CREATING A

SMART CITY
ROADMAP FOR
PUBLIC POWER
UTILITIES

1 CREATING A SMART CITY ROADMAP FOR PUBLIC POWER UTILITIES

CREATING A
SMART CITY ROADMAP FOR
PUBLIC POWER UTILITIES
Report written and prepared by

© 2018 American Public Power Association

www.PublicPower.org

Contact MediaRelations@PublicPower.org or 202.467.2900.

The American Public Power Association is the voice of not-for-profit, community-

owned utilities that power 2,000 towns and cities nationwide. We represent public
power before the federal government to protect the interests of the more than 49
million people that public power utilities serve, and the 93,000 people they employ.
Our association advocates and advises on electricity policy, technology, trends,
training, and operations. Our members strengthen their communities by providing
superior service, engaging citizens, and instilling pride in community-owned power.
TABLE OF CONTENTS

I. DEFINING SMART CITIES AND THE ROLE OF PUBLIC POWER UTILITIES.........................5

INTRODUCTION..............................................................................................................................................5
WHAT IS A SMART CITY?.............................................................................................................................5
THE ROLE OF PUBLIC POWER UTILITIES IN SMART CITY................................................................7
SEEING THROUGH THE BLUR OF TECHNOLOGY................................................................................8
WHERE DOES THE PUBLIC POWER UTILITY FIT IN?..........................................................................9

II. BECOMING PART OF THE SMART CITY CONVERSATION........................................................11

III. SECURITY PLANNING.................................................................................................................................12

IV. WHAT STEPS MUST UTILITIES TAKE?...............................................................................................14

V. BUILDING THE ROADMAP........................................................................................................................15

VI. SUPPORTING THE UTILITY OF THE FUTURE AND SMART CITIES.......................................16

WHAT DOES THE PUBLIC POWER “UTILITY OF THE FUTURE” LOOK LIKE?..............................16

APPENDIX
SPOTLIGHT ON CPS ENERGY SMART CITY INITIATIVES.................................................................17
SPOTLIGHT ON SMUD ENERGY SMART CITY INITIATIVES.............................................................18
I. DEFINING SMART CITIES AND THE
ROLE OF PUBLIC POWER UTILITIES

INTRODUCTION efficiency with the mission of improving

customer experience and benefiting the
Advancements in connected technologies, community at large.
particularly communications networking and the
Internet of Things (IoT), have transformed our WHAT IS A SMART CITY?
lives and business. Across the board, industries
are undergoing digital transformation, and the To begin to scratch the surface of what a smart
utilities industry is no exception. This city is, it’s critical to fully understand the term
transformation is happening on a macro scale as “smart.” The term has come to be known as the de
an industry, and on a micro scale at the utility facto label on all things digital. Nearly anything
level. with wireless connectivity has been labeled
“smart.” That’s because new technology enables
With the wide deployment of advanced users to collect and track vast amounts of data in
meters throughout the country, utilities now real-time. This data is then used to help businesses
have their own platform by which they can make “smarter” decisions. Yet, data collection and
design future applications and programs. data application are not always in sync. Just
Grid modernization is often discussed in terms because one has data does not always mean that
of automation and security — how will the they know what to do with it. For example, many
utility of the future leverage new technologies to utilities are still grappling with what to do with the
enhance grid resilience, integrate more vast amounts of data coming in from advanced
distributed energy resources, and improve metering infrastructure (AMI).
customer experience? In addition, what role will So, when we define the term “smart city”,
the utility play in smarter cities, with its critical particularly for utilities, we must consider the
infrastructure and services at the core of city essential meaning of the word smart — to have
operations? knowledge or intelligence1 — with the modern
As the leading resource for public power utilities term, which has come to mean data-driven and
nationwide, the American Public Power connected. In this paper, we will define smart as
Association is guiding its members through this the intersection of digital with intelligence. Smart
critical digital transformation process by laying city, therefore, will refer to a city that leverages
out this roadmap for the Utility of the Future in digital connectivity and data analytics to drive
smart cities. This roadmap is derived from the intelligent decision making.
essential mission of public power utilities to Today, the definition of “smart cities” is not
provide safe, affordable, and reliable electric universally agreed upon. It can refer to a city that
service to its communities, and is developed as focuses on carbon reduction or is introducing
part of the Association’s Public Power Forward electric vehicles. It could also refer to a city that
initiative. has implemented municipal Wi-Fi or integrated
This paper offers guidelines and recommendations solar and distributed energy resources. Cities
for public power utilities, while recognizing that across the globe that do any one of these things
each utility is as unique as the community it serves. define themselves as smart.
While each path towards smart city may be An article from September 2018 that
different, the fundamental goals are the same: to identified the top 10 smart cities in the world
leverage the latest technologies and business called out
practices for improved operational and energy
1 Merriam-Webster Dictionary; Oxford English Dictionary
5 CREATING A SMART CITY ROADMAP FOR PUBLIC POWER UTILITIES

Amsterdam for its advancements in urban A good example is CPS Energy, a public power
planning, while recognizing Vienna for excellence utility based in San Antonio, which has been
in green energy for having its southern districts working with city leadership and other partners
100% dependent on renewables since 2015.2 to develop a strategic plan for the community,
Closer to home, Boston is recognized for its called SmartSA. CPS Energy is leading the
emphasis on public management systems and conversation around how the utility and its
advanced business ecosystems as well as its high- partners can bring new efficiencies into the
speed Internet. The article argues that “since community.
transport and mobility can’t be easily adjusted, it is
According to Paula Gold-Williams, CPS Energy’s
connecting its citizens through more technological
President and CEO, there is a direct connection
efforts.”3
between the smart grid and smart city
The point here is that each of these cities conversation.
leverages technology to address specific
community needs, and these communities are “Since 2014, CPS Energy has been
vastly different. But all of these cities have implementing our Smart Grid Initiative—a
embodied the holistic term “smart” to apply major upgrade to our electric and gas grid
technology to solve unique problems for its that supports reliability, boosts efficiency
residents. and reduces costs. The new mesh network
As a public power utility, this definition of smart is fully operational, and we are now 100
city is the fundamental stepping stone to building a percent complete with the project goals.
roadmap into the future. There will always be “We are also committed to meeting with as
newer technologies, faster Internet speeds, more many different partner entities involved in the
efficient transportation models, etc. Yet, taking the smart city dialogue…We want to learn and
first step to identify the needs of the community is leverage opportunities to position of our
the foundation for a public power company’s smart community, so we can bring new efficiencies,
city roadmap. offer new products and services, and improve
The reality is that many utilities identify the quality of life in our community.”4
smart city initiatives as the next phase of
smart grid efforts, piggy-backing on AMI
investments and deployments.

2 Spiro, James. “Top Ten Greatest Smart Cities in the World,” Editor’s Choice, September 8, 2018.”
3 Spiro, James. “Top Ten Greatest Smart Cities in the World,” Editor’s Choice, September 8, 2018.”

4 Correspondence from CPS Energy, Jonathan Tijerna, October 11, 2018.

CREATING A SMART CITY ROADMAP FOR PUBLIC POWER UTILITIES 6

The Association recognizes the unique role of Public Power Forward initiative is
public power utilities in smart city efforts. The designed to help public power utilities
 prepare for a new era in electricity.5 The Public According to Sacramento Municipal Utility
Power Forward initiative helps public power District (SMUD), an APPA member and public
utilities to address changing customer preferences, power utility in Sacramento, California:
rate design considerations, technologies, regulation,
and market forces.6 “Participating in the City of Sacramento’s
In this spirit, APPA is defining a smart city in this programs is a reflection of SMUD’s vision
white paper as a city that betters the lives of statement—to be the trusted partner with our
residents and businesses through mindful customers and community, providing innovative
investments and deployments of advanced solutions to ensure energy affordability and
technologies. Specifically, these efforts can reliability, improve the environment, reduce our
improve energy efficiency, reduce carbon region’s carbon footprint, and enhance the
emissions and improve reliability and customer vitality of our community.”7
service.
SMUD’s participation in Sacramento smart city
These advanced technologies may include
initiatives include 5G collaboration, green
advanced network communications, adoption of
transportation solutions and clean grid initiatives.
IoT and applications, and the integration of
distributed energy resources that will provide “With SMUD’s clean grid, electricity reduces
communities with improved automation and meet greenhouse gas emissions by 70% right off the bat
low carbon emission goals. versus fossil fuels, and we are developing new
ways to bring 100% renewable electricity to the
THE ROLE OF PUBLIC POWER transportation sector which will further reduce
UTILITIES IN SMART CITY emissions and promote sustainability,” said Bill
As we begin to understand the fabric of what Boyce, SMUD Electric Transportation Manager.
makes a city smart, the question becomes, what According to CPS Energy, through their partnership
role does the public power utility play in the with New Energy Economy Partners, the utility
design of smart cities? is leveraging low carbon and renewable energy
As the provider of electric services to more than resources to stimulate economic and educational
2,000 towns and cities, public power utilities are development within the community.8 This is being
the cornerstone of more than 49 million peoples’ achieved through a number of key activities
lives in the United States. This power fuels baby including deploying smart meters, rebalancing its
monitors and life-saving medical equipment, portfolio towards natural gas and renewables
keeps homes warm in blizzards and the lights on (including a commitment to use 20% renewables
during hurricanes. It keeps cars moving, by 2020), and committing to a strategy that will
restaurants open and our first responders equipped reduce power plant emissions by tens of
to do their job. It is by understanding the critical thousands of tons per year.
role of the utility and how it intersects with all The appendix of this paper provides more
aspects of everyday life that we can fully detail on the smart city pilots and programs
appreciate the responsibility public power has to currently underway at SMUD and CPS Energy.
lead smart city initiatives.

5 https://www.publicpower.org/public-power-forward
6 https://www.publicpower.org/public-power-forward
7 Correspondence with Chris Capra, SMUD News Media Services, November 2, 2018
8 Excerpted from an interview with CPS Energy President and CEO, Paula Gold-Williams, October 17, 2018.

7 CREATING A SMART CITY ROADMAP FOR PUBLIC POWER UTILITIES

SEEING THROUGH THE BLUR investments that transform and better a community and its
residents, then the focus can shift to the technology that
OF TECHNOLOGY
makes this transformation possible.
If one agrees that the first step for public power
utilities is to recognize the importance of
For utilities, the foundation of smart cities and a power utility is owned and governed by citizens
more connected, automated future, is the grid of the community, it is only natural that these
itself customers be the focus of benefits and
— the “smart grid.” Utilities that have deployed technology investment.
AMI and can now connect to customers in real
For public power utilities, this means asking,
time have a platform and means of collecting
“Will this investment improve the community and
important data. This data provides insight into
the lives of the people in it?” Going back to the
load management and energy usage patterns. But
original definition of “smart,” it also means asking
smart grid infrastructure extends past AMI into
if each technology decision is an intelligent and
automation and resiliency. Utilities are already
meaningful investment for customers and the
feeling the challenges of grid transformation,
community.
from resource planning to ongoing maintenance
and support. As a public power utility, you must understand
your responsibility to the community to help
The question facing many utilities today is how
guide the decision-making process. Keeping
to take on more technology investments. What
customer benefits front and center is likely to
other technologies should utilities consider in
result in success, with both customers and
laying out a roadmap for a smarter energy future
stakeholders supporting your efforts.
and smart cities? What barometer should public
power utilities use to determine which The bottom line is that if the technology does not
technologies or applications to begin with? improve the lives of consumers, then the rationale
behind investment is undermined. This is critical for
The industry is already swarming with millions
public power utilities building the business case for
of applications and solutions providers offering
large-scale technology transformation. In an
up answers to smart city adoption. Because the
environment governed by community stakeholders,
public
the technology experts building the roadmap for
a smarter future must be able to articulate the
technology investment for customers—residential,
commercial and industrial. This will not only
dictate approval of such a plan and investment, but
assure the support needed to undergo business,
cultural, social and technological transformation.

CREATING A SMART CITY ROADMAP FOR PUBLIC POWER UTILITIES 8

WHERE DOES THE PUBLIC Third party service providers are all
throwing their hats into the smart city ring,
POWER UTILITY FIT IN?
 seeing an opportunity to monetize the smart city There is risk for public power utilities not actively
transformation effort. engaged in smart city conversations. These risks
Many of them are willing to work with public involve outside parties lobbying local government
power companies to develop new technologies for new infrastructure guidelines and business
and services. But this investment, which is critical strategies that may interfere with the day-to-
to advancement of smart cities, is challenged by day operations of the local utility. For example,
the limited funds available through local telecommunications or cable companies are
government efforts. building new wireless networks or municipal Wi-
According to the “Smart Cities Financing Guide,” Fi networks that can interfere with AMI.10
put out by the Smart Cities Council in conjunction Collaborative partnerships and communicating
with the Center for Urban Innovation at Arizona with local government can mitigate these types of
State University, smart city initiatives face major risk. Therefore, SMUD’s partnership with the City
capital challenges. According to the report, the of Sacramento on 5G made sense, as there was a
projects can expect to be funded through a mixed
common need and synergies.
bag of investments including “Government-based According to Bobbie Harris, SMUD Grid Planning
financing tools, development exactions, public- and Operations Senior Project Manager, “SMUD
private partnerships, and private fund leveraging worked collaboratively with the City of Sacramento
options.”9 to allow the City to directly connect small cells into
The Association sees this overall industry challenge their own wiring, while SMUD took care of wireless
as an opportunity for public power utilities. Already carrier billing. Due to this innovative arrangement, it
the heartbeat of their communities, public power assisted the City of Sacramento to quickly deploy 5G
utilities are well-positioned to understand where assets and become one of the first cities in the US to
cities need to go and how to take them there. The offer 5G Internet services to customers.”
advantages to helping design the roadmaps for their CPS Energy’s partner engagement is another a good
own communities are: example of how close coordination with stakeholders
is coupled with the desire to explore new products
■■ Control over strategic decisions in planning and services. The utility meets monthly with the city
■■ Reduced risk of monetary opportunity loss of San Antonio to discuss planning and product pilot
■■ Reduced risk of core business loss opportunities under the SmartSA umbrella.11
■■ Improved operational benefits to public Recently, the utility established “innovation zones”
power utility where they can identify throughout various parts of the community that Gold-
synergies between grid modernization Williams said serve as “a real-world testing ground to
efforts and multi-use applications of pilot smart city technology.”
existing technology investment
■■ Potential for seeking out future Another risk for utilities not engaging with the
investment channels once utility public and private sector on smart city initiatives
blueprint and core direction is designed is potential restriction from future business
models. Therefore, public power utilities need to
engage in conversations early in the process to
make sure there is proper coordination, as well
as to ensure their interests are not superseded.

9 Burst, Jesse. “Smart Cities Financing Guide.” Developed by the Center for Urban Innovation at Arizona State University.
10 PG&E’s final Electric Program Investment Charge (EPIC) report references the specific challenges of the states that the utility “does not have
technology to continuously monitor, analyze/diagnose and identify RFI that may impact the 400 MHz, 900 MHz, and 2.4 GHz AMI networks. This is a key risk and
obstacle as network utilization grows and the need for monitoring communication paths and identifying radio communication interferences becomes more time and
cost pressuring.”
11 Excerpted from an interview with CPS Energy President and CEO, Paula Gold-Williams October 17, 2018

9 CREATING A SMART CITY ROADMAP FOR PUBLIC POWER UTILITIES

One area of contention and competition is the smart home programs. These new in-home set top boxes
smart home. While it is common for utilities to or communications lines may interfere with expensive
offer demand response or smart thermostat AMI investments. These products also compete with new
programs, it is entirely possible that the local electric infrastructure in the city. Whose pole goes in
communications providers have competing where and what will be connected to it?
Of course, there is the continued debate around
who will own and monetize electric vehicle
infrastructure and how much can be installed
without interfering with load patterns. A utility’s
dynamic pricing programs should also correspond
with electric vehicle mass adoption in urban areas.
In a smart city, all these factors must be
considered.
Again, SMUD, has been proactive in electric vehicle
discussions with the City and other stakeholders.

SMUD was instrumental in forming the

Sacramento Plug-in Electric Vehicle Collaborative
which brings all the electric vehicle stakeholders
together in the region to promote and plan for the
use of electricity as a transportation fuel. The
Sacramento PEV Collaborative includes: SMUD, not just in terms of electric, water, or gas service
City of Sacramento, County of Sacramento, delivery. That is because public power utilities,
SACOG, SMAQMD, Valley Vision, Universities along with all utilities, must tackle the daunting
and the Sacramento Electric Vehicle Drivers task of asking what they will look like in the
Association.12 future.
In a smart city environment, the public and private Innovation and forward thinking also play an
sectors must align, and stakeholders - sometimes important role in evaluating which new
with opposing interests - must communicate and technologies and applications that are central to
coordinate with each other. Given the role of local smart city planning. One example is how SMUD
government in the design of the smart city, the has taken part in Autonomous Vehicles in
public power utility must therefore play a critical Sacramento. By working with the City and other
role early on, well before the race for opportunity stakeholders, they are promoting Sacramento as an
among third parties begins. Autonomous Vehicle certification center.
According to Bill Boyce, SMUD Transportation
As the power utility is owned by its customers, it is
Manager, “Since many if not most of the
imperative that public power utilities shape the
autonomous vehicle concepts are baselining
vision for their service territories and their
electricity for the propulsion fuel, SMUD has a
customers’ experience. That means thinking about
natural role in promoting AV’s in our region. AV’s
the future of smart technology holistically—and
are at the heart of many advanced smart city
mobility concepts and we see this as a way to help
improve the Sacramento region into the future.”13
Again, as each public power utility serves a
different and unique market, determining which
innovative technologies make sense for their
smart city roadmaps will become a more
personalized decision. That decision, most likely
will be determined jointly by the utility, the City
and its relevant stakeholders.
12 Correspondence with Chris Capra, SMUD News Media Services, November 2, 2018
13 Correspondence with Chris Capra, SMUD News Media Services, November 2, 2018.

CREATING A SMART CITY ROADMAP FOR PUBLIC POWER UTILITIES 10

II. BECOMING PART OF THE SMART
CITY CONVERSATION

This paper began by talking about macro and these sources will become critical supporters, if
micro-transformation efforts necessary to not necessary allies in the smart city
advance smart cities. development process.
On the macro-level, the industry must unite in Where does the public power utility begin in
terms of identification of roles and responsibilities these dialogues? What key requirements must
in the smart city development process. This means they develop to facilitate these conversations
getting buy-in from leadership across the industry and ultimately change?
around defining the role of public power utilities in
To communicate on the micro and macro-level,
smart city advancement. It also means
section IV of this paper outlines an initial set of
communication as an industry with key
questions that can help lead these conversations
stakeholders at the national level to understand the
to a preliminary smart city blueprint. By creating
importance of public power leadership in these
a template for key criteria, The Association is
efforts.
helping public power utilities communicate their
Then, on an individual level, public power role and important requirements to national and
companies must determine what specific criteria local stakeholders as well as the community. The
make up our independent smart city blueprints. On template will also serve as a guide for the
the micro-level, stakeholder engagement is critical. development of internal processes at the public
Communications and planning with other key power utility to ensure a smooth transition into
infrastructure and service providers on the local the smart city future.
level will ensure that all paths are unified and
resources aligned. There is a strong chance that

11 CREATING A SMART CITY ROADMAP FOR PUBLIC POWER UTILITIES

III. SECURITY PLANNING

In the smart city ecosystem, public power As part of this effort, public power utilities can use
companies are inviting new strategic partnerships the separately created Public Power Cybersecurity
and new connectivity options into the traditional Scorecard, which assesses a utility’s capabilities and
utility network. With the introduction of advanced progress in the following domains:
metering and network-connected grid operations
devices (e.g., SCADA), as well as the overall ■■ Cyber Asset Inventory
adoption of wireless and Internet-based ■■ Configuration Baseline
connections into utility communications, security ■■ Access Control
has become front and center. How can utilities ■■ Vulnerability Management
open their minds and innovate without the risk of ■■ Threat Management
compromising this new ecosystem? ■■ Cyber Risk Management
As new complex digital ecosystems like smart ■■ Cyber Event Detection
cities emerge, utilities must consider cyber and ■■ Cyber Incident Response
physical security a top priority and assume these ■■ Operational Resiliency
consider-ations into its strategic plan. For this ■■ Monitoring Cyber System Activity
reason, the Association is authoring a separate ■■ Cyber Threat and Event Information
guide for public power utilities. The guide breaks Sharing
down security concerns into four critical areas: ■■ Supply Chain Risk
■■ Workforce Management and Cybersecurity
■■ Protection of utility assets
Training
■■ Detection against intrusion
■■ Cybersecurity Program Management
■■ Intrusion response
The Public Power Cybersecurity Scorecard can be found
■■ Recovery and return of system at www.publicpower.org/resource/cybersecurity-
to operation scorecard.

While physical threats to the utility may appear Detailing the best practices and methodologies
more overt, cyber threats offer an additional layer around utility cybersecurity far exceeds the space
of concern for public power utilities, particularly limited to this white paper. This topic should be
those considering smart city initiatives and new top of mind for utility leadership and the IT and
out-of-industry partnerships. All parties in these
security experts designated as part of the smart
partnerships need to be aware of cyber risks and
city project management office (PMO) proposed
in this white paper. The one thing to take away is
develop a culture of cybersecurity to protect the
that the smart city invites new partners into the
smart city ecosystem.
utility network and communications supply chain,
How do utilities prepare for the cybersecurity and these partner relationships must be underlaid
threats that are being introduced to new with trust and strong data sharing and security
complex smart city networks? processes in place, all while utilities protect the
The Association’s Cybersecurity for Energy privacy of customer information.
Delivery Systems (CEDS) program, funded An important consideration for utilities looking to
through a cooperative agreement with the adopt smart city models will be the allocation of
Department of Energy, helps advance cyber often limited information technology resources.
resiliency through security assessments, education, Recently there has been a trend within utilities to
outreach, and introduction of new technology. better align IT and operational technology (OT)
resources. As public power utilities digitally

CREATING A SMART CITY ROADMAP FOR PUBLIC POWER UTILITIES 12

transform and prepare to work in more complex think about technology and
connected environments, there is a greater need to connectivity holistically and improve
 collaboration between different IT and technology sharing with local, state and federal government
resources within the utility. This means not only agencies, there may be an opportunity to improve
including central IT in any kind of PMO, but also data sharing with new ecosystem partners as part
leveraging IT from other departments like water, of smart city initiatives. While information
public safety, transportation, etc. 14 sharing agreements are not uncommon from
utility to utility, smart city environments which
In the context of smart city, this is not only
invite in other sophisticated communications
important for security purposes but also to
networks (e.g., transportation and
better leverage innovation, resources and
communications) may also offer up an
synergies throughout the municipality.15
opportunity not just to accelerate a more
While today’s public power utility may already convenient and automated lifestyle, but hopefully
be conducting grid security exercises and a safer and more secure one.16
information
As public power utilities work through their
Christopher Kelley, PMP, Vice President, Beam Reach Consulting Group, LLC
smart city roadmaps, such partnerships and data
14

15 Christopher Kelley, PMP, Vice President, Beam Reach Consulting Group, LLC
sharing plans should be critical parts of the
16 Christopher Kelley, PMP, Vice President, Beam Reach Consulting Group, LLC
conversation.

13 CREATING A SMART CITY ROADMAP FOR PUBLIC POWER UTILITIES

IV. WHAT STEPS MUST UTILITIES TAKE?

It is time to break down what, specifically, public The first step in the development of the smart city
power utilities must do to engage and lead the roadmap for public power utilities is to answer the
smart city conversation. following questions that identify critical information:

PEOPLE, STAKEHOLDERS AND PROCESSES

1. Which person at the public power utility is best poised to lead the smart city effort (CEO, CTO, CIO)?

a. Person must have control over people and processes d. Is this the same person that will manage internal and external
at the utility relations?
b. Person must have strong leadership and e. Can this person create and manage a project management office?
management skills
c. Person must have strong stakeholder
communications skills
2. What does a smart city project management team or project management office look like?

a. Project lead (Reports to CEO, CTO or CIO d. Communications support – to develop public-facing materials and manage
depending on size of utility) public relations as necessary
b. Process lead – responsible for development of e. Representatives from energy efficiency, grid modernization, IT
schedules and core functions and processes security, fleet management, reliability, security, metering, customer care
c. Regulatory/stakeholder contact – who can manage and innovation
external communications with key stakeholders

3. Identify the external stakeholders this group needs to engage and ask the following questions:

a. What does that engagement look like? c. How frequently are they engaged?
b. Is this a formal engagement or informal? d. What level of engagement is recommended and when?

MATERIALS

1. What materials must be developed to support the project management office and smart city efforts?

a. Smart city mission statement with goals as identified e. Initial projected timeline by phases
by utility that align with grid modernization efforts This is a living document that starts with the utility’s
b. Identification of clean energy and reduced carbon operating plan and budget and then is reviewed by
emission goals the project management office to overlay smart
c. Identification of key stakeholders in the community city considerations
necessary to advance efforts f. Outline of project costs and funding plan
d. External communications plan to support community g. Identification of key milestones and metrics for the next 5-10 years
buy-in
OPERATIONS: KEY IMPACTS

1. What are the key considerations across the utility for smart city activity?

a. Identify top security concerns and process for d. Identify current synergies in disaster response policies and new areas
development of smart city security plan for consideration
b. Identify areas within current energy efficiency group that e. Look at overall goals of smart city and see where the utility can
map well to goals of smart city project. Identify exploratory future contribute in areas of lifestyle and convenience (in current service territory)
programs that may align with strategy f. Identify key utility goals for operational efficiency and consider what
c. Identify key areas of automation that are currently part of smart city actions can help facilitate these goals
grid modernization efforts and any alignments with smart city g. Identify what accounting and financial efficiencies may be achieved
model; Identify opportunities to leverage current and future through smart city efforts
infrastructure for smart city efforts

CREATING A SMART CITY ROADMAP FOR PUBLIC POWER UTILITIES 14

 V. BUILDING THE ROADMAP

Now that the public power company has and to stakeholders the public power
assembled the information necessary to start company’s smart city plan.
developing a roadmap, it can begin to think about
It is important to remember what was said in the
an outcome and the path to get there.
beginning of this paper: Smart is the intersection of
Below is a proposed “map” to begin laying knowledge and connectivity, and the public power
information down into a shareable internal and utility should focus on the customer. How will the
external document to help communicate internally utility make their lives and their communities better
smart technology investments and applications?

UTILITY GOALS (EXAMPLES): CUSTOMER – WHAT DO THEY WANT NOW

■ Operations ■ Energy
AND IN THE FUTURE (EXAMPLES):
■ Business Efficiency ■ Security ■ Leisure/
■ Customer Care ■ Security ■ Ease Entertainment
■ Reliability ■ Choice ■ Access (to
■ Convenience everything)

CITY GOALS (EXAMPLES):

■ Operations ■ Reliability
■ Business ■ Energy Efficiency
■ Customer Care ■ Security

COMMON GOALS (CUSTOMER CENTRIC)

CURRENT
SYNERGIES WHAT ARE WE ABLE WHAT COULD WE
INFRASTRUCTURE CONTROL OF (WHAT ARE WE DOING TO DO IN THE NEXT DO BEYOND THAT
ASSETS SERVICES NOW THAT FEELS 5-10 YEARS? TIME FRAME?
SMART CITY)

Create a high-level timeline with current and future deliverables. This timeline should overlay the grid modernization plans of the utility with
the other factors including customer needs/expectations and city goals.

Once this has been roughly thought through, the next steps are to:
1. Summarize this into a few slides to share externally
2. Identify other companies, partners, and service providers can help build this picture
3. Begin to share the story
4. Seek out support financially and through regulations where needed
5. Summarize and highlight customer benefits on dedicated slides
15 CREATING A SMART CITY ROADMAP FOR PUBLIC POWER UTILITIES
VI. SUPPORTING THE UTILITY OF
THE FUTURE AND SMART CITIES

WHAT DOES THE PUBLIC to take to evolve and become critical components
POWER “UTILITY OF THE of smarter cities. But, one size does not fit all.
FUTURE” LOOK LIKE? Each path forward will be unique – focused on
the people and communities they serve.
Across the industry, utilities are considering how
to define the Utility of the Future. Yet, there are no As utilities begin to undertake the task of leading
standard guidelines or recommendations for smart city development, they must consider that
utilities to set a future path. However, some they are already in this role. As owners of much
aspects of the utility of the future are definite. of the supply and demand for cities and towns
around the country, public power utilities are
■■ The future is smart, and the utility must helping to lead grid transformation efforts. It is
be as well not a stretch to think how these efforts will impact
■■ The grid should evolve to adapt to other facets of society, particularly when you put
changing technology the customer in the middle of the conversation.
■■ The electric utility industry is
undergoing digital transformation The Association supports public power utilities
■■ Future utility leaders and customers as they undergo their individual and collective
expect technology to drive convenience transformation to utilities of the future and
■■ Customers are playing a more critical role leaders in smart city efforts.
in shaping the utility of the future –
This roadmap serves as a first step in educating
because they can
public power utilities as they begin adopting smart
■■ Technologies and applications will disrupt
city programs. The Association will continue
the current environment and utilities must
be prepared to embrace them to work with its members to provide additional
resources on smart cities, including webinars and
■■ The digital age is causing unprecedented
challenges and opportunities for the other opportunities for public power utilities to
electric grid and the grid must adapt share insights and lessons learned. Public power
has always been at the forefront of promoting
These themes will shape how public power utilities change in the electric industry, and the Association
begin to define what the Utility of the Future. It will will work with its members to facilitate that
also help utilities understand the steps they need change and development in the future.

CREATING A SMART CITY ROADMAP FOR PUBLIC POWER UTILITIES 16

 APPENDIX

CPS ENERGY LONG TERM STRATEGY AND PILOT OVERVIEW

According to CPS Energy, in addition to their SmartSA efforts described in the paper, they are also having a
public discussion around our Flexible Path. The Flexible Path is a new look at power generation planning
for the community. CPS Energy explains as follows:
According to Paula Gold-Williams, CPS Energy’s President and CEO, being proactive about leveraging new
technology is central to the utility’s vision for the future. “Traditionally, as our community grew, we would
build generation for it. Looking forward, we want to implement new strategies around embracing and
enabling new technology while leveraging our community owned generation assets to achieve a future with
more renewables and new technology like energy storage.”17
Below is a list of what some of their current pilots look like.
Microgrid at Joint Base San Antonio-Fort Sam Houston. The microgrid generates and
releases energy, as needed, by pairing solar systems with battery storage technology.
Air Quality Data Collection. CPS Energy is collecting ozone and weather data from six stations in Bexar,
Comal and Guadalupe counties previously maintained by the Alamo Area Council of Governments (AACOG).
By combining the six stations with the two stations CPS Energy currently maintains, the region will get
efficiencies while still maintaining the quality and integrity of the data.
Solar Host Program. A no-cost solar program where PowerFin, a CPS Energy partner, installs a rooftop
solar system on a customer’s home at no cost. The customer then sells the generated power back to CPS
Energy, resulting in a 20-30 percent savings for the customer.
LED Streetlights. Current pilot project in one of San Antonio’s City Council districts. The new LED
solution is giving control to park administrators, so they have the ability to reduce and raise the LED output.
This is a great public safety initiative, while also reducing costs and electricity generation.
Solar & Energy Storage. Ground breaking for this project was October 8, 2018. In partnership with
Southwest Research Institute, this will be a first of its kind project for our region as we will use renewable
power (solar) with battery technology to supply generation during high energy use time during the day.
Electric Vehicles. We currently have 150 level 2 public chargers throughout our community. Additionally,
we are in the process of creating a new pricing signal for 3rd party vendors looking to install EV super
chargers to enable the adoption of electric vehicles.
17 Correspondence from CPS Energy, Jonathan Tijerna, October 11, 2018.

17 CREATING A SMART CITY ROADMAP FOR PUBLIC POWER UTILITIES

A LOOK AT SMUD’S CURRENT SMART CITY PROJECT PARTICIPATION 18
The City of Sacramento’s Smart City program is a collection of projects and policies that the City has
identified as “the opportunity for information and technology as a tool to provide services its citizens:
including accessibility, affordability, choices, coordination, and efficiency.”
Whether part of the City of Sacramento’s Smart City program or projects and policies of any of their local
agencies partners, SMUD staff offers expert background information so that the community and customers
can embrace a sustainable low-carbon future while still balancing affordability, reliability and customer choice
in their electric service.
Below is a list of ways SMUD works regularly with the City of Sacramento on smart city initiatives.

■■ Developed application and billing processes to allow for wireless small cell devices to be mounted
on unmetered city-owned street lights;
■■ Provides 13 megawatts of solar power for the City buildings through the SMUD SolarShares
program; ■■ Provides solar-power programs and energy efficiency operations at the Golden 1 Center;
■■ Provides energy efficiency programs and incentives for community residents and
businesses; ■■ Offers plug-in electric vehicle charging incentives;
■■ Promotes the city’s use of electric vehicle fleets through pilot programs and charging
infrastructure incentives;
■■ Serves as a resource for development of curbside electric charging ordinance language now
being prepared for city council review;
■■ Supports infrastructure development for electric buses for micro-transit and commuter use;
■■ Offers expert reference support on development streamlined building permit checklists for rooftop
solar and for electric vehicle charging; and
■■ Acts as resource on autonomous vehicle testing programs being considered by the City.

18 Correspondence with Chris Capra, SMUD News Media Services, November 2, 2018

CREATING A SMART CITY ROADMAP FOR PUBLIC POWER UTILITIES 18

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