EnerNex Assists PNM with Grid Modernization Strategy

Oct 7, 2022 | Announcements

EnerNex appreciated the opportunity to assist the Public Service Company of New Mexico (PNM) with their grid modernization strategy, stakeholder outreach, advanced metering infrastructure procurement, and October 3, 2022 rider application to the New Mexico Public Regulatory Commission. Details regarding PNM’s grid modernization plan and regulatory filing can be found at: https://www.pnmforwardtogether.com/grid

As published in Utility Dive | October 4, 2022

PNM proposes 6-year, $344M grid modernization plan including smart meters for all customers

Dive Brief:

– Public Service Co. of New Mexico on Monday filed a six-year, $344 million grid modernization plan that includes rolling out smart meters to all of its 530,000 customers in the state, alongside investments in physical security and cybersecurity.

-The six-year grid modernization implementation plan will add about $1.20 to monthly residential bills, but PNM said those increases will be delayed until September to avoid initially raising rates during the hot summer months.

– “Converting the grid to a two-way communication path is a game-changer,” the utility said in its filing with the the New Mexico Public Regulation Commission. PNM asked regulators to approve its application by July.

Dive Insight:

PNM’s grid modernization filing is driven by both state policy goals and growing customer interest in smart grid technologies, utility officials said Monday.
“Today’s customers want the opportunity to add rooftop solar with energy storage, plug in electric vehicles, and community solar,” Laura Sanchez, PNM’s chief policy and legal advisor, said in a call with journalists. The grid modernization plan “will add technology to enable all of this to integrate onto the system, while also making sure the system is reliable.”

The plan is also a response to the state’s climate goals, which include cutting greenhouse gas emissions at least 45% below 2005 levels by 2030 and moving towards net zero emissions by 2050. PNM’s implementation plan looks out six years, but the utility’s longer-term grid modernization vision will take 11 years to achieve, the utility said.

The plan will help speed recovery during outages, Sanchez said. It calls for installing devices called remote fault indicators which, when combined with smart meters, will help identify outages on PNM’s system.

“Today we rely on customers to call in about an outage in their neighborhood,” she said. “This technology means we will be notified automatically when there is an outage on the system, and we will be able to isolate the outage so we can target crews to just that section of the system that needs repair.”

The plan places particular emphasis on “energy equality,” Sanchez said, by “ensuring that communities, particularly low-income communities, receive fair treatment in how benefits and burdens are distributed.” Low-income and underserved areas will receive prioritization for distribution system upgrades and the installation of smart meters, according to the filing.

Along with the advanced metering infrastructure rollout, PNM “proposes to invest in greater physical- and cyber-infrastructure to protect the data and information generated by the new AMI capabilities,” according to the application. “These initial grid modernization investments will overlay a secure communication network on the existing electric grid infrastructure using both wireless and fiber optic technologies.”

Smart meter deployment will continue through the fourth year of PNM’s proposal. In the second year, the utility plans to implement a customer energy management platform to help customers make “informed decisions about their individual energy use and utility programs and rates that support their choices.”

The utility said it is also seeing a spike in large businesses looking to move into its service territory, and these new customers are focused on using clean energy.

A decade ago, PNM would see “roughly two large business relocation inquiries per year,” Elisha Saavedra-Torres, PNM’s business development manager, said. “But fast forward that to five years later, and we were getting about two inquiries per month. Now we’re getting more than two a week.

“It’s exciting to respond to these opportunities knowing that we will now have a modernized grid that can continue to meet the needs of our existing customers while supporting economic growth for the entire state,” Saavedra-Torres said.

Smart Metering (SM) and Advanced Metering Infrastructure (AMI)

Smart Metering and AMI is a transformational process addressing multiple business and technical needs of the utility enterprise. This is more than just smart meters and communications networks; it includes all of the back end applications that can leverage the meter assets, such as outage notification, demand response, call center optimization, disputed billing process handling, pre-payment opportunities, and service connection management methods and procedures, to name a few.

Implementing SM and AMI faces the same business, engineering, and operational challenges as any other across-the-utility information technology endeavors – most notably risk associated with embracing proprietary technology, missing functionality and early obsolescence. Effective SM and AMI development, implementation, and operation relies on a marriage of electric power engineering with information technology expertise: a key component of EnerNex’s expertise and experience.

EnerNex provides an array of engineering and consulting services geared towards intelligent and effective implementation of SM and AMI. This covers all phases of project development, starting with capturing system requirements where our experts leverage a “Use Case” centric view of activities needed to be accomplished and their interaction with systems and other users. Subsequent project steps typically examine other critical areas, such as: modeling of business cases, building inter-department consensus, assembling and assessing system functional requirements and non-functional requirements, developing a system design, hardware and software specifications and standards, complete procurement services including RFI and RFQ process support, supplier rating system, response evaluation methodology, deployment management, and training of office and field personnel.

Demand Response (DR)

Demand response can be as simple as load interruption directed by the energy supplier in response to severe demand requirements, to complex customer defined load management in response to price signals. DR is one of the components of a “Non-Wires Alternative” that many utilities are effectively using to avoid expensive distribution fortification or upgrade.

 

Often the success and/or failure of demand response programs can be linked to program implementation challenges such as rate/tariff design rate structures communication (e.g. price signals) or ineffective incentives used by utilities to encourage customers to accept operational change. The issues of program design, rate structure and customer impact have a tremendous influence on the success or failure of load management initiatives. Demand response has traditionally been used as a tool of the energy industry to ensure system stability. However, the introduction of microelectronics, communications, home automation and the Internet of Things (IoT) has led to the development of cost effective solutions that have the capability to allow the consumer to take control of managing their energy load and ultimately, the price they pay for energy.

EnerNex has the experience and skills to turn your DR program into a successful operational asset and customer engagement process that can deliver value to all parties.

Energy Assurance Planning

Natural and man-made disasters cause an estimated $57B in average annual costs for all parties; large single events have resulted in losses of $100B or more. Events, such as the World Trade Center disaster, Hurricane Katrina, and most recently Hurricane Helene, have demonstrated an acute need to revisit, revise and implement an effective energy assurance plan. Energy assurance plans assess the functionality and interdependencies of buildings and infrastructure systems and the role they play in sustaining service and rapidly restoring critical services to a community following a hazard event.

 

EnerNex assists our clients in developing comprehensive energy assurance plans that mitigate and minimize the impact of energy disruptions. Our experts assess critical infrastructure risks and evaluate appropriate mitigation strategies and can help in developing an effective business continuity/disaster recovery (BC/DR) plan for utilities and your customers.

Microgrid Development

As the electric grid becomes more distributed and interactive, microgrids are playing an increasingly important role in our energy future. Decision makers at military bases, corporate and institutional campuses, residential communities and critical facilities across the world are exploring and implementing microgrids to meet economic, resiliency and environmental goals. Utility-grade microgrids are being deployed to meet transmission constraints, reliability requirements and safe-havens in the event of a significant storm event.

Microgrid_development Graphic steps to support grid modernization

Bringing together a portfolio of distributed energy resources into a controllable, islandable microgrid comes with its own set of challenges. The key to solving these challenges is in architecting a system to support information exchanges between components across well-defined points of interoperability (interfaces) in a technology independent manner. This interoperability ensures that the system is resilient to technology change. Modern systems engineering techniques must be employed to ensure that individual sub‐systems are clearly identified, their functions enumerated, their data requirements known, and the points of interoperability clearly specified, along with the commensurate monitoring, command and control that is needed to ensure grid stability. With such architecture, we can apply best of breed technology available today to support those information exchanges at interface boundaries but be free to upgrade / change the implementation technology later without causing a ripple effect throughout the system.

Enterprise Architecture

Enterprise Architecture focuses on aligning an organization’s business strategies with its anticipated, desired and planned technology enhancements. Enterprise Architecture provides a framework to cost-effectively transition from a current “as-is” technology to future enterprise-wide technological solutions. An effective Enterprise Architecture program aligns business investments with long-term business strategies while minimizing risk and providing superior technological solutions. EnerNex’s key asset is its highly skilled and experienced staff who are closely connected to both the smart grid and EA standards and practices. We provide clients with the insight necessary to operate a fully functioning smart grid, which is flexible, scalable, and vendor independent.

Grid Modernization Roadmap

Utility companies across the globe are continually modernizing their grid. Each company often has different rationales, objectives and priorities. Frequently, smart grid plans are developed for individual, incremental initiatives, rather than as a part of a whole, intelligent and interoperable infrastructure. Planning may be developed around technology choices rather than business and technical requirements. The result of incremental and flawed planning leads to increased cost and risk, lost opportunities, disconnected expectations and dead ends.

 

EnerNex’s approach to grid modernization roadmap development follows a proven, industry-standard approach to grid modernization planning by collaboratively working with the utility to develop a set of prioritized and time-phased grid modernization initiatives unique to its business strategy and objectives. The roadmap developed is holistic, requirements-based, business value driven and actionable. It often builds on and leverages existing applications and infrastructure, and incorporates industry standards to ensure interoperability, flexibility and reduced cost and risk.

Utility Communications

Utility communication and control systems are increasingly interconnected to each other and to public networks and as a result, they are becoming increasingly more susceptible to disruptions and cyber attacks. EnerNex has experience with the various issues relating to development, implementation and optimization including feasibility analysis, design, software development and customization, project management and acceptance. Our expertise extends from being involved in the development of the fundamental standards that support utility communication and automation, through deployment and securing of those resources. EnerNex personnel were heavily involved in development of such standards and protocols as IEC 61850, IEC 60870-5 and DNp3. Our staff played a key role in the EPRI Utility Communication Architecture (UCA) project and the IntelliGrid Architecture effort.

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