Utility Horizons - Second Quarter 2013 - (Page 14)

Inside Tracks... Insider Perspectives on Utility Automation Management is the buzzword of 2013. Speaking of new ways to uncover and stimulate ROI, what is your take on industry adoption of programs like DR and DSM? storms like Sandy, underscores the role the consumer has to play in Smart Grid adoption and trends. How much do external, high profile events like storms affect utility investment decisions? Murray: When we say that “Demand Management” is the new buzzword of 2013, it’s important to note that changing the name alone doesn’t change its adoption or impact. Demand Response and Demand Side Management concepts have been around for decades, and yet, we have not seen a huge increase in the implementation of these technologies. To date, DR simply hasn’t engaged consumers and businesses as a valuable program. Instead, it is seen as more of a sacrifice or disruption of service with only a marginal payoff. However, as the economy continues to recover, energy costs and scarcity will also continue to rise, becoming “everyone’s problem.” Murray: In 2012, we experienced several major events external to the utility industry that have all helped shape the direction of investment and public opinion on Smart Grid. With events like Hurricane Sandy – and even the now infamous Super Bowl 2013 power outage – questions of grid stability and utility management have been thrust into the mainstream media, and as a result, consumer interest in Smart Grid is higher than ever. uhQ: How is the industry responding to this challenge – or is it? Murray: This year, we’ve already seen a shift to a broader Demand Management concept, which encompasses a number of advanced applications such as voltage reduction and direct load control. Demand Management will emerge as a replacement to Demand Response as reliance on consumer engagement as a driver for DR has produced lackluster results. We’ll also see a continued shift from straightforward peak period curtailment to more sophisticated continuous power balancing scenarios that utilize real-time data from AMI to allow for more frequent and precise adjustments to the power supply for maximized results – results that are virtually invisible to the consumer. uhQ: How are utilities reacting to this shift with so much effort and substantial resources shifted toward consumer engagement lately? Murray: While many progressive utilities will continue to employ consumer engagement strategies to collectively reduce total wholesale energy costs, most will begin to alter approaches to curbing demand behind the scenes with applications like voltage reduction and load control. Some will even take these applications a step further by leveraging AMI to more fully automate Demand Management, which will improve reliability, speed reaction times, and maximize effectiveness of the DM program. uhQ: While we’re discussing consumer engagement, your fourth prediction: Investments in outage management and AMI will rise in the wake of big 14 • UTILITY HORIZONS • Q2 - 2013 uhQ: Which of those events would you say has had the greatest impact? Murray: Looking specifically at outage management systems, recent news that the State of Massachusetts has fined its utilities almost $25 million for “systematic failures” in their preparation for Hurricanes Sandy and Irene has received a fair amount of attention. High profile outage events and subsequent regulatory actions will continue to force utilities across the country to focus on investigating and implementing ways to update their outage management and other critical systems in 2013. uhQ: Are there other dimensions or outcomes directly or indirectly associated with these kinds of internal and external calamities? Murray: Yes, utilities are also increasingly recognizing the importance of a real-time, push-based system for managing outages, both from a cost savings and a public relations perspective. These investments will typically go hand in hand with – and in some cases justify – investments in sophisticated AMI networks that can support a utility’s outage management system by pushing real-time data from smart meters to the utility’s central operations. While I should note that satisfying consumer opinion is not the sole budgetary driver for utilities, municipal and cooperative customers hold their utilities accountable. In fact, because co-ops are owned by the customers that they serve, they are obligated to employ the necessary technologies to continuously and reliably deliver the highest quality power services possible at the lowest possible cost. This makes the consumer a vital player in the widespread adoption of Smart Grid. uhQ: Considering your comments on how many www.UtilityHorizons.com  http://www.UtilityHorizons.com

Table of Contents for the Digital Edition of Utility Horizons - Second Quarter 2013

Utility Horizons - Second Quarter 2013
Publisher’s Message
Contents
The Queue
Automation Rising!
Inside Tracks
Focal Point
Automation and Innovation at Epcor Water Services
BLeading Edge: Advanced Technology Perspectives
Consumer Engagement: The Future Goes Mobile
Demand Response: Why the Future Is in the Cloud
Building Paths to Smarter Water Management
Bullet-Proofing Your Scada System Against the Evil-Doers
Education Matters
Standard Bearings
Regulation De Rigueur
On the Horizon
Purviews
Intersections
Eventualities
Thinking It Through With Sparky Flamedrop
Loose Ends

Utility Horizons - Second Quarter 2013

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