US utilities face a number of pressures. Growing energy demands threaten to degrade the reliability of the nations existing electricity grid. Consumers want greater choice in when, how much and what kind of energy they use. Environmental sustainability is a growing concern. So is energy availability. In response to these and other challenges, Xcel Energy launched an innovative solution that is poised to transform utilities relationships with customers, regulators and municipalities and revolutionize the way energy is delivered, managed and used. 

The cornerstone of this solution is an intelligent, auto-balancing and self-monitoring smart grid solution that combines traditional with digital technologies and enables two-way communications across the delivery chain. The smart grids fully network-connected system identifies all aspects of the power grid and communicates its status and impact of consumption decisions (including economic, environmental and reliability impacts) to automated decision-making systems on that network. Xcel Energys vision for the smart grid takes advantage of a number of system technologies currently available and integrates them into a real-time, automated neural network that manages all of the variables involved in delivering energy to the consumer.

In 2008, Xcel Energy began deploying the nations first SmartGridCity in Boulder, Colorado. In the first phase of the project, completed in August, Xcel Energy installed full-system capabilities, including in-home automation technologies and monitoring devices. By the end of the year, the company had installed nearly 14,000 smart meters, upgraded two energy substations and five feeder systems with smart technologies, and launched development of a Web portal that would allow consumers to monitor their energy usage and access information for better home energy management.  

During the second phase of the SmartGridCity project, which is currently underway, Xcel Energy is overseeing the solutions full deployment to the broader Boulder consumer base. This phase of work involves completing the installation of a distribution and communication network in Boulder (an effort that encompasses two additional substations, 20 feeder systems and up to 25,000 consumer premises), expanding the installation of in-home automation technologies, and integrating plug-in hybrid electric vehicles, solar and wind co-generation sources onto Boulders smart grid. 

The final phase of the SmartGridCity project, which will take place during the last half of 2009, will include detailed monitoring and analysis of the implemented system in an effort to prove (or disprove) the various hypotheses that Xcel Energy is testing with this initiative.  At the end of that phase, Xcel Energy will determine what worked and what needs to be refined, and then put together a comprehensive implementation plan for deployment of appropriate SmartGrid technologies throughout its service territory and for presentation to various regulatory bodies.  

SmartGridCity is demonstrating how new and emerging technologies can converge to provide improved services for utility consumers and transform the customer-utility relationship. Whereas most customers only interact with their utility companies when they receiveand submit payment fora bill, smart grid technologies provide detailed usage information that enables customers to be active participants in the delivery and management of the energy they use. The smart grid similarly bolsters utilities relationships with regulators (who are looking for innovative ways to improve system reliability and drive sustainable behaviors), with municipalities (which are looking to provide a better quality of life for residents) and with state governments (which must support smart grid initiatives under the US Energy Independence and Security Act of 2007).

SmartGridCity will deliver a host of benefits and will serve as a model for other utilities looking to move toward carbon neutrality and a sustainable energy future.

The technologies that underpin the SmartGridCity project are being provided and/or managed by the Xcel Energy Smart Grid Consortium Partners: Accenture, Current Group, GridPoint Inc., OSIsoft, Schweitzer Engineering Laboratories, SmartSynch, Inc. and Ventyx. The smart grid technologies fall mainly into three broad categories:  

High-Speed Connections: A fundamental component for making the smart grid work is a robust and dynamic communications network that allows the utility to engage in real-time, two-way communications throughout the grid and also interact with each grid component from fuel source to end use. This network is based on thousands of advanced diagnostic sensors distributed throughout the grid, connected via fiber-optic cables for high-speed system communications. These components tie the entire system together and make it possible for Xcel Energy to monitor the systems performance in real-time and respond immediately to locations experiencing an electrical problem.  It enables the ability for Xcel Energy to send and receive signals from points throughout the grid, including a customers home, for faster, immediate responses and improved system reliability. And they allow consumers to pre-select, program, monitor and better manage their energy usage.

Substation and Distribution Automation: SmartGridCitys state-of-the-art technology infrastructure monitors, automates and controls every aspect of Xcel Energys energy distributionfrom the transmission lines to its substations and ultimately to the residential smart meters. Within this new infrastructure, intelligent substations allow Xcel Energy to better monitor and adapt to customer needs, while making real-time decisions based on current grid conditions. The feeder distribution system consists of communication-enabled smart reclosers, switches and other smart feeder assets to provide power system information and perform automated functions. These assets allow Xcel Energy to monitor power flow, outages and overall system health. Power analyzers, which are installed at each distribution transformer and incorporated into smart meters, provide additional real-time data on power consumption, outages, restorations and fault locations. 

Home Area Networks: Within the SmartGridCity network, homes are also smart, using a web portal to display energy usage information as well as integrating thousands of in-home control devices to fully automate energy use. Devices include smart thermostats, which can communicate with the grid and adjust device settings to help optimize load management, are also a critical part of the home area network. Other smart devices can be used to control appliances, pool pumps or the way electricity is sent back to the grid via plug-in hybrid vehicles or other storage mechanisms in the home.

Other key technology components helping bring the smart grid to life are utility devices such as smart meters, monitors and fuses, which support communications throughout the grid infrastructure, and dispatchable distributed generation technologiessuch as plug-in hybrid electric vehicles, battery systems, wind turbines and solar panelsthat are designed to minimize the carbon footprint and eliminate the variable nature of renewable energy sources. Finally, SmartGridCity relies on data management tools and neural networks to bring all energy use and distribution information together in an understandable format that facilitates better energy management decision-making. 

Yes

Yes

The smart grids dynamic communications network and smart substations are operational, providing real-time, two-way communications that enable remote monitoring and optimized system performance in Boulder. This capability is already benefiting system planners and engineers by providing real-time system intelligence, which allows them to more effectively design the distribution network and map out transmission lines, transformers and substations for optimal energy delivery. 

When the SmartGridCity infrastructure is completed in 2009, it will deliver significant benefits for: 

Xcel Energys consumers: Boulder residents will be able to manage their energy consumption more wisely with automated control devices. They will be able to take greater advantage of energy-saving incentives, renewable energy sources and smart appliances, and use online tools to track their own energy use and make changes that better fit their lifestyle, environmental philosophy and budget. They will also eventually be able to activate real-time pricing programs that lower the cost of electricity when overall grid demand is low. 

Xcel Energy: The smart grid has the potential to generate improvements in service reliability, substantial reductions in the amount of power lost due to traditional grid inefficiencies, and significant decreases in residential peak electricity demand. With advanced, integrated applications, the utility looks forward to improving its meter reading accuracy and efficiency, its revenue assurance capabilities and its call center performance. Together, these improvements are expected to generate significant operating cost savings each year. Additionally, Xcel Energy employees will benefit from greater job satisfaction and productivity due to high-quality, real-time smart grid system information, with which they can make better and faster decisions and carry out their activities more efficiently. Xcel Energy also looks forward to attracting talented new employees interested in working on a once-in-a-lifetime project and for a utility committed to applying new technologies to create a secure and sustainable energy future. 

The City of Boulder: Boulder, Colorado, is recognized as one of the most progressive and environmentally conscious cities in the United States. Evidence of this can be seen in the fact that the city has passed a resolution to reduce its greenhouse gas emissions in alignment with the Kyoto Protocol, and established the nations only carbon tax on electricity usage, which funds initiatives aimed at reducing greenhouse gas emissions. Establishing itself as the nations first SmartGridCity will reinforce Boulders commitment to environmental protection and affirm its position as a leader in sustainability in the United States. The smart grid will ultimately allow Xcel Energy to retire some of its existing power plants. Additionally, if the smart grid solution reduces consumers electricity usage by just 2.5 percent, carbon emissions will drop by more than one million tons annually. Decreasing line losses by 20 percent will eliminate an additional 500,000 tons of carbon dioxide each year.

Other energy providers and industry regulators: Utilities around the world struggle to satisfy their consumers rising demands for energy and the global demand for carbon neutrality. SmartGridCity provides a model for other utilities and regulators looking to not only improve grid performance and reliability, but also distribute energy in ways that achieve a secure and sustainable energy future. 

These benefits are just the beginning. The smart grid is expected to support additional capabilities in the future that consumers, consortium members, and the industry cannot yet imagine.

SmartGridCity system planners are already benefitting from this solution. As they design the distribution system in Bouldermapping out transmission lines and transformers and substationsthey now have system intelligence that lets them understand how the system is loaded. For example, planners had assumed that one transformer was at its capacity. Real-time system data revealed that the transformer was, in fact, only 20 percent loaded. That insight allowed them to avoid significant replacement costs and effort. 

Consumers in Boulder will reap the greatest benefit of the smart grid, which will allow them to make intelligent and automated energy choices based on their individual preferences and priorities. This is, in fact, already occurring, albeit on a limited scale. 
 
In August 2008, Xcel Energy unveiled the first completely integrated SmartGridCity residence in Boulder. The Chancellors Residence at the University of Colorado is now a showcase for multiple smart grid technologies that enable a variety of capabilities such as: 

- Plug-n-play integration of six-kilowatt photovoltaic solar panels
- Real-time monitoring of solar energy production
- A plug-in hybrid electric vehicle, which is charged through a dedicated outlet in the garage during off-peak periods, when energy rates are lower 
- A password-protected Internet portal that allows family members to manage their energy online and automatically reduce consumption by scheduling energy usage among multiple appliances and devices according to their preferences
- Instant and clean backup power that is provided, when needed, through advanced batteries

With a fully functional online energy management system, the Chancellor and his family have already created an energy profile that allows them to consume energy more efficiently, monitor the production of solar energy in the home, and access real-time consumption data that highlights the results of the familys conservation efforts. The new system, complete with four thermostats throughout the home, also enables the family to quickly and automatically change temperature settings according to their preferences and schedules. We are pleased to be the first fully functional Smart Home in SmartGridCity, said G.P. Bud Peterson, University of Colorado Chancellor. The University of Colorados three-decade leadership role in sustainability inspired Val and me to take this important step. Partnering with Xcel Energy on this project is something that we can use for the benefit of [the University], but also the benefit of Boulder residents.

Ray Gogel, chief administrative officer and vice president of customer and enterprise solutions at Xcel Energy agrees. We see [SmartGridCity] as a living laboratory that will give our customers and us a better understanding of the most promising technologies in the energy field today. The applications at the Chancellors residence have already demonstrated that providing people with knowledge is the answer to conserving power.

Xcel Energy is applying the densest and most varied concentration of smart grid technologies to date in the United States. It is doing so with the exceptional skills of its Smart Grid Consortium, which comprises leading technologists, engineering firms, business leaders and IT experts from across the United States. The Consortium partners include: 

Accenture, which is overseeing the integration of diagnostic software, intelligent distribution assets and outage management systems into Xcel Energys existing IT infrastructure, managing data flows and automating processes related to the transmission and distribution of electricity.

Current Group, whose fully integrated CURRENT Smart Grid solution combines advanced sensing technology, two-way high-speed communications, 24/7 monitoring and enterprise analysis software and related services to deliver location-specific, real-time data.

GridPoint Inc., whose GridPoint SmartGrid Platform provides an intelligent network of distributed energy resources that controls load, stores energy and produces power. The platform enables Xcel Energy to evaluate SmartGridCitys capabilities in a variety of areas such as demand management, supply management, solar photovoltaic integration, online energy management and customer support.

OSIsoft, whose PI System is bringing all operational data into a single system for users at all levels of Xcel Energy. This system, which is the industry standard in enterprise infrastructure, enables the collection and management of the time-series data required to monitor and implement the SmartGridCity concept.

Schweitzer Engineering Laboratories, which is providing products and services needed to establish SmartGridCitys "smart substation" network.

SmartSynch, Inc., which is providing wireless smart metering, energy management, demand response and carbon monitoring solutions to commercial and industrial customers throughout Boulder. 

Ventyx, which is providing work management solutions for deploying smart grid technologies. These solutions allow Xcel Energy to manage maintenance and repair for service requests triggered by the smart grid, analyze and plan for price and load forecasts, and connect customer actions to trading and investment decisions in real time.  

Whereas other companies have experimented with smart meters and home area networks, none has integrated digital and traditional technologies with smart substations to create a smart grid power system that provides an intelligent, auto-balancing and self-monitoring energy solution. SmartGridCity is the worlds first community with a fully integrated portfolio of smart grid technologies designed to offer environmental, financial and operational benefits. It combines traditional with digital technologies, accommodates the increasing residential use of renewable energies, and integrates every aspect of the energy value chain from generation through consumption. Importantly, the smart grid also addresses the desire of consumers to be more economical and sustainable in their energy consumption. 

With its SmartGridCity project, Xcel Energy is helping to transform an industry that has seen relatively little change during its long history. The smart grid improves grid performance and reliability. It transforms how utility workers will perform their jobs. It delivers electricity in a way that satisfies customers needs for energy and sustainable solutions. And it gives consumers real-time information about their energy usage, which allows them to better manage the environmental impact of their energy consumption choices. In these ways, the smart grid is not only transforming customer relationships, but also enabling consumers and utilities to work together to create a sustainable energy future.

Research and development in the utility industry tends to focus on well-established, non-controversial areas that will ultimately be easier and less risky to sell. Enhancements, rather than new and radical approaches to traditional problems, are the norm. The smart grid arena has suffered under this paradigm, as well. Xcel Energys approach to the smart grid started with a completely different perspective and a new set of hypotheses that required an established, broad-based infrastructure and real-world testing. 

Developing and deploying SmartGridCity represented an extraordinarily complex and expensive undertaking. While other utilities had focused on developing specific components of the smart grid concept, such as smart meters, none had attempted to develop, much less deploy, a comprehensive digital grid solution on a large scale. Xcel Energy knew it would be setting a precedent that might ultimately reshape and redefine the utility marketplace. 

With so much riding on the smart grid solution, Xcel Energy decided to form a consortium of industry leaders who would not only provide guidance and funding for the project, but also supply the products, services and expertise needed to bring the smart grid vision to life. The Smart Grid Consortiumwhich included Accenture, Current Group, GridPoint, OSIsoft, Schweitzer Engineering Laboratories, SmartSynch and Ventyxalong with Xcel Energy dedicated a field crew of more than 100 people to the deployment of SmartGridCity. 

Xcel Energy will not be able to transform the energy industry on its own. Utilities will need to focus on the creation of new products and services, transform from a product model to a service model, and offer customers more options. And regulators will need to be partners in establishing different pricing structures that provide incentives for utilities to earn revenue in ways that arent entirely linked to additional sales. The focus needs to be on the total customer bill, with an eye toward rewarding both the utility and the customer for energy conservation. Xcel Energy, for its part, is addressing this complex challenge by focusing on gaining consumer, regulatory and legislative support for its smart grid efforts and encouraging innovative thinking into how utilities are compensated and allowed to make a return on their shareholders investment.

During the deployment of SmartGridCity, Xcel Energy has not faced any significant challenges in implementing or integrating the various smart grid technologies and devices. The greatest obstacles involve laying distribution lines and managing residents property concerns. Boulder is built largely on granite. Laying underground lines requires boring through these granite layersa process that can be noisy and disruptive. Stringing distribution lines above ground requires certain trees to be pruned or cut down. Naturally, residents want to minimize the negative effects of the smart grid installation on their properties. In addition to taking exceptional care when working in residential areas, Xcel Energy has invited a representative from the City of Boulder to be part of the implementation team and to manage communications with local residents.

Despite soaring demand for energy, technological advances that improve energy distribution, and a global call for utility companies to do more to promote environmental sustainability, the fundamental method of operating the nations power grid has not changed much in the past 100 years. Resistance to change is based largely on consumers and municipalities lack of understanding of what is possible with a smart grid. Xcel Energy recognized that its plan for Boulder was revolutionary and, as such, would be met with general skepticism. To tackle the publics resistance, the company developed a public policy strategy to manage expectations, a clear and understandable smart grid vision, and 70 hypotheses around the smart grids potential to reduce energy distribution costs, reduce its carbon footprint and improve customer satisfaction. By methodically testing these hypotheses, Xcel Energy was confident it could prove the value of smart grid technologies. 

Xcel Energy launched a number of quick-hit projects in 2008 to test various hypotheses and smart grid technologies. One project involved building an outage verification tool that enabled the grids communications infrastructure to interact remotely with meters and transformers to determine power status within seconds. Another involved building an enhanced dispatch dashboard that integrated information from existing systems and provided it in a single portal. These two projects allowed dispatch personnel to quickly understand the existence (and cause) of an outage and determine and carry out appropriate actions. Other proof-of-concept projects demonstrated how SmartGridCity would return stored wind energy to the grid and how plug-in hybrid electric vehicles could charge from and discharge energy to the grid. 

Xcel Energys hypothesis-driven approach, along with the creation of a one-of-a-kind mobile demonstration center, highlighted the concepts and benefits of the smart grid in a tangible way. Once people saw the components in action, they were hooked.

Achieved

Xcel Energys SmartGridCity project addresses todays environmental challenges, while also transforming the way energy is delivered and managed. The project represents the first fully integrated smart grid city in the United States and serves as a model for other utilities and communities looking to make the production and delivery of electricity more efficient, reliable and sustainable.  

With the success of its hypothesis-testing approach and deployment activities to date, Xcel Energy is already shaping the smart grid conversation in the United States. Until just a year or so ago, no one identified a discrete definition of smart grid. Recognizing the need for a clear understanding of the concept, Xcel Energy established a working group (the Smart Grid Forum) in late 2006 to engage technology companies, public officials, policy experts, environmental advocates and other participants in defining what smart grid meant for the company, and to determine how stakeholders could help realize that vision. As a result of this groups efforts, Xcel Energy has a more expansive construct of the smart grid than others in the industry. 

Xcel Energys concept of the smart grid looks at integrating the fuel source with the end-user and all touch points in between. The company believes that everything from a piece of coal to a thermostat has to be part of the integrated smart grid. Very few, if any, of Xcel Energys peers have a documented smart grid vision that encompasses the entire horizontal utility value chain, nor do they tout the horizontal integration of various smart grid components as the key to the smart grids success. 

Because of Xcel Energys comprehensive smart grid vision and incorporation of the environmental aspects into its smart grid, many organizations in the marketplace have identified the company as a leader in this space. Leaders from other utilities, municipalities, states and countries have come to Boulder to witness, first-hand, the future of energy management. SmartGridCity has also captured the attention of the World Economic Forum. In 2008, mayors, regional governors and the private sector launched the World Economic Forums Slim City Initiative, a program that encourages cities and the private sector to work together to support action on resource efficiency in urban areas. This group now looks to SmartGridCity as a model for future initiatives. With the full deployment of SmartGridCity in 2009, Xcel Energy will likely influence the smart grid dialogue in this countryand around the worldfor years to come.

SmartGridCity represents a fundamental shift in the way energy is distributed, managed and used. The new grid, which combines traditional with digital technologies, enables two-way communications across the delivery chain and transforms the long-established relationships that have existed between utilities and their customers for generations. Many consumers are initially skeptical of smart grid benefits and, understandably, resistant to change. Yet, once they see tangible results of a move to the smart grid, they embrace the new energy paradigm with great gusto.

To help consumers transition to a world of highly efficient, reliable, dynamic and responsive energy distribution, Xcel Energy adopted a hypothesis-driven approach to implementation. Using Boulder as a real-world test ground, the company has been able to demonstrate the potential of the smart grid in meaningful ways. Dispatchers and other Xcel Energy employees can now use smart grid technologies to be more productive and efficient. Residents of Boulder, too, are starting to see the benefits of SmartGridCity first-hand. The Chancellors wife, for example, initially doubted how automated in-home devices would improve the familys energy management practices. Today, she is one of SmartGridCitys strongest advocates.  

Within the past year, Xcel Energy has educated Boulders residents and city officials and introduced a series of quick-win projects to validate the SmartGridCity vision. That foresight has paid off. Today, Boulder residents are hungry for more information related to SmartGridCity and eager to realize the benefits. They have embraced SmartGridCity and are prepared to take advantage of the new solution once it is fully deployed in 2009.