Andres Carvallo to Keynote UTC Smart Grid Summit

Andres Carvallo, the father of smart grid, will keynote day two of the Utilities Telecom Council’s Smart Grid Summit. Andres will share the genesis of the smart grid and its journey at Austin Energy, the first smart grid in the US covering 1 million consumers and 43,000 businesses. Andres will review the transformation that he has been leading at Austin Energy since 2003. The steps to build the nation's first smart grid have been driven by the need to simplify infrastructure, improve decision making, adapt to faster changing business needs, improve disaster recovery and business continuity planning, improve regulatory compliance, increase quality standards, increase reliability, increase customer satisfaction and reduce operational costs.

Austin Energy's Smart Grid is powered by a pervasive network and Software Oriented Architecture that follows the principles of delivering presentation, process, and information as services to all stakeholders. From connecting and managing central power plants, distributed energy plants, the wholesale energy system, the transmission and distribution grid, the meters, distributed generation, storage, electric vehicles, smart appliances at customer sites, to the delivery of timely information and new services via portals, in-home displays, smart phones and TVs to all customer types.

The way to the smart grid is via a new technology governance that ensures centralization of information technology and communications groups, the purchasing process, and the decision making and business alignment, while remaining flexible and driven by the Line of Business Executives and Managers as sponsors of their projects and accountable to the enterprise for funding of the projects, business cases, ranking and alignment against the corporate strategic goals, and committed to delivering the benefits outlined in the business justification case for the investment.

Architect enterprise-wide but deliver one discrete project at a time to show success, adoption, and culture change. Remember that perfection is the enemy of good. And remember that building that smart grid is a journey and not a quick trip destination. The Architecture effort must drive improvements in your network, systems, data, and business process architecture layers. Doing one and not the others will cost you lots and take you longer. Start with mapping your top business processes as they are today. That exercise will give you a true insight into where you are as an enterprise. Then define the most ambitious end-goal possible. Follow that with mapping the gap from today vs. tomorrow and picking the quick win projects to attack first. Be surgical and stay the course. Celebrate every win and invest in marketing the journey for all to share. And don't forget to document your lessons learned.

Achieving success will require true top down commitment to business process innovation and managing and rewarding culture change that optimizes the reach of higher levels of efficiencies, higher levels of effectiveness, and better customer experiences. The smart grid can be delivered sooner that most people think. The technology is available today and the holding back is around risk management, business models, and politics. The path to success requires a new way of thinking about our challenges as a nation and the solutions to empower our total transformation by unleashing a new smart grid economy.

http://www.utc.org/node/1091

US Commerce Secretary Unveils Plan for Smart Grid Interoperability

FOR IMMEDIATE RELEASE:
Sept. 24, 2009

WASHINGTON – Commerce Secretary Gary Locke today unveiled an accelerated plan for developing standards to transform the U.S. power distribution system into a secure, more efficient and environmentally friendly Smart Grid and create clean-energy jobs.

The draft of the report is available at http://www.nist.gov/public_affairs/releases/smartgrid_interoperability.pdf.

Produced by the Commerce Department’s National Institute of Standards and Technology (NIST), the approximately 90-page document identifies about 80 initial standards that will enable the vast number of interconnected devices and systems that will make up the nationwide Smart Grid to communicate and work with each other. These standards will support interoperability of all the various pieces of the system—ranging from large utility companies down to individual homes and electronic devices. The report also lists a set of 14 “priority action plans” that address the most important gaps in the initial standard set.

“To use an analogy from the construction world, this report is like a designer’s first detailed drawing of a complex structure,” said Locke in prepared remarks. “It presents a high-level conceptual model to ensure that everyone is on the same page before moving forward to develop more detailed, formal Smart Grid architectures. This high-level model is critical to help plan where to go next.”

The draft will be posted for a 30-day period of public comment and review. According to George Arnold, NIST’s National Coordinator for Smart Grid Interoperability, finalizing the standards will ensure that the grid transformation goes both smoothly and rapidly—a priority of the Obama Administration. About $4.5 billion of American Recovery and Reinvestment Act of 2009 (ARRA) funds to the Department of Energy also are slated for Smart Grid demonstration projects.

“Because of the urgent need to remake the grid into a modern power distribution system, we have set a timetable that is much swifter than usual for establishing these standards,” said Arnold. “But at the same time, we also want to be certain that the initial standards we establish will hold up in the future so that investments in the Smart Grid will not become prematurely obsolete.”

When completed, the Smart Grid will employ real-time, two-way digital information and communication technologies in the operation of the nation’s electricity grid. The system would allow consumers to better manage and control their energy use and costs, reduce America’s dependence on foreign oil and create clean-energy jobs.

The draft report, entitled NIST Framework and Roadmap for Smart Grid Interoperability Standards, Release 1.0, incorporates input from more than 1,500 industry, government and other stakeholders who have participated in the NIST framework development process.

The Framework draft includes:

· a basic set of standards for interoperability and security, identifying roughly 80 specific standards and specifications to support the Smart Grid;

· the 14 “priority action plans” that describe what is being done immediately to fill important gaps where additional or revised standards are needed. These outline everything from plug-in electric vehicles, to home energy management systems, to distributed intelligence aimed at keeping the grid from developing problems before they arise. Each plan identifies standards organizations responsible for addressing them, a recommended approach and aggressive timelines to develop solutions to these needs; and

· a summary of a separate NIST cyber security strategy, which aims to protect the Smart Grid against the modern threat of cyber attack.

Following the 30-day public review and comment on the draft, NIST will finalize the Framework document, which is the culmination of the first phase of NIST’s three-phase approach to develop Smart Grid standards. Phase 1, the engagement of stakeholders in a participatory public process to identify applicable standards and gaps in currently available standards and priorities for new standardization activities, ends with the final publication of the Framework report after public comments have been incorporated.

Phase 2 will establish a private-public partnership and forum—a Smart Grid Interoperability Panel—to drive longer-term progress. NIST is using ARRA funds to establish the panel by the end of 2009. Phase 3 will develop and implement a framework for testing and certification of how standards are implemented in Smart Grid devices, systems and processes. NIST is consulting with industry, government and other stakeholders to develop a plan for a testing and certification framework by the end of 2009 and take steps toward implementation in 2010.

The results of NIST’s ongoing work on standards for the Smart Grid also provides input to the Federal Energy Regulatory Commission, which under the 2007 Energy Independence and Security Act is charged with instituting, once sufficient consensus is achieved, rulemaking proceedings to adopt the standards and protocols necessary to ensure Smart Grid functionality and interoperability in interstate transmission of electric power, and in regional and wholesale electricity markets.

For more information on NIST’s work with Smart Grid, visit http://www.nist.gov/smartgrid/.

As a non-regulatory agency, NIST advances measurement science, standards and technology in ways that enhance economic security and improve our quality of life.

Austin Energy Selects Oracle Utilities Customer Care and Billing to Support Smart Grid Initiatives

Redwood Shores, CA – September 17, 2009

News Facts

The City of Austin has selected Oracle® Utilities Customer Care and Billing to replace an outdated, legacy customer information system (CIS) and support the city’s smart grid initiatives. The City of Austin will roll the solution out to both Austin Energy – the nation’s ninth largest community-owned electric utility with 388,000 customers – and Austin Water. The application will provide Austin Energy with a complete view of customer data and streamline billing processes to enable more responsive customer service. Austin Energy plans to work with IBM on the implementation.

Oracle Utilities Customer Care and Billing will enable Austin Energy to implement innovative energy efficient and demand management programs by providing detailed energy usage data that will allow its customers to make more informed decisions to conserve energy. The application will also help Austin Energy create new rate structures to support the future needs of its customers.

Austin Energy is embarking on the Pecan Street Project, an effort to design a new, clean energy infrastructure business model and proving ground for future energy technology. The utility is working with Oracle, as well as Applied Materials, Dell, GE Energy, IBM, Intel, Cisco Systems, Microsoft, Freescale Semiconductor, The University of Texas’ Austin Technology Incubator, the Greater Austin Chamber of Commerce and Environmental Defense Fund (EDF) on this venture.

Oracle Utilities Customer Care and Billing will function as a critical foundational component of the Pecan Street Project. Austin Energy hopes to design a comprehensive system that delivers abundant, reliable and affordable energy to Austin’s growing population. Additional goals of the project include: responsible management of air and water, elimination of the need for more polluting power plants, and generation of a power plant’s worth of energy within the city limits with renewable resources.

Austin intends to share its initiative with cities across America and around the world. The project will help cities map out the creation of the infrastructure required to power their economies and preserve the environment.

A long-term Oracle customer, Austin Energy also uses Oracle® Utilities Mobile Workforce Management to help ensure service availability and automate field operations via dispatch, scheduling and routing. With the Oracle solution, Austin Energy is able to provide its field workers the optimal route with the least mileage and fewest truck rolls, which helps reduce fuel consumption, highway congestion and tailpipe emissions.

In the future, Austin Energy hopes to expand its mobile workforce management capabilities to improve workforce productivity and reduce operating expenses while minimizing missed appointments, service backlogs and overtime costs.

Supporting Quote

“For utilities to effectively move to the smart grid, it is imperative that they provide their customers with actionable information about their energy use and prepare to accept new renewable energy sources into the grid. With Oracle Utilities Customer Care and Billing, Austin Energy will be able to provide its customers with a clear picture of the relationship between their consumption and environmental impact, and then offer service options to help change behavior. We believe the Pecan Street Project is a stepping stone for the future – helping guide other utilities around the world in choosing smart grid software and technology to minimize energy consumption,” said Quentin Grady, senior vice president and general manager, Oracle Utilities.

http://www.oracle.com/us/corporate/press/032931

Andres Carvallo Speaks at Gridweek

Andres Carvallo has been invited to share the Smart Grid journey at Austin Energy, the first one fully built in the US, in a panel with Lisa Wood, Adrian Tuck, Tom Casey, and Anthony Star. The focus of the panel is to explore and discuss the actual value that customer are getting and/or will get soon from the smart grid.

http://www.gridweek.com/2009/#session_929

· GridWeek provides the opportunity for organizations and businesses focused on Smart Grid to hold meetings and participate in collaborative sessions and learn from leading experts on Smart Grid.

· The week will focus on the following key elements: Showing Smart Grid Implementation, Implementing EISA 2008 / ARRA, Integrating Renewable Energy, Understanding End-User Perspectives, Facilitating Efficiency/Carbon Reduction, Exploring New Business Models, Improving Operational Efficiencies, and Integrating Smart Appliances/Vehicles.

http://www.gridweek.com/2009/#home

Andres Carvallo and Austin Energy Named to InformationWeek 500 in 2009

My Smart Grid leadership and work at Austin Energy was recognized on September 2009 by InformationWeek at their InformationWeek 500 Awards Gala. Austin Energy was ranked among the top 250 Most Innovative Companies in the US. This is another great recognition of our world class planning and execution as a premier Electric Utility in the US.

http://www.informationweek.com/1241/index.jhtml;jsessionid=3CE3WZYEFI1WTQE1GHRSKHWATMY32JVN

Andres Carvallo Returns to KU and Shares Smart Grid genesis and journey

I have been invited by Dean Stuart Bell (School of Engineering) to come back to KU (Rock Chalk) to share about the genesis of Smart Grid (I coined the term, definition, and unveiled its framework on April 24, 2007), and my journey in building it at Austin Energy (first Smart Grid built in the US). Reading that letter was very rewarding. So, I will be going back on September 18th to meet with him, faculty, and students.

See, we all grow up and go to school to only hope that our skills and creativity will be able to make a difference in someone’s life and maybe more than that. My journey as a professional has been meteoric, exciting, challenging and filled with immense hard work. I was not the top student that my parents had hoped, and I was not as mature as I could have been. I was a bit of a late bloomer on maturity, dedication, discipline, and responsibility. Even though I was an Eagle Scout and a Black Belt in Tae-Kwon-Do with national championships to brag about by the time that I graduated from KU.

When I chose to go to KU, a great deal of that decision was the fact that KU was the place where Dr. James Naismith, who invented basketball, decided to coach. And were Phog Allen became a legend as a coach. And where Wilt Chamberlain played. And where so many other accomplishments and traditions had taken place. It was a choice of a school that had the possibility of teaching me how to make a difference. After graduating, I was hired by Microsoft Corporation in Redmond, WA. Right out of school, I found myself in a place that was hoping to change the world, and actually did it. I worked on Windows, MS-DOS, and Flight Simulator. That experience, plus years at SCO and Borland taught me lots about being customer driven, the customer lifecycle, product creation, eco-system creation, corporate politics, and managing dynamic complexity. From software, I went to hardware by joining Digital Equipment Corporation as a GM in the PC Company. Then on to communications, by joining Philips Electronics as a President/GM of the Consumer Communications Division making wired phones, wireless phones and pagers. Afterwards, I decided to do four start-ups (one was an ISP/CLEC, one was an Internet B2B exchange, and two were in wireless applications and services).

The reason that I share this is that the Smart Grid is the seamless integration of an Electric Grid, a Communications Network, Hardware and Software.

So, when I came to Austin Energy, in 2003, I was an expert in Communications, Hardware and Software. But I didn’t understand well the Electric Grid and its industry. So as we embarked on achieving my goal of helping free up capital and operating dollars to build a new business for the company, which we baptized Distributed Energy Services (focus on conservation, energy efficiency, alternate energy, storage and electric transportation), I realized that I was building something transformational that would change the industry. I had read about EPRI’s Intelligrid™ and IBM’s Intelligent Utility Network™. Both terms were trademarked and cost money to learn and use. I knew that I was building elements of what they preached, but my vision was larger in scope. My vision was certainly shaped by Roger Duncan’s own vision of combining the Utility industry, the Automotive industry and buildings in a new way. Roger Duncan is a visionary, a superstar and my boss at Austin Energy.

So, on April 24, 2007 in Chicago, IL at an IDC energy event, I coined the term as I made a presentation of our journey of building the utility of the future. I needed a term that didn’t infringe on any trademarks, that could be used freely, and that could help define our end-to-end encompassing vision of a new grid needed to connect and manage the merging of the Utility, Vehicles and Buildings. So, Smart Grid was born.

As I talk about Smart Grid, I break it into two distinct pieces. First, my rationalization of talking about Smart Grid 1.0 which goes from the central power plant, through the wires, to the meter and back. It is the focus of most utilities today. And second, the importance of taking about Smart Grid 2.0 which goes beyond the meter into the premise (e.g home, business, school, factory, hospital) to manage other distributed energy elements. Smart Grid 2.0 is about integration of the utility grid (Smart Grid 1.0) to distributed generation (solar PV, micro-wind, etc), energy storage (thermal, electric), electric vehicles, and smart appliances. Smart Grid 2.0 opens up a new future of opportunities for many and it empowers customers to become prosumers (producers as well as consumer of energy).

I am looking forward to the honor and opportunity of returning to KU and share with administrators, faculty and students.

Furthermore, I am also going to be unveiling what Smart Grid 3.0 will be at KU on September 18, 2009.

http://www.calendar.ku.edu/index2009.php?option=eventview&ce_id=26689

Andres Carvallo Speaks at CIO Summit US 2009

Join us at the CIO Summit US 2009, where CIOs from Coca-cola, JP Morgan Chase, Radio Shack, Jack In The Box, Bose, Crayola, Scholastic, Comcast, Wells Fargo, Barclaycard, Jet Blue, Red Roof, Panasonic, and Austin Energy share their best practices and experience on the hottest and most relevant topics for running IT as a business. Alongside these experts we will get an inside track on roadmaps from Microsoft, Sybase, CA, APC, Schneider Electric, Data Domain, and Cordys.

Especially, please join the CIOs of Panasonic, Austin Energy, JetBlue and Red Roof to hear their experiences on how to build a roadmap and prioritizing IT strategies, applications and tools in this demanding and tough times. They will cover virtualization, legacy applications, VOIP, IPTV, Web 2.0, Enterprise Content Management, Green IT, Identity and Access Management, Business Intelligence, Mobile Workforce, and GIS.

http://www.ciosummitus.com/

Andres Carvallo named to the HITEC 100 2009

For a second year in a row, I have been named to the prestigious HITEC 100 Award. An excerpt from the letter that I received follows.

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Dear Andres:

Felicitaciones! You have been selected as one of the HITEC 100 - Most Influential Hispanics in Information Technology sponsored by HITEC. Your dedication and successful examples of leadership have earned you the merit of a top leader in IT. The unprecedented response to the second edition of the HITEC 100 has been overwhelming. This year will be remembered as one of the most exciting years for Hispanics in this country as the first Latina was selected to the Supreme Court. It is once again a proof that Latinos continue to make a big difference in this country. It is with great honor that we congratulate and celebrate your achievements. Through your hard work and perseverance you have achieved this great milestone! The complete list of the HITEC 100 and Rising Stars will be released at the Annual Executive Summit in Washington, DC, October 30^th, 2009. Details will follow.

Sheena Heitzman, Managing Partner
Heitzman’s Communication Solutions

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For more information on the HITEC 100 and its program, please click http://www.hitecglobal.org/index.html