Matt Futch GEO presentation.

1. Energy Grid
Conservation Efficiency
Creating Colorado’s
Smart Grid Deployment Roadmap
Transportation Renewable
Electrification Integration
India-U.S. Conference
May 16, 2011
Denver, Colorado

2. Presentation Topics
Current State: Smart Grid in Colorado
 Project Development
 Regulatory Environment
 General Observations
Colorado Senate Bill 180
 Purpose
 Structure
 Primary Outcome
Reconfiguring the System
 Colorado Policy Goals
 Market Barriers
 Utility Business Model

3. Colorado Smart Grid
Project Development
 Xcel Energy Smart Grid City (Boulder, CO)
 Project currently in Phase 4, the last planned stage
 Retroactive CPCN process presents regulatory uncertainty
 Pricing Pilot has been approved by PUC
 Business model and system architecture in a debate mode
 Fort Collins Power, Fort Zed (Fort Collins, CO)
 Project has received QECB bond allocation approval from GEO
 Focus is on micro grid application tying 5MW of DG
 Multiple generation sources are being energized by end summer
 Ability to tie multiple DG systems for dispatch is major premise

4. Colorado Smart Grid
Project Development
 AMI Expansion, Black Hills Energy (Pueblo, CO)
 DOE grant has enabled meter replacement for entire service
territory
 Utility has taken a meter replacement focus in this project
 Contrast with Xcel project is a case study in divergent approach
 AMI Expansion, Poudre Valley Rural Electric Assoc
 DOE grant has enabled meter replacement
 Utility will be conducting a pricing pilot for TOU, Peak pricing
 Project demonstrates a deliberate and longer term commitment
to smart grid technology for a distribution cooperative

5. Colorado Smart Grid
Regulatory Environment
 Colorado regulatory landscape
 A bi-furcated market with mixed incentive structures
 PUC generally supportive of smart grid technology but
concerned about technology obsolesence
 Non investor owned utilities show flexibility and potential for
longer range vision
 Current policy reflects market disaggregation
 Regulated utilities under a 30% Renewable Energy Standard
 Public utilities under a 10% Renewable Energy Standard
 Regulated utilities under high DSM mandate
 Public utilities under no efficiency mandate

6. Colorado Smart Grid
General Observations
Smart grid planning and implementation
 Cost and lack of systems approach are
hindering investment
 Currently power systems engineering and utility-
centric
 Healthy tension between power industry and
vendor community but not benefiting consumers
 Government and industry must offer a clean
and accessible vision demonstrating benefits of
smart grid

7. Colorado Smart Grid
Senate Bill 180
SB10-180: Colorado Smart Grid Task Force
Established an 11-member Task Force to develop
the “2011 Colorado Smart Grid Report”
 Bill Signed by Governor Ritter on June 11, 2010
 Bi-partisan sponsorship with PUC support
 Funded by American Recovery and Re-investment Act

8. Colorado Smart Grid
SB 180 Structure
Task Force Commission by:
– Governor / Senate President / House Speaker /
Senate and House Minority leaders
11 Members representing key stakeholders
– 2 IOU, Municipal and Cooperative Electric Utilities
– Consumer protection / Environmental Issues
– Commercial Developers / Engineering Standards
– Energy Policy and Regulation / Academic R&D
– Director of the Governor’s Energy Office

9. Colorado Smart Grid
SB 180 Purpose
LEGISLATIVE REQUIREMENT:
The Task Force’s Primary Task was to produce a report
containing recommendations and analysis on the
feasibility, costs, and timing of transitioning to a secure,
resilient, and technologically advanced electric grid, for
use by Colorado residents, business, and governmental
agencies.
2011 COLORADO SMART GRID PLAN:
Submitted to Colorado General Assembly and Public
Utilities Commission on January 20th, 2011

10. Colorado Smart Grid
SB 180 Primary Outcomes
A set of recommendations outlining how
consumers and utilities can cooperatively
build a new relationship between energy
generation, usage and technology

11. Colorado Smart Grid
Governor’s Energy Office Smart Grid Policy
The Governor’s Energy Office identifies the following
priorities for the development of smart grid in Colorado
1. Accelerate and invest in technologies which enable system
integration of renewables, energy storage, vehicle electrification and
demand response
2. Focus on technologies which enable CO2 emission reductions
3. Account for and provide regulatory certainty on investments which
maintain and improve grid reliability
4. Provide funding and expand academic capacity for new workforce
5. Promote energy conservation through technology and pricing signals

12. CO System Current State
CHALLENGED BY SYSTEM INTEGRATION
Study Area Dispatch - Week of April 10th - No Wind Study Area Dispatch - Week of April 10th - 10% R
50,000
50,000
40,000
40,000
30,000
30,000
MW
MW
20,000
20,000
Nuclear Steam Coal Wind
Solar CSP w/ Storage Solar PV Combined Cycle 10,000
10,000
Gas Turbine Pumped Storage Hydro Hydro
0
0
MON APR 10 TUE APR 11 WED APR 12 THU APR 13 FRI APR 14 SAT APR 15 SUN APR 16
MON APR 10 TUE APR 11 WED APR 12 THU APR 13 FRI APR 14 SAT APR 15 SUN APR 16
Study Area Dispatch - Week of April 10th - 30%R
Study Area Dispatch - Week of April 10th - 20%R
50,000
50,000
40,000
40,000
30,000
30,000
MW
MW
20,000
20,000
10,000 10,000
0 0
MON APR 10 TUE APR 11 WED APR 12 THU APR 13 FRI APR 14 SAT APR 15 SUN APR 16 MON APR 10 TUE APR 11 WED APR 12 THU APR 13 FRI APR 14 SAT APR 15 SUN APR 16

13. Colorado Smart Grid
PLAN THE WORK AND WORK THE PLAN

14. Colorado Smart Grid Roadmap
RECOMMENDATIONS
• The appropriate governing bodies should explore options and
market structures that would provide incentives for Smart Grid
development.
• The PUC and other governing bodies should examine and develop
regulatory structures that will provide utilities with incentives to
innovate and foster small business development
• Customers must sign informed consent to release information to
third parties (signed consent may be electronically obtained), except
in those instances where access is compelled by law enforcement.
• Consumers should have access to their own energy usage,
production, cost, pricing, and time-of-use data

15. Colorado Smart Grid Roadmap
RECOMMENDATIONS
• Promote open Smart Grid technology standards that encourage
competition, innovation, market development, and broad
participation.
• To increase internal cohesion and develop leadership around Smart
Grid governance in Colorado, should participate in plug-in hybrid
electric vehicle (PHEV) stakeholder groups to recommend
appropriate infrastructure decisions
• Support a flexible, open, secure, and technical standards–compliant
architecture to allow consumers and power providers to exchange
information to support the provision of further services to/from the
grid. A vendor- and platform independent structure.

16. Colorado Smart Grid Roadmap
RECOMMENDATIONS
• Encourage the consolidation of Balancing Authorities to better diversify
the available pool of utility-scale renewables.
• Explore alternative business and regulatory models to address cost
recovery/rate mechanisms related to utility losses associated with
demand-side management.
• Identify specific incentives for utilities to innovate where value is
produced for the consumer but may not fit with the standard utility
business model.
• Identify and adopt an industry-standard definition of grid efficiency.

17. Thank you
Matt Futch
Utilities Program Manager
Governor’s Energy Office
matthew.futch@state.co.us