ILLINOIS INSTITUTE OF TECHNOLOGY

The Illinois Institute of Technology (IIT), in collaboration with Exelon, the Galvin Electricity Initiative (GEI), and other key partners (the team) propose to develop, demonstrate, promote, and commercialize a system and supporting technologies that will achieve ?Perfect Power? at the main campus of IIT. A ?Perfect Power? system, as defined by GEI, is a system that cannot fail to meet the electric needs of the individual end-user. Different types of end-users will have different needs and a Perfect Power system will have the flexibility to supply the power required by each type without fail. This Perfect Power Prototype design is replicable to campuses, complexes, developments, investor owned, and municipal electric systems. The IIT project will demonstrate a new regulatory model for improving electricity service, one where the consumer and utility work together to lower cost, improve reliability, improve energy efficiency, and lower carbon emission. IIT is fortunate to be located in a restructured electricity market where the Independent System Operator provides real time pricing, day ahead hourly markets, demand response payments, capacity payments, and access to competitive wholesale electricity markets. These new markets provide IIT with the economic incentive to invest in demand reduction and energy efficiency. In addition, IIT owns the site distribution system thereby saving money on utility distribution charges. Essentially, IIT can control and invest the distribution charge savings into site distribution system improvements. In contrast, some cities in Illinois whose residents pay full distribution system charges have not had any improvements to the local distribution systems in 50 or more years. The overall objectives of the project include: 1. The achievement of system-wide Perfect Power for IIT?s electric power conditions and demonstration of its technological viability through the implementation of distributed energy (DE) and advanced sensing, switching, feeder configuration, and controls. 2. 50% peak demand reduction capability when called upon by Exelon/PJM Interconnection (PJM). 3. 20% permanent peak demand reduction from the 2007 annual peak demand. 4. Deferral of Commonwealth Edison (ComEd) planned substation upgrades due to the demand reduction achieved. 5. Demonstration of the economic value of Perfect Power, specifically the avoidance of outage costs, investment avoidance, and the introduction of significant savings and revenue from providing ancillary services in a restructured electricity market. 6. A design that can be replicated to any campus or community. 7. Promote the Perfect Power prototype. The Perfect Power Implementation plan is based on a Failure Modes and Effects Analysis for the campus distribution system and the results of the Galvin Perfect Power research. The deployed Perfect Power model is capable of providing 10MW of demand reduction within 30 minutes of notification by ComEd or the PJM. This includes 5MW of firm demand reduction due to redundant distributed resource and distributed generation capability. This will allow ComEd to defer $2,000,000 in substation upgrades per their support letter. The proposed project provides a unique opportunity to demonstrate the economic benefits of demand response by leveraging PJM?s day ahead and real time markets. The proposed project reveals significant cost savings and revenue production opportunities by leveraging PJM programs. IIT with one of the few Power Engineering curriculum programs in the country and located near Chicago?s Midway airport provides an ideal location for continued refinement and development of advanced grid systems and access to industry, utilities, and regulators for demonstration purposes. Through the Galvin Electricity Initiative the results, benefits, and impacts will be communicated to utilities, policy makers, and end users across the United States.

Clarification of Codes