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September 13, 2010

Southwest Renewable Energy Conference Smart Metering 101 Salt River Project Smart Meter Implementation. September 13, 2010. Economic Considerations. Information. SRP Pilot Project. Assessed smart meter technical viability and benefits Smart meter performance and metrics

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September 13, 2010

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  1. Southwest Renewable Energy ConferenceSmart Metering 101Salt River ProjectSmart Meter Implementation September 13, 2010

  2. Economic Considerations Information

  3. SRP Pilot Project • Assessed smart meter technical viability and benefits • Smart meter performance and metrics • Self healing and network capabilities • Business impacts, benefits and opportunities • Partnered with Elster and self-implemented pilot effort using trained SRP employees • Scope • Elster Energy Axis system with ~500 REX meters • Contained service area of single family, patio and apartment residences

  4. SRP Pilot Project • Evaluation and Testing activities: • Billing read accuracy – standard, TOU and demand metering • Meter read performance – cumulative ‘received’ energy / voltage • Remote handling of service requests • Tamper, error and outage features and reliability • Self healing and multi-level repeating functionality • Remote programming • Network performance with different gatekeeper configurations • Network time synchronization • Verified data gathering and system features at 99.9%

  5. Benefits – Business Case • Labor Savings – Field activities • Reduced manual meter reading • Substantially reduced field visits with back office support • Reduced maintenance • Safety • Billing Efficiencies – provided flexibility • Flexible reads / billing dates with reduced estimation or support • Rate changes without meter exchanges • Ease for bill adjustments and validation • Summary billing opportunities • Revenue assurance –improved detection/monitoring • Potential for distribution management and operations • Outage restoration • Load forecasting and distribution loading/loss studies

  6. Implementation • Moderate and sustained smart meter installation • Implemented by meter route for smooth transition • Targeted distant or hard to reach territories first • Safety considerations • Considered capital constraints and existing meter life • Meter quality / testing program • Established Customer notification program • Concurrent integration with customer relationship system for billing and orders – recognized operating efficiencies • Customer focus – empowered the Customer to better manage usage • Provided Customers with information and benefits via SRP web portal - MyAccount • Expanded TOU rate offerings with ‘Smart data’ enabled rate design targeted at summer critical peak (EZ-3)

  7. 7

  8. SRP e-Notification Dear Christoffer, Your SRP electric meter has reported an outage at your Main Street residence. Please visit www.srpnet.com for more information. Scott Trout Manager, SRP Residential Customer Services SRP e-Notification Dear Christoffer, Your SRP electric usage has reached your preset threshold of $200. Please login to www.srpnet.com to view your daily usage totals. Scott Trout Manager, SRP Residential Customer Services

  9. Federal Stimulus Program ADAM

  10. DOE SGIG Grants • Federal Recovery Act funded $3.4 billion in Smart Grid Investment Grants (SGIG) • SGIG managed and implemented by U.S. Dept. of Energy • SRP received $56.9 million grant • Purpose: • Accelerate the modernization of the nation’s electric grid • Promote investment in smart grid technologies • Recipients selected through a competitive merit-based review process • 100 awards out of approximately 400 applications • SRP received 1 of only 19 awards > $50 million

  11. Term of 5 years • Performance period of 3 years • Additional reporting period of 2 years • DOE to reimburse SRP up to 50% of eligible project costs on a monthly basis • Key focus areas: • Compliance with DOE and Audit requirements • Analysis & reporting of Energy Efficiencies • Meter Data Management System (MDMS) • Meter Asset Management System (MAMS) • Meter roll-out and management of the business requirements, needs and impact

  12. Preparation FY11 FY12 FY13 • Planning • DOE Plan creation • Compliance readiness • ARRA reporting • Program Management, Compliance & Reporting • Execution, Metrics & Benefits & Cyber Security Planning • Program, Project and Risk Management • Compliance management and ARRA and DOE reporting (earned value) • Analysis and Reporting of reporting Program Management • Deploy sparse network • Deploy 74K smart meters • Deploy 163K smart meters • Monitor Mesh Network • Elster Upgrades • Manage Inventory • Deploy 170K smart meters • Upgrade smart meters • Monitor Mesh Network • Upgrade Elster • Manage Inventory • Deploy 145K smart meters • Upgrade smart meters • Monitor Mesh Network • Upgrade Elster • Manage Inventory Smart Meter Deployment • Source selections • Vendor negotiation • Enterprise data requirements & modeling • Implement MDMS • Elster meter data • MAMS product requirements • MDMS CIS Interface • MDMS complex bill & process requirements • MDMS Weather data • MV90 / Other meter data • Web presentment - interval data • MAMS RFI/negotiation • Implement MDMS complex billing & process services • Implement MAMS • MAMS interfaces to SRP financial systems Meter Data & Asset Management • Load Study • Transformer Metering Pilot • EV Pilot reporting begins • Load Study • Transformer Metering Pilot • EV Pilot reporting • Share additional findings if warranted Smart Grid Utilization Analysis

  13. Smart Grid Utilization • Transformer Metering Pilot • Electric Vehicle Submetering Pilot • Load Study and comparison for new Time of Use rate ‘EZ-3’

  14. SCADA Protection Integration and Standards Operations Outage Management Outage Management Asset Management EMS Substation Automation DFA Security NERC/CIP NetworkManagement NOC Data Management MDM AMI CIM Synchrophasors Customer SCADA Protection

  15. EA_MS Server Distribution Transformer WAN Solar Meter Billing Meter Solar Disconnect Collector Level 1 Level 2 Level 1 Level 2 EV sub Meter Level 3 Customer Load Billing Meter

  16. West CompleteApril 2011; 684,000 REX Meters

  17. Central CompleteNovember 2011; 783,000 REX Meters

  18. East Valley CompleteJune 2012; 886,000 REX Meters

  19. MDMS – What is it? Fundamentally a data repository to centrally store and effectively manage the vast amount of metered data for the orders and billing processes - And more - Provides a mechanism to validate, edit and estimate data and provide timely, reliable, and consistent information to multiple enterprise systems and operational areas.

  20. MDMS – Enterprise Meter Data • Outage Management • Transformer Load Management • Distribution Planning and Operations • System Losses / Voltage Control • Load Forecasting • Asset Management

  21. MDMS Selection Considerations • Provide for vertical for end-to-end Smart Grid offering • Proven meter data management system • Innovative communication • Experience with end customer systems • Tight coupling with Elster systems • Direct communication protocols to metering devices • Flexible architecture for system integration • Minimize deployment costs • New applications can added without core development • Allows for future business needs

  22. The Results

  23. Customer • Access to daily TOU and via the web e-notification alerts allow customers to manage their usage • E-notification alerts available • 20% increase in TOU rate participation with smart meters – helping to shift from on-peak to off-peak and reduce load demands • Customers leverage smart meters for additional savings via new TOU price plan (EZ-3)

  24. Over 748,000 orders completed and field visits avoided Remote Orders Completed

  25. Over 249,000 labor hours saved Labor Hours Saved

  26. Over 1.3 million miles saved MilesSaved

  27. Over 135,000 gallons in fuel savings Fuel Saving - Gallons

  28. Safety • 39% decrease in personal injuries • 10% reduction in vehicular accidents • Improved revenue recovery from operations

  29. Other Learnings • Assume and allow for advances in technology • Phased approaches • Investment considerations (e.g. meter life, infrastructure) • Strong supplier partnerships are key • Consider the enterprise in establishing new rules • Plan for knowledge transfer and intellectual property retention

  30. Economic Considerations Information

  31. Questions

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