The benefits of implementing distribution automation and system monitoring in the open electricity market

In the new business environment, rates for monopoly distribution services (wires), regulators are trying to create a balance between the dollars paid by the consumers and rate of return that the shareholders are allowed to earn. The regulator in Ontario has implemented "performance based regulation" (PBR) to regulate the "wires" part of the distribution system. In PBR, quality of services provided to the customers are considered as one of the performance measurement criteria. Distribution automation and system monitoring are the ways that electric utilities will be able to create innovative ideas for better customer services, improve reliability, defer capital investment and improve system operation. The authors describe the impact of deregulation of electricity utilities on electricity rates and conduct economic analysis to show the benefits of implementing distribution automation and system monitoring in the distribution system planning and operations. In recent years, more and more SCADA, IED and fiber optics have been installed in distribution systems to improve system operation, customer services and generate additional revenue. This paper also describes a planning process for implementing distribution automation. The planning process of distribution automation includes planning strategies, justification of distribution automation functional projects and identification of distribution automation projects. The paper emphasizes on the distribution automatic switching and utilization of integrated communication networks.