ELECTRIC UTILITIES EXPLOIT THE POWER OF THE INTERNET

Transmission & Distribution World June 1997

By Chuck Newton, Automation Editor



Interest in the Internet is spreading around the world and the electric utility industry is no exception. A recent Newton-Evans Research Co. study has found that more and more electric utilities are signing onto the Internet to showcase their services and to electronically connect with their customers. The study suggests that utility use of the Internet will expand in the future.

The study of data communications trends among U.S. -based utility organizations found that all of the 30 investor owned, public power and electric cooperative utilities surveyed have Internet access. Approximately 80% of the utilities surveyed indicated they already have a home page on the Internet. All but one of the remaining utilities indicate plans to implement a homepage by the end of 1998. This finding indicates that the smaller municipals and electric cooperatives are following the lead of investor owned utilities, and in some cases, they are leading the way to electronically link the company with its customers.

A majority of the large utilities in Europe, the Asia-Pacific region, Latin America and the Middle East/Mediterranean region have a Web site, according to Newton-Evans' international research on Internet use. Many of the sites are superb with extensive offerings. Other sites offer limited information but are expected to grow during the coming year.

A majority of the 30 U.S. utilities surveyed, that have or plan to have a Web site, are using in-house development staff (Web masters). Ten are using external contract sources, while one is using both approaches. The respondents indicate that using internal resources reduces Web site operating costs.

The utility Web sites covered in the study address three distinct audiences for Internet-related services: the consumer community, the business community, and the utility and embryonic independent system operator (ISO) community. All three audiences appear to benefit from the growing availability of utility sponsored Web sites with access to the following types of information services:

Customer-related information such as energy use advice, energy services availability, "virtual" customer support desks, billing consumption data and requests for services are already available or being tested on more than 250 domestic and international utility Web pages visited by Newton-Evans' staff. Company information such as annual report extracts, corporate history, news releases, the history of electricity and electricity infrastructure details. In the future, additional customer-focused and company-focused information will be included on these sites. More importantly, the Internet will be used for OASIS postings, for electronic bulletin board access for transmission access data and for power contracting information.

Newton-Evans has two principal concerns regarding the Internet: the security issues that confront a "re-regulated" market and the integrity/reliability/throughput characteristics of the Internet. The electric utility industry must maintain its private, secure, back-up networks (or sub-networks) to preserve the reliability and security of mission critical, real-time information flow, Secure networks at the utility level, the NERC-ISO level and inter-regional levels will be a requirement, not a luxury, as the industry moves closer to open access, on-line power marketing and near total reliance on electronic commerce.

For real-time control and monitoring purposes, the Internet is no substitute for a secure, private, high-speed data network. While the Internet implies external information exchange, the term "Intranet" defines a more restrictive, internal-only information access and exchange for authorized utility management and staff. Intranet seems to be an updated term for what had been known as the enterprise-wide information network.

Under the tutelage and sponsorship utility Information systems departments, many restricted-access, internal data files are being shared among departments and business units through warehousing of multiple use data - much of this data emanating from control center-based systems and from customer information systems. To prevent valuable utility-internal data from leaving the organization, safeguards such as access restrictions and firewalls are required features when establishing an Intranet.

The information highway continues to develop at a rapid pace. The Internet's role as a communications-centered information system is destined to increase interaction among utilities and between utilities and their customers.