This Thursday will be my last day with UTC.  This will be my last blog post on UTC Insight as your President and Chief Executive.  But, it will probably not be the last time you’ll hear from me.  While I have no plans beyond spending more time with Tracy, I know there is too much going on for me to ride quietly off into the sunset.

So, no farewells.

As I think back on all that UTC’s members have been able to accomplish during my time here, I have enormous pride - but, I can’t help but look forward.  Information communications technologies will form digital nervous system that will empower the next generation of energy in the world.  I leave UTC at the center of that universe, positioned to play a critically important role in helping all our member utilities and their technology partners make the leap into grid modernization with far greater ease than would be likely without UTC.

Last week, I was mentioned to an old friend that - today - we are just at the threshold of seeing all the promises of smart grids become a reality.  He groaned, asking, if that’s true, what then have we been doing for the past ten years?  Getting ready.  When you look at what we now can see will be happening, it’s all truly been about getting ready.  While we still have much work to do and many questions to answer, we now really know what questions to be asking and we have a pretty good idea of where we’re headed. 

I’m thrilled to see UTC positioned where we are to help our members make it all happen as fast as possible, while ensuring that that utility ICT ensure the safe, secure, reliable and recoverable of critical energy systems.

Personally, after 30 years of being the CEO of various technology-oriented trade associations, I’m looking forward to relaxing - a little - and taking on a few projects that allow me to contribute just a bit more to this industry and the communities in which I live.

I love UTC and wish everyone associated with it every possible success.  It has been a wonderful opportunity to have served as UTC’s Chief Executive.  It has been an equally extraordinary honor to work with an industry that is at its heart and soul so committed to supporting the communities they serve.

On Friday, July 1st, Connie Durcsak will start as the next UTC President and Chief Executive Officer.  I know you will all join me in welcoming her to the family and will give her as much support and as many good ideas as you have given me.  Thank you all very much.

All the best,

-  Bill

By now, you have no doubt read that yesterday the White House announced a number of public and private sector initiatives geared towards “accelerating the modernization of the Nation’s electric infrastructure, bolstering electric-grid innovation, and advancing a clean energy economy.  They include $250 million in Rural Utility Service (RUS) loans for smart-grid technology deployment, a private sector initiative to promote consumer-friendly tools for energy management and privacy, and the formation of a Renewable Energy Rapid Response Team, which will be jointly led by the White House Council on Environmental Quality, the Department of the Interior, and the Department of Energy.”
 
I was there for the announcement and follow-up discussions; and I took away three things about what I think this means to you and your telecom and IT team:
 
1.  Federal and state regulatory support for grid modernization – everything from more renewable energy sources to intelligent meters and all the communications networks in between – has become institutionalized.  The regulators continue to sound like they are determined to work together to make this happen as fast as possible.  This means you can expect continued pressure to build smart networks.  How much financial support will be coming remains up in the air.
 
2.  Consumer access to their energy usage data in ways that allow utilities and/or third parties, with the customer’s permission, to help them make better decisions is now accepted pretty much everywhere in government.  Be prepared to house, move and ensure the privacy of enormous amounts of data.
 
3.  State regulators are really deferring to the Feds on cybersecurity.  The various federal agencies (i.e., DoE, DHS, and FERC) and the quasi-private regulatory groups (i.e., NERC, SGIP) are all very busy working on the problem, BUT there is far less coordination among these groups than there is in promoting grid modernization.  So, be prepared for more compliance requirements that may or may not lead to improved security.  Easing these burdens is a top priority for UTC.
 
The grid modernization policies are outlined in a White House report titled "A Policy Framework for the 21st Century Grid," formally issued by the National Science and Technology Council (NSTC).  The report enthusiastically focuses on the benefits of smart grids and grid modernization but does noticeably less to seriously address dynamic pricing, which most believe is essential to motivate consumers to avail themselves of energy saving programs, or cybersecurity.  The report can be found on the White House web site here:
http://www.whitehouse.gov/administration/eop/ostp
 
Despite my concerns outline above, I encourage you to download and read this report.  It is a very positive policy position that ultimately will be a great help to our industry’s efforts to modernize. 

It is with an enormous pride in our collective accomplishments at UTC that I announce my intention to move on.

I have today advised the UTC Board of my intention to resign as the Utilities Telecom Council’s President, and Chief Executive Officer and the process to select my replacement will begin shortly.   I expect that my successor will be in place in the next few months and that UTC will continue to provide the superb level of advocacy and service that it has become known for.   I have committed to the Board that I will do everything necessary to ensure a smooth transition. Read more »

All too often, I hear smart grid discussions started by someone suggesting that we really ought to come up with a definition for smart grids. Frankly, that makes me wonder how we ended up with so many people who claim to not know what smart grids are telling us what we should be doing about smart grids.

Seriously, if you don't know what smart grids are, either (a) be quiet and listen to those who do or (b) don't diminish what you do have to contribute to the discussion by highlighting what you don't understand about smart grids. Read more »

Cyber security will come to dominate all aspects of information communications technology at utilities in 2011 and 2012. I would love your ideas on what more UTC could do to help you with this.

The National Institute of Standards and Technology (NIST) has just released a final draft of its Smart Grid Cyber Security Strategy and Requirements. This will now drive future cyber security work at the North American Electric Reliability Corporation (NERC) on their Critical Infrastructure Protection (CIP) requirements in 2011. The NIST recommendations and political pressure from Congress will combine to force stronger cyber security protections in both the bulk power grid and the distribution grid. Read more »

The International Telecommunications Union has formally launched a smart grid standards focus group - FG Smart. Its first meeting will be held in Geneva, Switzerland, 14-16 June 2010. The scope of efforts includes:

* Identification of potential impacts on standards development;
* Investigation of future ITU-T study items and related actions;
* Familiarization of ITU-T and standardization communities with emerging attributes of smart grid, and
* Encouragement of collaboration between ITU-T and smart grid communities (hopefully including UTC, EUTC, UTC Canada, and APTEL).

More information is available on the web at http://www.itu.int/ITU-T/focusgroups/smart/.

I am a fan of watching Ted videos. They’re quick and – most of the time – mentally stimulating. Recently, I stumbled across two videos by online game developers that speak to important lessons we might, could, should, and may be forced to learn from gaming.

My wife is fond of quoting the old adage, "Patience is a virtue, find it if you can, seldom in a woman, never in a man." While I would argue that she has the precedence backwards, the point is accurate. There has been precious little patience these days; at least, so it would seem when it comes to smart control grid and smart metering projects.

Recent press reports are stressing the hard times that many "smart" technology companies have been facing as the roll out of smart grids projects have been slowed by procedural problems surrounding smart grid stimulus funding and worries over the possibility of mandated technical standards flowing from NIST's smart grid interoperability standards process. Folks, two things: (1) the wait is almost over; and (2) don't ignore the fact that many smart installations have continued throughout this process. To the former point, we know that stimulus contracts are being signed in increasing numbers. Order confirmations are not far behind. While the NIST process is not complete, it is fairly clear now where it is headed and which technologies will be anointed as winners. So, in the end, patience has been the virtue that is now being rewarded. Read more »

Check out the story on their web site at http://www.smartgridtoday.com