EET&D – What does grid transformation mean at GMP?

MP – We are so excited at GMP to radically transform the existing energy system. We see it as necessary. I have spent 18 years in the energy business, and GMP is in a pivotal and important period of transition. Our passion around this transformation is two-fold: we want to help Vermonters dramatically reduce dependence on carbon, while at the same time, earn our way into new energy relationships with our customers to help transform the grid to drive down cost pressures.

EET&D – There is a lot of discussion on grid transformation, when did you realize that change was needed?

MP – In 2006, we launched a new energy vision to reduce carbon in our power supply. That was the first step, and now we are 60 percent renewable and 90 percent carbon-free. Our energy vision has evolved, and today the focus is on leading the transition from the traditional grid of the past, to one that is more resilient and reliable, using energy generation and innovative storage solutions paired together. This will empower customers and provide key ways to drive down costs of the antiquated bulk grid system.

EET&D – What do your customers think about this?

MP – Our customers tell us that they want energy that is low cost, low carbon, and highly reliable. At the same time, our customers are partnering with us to transition from the traditional bulk grid to an energy system that is home-, business-, and community-based. As new technologies continue to emerge in the energy market, our customers are showing us they are interested in generating their own clean power, and storing it too, while sharing access to their energy resources (including heating, cooling, and vehicle charging), in order to enable better grid outcomes that drive down costs for all.
 

EET&D – That kind of change isn’t easy. How do you go about that?

MP – It starts with culture. I always say culture eats strategy for breakfast. You can have all the best ideas, but if you don’t have the right culture to implement them, not enough will happen. We talk about being customer-obsessed at GMP. What that means is ensuring that customers have a good experience and employees are empowered to make decisions. We eliminated layers of bureaucracy to run a flat organization that moves quickly to deliver these innovations to customers.

EET&D – Let’s talk about solar and storage. That seems to be a key part of your approach.

MP – It is. Battery storage is a core part of our service now and of our strategy in the future. In the last decade, research and development in battery storage technology has grown exponentially. There have been breakthroughs in larger scale batteries that have the capacity to store large amounts of energy for several hours, and then release it onto the grid on command. This technology is already delivering early benefits in Vermont by driving down the cost of the bulk grid and creating the ability to deliver energy that is clean, cost-effective and reliable.

Storage is helping to integrate renewables and smooth their uneven output, providing “islanding” ability that can serve as backup power during outages, and reduce costs for customers through peak shaving, energy arbitrage, and other ancillary services. For example, by deploying the 3.4 MWh of battery storage at our 2MW Stafford Hill solar project in Rutland, GMP saved customers more than $180,000 in a single hour – and also provided customers with over $150,000 of value through participation in other ISO New England ancillary markets.

EET&D – It’s not just grid-scale; you are also providing customers Tesla Powerwalls for backup power for homes. You have an innovative program - how are your customers reacting?

MP – The response has been amazing. We were the first utility to work with Tesla to offer Powerwalls. It’s a pilot program and we are on track to reach our target of 2,000 powerwalls subscribed by the end of the year. It really is a win-win. Customers who have them tell us about riding through outages – unaware there was any outage because the Powerwall kicked on seamlessly. And, we have been tapping into all that stored power to help shave the peak, so it is saving all customers money and providing convenience at the same time. Customers are paying $15 a month or a one-time cost of $1,500. It’s just one of the innovative programs we have. You have to be creative in this environment to find ways to drive down costs. At 2,000 Powerwall systems, GMP will have access to nearly 10 MWs of aggregated, stored energy to use during expensive peak times.

EET&D – How do you see utilities working together with other businesses in this new grid?

MP – We all have to come at this from an approach of how do we continue to provide reliable service for customers and make needed upgrades to the system, while accelerating this transformation in a cost-effective way. As part of that work, we are supporting a community of third-party developers to deliver transformation solutions to Vermonters cost-effectively. We recently launched our “Bring Your Own Device” (“BYOD”) program. The BYOD pilot allows GMP customers to bring their own backup power solutions, procured independently from one of Vermont’s energy solution providers, to participate in GMP’s grid transformation capabilities and help manage peak costs to benefit customers.

EET&D – Some utilities might think leaning in quickly to these innovations is risky…

MP – We think holding on to the old way of doing business is the bigger risk. In New England, there is the ever-increasing cost of regional transmission and capacity. Transmission expense has increased by roughly 20 percent in the last three years, and capacity costs have more than doubled. These increases occurred despite the fact that the amount of electricity used throughout New England is flattening or even in some cases on the decline. These costs are out of the utility’s control. But, we don’t want to sit back and just accept these cost pressures, which is why we are finding that empowering our customers is working. We like to say that we are an un-utility. We are providing energy as a service, and in turn, our customers are providing us the opportunity to bring down costs for everyone because we can tap into stored energy in a network of devices – from Tesla Powerwalls and smart water heater monitors - to solar storage facilities.

EET&D – Are you hopeful this transition will happen? Is now the time?

MP – Yes! Change in our industry is happening rapidly, and some strategies for controlling costs have to be seized early to benefit customers. Our approach is to address uncontrollable external pressures head-on and to drive down costs through innovations in operations and service to our customers. We are working to reduce our share of transmission and capacity costs through aggressive peak management, including battery storage and demand response. We are also working on controlled shared access to end-use devices in a variety of ways like heat pumps, EV chargers, batteries, and water heaters, that can be turned down during peak times in a way that is imperceptible to customers. With a culture of innovation, paired with a lean and effective operating approach, GMP is ready to keep working with customers on this new energy future that is already here, now.