Westar Energy Smart Grid

June 23, 2009

What is a Smart Grid?

 Supports Energy Efficiency  Modernization of Grid  Demand Response  Supports Renewable Generation  Support Distributed Energy Resources

Energy Efficiency

 Large untapped resource - 50% load growth can be met with programs  Time based rates  Customer feedback via Home Area Network  In home displays, Home Energy Management  Billing Options such as pre-payment

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Grid Modernization

Existing  Substation protection    Feeder automation Distribution automation Volt-VAR optimization New    Home area networking Distributed monitoring & control Distributed energy resources Goal  Integrate existing grid monitoring & control to new distributed & customer focused resources Requirements  New generation of distribution management systems    Pervasive & secure communications Advanced analytics Dynamic control

Demand Response

   Key element is dynamic energy pricing  Allows consumers to see and react to pricing before they use the energy  Studies show consumers are interested if they can save 10% or more Demand response uses:  Economic dispatch to reduce generation costs   Socioeconomic dispatch where consumers respond for the benefit of society as whole Reliability dispatch to reduce/eliminate service interruptions Key Success Factor - Consumers will want something simple and accessible to interact with the grid. Set it and forget it.

Renewable Generation

  Major sources  Wind : 2008 US overtook Germany as world’s leading source (25 of 121 total GW)  1000 MW of Wind in Ks by end of year  Solar: US expected to take world lead this year Issues  Distributed nature of supply  Intermittency of supply  Forecasting supply (availability, adequacy)  Potential for decreased reliability

Distributed Energy Resources

    Micro-generation  Micro-turbines  Fuel cells Energy storage  Ice energy storage for AC  Rechargeable batteries Plug in Electric Hybrids (PHEVs)  Vehicle-to-grid = source for on-peak supply & energy storage Goal of all distributed energy resources is efficiency, demand distribution / peak shaving, environmental impact reduction & other ancillary services

Smart Grid Enablers

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Integrated Communications

communications – Robust, integrated, two-way

Sensing and Measurement

– Enhanced synchronized distribution system measurement and monitoring

Advanced Components

latest in materials, energy storage, and electronics to determine the grid’s behavior – Power system devices that apply the

Advanced Control Methods

components and enable rapid diagnosis and timely, appropriate, response to any event – Methods to monitor essential grid

Improved Interfaces and Decision Support

time applications that enable grid operators to make decisions quickly – Seamless, real-

Applications

– Linking consumers to producers and all elements of the energy/resource value chain

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Westar Smart Grid Components

 Smart Meters  Customer Engagement  Meter Data Management  Outage Management System  Distribution Automation 10

Smart Grid Benefits

  Customer  Notification of outage and restoration   Detailed energy usage information Manage energy usage    Supportive of renewable and distributed generation Dynamic time based pricing Personalized customer services, products and programs Westar  Operational efficiencies   Supports comprehensive energy plans Manage peak load 11

How does Smart Meter support Smart Grid?

        Distributed Measurement Nodes  Time synchronous interval data measurement for entire grid  Sense & Measure today, control tomorrow Outage & restoration notification  Momentary outages, restoration efforts Voltage monitoring & control Loss detection – theft and line losses Power quality monitoring & control Load flow & monitoring 2 way common, secure communications system to support distribution automation monitoring & control Enables demand response solutions  PCT’s, DLC, HAN, IHD with command acknowledgement & verification

Recovery Act Opportunity

        Smart grid investment program Awards from $500K to $200M Up to 50% DOE match DOE FOA rules pending ??

First filing deadline 45 to 60 days after FOA Two year program Strict reporting requirements Shovel ready projects required 13

Opportunities

 IT Development – From Basement to Dryer  Federal and State Policies/Incentives  Meet Changing Customer Expectations  Managing Cultural Changes  Products and Services  Inter-operability and Security  Organization Readiness  Future Technologies