Senior Counsel February 19, 2016 BY HAND DELIVERY AND ELECTRONIC - PDF document

Raquel J. Webster Senior Counsel February 19, 2016 BY HAND DELIVERY AND ELECTRONIC MAIL Luly E. Massaro, Commission Clerk Rhode Island Public Utilities Commission 89 Jefferson Boulevard Warwick, RI 02888 RE: Docket 4592 - National Grid’s Proposed FY 2017 Electric Infrastructure, Safety, and Reliability Plan Presentation Dear Ms. Massaro: I have attached the presentation that National Grid 1 will present at the fiscal year 2017 Electric Infrastructure, Safety, and Reliability hearing at the PUC on February 22, 2016. The Company is filing this presentation pursuant to the PUC’s request dated February 12, 2016. Thank you for your attention to this matter. If you have any questions, please contact me at 781-907-2121. Very truly yours, Raquel J. Webster Enclosures cc: Docket 4592 Service List Leo Wold, Esq. Steve Scialabba, Division Greg Booth, Division 1 The Narragansett Electric Company d/b/a National Grid. 40 Sylvan Rd. Waltham, MA 02451 T: 781-907-2121  raquel.webster@nationalgrid.com  www.nationalgrid.com

Certificate of Service I hereby certify that a copy of the cover letter and any materials accompanying this certificate was electronically transmitted to the individuals listed below. The paper copies of this filing were hand delivered to the Rhode Island Public Utilities Commission and to the Rhode Island Division of Public Utilities and Carriers. ___________________________________ February 19, 2016 Joanne M. Scanlon Date Docket No. 4592 National Grid’s Electric Infrastructure, Safety and Reliability Plan FY 2017 - Service List as of 12/10/15 Name/Address E-mail Distribution Phone Raquel J. Webster, Esq. raquel.webster@nationalgrid.com; 401-784-7667 National Grid. celia.obrien@nationalgrid.com; 280 Melrose St. Joanne.scanlon@nationalgrid.com; Providence, RI 02907 National Grid Jim.patterson@nationalgrid.com; Jim Patterson Ryan.moe@nationalgrid.com; Ryan Moe Amy.tabor@nationalgrid.com; Amy Tabor Adam.crary@nationagrid.com; Adam Crary William.richer@nationalgrid.com; Leo Wold, Esq. Lwold@riag.ri.gov; 401-222-2424 Dept. of Attorney General Steve.scialabba@dpuc.ri.gov; 150 South Main St. James.lanni@dpuc.ri.gov; Providence, RI 02903 Joseph.shilling@dpuc.ri.gov; John.spirito@dpuc.ri.gov; dmacrae@riag.ri.gov; Jmunoz@riag.ri.gov; David Effron Djeffron@aol.com; 603-964-6526 Berkshire Consulting 12 Pond Path North Hampton, NH 03862-2243 Greg Booth gbooth@powerservices.com; 919-256-5900 Linda Kushner PowerServices, Inc 1616 E. Millbrook Road, Suite 210 Lkushner@powerservices.com; Raleigh, NC 27609 File an original & nine copies w/: Luly.massaro@puc.ri.gov; 401-780-2107 Luly E. Massaro, Commission Clerk Cynthia.WilsonFrias@puc.ri.gov; Public Utilities Commission Alan.nault@puc.ri.gov; 89 Jefferson Blvd. Todd.bianco@puc.ri.gov; Warwick, RI 02888

Christopher.Kearns@energy.ri.gov; Christopher Kearns, OER Danny.Musher@energy.ri.gov; Nicholas.Ucci@energy.ri.gov;

Overview of National Grid’s Distribution Planning & Forecasting Processes February 22, 2016

Abbreviations  MW = megawatts  DR = Demand Response  1,000 kilowatts  DER = Distributed Energy Resources  1,000,000 watts  DG = Distributed Generation  MWH = megawatt * hour  DP = Distribution Planning  DSM = Demand-side  RES = Renewable Energy Management (same as EE) Standard - 2004-2014  EE = Energy Efficiency  REG = Renewable Energy  NWA = Non-wires Alternatives Growth – 2015 + 2

Agenda  Forecasting  Distribution Planning  How do we do these  What is Distribution forecasts? Planning  How to account for  Why do we plan customer side resources  How do we plan  Energy Efficiency  Planning Analysis  Demand Response Concepts  Distributed Generation  Energy Efficiency &  Latest Forecasts Distributed Generation Considerations  Planning Challenges 3

How do we do these Forecasts?  Econometrics  Weather adjustments  Reductions for Existing and Emerging Technologies & Programs (Energy Efficiency, Distributed Generation, Demand Response, etc.) 4

Energy Efficiency & Demand Response  Energy Efficiency  Cumulative ~230 MWs peak load reduction  >10% of state peak  Demand Response  Administered by ISO-NE  Approximately 25 MWs  ~1.4% of state peak  not Company controlled 5

Distributed Generation - Solar  First Step in New Forecasting Process  Track historical DG installations  Project for future installations  Review queue status  Review state policy  “Top-Down” approach  40% nameplate peak contribution factor  Future?  Contractual Arrangements 6

Forecasting Energy Efficiency 1 1 – RI Energy Efficiency Table from National Grid’s New England 2016 Electric Peak (MW) Forecast 7

Forecasting Distributed Generation – Solar 1 1 – RI Summer Peak Reductions by Solar Capacity Table from National Grid’s New England 2016 Electric Peak (MW) Forecast 8

What is Distribution Planning  Distribution planning is the analysis of historical data with forecasting information to prepare recommendations for National Grid to provide safe, reliable, and efficient electric service  Historical Data  Physical Characteristics = Asset Condition  Electrical Characteristics = Current, Voltage, and Power  Analysis  Recommendation  Infrastructure  System modifications or operational guidelines 9

Why do we plan?  SAFE  Maximize safety of workers, equipment, and the public  RELIABLE  Proactive (Predictive)  Reactive (Historical)  EFFICIENT  Maximize use of existing assets  Economic expansion  Minimize environmental impacts  Minimize societal impacts 10

How do we Plan? Planning Study Process – 3 to 18 months Scoping Select Initial System Engineering Plan Gather Recommended System Assessment Analysis Development Plan Data Subject Subject Subject Matter Matter Matter Expert Expert Expert Consultation Consultation Consultation Blue Print for Construction – Impacting ISR Plans 2 to 15 years out 11

Planning Analysis Concepts  Should apply criteria and strategies reviewed by regulatory entity  System Performance Criteria (including Asset Condition)  Acceptable = Continue to analyze and plan  Not Acceptable = Infrastructure Investment or System Modification  Should allow customer choice – Plan for worst case  Status of System M onitoring  Comprehensive Plans  Distribution Planning address Capacity, not Energy  Discrete and Large  Familiarity with cost, schedule, and capabilities 12

Energy Efficiency & Distributed Generation Considerations  Energy Efficiency – Included in Forecast  Targeted EE considered in NWA  Distributed Generation – NEW & EVOLVING  Subject Matter Expert consulted during studies?  Intermittency / Weather  Customer Choice Impacts – DG is not under control of National Grid  Treat as special or treat as a negative load?  Targeted DG can be considered in NWA  Non-wires Alternatives (Distributed Energy Resources)  Subject Matter Expert consulted during studies  Fixed screening analysis 13

Planning Challenges  Emerging Issues  Emerging Technologies  System Resiliency  DER  Climate Change  Advanced Distribution Automation  Continued Operational Efficiency  Volt / Var Optimization  Vehicle Electrification?  Advanced Distribution Monitoring  Time of Use Rates  COMMUNICATIONS  NEED FOR GREATER SYSTEM VISIBILITY 14

Questions 15