|
Summer 1999
For the Computer, Communications, and Controls Industries
Volume 15
Thirty-seven Countries Participate in '99 Newton-Evans EMS/SCADA Study
In April 1999, Newton-Evans Research Company published the seventh volume of
its series of reports entitled World Market Survey of SCADA and Energy
Management Systems in Electric Utilities - 1998-2001. This report series has
been prepared based on primary research survey data collected from utility
operations managers for each world region during a study of the world market for
SCADA and energy management systems (EMS). The research was conducted during the
period of September 1998 - March 1999.
More than 250 sites actively participated in this survey, while another 200+
control centers had responded to recent and related Newton-Evans Research
surveys. Some of the input received for those related studies has been
incorporated into this series of reports.
The six geographic markets encompassing Volumes I through VI include: Western
Europe; Eastern Europe; Latin America; Asia Pacific; Mideast, Mediterranean and
Africa; and, North America.
Part A of Volume VII contains a world market forecast and summaries. Part B
of Volume VII contains profiles of the responding utilities.
Volumes I through VI and Volume VIIA contain market estimates and forecasts,
as well as summary narrative, color charts, and detailed tables.
Topics examined in this research program include:
· Computer-based control systems currently operating in utilities by brand,
year of installation
· External links for connecting EMS, SCADA and DMS systems
· Data warehousing, archiving data retrieval time requirements
· Plans to install new, replacement, and additional EMS, SCADA, DMS systems by
year 2001
· Use of engineering consultant firms in EMS, SCADA and DMS plans
· Level of criticality of the "Year 2000 Compliance" issue
· Percentage of budget/cost allocation for "Year 2000 Compliance"
· Capabilities desired for new RTUs
· Vendor performance ratings in nine categories
· Available budget to acquire new computerized systems, upgrade or retrofit
existing systems.
A current subject of great worldwide interest, and not limited to electric
utilities, is that of dealing with the Year 2000 "computer bug" and
the need to resolve this situation so that computer systems will properly
recognize the correct year at the turn of the century. The "bug" could
affect control center operations (for EMS, SCADA and in-plant generation control
- known as DCS - systems) as well as the "embedded" technology found
in field equipment and some older generations of intelligent electronic devices.
Mainstream information systems operated by power and gas utilities for
accounting, administration and others could also be affected.
On a world summary basis, almost two-thirds (excluding Eastern European
utilities which are looking to their federal agencies for assistance) are
treating the Year 2000 issue as "critical." For all other world
regions, other than Eastern Europe, at least 63% and as much as 71% of the
utilities think the situation with regard to Year 2000 compliance is critical.
Earlier this year, only three percent of North American utilities and up to
14% of Mideast, Mediterranean and African utilities believed that Year 2000
compliance "is not an issue". Only seven percent of the world's
utilities participating in this study believe that they had, by March 1999,
successfully resolved the Year 2000 compliance issue. See Figures 1 and 2.
Another topic included in this research concerned the level of MIS influence
on specification and selection of the next EMS, SCADA or DMS system. On a
worldwide summary basis, 13% indicated that the MIS department would
"co-manage" this selection, while another eight percent noted a
"great deal of involvement" by this group. "Some
involvement" was indicated by 42%, while the remaining 37% stated MIS would
have "no influence". See Figure 3 for world responses.

ESCOs Take Hold Around the World
Since 1996, Chuck Newton, president of Newton-Evans Research Company, has
written a monthly column entitled AUTOMATION PERSPECTIVES published in
Transmission & Distribution World magazine, in his role as Automation
Editor.
In the previous issue of MTD, selections from columns pertaining to
substation diagnostics and RTUs role in T&D operations were featured.
The focus of the article in the February 1999 T&D World issue was energy
service companies. These new energy service companies (ESCOs) and other
unregulated utility subsidiaries are being formed every month by electric
utilities in North America and abroad. Established ESCOs appear to change names
on a monthly basis as they merge, consolidate or establish new mission
statements. Keeping track of these new market entrants, and the revamped
existing companies, can be likened to tracking your favorite sports player as
the player jumps from team to team through the free agency market. Some ESCOs
are so new, or appear and disappear so quickly, that their holding company
switchboard operators don't even have phone contact listings for their
employees.
· More than 85% of large U.S. investor-owned utilities now have one or more
ESCOs staffed and operating.
· More than $2 billion in 1998 U.S. electric utility holding company revenue
can be traced back to ESCO-derived revenues. About 20% of that amount is based
on automation-centered or computer-based services.
· International utilities in many Western and several Asian-Pacific countries
have already formed, or are about to launch, ESCOs or the local equivalent of
unregulated businesses owned by electric holding companies.
· The pace of state-by-state electricity deregulation will have a direct effect
on the number and types of ESCOs formed (and revamped) over the next five years.
In the past, ESCOs formed by utility holding companies focused their business
efforts on demand-side management initiatives, such as load control, lighting,
window tinting, insulation, energy audits, and residential appliance sales. As
deregulation of the industry takes hold, ESCOs must find ways to distinguish
themselves from their competitors.
Establishing a line of distribution related products and services is one way
in which ESCOs can improve their industry presence, fuel business growth and
gain market share. Automation-related products and services currently offered by
ESCOs include: smart lighting systems, facility energy management systems,
building automation offerings encompassing more than energy management,
telecommunications services ranging from simple local-area-bypass offerings to
Internet offerings to total cable-based services.
In states where industry regulations may force separation of services from
the regulated utility (distribution network operations provider), ESCOs are
offering metering and billing services. Illinova Energy Partners is one company
currently developing electricity pricing and billing software for its customers.
Puget Sound's subsidiary, Connext, is providing automated meter reading and
customer information system services.
Still others, such as Wisconsin Public Services' WPS Energy Services
subsidiary, have begun to offer energy consumption software. DTE Energy Co.'s
(Detroit Edison) Intelligent Link Project was a business unit established to
send data messages to residential customers for residence temperature control
based on a four-tier rate structure.
High Interest Level in Portable Troubleshooting Analyzers
for Power Quality
Power quality is a subject studied frequently by Newton-Evans Research
Company in many facets of the electric utility industry. Recently, the company
completed a study pertaining to the role of power quality standards in the power
quality equipment marketplace.
One area of investigation concerned the sales channels used to procure power
quality equipment for electric utilities. On average, two channels were used,
depending upon the specific product type and/or manufacturer being used. Sales
representatives were most frequently used, cited by 81%. Over one-half (56%) of
the utility officials indicated direct manufacturing dealing. Distributors were
used by 44%, and five percent indicated using their PQ consultants as a source
for PQ instruments. See Figure 4.
Utility officials were also asked to indicate the level of interest they had
in a variety of possible PQ-related product offerings.
Portable Notebook PQ Analyzer. Nearly one-half (47%) of the
respondents indicated a high degree of interest in this potential offering.
Feeder Network PQ Analyzer. Forty-four percent of the utilities
responding expressed a high degree of interest.
Fixed PQ Benchmarking Analyzer. Only about 26% of the responding
utility officials noted a high degree of interest.
Portable PQ Troubleshooting Analyzer. This product received the
strongest level of high interest among the responding utilities. Nearly 70%
indicated that they would be very interested in this offering.
PQ "Help" Software. Forty-seven percent indicated a high level
of consideration in this potential new offering.
Multifunctional PQ Instrument. The interest was very strong in this
product, with 63% expressing a high degree of interest in such a product quality
offering.

The World Market for Protective Relays in Electrical
Utilities: 1999 - 2004
Earlier this year, Newton-Evans Research Company initiated the distribution
of the Prospectus providing information about the company's newest relay
research program. This study concerns the worldwide market for protective relays
in electric utilities during the 1999-2004 time frame. This market study is
being undertaken during the third and fourth quarters of 1999.
In 1996, Newton-Evans Research conducted an extensive research program which
provided a clear view of the protective relay marketplace in the United States.
This newest study will examine the world market for protective relays.
Newton-Evans will interview and survey more than 200 international and U.S.
utilities. In addition, the research program will look at generator
applications, transmission-line applications, distribution-feeder applications,
and substation applications for protective relays.
The study will provide an in-depth appraisal of what utilities will be
requesting in their next round of procurements of protective relays for all
applications. The world regions to be researched are: North American market;
European market; Pacific Basin market; Latin American market; and, combined
Mideast, Mediterranean and African markets. Some highlights of this series will
include:
· spending outlook for relay purchases
· utility preferences for relays by application (electromechanical versus
digital)
· integration of intelligent relays to digital control systems
· relay data transmitted to SCADA systems
· relay data communications requirements
· disturbance recording (oscillography)
· plans for integrating protection and control
· relay vendor preferences for 12 key criteria
· relay scheme redundancy
· purchasing policies for protective relays (loose, systems, OEM).
Early subscribers to the series took the opportunity to review the pretest
survey, and submit suggestions and questions to be considered for inclusion in
the survey.
Some topics for the proposed study series are listed below:
· Product Awareness and Current Utilization: How familiar are
electric utilities around the world with protective relays?
· Vendor Evaluation: How do utility personnel in different countries
find out about protective relay vendors? Who are the market share leaders in
each world region? How do suppliers rate in various product and marketing
categories?
· Purchase Plans and Purchasing Decision: What specific plans do
utilities around the world have for acquiring protective relays?
· Price Sensitivity: Is price sensitivity a key issue with smaller
utilities in the international community? Also, what price ranges are acceptable
for protective relays offering different functions?
· Budget Authority and Procurement Policies: Who makes the purchase
decisions for protective relay procurements?
· Information Sources and Distribution Channels: How do utilities
around the world keep up-to-date with advances in protective relaying? Also,
which channels are used to purchase relays?
· Primary Applications Activities: Are the usage patterns for other
world market areas similar to those being found among the North American
utilities, based on applications priorities and planning for new or add-on
applications?
· Role of Consultants and Local Market Suppliers: Who provides the
consulting services for the international protective relay marketplace? How
important is an ongoing local market presence in the international environment?
· What to expect from an "ideal" relay: What is an ideal
relay to a relay engineer? What are the expected price points for an
"ideal" relay? How many units are planned to be purchased if the
"ideal" relay system is available by 2001?
The findings from the study will be released in a sequential,
volume-by-volume manner, based on geographic area. The anticipated report
availability sequencing will be as follows:
Volume I North American Market
Volume II European Market
Volume III Pacific Basin Market
Volume IV Latin American Market
Volume V Mideast, Mediterranean, African Market
Volume VI Executive Summary
The targeted time frame for publication of the first two volumes is August
1999.
Pre-publication pricing is still available; however, the sponsor input phase
to the study design has been completed. The full payment pre-publication price
of $4,500 must be received before July 31, 1999. The split payment plan ($5,000
total) is a second option. One-half ($2,500 is due before July 31, and the
balance ($2,500) is due upon receipt of Volumes I and II.
Post-publication price for the six volumes will be $5,500.00. Individual
volumes may also be purchased.
Products and Services in the Deregulated Energy
Industry
In the second half of 1998, Newton-Evans Research Company conducted a
proprietary study that explored channel issues and the potential role of
fiberglass insulation products and services in a newly deregulated energy
industry. Six industry groups were surveyed for this report, including utilities
and their energy services business units.
It is evident that most major utilities have already formed energy services
business units. Many have been set up as unregulated enterprises under the
utility parent holding company.
Most of these energy services business units (ESCOs) will focus primarily on
energy-related services, and only secondarily on energy-related products.
Newton-Evans Research has published an Executive Summary report containing
over 60 profiles of energy services businesses formed by electric and gas
utility companies. Information found in the profiles includes the planned focus
and scope of the ESCO activities. For report pricing information, please call
1-800-222-2856.
More information on the topic of ESCOs may be found in this newsletter on
page 3 which contains excerpts from Chuck Newton's monthly column that appears
in Transmission & Distribution World.
Proprietary Research Topics over the Last Eighteen
Months
Newton-Evans Research recently completed a study of the international
electric utility market to determine present and planned usage of distribution
arresters.
Respondents to this research study were asked to indicate if their utility
had a process in place to certify arresters. Fifty-nine percent indicated that
their utility did not have a distribution arrester certification process
available. More than one-third (36%) reported having such a certification
process in place. Figure 6 depicts this information in graphic form.
Other recent proprietary topics researched by Newton-Evans include the
following:
· optical sensor-based substation power management system
· information systems and applications software used in power marketing and
energy trading businesses
· use of enterprise resource planning software, automated sourcing software,
data mining/data warehousing software in local governments
· U.S. market for distribution feeder automation
· market for Internet-based mapping services in North American utilities
· market in selected states for water energy efficiency programs.

For pricing and additional information on this new series of reports, please
call Newton-Evans Research at 1-800-222-2856 (or internationally,
1-410-465-7316) or visit us on our website at www.newton-evans.com.
|