Smart Grid - NEMA

nema.org

Smart Grid - NEMA

The Association of Electrical and Medical Imaging Equipment Manufacturers n www.nema.org n June 2011 n Vol. 16 No. 6

Logging on to

Smart Grid

ALSO INSIDE

In Search of the Killer App

Communicating Maturity and Progress in Smart Grid

Cybersecurity, Interoperability, and Collaboration

Smart Grid and Vehicle Communications

Mexican Commission Invests in Smart Grid


CONTENTS

electroindustry

Publisher | Joseph Higbee

Managing Editor / Editor in Chief | Pat Walsh

Contributing Editors | Andrea Goodwin

William E. Green III

Chrissy L. Skudera

Economic Spotlight | Timothy Gill

Standards | Al Scolnik

Washington Report | Kyle Pitsor

Art Director | Jennifer Tillmann

Media Sales Team Leader | Stephanie Bunsick

FEATURES:

Smart Grid Maturity Model Promotes

Manufacturer-Utility Partnership ...................8

Pushing for Progress in the Realm of

Smart Home Appliances ............................... 12

Standardizing Field Testing of

Metering Installations ................................. 14

Cybersecurity in the Smart Grid .................... 15

Interoperability, Interoperability,

Interoperability— Three Perspectives

on a Key Feature of Smart Grid ....................... 16

DOE Creates Repository

for Information about Smart Grid Projects .... 17

NIST and IEC View Roadmaps

to Smart Grid ............................................... 18

NOTES:

NEMA Officers ................................................................2

Comments from the C-Suite ..........................................2

Views from the Top ........................................................3

Regulatory Insight .........................................................5

DEPARTMENTS:

Washington Report ........................................6

FERC Removes Barrier to Demand Response ................6

NEMA-Backed EV Infrastructure Bill

Introduced in House ......................................................6

NEMA Weighs in on State Product

Stewardship Legislation .................................................7

Congress Considers NEMA-Backed Lithium Battery

Transportation Regulations ...........................................7

Administration and Congress Prepare for FTAs

with Korea, Colombia, and Panama ..............................7

ECO BOX

NEMA electroindustry text and cover pages are printed using SFI certified Anthem

paper using soy ink.

• SFI certified products come from North American forests

managed to rigorous environmental standards.

• SFI standards conserve biodiversity and protect soil and

water quality, as well as wildlife habitats.

• SFI forests are audited by independent experts to ensure

proper adherence to the SFI Standard.

• SFI participants also plant more than 650 million trees each year to keep these forests thriving.

electroindustry (ISSN 1066-2464) is published monthly by the National Electrical Manufacturers Association, 1300 N. 17th Street, Suite

1752, Rosslyn, VA 22209; 703.841.3200. FAX: 703.841.5900. Periodicals postage paid at Rosslyn, VA, and York, PA, and additional

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Electroindustry News ................................... 19

Vids for Grids— Behind the Scenes ...........................19

Marketing Inefficiencies Waste Money .......................20

Illuminations Weekend to Feature

Syndicated Columnist George Will ..............................20

NEMA to Host Electrical Distributors Day ....................20

Home Safety Basics: The Basement

and Utility Room ..........................................................21

National Cancer Survivors Day

Medical Imaging and Radiotherapy Offer

Medical Imaging and Radiotherapy Offer Hope in Identifying

and Treating Disease Hope in Identifying and Treating

Disease .........................................................................22

Code Actions/Standardization Trends ............ 23

How and Where Does LVDC Fit into

Sustainability Puzzle? ..................................................23

OSHA Ruling Impacts Nationally

Recognized Testing Laboratory Program ....................25

Technical Representatives Build Clout in

Codes and Standards ...................................................26

Maine Considers Replacing 2008 NEC® with

2011 Edition .................................................................26

NFPA and UL Workshops..............................................27

Magnet Wire Section Welcomes Technical

Associate Membership ................................................28

International Roundup ................................ 29

NEMA Discusses Smart Grid with Mexican

Federal Commission of Electricity ...............................29

Economic Spotlight ...................................... 31

Demand for Industrial Control Equipment

Continues to Rise..........................................................31

North American Business Conditions

Continued to Advance in May .....................................32

Registration is now open for Illuminations

Weekend: Where Leaders and Ideas Meet

October 28-29

Mayflower Renaissance Hotel

Washington, D.C.

Visit www.nema.org/illuminations.


Officers

Chairman

David J. FitzGibbon

Vice Chairman & CEO

ILSCO Corporation

First Vice Chairman

Dominic J. Pileggi

Chairman of the Board & CEO

Thomas & Betts Corporation

Second Vice Chairman

John Selldorff

President & CEO

Legrand North America

Treasurer

Christopher Curtis

President & CEO

Schneider Electric

Immediate Past Chairman

Charlie Jerabek

Vice Chairman

OSrAm Sylvania

President & CEO

Evan R. Gaddis

Secretary

Clark R. Silcox

2 NEMA electroindustry • June 2011

David J. FitzGibbon

Chairman

COMMENTS FROM

THE C-SUITE

It’s nearly summer, the season of growth, time to welcome the fruits of an improving

economy and high levels of activity by this association in all our product areas—electric

vehicles, whole body scans, energy storage, lighting, high performance buildings, and the

ever present Smart Grid, the topic of this month’s issue of electroindustry.

I am very proud of our leadership in the National Institute of Standards and Technology

(NIST) Smart Grid Federal Advisory Committee. NEMA continues to work with state

and federal lawmakers to provide incentives for companies that produce, transport, and

consume electricity more efficiently

For manufacturers, distributors, and utilities, NEMA’s Smart Grid Interoperable

& Conformant (SGIC) testing scheme brings stakeholders together under NEMA’s

auspices to identify points of interoperability in Smart Grid standards and design test

specifications that make sense to everyone. NEMA members are leading the way in

developing these standards and encouraging investment in these technologies.

But we don’t stop there. We’ve made advancements in Canada, Mexico, Latin America,

the Caribbean, and most recently China. We continue to create and promote programs

focused on common standards and technologies.

Ultimately, we are empowering the consumer. This goes beyond lighting and energy

controls. Two-way communication and power flows are making it easier to integrate

renewables and other smart elements, like electric vehicles. As Smart Grid progresses, we

are getting closer to energy management at home with smart appliances and advanced

metering—all of which will soon be routinely accessible through cell phones.

In closing, I’m reminded that summer also brings an opportunity for the NEMA Board of

Governors to entertain strategic initiatives for 2012. I urge members to provide input to

the NEMA staff prior to the July 14 Board of Governors meeting for our consideration so

NEMA can continue to grow and provide our members with what they need to succeed

in today’s environment.

It’s the season of growth. Enjoy it. ei


Views from the Top

Ű Recent Smart Grid Progress Needs End-to-End Interoperability,

Collaboration to Keep Moving in the Right Direction

Enrique Santacana, President and CEO, ABB Inc. and ABB Region Manager of North America

Just three years

ago, the term

Smart Grid

was a hot topic

of discussion but

there was little

to no consensus

about what

the term really

meant. Everyone

agreed that the grid had an aging

infrastructure— such as power

transformers more than 40 years old on

average and under great stress—and that

we needed to modernize our existing

power systems to incorporate many of

the new technologies and automation

solutions being made available.

Fast forward to the present, and it is

clear we have made great strides in

not only defining Smart Grid but in

optimizing the grid with new solutions,

technologies, and applications. The early

emphasis on Smart Grid by the power

industry and the media focused on

smart meters and advanced metering

infrastructure (AMI), since that was the

primary consumer touch point. But over

the past year, talk of AMI —an enabling

technology that requires the availability

of two-way communications—has given

way to a broader discussion of endto-end

communications capabilities

involving distribution grid management,

distribution automation, demand

response and transmission systems

across the grid.

Today, utilities have made great

strides in optimizing the grid with

new end-to-end technologies and

applications, but this is only the

beginning of a long transformation.

These advancements can be broken down

into five broad categories for how Smart

Grid technologies improve the grid

infrastructure, making the grid work

smarter, not harder.

Increased capacIty

The demand for electrical power will rise

faster than all other forms of energy over

the next decade. By 2020, there could

possibly be as many as three million

electric vehicles (EV) representing or

around two percent of all cars on the

road. The grid, as it stands today, needs

to be smarter to support these cars and

the new infrastructure, such as EV fast

charging stations that will be needed to

make EV a viable option to traditional

gasoline powered vehicles. It has to

be built.

In recent months we have also seen

exciting advances in distributed

generation, distributed energy

storage, and demand response. On the

transmission side, flexible alternating

current transmission systems (FACTS)

and underground/undersea high voltage

direct current transmission systems

(HVDC) are increasing capacity on

existing lines.

Increased relIabIlIty

The aging of T&D assets continues to be

a major issue for many grid operators.

These assets are aging faster than they

can be replaced. New technologies and

services that closely manage the health

and the lifecycle of crucial assets like

high voltage transformers are being

implemented. This has not been the case

with distribution, where the volume

of assets is significantly greater and

is highly distributed across the grid.

But this is changing with the Smart

Grid system expansion where utilities

are creating a distribution network

of sensors, monitors, and controllers,

that when combined with lower cost

communications, enables utilities to

implement improved asset management

and operational processes. Fault

detection, isolation, and restoration

solutions significantly reduce customer

outage minutes.

Increased effIcIency

Producing, transmitting and

distributing, and using energy is an

inefficient business by nature. Up to

80 percent of energy can be lost in the

process. New technologies—such as Volt/

Var optimization, smart sensors, and

demand response management systems

on the distribution grid, and static var

compensators (SVC) and other FACTS

systems that provide more efficient use

of existing transmission infrastructure,

not to mention reduced environmental

impact—have already helped to reduce

energy losses and to increase asset

utilization. For example, Volt/Var

optimization programs that keep power

levels within the optimal range save

as much as five percent in generation

costs. These solutions are proving that

energy efficiency is actually the greatest

renewable energy source.

Increased sustaInabIlIty

Renewable energies continue to grow as

a major source of new energy production

in the coming years, particularly as many

states have already mandated renewable

portfolio standards over the next decade.

As these alternative energy sources are

variable by nature, the industry has made

great progress in developing new and

more reliable forms of energy storage

for peak demand or for supplementing

energy when renewable production is

low. HVDC transmission and FACTS

solutions can integrate remotely located

or offshore renewable generation. Virtual

power plant solutions are now allowing

grid operators to integrate distributed

energy resources into the grid, managing

and dispatching them effectively.

Increased consumer engagement

Customer involvement is crucial to the

future of the Smart Grid. Many utilities

are now engaging consumers, who either

want to reduce the environmental impact

of their power consumption, or simply

NEMA electroindustry • June 2011 3


Views from the Top

find ways to decrease monthly bills.

Utilities are starting to provide solutions

that go beyond simple smart metering.

New demand response management

systems are giving utility customers the

power to set their own preferences, such

as delaying energy use until it’s available

from a customer’s preferred source (e.g.,

wind). New critical peak pricing programs

have induced a drop in peak demand and

usage by up to 20 percent.

Infrastructure upgrades centered

around these five key challenges—

and opportunities—of Smart Grid

Ű In Search of the Killer App

Paul A. Molitor, Assistant Vice President, Strategic Initiatives and Special Projects

I’ve attended a

number of Smart

Grid conferences

over the past two

years where the

concept of the

“killer application,”

or “killer app,”

was discussed.

Merriam-Webster describes a killer app

as “a feature or component that in itself

makes something worth having or using”

(www.m-w.com).

A number of killer apps can be cited

in other fields. For computers, cheap

memory is often credited with being the

breakthrough that enabled the rapid

advancement of computing power. In

terms of the Internet, the creation of

graphic interfaces and web browsers built

a demand for services that has sustained

the industry for almost two decades. And

today’s iPods® can trace their lineage

back to a portable cassette player known

as the Sony Walkman®. 1

The playbook that guides most of the

effort for Smart Grid in the U.S. is the

National Institute of Standards and

Technology (NIST) Framework and

Roadmap for Smart Grid Interoperability

Standards (NIST Special Publication

4 NEMA electroindustry • June 2011

development have begun and will

continue to escalate, especially now that

the U.S. economic recovery has improved

the outlook for the electroindustry.

But there is one key underlying issue

across each of these solutions that must

be embraced: grid interoperability. The

technological breakthroughs involving

grid optimization from generation

across the grid to the home have been

exciting and diverse. But many utilities

are concerned, rightfully so, that the

technologies they develop and introduce

to the market today will become obsolete

1108), which describes eight priority

application areas: wide-area situational

awareness, demand response and

consumer energy efficiency, energy

storage, electric transportation,

cybersecurity, network communications,

advanced metering infrastructure (AMI),

and distribution grid management.

It could be that the killer app for the

Smart Grid is one of these eight, or it

may be some application that has yet to

be developed.

In my opinion, there seem to be two

areas that are emerging as the fertile

ground from which we may harvest the

killer app: distribution automation and

home energy management.

If the U.S. is serious about promoting

rooftop solar panels, backyard wind

turbines, and electric vehicles (EVs),

we can’t survive without distribution

automation. Renewables tend to be

highly intermittent based on local

weather patterns; we also cannot plan

for electric vehicle charging because of

the variable nature of the way we use

our cars. Neither the intermittent nature

of renewables nor variable EV charging

patterns lend themselves to a centralized

control model.

or isolated in five years without standards

that are future-proof and scalable, and

that enable interoperability between nonproprietary

systems.

Many Smart Grid standards are in the

works, but a continued dedication to and

acceptance of these end-to-end standards,

along with industry collaboration, is

needed to ensure that these breakthroughs

in grid capacity, reliability, efficiency,

sustainability, and consumer involvement

continue to transform our current power

grid into the Smart Grid of the twentyfirst

century. ei

The grid is simply going to have to

respond to changes much faster than

utility operators have been used to, and

many of those changes will be localized

based on weather and other variables.

Distribution automation is the only

way to effectively manage how the

grid responds.

In terms of the home, if consumers

become more engaged in managing their

energy usage, it will completely change

the game for electric utilities. Imagine

a TiVo®-like interface 2 that permits you

to schedule energy usage in the same

way you currently make many of your

entertainment choices. This would not

only allow you to take advantage of

time-of-use rates for electricity, but the

scheduling information could also be

used by the utility company to optimize

the grid.

I think the industry is still searching for

its killer app. But with billions of energy

usage dollars on the line, it won’t be too

long before we start to see new product

offerings. Someday we’ll all look back

and recognize them as having truly made

a difference in the Smart Grid. ei

1 iPod is a registered trademark of Apple, Inc. Walkman is a

registered trademark of Sony Corporation.

2 TiVo and the TiVo logo are registered trademarks of TiVo Inc.


Regulatory Insight

Ű Smart Grid Community Evolves with Standards

Christopher Irwin, Smart Grid Standards and Interoperability Coordinator for the Office of Electricity, U.S. Department of Energy

The boundaries we

have drawn around

this undertaking

we call Smart

Grid have created

a community

out of long-time

friends, associates,

competitors, and

strangers—machine and human alike.

Never has a meter been asked to sustain

the same semantic concept of its data

that the wholesale market would

associate with it. Utilities have never

worked so closely with so many vendors

they have no financial relationship with,

and in this domain, federal government

efforts have never been so well

coordinated.

In many aspects, this is an uncomfortable

process, but we are ready for it.

While many federal entities have

an interest in Smart Grid’s ongoing

standards work and ultimate goals from

an issue-based or tactical perspective,

I believe only three have an enduring

strategic responsibility: NIST (National

Institute of Standards and Technology),

FERC (Federal Energy Regulatory

Commission), and DOE (Department

of Energy). Stated in perhaps oversimplified

terms, NIST advocates for

the process, FERC advocates for the

customer and market, and DOE

advocates for the system.

Our respective roles provide for an

effective structure for collaboration

and resolution of conflicts. There is a

small but necessary tension that exists

because our roles are not the same,

but our frequent communication and

collaboration allow for resolution early

and often. We have a balance to maintain

the Smart Grid Interoperability Panel

(SGIP) as a whole; the better the balance

in the SGIP, the easier it is to balance our

federal responsibilities.

As intended, all three federal entities are

coupled loosely with the actual work of

identifying and shaping standards, and

pursuing interoperability. Our status as

stakeholders is much the same as that of

every other participant in the process,

and we tread lightly on the issue-based or

tactical level.

In the launch process, NIST has

necessarily taken a more active position,

but I believe its long-term participation

will be much the same. We are essentially

part of the fabric of the process. We all

participate as a matter of course, and in

accordance with our responsibilities. But

as the chief advocate of the process, NIST

has had some very heavy lifting over the

past two years, and DOE has sought to

support NIST in every way.

Soon we will cross the three-and-a-halfyear

mark since the passage of EISA,

the Energy Independence and Security

Act of 2007, which defines much of our

individual federal functions in shaping

the Smart Grid. The challenge to NEMA

and its members is to continue to push

the boundaries of innovation in a way

that is compatible with the federal

charter for Smart Grid established

in EISA, and the various state and

local interests.

Our respective roles provide

for an effective structure for

collaboration and resolution

of conflicts.

I look forward to continuing to work

with NEMA in this effort, and remain

committed to our shared vision of a

better energy future for the U.S.

Together, we are creating something

of value. ei

Christopher Irwin is the Smart Grid

Standards and Interoperability

Coordinator for the Office of Electricity

in the U.S. Department of Energy.

He is an active member of the SGIP

and participates in White House and

interagency collaborations on Smart Grid

policy and implementation efforts.

NIST Smart Grid Interoperability Panel (SGIP) Governing Board. John Caskey, NEMA Assistant Vice

President for Industry Operations (first row, fourth from left) is Vice Chair of the Governing Board of the

Smart Grid Interoperability Panel

NEMA electroindustry • June 2011 5


Washington Report

Ű FERC Removes Barrier to Demand Response

In March, the Federal Energy Regulatory

Commission (FERC) finalized a rule that

will promote the adoption of demand

response (DR) technologies.

This decision will influence electricity

customers to enter into voluntary

agreements that require them to reduce

usage when a utility transmits a DR

signal; in return, they are compensated

according to their level of reduction.

DR signals are likely to be sent on hot

summer days (high demand) and in

the event of a disruption in generation

capacity (low supply).

The rule requires the market price,

known as the locational marginal price

(LMP), to be paid to DR resources in

organized wholesale energy markets.

Valuing DR this way on the wholesale

market will encourage wholesale

Ű NEMA-Backed EV Infrastructure Bill Introduced in House

On May 3, U.S. Representatives Judy

Biggert (R-IL), Edward J. Markey (D-

MA), Jerry McNerney (D-CA), and

Anna Eshoo (D-CA) introduced

HR 1685, the Electric Drive Vehicle

Deployment Act of 2011.

Over the past few months, the NEMA

Electric Vehicle Supply Equipment/

Systems (EVSES) Section provided

significant input to the bill’s sponsors.

The result is legislation that implements

various incentives and programs to foster

adoption of electric vehicles (EVs) and

EV infrastructure.

“Electric vehicle supply equipment is a

central component of the Smart Grid

and the investments made through

this legislation will pay dividends—job

creation, enhanced energy security, and

a cleaner environment,” said NEMA

President and CEO Evan R. Gaddis.

6 NEMA electroindustry • June 2011

customers, such as industrial users, to

engage in DR themselves, or in the case

of utilities, to implement DR programs

for such customers as commercial

building owners.

LMP will be paid to DR customers

in situations when it meets a costeffectiveness

threshold. This threshold

will reflect DR’s impact on remaining

loads to prevent ratepayers who are not

engaged in DR from having to incur a

greater cost per unit. Cost-effectiveness

thresholds are to be determined by

regional transmission organizations and

independent system operators by July 22,

2011, in a filing to FERC.

Demand response is one of the eight

priority areas identified in the National

Institute of Standards and Technology

(NIST) Framework and Roadmap for

HR 1685 extends the tax credit through

2014 for residential and commercial

purchase and installation of electric

vehicle charging infrastructure. The

credit is set to expire at the end of this

year. The bill expands the tax credit from

30 percent with a cap of $30,000 for

businesses and $1,000 for individuals to

Recovery Act levels of a 50 percent credit

with a cap of $50,000 for businesses and

$2,000 for individuals.

In addition to the tax provision, this

bill establishes:

• a deployment communities grant

program at the Department of

Energy to identify and demonstrate

best practices in select communities

for incorporating EVs and EV

infrastructure into the grid

• bonding authority for EV

infrastructure investments

Smart Grid Interoperability Standards.

Because interaction between utilities and

buildings is central to the Smart Grid

and the implementation of DR, NEMA’s

High Performance Buildings Council is

developing with ASHRAE (American

Society of Heating, Refrigerating and

Air-Conditioning Engineers) SPC 201,

the interoperability standard that will

allow all loads, generators, and meters

within a high performance building to

communicate in a common “language”

with a utility.

While demand response has already

begun to develop in many places around

the country, this ruling will increase

competition, allow new market entrants,

and drive down costs for ratepayers. ei

Jim Creevy, Director of Government

Relations | jim.creevy@nema.org

• a loan program for manufacturers

to reequip their facilities to produce

EVSE or EV components

• a program to encourage adoption of

EVs by federal fleets

The same sponsors proposed a similar

bill in the 111th Congress, but it was not

acted upon. HR 1685 is joined in the U.S.

Senate by Senator Debbie Stabenow (D-

MI), who introduced S 298, the Charging

America Forward Act. and Senator Jeff

Merkley’s (D-OR) and Senator Lamar

Alexander’s (R-TN) S 948, the Promoting

Electric Vehicles Act.

A hearing was held on S 948 in the

Senate Energy and Natural Resources

Committee on May 19. ei

Jim Creevy, Director of Government

Relations | jim.creevy@nema.org


Ű NEMA Weighs in on State Product Stewardship Legislation

NEMA supports product stewardship

as a basis for end-of-life product

management policies. See www.nema.org/

EOLManagement-ElectricalProducts.

The industry believes that shared

responsibility and risk provide the best

chance for the most efficient, cost-effective

programs. This is consistent with the

U.S. Environmental Protection Agency,

which states that product stewardship

“calls on those in the product lifecycle—

manufacturers, retailers, users, and

disposers—to share responsibility for

reducing the environmental impacts

of products.” (www.epa.gov/wastes/

partnerships/stewardship/basic.htm)

NEMA testified recently in several states

on product stewardship legislation that

would place the entire legal and financial

responsibility on manufacturers. Hearings

on bills affecting energy-efficient lamps

and mercury switch thermostats have

been convened in Oregon, Vermont,

Connecticut, and Massachusetts.

Members in these product areas have

a history of proactively ensuring that

Ű Congress Considers NEMA-Backed Lithium Battery Transportation Regulations

In the context of legislation directing

the activities of the Federal Aviation

Administration, a conference committee

took up the issue of how the U.S.

should regulate lithium batteries in

air transportation.

NEMA urged the committee to adopt

provisions passed by the House that

would ensure U.S. regulations on lithium

products are managed properly at end-oflife.

The industry will support legislation

that complements these efforts, embodies

shared responsibility, and makes sense for

the particular product and its market.

Bills introduced in Connecticut and

Massachusetts would add unnecessary

costs and complications to the

industry-funded Thermostat Recycling

Corporation (TRC), a prominent example

of NEMA’s accomplishments in product

stewardship. With data and information,

we demonstrated flaws in these bills.

In Massachusetts, we supported an

alternative bill based on precedents that

passed in Rhode Island and Illinois. The

latter model would increase the visibility

of and access to TRC collection program

while ensuring that key parties that

remove, handle, and store thermostats

(i.e., wholesalers and contractors) have

legal obligations as well. Experience has

shown this to be a much more costeffective

approach.

We also testified in Oregon, Vermont,

and Massachusetts on recycling mercury-

added lamps. Producers of compact

fluorescent, linear fluorescent, and other

energy-efficient lamps promote recycling

through many channels, but would be

forced under this legislation to implement

and fund statewide systems.

In testimony and meetings, we

explained why the “extended producer

responsibility” approach that forces

manufacturers to internalize recycling

costs is simply not feasible for lamps.

Instead, the industry supports a uniformly

applied, cost-minimizing system of

financing that funds recycling through

retail sale fees while simultaneously

educating consumers.

NEMA has either achieved or expects

to achieve favorable outcomes on these

issues in all states except Vermont, where

the legislature and governor strongly

support the concept that “manufacturers

must pay.” ei

Mark A. Kohorst, Senior Manager

of Environment, Health, & Safety |

mar_kohorst@nema.org

Ű Administration and Congress Prepare for FTAs with Korea, Colombia, and Panama

In April, U.S. Trade Representative Ron

Kirk wrote to trade committee leaders

on Capitol Hill indicating readiness

to discuss how best to move forward

with Congressional consideration of

legislation to implement outstanding

metal and lithium-ion batteries, as well as

products that are packed with or contain

such batteries, are brought quickly

into line with current international

standards set by the International Civil

Aviation Organization.

NEMA and other industry groups have

opposed U.S. efforts to put requirements

in place that would be more restrictive

free trade agreements (FTAs) with South

Korea, Colombia and Panama.

NEMA supports all three agreements

as they create new market access

opportunities for members in growing

economies. Formal consideration of the

but would not provide safety benefits.

A Department of Transportation

rulemaking on lithium batteries has

been delayed in part due to NEMA and

industry opposition. ei

Craig Updyke, Manager,

Trade and Commercial Affairs |

cra_updyke@nema.org

legislation is expected soon, with a goal

of achieving final passage in July. ei

Craig Updyke, Manager,

Trade and Commercial Affairs |

cra_updyke@nema.org

NEMA electroindustry • June 2011 7


Smart Grid Maturity Model

Promotes Manufacturer-Utility Partnership

The modernization of the electric power grid has profound implications

not only for utilities and consumers, but also for the manufacturers that

supply them with technology and equipment. Electrical manufacturers

provide innovative solutions, promote investment in grid improvements, and

contribute to the development of interoperability standards essential to the

Smart Grid vision.

In 2007, the Smart Grid Maturity Model (SGMM) was created

by a group of utility companies with the goal of helping advance

the adoption and deployment of Smart Grids across the

industry and around the world. As key partners in this industry

transformation, manufacturers are also important stakeholders

in the growing global SGMM community.

SGMM is a management tool that helps utilities plan Smart Grid

implementation, prioritize investment options, and measure

their progress. Developed for utilities by utilities, SGMM is

hosted by the Software Engineering Institute (SEI) at Carnegie

Mellon University, which specializes in software and systems

engineering, security best practices, process improvement,

and maturity modeling. The SEI is maintaining and evolving

the SGMM as a resource for industry transformation with the

support of the U.S. Department of Energy and input from a

broad array of stakeholders.

8 NEMA electroindustry • June 2011

austin montgomery, smart grid program lead

david White, smart grid maturity model project manager

software engineering Institute,

carnegie mellon university

SGMM describes eight domains containing logical groupings

of Smart Grid characteristics or capabilities, representing key

elements of Smart Grid strategy, organization, and operation.

• Strategy, Management, and Regulatory (SMR)

• Organization and Structure (OS)

Grid Operations (GO)

• Work and Asset Management (WAM)

• Technology (TECH)

• Customer (CUST)

• Value Chain Integration (VCI)

• Societal and Environmental (SE)

Utilities use SGMM to assess their current state of Smart

Grid implementation, define their goals for a future state,

and generate inputs into their roadmapping, planning, and

implementation processes.

Major investor-owned utilities and small public power utilities,

in the U.S. and around the world, have reported finding the

model a valuable tool to help them:


• identify where they are on the Smart Grid landscape;

• develop a shared Smart Grid vision and roadmap;

• communicate with internal and external stakeholders using a

common language;

• prioritize options and support decision making;

• compare themselves to the rest of the community;

• measure their progress;

• prepare for and facilitate change.

Assessing and Applying SGMM

Applying the model begins with an assessment of a utility using

the SGMM Compass, a survey instrument containing questions

corresponding to each of the characteristics in the model, as well

as demographic and performance information.

An SGMM assessment yields a maturity rating for each of

the model’s eight domains. The levels of maturity represent

defined stages of a utility’s progress toward achieving its Smart

Grid vision in terms of automation, efficiency, reliability,

integration of alternative energy sources, improved

customer interaction, energy and cost savings,

and access to new business opportunities

and markets.

By assessing its current maturity in each

domain and taking steps to increase its

levels as appropriate, an organization

will move closer to obtaining the

desired benefits of implementing

Smart Grid features. Maturity levels

must be viewed in the context of an

organization’s unique business goals

and regulatory environment—achieving

a high level in every domain is not

necessarily a suitable goal for every utility.

Utilities have two options for conducting

an SGMM assessment and using

the model: working with an SGMM

Navigator, an industry expert trained and

certified to guide utilities through the SGMM

process, or completing a self-assessment.

Asia/Pacific

13%

EMEA

13%

Other

14%

sgmm navIgatIon

SGMM Navigation is a structured approach to applying SGMM

through a facilitated workshop process. The utility’s Smart Grid

team works with an SGMM Navigator to complete the SGMM

LOggINg ON TO SMART gRID

Compass on a consensus basis, which promotes valuable internal

discussion of current status and shared objectives. After scoring

and analyzing the survey, the Navigator leads a second workshop

to review the survey results and use them to set consensus

aspirations for an agreed upon planning horizon, and to discuss

related motivations, obstacles, and required actions. These

outputs are valuable inputs into the utility’s Smart Grid planning

and implementation process.

self-assessment

Utilities may also complete the SGMM Compass independently.

They will receive a scoring report with maturity level scores

for each domain in the model, as well as aggregate data from

the other utilities that have completed the survey for use in

comparative analysis. Utilities choosing the self-assessment

option will also have access to individualized coaching to help

interpret the results.

As noted earlier, the SGMM Navigation process yields a

maturity profile of the utility’s current state and a projection

of a desired future state, as well as a structured compilation of

motivations, actions, and obstacles involved in realizing the

mutual aspirations.

United States

60%

Figure 1 shows a breakdown of utility type among

the expanding SGMM community. Courtesy of

Carnegie Mellon University SGMM

Table 1 summarizes motivations, actions, and obstacles

documented by 20 utilities that participated in

SGMM Navigations in 2010. Sharing these issues

between utilities and their manufacturer

partners can help make collaboration

more effective.

The Growing

SGMM Community

SGMM users range from large investorowned

utilities to small municipalities.

Some are pioneers in Smart Grid

implementation; others are just beginning

to think about Smart Grid. The way in which

they use the model differs according to their

circumstances, but all have reported benefits

from using this community resource.

For utilities that have embarked on a

Smart Grid journey, SGMM has proven

to be a useful tool to help management take a step back from

day-to-day activity, foster cross-organization discussion and

consensus, assess progress, and refine plans for the future. A

number of utilities have done multiple SGMM assessments over

time, using the model as a standard to measure progress and

improve strategy and implementation.

NEMA electroindustry • June 2011 9


Highlights from the Aspiration Workshops Conducted in 2010

SGMM

Domains

SMR

OS

GO

WAM

TECH

CUST

VCI

SE

10 NEMA electroindustry • June 2011

Motivations

What motivates your aspirations?

• improved business performance,

success, and growth

• improved productivity and profitability

• empowered and involved workforce

• improved decision making

• addressed aging workforce

• supported distributed generation (DG)

cost savings

• resiliency and reliability

• decreased recovery time

• increased asset utilization and extend

asset life

• systems integration and compatibility

• security and critical infrastructure

protection

• complex grid operations management

improved customer

• satisfaction

• choice

• quality of service

• empowerment

• market demand for DG

• enabled supply and demand

management

• fuel diversity

• reduced emissions

• meeting public policy objectives

• being socially responsible

• sustainability

• improved image

Actions

What actions must happen?

• integrate with existing strategy

• secure funding

• prioritize and plan

• educate stakeholders

• create unified vision, strategy, goals,

and plans

• provide training

• transform policies and processes

• deploy the necessary infrastructure

• implement plan

• develop improved analytic capabilities

• improve geographic information

system (GIS)

• develop standards for new technologies

• enforce architecture and standards

• fill application gaps

• devise IT master plan

• develop dynamic data distribution model

• develop customer enabling technologies

and programs

• understand customer wants/needs

• educate customers

• obtain regulatory approvals

• create new rate structures

• promote adoption of enabling

technologies

• develop DG incentives

• develop clear direction

• define and report metrics and measures

• support technological advancements

Obstacles

What obstacles must be

overcome?

• budget constraints and justification

• skepticism of value

• scale, scope, and pace of change

• resistance to change

• culture

• skill gaps

• interoperability and availability of

technology

• risk and complexity

• security and privacy

• high-risk environment

• managing large amounts of data

• perceived return on investment (ROI)

• cybersecurity risks

• regulatory and statutory issues

• increased systems complexity

• technology lifespan

• customer willingness, acceptance, and

adoption

• privacy issues

• customer attitudes and behaviors

• tariff structure

• reduced revenue from reduced use

• marketplace readiness

• cross-company pricing

• ability to make it cost effective

• balancing conflicting goals among

stakeholders

Figure Table 1 10: shows Data data points points gathered gathered during during aspirations aspirations workshops workshops conducted conducted in 2010 in 2010 with with 20 utilities 20 utilities. Courtesy of Carnegie Mellon University SGMM


For utilities that are just starting out, SGMM

provides a reference set of community

experience and can also help establish a Smart

Grid roadmap and strategy. Some utilities have

also used SGMM outputs to communicate

with stakeholders about the benefits and costs

of Smart Grid investments.

Utilities and government authorities have

even applied the SGMM in national and

regional roadmapping initiatives. In the

summer of 2010, the Mexican national utility,

Comisión Federal de Electricidad (CFE), and

the Mexican Energy Ministry, Secretaría de

Energía de México (SENER), became the

first organizations to apply the SGMM at

the national level as an aid in developing a

national Smart Grid roadmap. CFE is one

of the world’s largest utilities, serving 33.9

million customers 1 .

A group of utilities in India has also recently

participated in an SGMM Navigation through

a project supported by the Department

of Energy and U.S. Agency for International Development

(USAID). Global interest in using SGMM to develop Smart

Grid roadmaps and share lessons learned across the community

continues to grow.

As of April 2011, more than 100 utilities have used SGMM,

representing a cross section of utility types and sizes.

As more and more utilities around the world participate and

the experience base around the SGMM grows, it becomes

an increasingly valuable resource for helping to inform the

industry’s Smart Grid transformation.

manufacturer Involvement In sgmm communIty

Equipment manufacturers and technology vendors are key

partners in Smart Grid implementation and important

stakeholders in the SGMM community. As the utility industry

transforms itself, it will require new ways of thinking and

communicating about utility-vendor collaboration. SGMM can

provide a basis for developing a shared Smart Grid vision and

roadmap for measuring progress.

Specifically, the model can be useful to manufacturers

in providing:

• an objective, industry standard framework and taxonomy

for discussing Smart Grid efforts;

• insight into utility strategic planning and investment

decision making;

25.8 % Distribution Only

2.2% Transmission Only

27 % Generation, Transmission,

Distribution, Retail

LOggINg ON TO SMART gRID

SINGLE FUNCTION

FULLY INTEGRATED

4 Functions

PARTIALLY INTEGRATED

2 Functions

• appreciation of the risks and tradeoffs utilities face, including

technology risk;

• aggregate data on the community’s current state, desired

future state, and progress from one to the other;

• performance feedback on Smart Grid implementation;

• a platform for sharing information, lessons learned, and

potential best practices;

• awareness of the role of certain technologies in utility

modernization plans;

To learn more about how manufacturers can participate in

the growing SGMM community, please visit the Software

Engineering Institute website www.sei.cmu.edu/smartgrid/tools. ei

The Carnegie Mellon Software Engineering Institute (SEI) works

closely with defense and government organizations, industry, and

academia to address the challenges of grid modernization. Austin

Montgomery is Smart Grid Program Lead. David White is Project

Manager and a core member of the development team for the SEI

Smart Grid Maturity Model.

1 See NEMA Discusses Smart Grid with Mexican Federal Commission of Electricity, page 29.

2.2 % 2.2% Generation, Distribution

Generation, Transmission

9 % Transmission Distribution

4.5% Generation, Transmission,

Distribution

12.4% Transmission, Distribution,

Retail

PARTIALLY INTEGRATED

3 Functions

10.1 % Distribution, Retail

4.5% Generation, Distribution,

Retail

Figure 2 illustrates the distribution of SGMM users by region. Courtesy of Carnegie Mellon

University SGMM

NEMA electroindustry • June 2011 11


Pushing for Progress

in the Realm of Smart Home Appliances

The advent of smart appliances represents a significant development in

potential residential demand response capability of the Smart Grid. In the

near future, Smart Grid technology and systems integrated into appliances

and personal devices will allow consumers to automatically control energy use

and costs, minimizing customer behavioral changes and maximizing savings

on electric bills.

The consumer use of smart appliances will offer significant

benefits to national and regional demand reduction programs.

The integration of smart appliances offers consumers the

opportunity to save money while providing utilities with a

mechanism to more efficiently operate the grid. In the U.S.,

kitchen appliances consume about 300 billion kWh of electricity

annually and laundry appliances use another 76 billion kWh,

according to the U.S. Department of Energy. If just five percent

of all residential energy usage could be shifted to off-peak hours,

and if utility companies provide a 40 percent savings for off-peak

time-of-use rates, across all households in the U.S. this would

amount to a total savings of almost $900 million on residential

electric bills.

Further, the integration of smart appliances into the Smart

Grid will help reduce the need for the additional cost and

infrastructure of peaker plants, so called because they generally

run only when there is high (peak) demand for electricity.

Flex Your Power, California’s energy-efficiency marketing and

outreach campaign, estimates the cost of reserving these plants

for only a few hundred hours of service per year is more than $1

billion annually.

Home area netWorks

In order to take advantage of the capabilities of smart appliances,

it is important to identify general home architectures to

address many of the challenges present in common residential

installations. The architecture must provide for communications

with utility devices, as well as third-party services and

adaptations that will be required as the Smart Grid grows.

AHAM’s recent assessment of the home appliance industry’s

evaluation of communications protocols suggests that the best

communications architecture at this time features a “hub” or

gateway that can communicate using common protocols and

serve as the adapter or bridge to other devices on the HAN

(home area network). This type of architecture is consistent

12 NEMA electroindustry • June 2011

kevin messner, vice president of government relations,

association of Home appliance manufacturers

with the OpenSG (Smart Grid) OpenHAN architectures, and it

provides simplicity for the consumer and the flexibility needed

for future development needs. It also supports a more robust,

comprehensive system approach compatible with consumer

electronics devices.

The hub also provides a conversion point at which a switch in

protocols and physical layers can be executed without causing

the smart appliance to become obsolete because of the use

of a protocol not implemented in the meter or elsewhere.

Furthermore, the hub can provide additional intelligence and

adaptability to the entire system as technology advances, while

also minimizing the need for device upgrades. It can reside

within an advanced metering infrastructure (AMI), an energy

management system, or other devices; it does not need to be an

additional or stand-alone device.

The AHAM assessment also identified possible stress scenarios—

challenges that any protocol must be able to address. One is the

multi-story apartment building and the ability of a consumer

on the top floor to receive an AMI signal from a meter in the

basement. The signal must reach each apartment and may

require various technologies

and stakeholders to

support the signal

transmission. The AHAM

hub architecture helps to

facilitate this situation, as

the hub becomes the single

point at the residence that

must be reached rather

than having a signal

reach multiple devices.

Diagnostics within the

hub would help both the

utility and the consumer

identify communication

problems that might arise.

Once assurance of

the signal to the hub

has been achieved,

by visual indicator

or other means, the

consumer is responsible.


OpenHAN 2.0 recommends that HAN devices have

communications diagnostics built in to help the consumer

ensure communication is occurring. In best-case scenarios,

establishing communications will be achieved in a plug-and-play

manner. Consumers may, however, need to be involved in the

commissioning/registering and enrolling process.

prIvacy and securIty

Future concerns such as privacy and security are extremely

important in the consumer environment. Appliance applications

should use appropriate security measures to ensure that

consumers have control of their appliances. Measures include

encryption to ensure that consumer information is not visible to

unauthorized persons.

Authorization logic is used to grant privileges to consumers

using access controls. Authentication is used to verify that users

are who they represent themselves to be. Common prevalent

technologies were identified from each of the three major

types of HAN communications technology approaches: special

purposed wired technologies, no new wires technologies, and

wireless technologies.

Most technologies of high relevance were already under

consideration by the National Institute of Standards and

Technology or were considered for their existing market

employment or emerging market positioning. A few were

considered by request of the appliance manufacturers. To judge

different protocols, it was necessary to take an approach that

balanced customer expectations with system-level requirements.

System-level requirements are based on an adaptation of the

open system interconnection (OSI) model, which defines

a networking framework for

implementing protocols in layers

that include what the industry

recognizes as PHY/MAC/

NET and APP layers. Generally

speaking, control is passed from

one layer to the next; PHY is the

physical layer and MAC the

media access control layer of

the OSI model.

System-level requirements

(for both the PHY/MAC/

NET and APP layers) include

the following: proven

interoperable, accepted

technology in the marketplace,

acceptable cost trade-offs,

LOggINg ON TO SMART gRID

plug-and-play, minimizes enabling infrastructure, existence

of technology supply chain, handles interference and noise,

easy system operation, easy to maintain, easy to replace, robust

messaging capability, affordable to install, and sufficient enabling

security mechanisms.

For the APP layer, the assessment found that SEP 2.0 and

OpenADR scored the highest. Zigbee SEP (Smart Energy Profile)

is a leading protocol in terms of delivering device-to-device

communications for Smart Grid (www.zigbee.org/Standards/

ZigBeeSmartEnergy/Overview.aspx). Version 1.0 has been

adopted by a number of manufacturers and utility companies

as the standard of choice for the first generation of Smart Grid

applications. (The draft revision of SEP 2.0, dated May 7, 2010,

was used in the analysis.)

Across the PHY/MAC/NET layers, Wi-Fi, ZigBee, and HomePlug

Green PHY scored the highest. (For HomePlug Green PHY, it

was assumed that the final certification was approved.)

This article contains excerpts from AHAM’s Assessment of Communication

Standards for Smart Appliances: The Home Appliance Industry’s Technical

Evaluation of Communication Protocols (October 2010). The entire document

can be accessed at www.aham.org/smartgrid.

The highest scoring protocols derived from this assessment,

with the limits of the criteria applied, have advantages for

implementation of consumer appliances into the Smart Grid.

Appliance manufacturers and other stakeholders can use these

results to make decisions about producing appliances that will

likely best integrate with the Smart Grid.

AHAM is leaning forward and pushing for progress. The

appliance industry is developing a test procedure for smart

appliances and has, with efficiency advocates and environmental

and consumer groups, petitioned ENERGY STAR® to recognize

the benefits of smart appliances.

As they say in manufacturing, at some point it is time to stop

designing and start manufacturing. The appliance industry is

ready to start manufacturing, but policies and incentives need to

be implemented before smart appliances can benefit the grid and

the consumer. ei

Kevin Messner is responsible for directing and implementing

AHAM’s legislative, regulatory, political, and grassroots

programs. He has a BS in mechanical engineering and an MBA

in international finance.

NEMA electroindustry • June 2011 13


Over the last decade, utilities have moved toward testing meters and

metering installations at the customer’s site. This is driven by both

financial considerations and technical concerns of billing accuracy. With the

roll-out of smart meter installations across the country, onsite meter testing

will have an even higher profile.

tHe testIng scenarIo

From the financial prospective, the major cost of testing an

installed meter is the cost of rolling a test crew to the site,

removing the meter, bringing the meter back to the meter shop

for testing, and then reversing the process to reinstall the meter.

With today’s modern field testing equipment, it is possible to

completely test the meter in the field with the same accuracy as

in the meter shop. Money is saved and the meter only needs to be

removed from its socket if it is determined to be defective.

Perhaps more significant to the utilities is the benefit of site

testing rather than testing just the meter. Today’s meters are the

most accurate of all of the components that make up a metering

installation. The meter only measures what is presented at its

terminals. Issues with current transformers (CTs), potential

transformers (PTs), and wiring can significantly affect the

accuracy of the overall metering.

nema responds to tHe need

Because there is no ANSI standard for testing meters in the field,

many public service commissions still require in-shop testing.

During discussions at the October 2010 ANSI C12 Electricity

Metering meetings, NEMA 8EI-1 Electrical Metering members

and those of ANSI C12 Electricity Metering Committee decided

to initiate a project to develop a comprehensive standard for field

testing. They met in Louisville, Kentucky, in April 2011 to begin

14 NEMA electroindustry • June 2011

Standardizing

Field Testing of

Metering Installations

laying the framework for the field testing of metering sites.

Here are some topics that may be included in the standard.

1. Meter Testing

• customer load testing

• testing using customer voltage and current load box

• testing using load box supplied voltage and current

2. CT Testing

• ratio testing using customer load

• ratio testing using customer load with applied burden

• burden only testing

• admittance testing

3. PT Testing

• low voltage testing ≤ 600 V primary voltage

• high voltage testing > 600 V primary voltage

paul orr, nema program manager

4. Wiring Analysis

• documentation of wiring configurations for various CT,

PT, and meter form combinations

• documentation of expected vector diagrams for each

configuration

Bill Hardy, PhD, Technology for Energy Corporation,

Powermetrix Division, is chairing the subcommittee that is

developing the requirements.

For more information, contact Paul Orr at pau_orr@nema.org. ei


As we add intelligence, communications, and computing power to the

electrical grid, we are creating openings for cybersecurity problems.

According to a 2010 report on critical infrastructure

cybersecurity by McAfee, “... 80 percent [of survey respondents]

had faced a large-scale denial-of-service attack, and 85 percent

had experienced network infiltrations.” 1

Referring to the same report, Dark Reading, a news portal that

focuses on IT security, noted:

The survey … found that 40 percent of executives believed that

their industry’s vulnerability had increased, according to the

researchers. Nearly 30 percent believed their company was not

prepared for a cyberattack, and more than 40 percent expect a

major cyberattack within the next year. 2

This emerging threat will only grow as the sophistication of

computer intelligence applied to the national electrical grid

increases. While computers and communication between

infrastructure elements are essential to the creation and

maintenance of a Smart Grid, they also represent a rich target for

hackers who are merely curious to those with malicious intent.

Cybersecurity issues have long been the concern of Internet

and computer information technology providers, and there are

lessons we can learn from their efforts at stopping cyber attacks.

preparatIon

Preparation is one key aspect of cybersecurity. The Internet

Engineering Task Force (IETF) RFC 2196 publication Site

Security Handbook 3 mandates that the first aspect of securing

cyber assets is a comprehensive security policy. The handbook

outlines characteristics and components that can be adapted to

the Smart Grid environment.

Smart Grid functionality and reliability is closely tied to the

communication between devices and nodes in the grid, and

between humans and devices. Communications should therefore

be based on the concept of “mutual distrust”—no communication

occurs until both sides can adequately identify each other.

The National Institute of Standards and Technology (NIST) calls

this identification and authentication (I&A). 4 There are three

LOggINg ON TO SMART gRID

Cybersecurity

in the Smart Grid

steve molitor, nema program manager

means of authentication, which can be used alone or

in combination:

• something the individual knows (a secret, e.g., a password)

• something the individual possesses (a token, e.g., an

ATM card)

• something the individual is (a biometric, e.g., fingerprint)

One of the easiest cryptographic mechanisms to employ is

PKI (public key infrastructure), a means of identifying a

trusted source by binding a “public key” with an individual’s

identity through a certificate authority registration and

issuance process. It enables encrypting communication by

issuing messages encoded with the sender’s private key, which

can only be decrypted by the sender’s public key. PKI could

ensure that communication within the Smart Grid comes from

a trusted source, thus hindering cyber attacks.

Another Internet security concept is that of “defense in depth,”

the use of layers. This can be accomplished by combinations of

authentication methods as noted above, or by forcing procedures

that check authentication, and check again at another time in

the communication.

Re-authentication may be triggered by the expiration of a

preset timer, for example after 15 minutes. It can also be a

significant event, such as the end of a pre-established connection

(a “transmission complete” message), or the end of a preestablished

amount of data transfer.

The NEMA Smart Grid Council is reworking the manufacturers’

position statement on cybersecurity, originally published in

January 2010. We expect to distribute that document to federal

agencies and members of Congress this summer.

To view the position statement, go to www.nema.org/smartgrid. ei

1 www.mcafee.com/us/resources/reports/rp-critical-infrastructure-protection.pdf, p. 6.

2 www.darkreading.com/vulnerability-management/167901026/security/attacks-breaches/229401885/

cyberattacks-on-critical-infrastructure-are-increasing-study-says.html

3 www.ietf.org/rfc/rfc2196.txt

4 NIST Special Publication 800-12, An Introduction to Computer Security: The NIST Handbook, Part IV,

chapter 16.

NEMA electroindustry • June 2011 15


Interoperability, Interoperability,

Interoperability—

Three PersPecTives on a Key FeaTure oF smarT Grid

It’s all a matter of perspective…

Interoperability is the holy grail of the Smart Grid and

represents a goal that we are all expending a great amount of

effort to achieve.

When NEMA staff and its members think about interoperability,

we are focused on manufacturing the various devices of the grid

and how they interact with each other. This is a very traditional

view of interoperability, but it is only part of the story.

In a recent meeting of the National Institute of Standards and

Technology (NIST) Smart Grid Federal Advisory Committee,

Lynne Ellen, senior vice president and chief information officer

for DTE Energy, characterized interoperability as a feature “at

the edges” of the grid.

smart grId on tHe edges

A utility is said to own the geography where it provides electric

services. The edges are then the points where multiple utility

companies’ areas of control meet. Edges are also the points where

electric service is delivered to a home or commercial building.

Ms. Ellen described how those edges can be both internal and

external. They go beyond physical areas where a utility provides

its service. Our understanding of interoperability needs to

expand in order to accommodate the ways that legislators and

regulators apply the term.

16 NEMA electroindustry • June 2011

paul a. molitor, nema assistant vice president of strategic Initiatives and special projects

devIce to devIce

It’s tempting to understate the device-to-device understanding

of interoperability as the level we most commonly associate

with the term. While there is little need to discuss this common

application, it is the foundation on which other forms of

interoperability are built.

But first, a little background information.

What most people don’t realize is that electricity may pass

between several companies before it is delivered to the meter and

ultimately the outlet or light switch in the home. It starts with a

generation source by a company that runs the power plant (coal,

gas, nuclear, hydroelectric, etc.) where the electricity is created.

From there, it may be sold to a regional transmission operator

(RTO) that runs the big, high-voltage towers carrying the power

over long distances to the population centers, where it is sold to

the local utility company whose name appears on the consumer’s

monthly bill. 1 Along the way, a number of federal and state

government agencies concerned with the price, quality, and

safety of the power system will all have a say in the delivery of

electric service.

The Federal Energy Regulatory Commission (FERC) is

“an independent agency that regulates the interstate

transmission of electricity, natural gas, and oil”


(www.ferc.gov/about/ferc-does.asp). As a regulatory body,

FERC is a major player in the Smart Grid game. Expanding on

the use of the phrase “interstate transmission of electricity”

above, FERC deals with the bulk power market (the generation

companies running the power plants) and the issues associated

with moving electricity between utilities as it approaches the

point of use.

utIlIty to utIlIty

To make Lynne Ellen’s point, when FERC speaks of

interoperability, it is referring to the passing of electrons (with

the attendant management data) between utilities. FERC doesn’t

express much concern about what individual devices are doing,

although it realizes that the device-to-device level interactions

enable the concept of interoperability. Most importantly, FERC

wants to know what is needed to reliably move high quality

power from the power plant through the interstate transmission

system in a safe and reliable manner.

At the distribution level, electric power is delivered to individual

homes and businesses. There is a similar challenge at that edge

to define interoperability. Where bulk and transmission markets

fall under FERC’s jurisdiction, distribution companies, including

local utilities, electric cooperatives, etc., fall under a state’s

authority and are regulated by a public utilities commission or

public service commission (PUC or PSC).

LOggINg ON TO SMART gRID

utIlIty to consumer

While the PSC has some utility-to-utility concerns, its primary

definition of interoperability involves the utility-to-consumer

connection. This, too, is about electrons and the attendant

management data, but interoperability concerns generate a

different set of questions. Is power passed seamlessly from the

utility to the customer? Is enough information provided on the

bill so the consumer understands what’s going on? And in the

case where consumers are providing power back to the grid

because of a wind turbine or rooftop solar panel, are they being

credited properly for that “sale?” Is the power coming from the

home properly conditioned so as to not throw the local electrical

system out of balance?

It may not be important that we have a common definition of

interoperability, but it is important that we are aware of the other

views associated with the term. It’s understood that the Smart

Grid is expected to make a greater number of devices based on

differing standards work together. With that in mind, we need to

be aware of the regulator’s differing views of interoperability. ei

Paul Molitor is also plenary secretary of the NIST Smart

Grid Interoperability Panel. He can be reached at

paul.molitor@nema.org.

1 A “fully integrated” utility is one that performs all of the functions from generation, through transmission,

to distribution and delivery.

DOE Creates Repository for Information

about Smart Grid Projects

In September 2010, without fanfare, the U.S. Department

of Energy (DOE) launched the Smart Grid Information

Clearinghouse (SGIC) (www.sgiclearinghouse.org) as an

online resource to share information about Smart Grid

projects around the globe.

Since the beginning of the program in 2009, NEMA staff

members have provided their expertise on both the project

advisory committee and the user group responsible for the

interface and design of the site.

According to the DOE website, the project is managed by

the Virginia Tech Advanced Research Institute in Virginia,

with assistance from the IEEE Power & Energy Society and

EnerNex Corporation. Its objective is to design, populate,

manage, and maintain a public SGIC portal that includes

demonstration projects, use cases, standards, legislation,

policy and regulation, lessons learned and best practices, and

advanced topics dealing with research and development.

Links on the homepage include a portal for consumers;

training via Smart Grid 101; a project map for U.S. Smart

Grid deployments, plus listings of those taking place in

Africa, the Americas, Asia, Europe, and Oceania; and a

technologies page that provides a more detailed look at some

of the component-level features of Smart Grid.

A recent addition to the page are the NEMA-produced Vids

for Grids series of videos, which highlight technical aspects of

the grid as produced by NEMA member companies.

Paul Molitor, NEMA Assistant Vice President of Strategic

Initiatives and Special Projects | paul.molitor@nema.org

NEMA electroindustry • June 2011 17


The National Institute of Standards and Technology (NIST) and International

Electrotechnical Commission (IEC) both recognize that there is an urgent

need to establish protocols and standards for the Smart Grid.

Without standards, there is the potential for technologies

developed or implemented with sizable public and private

investments to become prematurely obsolete. They could also be

implemented without the measures necessary to ensure security.

To guide these efforts, NIST and IEC have each issued a Smart

Grid standardization roadmap. These roadmaps provide an

inventory of existing standards that are applicable to the ongoing

development of Smart Grid, and identify high priority gaps and

harmonization issues for which new or revised standards and

requirements are needed.

The NIST and IEC Smart Grid roadmaps both identify core areas

as priorities for standardization and can be directly mapped to

each other in five common application areas:

• advanced metering infrastructure (AMI)

• demand response

• distribution management systems / distribution

grid management

• electromobility / electric transportation

• electric storage

The NIST Smart Grid standards process has identified

approximately 75 key standards needed for efficient rollout of the

U.S. Smart Grid. Approximately 17 of these are IEC standards.

Close cooperation is needed between NIST, U.S. industry, and

IEC to resolve gaps in international standards.

18 NEMA electroindustry • June 2011

NIST and IEC View Roadmaps

to Smart Grid

scott choinski, nema program manager

IEC recognizes this need for close cooperation with NIST. One of

the recommendations in its roadmap is its Recommendation G-5:

The IEC should acknowledge the work already done by NIST

and the participants of the NIST roadmap effort. The IEC

should actively offer support in the identified prioritized action

fields where the IEC is involved and offer consultation in some

areas, whereas NIST focuses on local or regional standards (e.g.

AMI, DER)…

The IEC should seek a close cooperation with the NIST

roadmap activities.

NIST developed 16 Priority Action Plans (PAPs), and the

outputs from some of these PAPs include recommendations

to update key IEC standards. Tight coordination is needed with

the IEC to ensure that changes to IEC standards are made in a

timely manner. There are multiple paths for adding/harmonizing

U.S. requirements with IEC Smart Grid standards, but an

optimal process has not been identified. Further discussions

would be helpful.

Another area for cooperation could be to offer standards from

the Smart Grid Interoperability Panel (SGIP) Catalog to fill gaps

that the IEC has identified in its roadmap. The IEC has identified

gaps for AMI in clause 4.3.7.5 of its roadmap.

NIST has identified a number of standards for AMI, and

some of these standards may fill the IEC gaps. One example

may be NEMA SG-AMI 1-2009 Requirements for Smart

Meter Upgradeability. This standard could be submitted for

consideration as an IEC standard. ei


Electroindustry News

Ű Vids for Grids—

Behind the Scenes

Leviton—Lighting

Management Systems

Eaton—Surge Protection Devices

Beacon Power—Flywheels

Vids for Grids: New Media for the New Energy

Workforce (V4G) wrapped up its onsite shoots in May,

thanks to the support of participating companies and

the technical expertise of Metro Productions.

In collaboration with member manufacturers, the

series features Smart Grid equipment, explains

electrical engineering concepts, and portrays careers in

power engineering. The curriculum was developed in

conjunction with George Mason University. V4G is a

workforce training program funded by the Department

of Energy. ei

Visit www.youtube.com/Vids4Grids

Southwire—Conductors

Rockwell Automation—

Industrial Automation

Nexans—Dynamic Line Ratings

Thomas & Betts—Connectors

A123—Energy Storage

Itron—Advanced Metering

Infrastructure

Hubbell Power Systems—

Insulators and Distribution Arresters

Cooper—Capacitors

NEMA electroindustry • June 2011 19


Electroindustry News

Ű Marketing Inefficiencies Waste Money

Robert Gaylord, President and CEO, IDEA

Manufacturers, are you content to waste

money and irritate customers?

Of course not, that doesn’t make sense.

Yet, as I listen to your distributor

customers, that’s what I’m hearing.

Distributors say they are not getting

the marketing data they need to sell

your products and compete effectively.

Manufacturers tell me they are providing

all the marketing data asked for.

This communications disconnect

about product data is resulting in

waste for both distributors and

manufacturers. Your distributor

customers are acquiring and merging

your product marketing data from

multiple sources to keep pace with

market pressures and end-user demands.

Distributors use this “meshed data” to

describe your products. Concurrently,

manufacturers—many with richly

populated websites—provide data to

20 NEMA electroindustry • June 2011

multiple distributors and other demand

users in a series of one-off requests.

This is not the efficiency intended when

the leadership of the most influential

companies in NEMA and NAED

(National Association of Electrical

Distributors) created IDEA.

IDEA was created to drive costs out

of the electrical distribution channel.

The initial solution was simple: a single

data platform for manufacturers to

publish their transactional, pricing, and

marketing data for all their distributor

Ű Illuminations Weekend to Feature Syndicated Columnist George Will

Widely read

political columnist

George F. Will

is headlining

NEMA’s 85th

annual conference,

Illuminations

Weekend: Where

Leaders and Ideas

Meet, with a keynote speech on Saturday,

October 29, 2011, at the Mayflower

Renaissance Hotel in Washington, D.C.

“The Political Argument Today”

will be followed by a question and

answer session.

Mr. Will’s newspaper column has been

syndicated by The Washington Post

since 1974. It also appears twice weekly

in approximately 400 newspapers in

the U.S. and Europe. Since 1976, he has

been a regular contributing editor of

Newsweek. In 1977, he won a Pulitzer

Prize for his commentaries.

Eight collections of Mr. Will’s Newsweek

and Washington Post columns have been

published, the most recent of which is

One Man’s America. Other books include

Men at Work: The Craft of Baseball and

Bunts: Curt Flood, Camden Yards, Pete

Rose and Other Reflections on Baseball.

In 1981, he became a founding panel

member on ABC television’s This Week.

customers. Manufacturers would control

how their products would be positioned

in the marketplace. Distributors

would pull all their vendors’ product

information from a single source.

A simple concept, and yet more than

13 years later, we still struggle with a

data gap. The stakes have never been

higher, nor the friction in trading

partner relationships greater. As web

commerce continues to gain traction in

the electrical channel, distributors feel

at a disadvantage with such competitors

as Amazon.com, Toolup.com, and

Drillspot.com creeping into the channel.

How will you respond? IDEA is your

company and partner. Visit us at www.

idea-esolutions.com. We know the data.

Contact me personally (703-562-4634,

rgaylord@idea-esolutions.com) to review

how your data stacks up with that of

your competitors. ei

Illuminations Weekend is expected

to draw more than 200 top executives

from America’s leading electrical

manufacturers.

To register for Illuminations Weekend,

visit www.nema.org/illuminations. ei

Francine Meyer, Meeting Manager |

fran_meyer@nema.org

Ű NEMA to Host Electrical Distributors Day

An elite group of leaders of the electrical distribution industry received special, by name,

non-transferable invitations to join the NEMA Board of Governors at its July meeting to

discuss shared industry interests.


Ű Home Safety Basics: The Basement and Utility Room

Planning to tackle some home

improvement or maintenance projects

this season? Why not start in one of

the most frequently ignored areas of

the home?

While very few people look forward to

spending their precious free time in the

basement or utility room, investing a

few minutes to take stock of what’s going

on in there can pay big dividends. It is,

after all, where some of your home’s most

important—and expensive—equipment

is located.

The Electrical Safety Foundation

International (ESFI) encourages you

to learn more about your home’s vital

systems in order to keep them properly

maintained—and safe. You don’t need

to be an expert. Even a basic level of

knowledge and an awareness of potential

safety hazards will help make your home

safer, and could even save you money on

your utility bills.

On the ESFI Virtual Home site, you

will find some simple tips to help you

get started; however, you should never

attempt to tackle any project that is

beyond your skill or comfort level. In

fact, ESFI strongly recommends that all

electrical work in and around the home

be performed by licensed, qualified

electricians.

fIre and carbon

monoxIde alarms

Install smoke alarms and carbon

monoxide (CO) alarms on every level

of your home, including the basement.

Interconnected alarms offer the best

protection because they all sound if one

sounds. Test all smoke and CO alarms

monthly to ensure they are working

properly, and remember to change your

smoke and CO alarm batteries at least

once a year.

electrIcal system

Check the label inside your electrical

service panel to see when your electrical

system was last inspected. ESFI

recommends having a comprehensive

home electrical system inspection if:

• your home is 40 years old or older

• you purchase a previously owned home

• your home has undergone a major

renovation or addition

• you have added major new appliances

in the last 10 years

Be sure circuit breakers or fuses are

correctly labeled with their amperage

and the name of the room, circuit, or

outlets they service. Consider having

a qualified, licensed electrician replace

your standard circuit breakers with arcfault

circuit interrupter (AFCI) breakers

to increase your electrical fire protection.

Test AFCIs monthly to ensure they are

working properly.

major equIpment/applIances

Have your furnace and/or air

conditioning system professionally

cleaned and inspected annually.

Remember to check and replace

your furnace filters according to the

manufacturer’s instructions.

Clean the dryer lint filter after each load.

Keep the area around the dryer free of

clutter. Check periodically for excessive

vibration or movement when the washer

or dryer is operating. This can put stress

on the electrical connections. Have gaspowered

dryers inspected annually, too.

Visit ESFI’s Virtual Home at http://

virtualhome.esfi.org to learn more about

home electrical safety. ei

Kate Janczyk, Program Manager, ESFI |

kate.janczyk@esfi.org

NEMA electroindustry • June 2011 21


Electroindustry News

Ű National Cancer Survivors Day

Medical Imaging and Radiotherapy Offer Hope in Identifying and Treating Disease

National Cancer Survivors Day, June

5, honors the lives of cancer survivors

and the battles they have overcome. For

the nearly 12 million cancer survivors

living in the U.S. (20 million survivors

estimated by 2020), the combined field

of medical imaging and radiotherapy

is more than a critical element in

identifying, monitoring, and treating

their diseases. It offers hope.

Vanessa Ghigliotty is a cancer survivor

who is well acquainted with hope. At

age 27, she received her initial diagnosis

of Stage IV colon cancer. She had no

family history of the disease, and after

experiencing initial symptoms had a

nearly impossible time convincing her

doctors and health insurance company

that something was wrong.

Medical imaging was critical in guiding

her treatment for the cancer, which had

metastasized. She underwent several

chemotherapy treatments and seven

surgeries, including open heart surgery

to remove a large clot caused by the

portacath used to deliver chemotherapy.

“Everyone should have access to medical

imaging at the onset of symptoms so that

diseases are caught early, when they are

more treatable,” Ms. Ghigliotty said.

While she experienced several

complications during her battle with

cancer, medical imaging always provided

the certainty that ended the guesswork

and got her treatment back on track.

Thanks to innovative technologies and

the help of her family, she can say today

that she is a survivor.

“Having so many complications during

and after treatment has made me realize

that cancer is not just about a fight to

stay alive, it’s about learning how to live

during and after your fight,” she said.

22 NEMA electroindustry • June 2011

Following her open heart surgery,

Ms. Ghigliotty realized that she had

a deep need to give back to fellow

cancer survivors.

“I try to take all the lessons I have

learned and make myself available

for other cancer patients and their

caregivers,” she said. “The main way I do

this is through Colon Cancer Alliance

(CCA). This wonderful national patient

advocacy organization has let me

volunteer and become involved with so

many people.”

MITA is proud to have partnered

regularly with CCA on patient

access issues related to virtual

colonoscopy, as well as overarching

issues such as screening guidelines

and disease awareness.

As the voice of survivors, CCA works

as an advocate for colorectal cancer

patients and their families. CCA

offers information and support from

the first-hand experience of survivors

and others whose lives have been

touched by the disease.

Ms. Ghigliotty is an active volunteer

with CCA, serving as a “buddy” and

chair for CCA Voices of New York City.

She provides support, encouragement,

and mentorship to patients in their fight

against colorectal cancer. She is also a

member of the Citywide Colon Cancer

Control Coalition, an initiative of the

New York City Department of Health

and Mental Hygiene. She speaks at

events as a cancer survivor and is an

active advocate working to ensure that

other cancer patients have access to

treatment and diagnostic tools like

medical imaging.

Whether it is through fundraising

or prevention and awareness events,

supporting local and national causes, or

advocating on behalf of cancer patients,

Ms. Ghigliotty is giving back every day.

National Cancer Survivors Day is a

great time to recognize advocates, like

her, who have benefited from lifesaving

medical imaging, and who are paying it

forward by sharing their stories of hope

with others. ei

Dave Fisher, Executive Director of

MITA and Vice President of NEMA |

dfisher@medicalimaging.org


Code Actions/Standardization Trends

Ű How and Where Does LVDC Fit into the Sustainability Puzzle?

Jack Wells, Pass & Seymour/Legrand Vice President of Corporate Development

What do photovoltaic systems, LEDs,

computer power supplies, and digital

data centers have in common? All use

or generate low voltage direct current

(dc). Applications and sources of this

alternative technology are expanding.

This is a change from the alternating

current (ac) that has been powering the

digital age.

But what’s driving this new energy? Does

its use fit with the goals of sustainable

energy? Where will this resurrected

method be in five years? Ten? Right now,

dc powers everything from small digital

personal devices to electric vehicles and

buildings that house rows of computer

servers. Why is the power that Edison

“built” coming back after decades of

dominance by Westinghouse’s ac?

NEMA, Underwriters Laboratories (UL),

and National Fire Protection Association

(NFPA) sponsored a daylong workshop

in April just outside of Washington, D.C.,

to examine sources, distribution, and

applications of low voltage direct current

(LVDC). More than 140 attendees

heard from industry, government, and

utility representatives, whose views

and prognostications covered the latest

developments in achieving higher

efficiency and improved reliability for

dc systems. Speakers from the nation’s

stakeholders focused on where this

growing industry is getting its “power,”

what is driving the resurgent interest,

and where it may be headed.

In opening remarks, Jack Wells, Pass

& Seymour/Legrand Vice President of

Corporate Development, said that it

appears that the great Westinghouse/

Edison battle over ac versus dc is

coming full circle. Edison’s preference

for dc lost and ac became our primary

distribution and utilization current,

largely because of dc’s inability to be

efficiently distributed over long distances.

Today, as we search for new methods

to achieve sustainability and convert to

renewable energy sources, technologies

are developing to generate and store

electricity locally. These include solar

photovoltaic systems, fuel cells, storage

technology, and electric vehicles. Mr.

Wells paraphrased Donald Rumsfeld.

“There are things we don’t know we don’t

know,” Mr. Wells said. “Our challenge

today is to try to identify some of the

unknown unknowns.”

To that end, Dennis Symanski, Senior

Project Manager at Electric Power

Research Institute, explained how LVDC

fits into Smart Grid and the overall

electrical system, and highlighted key

applications. These include data center

power, supply power for major residential

appliances, rapid charging for electric

vehicles, efficient lighting, and powering

consumer electronics without the

ubiquitous “black brick.” Challenges

for this LVDC Smart Grid initiative

will include standardizing a set of dc

voltages, establishing a set of appropriate

standards to facilitate interoperability,

changing the way building power is

installed, and expanding the vendor

sources for the devices that will be the

building blocks for LVDC systems.

energy storage

Maintaining a level supply of power from

renewable distributed energy sources

when there is no sun or wind will have to

come from storage systems that charge

up when excess power is generated and

slowly release it when utility-supplied

power is too expensive or insufficient.

Kevin Lynn, Acting Lead for Systems

Integration of Solar Energy Technologies

at the Department of Energy, spoke

about the integration of photovoltaic

systems into this new energy system.

Walter Culver, PhD, Board Chairman of

the Great Lakes Energy Institute at Case

Western Reserve University, examined a

cost benefit analysis of the energy storage

component that will be critical to the

success of LVDC.

Emeka Okafor spotlighted his

company—American Electric Power—

as an example of researching new

storage technologies and testing

them in practical applications, while

Christopher Kuhl spoke about the

related topic of intelligent distributed

energy storage, using ZBB Energy

Corporation’s activities to clarify

the concept.

NEMA electroindustry • June 2011 23


Code Actions/Standardization Trends

David Geary, Vice President of

Engineering for Direct Power

Technologies, drew on his experience

with developing alternative energy

solutions to describe the use and

rationale for 380 V dc applied to data

centers and other high technology

facilities. Reducing the current

requirement for powering electronics by

increasing voltage achieves an improved

efficiency by lowering heat generation

and the cooling load for buildings.

enablIng dc grId applIcatIons

Brian Patterson, Chairman of the

EMerge Alliance, concentrated on the

application of a grid system to provide

efficient power to space lighting and

other applications. By enabling the

direct connection of low voltage dc

lights to a novel ceiling-based electrical

infrastructure, efficiencies are realized

through the elimination of multiple

power conversion devices, each of which

experiences energy loss in the process

of that conversion. Mr. Patterson also

highlighted the concepts of net-zero

energy buildings, hybrid dc microgrids

in buildings, and the premise for the

Enernet, what he calls “the Internet of

powered things.”

Alan Manche, Director of Industry

Standards for Schneider Electric,

addressed many of the issues involved

in enabling LVDC to be transported

from generation sources to the

growing number of applications. These

applications will include electric

shock protection devices, overvoltage

protection, and protection against

excessive currents that can cause

overheating when faults occur.

Dr. Fred C. Lee, Director at the Center

for Power Electronics Systems (CPES) at

Virginia Tech, introduced the concept

of nanogrids, where individual houses

can become a system with generation,

distribution, and utilization of LVDC.

24 NEMA electroindustry • June 2011

Through this concept, being tested at

the CPES, a house, groups of houses,

individual buildings, or other units can

become essentially independent electrical

systems, removing some of the power

burden from the national electrical grid.

A research scientist with Intel Labs,

Guy AlLee, presented information on

the move from central computing and

central power generation to personal

computing and nearly personal power

generation. Part of the focus on this

movement is to increase the availability

of energy from renewable sources and for

underserved markets. It could also enable

a significant influx of high technology

in areas in which the routing of utility

power has not taken place.

Michael Stelts, Panasonic Director of the

U.S. Standardization and Collaboration

Center, addressed the migration from

ac to dc power for home entertainment

products and how LVDC systems will

improve economy of use and integrate

them into electrical systems in the homes

of the future.

Tim Mellon, Director of Government

Affairs for SAE International, brought

the workshop attendees up to date on

the developments in the electric vehicle

(EV) field. He noted the achievement of

a standardized plug and considered how

the EV as a source and load will fit into

the electrical system.

standardIZatIon

Wim de Kesel, Group Vice President

for Standardization at Legrand, briefed

attendees about the International

Electrotechnical Commission (IEC)

and its activities in the area of LVDC.

He noted the high level of interest,

including the assignment of a strategic

group reporting to the Standardization

Management Board of the IEC to

coordinate work in addressing the

standardization needs for LVDC

systems and products.

Ken Gettman, Director of International

Standards at NEMA, presented the U.S.

efforts to lead and participate in the

LVDC work occurring in the IEC. NFPA

Chief Electrical Engineer Mark Earley

spoke about the National Electrical Code®

(NEC), which provides requirements for

electrical installations throughout the

U.S. and other countries. He highlighted

how aspects of LVDC are already

included in the body of the NEC and how

efforts are being initiated to address any

deficiencies in this area.

Ken Boyce, Principal Engineer

Manager—Energy at UL, emphasized

the need to develop standards addressing

generation, storage, distribution, and

use for LVDC to “address key issues

such as safety, interconnection, and

interoperability.”

International Association of Electrical

Inspectors CEO and Executive Director

David Clements discussed how to engage

the local authorities responsible for

ensuring building safety. He encouraged

collaboration among manufacturers,

building owners, and inspectors to

facilitate safe installations by using

inspectors’ knowledge and code

understanding.

Don Talka, UL Senior Vice President and

Chief Engineer, led a panel discussion as

a wrap-up and to address questions from

the attendees.

The workshop was filled with positive

attitudes and the promise of continued

advancements in the use of LVDC.

NEMA will be hosting a web-based

discussion forum to enable continued

exchange of information and ideas.

Contact Ken Gettman for more

information. ei

Ken Gettman, Director of

International Standards |

ken_gettman@nema.org


Ű OSHA Ruling Impacts Nationally Recognized Testing Laboratory Program

In February, the Occupational Safety

and Health Administration (OSHA)

Office of Technical Programs and

Coordination Activities (OTPCA), which

maintains the Nationally Recognized

Testing Laboratory (NRTL) program,

issued an NRTL update to participating

certification bodies. There were three

items of significance, each having a

negative impact on the electroindustry.

fee Increases

The first concerns a sweeping increase

in fees assessed to NRTLs for using the

services of OTPCA. It used to cost $5,100

for OSHA to conduct a desktop review

of an initial application from a testing

laboratory seeking recognition as an

NRTL. The fee is now $17,750, a

250 percent increase.

In general, the fee increases are

staggering, with no additional service

or value provided to NRTLs or to their

customers. High fees discourage new

testing laboratories from participating

in the NRTL program, thereby limiting

competition for conformity assessment

dollars. It should be noted that only one

NRTL commented on the rulemaking

proposing the fee increases. The

electroindustry should not be surprised

when NRTLs pass along the entire

increase, as there is little to no incentive

for them to hold down conformity

assessment cost.

cb-fcs In perIl

The IEC System for Conformity Testing

and Certification of Electrical and

Electronic Components, Equipment,

and Products is known as the IECEE CB

Scheme. The OSHA ruling involves the

IEC CB Full Certification Scheme (CB-

FCS), and whether OTPCA will allow

NRTLs to use the scheme for the purpose

of testing and certification under the

NRTL program.

The value of CB-FCS is in the mutual

recognition of manufacturers’ quality

systems, surveillance, and follow-up

service by the members of the IECEE CB

Scheme. OTPCA responded to a request

regarding the use of CB-FCS by saying

that it would not accept it. NRTLs are

therefore precluded from using any part

of CB-FCS to satisfy NRTL testing and

certification requirements.

The rational provided by OTPCA for

rejecting CB-FCS is that each inspector

or inspection agent must be under

NRTL’s direct control. Such a position

would preclude the sharing of results

between similar certification bodies

regarding electrical products intended

for the U.S. market.

[In the] NRTL update ... were

three items of significance, each

having a negative impact.

OTPCA’s insular approach fails, however,

to consider changes in the marketplace.

Manufacturing has become global in

nature, encouraged by a number of

free trade agreements, of which the

U.S. is a signatory. The evidence of the

international nature of the marketplace

could not be any clearer than the

disruption to nationally produced

automobiles as a result of supply chain

shortages caused by recent disasters

in Japan.

NRTLs have responded to those

marketplace changes and now operate

very much as multinational corporations

with a presence in the major markets.

How testing laboratories operate,

nationally and internationally, has also

been converging. Recent collaboration in

accreditation between the International

Laboratory Accreditation Cooperation

(ILAC), the International Accreditation

Forum (IAF), and the International

Electrotechnical Commission (IEC)

will further encourage and solidify the

convergence of national conformity

assessment systems.

medIcal equIpment standard

The third issue involves the third edition

of ANSI/AAMI ES60601-1 Medical

electrical equipment—Part 1: General

requirements for basic safety and essential

performance. This standard covers

electrically powered medical devices and

is commonly referred to as the bible of

medical electrical equipment.

OTPCA stated that it has reviewed the

standard but is unwilling to approve

its use under the NRTL program. Its

main concern is the standard’s risk

management file concept. OTPCA plans

to develop and propose criteria that

NRTLs must meet in order to rely upon

or make use of this risk management file.

While no timetable was given, it is

likely to take ten or more years for

OTPCA to recognize the standard. In

the meantime, the industry will need

to continue using it in order to compete

in the global marketplace. Once again,

industry is being prevented from using a

global standard for national use because

OTPCA decided not participate in the

standard’s development at IEC or in

the process to adopt the standard as an

American National Standard.

NEMA’s Codes and Standards

Committee recently created a task

force lead by Steve Blais of EGS

Electrical Group to discuss this and

other issues pertaining to the NRTL

program. The task force is expected

to prepare and present a plan to the

Codes and Standards Committee on

how to move forward in strengthening

and maintaining the relevance of the

NRTL program. ei

Joel Solis, NEMA Conformity

Assessment Manager |

joel_solis@nema.org

NEMA electroindustry • June 2011 25


Code Actions/Standardization Trends

Ű Technical Representatives Build Clout in Codes and Standards

We all know the importance of codes

and standards to the electrical industry.

Standards define the minimum level

of performance of a product that the

market can expect, and they specify the

interfaces of a product or minimum

safety requirements to promote

interoperability within a system.

Installation codes specify the minimum

installation requirements to ensure

safe operation. While NEMA does

develop some installation guides as

well as standards, many of the codes

and standards that affect NEMA

members’ products in the domestic

market are under the purview of other

organizations, such as National Fire

Protection Association, International

Code Council, and Underwriters

Laboratories.

How does NEMA influence the

development and maintenance of

these documents if they are not within

its direct control? Through NEMA’s

representatives to technical committees

of outside organizations.

NEMA has more than 140 technical

representatives on technical committees

26 NEMA electroindustry • June 2011

of domestic, outside organizations.

Operating with the support of their

companies, these individuals volunteer

their time to ensure that NEMA’s

concerns are voiced during deliberations

on codes and standards. NEMA’s

positions are developed with input from

the sections and are authorized by the

Codes and Standards Committee.

Through this process, the influence

of a single individual is leveraged and

exerts a much greater force on codes

and standards development than if that

individual represented a single NEMA

member company.

How is this whole process coordinated?

It begins with the identification of

vacancies and the solicitation of

nominees from members by NEMA

staff. Nominations are endorsed by at

least one NEMA section and the Codes

and Standards Committee, and are

then submitted to the respective outside

organization for approval.

The responsibilities of representatives

are specified in NEMA’s Standardization

Policies and Procedures. Recently,

the Codes and Standards Committee

approved a guidance document that

Ű Maine Considers Replacing 2008 NEC® with 2011 Edition

The Maine Office of Licensing and

Registration, Electricians’ Examining

Board recently announced that it will

hold a public hearing on proposed

changes to its Department of Professional

and Financial Regulation, Chapter 120,

Electric Installation Standards.

The proposed amendments to Chapter

120 will replace the reference to the 2008

National Electrical Code® (NEC®) with a

reference to the 2011 NEC.

Chapter 120 currently includes 18

amendments to the 2008 NEC. The board

is proposing the deletion of 12 of these

amendments. Among the amendments

the board is proposing to retain are

modifications to 210.5 and 215.12,

regarding the identification of branch

circuits and feeders, where the premises’

wiring system is supplied from more

than one nominal voltage system.

NEC permits the method utilized for

the identification of the conductors to

be documented in a manner that

is readily available or permanently

posted at each branch circuit or feeder

panelboard. The amendments delete the

summarized the representatives’

responsibilities before, during, and after

a meeting of the technical committees on

which he/she represents NEMA. Voting

requirements and a sample report are

also provided.

A database has been developed to

identify meeting dates, ballots issued,

and the representatives’ attendance and

submittal of votes. Oversight of the whole

process is provided by the Codes and

Standards Committee’s Subcommittee

on NEMA Representatives under the

leadership of George Straniero, Atkore

AFC Cable Systems.

NEMA learned many years ago that it

could leverage an individual member’s

influence in the development of codes

and standards through the use of

association representatives. Though

not often told, the story has not been

lost on the current generation of

NEMA members. Involving technical

representatives in the development of

codes and standards will continue into

the future. ei

Vince Baclawski, Senior Technical

Director, Codes and Standards |

vin_baclawski@nema.org

readily available documentation option

and require the identification to be

permanently posted.

The board is also proposing to retain the

amendment to 334.10. This amendment

allows Type NM cable to be used in

structures permitted to be of Types

III, IV, and V construction without

concealment within walls, floors, or

ceilings that provide a thermal barrier

of material that has at least a 15-minute

finish rating as identified in listings of

fire-rated assemblies.


Another amendment regarding Type

NM cable that the board is proposing to

retain is the deletion of 334.12(A)(2). This

amendment will permit Type NM cable

to be exposed in dropped or suspended

ceilings in other than one- and twofamily

and multifamily dwellings.

Amendments to 338.12(B)(1) and (2) are

also proposed to be retained. Section

338.12(B)(1) of the NEC prohibits the use

of Type USE cable for interior wiring.

The amendment allows the cable to be

used for other than branch circuits and

feeders originating and terminating

within the same building. Section

338.12(B)(2) of NEC prohibits the cable

in aboveground installations except

where Type USE cable emerges from the

ground and is terminated in an enclosure

at an outdoor location and the cable is

protected in accordance with 300.5(D).

The amendment will permit the cable to

terminate in an enclosure at a location

(either inside or outside) acceptable to the

Authority Having Jurisdiction.

The existing amendment to 702.4(B)(2) is

also proposed to be retained and requires

automatic transfer equipment used in

other than single-family dwellings to

comply with 702.4(B)(2)(a) or (2)(b). NEC

requires all automatic transfer equipment

used in optional standby systems to

comply with 702.4(B) (2)(a) or (2)(b). ei

Gil Moniz, Field Representative |

gil_moniz@nema.org

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NEMA electroindustry • June 2011 27


Code Actions/Standardization Trends

Ű Magnet Wire Section Welcomes Technical Associate Membership

At its March 2011 meeting, the NEMA

Magnet Wire Section (6MW) decided

to offer magnet wire industry

stakeholders the opportunity for

associate membership on its Technical

Committee. While associate members

would not have voting rights in 6MW,

they would enjoy voting rights on

technical committee actions such as

draft standards, authorization of letter

ballots, and the approval of position

letters to outside bodies.

The section believes that in light of

dwindling manufacturer technical

resources, the industry would be

better served if stakeholders (e.g., coil

winding machinery manufacturers,

test equipment specialists, and varnish

suppliers) were given the opportunity

to attend meetings and provide input

on the development and maintenance

of the ANSI/NEMA MW 1000 Magnet

Wire standard.

There have been several cases in the past

where important revisions to MW 1000

originated from requests or suggestions

from outside stakeholder groups. In

the mid-1990s, Defense Supply Center

Columbus requested that NEMA

add a part-numbering table to MW

1000 in order to facilitate government

procurement of magnet wire. Once MW

1000 was amended to include this table,

much of the major magnet wire customer

base adopted the table as a standard

ordering system in only a few years.

In the mid-2000s, test equipment

suppliers attended technical

committee meetings to work closely with

NEMA members to establish standard

calibration procedures and voltages

for dielectric breakdown testers, and

28 NEMA electroindustry • June 2011

standard fault currents for continuity

test equipment.

And very recently, the committee took

into consideration suggestions from

equipment suppliers to better define the

MW 1000 Solderability Test procedure.

This included specifying the length of

wire specimen to be immersed in the

solder bath, and an improved description

of the method by which the wire

specimen is removed from the bath so

as to not adversely affect the test results.

Amendments to MW 1000 in response

to this suggestion will be included in the

next revision of the standard.

“The magnet wire industry highly

values the input of stakeholder groups

in developing technically sound and

relevant product requirements and

test procedures,” said Don Barta of

Rea Magnet Wire Company and 6MW

Technical Committee Chairman. “We

welcome their involvement and look

forward to their attendance at committee

meetings in the future.”

Those interested in associate

membership on the 6MW Technical

Committee should contact John Miller,

NEMA Industry Manager (703-841-

3202 or john.miller@nema.org). To order

copies of ANSI/NEMA MW 1000-2008

Rev 2-2010, visit www.mw1000.us. ei

Mike Leibowitz, Program Manager |

mike.leibowitz@nema.org


International Roundup

Ű NEMA Discusses Smart Grid with Mexican Federal Commission of Electricity

Following a meeting with the vice

president of planning of the Federal

Commission of Electricity (CFE)

in Mexico City 1 , NEMA met again

with officials of CFE to discuss the

national utility’s plans for investment

in Smart Grid.

The meeting was scheduled as part

of NEMA’s Market Development

Cooperator Program Development of

a Secure, Robust, and Reliable North

American Smart Electrical Grid,

designed to bring together development

teams from the North American Free

Trade Agreement (NAFTA) trading

partners to ensure that Smart Grid

development proceeds in a structured

and compatible manner, primarily as it

pertains to interoperability.

CFE’s Southeast Division is responsible

for operations in the eastern part of

Mexico, including all states east of

Oaxaca, and has recently been designated

as the division to pilot all new Smart

Grid projects.

The division hosted a congress in

Mérida consisting of all the utility’s

divisions and most of the key equipment

manufacturers, many of whom are

NEMA members. While each company

has a solution to a specific need, CFE is

seeking interoperability of all suppliers’

products to safeguard reliable operation

and choice in procurements.

Officials from CFE’s Peninsula Division

told NEMA that the utility has adopted

a new distribution model similar to

concentric rings to optimize system

efficiency. Plans include interconnections

with Guatemala, Belize, and the other

Central American countries as far

as Panama. Officials were interested

in learning more about Smart Grid

standards that cover all major products,

and were particularly interested in a

seminar about smart meters that could

address the current state of the art from

all the major suppliers.

NEMA is still waiting for the 2011

version of POISE (Program of Work

and Investment of the Electrical

Sector) that will detail the capital and

maintenance spending projects for

the upcoming year. The 2011 version,

which is being reviewed by SENER

(Mexico’s Department of Energy), will

be released to the public shortly. NEMA

is slated to obtain a copy to share with

member companies.

Mexico’s recent National Strategic

Energy Plan envisions that by 2025,

30 percent of electricity generation will

be from clean energy, which it defines

as renewables, hydropower, and nuclear.

Achieving this goal (presently, the clean

energy portion is about six percent) will

include investment in new generation

along with retirement of the least efficient

and most polluting fossil fuel plants.

The plan also envisions that overall CFE

system losses will be no more than eight

percent, a requirement that will demand

extensive analysis and investment in

Smart Grid equipment.

This meeting was one of several with

CFE in 2011 designed to obtain a clearer

picture of current needs and future

investments. The plan is to provide

member companies with a better

understanding and realistic expectations

regarding both business opportunities

and product performance requirements.

At the same time, local offices of

the U.S. Commercial Service, which

are located throughout Canada and

Mexico, are ideally positioned to assist

member companies with awareness

and understanding of ongoing and

future investment in new Smart Grid

ready equipment. ei

Gustavo Domínguez, NEMA

Director for Latin America |

guguez@prodigy.net.mx

Gene Eckhart, Senior Director for

International Operations |

gen_eckhart@nema.org

1 “NEMA Discusses Smart Grid with Top Official from Mexico’s

Electricity Commission,” electroindustry 16 (April 2011):29

EEMODS 2011 will provide a forum to discuss and debate the latest developments in energy

management, system efficiency, standards harmonization, and public policy.

Learn more and register at www.eemods.org.

September 12-14, 2011

The Westin Alexandria

Alexandria, VA 22314

USA

NEMA electroindustry • June 2011 29


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Economic Spotlight

Ű Demand for Industrial Control Equipment Continues to Rise

NEMA’s Primary Industrial Controls

Index increased 5.9 percent on a quarterto-quarter

basis during the first three

months of 2011. The index has registered

sequential gains in six of the last seven

quarters and stands 18 percent above its

year-ago level and 40 percent above the

cyclical trough observed in mid-2009.

Nonetheless, inflation- and seasonallyadjusted

shipments remain 9 percent

below their previous cyclical peak.

The Primary Industrial Controls and

Adjustable Speed Drives Index, a broader

measure of industrial controls demand,

posted its seventh consecutive gain

during the first quarter of 2011, rising

6.2 percent from its 2010Q4 level. On a

year-over-year basis the index climbed at

an 18.6 percent rate.

The manufacturing sector continued its

impressive run during the first quarter

of 2011, climbing 9.1 percent on an

annualized basis—the largest percentage

rate of growth since the recession.

However, readings from major business

surveys, including the bellwether ISM,

suggest a looming deceleration from the

torrid pace set at the beginning of the

year. Indeed, annualized manufacturing

output growth is likely to slip below 5

percent as 2011 progresses.

Passenger vehicle output, a strong

contributor to the first quarter growth

surge, is expected to flag in the middle

part of the year because of supply

disruptions stemming from the Japanese

earthquake and its aftermath. Moreover,

while inventory investment will continue

run at a higher level than forecast a few

months ago, it is likely to become neutral

in terms of its impact on output growth

for the balance of 2011.

Demand for industrial controls, speed

drives, and other related types of

industrial equipment is expected to

remain at a high level for the remainder

of this year, although the pace of

growth will likely moderate as broader

manufacturing activity growth slows.

Rising rates of manufacturing sector

capacity utilization, healthier business

balance sheets, low financing costs, and

accelerated depreciation allowances

enabling businesses to lower the effective

cost of purchasing machinery and

equipment will all provide support. ei

Tim Gill, Director of Economics |

tim_gill@nema.org

NEMA electroindustry • June 2011 31


Economic Spotlight

Ű North American Business Conditions Continued to Advance in May,

but Gains Have Slowed

NEMA’s Electroindustry Business Confidence Index (EBCI) for

current North American conditions topped the 50 point mark for the

seventh consecutive month in May, signaling continued improvement

in the business environment.

Nonetheless, EBCI has slipped over the last few months as the share

of panelists reporting improvements has trended downward while the

share reporting declines has trended upward. The index measured

52.3 in May, down from 57.1 in April, and from a year-to-date high of

69.6 in February.

Twenty-seven percent of panelists reported conditions improved in

May, down from 30 percent in April and from 48 percent in February.

Meanwhile, 23 percent of panelists reported conditions deteriorated

in May, up from 14 percent in April and only 9 percent in February.

Half the panelists reported conditions were unchanged in May.

The survey’s measure of the degree of change in current North

American conditions also slipped in May, declining to +0.1 from

+0.3 in April and from +0.6 in February. Panelists are asked to

report intensity of change on a scale ranging from –5 (deteriorated

significantly) through 0 (unchanged) to +5 (improved significantly).

The six-month outlook remains optimistic. EBCI for future North

American conditions also dipped in May, declining to 81.8 from

85.7. Still, readings above 80 are exceptionally strong, having been

recorded in only 23 months in the decade long history of the survey.

In May, more than 68 percent of panelists said they expected

conditions to improve during the next six months, while less than 5

percent anticipated deterioration during that time period. ei

32 NEMA electroindustry • June 2011

Tim Gill, Director of Economics |

tim_gill@nema.org

Ű Available from NEMA/BIS —The Electroindustry Economic Outlook

Based on popular demand for up-to-date data and

forward-looking analysis of the electroindustry and the

economic fundamentals that drive it, NEMA/BIS offers

a subscription-based, regularly updated compendium of

the information that industry professionals and executives

most often request. The Electroindustry Economic

Outlook is the preferred source for timely, comprehensive

coverage of the economic trends and events shaping the

U.S. electroindustry.

• Extensive Coverage

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To find out how NEMA/BIS’s Electroindustry Economic

Outlook can help your business, contact Tim Gill at

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