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Business Case for AMI
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Business Case for AMI

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  1. Business Case for AMI Andrew Chastain-Howley

  2. part 1•Utility drivers• AMI Solution

  3. Water Utility drivers for AMI Water resource management • Water resource conservation • Nonrevenue water usage reduction Customer engagement • Access to timely and reliable usage information to consumers • Improved meter reading • Education through information Infrastructure management • Extending the life of existing infrastructure assets • Enhanced targeted maintenance activities • Improved prioritization of investments

  4. Water resource management Impact of irrigation inefficiencies Impact of customer leaks 5-10% waste 90 gallons a day or more via leaks Fixing leaks in 5% of American homes can save 177 billion gallons of water annually Consumers generally more concerned about the waste of water than the bill impact of leaks Source of all statistics on page: U.S. Environmental Protection Agency, WaterSense, Statistics and Facts, http://www.epa.gov/WaterSense/resources/facts.html

  5. AMI Driving Changes Insert Graph Source: Pike Research Report on Smart Water Meters Published 3Q 2010 AMI based water meters that deliver hourly consumption data via a fixed-network communications system • 2009: 8% of the 39 million water meters read remotely in the US and Canada • 2016: estimated to grow to 26%. Growth driver: Water conservation 36 U.S. states will face water shortages by 2013, according to government projections AMI provides a water agency with a wealth of new information and new engagement capability

  6. Evolution of Metering for WaterMetering technology capability has evolved over time AMR • Single ping based reads • Single consumption values • Walk-up/Drive by reads • Meter to Collection Device one-way communication • Focus on meter reading & data collection AMI • Time interval based reads • Multiple consumption values • Fixed network reads • Metering end points to utility two-waycommunication • Focus on water management & monitoring

  7. Battery powered devices Battery Life: A major difference between electric smart meters and gas or water meters Water striving for 20 year battery life Strategies to conserve power • Highly efficient power management • Low power radios • Battery devices may not act as full nodes in mesh smart meter networks Challenges • Fewer facilities available for placement than other utilities • Transmission/Distribution infrastructure underground • Data need to be transmitted from indoor or pit water meters to the collectors Lithium batteryLong-life

  8. Meter Data Management systemsWhat is an MDMS? MDMS is a software system that provides • Meter read/consumption data exception management • Automated data analytics • Data driven support for improved operational focus Supports customer engagement strategies

  9. Capabilities —Water Focus Scale of meter data with an AMI at hourly interval read capture • 720 reads a month (for one meter) • 7.2 million reads a month (for 10,000 meters) • State of California (10 million meters) 7.2 billion reads per month… MDMS provides a database repository and utility-specific business logic • Automate and streamline the complex process of storing AMI water meter data • Evaluate the quality of that water data and generate estimates of read exceptions and gaps • Deliver that data in the appropriate format to utility water billing system & to end users The critical role of an MDMS is to pre-process granular interval meter data at large volumes very quickly

  10. Water AMI – Multiple Platforms Frequency Ranges WM Manufacturers AMI Providers MDM Software Itron Landis & Gyr Neptune EverBlu 450/900 MHz Silver Spring Sensus WaterMind 956, 902-928 Trilliant Elster/AMCO Galaxy 952, 956, 902-928 ESCO (Aclara) Hersey I 952, 956, 910-920, T2 SensusFlexnet Badger I 952, 956, 910-920, ProfilePlus Cisco Master Meter 902-928 GoogleMeter MeterSense Transparent Technologies MetronFarnier 902-928 iControl Ecologic Datamatic Mi Net, Konnex, Wavenis, Mars, Technolog, Hunt…

  11. Overall AMR/AMI – many players, multiple platforms Communication Types Frequencies Case Studies Licensed 433MHz WiFi Corpus Christi 868MHz Zigbee Gothenburg Unlicensed 920MHz CDMA Severn Trent Cellphone 1800MHz GSM Bluetooth 2.1GHz 2.4GHz Narrow Band Ruidoso Direct Sequence Spread Spectrum Florida Keys Frequency Hopping Wavenis TXU Power Line

  12. Pricing Construct - $ by Category Price/meter Utility Size (# of meters) Source: B&V Enspiria Experience

  13. Operational Efficiency Benefits Non-Revenue Water • Timely leak detection & unauthorized use • Better read accuracy • Enhanced monitoring • Automated move in/out (turn-on/off) • Exception reporting • Alerts and messaging Asset Management • Better identification of distribution system leaks • Targeted resource investments Revenue Management • Reduced billing adjustments • Improved credit and collections • Time of Use (TOU) budget rates Planning • Pressure management • Capital and O& M expenditure budgeting • Enhanced workforce management Sustainability • Conservation • Reduced carbon footprint

  14. Customer Service Benefits Enhanced billing accuracy Superior customer relationships Efficient resolution of bill inquiries (high bill complaints) Conservation and efficiency Timely identification of customer premise leaks Customer information (portal) Pay-as-you-go or pre-payment options

  15. Also … Water smart grid Capabilities beyond metering Conservation Backflow detection Automatic shutoff valves Pressure & flow sensors District metering Customer & Distribution leak detection

  16. SESSION 4•AMI/MDMS Case Studies

  17. Coachella Valley Water District (CVWD) Time Of Use Study City of Palm Desert, served by Coachella Valley Water District Funded by the California Energy Commission PIER (Public Interest Energy Research) Program Purpose • Determine if water customers will shift water use out of peak period (Southern California Edison peak period weekdays, noon-6pm, June-September) • Determine if on peak water savings will result in on peak electrical savings by water agency

  18. Leak Detection During study, approximately 30% of residences experienced leaks (defined as continuous water flow for 24 hours) 28% of residential leaks required component repair or replacement Residential leaks totaled 165,000 gallons per month, 7% of total participants water usage.

  19. Customer Water Usage Reductions Customers that participated reduced water consumption as compared with control group Large on-peak reduction and smaller total reduction

  20. CVWD tou study REsults Residential customers reduced peak use and also reduced overall consumption Reduced CVWDs peak period electricity demand by about 6.5kW No statistically significant shift in Commercial, industrial and irrigation water peak or total usage; however these groups benefited from the leak detection • 30% of business participants had leaks, wasting about 6% of their total water use • About 15% of irrigation class experienced leaks, wasting about 3% of total water use

  21. Sydney Water, Australia Service area is in New South Wales, Australia where the government was encouraging electric smart meter systems. Provides water and wastewater service to 1.8M properties. Study was designed to look at synergies between water, electric and gas AMI. Initial study looked at benefit opportunities. The study initiated further trials of smart metering including a 1,000 household collaborative study with Energy Australia.

  22. Benefits outlined by SYdneyWater Source: Sydney Water AMI Program Study, November 2008 Final Report

  23. Burbank Water & Power (BWP), CA BWP serves 51,000 electric customers and 26,000 water customers Started AMI & MDMS projects in 2007: Customer Service • Broader rate options • Empowerment, engagement Operational Efficiency • Interval data enables detailed network profile • Prompt access to network events Platform for Smart Water/Grid • Leverage the MDMS for integration of AMI capabilities • Distribution of AMI data to support engineering analytics

  24. BWP —Water Reading Transition FINAL INITIAL INTERIM

  25. BWP —Hourly Water Data Benefits BWP has empowered the consumer to become proactive in their water usage • Identify and quantify their personal consumption patterns • Verify compliance with conservation measures • Minimize waste Allows BWP to offer new programs to customers to help save water Allow automated leak detection based on change in usage patterns Monitor inactive services for unauthorized consumption

  26. SESSION 5•SOLUTIONS DELIVERY OPTIONS•LESSONS LEARNED

  27. Solution Delivery Options Utility owned - Traditional approach • Complete utility control and management • Greatest impact on utility IT resources and infrastructure • Solutions allow for virtual machine implementation Hosted solution • Third party (either MDMS vendor or other) provides dedicated utility hardware in remote data center • Less impactful than utility owned but less control System as a Service (SaaS) • No dedicated infrastructure • Subscription-based/Pay-as-you-go • Unclear impact on ability to support other smart grid applications

  28. Cost Categories Project Capital Items AMI System • Meters and Modules • Communication Network • Head End System (HES) Installation Services MDMS CIS Changes & Integration Internal IT Applications and Resources Project Management Change Management O&M ITEMS AMI System • Meters and Modules • Communication Network Maintenance and Additions Information Technology • Hardware refresh • Application upgrades Ongoing System Management • Head End System operations • MDMS operations Ongoing Vendor Support

  29. General —Lessons Learned AMI & MDM Project Interaction • Properly aligning and coordinating the AMI and MDM projects is essential Mitigation Steps: • Synchronize MDM project schedule with AMI schedule – which one should go first • Involve AMI vendor(s) early at interface specification workshops • Understand the internal roles for project and get them involved in the MDM early

  30. General —Lessons Learned CIS & MDM Alignment • Properly coordinating and working through the MDM impacts to CIS is essential Mitigation Steps: • Identify development resources • Meet early to discuss impacts to CIS and associated issues • Is a CIS replacement part of the landscape? • Ensure that CIS test/QA environments will be available for MDM

  31. General —Lessons Learned Dedicating staff for project work • Inadequate staffing from either the utility, SI, or MDM vendor can cause delays • Need to identify utility staff knowledge transfer needs early • Need to monitor SI and make sure the ask/receive needed support from MDM vendor Mitigation Steps: • The ability to adjust staff and resources as problems emerge (all parties) • Require SI/MDM to identify what staff is supporting what work • Develop detailed schedule identifying resourcing needs • Good communications and coordination

  32. General — Lessons Learned Customer Service • Prioritization of meters for change-out • Coordination of activities • Impact on staffing • Notice to customers (written, verbal, FAQ, follow-up if needed) • Training Mitigation Steps: • Make customer service part of the team • Good communications and coordination • Dedicated focus on change management

  33. Some Final Thoughts

  34. Realize & Sustain Benefits – Takes More than IT Integration Technology Gap BusinessExcellence Business People Process Data Technology – Enterprise Integration • Technology, organization, process People – Change Management • Organizational, cultural, process Process – Technology Alignment • What, where, when, and how Data – Management and QA/QC • Migration/conversion, maintenance • QA/QC Enabling Technology Resistance Mechanization

  35. Summary The technologies have matured – utilities have options The industry is evolving to use AMI over AMR There are clear operational and customer benefits to move to AMI The MDMS and the related additional data provide new capabilities