About Alcatel-Lucent

Alcatel-Lucent’s vision is to enrich people’s lives by transforming the way the world communicates. Alcatel-Lucent provides solutions that enable service providers, enterprises and governments worldwide to deliver voice, data and video communication services to end users. As a leader in carrier and enterprise IP technologies; fixed, mobile and converged broadband access; applications and services, Alcatel-Lucent offers the end-to-end solutions that enable compelling communications services for people at work, at home and on the move.

With 77,000 employees and operations in more than 130 countries, Alcatel-Lucent is a local partner with global reach. The company has the most experienced global services team in the industry and includes Bell labs, one of the largest research, technology and innovation organizations focused on communications. Alcatel-Lucent achieved adjusted revenues of €17.8 billion in 2007, and is incorporated in France, with executive offices located in Paris.

YOUR ENERGY AND UTILITY PARTNER

Alcatel-Lucent offers comprehensive capabilities that combine carrier-grade communications technology and expertise with utility industry- specific knowledge. Alcatel-Lucent’s IP transformation expertise and utility market-specific knowledge have led to the development of turnkey communications solutions designed for the energy and utility market. Alcatel-Lucent has extensive experience in:

  • Transforming and renewing network technologies;
  • designing and implementing SmartGrid initiatives;
  • Meeting NERC CIP compliance and security requirements;
  • Working in live power generation, transmission and distribution environments;
  • Implementing and managing complex mission-critical communications projects;
  • developing best-in-class partnerships with organizations like CURRENT Communications, Ambient, BelAir networks, Alvarion and others in the utility industry.

Working with Alcatel-Lucent enables energy and utility companies to realize the increased reliability and greater efficiency of next-generation communications technology, providing a platform for – and minimizing the risks associated with – moving to SmartGrid solutions. And Alcatel-Lucent helps energy and utility companies achieve compliance with regulatory requirements and reduce operational expenses while maintaining the security, integrity and high availability of their power infrastructure and services.

ALCATEL-LUCENT IP MPLS SOLUTION FOR THE NEXT-GENERATION UTILITY NETWORK

Utility companies are experienced at building and operating reliable and effective networks to ensure the delivery of essential information and maintain fl awless service delivery. The Alcatel-Lucent IP/MPLS solution can enable utility operators to extend and enhance their networks with new technologies like IP, Ethernet and MPLS. These new technologies will enable the utility to optimize its network to reduce both capital expenditures and operating expenses without jeopardizing reliability. Advanced technologies also allow the introduction of new applications that can improve operational and workflow efficiency within the utility. Alcatel-Lucent leverages cutting-edge technologies along with the company’s broad and deep experience in the utility industry to help utility operators build better, next-generation networks with IP/MPLS.

THE ALCATEL-LUCENT ADVANTAGE

Alcatel-Lucent has years of experience in the development of IP, MPLS and Ethernet technologies. The Alcatel-Lucent IP/MPLS solution offers utility operators the flexibility, scale and feature sets required for mission-critical operation. With the broadest portfolio of products and services in the telecommunications industry, Alcatel-Lucent has the unparalleled ability to design and deliver end-to-end solutions that drive next-generation communications networks.

Pepco Holdings, Inc.

The United States and the world are facing two preeminent energy challenges: the rising cost of energy and the impact of increasing energy use on the environment. As a regulated public utility and one of the largest energy delivery companies in the Mid-Atlantic region, Pepco Holdings Inc. (PHI) recognized that it was uniquely positioned to play a leadership role in helping meet both of these challenges.

PHI calls the plan it developed to meet these challenges the Blueprint for the Future (Blueprint). The plan builds on work already begun through PHI’s Utility of the Future initiative, as well as other programs. The Blueprint focuses on implementing advanced technologies and energy efficiency programs to improve service to its customers and enable them to manage their energy use and costs. By providing tools for nearly 2 million customers across three states and the district of Columbia to better control their electricity use, PHI believes it can make a major contribution to meeting the nation’s energy and environmental challenges, and at the same time help customers keep their electric and natural gas bills as low as possible.

The PHI Blueprint is designed to give customers what they want: reasonable and stable energy costs, responsive customer service, power reliability and environmental stewardship.

PHI is deploying a number of innovative technologies. Some, such as its automated distribution system, help to improve reliability and workforce productivity. Other systems, including an advanced metering infrastructure (AMI), will enable customers to monitor and control their electricity use, reduce their energy costs and gain access to innovative rate options.

PHI’s Blueprint is both ambitious and complex. Over the next five years PHI will be deploying new technologies, modifying and/or creating numerous information systems, redefining customer and operating work processes, restructuring organizations, and managing relationships with customers and regulators in four jurisdictions. PHI intends to do all of this while continuing to provide safe and reliable energy service to its customers.

To assist in developing and executing this plan, PHI reached out to peer utilities and vendors. One significant “partner” group is the Global Intelligent Utility network Coalition (GIUNC), established by IBM, which currently includes CenterPoint Energy (Texas), Country Energy (new South Wales, Australia) and PHI.

Leveraging these resources and others, PHI managers spent much of 2007 compiling detailed plans for realizing the Blueprint. Several aspects of these planning efforts are described below.

VISION AND DESIGN

In 2007, multiple initiatives were launched to flesh out the many aspects of the Blueprint. As Figure 1 illustrates, all of the initiatives were related and designed to generate a deployment plan based on a comprehensive review of the business and technical aspects of the project.

At this early stage, PHI does not yet have all the answers. Indeed, prematurely committing to specific technologies or designs for work that will not be completed for five years can raise the risk of obsolescence and lost investment. The deployment plan and system map, discussed in more detail below, are intended to serve as a guide. They will be updated and modified as decision points are reached and new information becomes available.

BUSINESS CASE VALIDATION

One of the first tasks was to review and define in detail the business case analyses for the project components. Both benefit assumptions and implementation costs were tested. Reference information (benchmarks) for this review came from a variety of sources: IBM experience in projects of similar scope and type; PHI materials and analysis; experiences reported by other GIUNC members; and other utilities and other publicly available sources. This information was compiled, and a present value analysis was conducted on discounted cash flow and rate of return, as shown in Figure 2.

In addition to an “operational benefits” analysis, PHI and the Brattle Group developed value assessments associated with demand response offerings such as critical peak pricing. With demand response, peak consumption can be reduced and capacity cost avoided. This means lower total energy prices for customers and less new capacity additions in the market. As Figure 2 shows, in even the worst-case scenario for demand response savings, operational and customer benefits will offset the cost of PHI’s AMI investment.

The information from these various cases has since been integrated into a single program management tool. Additional capabilities for optimizing results based on value, cost and schedule were developed. Finally, dynamic relationships between variables were modeled and added to the tool, recognizing that assumptions don’t always remain constant as plans are changed. One example of this would be the likely increase in call center cost per meter when deployment accelerates and customer inquiries increase.

HIGH-LEVEL COMMUNICATIONS ARCHITECTURE DESIGN

To define and develop the communications architecture, PHI deployed a structured approach built around IBM’s proprietary optimal comparative communications architecture methodology (OCCAM). This methodology established the communications requirements for AMI, data architecture and other technologies considered in the Blueprint. Next, an evaluation of existing communications infrastructure and capabilities was conducted, which could be leveraged in support of the new technologies. Then, alternative solutions to “close the gap” were reviewed. Finally, all of this information was incorporated in an analytical tool that matched the most appropriate communication technology within a specified geographic area and business need.

SYSTEM MAP AND INFORMATION MODEL

Defining the data framework and the approach to overall data integration elements across the program areas is essential if companies are to effectively and efficiently implement AMI systems and realize their identified benefits.

To help PHI understand what changes are needed to get from their current state to a shared vision of the future, the project team reviewed and documented the “current state” of the systems impacted by their plans. Then, subject matter experts with expertise in meters, billing, outage, system design, work and workforce management, and business data analysis were engaged to expand on the data architecture information, including information on systems, functions and the process flows that tie them all together. Finally, the information gathered was used to develop a shared vision of how PHI processes, functions, systems and data will fit together in the future.

By comparing the design of as-is systems with the to-be architecture of information management and information flows, PHI identified information gaps and developed a set of next steps. One key step establishes an “enterprise architecture” model for development. The first objective would be to establish and enforce governance policies. With these in place, PHI will define, draft and ratify detailed enterprise architecture and enforce priorities, standards, procedures and processes.

PHASE 2 DEPLOYMENT PLAN

Based on the planning conducted over the last half of the year, a high-level project plan for Phase 2 deployment was compiled. The focus was mainly on Blueprint initiatives, while considering dependencies and constraints reported in other transformation initiatives. PHI subject matter experts, project team leads and experience gathered from other utilities were all leveraged to develop the Blueprint deployment plan.

The deployment plan includes multiple types of tasks; processes; and organization, technical and project management office-related activities, and covers a period of five to six years. Initiatives will be deployed in multiple releases, phased across jurisdictions (Delaware, District of Columbia, Maryland, New Jersey) and coordinated between meter installation and communications infrastructure buildout schedules.

The plan incorporates several initiatives, including process design, system development, communications infrastructure and AMI, and various customer initiatives. Because these initiatives are interrelated and complex, some programmatic initiatives are also called for, including change management, benefits realization and program management. From this deployment plan, more detailed project plans and dependencies are being developed to provide PHI with an end-to-end view of implementation.

As part of the planning effort, key risk areas for the Blueprint program were also defined, as shown in Figure 3. Input from interviews and knowledge leveraged from similar projects were included to ensure a comprehensive understanding of program risks and to begin developing mitigation strategies.

CONCLUSION

As PHI moves forward with implementation of its AMI systems, new issues and challenges are certain to arise, and programmatic elements are being established to respond. A program management office has been established and continues to drive more detail into plans while tracking and reporting progress against active elements. AMI process development is providing the details for business requirements, and system architecture discussions are resolving interface issues.

Deployment is still in its early stages, and much work lies ahead. However, with the effort grounded in a clear vision, the journey ahead looks promising.

Real-Time Automation Solutions for Operation of Energy Assets and Markets

Areva T&D offers solutions to bring electricity from the source to end-users, building high- and medium-voltage substations and develops technologies to manage power grids and energy markets worldwide. It is a full-fl edged solution provider, offering safe, reliable, efficient power distribution down to the lowest level end-user consumption. Its software applications cover all the strategic operational business processes of an energy utility, including optimization of transmission and distribution grid operation; management of wholesale and retail market operations; and energy transaction solutions involving strategic business processes from energy trading, energy scheduling and dispatch management to demand-side management and settlements.

As long as advanced monitoring and control infrastructures have been used for grid management, Areva T&D has been at the forefront of innovation. Its strategy has always been to supply the most accurate real-time vision of the network infrastructure. This has led to several major breakthroughs, including Areva’s latest e-terraVision™ product.

The e-terraVision technology provides control rooms with higher level decision support capabilities through visualization tools, “smart applications” and simulation – thus improving situation awareness. This operator-friendly system enables power dispatchers to fully visualize their networks with the right level of situation awareness and proactively operate the grid by taking the necessary real-time corrective actions.

Expertise acquired in the high-voltage network enables Areva to supply distribution monitoring and control applications as well, and these have greatly influenced its distribution management strategy. As a result of early successes, the company developed an adapted eterra product offer for distribution customers.

Areva T&D continues to integrate unique new concepts to meet market trends and innovation. For example, Areva T&D SmartGrid solutions are designed to supply the following benefits.

  1. Alignment with deregulation trends in the consumer electricity market, including:
    • Making the process of changing energy supplier easier;
    • Providing better service quality for energy usage, including accurate and appropriate billing of actual consumed energy;
    • For specific countries where nontechnical losses are significant, allowing accurate audits to be conducted; and
    • Allowing for differentiated energy offerings with greater pricing flexibility and integration of renewable energy offers.
  2. Support for further structural benefits discussed and validated as part of international working groups on SmartGrid initiatives:
    • Better selectivity of the IEDs in medium- and low-voltage leads to reduce the number of customers affected by outages, thus improving service quality and reducing maintenance costs.
    • Careful monitoring of low-voltage grids, including consumption by phase and distribution cell – which is especially relevant in terms of renewable energy generation.
    • Online asset monitoring, which enables predictive maintenance, thus increasing assets’ life span.
    • Dynamic security management of primary and secondary networks. Introducing renewable energy sources into the distribution network poses a challenge. Combined infrastructures for monitoring systems for distribution and metering will be needed in the near future.

All these challenges have driven the definition and development of Areva SmartGrid solutions. The company’s enhanced supervision and control center products, including smart metering, supply all the advantages of automation technologies to distribution networks.

Delivering the Tools for Creating the Next-Generation Electrical SmartGrid

PowerSense delivers cutting-edge monitoring and control equipment together with integrated supervision to enable the modern electrical utility to prepare its existing power infrastructure for tomorrow’s SmartGrid.

PowerSense uses world-leading technology to merge existing and new power infrastructures into the existing SCADA and IT systems of the electrical utilities. This integration of the upgraded power infrastructure and existing IT systems instantly optimizes outage and fault management, thereby decreasing customer minutes lost (the System Average Interruption duration Index, or SAIDI).

At the same time, this integration helps the electrical utility further improve asset management (resulting in major cost savings) and power management (resulting in high-performance outage management and a high power efficiency). The PowerSense product line is called DISCOS® (for distribution networks, Integrated Supervision and Control System).

Discos®

The following outlines the business and system values offered by the DISCOS® product line.

Business Values

  • Cutting-edge optical technology (the sensor)
  • Easily and safely retrofitted (sensors can be fitted into all transformer types)
  • End-to-end solutions (from sensors to laptop)
  • Installation in steps (implementation based on cost-benefit analysis) system Values
  • Current (for each phase)
  • Voltage (for each phase)
  • Frequency
  • Power active, reactive and direction
  • Distance-to-fault measurement
  • Control of breakers and service relays
  • Analog inputs
  • Measurement of harmonic content for I and V
  • Measurement of earth fault

These parameters are available for both medium- and low-voltage power lines.

OPTICAL SENSOR TECHNOLOGY

With its stability and linearity, PowerSense’s cutting-edge sensor technology is setting new standards for current measurements in general. For PowerSense’s primary business area of MV grid monitoring in particular, it is creating a completely new set of standards for how to monitor the MV power grid.

The DISCOS® Current Sensor is part of the DISCOS® Opti module. The DISCOS® Sensor monitors the current size and angle on both the LV and MV side of the transformer.

BASED ON THE FARADAY EFFECT

Today, only a few applications in measuring instruments are based on the Faraday rotation principle. For instance, the Faraday effect has been used for measuring optical rotary power, for amplitude modulation of light and for remote sensing of magnetic fields.

now, due to advanced computing techniques, PowerSense is able to offer a low-priced optical sensor based on the Faraday effect.

THE COMPANY

PowerSense A/S was established on September 1, 2006, by DONG Energy A/S (formerly Nesa A/S) as a spin-off of the DISCOS® product line business. The purpose of the spin-off was to ensure the best future business conditions for the DISCOS® product line.

After the spin-off, BankInvest A/S, a Danish investment bank, holds 70 percent of the share capital. DONG Energy A/S continues to hold 30 percent of the share capital.