Smart Energy & Transport Wireless - 2010 Survey of 70 Power Utilities, Shpigler Group For ATLIS Wireless

Prepared for:
ATLIS Wireless
July 26, 2010
ATL Released on SCRIBD 3.1.11. Page 1 of 43

February 2011. ATLIS Wireless LLC ("AWL") releases this on Scribd. .
1
AWL is the operations-support company serving FCC-license-holding companies with common interests: V2G LLC, Environmentel
LLC, Verde Systems LLC, Intelligent Transportation & Wireless Monitoring LLC, and Telesaurus Holdings GB LLC, each based in
Berkeley California. AWL also assists Skybridge Spectrum Foundation, a nonprofit corporation engaged solely in public interest
wireless.
- For more on these entities, see: www.scribd.com/warren_havens/shelf
The survey partially summarized in the following slides was conducted by The Shpigler Group in mid 2010 for AWL, based on
presentation of the following plan to 70 power utilities in the US (most but not all of the below was presented in the survey.)
Below, AWL means all of the above named entities.
1. Licensed Spectrum
Close to 20 MHz total on sub GHz. Approx. 20 MHz at 5.9 GHz. Potential additional in federal bands via cognitive radio.
These are good quantities, ratios, and bands for the proposed networks and applications --
- AWL holds in close to all of the US, FCC "geographic" licensed spectrum. It consists of [*] --
- 6+ MHz in 900 MHz (12 MHz in addition is available for smart transport-centric services with government operatives).
- 1 - 2.5 MHz in 200 MHz (217-222 MHz).
- 180 - 500 kHz in "40 MHz" (35 / 43 MHz). Mostly for nationwide meteor burst communications. See MBC folder at above link.
This will provide nationwide coverage by itself.
- Also, for smart or Intelligent Transport Systems applications, that can also serve smart energy (in below-proposed networks),
there should be available:
- 20 MHz or more in 5.9 GHz "DSRC" band (for point to point links, etc.).
- And potentially, adjacent federal spectrum on cognitive radio basis via participation / agreement of one or more federal agencies.
[*] See: http://www.scribd.com/doc/36614169/Sky-Tel-Atlis-900-200-40-MHz-for-Smart-Transport-Energy-Environment-V3-9-10-Public
(Continued...)
ATL Final Project Results 7.26.10

CONFIDENTIAL ATL Released on SCRIBD 3.1.11. Page 2 of 43
.
2. National and component regional wireless networks, dedicated to smart infrastructure. Using above-listed spectrum -- 1
- AWL, power utilities, and transport agencies would develop and operate Smart Transport and Energy Wireless.
- Environmental monitoring and protection, and emergency wireless would also be supported.
- High Accuracy Location (augmenting and backing up GPS) would be provided as well. See: the C-HALO folder in first link
above.
This, itself, is a major need and benefit.
- Nationwide plan and open, standards based technology: SDR and Cognitive Radio based.
- AWL, power utilities, and transport agencies would develop and operate Smart Transport and Energy Wireless.
- Environmental monitoring and protection, and emergency wireless would also be supported.
- High Accuracy Location (augmenting and backing up GPS) would be provided as well. See: the C-HALO folder in first link
above.
(HALO itself is a major need and benefit: per the UC Berkeley Study, in range of $300B / yr. benefits just in road transport
safety).
- Each power utility, and each transport-agency, in each regional network:

- would have secured access to the spectrum (more below),
- in a regional network operated by a new nonprofit regional operating entity created for this purpose,
- but within the agreed to nationwide plan for common tech and interoperability, etc.--
A "federal / state" approach.
- Applications (not fully repesented in the survey discussion below):

- wide area mobile, with HALO (sub-foot level accuracy).
- wide area fixed, supporting local-area fixed (including smart metering).
- nationwide telemetry, sub-nanosecond timing, and link encryption and authentication, via nex-gen Meteor Burst
Communications ("MBC"): major security and coverage umbrella not otherwise feasible.
- Federal partners sought. DOA (already doing MBC nationwide, and supporting HALO for precision farming), DOE, DOT, and
DHS for the nationwide security aspects, day to day, and in backup for major emergencies. US PNT members for HALO aspects.
Fed partners provide some infrastructure use (real estate, etc.) and cash grants, or other benefits.
(Continued...)

.
1
3. Participants network contributions, in exchange for take-backs of secured network operation capacity.
- Low and potentially no net costs to participant utilities and transport entities.
- All participant contributions and network take backs would be valued by agreed upon expert methods.
- AWL would contribute the above-noted core FCC spectrum. AWL would coordinate the development of the "federal-state"
structure, along with the energy, transport and other intended participants.
- AWL would take back, in each regional network operation, a well defined amount of network capacity (with physical and/or
firewall secure separation) amount for services it chooses to offer to the market on a profit and non-profit basis.
- The power utilities and transport agencies would contribute needed infrastructure (antenna sites, site links, ops centers, etc.) and
operational support, in exchange for which they would secure defined network capacity, similarly well defined and securely
separated.
- Network hardware and other capital expenses covered by the participants, and possible outside sources.
- Cash for operations would be secured from participant and outside sources, including some government grants. Modest cash
needs, due to above noted core contributions.
- The principal is to synergistically combine the above-noted ingredients and common needs for mission-critical wide-area mobile
and fixed wireless, and depending on each participant's relative contributions and capacity needs, each fairly valued, each regional
network and its legal entity is formed and operated, and these in nationwide federated plan.
- After networks are relatively mature in buildout and capacity, they may have capacity beyond what the participants need,
especially with SDR and Cognitive Radio, and if some adjacent federal spectrum is available.
- This would be leased, rented, or otherwise used by each regional network operating entity to obtain revenues, with a goal of
further reducing net costs to all contributing participants, and perhaps eventually make a profit.
For more information, call AWL at 510 841 2220: Warren Havens, Jimmy Stobaugh, or Mark Griffith.
And see: see: www.scribd.com/warren_havens/shelf
///

Executive Summary 3
There appears to exist an attractive opportunity at hand for ATLIS Wireless to

provide solutions to the electric utility market
•  Market research
–  There is a real movement toward converged communications systems that seems to support the ATLIS
Wireless approach
–  Concerns over the availability of spectrum and costs suggest a potential opportunity going forward
–  Higher costs associated with stand alone network deployments can be documented
•  A wide variety of utilities from across the country were surveyed and a sufficient level of interest in the ATLIS
Wireless approach was present
–  A total of 69 surveys were completed, with 17 respondents willing to reveal their specific answers and
identities
–  Key sources of attraction to the concept included ready access to spectrum, cost containment, and
opportunities to leverage the network for smart grid activities
–  A number of concerns were vocalized, including questions dealing with shared spectrum, network
security, financial feasibility, and partnership operations
–  Key areas worth exploring based on questions and suggestions from utilities involved network ownership,
cost allocation, system control, and network operations
–  Seven utilities were identified as being candidates for immediate discussions

Agenda 4
Today’s discussion
•  Market Findings
•  Survey Results
•  Next Steps

Market Findings 5
Wireless networks are increasingly being looked at by electric utilities to solve

networking issues
•  Much of the drive for increased wireless networks is driven by advances in smart grid deployments
Source: Senza Fili

Market Findings 6
As the interest in wireless networking grows, more utilities are exploring

alternative approaches to deployment
•  Utilities that have traditionally sought to deployment networks on their own are now considering creating
partnerships and managed services to reduce capital requirements and staffing needs
•  Key concerns involving alternative structures involve ensuring that utility requirements are met in all cases

Market Findings 7
These wireless networks are growing in reach as many involve multiple

applications
•  Backhaul Wide Area Networks

•  Access for Regional Area Networks
•  Reach into Local Area Networks
•  Developing into Home Area Networks
Source: Itron
Market Findings 8
There are a number of key steps involved in establishing the system requirements
in order to begin network planning
Key Deployment Steps
•  Assess network application

requirements
•  Consider future networking
needs
•  Conduct design while
accounting for topology,
technology, frequency, and
terrain
•  Engineer network to optimize
network components
•  Conduct ROI analysis to
evaluate leased line
replacement
•  Conduct network integration to
ensure end-to-end performance
Source: Alcatel Lucent

Market Findings 9
There are a number of key regulatory issues that have arisen that drive some
concerns for electric utilities
•  Current 150-470 MHz systems are subject to narrowbanding mandate for 2013
–  The interim deadline is for 2011 and will demand pressure of manufacturers
–  The FCC pressure toward 6.25 kHz is creating uncertainty in the market
–  The push toward the increased use of shared frequencies, coupled with network growth, drives concerns
related to network interference and congestion
•  There is some rebanding ongoing in the 800 MHz band with some regions frozen
–  Few frequencies are available across the country
–  The vacated Nextel channels offer availability for public safety for the next three years
–  Some see the vacated spectrum as presenting opportunities for municipal agencies
•  Many are looking to opportunities in the 900 MHz band
–  The presence of existing systems permits expansion without a freeze waiver
Source: UTC
Market Findings 10
Despite the increased attention on alternative approaches to wireless networks,

many within the utility community still house concerns about handing over control
to third parties
•  Third party providers are often seen as providing substandard levels of services
–  There are fears that high bandwidth services will not be available throughout an entire utility service
territory
–  Some have questioned the degree to which service levels may be maintained
–  There are concerns over the consistency of a telco business model with utility operations
•  The unique requirements of an electric utility is a source of concern
–  Utility networks are designed for reliability and wide area coverage whereas many telco-based systems
are built with capacity or market penetration as a key driver
–  Fears over latency needs must be addressed
–  Network sustainability issues involve the transfer from analog to digital signals
–  Third party providers must find a way to address liability issues associated with NERC cyber security
requirements
•  The use of unlicensed wireless always will present risks
–  Utilities are always concerned with potential interference and congestion from incompatible users

Market Findings 11
Surveys among the utility segment show that while fiber-based networks still drive
a large portion of communications needs, wireless does share a significant
percentage as well
- Wholesale Services - - Retail Services -
Source: UTC
Market Findings 12
Converged networks are increasingly being looked at for a variety of applications
Fixed Voice Plant, Campus, Territory: VOIP

Fixed Data Process Control & Telemetry Network
Mobile Voice Digital TMR & VOIP
Mobile Data Digital AVL, GIS, Internet
Electric Utility Field Network Applications

Customer Real Time Asset Work
Business Unit Service Operations Management Management Enterprise
Relay Protection, Planning,
EMS, DMS, SA, Engineering, Dashboards, IT, SCM,
SCADA, DA, DR, Maintenance, HR, Finance, Legal, IR,
CIS, AMI/AMR, IVR, OMS, Generation SCADA TMR, AVL, GIS, Compliance &
Applications & Processes Billing Dispatch Historian WMS, MDT Business Continuity
Continuity of
service and
increasing Maximize asset Faster, better,
Strategy satisfaction Keep the lights on utilization & life cheaper Do the right thing
Customer Service
Distribution
Transmission
Engineering
IT / Admin / Security
Source: Arcadian Networks

Market Findings 13
The key cost component associated with network deployment involves allocating
for network backhaul
Source: Yankee Group, Aviat

Market Findings 14
More and more focus is being placed on public safety networking solutions
•  The FCC’s Omnibus Broadband Initiative (OBI) provides support for the National Broadband Plan’s public
funding recommendations for the nationwide interoperable public safety broadband wireless network
•  It is the FCC’s position that public safety agencies can leverage the deployment of 4G commercial wireless
networks to greatly reduce the overall costs of constructing their nationwide broadband network
Source: FCC
Market Findings 15
The FCC estimated that as much as $6.5 B in capital funding will be required over
a 10-year period to provide advanced public safety broadband network capabilities
to agencies that collectively serve 99% of all Americans
•  $4.0 B to equip 41,600 commercial towers with dedicated public safety broadband spectrum RAN capabilities
•  $1.5 B to harden the commercial towers (improving reliability, particularly when commercial power is lost)
•  $0.8 B to equip 3,200 rural towers with public safety broadband spectrum RAN capabilities by upgrading
towers (75%) and installing and equipping new towers (25%) and hardening those towers
•  $0.2 B to provide for a fleet of public safety deployables (a mix of next generation COWS, COLTS, etc.),
vehicular area network systems, and non-recurring engineering costs for handset development
Source: FCC
Market Findings 16
The FCC’s analysis clearly shows that network deployment costs may be reduced
by nearly 60% by entering into incentive-based partnership rather than deploying
a stand-alone public safety network…
Source: FCC
Market Findings 17
…leading to a long-run cost reduction that could exceed 73%
Source: FCC
Market Findings 18
The evolution in voice and data needs are driving a new set of networking criteria
•  Critical Voice Dispatch Services

–  Voice dispatch/ LMR PTT services/ talk groups
–  Interoperable communications/ console integration
–  Business continuity/ ERT services
–  Wireless priority services
•  Enterprise Mobility & Asset Management
–  Enterprise wide broadband connectivity
–  Secure connectivity options
–  Work order and time management
–  Location based services and asset tracking
•  Telemetry and Automation
–  Support of M2M devices and systems
–  Secure VPN connectivity options with QoS
–  Mobile and fixed automation
–  Varying bandwidth to meet applications
–  Multimedia and video
Source: Sprint
Market Findings 19
As a result, we see a movement toward converged IP-based systems that cover a

variety of utility needs
Source: Sprint
Market Findings 20
Requirements of these converged systems involve integrating all the way down to
the device level and tying systems together for operators
Source: Sprint
Market Findings 21
Within the utility segment, much of the focus lies in supporting a variety of system
automation applications in the drive toward smart grid
Key Utility Areas of Focus
•  Advanced Metering Infrastructure

•  Control and automation (SCADA)
•  Distribution automation
•  Synchrophasors
•  Substation automation
•  Demand Response
•  Mobile workforce
•  Vehicle charging stations
•  Power quality monitoring
•  Remote sensor support
•  Enterprise voice and data
•  Integrated mapping (GIS)
•  Flow/level measurement
•  Gas corrector support
Source: Sprint, Alcatel Lucent
Agenda 22
•  Next Steps

Survey Results – Program Benefits 23
The key issues that utilities liked about the proposed approach included the
access to needed spectrum and cost containment
•  The utilities we spoke with expressed concern over their inability to gain access to spectrum and saw this
approach as offering a viable alternative
•  There were several who saw the natural efficiencies associated with developing a joint network build

Survey Results – Program Concerns 24
Some respondents expressed concern over the feasibility of working with a third
party provider that could go out of business
•  The third-party partnership issues also included some security concerns

•  Utilities also wanted to make sure that any network plan could be shown to offer fiscal benefit

Survey Results 25
There were a variety of suggestions and questions surrounding the feasibility of

the ATLIS approach
•  There were some concerns voiced about the structure of the deal and what assurances would be made for
utility investments
•  A multi-user platform brings into question a number of “shared services” concerns about cost allocation
•  A number of respondents mentioned concerns about the control any given utility would have in the ongoing
operation of the system

Utility Profiles 26
Baltimore Gas & Electric was cautiously intrigued with the proposed approach

Utility Profiles 27
Cleco has concerns about the viability of the plan, but is in the process of
exploring options and may have an interest in discussing further

Utility Profiles 28
Integrys has been involved in a series of evaluations of network deployment

options and seems to be interested in exploring further

Utility Profiles 29
Nashville Electric has some interest based on gaining access to spectrum

assuming that business concerns can be addressed

Utility Profiles 30
PG&E might have an interest if a solid business case can be demonstrated

Utility Profiles 31
Nebraska Public Power District has an interest in exploring the option further to
explore potential opportunities to support statewide smart grid deployment
activity

Utility Profiles 32
Tucson Electric Power has definite interest in getting more involved in this
opportunity

Overview 33
There are six primary areas of concern we will want to address
Key Network
Concerns
Bandwidth Security Ownership Reach Prioritization Standards
Will the public Can the public Can utility Can the public Can a utility What standards
system system provide depend on a system depend on requirements
sufficiently enough security third party effectively realizing priority need to be
provide enough to safeguard system provider reach 100% of service in adhered to?
bandwidth for utility data from to provide for all the assets events of
utility, the water outsiders? of its needs in a within the outages?
AMR, and retail reliable service
broadband manner? territory?
use?

Bandwidth 34
The practical limitations of many public systems can place a cap on the bandwidth
needs that utility would have access to
•  Utilities today recognize the need to build networks in support of smart grid activities
Source: Energy Australia

Security 35
The security needs of utility – given its position as an owner of critical

infrastructure – will require assurances that network security is not compromised
in the course of network operation
•  The primary concern to date has centered around the tradeoff of convenience and simplicity at the expense of
network security associated with wireless systems
–  Public radio signals typically extend beyond the physical boundaries that are part of planned signal
propagation
–  Interfacing with the public system would require discrete channels be set up for utility’s use, thus cutting
into the available bandwidth for users
•  North American Electric Reliability Council (NERC) safeguards will need to be adhered to
–  Energy Reliability Organization (ERO) carrying enforcement capabilities are outlined in the Energy Policy
Act of 2005, and membership in and compliance with its standards are now required elements of doing
business
–  Updated NERC standards (CIP-002-1 to 009-1) includes a mix of general principles and detailed
procedures for critical infrastructure entities to follow
–  It is vital for utilities to address these standards, since some of the greatest vulnerabilities in electric utility
networks lie in the communications systems that support continuous system operation and electric
reliability

Ownership 36
More and more electric utilities have developed their own communications
systems to release their dependence on third-party systems providers
•  During much of the 1980s and 1990s, many electric utilities developed their own communications systems to
provide relief from dependence on third-party providers like telcos
–  Elimination of installation fees and rights of way
–  Elimination of toll payments
–  Elimination of added miscellaneous charges associated with using cellular systems
During the terrorist attacks

in New York on September
11, 2001, ConEd
Communications was able
to maintain its
communications system
and support the utility’s
need to communicate
across the grid despite the
fact that Verizon had lost
most of its network Historical area of
capabilities focus for electric
utilities

CONFIDENTIAL
Reach 37
It will be essential that the network be able to reach all portions of the electric grid
•  While public systems are typically built to realize maximum (but not complete) coverage for an attractive cost
position, the utility will need to reach points that could be hidden from the public network
–  Back lot construction will present some reach challenges
–  Buildings and other obstructions may pose a problem within the beltway
–  Metal-wrap homes may be unreachable if the meter is on the “wrong” side of the house
•  Core network-facing applications that include substation automation and DA will generally involve landline
deployments, with fiber-based systems leading the way

Prioritization 38
Utilities will want to ensure that network elements are turned back up as soon as
possible in the event of network interruptions
•  When the utility owns the meters and the entire communications system and does not have to rely upon
another provider, it can ensure that systems are operated according to utility principles
–  No interruption of data transmission due to downed third-party systems
–  Maintenance and repairs scheduling is completely controlled by the utility
•  The DA network will entail different elements – each with its own set of requirements
–  The AMI portion of the DA system involves data that is not necessarily mission critical
–  However, the Intelligent Grid portion of the system will need to be maintained throughout
•  Given the headcount reductions that are forecasted, it will be doubly important to ensure that systems are
maintained
–  With the revamped workforce, the utility will be dependent on the continued operation of the
communications network supporting DA operations
–  Today, devices under consideration for use in public systems are at the bottom of the priority order for
turn-up during a large-scale outage

Standards 39
There are a myriad of technology standards that need to be complied with

•  Upper layers 4-8: These layers represent application-specific information that binds closely to the function of the Actor, as opposed
to where the Actor is located. For this reason, they are largely Domain-independent. Complementary standards should be
retained, and overlapping standards should be either harmonized or chosen amongst.
•  Layer 3 and the cross-cutting issues: These represent highly domain-specific standards. An optimized process should result in the
combining and harmonization of standards to minimize the options for these interfaces so that devices and applications for that
domain can have a minimum of complexity.
•  Layers 1&2: These represent media and lower layers of communications interfaces. Although communications infrastructures
should be as homogeneous as possible, engineering designs and constraints must dictate local decisions. As long as these
interfaces can carry the semantics of the upper layers with the required qualities of service, the specific choice of these layers can
be transparent to the Actors. Thus these interfaces can be optimized for the actual physical locations in which they are deployed.
Source: NIST, EPRI

Agenda 40
•  Next Steps

Next Steps 41
Based on discussions with a variety of utilities, it appears that further

development of the ATLIS Wireless value proposition may be in order
•  There exists sufficient interest on the part of a variety of utilities to explore the concept in greater detail
–  Survey results have highlighted a number of key points of interest as well as some areas of concern that
can be used to drive the operational structure
–  Further discussion with interested utilities in the form of an ad hoc group can be used to refine further
and explore different options going forward
•  A number of other steps will need to be developed in parallel
–  Outline key technology issues for utilities and public safety entities
–  Develop business case that documents the value proposition
–  Address key issues involving network security and bandwidth sharing
–  Develop shared services platform


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Prepared for:

July 26, 2010

ATL Released on SCRIBD 3.1.11. Page 1 of 43

[*] See: http://www.scribd.com/doc/36614169/Sky-Tel-Atlis-900-200-40-MHz-for-Smart-Transport-Energy-Environment-V3-9-10-Public

ATL Final Project Results 7.26.10

- Each power utility, and each transport-agency, in each regional network:

- Applications (not fully repesented in the survey discussion below):

ATL Final Project Results 7.26.10

ATL Final Project Results 7.26.10

There appears to exist an attractive opportunity at hand for ATLIS Wireless to

ATL Final Project Results 7.26.10

ATL Final Project Results 7.26.10

Wireless networks are increasingly being looked at by electric utilities to solve

Source: Senza Fili

As the interest in wireless networking grows, more utilities are exploring

ATL Final Project Results 7.26.10

These wireless networks are growing in reach as many involve multiple

• Backhaul Wide Area Networks

Key Deployment Steps

• Assess network application

Source: Alcatel Lucent

Despite the increased attention on alternative approaches to wireless networks,

ATL Final Project Results 7.26.10

- Wholesale Services - - Retail Services -

Converged networks are increasingly being looked at for a variety of applications

Fixed Voice Plant, Campus, Territory: VOIP

Electric Utility Field Network Applications

Source: Arcadian Networks

Source: Yankee Group, Aviat

…leading to a long-run cost reduction that could exceed 73%

• Critical Voice Dispatch Services

As a result, we see a movement toward converged IP-based systems that cover a

Key Utility Areas of Focus

• Advanced Metering Infrastructure

ATL Final Project Results 7.26.10

ATL Final Project Results 7.26.10

• The third-party partnership issues also included some security concerns

ATL Final Project Results 7.26.10

There were a variety of suggestions and questions surrounding the feasibility of

ATL Final Project Results 7.26.10

ATL Final Project Results 7.26.10

ATL Final Project Results 7.26.10

Integrys has been involved in a series of evaluations of network deployment

ATL Final Project Results 7.26.10

Nashville Electric has some interest based on gaining access to spectrum

ATL Final Project Results 7.26.10

PG&E might have an interest if a solid business case can be demonstrated

ATL Final Project Results 7.26.10

ATL Final Project Results 7.26.10

ATL Final Project Results 7.26.10

There are six primary areas of concern we will want to address

Bandwidth Security Ownership Reach Prioritization Standards

ATL Final Project Results 7.26.10

Source: Energy Australia

ATL Final Project Results 7.26.10

The security needs of utility – given its position as an owner of critical

ATL Final Project Results 7.26.10

During the terrorist attacks

ATL Final Project Results 7.26.10

ATL Final Project Results 7.26.10

ATL Final Project Results 7.26.10

There are a myriad of technology standards that need to be complied with

Source: NIST, EPRI

•  Backhaul Wide Area Networks

•  Assess network application

•  Critical Voice Dispatch Services

•  Advanced Metering Infrastructure

•  The third-party partnership issues also included some security concerns