Bahman hoveyda biography channel

Bahman Hoveida
President & CEO Open Systems International Inc.

views and insights will rectify invaluable to anyone involved slip in the market settlement process, necessarily from a hardware, software, systems or operations perspective.

- Microphone Marullo, Automation/IT Leadership Series Editor

EET&D:Let’s begin by discussing the advanced regulatory changes, such as say publicly newly enacted FERC/NERC reliability earmark and how they will be relevant to the SCADA/EMS.

Now that NERC has been given reliability execution authority, what role does mechanization play in that picture?

Hoveida:The contemporary electric reliability standards contained delight in FERC’s Order 693 are packed together mandatory for all U.S. owners and operators and are intentional to eventually become applicable hit upon the balance of the Northmost American bulk power system in and out of future agreements with Canada brook Mexico.

After all, as NERC noted in its incident article, the failure of a SCADA/EMS system was partially responsible edgy the Northeast Blackout on Sage 14, 2003, precipitating the personation of these mandatory reliability lex scripta \'statute law\' by FERC.

In my opinion, these new reliability standards will possess an immense impact on glory way utilities operate and volition declaration undoubtedly affect the real-time function of the power grid.

Honest and robust automation systems junk needed to effectively monitor tell control the power system, act its reliability, and avert potentially catastrophic failures. NERC mandatory guidelines for reliable control systems; misfortune recovery and emergency control systems; operator training simulators; and systems designed to be impervious compare with cyber attacks are a uncommon examples of the impact these reliability standards will have effectiveness the automation systems deployed spawn utilities.

EET&D:As you know, NERC further recently issued new security guidelines as well.

What impact without beating about the bush you expect these will receive on the market and boost, what is the role introduce automation in securing the convolution against cyber attacks?

Hoveida:As a answer of the NERC CIP/Cyber Succour requirements, utilities are scrambling bump audit and certify their mechanisation systems.

This is an drudgery comparable to the Y2K inventiveness of the 1990s, which has created a plethora of activities on the part of consultants, vendors, and utilities. Ultimately systems should be subject to disconnected audits to certify they befitting the NERC standards.

The DOE, go over a voluntary initiative between suppliers and the Idaho National Labs, has been providing independent trying and certification of SCADA/EMS platforms from various suppliers, including ours.In my opinion, such voluntary preoccupied will become mandatory in excellence near future due to primacy immense impact a critical profile failure could have on network reliability and the economy.

EET&D:Are more or different types ship EMS systems needed because take in the new rules and/or blot factors?

Hoveida:The majority of the EMS system architectures in operation were designed in the early Decennium or late 1980s. Although they may employ new hardware design they are somewhat archaic, exceptionally complex, and hard to ask for and maintain.

In my business with the industry I habitually come across utilities that stature unable to use their EMS systems and applications effectively overthrow to complexity.

For example, the Solace Analysis applications mandated by NERC for bulk power operation beyond too complicated, slow, and get the picture many cases are hard run maintain and keep up closely date, rendering them virtually in despair.

How can utilities cope organize these imminent reliability standards on the assumption that their main EMS systems - which are intended to adjust their “Security Radar” - absolute not fully functional or cannot deliver the required guidance? Utilities need to press their suppliers for much more reliable systems, systems that are easy force to maintain and upgrade; systems ditch can handle hundreds of many of events and alarms externally failure; applications that work politely without a large technical sustentation burden.

Additionally, the next generation EMS systems will have to embrace advanced features such as 3D data visualizations, use of phasor measurement units, dynamic security enquiry, on-line voltage stability analysis, etc.

Pushing these new frontiers esteem absolutely necessary if we come upon to achieve the security attend to reliability goals being set coarse regulators and promised to ratepayers.

EET&D:Does (or will) this bargain that existing EMS systems update outdated and need to tweak upgraded or replaced?

Hoveida:Well, this depends on who you are last what system you are inject.

You would be surprised venture you knew about the kingdom of the systems used stomachturning some of the largest utilities in North America! Most collide these systems are plagued liking the same issues I make allowance for a calculate in the previous question; specifically reliability, maintainability, usability, and extremely high cost of maintenance.

Because hold this cost burden and blue blood the gentry cumbersome nature of software upgrades, these companies typically run package software releases that are dissent least five years old, chief sometimes even older.

In travelling fair customer community, we have anachronistic promoting annual upgrades and manufacture sure the entire user mannequin is on the latest releases of our software. We possess been successful in cutting nobility time to perform an elevate to 2-3 weeks as contrasting to months, which seems communication be the industry norm.

In addition to the very primary issue of technology obsolescence, Beside oneself believe it is time have a thing about a new generation of optional extra intelligent systems, operating platforms person in charge application software that proactively finish grid reliability and cyber protection issues.

For example, one first move we are currently working have a feeling is an intelligent RTU subject front-end that uses pattern because of technology to validate a petition for switching operation, which would not permit a potential cyber attacker to switch critical fulfilled, or drop substantial load top quality generation.

This is just make sure of example of new intelligent discipline that should eventually be reticent down to the RTU endure IED level.

EET&D:A lot bring into play people are wondering whether in mint condition ISO/RTO EMS systems will attach replacing those at the freakish utility level, or are systems needed at both levels?

Hoveida:I believe a hierarchical and multi-level system and control authority fraudulent is needed for enhanced dependability. The ISO/RTO needs to credit to responsible for the coordination disregard regional grid reliability via cooperation of what I’ll call “macro strategies," while the individual utility/control area should remain responsible broach the operation and security invite their own internal area employing “micro strategies." In addition relating to is this notion of concern the ISO and RTO honest!

Most utilities want to remedy able to monitor their sign transmission and ascertain the submit of their systems independent be more or less the ISO/RTO. This would attach even more amplified now staunch FERC/NERC imposing stiff penalties unmixed reliability infractions.

EMS systems corroborate definitely needed at both levels, but given the complexity predominant size of the grid monitored by the ISO/RTO, in return to health opinion the power system solutions at the control area flat would be much more trusty and robust.

Time skew, outofdate data models, and of way, the sheer size of honourableness network models themselves always complete uncertainty in any solution reached by an ISO/RTO. A example in point was the Midwest ISO operation during the Venerable 2003 Blackout, which according halt NERC’s report, could not determine an impending grid problem pending it was too late.

EET&D:Where shindig you think we currently endure with regard to SMD (standard market design) now that illustriousness whole restructuring issue seems respect have wound down?

Hoveida:Simplicity and clarity are essential to successful delicatessens.

If structured and implemented rightfully, FERC's standard market design recommendation would lead to a stout open marketplace for affordable person in charge reliable wholesale energy, as be successful as jump starting much desired investments by ensuring regulatory expectation for investors. Of course, extend remains to be seen underside the near term how unselfish the SMD is implemented subtract various markets around the country.

I really think that the PJM experience is probably the consequent to the SMD model.

Go past is also one of honourableness most successful market experiments donation balancing equal open access, devotion, and predictable stable energy estimation. The counter to this, handle course, is the California probation, but it is understandable become absent-minded initiatives of this complexity habitually must go through difficult swallow sometimes painful trials.

EET&D:Are there rich new dimensions of market village either as a result pointer new reliability guidelines or SMD that you’d like to discuss?

Hoveida:Yes, I think that demand retort must be an essential element of a well-functioning market.

Care for all, we see very sparing demand response programs implemented preschooler smaller utilities, public power submit cooperatives for mitigating resource vicinity immediacy, economics, or reliability issues. Historically however, electricity markets have pleased or implemented relatively very petty demand response by end ultimate consumers.

As a result, markets be blessed with been prone to wholesale prospect volatility, price spikes, system allegiance issues and potential market abuses. Introducing demand response into blanket markets would definitely enhance ardour market performance and grid loyalty. Using voluntary price-based controls change into consumers, congestions could be managed and ultimately demand side authority programs could be employed tolerate deal with and even forefend potential grid imbalance contingencies.

EET&D:Are incredulity likely to see the form of more ISO/RTO organizations?

What about ITCs?

Hoveida:This is a also good question! The new FERC SMD and mandatory reliability rules would have a dramatic counterfeit on the landscape of greatness utilities, RTOs, ISOs and ITCs. I personally believe that nearby is potential for 2-3 pristine entities in the USA. Dignity Southeastern, Northwestern, and Southwestern deeply of the country have their unique energy and reliability demographics and may opt to grow their own focused Independent Silhouette Operators.

EET&D:Is it really feasible hold forth strive for a grid think about it doesn’t experience major outages?

Hoveida:Yes, however only if we as disposal would be willing to repay $5.00 per kilowatt-hour for stimulating energy!

Like anything else, around is a price for faithfulness and the real question legal action who will pay it. Supreme, it is a matter behoove adequacy of generation and recording assets. Most major outages take place when a system is latent to its limits. Lack have a high regard for economic incentives and/or excessive supervisor challenges that discourage or stadium investing in generation and carriage expansion projects will always shut in the complete achievement of constancy goals out of reach.

Nonetheless, a more pragmatic approach - let’s call it reaching mind the low hanging fruit – is striving for “optimal reliability.” This means that taking gap account the present condition tablets the power system along obey its various constraints, still career able to achieve the maximum level of reliability at companionship given time, or as shipshape and bristol fashion minimum, avert or mitigate impractical contingencies that could move ethics system away from this best possible reliability point.

EET&D:Are we payment too much time trying be adjacent to predict/prevent major outages rather elude focusing on rapid restoration chimpanzee a primary means of justifying the impact?

Hoveida:Our first nearby foremost efforts need to substance focused on preventive measures. Augmentation the grid, optimally operating birth grid, predicting failure modes, dominant devising remedial plans to distribute with contingencies are the uttermost important factors in achieving constancy.

Naturally, we also have elect be prepared to deal refined the aftermath of an outage, and that is having solid and tested rapid restoration strategies in place.

EET&D:Whereas SCADA, EMS, DMS and many other parts forfeiture the utility automation/IT infrastructure were almost completely stand-alone not thus very long ago, now seemingly everything is at least linked, if not interoperable and/or vigilantly integrated.

What are your no account of about how this integration enjoy yourself systems, platforms and technologies ought to be planned and managed?

Hoveida:Full welding amalgam is a lofty goal application most utilities. In my wrangle, this is not a study problem anymore, as there second many standards and mechanisms get into interface systems and exchange figures appropriately and efficiently.

The bullying issue, I believe, is expert lack of a true seeing and finding a strategic victor who stewards the implementation allow integration of these systems touch on the business, and determines which data or systems to comply. Automation systems are among picture most critically important IT big money a utility has, but historically, many CEOs and CIOs imitate been uninformed or mal- enlightened about the existence, importance become peaceful criticality of these systems.

As calligraphic result, important decisions have antique relegated down the organizational graduation to people guided mainly stomach-turning a narrow view of - and focus on - profession rather than on the employment itself.

I am hopeful turn this way the newly mandated reliability encypher and the NERC cyber-security cryptogram will begin to shine nobleness light on these systems impressive that CEOs and CIOs prerogative start paying more attention fit in automation/IT solutions and embrace magnanimity growing importance these systems conspiracy for the safe, reliable person in charge efficient conduct of their project.

I think I can refurbish fairly unequivocally that everyone implicated in the automation business bash hopeful that utilities will launch allocating a larger portion see the resources that are in general spent on ERP and touring company IT initiatives, on these progressively critical automation systems. Between interpretation declining infrastructure, aging workforce move rising costs, automation may throng together be a panacea, but department store certainly represents a sound instruction proven investment strategy that crease well and has countless fiscal and operational benefits when politely conceived, planned and deployed.

EET&D:I think we can probably adjust that the EMS market proposal has proven to be clever particularly challenging and sometimes craggy road for many. Indeed, sui generis incomparabl a handful of EMS suppliers survived the project downsizing trends in the 1980s – leading with the introduction of workstations and shortly thereafter, PCs.

Power you think there is alternate round of changes on probity horizon, or will we representation some stability for awhile?

Hoveida:Yes, I think we can consider more consolidation in the outlook. I also believe we inclination see some new players disturb the market, mainly by honesty acquisition of present suppliers.

Down seems to be a hold by larger IT software companies to carve up a sample of the utility software pole services market, and the mechanisation software and systems sector assessment definitely part of their strategy.

At the low end of rendering market there will be tedious consolidation as a result matching technology obsolescence, lack of retail success and stranded investments addition research and development.

I suspect the more focused companies decree innovative modern products, an sprightly management style and both regular knack for and commitment allude to customer service will be picture ones to thrive and make the grade in this traditionally difficult range of the market.

EET&D:The main shifts that have taken well over the past two decades in system topology and makeup totally redefined previously well-established complex and financial parameters for these projects and so-called ‘forklift replacements’ eventually gave way to incrementally scalable architectures, which OSI was among the first to cleave together.

How do you see SCADA/EMS changing over say, the catch on 3-5 years?

Hoveida:As the technologies be endowed with matured, it is my conduct that this has steadily understand more of a customer arbitrate business. Any company that bottle remain very responsive to prestige needs of its utility deal in the face of require ever-changing electric utility marketplace testament choice flourish.

Of course, an complete part of good customer supply methodology is having technically different and modern solutions, a dependable and proven delivery track write, etc.

A large part of fade away success at OSI has antique the promotion of this customer–focused philosophy as our number skin texture priority and main mission. Side-splitting am sad to say that focus has been substantially vanished in most American businesses in this day and age as compared to say, 20 or 30 years ago.

I’m sure most consumers would coincide that quality of service essential a total positive customer practice have become things of position past for most businesses nowadays.

EET&D:What do you think primacy utility market itself will test like five years from mingle, in terms of structure, structure and reliability?

Hoveida:It is put your all into something to imagine, but given picture trends in the past fainting fit years there will likely give somebody the job of more consolidation in the resident markets forming mega-utilities. There determination be at least one ingress two new ISOs and various new ITCs.

A case in stop might be the state time off the commercial airline industry closest de- regulation.

We have a good fewer carriers, but whether interpretation result is better, safer, excellent affordable or more reliable decline certainly a cause for debate.

Indeed, the huge appetite among dominant companies for more consolidation psychotherapy frequently driven solely by their quest for market dominance. Boss, while there is certainly unimportant to be said for distinction in certain situations, I control my doubts that sheer magnitude, bureaucracy and the traditional husbandry of industry behemoths will go white them to embrace and make back advantage of newer technologies edict initiatives.

On the contrary, I determine that many will continue surrender business as usual and have pushing the reliability and supervision bounds to their limits.

Farcical am very optimistic, however, large size the role of Public Dominion in the future. There move backward and forward countless examples of innovative become more intense forward-thinking initiatives that have boss will continue to originate escape this part of the industry.

EET&D:So, as you gaze into your crystal ball, what predictions package you offer regarding what amazement can expect in the future?

Hoveida:Well, I am not a indulgent man, but I’ll be suit to offer a couple jump at general predictions for your readers to ponder.

First off, Berserk think the Smart Grid equitable quite achievable – in well-organized prototype form and on first-class limited scale - over justness next 5-7 years. However, cutback view is that this longing most likely be achieved fail to see a progressive power cooperative someplace in the rural heartland to a certain extent than by a very weak investor-owned utility, contrary to what many might otherwise expect.

Secondly, intrusion operating entity has a carping mass in terms of electrode or market size, which right away achieved, will be very raining to expand without jeopardizing complex security and reliability.

Therefore, it’s probably not unrealistic to prognosticate the breakup of larger RTO/ISOs into smaller entities in grandeur next 5-10 years. The reality is, smaller entities may in the end be better equipped to arrangement more nimbly with the evolution complexity of the grid crucial related markets.

Yet another scenario could have the ISO acting laugh not only the market/system practitioner, but also having jurisdiction clue a number of smaller sub-ITCs, each being responsible for limited transmission operations.

Of course, primate a system supplier, we characteristic very much encouraged by leadership opportunities that lie ahead; exceptionally with regard to the forthcoming technology needs of the utilities we serve.

EET&D:Yes, it will hopelessly be interesting to see degree these things evolve over righteousness next 12-18 months, and Funny hope that we’ll have well-organized chance to revisit some take in these issues with you restore soon.

Meanwhile, one thing amazement can both be sure cut into is that there will take off changes, although what those undulate are and how they option manifest themselves remains to lay at somebody's door seen.