National Grid

M2M Communications helps to optimize the delivery of natural gas in New York City during periods of high demand or short supply.

An Overview

A web-to-wireless remote monitoring and control product combined with an automated Network Operations Center (NOC) and web site in Boise, Idaho helps the gas company to optimize their natural gas delivery. NYC operators use the Boise based NOC to switch groups of industrial and commercial customers from the gas network to on-site fuel oil based on outside temperatures and the currently available gas supply and demand. This “demand side management” process significantly reduces the total load on the city’s pipeline network and ensures adequate supply for residential and other critical customers.

The product also reports hourly gas meter readings and site status information.

The Need

As the population of a city grows, the demand for energy, such as electricity and natural gas may outgrow the capacity of the generation and/or distribution system. Despite the increased demand, it is often difficult to increase the supply. In an area such as New York City, parts of the distribution network of gas pipelines may be fixed in size and capacity. Yet the utility company is required to provide gas to all customers at all times, even when (especially when) the temperatures are very cold and the demand is at a peak. One solution is called Load Shedding or Demand Side Management. When a peak demand condition occurs, the utility can reduce their load by temporarily “shedding” or disconnecting certain large customers.

National Grid Energy Corporation (NYSE: KSE) is a part of National GRID, the second largest utility company in the United States, operating regulated gas utilities in the north east USA with over 3.4 million gas customers. In an effort to optimize the delivery of gas to their customers, National Grid and the Public Service Commission initiated a program where large users such as factories, schools, government buildings, and hospitals can be temporarily removed from the distribution system. As part of their rate plan, these customers agree to maintain a sufficient standby alternate fuel (oil) to utilize in the event that transfer of fuel sources is required, and also to install dual fuel heating equipment.

The Solution

In 2004, National Grid began a search for one vendor to design and manufacture a product that would replace all existing control and meter reading equipment for these “interruptible” customers while at the same time enhancing their operational capabilities. This project envisioned the modification of large commercial and industrial sites located in New York City (Brooklyn, Queens, Staten Island, Rockaway, etc) and Long Island. To accomplish this, M2M Communications Corporation of Boise proposed a combined Fuel Selection Module (FSM) / Automatic Meter Reading (AMR) system with numerous real time features and the latest in two-way wireless cellular connectivity for command and data transmissions. In a pilot program that included the winter heating system of 2004-2005, National Grid selected four different vendors to design, build and demonstrate prototype devices at five sites each in New York City and Long Island. These units were required to provide remote switching of fuels, accurate meter readings with hourly consumption data, and confirmation of all commands received via a secure website. The performance and accuracy of all units was tested for the duration of the heating season. Based on the performance results during the pilot test, National Grid selected M2M Communications to design, manufacture, and manage a minimum of 5000 units. The installation of these units began in February of 2006.

The fully automated M2M Communications Network Operations Center and web site located in Boise (www.M2MComm.com) provides the overall system intelligence to conveniently manage all interruptible customers from one coordinated location. The M2M system is a fully integrated and optimized product that allows the user to select any individual unit (customer site) or any combination of units, i.e. “all customer sites on Long Island on gas main #434 except hospitals”. With the click of a mouse button, the operator can send hundreds of cellular commands, shifting the selected users from gas to oil. Within seconds, all units will carry out the request and respond with a positive acknowledgment.

In addition, the individual field units provide numerous daily benefits. They each transmit a report every night providing the utility with detailed hourly meter readings and status reports. These reports are used extensively for network planning and analysis purposes as well as for actual customer billing. Each unit can also automatically switch its customer site to an oil or gas fuel source based on the measured site temperature, report all AC power outages and restorations, save (back up) all meter readings inside the unit for up to a month with or without AC power and then send those readings upon request to the Network Operations Center in Boise. An easy-to-use local configuration program facilitates the installation and verifies the wireless communications.

The product development phase is now complete and the product deployment is in full swing. By the end of 2007, over 2500 units have been installed by National Grid technicians. The Demand Side Management concept is a truly valuable service that can benefit every utility and their customers, whether gas or electric as they strive to maintain quality service for more customers without building more power generation or distribution systems.

M2M Communications is currently actively involved in field tests with other utility customers. For more information, please contact us at 208-947-9500 or at info@m2mcomm.com.