Alliance Foursome Partners on SEP2 Interoperability Effort

Egan: One of the goals is to develop a common set of testing plans and criteria so that uniformity and interoperability are maintained. As many times the transceiver technologies transport IP messages transparently, there may be little needed by way of modifying the standards they work in accordance with. But, as HomeGrid is focused on the smart grid as an ecosystem enabled by G.hn, we look above the G.hn transceivers and consider what will help the market and foster research and interoperation in the grid using G.hn-based systems, so we may come out with guidelines for HomeGrid members to assist them in ensuring SEP2 compliance at the system level. When will interoperability/certification testing commence? Egan: This has not been determined but. We [planned to] have a conference call [in late August] to begin working at the same time, laying out ground rules and goals, as then as defining how other alliances can join the consortium, as we wish to be fully open to all that support the transport of IP for the smart grid. The smart grid has been slow to take off in the U.S. Why, and what else is being done to move it forward? Egan: There are many opinions on this. The rush to get government funding did provide a substantial boost, but at that time reality set in and many utilities and their suppliers realized that a lot of infrastructure work in back office systems, distribution automation, and AMI communications were required. The early deployments highlighted the lack of interoperability and the immaturity of some concepts, with refurbishments needed. This is not a typical utility activity, to install a meter and next have to go back afterwards a relatively short period and either replace it or upgrade it. [Neither] their pricing structures nor their manpower projections take this into account. Once some found they had to take steps to go back to recently installed meters, they decided to slow down their processes with regard to this matter to allow the research time to catch up to the evolving requirements. Furthermore, some technologies that have great value in the smart grid are only now coming on line, just as G.hn. With G.hn able to support smart grid activity in the home, between EV and charger, from AMI meter to head end and for distribution automation, the wait is so then worth it. On top of G.hn's powerline mode handling all this, G.hn extends the ability of SG messaging to other wired mediums also, just as twisted pair, telephone lines, and coax cable. This actually extends the options for providing a ubiquitous smart grid presence in the home, office, or utility distribution plant.

You mentioned that the basic business model for utilities is as well an issue here. Explain. Egan: To have government approach a utility that has its rate calculations, when all is said and done its profit, dictated by its capital expenditures and its rate base, and instruct them to begin planning for lower consumption and no new construction, this is contrary to the profit focus for the utility. In a word, new rules need to be considered in this area so that utilities are focused on providing low-cost energy with as little carbon footprint and minimal capital expenditures over time. We can understand that utilities may move slowly, as replacing meters is expensive and they may be using these new meters to reduce their income, when all is said and done the meter expense itself may not be covered much less ongoing operational expenses.