SMART METERING PROGRAM

Utility Case Study BC Hydro Smart Meters

Kai Hui Director of Technology

THE GRID IS THE BACKBONE OF OUR ECONOMY

Powers your homes lights, appliances, personal technology
Powers industry mills, mines, manufacturing plants Powers commercial buildings malls, offices, stores, greenhouses Powers infrastructure telecommunications, data centres, cable networks, transit systems, airports

THE ELECTRICITY SYSTEM IS LARGE & COMPLEX

Generation 41 Dam sites, 30 Hydro facilities and 9 Thermal units

Transmission

18,000 km of Transmission lines 260 substations, 22,000 steel towers

One Control Center Consolidation of 4 regional systems (including back-up)

Interconnect to Alberta and US

56,000 km of Distribution lines Approx. 900K poles, over 300K of transformers Serve 17 Non-integrated areas 70% of these customers clustered around the 49th parallel (in greater Vancouver and Victoria)

Distribution

Approx. 1.9M electric customers

Equal to the area of California, Oregon and Washington state combined

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WHY DO WE NEED TO MODERNIZE?

Our infrastructure is aging Investments in our electricity grid have not kept pace with todays global economy Most recent BC Hydro generating facility completed in 1984 System of electro-mechanical meters hasnt been upgraded in 50 years Demand on our electricity system is growing 50% more electricity over next 20 years Smart metering is the first step to a modern grid A more efficient system will save energy and money keeping Hydro rates lower than they would be without the upgrades.
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PROGRAM SCOPE
NEW METERS Upgrade old meters to smart meters Install meter communications network Implement automated data collection system SYSTEM METERING Install distribution grid meters Develop theft analytics software Identify electricity loss, including diversion and theft

IN-HOME FEEDBACK TOOLS Launch new conservation website Introduce in-home display devices

GRID MODERNIZATION Adopt standards for clean energy transportation Support micro-grids & distributed generation Enable an intelligent, self-healing grid that can accommodate two-way flow of electricity

SMI BUSINESS CASE - BENEFITS SUMMARY

Benefits Category Operating Efficiencies & Avoided Capital Benefits Description Meter Reading Automation Meter Sampling Remote Re-connect Automation Distribution Asset Optimization Outage Management Efficiencies Continuous Optimization & Load Research Call Centre & Billing Energy Savings Volt VAR Optimization Commercial Customer Sites Volt VAR Optimization Distribution System Revenue Protection Theft Detection Gross Benefi ts $261 65 49 15 10 6 10 139 106 802 $1,463 179 226 $1,868 (12) (31) (6) (70) ($164) (69) (6) ($239) Cost to Realize Benefit ($39) (4) (2) Net Benefi ts $222 61 47 15 10 6 (2) 108 100 732 $1,299 110 220 $1,629 Business Case Component $ Million (PV)

Gross benefits attributable to SMI infrastructure, minus costs related to the achievement of individual benefits Less: Ongoing operating and maintenance expenses and incremental asset replacement capital, based on the economic lives of each asset type Less: SMI Project costs (capital and deferred expenses) of $930 M (nominal)

$ 1,629

(330)

(779)

Sub-Total: Derived from BC Hydro Operational Efficiencies Capacity Savings Energy Savings Voluntary Time-of-use Rates Conservation Tools (in-home feedback tools) Total Benefits (PV, $Millions), through F2033

Net Present Value for period F2006 to F2033 Assumptions:

$520

8% discount rate Value of energy $124 per MWh (F2010) Value of capacity $88 per KWyr (except TOU) Asset life:
Smart Meters 20 years Distribution system meters 15 years FAN 20 years IT hardware 5 years WAN 35 years IT software 10 years

http://www.bchydro.com/etc/medialib/internet/documents/smi/smi_business_case.Par.0001.File.smi_bu siness_case.pdf

Why CISCO Top 10 Reasons

1. 2. 3. Open standards based solution
Application Layer

Worldwide leader in networking for the Internet. Began in 1984; $10.75B revenue; 73,000 employees. Products and research focused on global IP networking products Cisco hardware platform provides the following additional features to support the move into Smart Grid: robust physical design built in router for connecting Smart Grid field devices built in GPS to support dynamic connectivity built in Wi-Fi for future mobile workforce capabilities fiber and copper interface ports for connecting smart grid field devices (allows sharing backhaul)

DA

IEEE 1815 IEC-61850 DNP3

Smart Metering

C12.22

RF LAN NAN Layer

Itron LinkNet Itron 900Mhz Radio (IEEE 802.15.4e ready) Itron 900Mhz Radio (IEEE 802.15.4g ready)
2010 Q4 SR3.0
2011 Q1 Q2 Q3 Q4

DLMS/COSEM CoAP / HTTP / SNMP TLS/DTLS UDP/TCP RPL IPv6 6lowpan

IEEE 802.15.4e

Radio Hardware

Network Firmware

FHSS IEEE 802.15.4g 900Mhz (FSK)

2012 Q1 Q2 Q3 Q4 2013 Q1
IEEE 802.15.4g 900Mhz (FSK,DSSS, OFDM)

4. 5.

built in serial ports for legacy DA devices

modular expansion slots for future interfaces and radios planned integrated WiMAX module and IEEE 1901.2 PLC module embedded Linux applications for future, and third party, functionality upgradeable memory Power Over Ethernet port for WiMAX modem eliminates second power connection and allows modem to utilize router backup battery

2014 Q1

2015 Q1

SR IPv6 3.7 EFT

IPv6 1.0

Cisco offers IPv6 capability and experience to move into next generation mesh IP routing protocols Security built directly into network layers versus Itron application specific security which results in a more efficient, effective security implementation. Supports secure peer-to-peer traffic Enables Quality of Service (QoS) on the Smart Metering network to differentiate and prioritize different traffic types (metering traffic versus distribution automation traffic versus mobile workforce traffic as an example) Allows network to be a carrier of multiple applications without having to traverse though smart metering head ends, including water and gas meters on isolated networks. Superior traffic classification, congestion management and traffic conditioning Cisco collector supports IEEE1901.2 PLC for hard to reach meters

6.

7. 8. 9.

10. Greatly enhanced Network Management System to include IP management of millions of endpoints 7

Network Performance Expectations

Support 2+ millions of smart meters Support 40k DA devices Support 50k System Meters Read response of 3 -10 seconds to retrieve data from a meter 1 way communication to a DA device of 3 seconds

Source: Cisco Developer Network

Cisco Architecture

Source: Cisco Developer Network

BC Hydro Meter Network

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Current Deployment
Over 1.5 million meters installed to date Over 1200 CGRs deployed

WAN backhaul deployed with 3G cellular

WAN with BGAN satellite and WiMAX in testing phase Starting network optimization Planning migration to Cisco IPv6 mesh network

Adjusting To Our New Network

More stringent requirement to manage changes on the network Volume and velocity of data

Close relationship between IT and Telecom for implementation and operations

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BC Hydros Multi Service Grid Network (MSGN)

If you build it, they will come

1989 Field of Dreams

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Thank You!

Q&A

Please visit www.bchydro.com/smartmeters for the most up-to-date information. SmartMeters@bchydro.com

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