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Automation Insight
October 2008
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The Utility of the Future - An Emerging Vision Takes Shape
Unprecedented Challenges and the Forces of Change
The electric power industry faces challenges that rival those of any period in its history. Among these challenges, and the many debates about how to move forward, a vision is emerging that will transform the utility industry. Utility "Smart Grid" and advanced metering infrastructure (AMI) initiatives are introducing advanced digital technologies into the power delivery system and end-user interface, driven by numerous industry factors. Consensus is growing that real-time pricing and load management, as well as integration of behind the meter, distributed generation and other services, are essential to economic growth and environmental well-being. Read more.
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New Security Standards Have Utilities, Vendors Scrambling for Compliance
Earlier this year, the North American Electric Reliability Corporation (NERC), formed by the Federal Energy Regulatory Commission (FERC), established a set of critical infrastructure protection (CIP) security standards that are mandated requirements for U.S. electricity distributors. The standards were developed over the course of three years with input from the utility industry. FERC, acting on responsibility to oversee the reliability of the bulk power system provided to it in Energy Protection Act (EPAct) 2005, approved the eight standards in January of this year. Further, the Department of Homeland Security, after members of a cyber security-focused subcommittee criticized NERC for a perceived lack of urgency on security policymaking, has mandated that utility and energy companies comply with CIP guidelines by 2010. Meanwhile, FERC has suggested to Congress the need for increased authority to enhance its regulatory mission to defend against cyber security threats alongside the Department of Homeland Security. If passed, such legislation would also likely provide FERC with more oversight and leverage over AMI/Smart Grid projects. Read more.
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Water Utilities Increasingly On the AMI Bandwagon
In what is clearly still a nascent market for AMI deployment, much of the attention has been focused on efforts made by electric and gas utilities. However, the smart metering technology pursued by electric and water utilities also are readily capable of recovering water metering information. Regulatory mandates—such as Section 1252 of EPAct, which requires most electric utilities to offer time of use rates to their customers or justify why not—also are impacting the Boards of Directors of most publicly owned utilities, many of which own water assets. In addition, the benefits that can be arrived from AMI / Smart Grid are also applicable to water utility operations and customers. Oftentimes, utilities with a water component find that using the same infrastructure for electric, gas and water components enhances the business case benefits, and thus the water aspects of deployment actually support the overall electric utility business case. Read more.
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Did You Hear?
At Autovation 2008, held in Atlanta Sept. 7-10, Rob Wilhite, KEMA’s Senior Vice President, Intelligent Networks and Communications, was one of three distinguished recipients of Utilimetrics’ Presidents Award.
American Electric Power, Consumers Energy, Pacific Gas and Electric Company, Reliant Energy, Sempra, and Southern California Edison are working with the ZigBee(R) Alliance and the HomePlug(R) Powerline Alliance to develop a common application layer integrated solution for AMI and HAN.
Itron Inc. and SmartSynch announced that they have extended their existing partnership to include delivery of cellular communications for AMI solutions into the Open Way® CENTRON® meter by Itron.
Certicom Corp. announced that Daintree Networks, a provider of design verification and operational support tools for wireless embedded networks, has licensed Certicom's Security Builder® MCE™ and Security Builder® Crypto™ products in order to bring to market secure, low cost and low bandwidth ZigBee Smart Energy networking products.
Trilliant announced that it has closed a $40 million equity investment led by an affiliate of MissionPoint Capital Partners.
Read more.
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About Automation Insight
Automation Insight is a complimentary monthly publication designed specifically for the utility industry and those serving the utility industry. For comments or suggestions on future article topics, please contact Will McNamara, Managing Editor, will.mcnamara@us.kema.com, tel. 781.534.8621.
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[download] Automation Insight - October 2008 (.pdf 84 kb)
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