CASE STUDIES 46 CASE STUDY IV – GRID MODERNIZATION PLAN PUSHBACK Duke Energy – Process for integrating underground conversion into grid modernization initiative. (Note: Relatively new program that is potentially larger than the current Dominion program.) CHALLENGE How to align grid modernization efforts in NC and FL. In NC, Duke Energy advanced an ambitious $20+ billion conventional build-out of T&D assets and gasfired generation. A rate recovery for $13 billion “Power/Forward Carolinas” T&D modernization and resiliency project with both hardening and undergrounding strategies was proposed. The request was denied by the North Carolina Utilities Commission (NCUC) in June 2018. In the rejection order, Duke was invited to utilize existing proceedings (Integrated Resource Planning and Smart Grid Technology Plan dockets) to propose grid modernization plans to the NCUC. Parts of those plans could closely align with elements of the original Power/Forward Carolinas plan, while not directly citing the initiative. In Florida, a Targeted Underground (TUG) program began in 2018 and has met less resistance. SOLUTION Duke’s initial NC plan included $7.8 billion over 10 years for its grid. Duke settled for a lesser amount of $2.5 billion for a three-year pilot. The spending will include line/tower hardening or undergrounding in hurricane-prone areas, voltage optimization, electric-vehicle charging infrastructure and energy storage deployments. It still needs approval from the NCUC. In NC, select undergrounding of wires for enhanced reliability formed the core pillar of the utility's original plan, and five demonstration projects totaling $50 million were approved. Duke can still pay for the routine upgrades as it normally does, outside of the new payment vehicle. In FL, Duke analyzed its worst performing overhead circuits and discovered that particular segments incurred five to ten times more events per mile than its best performing segments. Upon closer examination, it was determined that undergrounding radial taps would produce the most beneficial improvement, so these areas received the highest priority. These line segments became part of the Targeted Underground (TUG) program. RESULT Duke NC committed to installing 300 megawatts (MW) of energy storage by 2026, with 200 MW arriving by 2023. The utility had already included storage in its integrated resource plan, but this enlarges the capacity considerably, and ranks among the larger commitments in any state. A total of $25 million is dedicated to electric vehicle charging infrastructure. In FL, the TUG program to date has shown a potential 37% decrease in avoided interruption minutes during recent hurricane activity in areas of the traditional Duke Energy service territory. REFERENCE CONTACT Kenneth McCraw, Project Director – Targeted Underground Program, Duke Energy, Kenneth.McCraw@Duke-Energy.com Brian York, Public Engagement Specialist – Targeted Underground Program, Duke Energy, (727) 8204511, Brian.York@Duke-Energy.com SOURCES #198, #204, #208, #209, #210, #212
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