IEEE Power & Energy Magazine - September/October 2016 - 74

The electrical grid of the future is a classless society,
one where transactions are governed by local conditions:
space, time, and fields.
Understand the True Scope of the Problem

in the best case, this phase involves one to two years of
conversation and education of policy makers, regulators,
energy providers, and consumers to understand the limita-
tions of the current framework and create a desire to design a
new system. however, the more likely scenario is a five to ten
year period of incremental changes that chase technologies
(e.g., value of solar tariffs) and establish new special interests
before ultimately becoming too complex to continue.
Aggregate Spatial Data

This requires six to 12 months of utility infrastructure analysis
to identify and properly structure distribution-node-level data
on capacity, rate base, and marginal capacity/energy costs.
Develop Temporal Forecasts

This requires six to 12 months of analysis to develop one-year
ahead load forecast probability distributions at the distribution
node level at ~15 min resolution.
Granular Allocation of Costs

a six-month effort is likely required to combine the high-
resolution spatial infrastructure data with the high-resolu-
tion load forecasts to develop node-specific time-of-use cost/
price templates
Tariff Development and Negotiation

This is likely a nine to 18-month process of developing new
tariffs consistent with the new cost allocations. special
attention will be needed to create risk control methods for
consumers as well as engagement with political leaders to
create offsets and/or public assistance for vulnerable popula-
tions that are adversely affected by the rate changes
Roll-Out and Ramp-Up of New Programs

This is likely a four to eight-year period over which consumers
are transitioned to the new rate structures. "shadow billing"
may be employed in the beginning to show customers what
their bills would be under the new programs while keeping
them on legacy rates. pilot programs in specific towns or ser-
vice areas may transition more quickly and serve as a test bed
for learning to inform modifications.
Ongoing Refinement

in addition to the feedback from pilots, the spatial and tem-
poral data will need to be refreshed annually as the system
evolves with new der installations, both utility owned
74

ieee power & energy magazine

and customer owned. Taking into account the drive toward
independent der owners and moving toward a fully inte-
grated grid, utilities are currently at a crossroad for devel-
oping viable future business models. any future sustainable
model must recognize the emergence of ubiquitous, autono-
mous, der agents: consumers, businesses, and standalone
appliances (e.g., evs). Moreover, to be robust to the rapidly
changing technological landscape, the intrinsic heterogene-
ity of these agents must be recognized, and they must remain
technology-agnostic as der resources, applications, and
algorithms change. in other words, the electrical grid of the
future is a classless society, one where transactions are gov-
erned by local conditions: space, time, and fields.

For Further Reading
M. Mcgranaghan, d. houseman, l. schmitt, F. cleveland,
and e. lambert, "enabling the integrated grid: leverag-
ing data to integrate distributed resources and customers,"
IEEE Power Energy Mag., vol. 14, no. 1, pp. 83-93, Jan.-
Feb. 2016.
J. e. schatz, d. divan, and r. Moghe, "grid edge control
of distribution feeders: Field data validates value to utili-
ties," in Proc. DistribuTECH-16, orlando, Fl, Feb. 2016.
T. Fenimore, s. abdelrazek, s. Kamalasadan, and J. h.
r. enslin, "optimal battery energy storage smart manage-
ment system for multiple value streams using weather pat-
terns," in Proc. DistribuTECH-16, orlando, Fl, Feb. 2016.
J. h. r. enslin, "integration of photovoltaic solar power:
The quest towards dispatchability," IEEE Instrument. Measure. Mag., vol. 17, no. 2, pp. 21-26, apr. 2014.
p. Kind, Disruptive Challenges: Financial Implications
and Strategic Responses to a Changing Retail Electric Business. Washington, d.c.: eei, 2013.
M. Molina and M. Kushler, "policies matter: creating
a foundation for an energy-efficient utility of the future,"
White paper, american council for an energy efficient
economy, Washington, d.c., June 2015.

Biographies
Johan H. Enslin is with the university of north carolina
at charlotte.
Ronak Bhatt is with the university of north carolina at
charlotte and rin advisors.
Robert Cox is with the university of north carolina at
charlotte.
p&e
september/october 2016

Table of Contents for the Digital Edition of IEEE Power & Energy Magazine - September/October 2016