{"id":7414,"date":"2014-06-19T16:26:42","date_gmt":"2014-06-19T21:26:42","guid":{"rendered":"http:\/\/blogs.edf.org\/energyexchange\/?p=7414"},"modified":"2015-12-21T12:44:07","modified_gmt":"2015-12-21T18:44:07","slug":"illinois-largest-utilities-embrace-the-smart-grid","status":"publish","type":"post","link":"https:\/\/blogs.edf.org\/energyexchange\/2014\/06\/19\/illinois-largest-utilities-embrace-the-smart-grid\/","title":{"rendered":"Illinois\u2019 Largest Utilities Embrace the Smart Grid"},"content":{"rendered":"<figure id=\"attachment_7479\" aria-describedby=\"caption-attachment-7479\" style=\"width: 800px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/en.wikipedia.org\/wiki\/File:Chicago_sunrise_1.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-7479\" alt=\"Source: Daniel Schwen\" src=\"https:\/\/blogs.edf.org\/energyexchange\/wp-content\/blogs.dir\/38\/files\/2014\/06\/Chicago_sunrise_1.jpg\" width=\"800\" height=\"254\" srcset=\"https:\/\/blogs.edf.org\/energyexchange\/wp-content\/blogs.dir\/38\/files\/2014\/06\/Chicago_sunrise_1.jpg 800w, https:\/\/blogs.edf.org\/energyexchange\/wp-content\/blogs.dir\/38\/files\/2014\/06\/Chicago_sunrise_1-300x95.jpg 300w\" sizes=\"auto, (max-width: 800px) 100vw, 800px\" \/><\/a><figcaption id=\"caption-attachment-7479\" class=\"wp-caption-text\">Source: Daniel Schwen<\/figcaption><\/figure>\n<p style=\"text-align: left;\"><em>By:\u00a0David Kolata, executive director of the <a href=\"http:\/\/www.citizensutilityboard.org\/\">Citizens Utility Board<\/a><\/em><\/p>\n<p>Over the next five to seven years, smart grid infrastructure, including advanced metering infrastructure (AMI), will be deployed for customers of the two largest utilities in Illinois: Commonwealth Edison and Ameren Illinois. Over five million new meters will be installed and over $2 billion of smart grid investments will be made. The challenge confronting consumer and environmental advocates in Illinois is how to make sure that infrastructure is rolled out in a way that maximizes other policy objectives\u2014namely, saving customers money on their energy bills and promoting opportunities for innovative technologies like microgrids and energy storage.<\/p>\n<p>Years of discussion in Illinois culminated in the\u00a0<a href=\"http:\/\/www.prnewswire.com\/news-releases\/illinois-general-assembly-enacts-energy-infrastructure-modernization-act-132681088.html\">Energy Infrastructure Modernization Act<\/a>, a new law that supports smart grid deployment and funds programs to support electricity system innovation through:<!--more--><\/p>\n<ul>\n<li><strong>Test beds where energy entrepreneurs can test new hardware and software solutions.<\/strong>\u00a0Both ComEd and Ameren are now required to create live, on-the-grid, real-time opportunities for energy entrepreneurs to test new technologies. Ameren established one near the University of Illinois, dedicated to testing more traditional electrical system technologies ranging from 120\/140 volts to 69,000 volts as well as an integrated \u201ctest home\u201d for smart appliances. ComEd\u2019s test bed is 120,000 homes in its innovation corridor, with a focus more on behind-the-meter, in-home technologies.<\/li>\n<\/ul>\n<ul>\n<li><strong>Venture capital support for early-stage smart grid companies.\u00a0<\/strong>The Energy Foundry is a private, nonprofit impact venture capital fund with roughly $24 million to invest in early-stage smart grid companies, providing funding opportunities for companies engaged in the test beds and smart grid ecosystem.<\/li>\n<\/ul>\n<ul>\n<li><strong>Consumer education programs targeted to energy efficiency, demand response, and dynamic pricing elements of pilot programs.<\/strong>\u00a0Our law is unique because it mandates significant funding for consumer education from third parties, such as municipalities and nonprofits. We want most of this funding to be used for concrete programs around energy efficiency, demand response, and dynamic pricing.<\/li>\n<\/ul>\n<ul>\n<li><strong>Performance metrics to measure the performance of the AMI smart grid rollout, including measures for voltage optimization, distributed generation, and greenhouse gas emission reductions.<\/strong>\u00a0We see this as key to the entire regulatory bargain where our utilities have the option to recover their costs in a new rate scheme provided they meet specific performance and investment mandates. Some of these performance metrics were established by statute and have corresponding ROE penalties if they are not met. An additional 20 metrics\u2014including GHG reductions due to smart grid\u2014were developed by CUB and the Environmental Defense Fund (EDF) and agreed to by ComEd and Ameren.<\/li>\n<\/ul>\n<p>We came to Colorado and\u00a0<a href=\"http:\/\/blog.rmi.org\/blog_2014_03_25_e-lab_accelerator_working_together\">eLab Accelerator<\/a>\u00a0to review the current project landscape and to sit down for the first time to catch our breath and lay out a vision for what successful deployment of AMI in this new policy framework would look like. Our team consisted of representatives from consumer advocates (CUB), the Energy Foundry, Environmental Defense Fund, the wholesale market (PJM), and an energy efficiency and dynamic pricing program implementer (Elevate Energy). We focused on Illinois energy markets, including coordination between state and RTO-based markets, and tried to see forward paths to develop business models and customer outreach plans for energy efficiency, demand response, and dynamic pricing programs.<\/p>\n<p>Before we came to Colorado, we had all collaborated on various regulatory filings which laid the groundwork for our Accelerator discussions. We had worked on the legal issues around access to customer use data, procurement of energy efficiency and energy efficiency program design, and progress made by ComEd and Ameren in deploying AMI. What we didn\u2019t have was the time to sit and identify specific areas where we though this deployment could create value to customers while building an ecosystem to support innovation from folks who are not the utilities.<\/p>\n<p>What we came away with were three main objectives by which we can measure success:<\/p>\n<ul>\n<li>Are customers using less energy? (Is average kWh consumption dropping?)<\/li>\n<li>Are we using less energy at peak times? (Is load shape getting better?)<\/li>\n<li>Are we meeting our environmental goals? (Are GHG emissions dropping?)<\/li>\n<\/ul>\n<p>We developed a list of six strategic areas to focus on, and laid out an admittedly ambitious goal for each area by 2018. For each area, we looked at specific actions we could take now and policies we needed to put in place to support our goals.<\/p>\n<ul>\n<li><strong>Dynamic Pricing:<\/strong>\u00a0We laid out a goal of having 50 percent of Illinois customers with a new smart meter on some type of dynamic pricing. Illinois already has a residential real-time pricing program and thanks to the new law, will have a utility peak-time rebate program. Meeting this goal will mean not only studying the demographics of who is already on a dynamic pricing plan but piloting things like a demand-response smart thermostat program and working with wholesale markets like PJM on a price-responsive demand project. Since Illinois has electric municipal aggregation\u2014in which cities or counties can negotiate better electricity prices on behalf of their residents and eligible small businesses\u2014we plan on designing a time-of-use (TOU) option for municipalities to use in their aggregation contracts. We also plan on asking the PUC to approve a utility TOU this summer.<\/li>\n<\/ul>\n<ul>\n<li><strong>Customer Participation:\u00a0<\/strong>Since Illinois will have almost five million meters in place by 2018, we set out a goal of having one million customers with an in-home smart device by 2018. Our utility energy efficiency standards require them to include third-party programs, giving us the chance to pilot in-home devices, and since the Illinois Power Agency adopted our suggestion to procure \u201cnegawatts,\u201d we have another potential source of funding for an in-home device pilot. One new idea out of Colorado was to take a look at how we transform the existing market\u2014we decided we needed to work with the State on how to fund a program that would go after existing mercury thermostats.<\/li>\n<\/ul>\n<ul>\n<li><strong>Voltage Optimization:<\/strong>\u00a0We\u2019ve talked about how technology could be used to optimize the grid to achieve savings, and settled on a goal of four to five percent efficiency gains. Ameren has already done a pilot on how voltage optimization can achieve these efficiencies. Based on these findings, and discussions with ComEd, we plan to ask the ICC to order ComEd and Ameren to undertake voltage optimization programs by 2015.<\/li>\n<\/ul>\n<ul>\n<li><strong>Microgrid Development:\u00a0<\/strong>One area that we identified that can support our other goals is a coordinated microgrid development strategy. Our goal is to have five microgrids in place by 2018. While our team facilitator was great throughout, this was probably the area where we needed\u2014and got\u2014the most help: defining what we meant by \u201cmicrogrid,\u201d looking at what the most likely scenarios were for a microgrid to be proposed (for example, by customers in one area that need extra reliability or resilience, such as our Illinois medical district), and identifying the cascading questions that come once you start looking at microgrids (such as asset ownership, cost recovery, and rate design). The biggest concern we identified here was that while we want to work with the utilities on microgrid solutions, we also want to make sure they don\u2019t monopolize the access to or assets on a microgrid.<\/li>\n<\/ul>\n<ul>\n<li><strong>Distributed Generation Adoption:<\/strong>\u00a0Illinois has lagged behind other places in using distributed generation, and we laid out a goal to remedy that: 150 MW of distributed solar, combined heat and power (CHP), and other technologies. The test will be piloting things like community solar and making sure that we connect those pilots with our microgrid strategy.<\/li>\n<\/ul>\n<ul>\n<li><strong>Energy Storage:\u00a0<\/strong>This might be our \u201creach\u201d goal: 5\u201325 MW of storage. For one thing, we realized we need to find out what is actually out there in terms of storage before we go any further. Then we realized we needed to reach out to a broader stakeholder community to identify what we would need to promote storage. Next steps include holding an Illinois \u201cstorage summit\u201d to figure out what our strategy should be.<\/li>\n<\/ul>\n<p>We\u2019ve made some progress already in laying the groundwork. Illinois recently passed a law providing $30 million for the procurement of solar distributed generation, and we have begun revising our net metering and interconnection standards. Now we need to expand our team to include other key stakeholders and begin looking at how where we can move these ideas from the flip chart to actual programs.<\/p>\n<p><em>David Kolata is the executive director of the Citizens Utility Board, a nonprofit, nonpartisan organization that represents the interests of residential utility customers in Illinois. The Illinois Accelerator team consisted of Andrew Barbeau, The Accelerate Group on behalf of Environmental Defense Fund; Susan Covino, PJM Interconnection; Lawrence Kotewa, Elevate Energy; Richard Munson, EDF; and Kristin Munsch, CUB\/Energy Foundry. <\/em><\/p>\n<p><em>This post originally appeared on the <a href=\"http:\/\/blog.rmi.org\/blog_2014_06_18_illinois_largest_utilities_embrace_the_smart_grid\">Rocky Mountain Institute blog<\/a>.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>By:\u00a0David Kolata, executive director of the Citizens Utility Board Over the next five to seven years, smart grid infrastructure, including advanced metering infrastructure (AMI), will be deployed for customers of the two largest utilities in Illinois: Commonwealth Edison and Ameren Illinois. Over five million new meters will be installed and over $2 billion of smart &#8230;<\/p>\n","protected":false},"author":40200,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[42996,4127,84830,40302],"tags":[],"coauthors":[],"class_list":["post-7414","post","type-post","status-publish","format-standard","hentry","category-smart-power","category-dynamic-pricing","category-grid-modernization","category-illinois"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Illinois\u2019 Largest Utilities Embrace the Smart Grid - Energy Exchange<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/blogs.edf.org\/energyexchange\/2014\/06\/19\/illinois-largest-utilities-embrace-the-smart-grid\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Illinois\u2019 Largest Utilities Embrace the Smart Grid - Energy Exchange\" \/>\n<meta property=\"og:description\" content=\"By:\u00a0David Kolata, executive director of the Citizens Utility Board Over the next five to seven years, smart grid infrastructure, including advanced metering infrastructure (AMI), will be deployed for customers of the two largest utilities in Illinois: Commonwealth Edison and Ameren Illinois. 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