Advanced Metering Infrastructure Procurement and Deployment

1. Advanced Metering Infrastructure Procurement and Deployment

3. Port Angeles, WA

7. Outline • Advanced Metering Infrastructure • Know Your Business Case • Have A Procurement Strategy • Evaluate 1st & Ongoing Costs • Have A Communications Plan • New Conservation & Customer Benefits • Summary

8. Business Case • Customer needs • Rate design needs • Federal/state mandates • Aging meters • Meter reading costs • Cost saving

9. New Time of Use Rate Design

10. How Old Are Your Meters? 63% of all meters are 25 years old or older

11. What’s Your Peak Hour? Peak Hours Shoulder Hours

12. New Rate Design • Residential, general service, non-profit customer classes • Winter & summer seasonal energy rates • Peak, off-peak, and shoulder periods • Base charge • Demand response credits • Demand metering & charges only for large commercial

13. Your Procurement Strategy? • Competitive negotiation or low bid • Turn-key or multi-year deployment • Vendor or utility installation • What’s your risk tolerance? • Demand response

14. Leverage Your Assets • Use utility owned infrastructure • Move toward smart infrastructure • Full two-way communication • Co-located hardware

15. Procurement Suggestions • Stay technology neutral • Hold interviews and demonstrations • Check references and conduct site visits • Know what you are willing to agree to • Construction phases • 3rd party issues

16. 1st Cost Considerations • Meters & disconnect meters • Service repairs • Demand response • Installation • Communications system • Hardware & software • Meter data management system • Outage management system • Integration services

17. Ongoing Cost Considerations • License fees • Pole attachment fees • Software maintenance fees • Server and switch depreciation • Customer information system fees • Network services (fiber optics, GPRS) • Consider life cycle costing

18. AMI System Benefits • Metering & meter reading accuracy • Reduced number of estimates & misreads • Reduced difference between wholesale power purchases and customer sales • Reduced difference between water production and customer sales • Reduced theft of service & meter tampering issues

19. AMI System Benefits • Reduced meter reading operating expenses • Reducing or eliminating final and rereads by personnel • Providing the ability for remote electric and water connects and disconnects • Allow the City to… • Comply with federal and state unfunded mandates • Enhance rate payer equity • More promptly respond to customer inquiries • Zone metering data and right size meters • Provide better service to our customers by… • Eliminating long and short reading periods • Being able to address billing and usage concerns more accurately • Fewer home and yard intrusions

20. AMI System Benefits • Provide customers new tools… • Customer portal for consumption information • Involvement in managing utility cost • High usage & demand response notice • Outage or “loss of power” notice • Leak detection and reverse flow notices • Budget tracking/setting • Provide customers voluntary demand response… • Water heaters • Smart thermostats • Hybrid electric vehicle charging • Other future ready appliances and devices

21. Communications Plan • AMI meters are highly accurate so everyone pays for what they use • it’s fair • The AMI system allows the City to run its utilities efficiently and at the lowest cost possible • it’s financially responsible • Customers can have more control over their bill • It’s future ready

23. Smart meter installation credited with finding fire risk Port Angeles resident Donna Rowan looks at the electric meter on the side of her house after utility workers discovered that her old meter was dangerously hot http://www.peninsuladailynews.com/apps/pbcs.dll/article?AID=2011306269996

24. Five Major Components Mi.Node Radio transmitter and receiver for electric meters Mi.Node Radio transmitter and receiver for water meters Mi.Gate Data collector Mi.Host Host server and User interface Mi.Portal Voluntary customer demand response

25. AMI System Overview Mi.Node Water meter Smart Thermostat Metropolitan Area Network Fiber optics 900 MHz Mi.Gate (Collector) Mi.Node Electric meter Mi.Node Electric meter 900 MHz Water Heater Demand Response Controller Mi.Host (SW + Server) City UtilityBilling Software Mi.Node Water meter Customer CellPhone Customer Web Based Interface Customer PDA

27. What is Peak Demand? • Demand (kW) is the highest peak hour rate of energy consumed over a meter reading period • Current wholesale demand rates range from $1.32/kW to $2.30/kW, depending on month • New wholesale demand rates are about $8.50/kW

28. What is Demand Response? • Changes in consumption patterns in response to changes in electricity prices during a specific time period • DR reductions are usually needed during peak times in the winter and summer

29. High hours 6am-2pm Holidays What is Demand Response? 1 Reducing demand during peak hour, and/or 2 Shifting energy use to another time 1 2 Medium hours 2pm-10pm Low hours Monday through Saturday, Excluding Holidays

30. Voluntary Demand Response • Customer-Side* • Residential DR Pilot (600 customer units) • Water heaters, home area networks, thermal storage • Residential Wind Integration Pilot (41 customer units) • Water heaters, thermal storage • Commercial & Industrial DR Pilot (8 customers) • Open Automated Demand Response Communication Standards (OpenADR) communications protocol • Industrial Wind Integration Pilot (1 customer) • Utility-Side • Voltage Optimization (VO) • Use AMI to monitor and report lowest end-of-line feeder into City’s SCADA system * Made possible with the support of the Bonneville Power Administration

31. DR Application

32. Mi.Net Home Area Network HAN Gateway Mi.Node Electric meter 900 MHz Mi.Gate (Collector) • Key Benefits: • Doesn’t burden every end point with cost • Tactically deploy HAN on subscription • Better RF performance • Deploy AMI now w/o tie to unknown ZigBee Thermostat 900 MHz Mi.Node Water meter • The HAN Gateway is located inside the home • Speaks: • Mi.Net 900MHz to meters • ZigBee to HAN appliances and Smart Thermostats

33. Load Control Switch • Reduces peak demand while limiting customer impact • During a DR event, the water heater will be turned off • Water heater reheats to set-point after DR event completion • Load control switch can also be used to control other devices • DR credits based on participation • Equipment will be installed at no-cost to customers

34. Smart Thermostat • Reduces peak demand while limiting customer impact • Simple user interface for thermostat programming and DR event overrides • During a DR event, the setpoint name on the home screen will be replaced with an Event Indicator and a blue LED will light up the screen • The modified target temperature appears below Event Indicator • Thermostat returns to programmed set-point after DR event completion • DR credits based on participation • Equipment will be installed at no-cost to customers

35. Home Energy Manager • Foundation Smart Thermostat • Dockable Home Energy Manager • Program & remote control

36. Create DR Event

37. Detailed Customer Information From the detailed information the customer can view reports and change alerts. Consumption Billing Readings Location Alerts Meter Type Swap information

38. Customer Reports The customer can select different parameters and formats for the report.

39. Know your business case • Have a procurement strategy • Consider 1st and ongoing costs • New customer benefits • New conservation benefits • Communicate throughout

40. AMI System Acknowledgements SUNGARD Olympic Electric Company, Inc.

41. Concluding Thought • Procuring and deploying an AMI system is like parenting • Just when you get good at it • YOU’RE DONE!

42. Larry D. Dunbar • City of Port Angeles, Washington • Deputy Director of Public Works & Utilities • 360-417-4710 or ldunbar@cityofpa.us • Website www.cityofpa.us • AMI System RFP http://olypen.com/copa