Federal + State Smarts

 

AS THE ELECTRIC GRID CONTINUES TO evolve, the roles of state and federal government in driving smart initiatives is definitely shifting. One state regulator leading the collaborative approach is Garry Brown, chairman of the New York State Public Service Commission and of the National Association of Regulatory Utility Commissioners' (NARUC's) Committee on Electricity.

Brown has also been a member of the NARUC-Federal Energy Regulatory Commission (FERC) Smart Grid Collaborative since its inception in February 2008. Intelligent Utility recently interviewed him about federal and state collaboration.

INTELLIGENT UTILITY In the Energy Independence and Security Act of 2007, Congress asked the Department of Energy to create a smart grid advisory committee. Was the Smart Grid Collaborative a result of that legislation?

BROWN In early 2008, out of recognition among federal and state regulators that our power infrastructure was moving toward smart grid, we came together to identify and increase our understanding of a variety of smart gird issues-technology, interoperability standards, cyber security, to name a few. NARUC and FERC believed a focused collaborative would position us as a source of information for public and private sector entities. It was largely through our desire for ongoing communications and knowledge sharing that we came together, not because of legislation.

INTELLIGENT UTILITY So what does the Smart Grid Collaborative do?

BROWN The collaborative meets three times a year at NARUC's annual meetings. In addition to federal regulators and state commissioners, different external entities present us with what they're doing in the smart grid space. On our web-site, you'll find links to dozens of presentations. We serve as a clearinghouse of information about smart grid, what people are doing, what they've learned and various success stories. Our participants benefit by being there, but because the presentations are publicly available, anyone can access them.

INTELLIGENT UTILITY What makes collaboration between FERC and NARUC effective?

BROWN We're both regulators with common interests. But because our electricity infrastructure is complex, it is inevitable that jurisdictional debates will emerge between federal and state regulators over who should be regulating what. The debates aren't contentious; they're the result of two distinct sets of regulations that leave an unintended gray zone. With this in mind, as a new 21st century concept like the smart grid emerges and takes on an increasingly integral role in our electricity system, it makes sense for regulators at both levels to collaborate to ensure we're on the same page moving forward.

When FERC regulators and 16 state commissioners first came together in 2008, our discussions focused on developing a common understanding of terms such as smart grid, interoperability standards and cyber security. These terms are more complex now than they were two years ago but they were large enough even back then that, if we wanted to develop a foundation for future discussions, the states and federal government thought it wise to agree upon some common definitions.

INTELLIGENT UTILITY What do you mean when you say these terms are more complex now?

BROWN The pace of our increased understanding of smart grid is astonishing. The questions we've asked since 2008 haven't changed much but the answers are increasingly complex due to the knowledge we've accumulated. What can we learn from NIST? Are cyber-security standards advancing to protect the grid from hackers? What new smart grid technologies are developing? What can we learn from stimulus-funded smart grid pilot projects?

INTELLIGENT UTILITY Is the collaborative engaging greater numbers of stakeholders?

BROWN Absolutely. I would even say that due to the rapid advancement of smart grid we have stakeholders we never could have imagined back in 2008. The collaborative has always attracted groups you would expect. Our meetings are open and you'll typically find state government representatives, utilities, people from GE, Itron, IBM and the like. When stimulus funding became available for smart grid projects, the Department of Energy spoke with us. The Federal Communications Commission now has a smart grid unit. And we're hearing from groups such as Google, which is developing smart grid applications, and Best Buy, which is interested in developing energy efficiency and smart products. In 2008, the easiest association we would have made for smart grid was with a talking meter. But with all the emerging ways it can operate to enhance our power infrastructure, smart grid is growing more abstract and different interests are engaging in the dialogue.

INTELLIGENT UTILITY How can the collaborative keep pace with the rapid advancement of innovations?

BROWN I don't think a single entity can. But the diversity of participants at our meetings ensures we have a lot of different voices increasing our knowledge. As I mentioned, the knowledge sharing that goes on is critical to what the collaborative does. If you don't have enough stakeholders in your dialogue, you risk missing some important bit of information. I'll give you an example of what I mean by that.

There are a lot of smart grid technologies, but it's beyond the scope of a small group to know which ones provide the best value in the long term. Which ones will provide the most robust cyber security and which interoperability standards will support the most useful technologies? Having the collaborative means our regulators don't have to be independent experts. We share information and provide insights that help us keep pace with innovations.

It's helpful to know that the collaborative is not a love-in. We all know the smart grid is uncharted territory and everyone knows that sharing information is good. But new ideas are not always or quickly embraced and there is a healthy cynicism in the electricity industry. Power regulators are conservative. Any smart grid investment you make has ratepayer dollars on the line so you want to ensure that whatever decision you make is well-informed and you're going to get things right the first time.

INTELLIGENT UTILITY What other state-federal collaborations have been successful?

BROWN FERC and NARUC participated in two earlier collaboratives - one focused on demand response and another on competitive procurement. What's interesting about the demand response collaborative is that their discussion items recently began overlapping with smart grid issues and vice versa. And so, at NARUC's last winter meeting, we joined smart grid and demand response discussions into a single collaborative. This is a good example of two things. First, you can see federal and state regulators benefiting from knowledge sharing, especially when other stakeholders participate in the dialogue. Second, we have begun to see the complex interconnections between smart grid and other considerations in our power infrastructure. I see an important role for the Smart Response Collaborative for years to come.