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Episode #71: 'Road to Decision: Exelon’s Vision of a Private Broadband Network for Grid Modernization' with Russ Ehrlich of Exelon and Ryan Gerbrandt of Anterix [an Energy Central Power Perspectives™ Podcast]

The modern utility industry continues to evolve in key ways that provide for a more reliable, affordable, and clean grid. An emerging focus for utilities has been the ability to accurately access, process, and act upon an asset that’s become nearly as important to them as the electricity itself: data. Data from customers, generators, sensors along the grid, and more are all providing utilities keen insights into their best course of action across countless areas of the power business, but properly utilizing such data can be impossible without the right tools. Across the sector, the solution that’s been seen as necessary for this next generation of utility operations is the implementation of private broadband networks.

Joining the podcast today to discuss how private broadband networks are actively creating new advancements for utilities today are two experts in the field. First is Ryan Gerbrandt, the Chief Operating Officer at Anterix, who has been assisting utilities to get started on their private broadband journey, no matter how far along they are in that process or if they are at square one and need justification that this step will benefit them and their customers. Also joining the podcast is Russ Ehrlich, the Utility Communications Senior Manager of Exelon. Russ has overseen the kickoff of that private broadband transition at Exelon’s six utilities alongside Ryan, including the network pilot to study the operational savings broadband capabilities would bring them. Ryan and Russ join podcast host, Jason Price, and producer, Matt Chester, to share what they’ve learned from these efforts and the lessons that can be passed onto other utilities considering doing the same.

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Thanks to the sponsor of this episode of the Energy Central Power Perspectives Podcast: Anterix. 

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TRANSCRIPT

Jason Price: 

Hello, and welcome to this week's episode of the Energy Central Power Perspectives Podcast. The show that brings leading minds to discuss the latest challenges and trends transforming, modernizing the energy systems, and the utility industry of the future. A quick thank you to Anterix, our sponsor for today's show. Now, let's talk energy.

Jason Price: 
I'm your host, Jason Price of Energy Central and director with West Monroe, coming to you from New York City. With me as always from Orlando, Florida is Energy Central producer and community manager, Matt Chester. Matt, we're seeing a rapidly advancing trend in the utility sector these days where power providers are thinking beyond just their own electricity carrying wires and implementing broadband networks. Can you share a quick overview of what's driving this?

Matt Chester: 
Absolutely. So the implementation of broadband for utilities, it's become a critical function in recent years, for sure. While moving electrons across the grid, it's always been the currency of the power sector. Of course, that still remains their core mission. A new type of gold has become nearly as valuable to them. That asset is data.

Matt Chester: 
Data and intelligence derived from customers, from generators, from wider energy markets, from sensors all along the grid, and so much more. Accurately accessing, processing, and acting based upon that ever present flow and security of data, it allows utilities to optimize their flow of electricity. It allows the modernized grid to be as affordable, reliable, and clean as possible, and really private broadband networks have largely become the tool to do so.

Jason Price: 
Thanks for that, Matt. Definitely a critical area for any utility that wants to be at the cutting edge and maximize what they're able to do. Like you said, the utility sector is quite focused on grid modernization and the best path forwards towards the modern grid of tomorrow comes from private, wireless broadband communication networks. So this topic is one that can get quite complex and we're talking about it in the theoretical. So we want to break it down by talking about it in practice as well with what's being done today. So what better way to do so than to have on Power Perspectives, a pair of guests that have already made great strides showcasing what can happen when broadband networks team up with the grid.

Jason Price: 
Joining us in this episode of the podcast is Russ Ehrlich, Exelon's utility communications senior manager. Russ and his team have surveyed all the various factors needed in getting a private broadband solution into Exelon's six utilities that cover over 10 million customers with an eye towards enhancing reliability, resilience, and sustainability across the grid. Exelon did so via network pilot that uncovered the operational savings of these types of broadband capabilities, and we're eager to hear more from Russ on their strategy and ultimate findings. Russ Ehrlich, welcome to the podcast today.

Russ Ehrlich: 
Appreciate the opportunity. Looking forward to talking with you all.

Jason Price: 
Terrific, welcome. Russ isn't our only guest today because Exelon had help in this process from Anterix, a leader in implementing private broadband solutions for the utility industry. As our longtime listeners will remember, we had Anterix represented by their CEO, Rob Schwartz, on an episode in November of 2020 alongside the CEO of NYPA, where we discussed how Anterix helped with their rollout of private LTE network. To help tell the story of Exelon's pilot program today we're joined by Ryan Gerbrandt, chief operating officer at Anterix. Thanks for joining us as well, Ryan.

Ryan Gerbrandt: 
Excellent. Thank you, Jason. Yeah, it's my pleasure to be here with you, Russ, and Matt today.

Jason Price: 
Absolutely. Likewise. So Russ, let's start with you, some basic questions. What is private LTE and why is Exelon considering the implementation as part of its grid modernization plants?

Russ Ehrlich: 
Appreciate the question. I think one of the big things that we start with at Exelon is looking at our communications strategy. Part of that communication strategy and anything with broadband has to be a combination of both a robust fiber backbone along with a wireless solution that will help support what we have coined that last mile.


Russ Ehrlich: 
Understanding a lot of the benefits that you get from having your own private fiber backbone layered on top with this high bandwidth communications to support endpoint devices, which are going to be new numerous, both current and future will enable these utility companies, Exelon in particular, which is made up of six regulated utilities which will enable us to better support all the things you've talked about. The reliability, the sustainability, how you can leverage your assets, reducing O and M expenses, reducing and enabling carbon footprint reduction, big things about consolidating our networks and helping provide new functionality.

Russ Ehrlich: 
We have to be able to do each and every one of those things in a fashion that becomes not at the speed of light, but at a much more rapid pace to be able to support our business and our customer goals. So looking back over the years and looking at how we've done things, and also looking forward will enable us to start to shrink the number of legacy systems we have while we start to put things on a unified approach to support much of the future communications needs for these utility customers, as well as the utilities themselves.

Jason Price: 
Thanks for that, Russ. So Ryan, over to you. Coming from your perspective at Anterix, is there anything additional you pitch as to why utilities like Exelon should be exploring this space?

Ryan Gerbrandt: 
Yeah. Great question, Jason. I mean, fantastic summary, I would say from Russ. What we're finding is that broadband, so the broadband wireless communications component of where it was talking about has become practically imperative to most of the broad objectives that we see kind of across utility industry today, and why? Because they require data control, visibility, and situational awareness. The idea of digitization is clearly upon us and so fold in that kind of the increasing need and urgency around while we build these critical networks addressing the cybersecurity concerns.

Ryan Gerbrandt: 
Let me maybe put it in perspective to roll up some of the points that Russ said, and certainly that we see. I think it has defined for us some of the priority objectives for the industry economy-wide decarbonization enabled by electrification and clean electric supply, grid reliability and resilience, and last but not least, certainly as kind of equitable universal access to safe, reliable, low cost power.

Ryan Gerbrandt: 
Let me peel that back a little bit. Those we characterize as kind of macro drivers that frankly Exelon and most, if not all the utilities across the nation are really trying to deal with. When we think about decarbonization, in a lot of utilities cases, what that encompasses is kind of a new world of renewables and distributed energy resources and as I said, a migration to electric vehicles. There's something very different about the characteristic of those use cases and devices that are particularly when you get into distributed energy resources and renewables, they're clearly much more dynamic than what we've seen the energy sources and uses in the current grid. They tend to be distributed.

Ryan Gerbrandt: 
We inherently see them across very large footprints of utility of state, but at the same time, because they're variable, we really have to focus on the issues associated with how making sure when we integrate them utility can have the kind of real time visibility and control of all these very important but distributed assets. What that derives from a communications perspective is by fact that they're spread out, geographical footprint that being able to address it with a wide area technology like broadband, like private LTE on broadband is really well fit for what that use case is.

Ryan Gerbrandt: 
The same thing on the visibility. We really think about that from a network's perspective around high performance and so the ability to carry large amounts of traffic and be to support a high number of end devices. Then the other side of it is how quickly we can carry that data. In the network world we call that latency, literally that translates to the speed and the responsiveness of the network.

Ryan Gerbrandt: 
Grid reliability and resiliency on the other hand, clearly not a new issue but one that I'd argue is not going to get any easier to either maintain the status quo performance of a network or frankly, to improve. The reason I say that is a lot of it is dependent on environmental factors and whether as we've been seeing clearly it's getting more severe from droughts driving increase in utility caused wildfires, to the winter storms creating multi-day outages, summer storms increasing and more severe hurricanes.

Ryan Gerbrandt: 
All of that is new environmental factors that utilities need to really think about the design of their systems. The communications network in itself inherently needs to be, I'll say more reliable than the systems that it's built to monitor and support because it's the system that needs to be up to help Russ and customers like Exelon, be able to support disaster recovery and get the systems back online, and deal with some of these events.

Ryan Gerbrandt: 
Finally, I'd argue probably the most important measure and actually I say this not as a technologist, even more as a consumer, is the ability to provide the critical service of energy in a way that's ubiquitous. So meaning to all citizens of the US regardless of how rural or underserved a community may be. At the end of the day, doing it in a way that's affordable all while addressing these technology challenges, I'll call them that it previously went through.

Ryan Gerbrandt: 
Russ hit on an important point there from an economic point of view that we've seen with our experience so far, that kind of what broadband private LTE enables is a more comprehensive way to think about the last mile or the field area network communications needs for utilities. We like to talk about a broadband network now in the vernacular as a platform versus what we've seen in history around more kind of legacy, narrow band, or single use networks.

Ryan Gerbrandt: 
In this context, because the platform that we're talking about with broadband is based on a world class standard like LTE, it's deployed at scale all around the world. There's billions, and that's billions with the B, of devices operating on LTE based networks globally. That creates an economic advantage to utilities where you can access the supply chain and investment in R and D, and all the longevity that comes with something as globalized as LTE. The platform effect really allows the utility to consolidate a lot of disparate telecom networks down, which creates an obvious operating cost and capital benefit to those utilities.

Ryan Gerbrandt: 
Obviously growing from that, which we'll probably talk more about is really kind of the innovation side, the ability to develop new enhanced services and solutions that will inherently increase the value of these kinds of platforms over time. Obviously wrapping all around that what we really spend a lot of time talking utility partners about is the role of increased importance of cyber and physical security, private network we describe as being air gap. So the ability for a utility like Exelon to be able to build, deploy, and operate this private piece of telecom infrastructure, allows them to better control and really build design in from the ground up the cybersecurity measures that are fit for purpose to protect against the threat landscape that they see specific to their utility.

Jason Price: 
Staying with you, Ryan. Can you take us a bit further into the whole benefits and maybe even the pros and cons of this movement towards consolidation of the legacy communication systems? You talk about the disparate systems. You talk about retiring of devices and retiring of various networks. So what are the ramifications?

Ryan Gerbrandt: 
Ameren, another utility partner, a pioneer now and often building their own broadband network actually looked at a significant part of their justification precisely in this way. What they found through history is that over time they had built what they cataloged as upwards of 20 of these discreet networks, each serving specific needs and use cases, undoubtedly creating value for what it needed to do. That model's pretty common.

Ryan Gerbrandt: 
We've seen that through the legacy of, as technology has been made available to the application suite across the utility space, the telecom side or the communications side that enabled a lot of those applications was really fit for purpose to the specific and unique application that it was focused on. Frankly, it's because there was a missing piece. We didn't have a communications platform technology like LTE to be able to really start having these kinds of conversations where we're looking things a lot more holistically. Ameren saw that opportunity and really leaned in on the capabilities of what a broadband network could do as they ultimately built out their plan.

Ryan Gerbrandt: 
It's in their design, designed to intentionally and gradually replace each one of those 20 networks with their single broadband private LTE platform. That yields to them the financial benefits, obviously in terms of better aggregating what their capital spend is necessary to support all of those assets today and what grows into the future and create operational efficiencies by not having to continue to maintain and operate each of those individual platforms. That's transformational thinking to me, about how to apply a technology like this to drive this kind of consolidation and benefits and the outcomes.

Jason Price: 
True. Russ, over to you. Can you share at all? Is it too early, or can you share any of the benefits that you've experienced so far?

Russ Ehrlich: 
From a benefit's perspective, I guess those will be gained over time. So as Exelon of ourselves, start to walk down the path in putting together our business cases, top down models, trying to get to a lot of the pieces that Ryan had talked about. Understanding the benefit that you do get from a private system as compared to commercial systems, as compared to these legacy systems that are out there. So from a benefit perspective there's financial benefits that come there from the world of our ability to scale, integrate, bring these solutions to market for our customers a lot quicker. We can look at things both from a financial perspective, as well as our ability to support.

Russ Ehrlich: 
One of the things we talked about was some of the environmental benefits that you get from some of these broadband networks. Our ability to do more things remotely, reducing truck rolls and things like that, they can all be monetized at some point. As companies and people go through putting their business cases together, you start to show what those true benefits do become. So there's the technology benefit we talked about. There's the security benefits, there's the integration, there's the private aspect of any communication network that is privately owned, maintained, and supported.

Russ Ehrlich: 
Our abilities to go through and work on our equipment, make sure that we've got redundancy and reliability built into these networks that support a utility grade network, transmission distribution, to be able to support situational awareness. Some of the things that Ryan talked about was, and we hear about it from NBIOT and IOT and DERs, and BESS's, we talk about a lot of these battery energy storage systems. We talk about a lot of these new technologies that are coming down the pike.
 

Russ Ehrlich: 
We have to make sure that our system operators and folks have visibility to their devices, to those devices that are now being brought onto the system, because our transmission and distribution and generation assets not specifically working the same way that they were originally worked out for in previous years. So you have to think about bidirectional energy flow from a customer back into a network. You have to be able to make sure that you can still provide your protection and control. You also have to still make sure that you can respond to customer outages. So a lot of different benefits are derived from putting in these private systems.

Jason Price: 
Yeah, well the Energy Central audience is always asking what comes next from the investment. So staying with you, Russ, given the investment and the time and resources that you've made for this private broadband network especially getting it off the ground and all, I'm assuming your team is seeking other opportunities down the road. What's the art of the possible? So can you share with us perhaps, what are some emerging technologies that you're anticipating from this?

Russ Ehrlich: 
Yeah, and I think one of the big things to mention about Exelon is like I say, I think we are on the early stages of developing, deploying a broadband private network. So thinking about the foundational aspects of what's needed to support that. I think as we mentioned earlier today, it was building off of private fiber. So fiber being the backbone really becomes some of the first things that you have to do. You really have to start to look at what are the devices that you want to connect either directly to fiber, or where do you start to leverage this wireless technology to be able to support new things that are coming down?

Russ Ehrlich: 
For example, we talk about virtual reality and artificial intelligence. Those become types of things that require higher and higher bandwidth capabilities. How do we make sure we, from a utility standpoint can provide that to our field resources? How do you have somebody who's sitting out in the field, looking at a device, being able to have that communication tied back into somebody in our system operations. Three part communication, adding visibility to that. It just helps out our ability to operate in a much more cohesive, safe manner. So I think those become a couple of the real things that additional bandwidth kind of drives for you.

Russ Ehrlich: 
We talk about video capabilities. One of the big pieces, unfortunately that utilities face today is theft of service and, or theft of copper or different types of things where folks are kind of getting into our facilities. Having the infrastructure that enables you to look at real time or near real time of what's going on at your critical substations in other areas so you can start to protect or better protect or respond to these, really start to come out of your ability to communicate in a more expedient fashion. So there are many, many different possibilities, use cases, business cases that are out there.

Russ Ehrlich: 
We see a tremendous amount of distributed energy resources coming down, being put onto our distribution networks, being able to keep in real time, the flow of that data as we talked about. Breaker status, open, close, kilowatts coming in, kilowatts going out. It becomes a much more complicated equation to solve than just plugging in, turning your light switch, and having the lights come on or having heat come on to be able to support our customers.

Jason Price: 
I'm glad you brought that up because I want to ask you more about the customer. At the end of the day, what is the impact on the customer? So can you talk a little bit about the offerings or benefits that the customer will get, that they may not necessarily see or experience firsthand right away?

Russ Ehrlich: 
One of the biggest benefits that we always try to do with any of our utility assets or utility investments is to drive to higher reliability. Higher reliability for our customers, whether it be the delivery of electric and, or natural gas to our customers, to be able to support their needs is really kind of the crux of what we hope to get to with this. Future things that we look at is how do we better enable our customers, our customers' new systems, whether they be solar systems or whether they be electric vehicle charging facilities that are now becoming integrated with our distribution networks.

Russ Ehrlich: 
How do we make sure that we are aware of, we talked about it before, the kilowatt flow back and forth? Making sure that the customer's lights are on, making sure that we keep their bills in check. So it's not always keep spending, spending, spending, because every investment that we make from a utility standpoint unfortunately has to be paid for from our rate base.

Russ Ehrlich: 
So making sure that we're working with our regulatory folks to come back with prudent investments that help benefit the reliability, the resilience that ultimately get back down to that end customer. So we can provide the services that our utility charters are set out for are a couple of the bigger things that we hope to get out of these private systems that are out there.

Jason Price: 
Over to you, Ryan. I want to ask you more of a, sort of a national landscape view because that's the position that you're in, you see more of a broader national focus here regarding the role of regulatory approval.

Ryan Gerbrandt: 
Frankly, just positive alignment to enabling these kinds of opportunities for utilities. I mean, first obviously for us was kind of the FCC proceeding, the report and order that enabled kind of the broadband access to the 900 megahertz spectrum that Anterix owns. In that obviously there's a lot of stakeholdering necessary to be able to get through that process. As a result, the FCC and the other stakeholders clearly recognize the need to make available broadband spectrum for this specific use in critical infrastructure particularly targeting how to deploy it and use spectrum with utilities.

Ryan Gerbrandt: 
A lot of folks who are probably less familiar with kind of the spectrum landscape may not really appreciate just how scarce spectrum really is, especially what we call low band spectrum in the space, which is defined as spectrum below one gigahertz which is what we're talking about here today. There's a lot of competition to get that remaining low band spectrum for what's available and especially for broadband use outside of the nation's carriers who have really consumed the vast majority of it over the years. The FCC kind of recognized the importance to the future of our utility industry and supported Anterix and our stakeholders with making this newly structured broadband allocation available.

Ryan Gerbrandt: 
Second example, that same kind of recognition and support is visible throughout the new infrastructure investment jobs act where there's actually multiple provisions recognized in that legislation that provide opportunities to fund broadband for utilities. That's more than the funding that I'm really noting there. Again, that process, which was broadly stakeholder across a variety of different groups, really was targeting trying to define relevant topical areas that could really drive value in terms of enhancing the position of our utility operators. Through that recognition is really a good direction in terms of the support and kind of what we're seeing from the federal legislative side of things.

Ryan Gerbrandt: 
One more while just on that. We're seeing similar recognition frankly for the value of broadband and support of utilities who are pursuing it. Through the state level utility commissions and through organizations like NARUC, where the utility commissioners of the states come together to really talk about some of these more topical items and the overall direction of policy and the applicability of technologies like private broadband to the future of the grid.

Jason Price: 
That's great. We have one more question before we let you guys go. So we want to hear from both of you, if you don't mind. So it's basically around the base of national trends among utilities.

Ryan Gerbrandt: 
There's an economical principle that I've used called the network effect. What it describes is really a phenomenon by which the value of a user, really what a user derives from a good or service that depends on the number of users using a compatible product. It's exactly the same way. We really see the future opportunity or the collective benefits associated with private broadband and that the value expands for each of the utilities who join on using a standardized platform. It does so, Russ hit on some of these points, by increasing an individual's access to innovation, applications, research and development, services. Simply scale the economies of scale that come as a result.

Ryan Gerbrandt: 
To some extent, just to give an example where are seeing this already, we launched last year, something that we call the active ecosystem program. The goal of it was really to drive collaboration across the entire PLT landscape to help bring a more comprehensive set of solutions and bring common interests to participate in conversations around solution design in supportive utilities like Russ said, at Exelon. We launched that system, like I said, less than a year ago with 37 companies. Now already we've got over 75 participants. That's a network effect.

Ryan Gerbrandt: 
That's already creating platform value by driving the exact type of innovation investment and forward looking applications that we think will continue to spur innovation and solutions for utilities like Exelon. As I said, that's something that really comes as a result of kind of the collaborative nationwide thinking as we start building scale and developing the outcomes on top of these common platforms.

Jason Price: 
Russ, how about you? What would you add to that as you look at Exelon's future with private broadband networks?

Russ Ehrlich: 
I appreciate again, Ryan, with that answer, because I think one of the really unique things that comes from what we're talking about is standardization, in being able to build networks off of standard platforms, off of interoperable technologies. Enable utilities, enable our customers, enable the vendors. As Ryan just talked about, this ecosystem of endpoints now all can work to a same platform. It's going to help a utility whether it be Exelon or any of the other utilities who are looking at broadband adoption to be able to leverage in this case, let's say it's the three GPP standard that's out there. There's a very robust ecosystem of endpoint devices that can work underneath that.

Russ Ehrlich: 
So I think part of what we're seeing with this adoption of broadband and common spectrum and common network infrastructure from a lot of the big players that are out there, it really does enable group of companies to continue to grow their offerings for any utility company, for any endpoint device that might be integrated into these networks. I think when you get into that realm, you start to realize some of the benefits that we had talked about earlier on.

Russ Ehrlich: 
You alleviate the number of desperate systems that you need to have because now you can put it on one platform. You then go ahead and start to reduce your O and M expenses that are out there because you have again, a single platform that you're going to be able to operate on. It's scalable. So you have that capability of continuing to build out your infrastructure, to be able to support more and more use cases or business cases that are out there for us. So I think being able to come to this adoption of not just broadband itself, it's each of the components that build on these networks that really come back that valuable ecosystem out there that helps you drive an end to end solution to be able to support the utilities, our customers, all in at that point.

Jason Price: 
I believe so. I'd agree. I really want to thank you for your thoughtful conversation here and insight. It's been really valuable to learn more about the private broadband trends, both from the utility perspective and from the view of the solution provider. So I'm sure we'll get plenty of questions and feedback on this episode when it's posted on energycentral.com. So hopefully you both can come back, give us an update of where you are, say a year from now.

Jason Price: 
In the meantime, I want to thank you both for your time today and for sharing with the Energy Central audience in today's episode. You can always reach Russ and Ryan through the Energy Central platform where they welcome your questions and comments. We also want to give a shout out of thanks to the podcast sponsors that made today's episode possible. To Anterix. Anterix is a communications technology company where utility meets connectivity. Its transformative broadband enables the modernization of critical infrastructure for the energy and utility transportation, logistics, and other sectors of our economy. Visit anterix.com.

Jason Price: 
Once again, I'm your host Jason Price. Plug in and stay fully charged in the discussion by hopping into the community at energycentral.com. We'll see you next time at the Energy Central Power Perspectives Podcast.

 

About Energy Central Podcasts

The ‘Energy Central Power Perspectives™ Podcast’ features conversations with thought leaders in the utility sector. At least twice monthly, we connect with an Energy Central Power Industry Network community member to discuss compelling topics that impact professionals who work in the power industry. Some podcasts may be a continuation of thought-provoking posts or discussions started in the community or with an industry leader that is interested in sharing their expertise and doing a deeper dive into hot topics or issues relevant to the industry.

The ‘Energy Central Power Perspectives™ Podcast’ is the premiere podcast series from Energy Central, a Power Industry Network of Communities built specifically for professionals in the electric power industry and a place where professionals can share, learn, and connect in a collaborative environment. Supported by leading industry organizations, our mission is to help global power industry professionals work better. Since 1995, we’ve been a trusted news and information source for professionals working in the power industry, and today our managed communities are a place for lively discussions, debates, and analysis to take place. If you’re not yet a member, visit www.EnergyCentral.com to register for free and join over 200,000 of your peers working in the power industry.

The Energy Central Power Perspectives™ Podcast is hosted by Jason Price, Community Ambassador of Energy Central. Jason is a Business Development Executive at West Monroe, working in the East Coast Energy and Utilities Group. Jason is joined in the podcast booth by the producer of the podcast, Matt Chester, who is also the Community Manager of Energy Central and energy analyst/independent consultant in energy policy, markets, and technology.  

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