Strategies for Migrating from One Way to Two Way Communicating Devices.

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1 Strategies for Migrating from One Way to Two Way Communicating Devices

2 Transition to Two Way DR Duke Energy Florida Melissa Knous Thomas Artau

3

4 Duke Energy Florida (DEF) Transmitters System wide Control Reserves WH Controls Winter Peaking Regional Control

5 DR Integration with System Operations Bulk Power System Energy Control Center 5 5

6 Background on 2 Way Conversion ARRA Grant from DOE New LMS software and hardware Control System / Infrastructure / 2 Way Switches Wi Fi and Cellular Switches WOMS, Inventory Management Customized MW Driven Control Deployment Strategy

7 Paging Wi Fi Cellular 527,672 One Way Switches 427,155 Residential Participants 384,946 HVAC 392,316 Water Heaters 43,674 Pool Pumps 40,631 Two Way Switches

8 EnergyWise Home Participating Appliances Heat Cool Water Heater Pool Pump Year Round or Winter Only(Nov March) Appointments Required / In home Installations Monthly Incentives based on Prorated Consumption

9 Change Management Work Order Management Old and New Switches Inventory Management Load Control 9

10 EnergyWise Home Change Management One way paging system and load control switches Two way system and load control switches Internally developed load control system Vendor developed and hosted load control system CSS based work order system New electronic work order and asset management system

11 Work Order Management 11

12 Work Order Management CSS Generated Work Orders Printed, Scanned, Uploaded Delayed Data Input Handwriting Challenges IntelliSource WOMS Electronic & Paperless Real time Data Transmission Photographs Shared Instantly 12

13 Switch Hardware One way VHF Paging All 4 Function 120/240/24 V option Additional 3 Pole Relay in AH Junction Box Required Two way Wi Fi and Cellular Industry Standard Switches 2 Function and 1 Function (WH,PP) 120/240 V only; No 24 V option No Additional Relay Needed On board Junction Box 13

14 Test Tools Portable Test Units Portable Counter Display Units Accessing VRU ipad or ipad Mini Mobile Access for WOMS, Installation and Testing Switch Commissioning Process Switch Connectivity and Status 14

15 Inventory Management Device tracking & photos Improved asset awareness Beyond warehouse and install Assigned to installer truck Present and historical locations Expanded inventory management

16 Variable Load Control

17 EnergyWise Home Program Marketing

18 Florida Portfolio Campaign TV, Radio, Digital, Billboard

19 DEF 2 Way Lessons Learned Grant Monies Vendor Partners Time / Effort on Design and Customized System or Devices Infrastructure / Wireless Comm Options / Hardware Choices Long Term Costs & Device Capabilities Vendor Compliance with Program vs. Tariff Changes Device Connectivity Challenges Technician and Office Staff Training Requirements

20 Connected Device Discussion Derek Kirchner DTE Energy April 5, 2017 Attorney Client Communication Prepared In Anticipation of Litigation

21 DTE ENERGY Overview DTE Energy Co (NYSE: DTE) is a Fortune 300 company operating in 550 communities throughout Michigan, and one of only 20 firms whose stock has traded on the NYSE for over 100 years DTE Electric, founded in 1903, and DTE Gas, founded in 1849, service a total of more than 3 million customers throughout Michigan #IUW16 #

22 Interruptible Air Conditioning Program The DTE Energy Interruptible Air Conditioning (IAC) program is known as our CoolCurrents program This residential and commercial service provides DTE Energy customers with up to a 17% discount on their air conditioning usage for the right to cycle the A/C compressor on and off in 15 minute increments. We cycle the units for no more than 8 hours in a day so 4 hours off / 4 hours on Radio Control Unit program has been at DTE since the early 1970 s It requires that the customer have a separately metered service for the A/C compressor which is metered for the discounted rate #IUW16 #

23 Interruptible Air Conditioning Program The existing technology is a one way Radio Control Unit controlled by 11 radio towers in the service territory. While the towers overlap to provide DTE with redundant service, there is currently no option to control a single tower. #IUW16 #

24 Interruptible Air Conditioning Program What DTE did develop is the van. This mobile control center replicates the signalling equipment on one of the radio towers and sends the radio frequency on a much smaller scale. We can currently send a signal in an approximate 2 mile wide area and use this method for localized distribution relief. Transmitter Remote Control IAC Test Unit Remote Transmitter Controller (RTC) #IUW16 #

25 Interruptible Air Conditioning Program Why change out our Radio Control units? Existing hardware and software used to control the switches is becoming obsolete. There was no longer support or hardware for the radio control towers. Most importantly, DTE was seeing a degradation in the capacity being accounted for in the MISO market for Interruptible Air Conditioning Internal load research modeling at DTE was estimating that the 277K customers should be producing about 240 MW when interrupted The results from a 2012 economic interruption of the system produced 142 MW Existing fuel mix in the Midwest is changing retiring coal based generation MISO reserve margins are tightening (especially in Load Zone 7) leading to MISO capacity market prices increasing MISO requiring greater measurement and verification of existing DR assets Michigan Public Service Commission asking for future plans of Automated Metering Infrastructure post 2017 The system was failing due to a number of factors, so DTE looked for a solution #IUW16 #

26 DTE Energy has partnered with Itron, Corporate Systems Engineering and CEIVA to develop our next generation of Load Control Device These new 2 way load control switches will utilize the existing Advanced Metering Infrastructure that DTE Energy has in place These devices are controllable with zigbee signals and will look like a meter asset to our back end systems Control signals will travel on our Itron OpenWay network and provide us with greater insight and flexibility versus the one way radio system #IUW16 #

27 Interruptible Air Conditioning Program DTE Energy will utilize the Load Control Devices and new software controls in a number of scenarios Load curtailment by MISO all 280,000 switches will respond and provide capacity to the market. This is the base case scenario for the program Economic Dispatch the existing DTE Energy tariff allows for economic dispatch of the IAC program. We are in the process of updating the operation manuals to allow for cycling of the IAC program in near real time. Examples include renewable firming and price responsive demand Localized distribution relief the ability to provision the LCD s into groups, such as substation or circuit allow for our distribution operations group to provide load shedding capability during high demand days Non wires alternative to distribution investment DTE Energy is developing a 2017 pilot program that will utilize energy efficiency and the LCD program on selected high load circuits to determine if investment and local control of resources can delay capital infrastructure hardening Capacitor Bank Controls DTE Energy will also be replacing all of the existing capacitor bank controllers as they exist today in our legacy system. These new capacitors will have the ability to report real time voltage and status providing our system operators with greater insight and flexibility on the distribution system #IUW16 #

28 To date, DTE Energy has replaced over 40K devices Current challenges exist in educating customers on the IAC program and their requirements for participation. 30% of installation visits find a lack of 24 volt power to the existing radio control unit requiring investment on the customer side of the equipment.

29 Questions? Melissa Knous: energy.com Tom Artau: energy.com Derek Kirchner:

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