Over the course of August and September 2017, the United States was hit with major storm systems which had a huge impact on regional power grids.\u00a0 Hurricane Harvey inflicted severe damage along the Texas Coast, Hurricane Irma barreled through Florida, and Hurricane Maria devastated Puerto Rico.\u00a0 The latter of these storms left Puerto Rico in the dark for over 55 days, representing the largest power outage in the United States in over a decade and contributing to the over 50 deaths [1].\u00a0 These are not the first major storms affecting these regions, but according to David Katz of CFO Magazine, \u201cthere was something different about this year. Maybe it was the awareness that the Gulf of Mexico\u2019s waters were \u2018freakishly warm\u2019 this summer, as the Chicago Tribune reported in March, and that such warming could indeed intensify storms originating in those waters\u201d [2]. \u00a0As companies responsible for the power grid think about the effects of climate change, such as intensifying storms, leaders need to focus on how to maintain service in the event of catastrophes. One company currently dealing with a storm\u2019s aftermath is CenterPoint Energy (\u201cCenterPoint\u201d).<\/p>\n
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CenterPoint, headquartered in Houston, Texas, owns and operates electric transmission and distribution facilities, natural gas distribution facilities, and supplies natural gas to commercial and industrial customers [3].\u00a0 In the aftermath of Hurricane Harvey, 950,000 customers experienced power outages due to flooding as a result of 16 of 200 substations (transform voltage from high to low) being flooded. The company was faced with analyzing it\u2019s response to the storm and how it could improve its ability to supply power to customers. \u00a0When reflecting on the effects of the storm, CFO, William Rogers, also realized that the effects could have been worse had digital meters not been installed in 2009, enabling CenterPoint to quickly pinpoint where outages were occurring and quickly reroute power to those areas through alternative substations [2].<\/p>\n
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As the company looks forward, one opportunity to mitigate the risk, as stated by SVP, Kenneth Mercado, is raising facilities aboveground.\u00a0 Currently, most substations are located belowground and experience electrical shorts when flooding occurs leading to power outages.\u00a0 By raising the facilities aboveground you are protected from flooding; however, this also exposes the facilities to the potential adverse effects of hurricane force winds. As such, CenterPoint needs to be very thoughtful about restructuring infrastructure [2].\u00a0 Another factor when evaluating moving substations is the cost. \u00a0For example, following Superstorm Sandy in New Jersey, The Public Service Electric and Gas Company (PSE&G) launched a 5-year $1.2 billion project to elevate 18 substations that flooded.\u00a0 Additionally, Jersey Central Power and Light (JCP&L), invested $1.5 billion to upgrade 20 substations through installing flood barriers, elevating equipment, and installing real-time monitoring devices [4].\u00a0 CenterPoint had 16 failed substations, and both PSE&G and JCP&L highlight the cost of renovating a similar number of substations.<\/p>\n
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CenterPoint needs to examine where the current power grid and substations are located and optimize for different natural disasters resulting from climate change.\u00a0 When power outages occur, CenterPoint looks to reroute power from other substations.\u00a0 To ensure this can take place effectively, back up plans should include a source of power from a substation at a different elevation (i.e. if the primary power for an area is from an underground substations, then an aboveground substation should be the backup plan).\u00a0 Implementing changes to the power grid will be costly and take place over a longer time horizon, but the question remains how to determine the optimal layout.\u00a0 One option to determine the optimal layout of the power grid, and how to mitigate other weather-related fallout, is a predictive model that is being developed by Texas A&M Regent Professor, Dr. Mladen Kezunovic.\u00a0 According to Dr. Kezunovic, Big data such as \u201cutility company’s operational records, weather forecasts, altitude and vegetation around the power systems can be used to customize the applications of the model\u201d [5]. \u00a0If the model can be customized to determine which areas are most susceptible to outages based on different natural disasters, then CenterPoint will have a blueprint detailing where to invest resources.\u00a0 Currently, CenterPoint is partnering with Texas A&M and providing data to prove the model\u2019s validity for vegetation trimming.\u00a0 Given that the data is already being provided, the aforementioned customization should be a near-term reality [5].<\/p>\n
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In the last three years, Houston has seen two 500-year floods and one 1,000-year flood (as classified by FEMA), and CenterPoint needs to have a better understanding of how superstorms will continue to impact the region.\u00a0 More work needs to be done around understanding the cost associated with upgrading the power grid.\u00a0 Additionally, is upgrading the power grid more than just a supply chain issue, but a humanitarian issue?\u00a0 And if it is a humanitarian issue, should the government help pay for the upgrades?<\/p>\n
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References<\/p>\n
[1] Lu, Denise and Alcantara, Chris. \u201cMost of Puerto Rico Has Been in the Dark For.\u201d The Washington Post<\/em>, November 15, 2017, https:\/\/www.washingtonpost.com\/graphics\/2017\/national\/puerto-rico-hurricane-recovery\/?utm_term=.fdc0a69951b7, accessed November 2017.<\/p>\n [2] Katz, David M. \u201cThe Weight of Water.\u201d CFO Magazine<\/em>, November 6, 2017, http:\/\/ww2.cfo.com\/risk-management\/2017\/11\/the-weight-of-water-flooding\/, accessed November 2017.<\/p>\n [3] CenterPoint Energy. February 28, 2017 Form 10-K. [http:\/\/investors.centerpointenergy.com\/secfiling.cfm?filingID=1130310-17-6&CIK=1130310], accessed November 2017.<\/p>\n [4] O\u2019Neill, James M. \u201cSuperstorm Sandy: 5 years later, New Jersey is Still Storm Proofing.\u201d NorthJersey.com<\/em>, October 25, 2017, http:\/\/www.northjersey.com\/story\/news\/new-jersey\/2017\/10\/25\/superstorm-sandy-5-years-later-new-jersey-still-storm-proofing\/713669001\/, accessed November 2017.<\/p>\n [5] \u201cResearchers develop model to predict and prevent power outages using big data.\u201d EurekAlert! The Global source for Science News. <\/em>July 26, 2017, https:\/\/www.eurekalert.org\/pub_releases\/2017-07\/tau-rdm072617.php, accessed November 2017.<\/p>\n","protected":false},"excerpt":{"rendered":" With the increasing number of superstorms resulting from climate change, utility companies, such as CenterPoint Energy, are faced with securing power substations from storm surges and flooding. <\/p>\n","protected":false},"author":9704,"featured_media":25150,"comment_status":"open","ping_status":"closed","template":"","categories":[3916,1218,1240],"class_list":["post-25149","hck-submission","type-hck-submission","status-publish","has-post-thumbnail","hentry","category-centerpoint","category-climate-change","category-utilities","hck-taxonomy-organization-centerpoint-energy","hck-taxonomy-industry-utilities","hck-taxonomy-country-united-states"],"connected_submission_link":"https:\/\/d3.harvard.edu\/platform-rctom\/assignment\/rc-tom-challenge-2017\/","yoast_head":"\n