The bill, which would have allowed full competition by 2004, was supported by companies such as American Electric Power and Cinergy Corp. These companies currently have relatively little market share in Indiana and believe that competition would create new opportunities to expand their business. Other more established utilities, including Northern Indiana Public Service Co and Indianapolis Power & Light Co, opposed the bill, sources say, because they already control large portions of the state’s market and see little advantage to competition. Electric Power Alert, March 11th

Massachusetts

In a single order, the Department of Communications and Energy granted approval of restructuring plans for three of the state’s utilities: Cambridge Electric Light, Commonwealth Edison, and Canal Electric. With this order, all but two of the Massachusetts utilities have received final approval on their restructuring plans. The remaining two, Massachusetts Electric and Fitchburg Gas & Electric Light, have both received interim approval on their plans. PowerPlus, March 12th

New Hampshire

New Hampshire Governor Jeanne Shaheen (D), Public Service Co of New Hampshire (PSNH), and consumers have begun private talks to work out a resolution to the electric industry reform deadlock that has gripped the state for much of the year. Issues being debated include the timing and extent of rate cuts and stranded cost recovery. Participants remain hopeful that there will be some sort of resolution, but do not anticipate meeting the July 1, 1998 deadline for open access envisioned by the Public Service Commission (PSC). If the talks do not produce a timely resolution, PSNH has promised to continue with its legal action claiming that the PSC’s February 1997 order implementing choice at the behest of the state legislature constitutes an unconstitutional taking of property because it opens the utility’s transmission and distribution and does not compensate its loss through full stranded cost recovery. Tired of the reform deadlock, House members passed a bill February 12 authorizing the PSC to issue securitization for independent power producer buy downs. Other investor-owned utilities in the state have bypassed the reform talks and begun to file settlements calling for full stranded cost recovery and divestiture of fossil fuel assets in return for rate reductions and open access by July 1. Electric Power Alert, March 11th

New York

The New York Public Service Commission (PSC) has approved the 1998 Demand Side Management (DSM) Plan submitted by the Long Island Lighting Company (LILCO) with certain caveats. Funding for the plan was approved at $10.6 million. The utility plans to operate well as low-income programs. In its ruling, the PSC indicated concern that LILCO’s DSM plan provides only limited market transformation opportunities and does not address how the plan will be coordinated with the statewide DSM programs to be funded with the new system benefit charge (SBC) or how its low-income program night be jointly developed and operated as a gas and electric program. As a result, administrator being designated by the Commission, and other interested parties in order to develop and coordinate further market transformation initiative and joint low-income programs. New York Public Service Commission, March 4th

Pennsylvania
Under a bill recently introduced by Rep. Lloyd (D), all Pennsylvanians would be able to choose their power supplier by January 1999, up to two years earlier than mandated by the state’s restructuring law. This bill has the backing of consumer and environmental groups, however the state’s utilities oppose it. Lloyd’s bill is currently being cosponsored by 15 others. Knight Ridder/Tribune Business News, March 10th

Texas

Texas-New Mexico Power Company is beginning a pilot program for a small town in south-central New Mexico. Starting May 1, the utility’s supplier for a two-year period.
EnergyOnline, March 4th

Vermont

Momentum towards electricity restructuring in Vermont has been slowed as a result of a March 1 decision by the state’s Public Service Board (PSB) to grant Green Mountain Power Corp (GMP) a mere fraction of the rate increase it was seeking. The PSB decision, experts believe, demonstrated that the current system of regulatory oversight can protect consumers, validating the concerns of many House members that deregulation may diminish those protections. “The rate case effectively kills restructuring for the session,” said a source with the Associated Industries of Vermont. “The politics look absolutely abysmal.” While ratepayers have hailed the decision to award only $5.6 million of the $22 million requested by GMP, the utility is vehemently opposed and has promised to file an appeal to the PSB or go directly to the state Supreme Court. According to the utility, the PSB erred in its finding that GMP was imprudent in signing a contract with Hydro Quebec in 1991. As a result of the decision, GMP’s bond rating has been downgraded, leaving the utility in a precarious financial position. Electric Power Alert, March 11th

Virginia

The state Senate approved an amendment to the restructuring legislation that would expand the requirements of competition to include both generation and transmission facilities. This amendment also calls for both generators and power marketers to participate in the development of an independent system operator. The House is now considering this amendment. PowerPlus, March 12th

WEBSITES:
Yahoo Utilities Company News: http://biz.yahoo.com
PMA Daily Power Report: http://www.powermarketers.com
EnergyOnline: http://www.energyonline.com

CURC Tech. Exchange Conf. Brochure

October 9, 1997/0 Comments/in Research, UFTO Notes /by beardsworth

Here is the detailed brochure recently mailed out for the CURC Technology Exchange Conference, in case you didn’t receive it in the mail.

Please let me know if you’ll be there. I do plan to attend on behalf of UFTO, and will report what I see and hear.
California Utility Research Council
Technology Exchange Conference

November 3-5, 1997
Hyatt Regency La Jolla, San Diego, CA

Sponsored by: California Utility Research Council (CURC)

Co-Sponsored by
Electric Power Research Institute
Gas Research Institute
U. S. Department of Energy

— Who is CURC?
CURC (California Utility Research Council) was established by the California Legislature in 1981 to:
• Promote consistency of utility RD&D programs with
state energy policy
• Prevent unnecessary duplication of research efforts
• Encourage the free exchange of information related to
utility RD&D projects, where appropriate
• Identify opportunities for research coordination between
energy utilities and for joint funding of RD&D projects
of benefit to California ratepayers

CURC Board includes representatives from the CPUC, CEC, PG&E, SDG&E, SCE, and SoCalGas.

— Background
Restructuring of the electric and natural gas industries is having a dramatic effect on the energy RD&D landscape in California. Previously, most of this work was funded by ratepayers and managed by the four largest investor-owned California utilities: PG&E, SCE, SDG&E, and SoCalGas. Supplemental funding for California RD&D interests was provided by GRI, EPRI, and DOE.

— Purpose
The 1997 CURC Technology Exchange Conference will help attendees better understand how all of the energy RD&D pieces will fit together in a restructured environment. The conference will also provide participants with an overview of technology trends and energy RD&D collaboration activities which benefit California. Attendees will get a first hand look at how the California PIER (Public Interest Energy Research) program will be implemented. Just as important, individuals will have an opportunity to network directly with peers and funding agencies.

— Who Should Attend
The conference will be of major interest to engineers, scientists, investors, inventors, RD&D policy makers, government representatives, product and business development specialists.

— General Information

The conference will be held at:
Hyatt Regency La Jolla, 3777 La Jolla Village Drive,
San Diego, CA 92122

Early registration will be available on Monday, November 3 from 4:00 to 7:00 p.m. Registration on Tuesday, November 4 will begin at 7:30 a.m. along with a continental breakfast. The conference will begin at 8:30 a.m. on Tuesday, November 4 and will conclude at approximately 4:30 p.m. on Wednesday, November 5.

Accommodations
Attendees are responsible for making their own reservations before October 12, 1997 (after this date the rates will increase or rooms may not be available). Mention the conference by name to ensure receiving the group rate:
Hyatt Regency La Jolla
Phone: (619) 552-1234 Fax: (619) 552-6066
Group Room Rate: $144 single/double occupancy
Reservation Deadline: October 12, 1997

Airline Discount
United Airlines is offering discounted fares to attendees flying into San Diego International Airport (20 minutes from the Hyatt La Jolla). For reservations and information, call 1-800-521-4041 and refer to meeting #511HD. These discounts are available only through United’s Meeting Desk and apply to travel between October 31 and November 8, 1997.

Registration
The conference fee is $350 and includes the conference preceedings, continental breakfast, coffee breaks and lunch each day, as well as a reception on Tuesday evening with poster papers.
To register, complete the registration form and mail it with your payment. Checks should be made payable to Southern California Gas Company. Unfortunately, we cannot accept credit cards or purchase orders for this conference. If registering by fax and sending a check separately, be sure to identify the attendee when sending the check.
Cancellations: No refunds will be given for cancellations received after October 28, 1997.

Poster Session
Space will be available for Poster Presenters to present during the reception on Tuesday evening and during lunch on Wednesday (with setup scheduled for Tuesday morning). The fee for poster presenters is $500 which includes one full conference registration. For further information, please contact the Conference Manager, Maureen Barbeau at (650) 855-2474 Fax: (650) 855-2166.

Spousal Attendance
No formal spousal programs are planned. However, for spouses accompanying attendees to San Diego there will be an informal continental breakfast on Tuesday and Wednesday mornings with information available about San Diego attractions. Please indicate on the registration form if your spouse will accompany you. Spouses are invited to attend the reception on Tuesday evening.

An informal golf outing will be held on Monday, November 3, 11:30 am, at the Coronado Municipal Golf Course, followed by a no-host dinner at a local restaurant. Coronado is located just a few minutes drive from the airport and downtown. Reservations for the event must be received by Friday, October 17, by mailing a check for $37.50 payable to “Coronado Municipal Golf Course” to Kurt Kammerer, c/o SDG&E, P.O. Box 1831, San Diego, CA 92124. Questions can directed by E-Mail to kkammere@sdge.com or by calling (619) 696-1891.

Technical Information
David Berokoff, The Gas Company
(213) 244-5340 Fax (213) 244-8242

Meeting and Logistical Information
(650) 855-2474 Fax (650) 855-2166

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PRELIMINARY AGENDA

All Day – Optional Social Outing (Golf) on Coronado Island
4:00 – 7:00 p.m.Conference Registration

Tuesday, November 4
7:30-8:30 AM-Registration, Continental Breakfast
8:30-9:00 AM-Opening Remarks-Frank A. Spasaro (CURC Chair)
(PIER Program Evolution, Overview of Objectives,
Strategic Plan)
David L. Rohy, Commissioner,
California Energy Commission
Representative,
California Public Utilities Commission
9:45-10:00 AM-Break
10:00-12:00 PM-California Utility RD&D Programs
(Utility RD&D Program Highlights, Technology Trends,
Collaboration Opportunities.)
Frank Spasaro, Southern California Gas
Jim Reilly, Southern California Edison
Kurt Kammerer, San Diego Gas & Electric
Bud Beebe, Sacramento Municipal Utility District

12:00-1:15 PM-Lunch, Keynote Presentation

1:15-3:00 PM-Other California Energy RD&D Programs
(Program Focus, Technology Trends, Collaboration
Opportunities)
Jim Cole,
California Institute for Energy Efficiency
Renewable Technologies
Terry Winter,
California Independent System Operator
Representative, Southern California Air
Quality Management District
3:00-3:15 PM-Break
Maurice Gunderson, Nth Technologies
John Burns, Scripps Consulting Group
Joseph Walkush, Science Applications
International Corp. (invited)

5:00-8:00 PM-Reception, Poster Sessions

Wednesday, November 5
7:30-8:30 AM-Continental Breakfast, Poster Sessions
8:30-9:30 AM-Keynote Presentation: Future Technology Needs & Trends
9:30-10:45 AM-National Energy RD&D Funding Agencies
(RD&D Program Highlights, Technology Trends,
Richard Rudman, Elec. Power Research Institute
Bill Burnett, Gas Research Institute
Representative, U.S. Department of Energy
10:45-11:00 AM-Break
11:00-12:30 PM-The Customer Perspective
Ralph Cavanagh,
Barbara Barkovich, California Large
Energy Consumers Assoc. (invited)
Richard Brent, Solar Turbine Systems
Richard Sperberg, On-Site Energy
Carl Weinberg, Weinberg & Associates
Ron Ishii, Technology Committee Chairman, CADER

12:30-2:00 PM-Lunch, Poster Sessions

2:00-4:30 PM-PIER Program Implementation Status

4:30 PM Conference Concludes

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REGISTRATION

(Please complete and return a copy with your payment)

CURC Technology Exchange Conference
November 3-5, 1997
Hyatt Regency La Jolla, San Diego, California

(Please print or attach a business card)

Name ___________________________________________________
Preferred Name for Nametag _____________________________
Title _______________________________________
Organization ________________________________
Address _____________________________________
City/State/Zip ______________________________
Telephone ___________________________________
Fax ___________________________________

Registration Fees
___ Attendee-$ 350
___ Poster Presenter-$500 (includes one conference registration)
___ Speaker-$ 0 (fee waived, one speaker per presentation)

Credit cards and purchase orders are not acceptable.
Checks should be made payable to Southern California Gas Co.

___ Check attached ___ Check being mailed separately

If registering by fax and sending check separately, BE SURE TO IDENTIFY THE ATTENDEE WHEN SENDING THE CHECK.

Refunds will be given for cancellations received on or before Oct. 28, 1997.

___ My spouse will accompany me.
___ I am interested in playing golf on Monday.
___ I have a disability and may require accommodation to fully participate. (You will be contacted by the conference manager.)
___ I have the following dietary requirements:

Please return this form or a copy with your check payable to
Southern California Gas Co. to:

Maureen Barbeau
Electric Power Research Institute
3412 Hillview Avenue
Palo Alto, CA 94304
(650) 855-2474
Fax (650) 855-2166
mbarbeau@epri.com

Telecomm over the power line in UK

October 8, 1997/0 Comments/in Research, UFTO Notes /by beardsworth

(I don’t normally just pass along press releases, but this one looked too important and I didn’t want to take the chance that you would miss seeing it.)

Wednesday October 8 4:55 AM EDT
Company Press Release

Nortel (Northern Telecom) and Norweb Communications Achieve Technology Breakthrough That Will Open a New Wave of Internet Growth

LONDON, Oct. 8 /PRNewswire/ – Nortel (Northern Telecom) and Norweb Communications, a business unit of United Utilities plc. of Great Britain, today announced that they have developed jointly a new technology that allows data to be transferred over electrical power lines into the home at speeds of more than one megabit per second-up to 10 times faster than ISDN, currently the fastest generally available speed. The breakthrough has the potential to open a new wave of demand for Internet services in the UK and Europe.

Nortel has developed the technology at its European Research and Development laboratories in Harlow, UK, in co-operation with Norweb Communications. Recent trials on the Norweb Communications network have been completed successfully and the technology is available for deployment.

The technology, which enables electrical companies to convert their power infrastructures into information access networks, will be initially marketed in the UK, Europe and Asia Pacific.

It allows electrical companies to provide a service that solves the three major problems facing international Internet market acceptance-access to consumers’ homes, data transmission rates and capital cost:

– By giving customers access to the Internet through their existing electrical supply system, the technology is available to virtually anyone. It offers permanent on-line connection with the potential for lower charges;

– The new technology enables data to be transmitted at rates of more than one megabit per second by using a patented technology that screens the data from electrical interference on the host power line, a long sought-after goal in telecommunications;

– Investment costs for the electrical companies are low compared to those envisioned for other broadband data access systems. Due to the nature of this technology, it can be rolled out in discrete, targeted phases. Utilities not wishing to operate data services also have the option of charging a right-to-use fee to an operating company for accessing their plant. End users require a computer card comparable in cost to a conventional ISDN terminal adapter, but offering 10 times the peak bandwidth.

The new technology will enable the introduction of Internet-based applications such as electronic commerce, teleworking, web broadcast media, entertainment and Internet telephony on a mass market scale.

The two companies have been working together on this development for the last three years and it is subject to a number of patents filed by Nortel and Norweb Communications. Norweb Communications is widely recognized within the power sector as a leader in research into broadband communications over power lines, having started work in this area in 1990.

Electricity utilities in Europe and the Asia Pacific region have already expressed significant interest.

Peter Dudley, a vice-president of Nortel, comments: “The rate of Internet take up and the volume of data traffic carried over the Internet has been one of the most striking business developments of the current decade, but speed of access remains a bottleneck for most users. As one of the first practical low-cost answers to the problem of high-speed access to the Internet this new technology will unleash the next wave of net growth.”

Mark Ballett, Managing Director of Norweb Communications, comments: “Norweb Communications has championed the use of electrical networks for voice and data services for several years and we are delighted to now be in a position to announce the launch of the first commercial products. This technology will allow us to use existing infrastructure to establish a strongly differentiated service offering in the northwest residential and small business market.”

Nortel will be opening a conformance center in Harlow, UK, for hardware and software suppliers who are interested in certifying their products for use on this new service.

Norweb Communications, part of United Utilities plc, provides an extensive range of advanced voice and data services and has achieved significant success in providing resilient networks for businesses throughout the northwest region of the UK. The company plans to use power line technology to provide public access networks for residential customers in the region.

United Utilities has combined capability in electricity, gas and telecom. This new technology will strengthen its competitiveness as a multi-utility service provider.

Nortel had a 1996 turnover of $US 3 billion in Europe, operating both independently and through its joint ventures with the Lagardere Group in France (Matra Communications and Nortel Matra Cellular), Olivetti SpA in Italy (Sixtel) and Daimler-Benz Aerospace AG in Germany (Nortel Dasa Network Systems). The company employs approximately 16,000 people across Europe in Research and Development, manufacturing and sales.

Nortel works with customers worldwide to design build and integrate digital networks – for information, entertainment, education and business – offering one of the broadest choices of network solutions in the industry.

Nortel had 1996 revenues of $US 12.8 billion and has approximately 68,000 employees worldwide.

Reliability TF draft Interim Report

July 11, 1997/0 Comments/in Research, UFTO Notes /by beardsworth

Subject: UFTO Note – Reliability TF draft Interim Report
Date: Fri, 11 Jul 1997 11:12:59 -0700
From: Ed Beardsworth

— advance copy just received from contacts at DOE —

————————————————————–
| ** UFTO ** Edward Beardsworth ** Consultant
| 951 Lincoln Ave. tel 415-328-5670
| Palo Alto CA 94301-3041 fax 415-328-5675
| http://www.ufto.com edbeards@ufto.com
————————————————————–

—————————————-

The attached file contains a draft Interim Report that will be discussed and marked up at the July 23 – 24 meeting of the Secretary’s Electric System Reliability Task Force.

Please note that this draft has not yet been reviewed by the Task Force members.
—————————————–

DRAFT

Dr. Walter Massey
Chairman, Secretary of Energy Advisory Board
c/o Morehouse College
830 Westview Drive, SW
Atlanta, Georgia 30314

Dear Dr. Massey:

The Task Force on Electric System Reliability of the Secretary of Energy’s Advisory Board is writing to provide you interim comments on several issues important to the maintenance of reliability. Although the Task Force has not yet completed its deliberations under the Secretary of Energy Advisory Board’s Terms of Reference, its members are aware that the Department and the Administration may be making decisions on these issues and we want to be as helpful as possible.

As you know, the 24-member Task Force is a diverse group representing, for example, electricity producers, marketers, state agencies, consumers, environmental advocates, reliability organizations and academia. Not surprisingly, with such differing perspectives on changing and complex issues, it is not easy for the group to rapidly reach a consensus. Naturally, not every member agrees with every detail of this report.

We certainly all do agree, however, that the maintenance of system reliability must be a high priority and that the mechanisms for ensuring reliability must be changed to accommodate the changing electric market.

Since its establishment in January, 1997, the Task Force has convened in four open meetings. Thus far, we have focused primarily on issues relating to the bulk power transmission grid and in particular security issues—that is, questions about the operation and maintenance of that system–rather than the adequacy of supply or generation. We will be assessing a number of additional issues at future meetings.

The Task Force appreciates the opportunity to provide the Department with this Interim Report and respectfully submits the preliminary findings and recommendations contained therein.

Sincerely,

cc: Federico Peña
Elizabeth Moler

————————-
Secretary of Energy Advisory Board
Task Force on Electric System Reliability

Interim Report

July 24, 1997

Background

This report makes recommendations regarding the security of the Nation’s bulk power system consisting of generation, transmission, and control facilities.

Electric reliability can be divided into two areas: reliability of the distribution system and reliability of the bulk power system. Bulk power system outages affect large areas and can have significant regional and national implications. Further, the rules for assuring reliable operation of the bulk power system can have an effect on the transactions occurring on the system. Federal regulators have responsibility for economic regulation of electricity in interstate commerce, including wholesale transactions involving most of the nation’s generation and transmission facilities, within and across state borders. An issue introduced by competition in bulk power markets is the need to assure reliable system operations in a competitively neutral way. While everyone agrees that system reliability must be maintained as a feature of a competitive electric industry and must be under the direction of experienced expert operators, not everyone agrees about how to resolve reliability issues in a manner that does not discriminate for or against certain participants in competitive bulk power markets.

While states have an interest in the performance of the bulk power system, state regulation has tended to focus on distribution system outages, that generally have only localized effects and are frequently characterized as being related to end-user customer service, which is an area of state jurisdiction. States have traditionally also had regulatory responsibility for economic and planning approval for certain generation facilities and recovery of their costs and siting approval of both generation and transmission facilities within the state.

Bulk power system reliability has two components: adequacy and security. Adequacy implies that there are sufficient generation and transmission resources available to meet projected needs at all times, including peak conditions, plus reserves for contingencies. Security implies that the system will remain intact even after planned and unplanned outages or other equipment failures occur. Most view transmission adequacy and system security as “public goods” that benefit all buyers and sellers of electricity, and which exhibit monopoly characteristics. While the market will likely play a role in providing certain services that are needed for transmission adequacy and system security, these are the areas of greatest national interest from a reliability point of view and the primary focus of this report.

Bulk power system reliability has historically been the responsibility of the electricity industry, as opposed to the government which has only indirect jurisdiction primarily through economic regulation of wholesale electricity sales by the Federal Energy Regulatory Commission (FERC). The Department of Energy and the FERC also have some limited authority under certain circumstances to order transmission, require interconnections, make reliability recommendations and collect information. The industry, through the North American Electric Reliability Council (NERC), a self-regulating organization traditionally made up of electric utilities, and the ten regional reliability councils establish reliability standards and monitor compliance. While these organizations have been effective in a world of vertically integrated electric utilities, there is concern today about the voluntary nature of their membership, their dominance by utilities, and the inability to mandate and enforce compliance among their members and other industry participants.

Further complicating reliability issues is incomplete jurisdictional authority. As mentioned above, the NERC and the regional reliability councils have jurisdiction only over their members. There are also thousands of municipal, cooperative, and power marketing utilities that are not subject to FERC or state jurisdiction.

Similarly, we recognize that the bulk power system is an international system. We recognize that the NERC, as a body that includes U.S., Canadian, and Mexican members, has a unique role in setting and monitoring international reliability standards and that close cooperation will be required between national, state, and provincial regulatory agencies that may be given authority for reliability oversight.

Reliability Institutions

The electric utility industry traditionally has been vertically integrated, fully regulated and composed of a limited number of entities. These entities were similar in makeup, in their investments in the bulk power system, and in their expectations for grid operation and use.

In this environment, three institutions evolved that are the focus of this report.

NERC – In 1968, the North American Electric Reliability Council was formed in response to the 1965 power outage that blacked out the northeastern United States and Ontario, Canada. For over two decades, NERC’s mission has been to promote electrical system reliability and thereby prevent further such occurrences. The NERC has been a voluntary, industry-constituted governing body that develops standards, guidelines and criteria for assuring system security and evaluating system adequacy. The NERC has been funded by regional reliability councils which adapt the rules to meet the needs of their regions. Through the work of its ten regional councils and one affiliate council, the NERC has largely succeeded in maintaining a high degree of transmission grid reliability throughout the country. Historically, the NERC has functioned without external enforcement powers, depending on voluntary compliance with standards and peer pressure.

System operators – Today the country is served by approximately 150 separate control areas, each with its own system operator. The operators of these systems rely on communications with each other, access to essential system information, and real time monitoring and control of certain facilities to maintain system reliability. When an emergency occurs on the system, the control area operator takes action — both through communication and direct physical action — to ensure the integrity and security of the system. These people take and direct others to take the actions necessary to “keep the lights on” and to protect against damage to the entire system in the event of emergencies.

FERC — The Federal Energy Regulatory Commission is the federal agency with jurisdiction over the bulk power market, including interstate transmission systems. As part of these responsibilities, the FERC is implementing policies to assure that the owners and operators of bulk power transmission facilities under the agency’s jurisdiction provide non-discriminatory service to all power suppliers in wholesale power markets. Historically, the FERC has not had to involve itself with regulating reliability functions. Increasingly, some parties are calling upon the FERC to begin to exercise its current authorities by addressing reliability issues that intersect with the commercial needs of the industry.

At the onset, we note that the electric industry is changing and, indeed, has already changed in several respects: wholesale electric markets are opening to competition under open access transmission tariffs; several states containing more than one-third of the nation’s population have decided to permit retail consumers to choose their suppliers (nearly all of the remaining states are studying retail competition); energy companies are merging and establishing innovative joint ventures; new competitors are entering markets, and new institutions are forming (e.g., independent system operators; power exchanges; spot markets).

These trends indicate that in the future, market forces will determine when, where and what type of generation sources will be built and which energy trades will be transacted. Also, it is apparent that the nation’s transmission grid will be used by a larger number of entities for many more transactions. There are challenges regarding maintenance of traditional reliability levels in this new environment.

While the traditional reliability institutions and processes have served us well in the past, these institutions and processes need to be modified to assure that reliability occurs in a competitively neutral fashion, without favoring one or another set of market participants. To attempt to accommodate these new reliability issues that arise with competitive markets, today’s existing reliably institutions, and most notably the NERC, have undertaken a number of new initiatives including expanding their membership to include new market participants in addition to those long-standing members drawn from the electric industry. The Task Force welcomes these changes.

Task Force Findings

The Task Force has reached consensus on several key points:
1) Restructuring of the electric industry offers economic benefits to the nation and may result in a more efficient electric industry

2) While the changes brought about by restructuring are complex, the reliability of the system need not be compromised provided appropriate steps are taken. Transmission grid reliability and an open, competitive market can be compatible.

3) The viability and vigor of the commercial market must not be unnecessarily restricted. The market forces being introduced now depend on fair and open access to the transmission grid.

4) Commercial markets should develop economic practices consistent with the ingenuity and mutual interest of the participants. However, grid reliability must be maintained through disciplined technical standards and practices.

5) Reliability standards must be clear, transparent, nondiscriminatory, enforceable and enforced. Compliance must be mandatory for all entities using the bulk power system.
6) Regulatory oversight is necessary to ensure compliance with reliability policies and standards and to resolve disputes.

7) It is reasonable and practical to build on the experience and reliability standards developed by the NERC over the past 28 years. However, these standards as well as NERC’s own system of governance must be modified to accommodate the complexities of the competitive market.

8) Grid reliability depends heavily on system operators who monitor and control the transmission grid in real-time. In order to assure competitive use of the grid, system operators must be independent from owners of generation and transmission; they should have no commercial interests in electricity markets.

9) Bulk power systems are regional in nature and can and should be operated more reliability and efficiently when operators are coordinated over large areas.

10) The reasonable and necessary costs for maintaining the reliability system should be fully recoverable and equitably distributed.

11) Transmission grid reliability is a North American issue; the reliability relationships with Canada and Mexico must be preserved.

Task Force Recommendations

The Task Force recommends that:

1) The NERC expedite — to the fullest extent possible and consistent with assuring sound results — the modification of its governance structure to assure fairness and lack of domination by any single industry sector.

2) The FERC undertake a review of existing NERC policies and standards that affect the operation of an open wholesale market and undertake a review of NERC’s organizational structure and governance. This proposed role for the FERC is important in order to make reliability standards enforceable and to assure that reliability standards and practices are not misused in ways that would be discriminatory in the competitive market. Given the considerable demands currently faced by the FERC, additional resources may be required by the agency in order to undertake this role.

3) Federal legislation may be useful to clarify FERC’s authority and responsibility for overseeing and setting and enforcement of reliability standards.

ORNL Utility Survey

July 9, 1997/0 Comments/in Research, UFTO Notes /by beardsworth

Subject: UFTO Note — ORNL Utility Survey
Date: Wed, 09 Jul 1997 11:49:03 -0700
From: Ed Beardsworth

The Engineering Technology Division at Oak Ridge sent out a survey to a list of utilities recently, with a cover letter from Ed Fox, the division director. Some of you have already seen it, and I have the names of who it was sent to in your companies if you want them.

The stated purpose is to increase utility awareness of ORNL R&D, to obtain feedback on the relevance to utilities of that work, and on priorities for additional R&D. Also, they want stronger ties to utilities and potential users of ORNL work…a goal certainly congruent with UFTO!

Ed Fox can be reached at 423-574-0355, ecf@ornl.gov

The survey is being administered by:
Scott R. Penfield, Jr., Technology Insights
P.O. Box 205, Signal Mountain, TN 37377-0205
423-842-8078 Tel 500-346-9500 Alt. Tel
423-886-3225 FAX penfield@ti-sd.com

The text of the survey is attached below, and includes a number of technologies previously reported by UFTO.
—
————————————————————–
| ** UFTO ** Edward Beardsworth ** Consultant
| 951 Lincoln Ave. tel 415-328-5670
| Palo Alto CA 94301-3041 fax 415-328-5675
| http://www.ufto.com edbeards@ufto.com
————————————————————–

ORNL SURVEY OF UTILITIES

Part I: Current ORNL R&D Programs

The following topics briefly summarize ongoing R&D programs at ORNL. For each, please indicate whether you were previously aware of the work and provide a rating (on a scale of 1-10) as to how relevant the work is to your current needs. (If you were not previously aware of an individual R&D item, please base your rating on the summary.) If you wish further information on any topic, please so indicate.
WWW ADDRESS FOR THE ENGINEERING TECHNOLOGY DIVISION
HOME PAGE: http://www.ornl.gov/etd/etdfctsh.htm

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1.0 PLANT/EQUIPMENT DIAGNOSTICS AND CONDITION MONITORING
The following technologies provide for monitoring the condition of machinery in service, on-line diagnostics for evaluating faults, plus R&D into effects of machinery aging. The objective is to relate appropriate maintenance or replacement actions to the actual condition of the machine.

1.1 Electrical Signature Analysis (ESA)
Data characterizing electrical currents and voltage waveforms to/from motors, generators and similar devices are obtained and recorded, using non-invasive probes. ORNL-developed analysis techniques are applied to the resulting data, leading to powerful insights into the health and performance of the electrical machine and the system and/or facility in which it is installed. A typical utility application involved the evaluation of transient loads in motor operated valves at a Carolina Power & Light nuclear plant. More recent developments include improved data analysis techniques and methods for the integrated monitoring of complete systems.

Status: Early forms of ESA are being used in a range of industrial applications, including utility power plants. Licensees include B&W/Framatome and ITT Movats/Westinghouse and Public Service Electric and Gas of New Jersey. More recent developments are available for licensing and/or joint development.

Previously aware of this research: _ Yes _ No
Request additional information: _
Relevance to current needs (please circle):
(Low) 1 2 3 4 5 6 7 8 9 10 (High)

1.2 Non-Intrusive Voltage and Power Factor Monitoring
ORNL is evaluating a series of new technologies for obtaining high voltage (>480V) waveforms and power factors, without contact and without the need for potential transformers. These technologies have significant potential in power quality monitoring applications.

Status: These technologies are in an early stage of development and evaluation. They are available for licensing and/or joint development.

1.3 Check Valve Monitoring
The function and health of check valves are evaluated, using a combination of magnetic and vibration sensors. Lack of adequate function and deterioration can be detected, without the need for removal or disassembly of the component.

Status: This technology has been licensed to several service vendors, including B&W/Fram- atome and ITT Movats/Westinghouse. Consolidated Edison is also a licensee.

1.4 Improved Eddy-Current Material Defect Detection
ORNL is developing a new technology for improved defect detection and imaging in non-magnetic materials. In laboratory tests, cracks in a perforated aluminum plate, located behind a 60 mil solid aluminum plate, are clearly imaged. In addition to aircraft inspection (the initial target for this innovation), steam generator tube inspection is a potential application of this new eddy-current based technique.

Status: This technology is in the early stages of development.

1.5 Effects of Aging in Machinery
ORNL has developed a vast database and associated reports on the effects of machinery aging. Information and expertise are available on the general principles of machinery aging as well as the specific effects of aging on individual components, machines and systems.

Status: The database was developed in support of NRC investigations into the effects of aging on nuclear power stations. It is available in the form of reports at the present time. Work is ongoing to develop methodologies to support condition based maintenance decisions.

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2.0 PLANT INSTRUMENTATION & CONTROL
ORNL’s capability for conceiving, prototyping and implementing advanced instrumentation and control (I&C) capabilities extends from the I&C support of experimental work throughout the laboratory and from supplying innovative sensor and control technologies to federal agencies, utilities and private industry. The following are examples of related utility applications.

2.1 Plug-in Compatible Instrumentation and Control Upgrades
ORNL has developed and prototyped a concept in which application-specific integrated circuits (ASIC’s) mounted on a motherboard replace corresponding analog modules originally installed in utility power plants. The simplicity of the individual ASIC’s reduces concern with common mode failures, a current issue with complex software driven systems. The resulting plug-in compatible replacement modules simplify installation and operation, because rewiring is not required and because changes to operating procedures are minimized.

Status: ORNL is supporting EPRI and the Westinghouse Owner’s Group in the advancement of this technology. A prototype safety system module has been fabricated and is currently undergoing testing.

2.2 Accurate On-Line Measurement of High Temperatures
ORNL has developed a technique for continuous in-situ calibration of resistance temperature detectors. The goal is to maintain an accuracy of 0.5% (°F) under actual operating conditions and to extend the range of useful measurement from about 900°K (1200°F), at present, to 1300°K (1800°F). A typical application would be measuring steam temperatures for on-line determination of plant efficiency.

Status: The technology has been developed to a pre-commercial form and feasibility has been established through demonstrations at the Diablo Canyon and Connecticut Yankee nuclear stations, as well as tests in the Kingston Steam Plant (EPRI I&C Facility).

2.3 Solid-State Hydrogen Sensor
ORNL and EPRI are developing a small, solid state hydrogen sensor for nuclear plant containment monitoring. Other utility applications might be in conjunction with hydrogen cooled generators, battery banks, etc.

Status: The sensor is patented and available for licensing. Tests have been conducted in air, nitrogen, argon, steam and transformer oil and for H2 concentrations of 0.5% to 30%.

2.4 Automated Measurement of EMI/RFI
ORNL has developed and used an instrument to monitor and record ambient electromagnetic interference/radio frequency interference (EMI/RFI) in power stations. The system is capable of non-obtrusive, unattended operation over several-month periods.

Status: Available now for licensing or use.

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3.0 NON-LINEAR TIME-SERIES ANALYSES
The catchy but misleading name “Chaos” has often been associated with a family of advanced non-linear time-series analysis techniques. In reality, these methods allow a degree of order to be
discerned for what otherwise appear to be a series of highly random events. Examples of practical utility applications are provided below.

3.1 Improved Combustion Control
Non-linear analysis can be used to analyze and optimize fossil power plant burners, fluidized bed combustion systems and, potentially, gas turbines for higher efficiency and improved NOx control.
Status: An early application was the characterization of fluid bed combustion systems, where an objective was to avoid unstable operating regimes (e.g., chugging). More recently, the potential of this technology for improving fossil burner control is being developed through a project involving EPRI, ORNL and B&W.

3.2 Failure Prediction
There is a further potential for applying non-linear analysis to advanced machinery diagnostics/ failure prediction (e.g., in turbine-generators). Bearings, in particular, appear to exhibit chaotic behavior in advance of certain failure modes.

Status: Non-linear analysis is being evaluated in conjunction with diagnostics and condition monitoring techniques, such as electrical signature analysis (see above). Westinghouse has expressed an interest in bearing diagnostics.

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4.0 TRANSMISSION AND DISTRIBUTION

ORNL is developing technologies for automating the control of transmission systems, increasing system capacity and providing an improved understanding of the underlying costs of ancillary services.

4.1 Real-Time System Control
ORNL, DOE and EPRI are developing the technology for real-time monitoring and control of widely distributed transmission systems. This compares with current practice in which responses to disturbances are predetermined on the basis of previously completed analyses. The real-time system will employ an array of monitors, with outputs time-synchronized by satellite clocks. Artificial intelligence techniques will be used to recognize and appropriately respond to disturbances.

Status: This work is in the early stages of development.

4.2 High Capacity Transmission
ORNL has participated in R&D for increasing the capacity of high-voltage transmission lines. Included was testing of a high phase order line, which has the potential for transmitting up to three times the power of a standard single circuit AC line.

Status: The potential of this technology has been confirmed through the operation of a 1.5 mile test section, sponsored by EPRI, DOE, NYSERDA, NYSEG and ESEERCO. Given the current transition to independent operation of transmission capacity, no follow-on work has yet been identified.

4.3 Cost of Ancillary Services
One challenge in establishing the pricing basis for open access to electrical transmission systems is placing a value on ancillary services (scheduling and dispatch, load following, system protection, VARs, energy imbalance, and real power losses). Initial estimates developed by ORNL range from $1.5-$6.8/MWh, with an average of $4.1/MWh. By contrast, the FERC pro-forma schedule includes an allocation of $1/MWh for ancillary services.

Status: An initial report, based on an analysis of 12 utilities is now available. Follow-on work is recommended to establish a consistent framework for estimates.

5.0 POWER ELECTRONICS
This area includes research in power electronics, which is finding broad applicability in power quality, energy conversion and storage, adjustable speed drives, transmission, links, etc.

5.1 Resonant Snubber Inverter
The Resonant Snubber Inverter (RSI) is a power electronics innovation that employs a special resonant circuit to reduce losses during switching. Tests at ORNL have shown efficiency to be improved by 15 percentage points at half speed and 5 percentage points at rated speed. Elimination of associated voltage spikes reduces voltage stresses (leading to higher reliability), and essentially eliminates electromagnetic interference. Potential uses include power conversion for energy storage devices (e.g., flywheels, ultracapacitors, etc.) and adjustable speed drives.

Status: The RSI is currently being developed at ORNL for a number of specific applications.. The technology is available for joint development and/or licensing.

5.2 Multilevel Converter
The Multilevel Converter is another power electronics innovation that allows synthesis of high voltage waveforms, using capacitors as voltage dividers. Potential applications include DC links, static VAR generators and high voltage variable speed drives, as well as power conversion from renewable energy sources (such as photovoltaic arrays) or battery-fed systems. The ORNL technology eliminates the need for transformers, which are a significant source of cost and energy losses in conventional systems. A problem with capacitor based systems is the tendency to develop an imbalance between voltage levels when real power is being transferred (this is not a problem in static VAR generator applications). The unique contribution of ORNL is a new approach for maintaining the desired voltage balance across the capacitors, when real power is being transferred.

Status: An 11-level (21-level phase to phase) multilevel converter, employing insulated gate bipolar transistors (IGBTs) is working in the laboratory at ORNL. This system is prototypical of a 60kV multilevel converter using gate turn-off thyristors (GTOs).

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6.0 INFORMATION MANAGEMENT AND OPERATIONS ANALYSIS
This area comprises R&D on information management and operations analysis methodologies which support the management decision process.

6.1 Integrated Operational and Economic Models
ORNL has developed an extensive capability for operations and economic modeling techniques that support the management decision process. Alternative courses of action can be evaluated on a probabilistic basis, taking into account both the likelihood of various outcomes and their technical and economic consequences. Typical examples in which utilities might apply such techniques include evaluating the business potential of a new energy storage device, or determining the likelihood that a nuclear facility would be profitable over its remaining lifetime.

Status: These modeling techniques have been extensively applied. A recent example is a probabilistic assessment (for DOE) of the economic viability of each of the nuclear plants currently operating in the U.S.

6.2 Real-Time Power Scheduling
ORNL developed a “Power Advisor” to guide the operations of the Paducah, KY uranium enrichment plant in response to real-time electric power pricing inputs. The model provides a basis for deciding whether blocks of power at a given price should be accepted or whether it is more cost effective to curtail plant operations. The model includes consideration of the technical limitations of the facility, as well as the economic impact on the product bottom line.

Status: In place and operating at Paducah, KY.

6.3 Performance Indicators
The performance indicator methodology developed by ORNL is an operations management process for filtering and organizing the vast amounts of data generated in a complex management environment. The key objective is to focus management attention on activities that have the most influence on organizational goals, such as economic return, operational efficiency, safety, etc. The process starts with the selection of key performance indicators. These individual measures of performance are subjected to additional analysis and weighting, resulting in composite indices representative of overall performance, analogous to a stock market index. Feedback mechanisms are included to optimize information flow and to respond to organizational changes over time.

Status: Currently employed by DOE for managing the DOE occupational safety and health program.

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7.0 UTILITY/CUSTOMER TECHNICAL SUPPORT
The following research areas would potentially support both utility and utility customer technology support needs.

7.1 Electric Machinery Analysis
ORNL has developed an improved motor equivalent circuit model to more accurately estimate the operating characteristics of electric motors. Input to this computer-based tool can start from name plate data and increased accuracy can be obtained with supplemental calibration measurements (e.g, speed and current). Once calibrated for a given machine, the method can be used to accurately predict loads, currents, efficiency, etc. As a result, the need for additional monitoring instrumentation may be reduced in some cases.

Status: The model is complete and available through the DOE Motor Challenge Program

7.2 High Temperature Thermography
Techniques developed by ORNL offer improved capability for accurately measuring high temperatures. Using emissions from thermographic phosphors, temperatures can be measured over a wide range (cryogenic to 1600°C [2900°F]) and without the need for physical contact.

Status: This technology has been applied to several industrial processes. Initial applications have included the first stage vanes of turbine engine gas generators and the surface of steel exiting a molten zinc bath in a galvanizing process.

7.3 Electric Machinery Test Facility
ORNL has developed a flexible and well instrumented Electric Machinery Test Facility. The current capacity is 100 hp, but is now being expanded to 700 hp. During testing, loads can be varied over a wide range. Input voltage and currents can also be varied to simulate various operating demands, as well as a range of power quality situations (e.g., voltage imbalances, harmonics, etc.)

Status: The Electric Machinery Test Facility is a National User Facility available for use by private sector entities for testing and qualification of motors, generators and related components at nominal cost.

7.4 Pump Test Facility
ORNL recently commissioned a Pump Test Facility, with a design capacity of 100 hp. The configuration of the facility is highly flexible in terms of flow configuration, installed components and provisions for instrumentation and monitoring.

Status: The Pump Test Facility is a National User Facility available for use by private sector entities for testing and qualification of pumps and related components at nominal cost.

7.5 Buildings Technology Center
ORNL is actively involved in developing technologies to improve the efficiency of buildings and installed equipment. The Buildings Technology Center (BTC), established at ORNL in 1994, includes a large scale climate simulator and a hot box for testing components (walls, windows, etc.), as well as facilities for testing equipment (e.g., heating and air conditioning).

Status: The BTC is a National User Facility available for use by private sector entities for testing and qualification of building components at nominal cost.

Part II: Priorities for Additional R&D
Please indicate below up to three areas of R&D that would most help your organization to meet its objectives.
1.
2.
3.

Part III: Contact for Liaison with ORNL

Please identify one or two individuals that could serve as a liaison with ORNL managers. We will keep them informed of new innovations at ORNL and request their input regarding utility R&D priorities in the future.
1. Name Title Organization
Address
Tel FAX E-Mail

2. Name Title Organization
Address
Tel FAX E-Mail

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