Who is CenterPoint Energy?

Report
…and potential cyber security challenges
Valentine Emesih
April 4, 2013
Who is CenterPoint Energy?
A domestic energy delivery company

Natural gas sales and delivery

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Competitive gas services (CES)

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Over 2.2 million meters in the Houston area
17.2 GW peak demand
Interstate natural gas pipelines

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Over 25,000 commercial, industrial and
wholesale customers across central U.S.
Electric transmission and distribution

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Over 3.2 million residential, commercial and
industrial customers in six states
Two pipelines in the mid-U.S., connecting to
over 20 other pipelines
Natural gas gathering and processing

150 separate systems in major producing fields
in Arkansas, Louisiana, Oklahoma and Texas
2
The Texas electric market
Restructured in 2002 for retail competition
Retail Electric
Providers (REPs)
Unregulated
Power Generating Companies

Unregulated

Transmission and
Distribution Utilities (TDUs)

Regulated

Own and maintain
power lines

Deliver power to
customers

Read meters

Restore power
after outages

Execute Service
Orders
Compete for
customers
Bill customers
Issue disconnect ,
reconnect orders
to TDUs
Step-down
Substation
Commercial
Customer
Residential
Customer
3
Smart Grid Conceptual Model - NIST
http://smartgrid.ieee.org/ieee-smart-grid/smart-grid-conceptual-model
Electricity Distribution
http://smartgrid.ieee.org/ieee-smart-grid/smart-grid-conceptual-model
Customer
http://smartgrid.ieee.org/ieee-smart-grid/smart-grid-conceptual-model
Operations
Market
http://smartgrid.ieee.org/ieee-smart-grid/smart-grid-conceptual-model
System of Systems
Power and Energy Layer
IT/Computer Layer
Communication Layer
CenterPoint Energy’s smart grid

Advanced Metering System
2.2 + million meters installed
 219+ million meter reads / day
 97% service orders electronic

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293,000 gallons of gas saved / yr
2,500 tons of CO2 prevented / yr
Field equipment

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Implement Advanced Distribution
Management System (ADMS)
 Leverage AMS investment

600,000 Texans get 15-minute
usage data

15,000 In-Home Displays in TX
Automated switching devices
Line monitors
Substation monitoring

Usage data - smartmetertexas.com


Distribution Automation
Consumers save $35 million in fees
4 million remote service orders


Common telecommunications
network for AMS and IG
AMS meter data feeds outage
analysis module of ADMS
4
CNP’s Advanced Metering System
View construction at YouTube.com/CenterPointEnergyVid
Data Collection
Engine
(Itron DCE 3.0
SP1)
Digital
Communications
Backhaul
Meter Data
Management
System
(eMeter MDM 6.2)
Itron Open Way
HW 2.0 SR 3.0
Legacy
Systems
Wireless Communications
Environment
(GE WiMax with GSM
Backup)
Legend
Existing
Smart Meter
Texas Portal
Recently
Deployed
Combined with back office computer systems and integration, our AMS provides:


Daily register reads
Daily 15 minute interval reads


Remote connect / disconnect / on-demand reads
Access to data via Smart Meter Texas portal
11
AMS Successes
Meter Deployment is Complete
•
•
•
•
•
•
•
•
•
Meters - Provisioned, accepted and approved – 2,283,012
Cell Relays - Installed in production – 5,434
Take Out Points - Installed in production – 140 (132 AMS, 8 IG)
Service orders completed electronically – 4,073,075
96.9% of service orders successfully executed electronically
Significantly reduced windshield time for readings and service orders
Average electric service order completion time is 30 minutes
Enabled extended working hours & shortened order execution times
Smart Meter Texas Portal makes consumption data available to

Retail Electric Providers (REP)

Over 2 million customers in the CNP service territory

Over 600,000 consumers get consumption data directly from SMT or indirectly,
for example in an email from their REP
12
Consumer benefits of smart meters

Available NOW
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Available SOON

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Remote meter reading, on demand re-reads, fewer estimated reads
Faster, cheaper automated move-in/out, switching
Pre-paid service, time-of-use rates
15-minute usage data to promote energy conservation via
www.SmartMeterTexas.com
Energy analysis and cost comparison tools
Easier integration of distributed generation and renewables
Automatic outage notification
Available in the FUTURE

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Support for plug-in hybrid electric vehicles
Consumer remote control of thermostats and appliances (HAN)
Energy management systems
6
Some Components of our
Intelligent Grid (IG)
Combined with back office computer systems, our IG technology, when fully
deployed, will automatically identify the location of power outages, isolate faulted
sections of the main feeder portion of the network and re-route power from other
sources, essentially automatically restoring as much of the system as possible.14
2010-2014 Deployment of the
Intelligent Grid

IG Infrastructure

Automate up to 29 substations
 Smart Relays & Transformer Monitors
 18 substations complete through 9/30/12, remainder by YE 2013
 Install about 625 intelligent grid switching devices (IGSD) on about 230 distribution circuits
 Provide Remote/Automated Switching Capabilities
 Include Distribution Line Monitoring, Dual Communications Capabilities, Physical &
Cyber Security Provisions, etc.
 293 IGSDs installed through 9/30/12, 374 by YE 2012, Remainder in 2013


Implement an Advanced Distribution Management System (ADMS)
Leverage AMS Communications Investment

Common telecommunications backhaul network for AMS and IG
 AMS meter data feeds outage analysis module of ADMS
While Phase 1 covers about 15 percent of CenterPoint Energy’s service area, some
of the improvements will benefit consumers in the entire system.
15
Consumer Benefits of Intelligent Grid
View demo at YouTube.com/CenterPointEnergyVid

Initial Benefits

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More precise identification of outage
locations, resulting in faster
restoration of electric service
Reduction in time required to perform
circuit switching to isolate fault
Long-term Benefits

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Improved reliability and faster
restoration, especially during major
weather events
Enhanced and improved customer
communications and notifications
Following Hurricane Ike in 2008, the Mayor’s Task
Force concluded that a smart grid “offers the best
return-on-investment for improving grid resilience
and enabling storm recovery system-wide” and that
“[f]inding the means to accelerate CenterPoint
Energy’s deployment of intelligent grid technology in
the Houston area is the Task Force’s strongest
recommendation.”
It has been estimated that full intelligent grid
functionality could improve reliability by up to 30%. 16
Home Area Network (HAN)
Enabled by AMS communications system
Water
Heater
Smart
Thermostat
RF (Radio
Frequency)
Zigb
ee
Pool
Pump
Compressor
Energy Management and Conservation via a HAN for in home devices
17
Challenges
●
●
●
First-of-a-kind deployment
Performance at operational scale
Knowledge transfer

●
●
●
Volume of data
Business transformation
Process change activities

●
Subject matter expertise
Need to consistently engage employees
Consumer education and myth-busting
13
Consumer / Data Privacy

Statutes and rules state that meter data belongs to the
customer
 Market rules also recognize various market participants’
need for meter data in order for the market to function
 Usage data, including historic data, is available to
customer, TDU, and the retailer of record
 Data is available to other parties only with customer
permission
 Personal information such as social security number is not
in the system
15
Components of Cyber Security
Strategy

Prevention

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Detection

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Identify anomalous behavior
Detect malicious code and other events
Gather digital evidence
Response

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Reduce risks and vulnerabilities
Intervene and stop attempted occurrences
Mitigate effects
Address short-term direct effects of incident (public safety et al)
Recovery

Restore normal operation & Address issues
CenterPoint Energy’s Cyber Security
Perspective

Collaboration is Key:
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cyber threats are evolving and require collaboration, information
sharing with the government and continued collaboration with the
industry to effectively protect the nation’s critical infrastructure.
Our goal is to focus our resources on facing the cyber threat.
Our Cyber efforts parallel our corporate philosophy:

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Public Safety
Energy Delivery Reliability
Customer Service
Cyber Security Efforts
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We are entrenching a strong cyber security culture:
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Protection of customer privacy, and other essential information
Cyber security is incorporated into our process, procedures, and
operation through various mechanisms over time
We have evolved from “perimeter defense” to “defense-in-depth”
and maturing to an “agile defense” posture
Established talents and tools to assist our current efforts
Continuously educating our workforce – Be aware and be the first
line of defense
We recognize our efforts need to evolve to match ever-changing
threats
Enhancing system resiliency to cyber incidents
Identifying and coordinating activities with the right stakeholders
Cyber Security Participant
Observations
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Shared Goals
Risk Based Approach
Information Sharing and Situational Awareness
Leveraging Tools and Techniques
Security Clearance
Cyber Security Regime
Incident Management
Collaboration
What’s Next?
Smart Meters Are Just The Beginning
Smart Meters
Smart Meter Texas Portal
HAN Devices
Smart Appliances
Phase 1:
Customer
Insight
Intelligent Grid
Price control / load control
Electric vehicles
Phase 3:
Customer
Co-Creator
of Value
2010
2011
2012
Storage
Phase 2:
Customer
Engagement
Micro Grids
Advanced Grid
Aggregated Demand Management
2013
2014
2020
24
Conclusion
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“We take seriously the responsibility of protecting our
customers, employees, assets, and communities in which
we operate, and thus cyber security is a top priority for
CenterPoint Energy.
We also recognize the importance of critical infrastructure
to our national security. Because cyber threats are
constantly changing and evolving, we support voluntary
programs that encourage partnership, collaboration,
sharing of information and technology, and the
preparedness necessary to mitigate and respond to the
ever changing nature of cyber attacks.”
… Gary W. Hays, VP & CIO Centerpoint Energy
DOE Acknowledgement and
Disclaimer
Per the DOE Grant Agreement,:
“If you publish or otherwise make publicly available the results of the work conducted under the
award, an acknowledgment of Federal Support and a disclaimer must appear in the publication of
any material, whether copyrighted or not, based on or developed under this project, as follows:”
Acknowledgment: “This material is based upon work supported by the Department of Energy under
Award Number [DE-OE0000210]”
Disclaimer: “This report was prepared as an account of work sponsored by an agency of the United
States Government. Neither the United States Government nor any agency thereof, nor any of their
employees, makes any warranty, express or implied, or assumes any legal liability or responsibility
for the accuracy, completeness, or usefulness of any information, apparatus, product, or process
disclosed, or represents that its use would not infringe privately owned rights. Referenced herein to
any specific commercial product, process, or service by trade name, trademark, manufacturer, or
otherwise does not necessarily constitute or imply its endorsement, recommendation, or favoring by
the United States Government or any agency thereof. The views and opinion of authors expressed
herein do not necessarily state or reflect those of the United States Government or any agency
thereof.”
32
[email protected]
Youtube.com/CenterPointEnergyVid
Twitter.com/energyinsights
Facebook.com/CenterPointEnergy
Appendix
Lessons learned / keys to success
• Strong governance processes:
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Risk-, Change-, and Financial management
Project planning/scheduling, metrics/benefits reporting
Technical architecture, etc.
Integrate and align project team, vendors and support functions
Well defined standards and deployment plan
Consumer engagement plan
Early planning of transition from project to operations
Strong industry collaboration
 EEI
 EPRI
 DOE
 SGIP
17
Smart meters are
accurate and secure
CenterPoint Energy takes the accuracy of its meters very seriously, which is why
we have in place a rigorous testing and quality assurance process:
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Meter testing by the manufacturer at the plant and by CenterPoint Energy
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Comparison testing of smart meters vs. traditional meters
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Independent third-party accuracy tests
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Digital photos of removed meters to verify final readings
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Individual smart meter accuracy tests upon customer demand
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Independent meter software review
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Comprehensive cyber security program based on national standards
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Energy usage data belongs to the consumer:
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shared only when authorized in writing by the customer

or authorized by regulatory authorities as necessary to conduct business (such as
for billing).
Most likely cause of high bills is increased usage (e.g. heating/cooling)
14
Health and safety
cell phone
Exposure to RF emissions from
digital meters is much less than:
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Televisions and remote controls
Cellular telephones
Bluetooth earpieces and USB
Cordless telephones
Laptop computers
WiFi routers and base stations
Wireless smoke detectors
Microwave ovens
Remote garage door openers
Remote keyless automobile
systems
Motion detectors
Hair dryers
Wireless baby monitors
smart meter
16
Successes and recognition
Sharing our experience with the industry
• More than 730 tours of our Energy InSightsm technology center

Take a virtual tour at YouTube.com/CenterPointEnergyVid.
• Articles, white papers, webinars, presentations, documentaries
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Intelligent Utility, Transmission & Distribution World, Energy Central …
World Energy Council, the White House, GridWise, Distributech, PBS
• Collaborations
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Smart Grid Energy Training Coalition
Itron OpenWay Executive Forum
EEI Smart Grid Advisory Group
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Smart Grid Consumer Collaborative
U.S. Dept. of Energy – cyber security, green button
• 2011 survey of CNP customers shows 80% approval of smart meters
“CenterPoint Energy is on the point of the spear in teaching the rest of the
United States and the world how we can work with consumers to enhance their
18
electrical usage …” U.S. Secretary of the Interior Ken Salazar
The future

Integrated advanced transmission, distribution, and meter
management and control system
 Advanced analytical applications which create new
operations-, customer-, and market-based solutions
 Two-way, real-time customer engagement/communication
system
 Business transformation initiatives that advance
processes and create new business outcomes
 Aggregated demand response platform to enable virtual
supply of generation
19
Some collaboration stakeholders

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