Advanced Metering Infrastructure Procurement and Deployment

Port Angeles, WA

Advanced Metering Infrastructure

• Know Your Business Case

• Have A Procurement Strategy

• Evaluate 1st & Ongoing Costs

• Have A Communications Plan

• New Conservation & Customer Benefits

• Summary

Outline

Business Case

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

New Time of Use Rate Design

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1011Noon13

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2223 Mid

Sundays & NERC Holidays

Lowest CostOff-Peak Hours

Only Energy Metered

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1011Noon13

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Highest CostPeak Hours

Energy & Demand Metered

Medium CostShoulder Hours

Only Energy Metered

Lowest CostOff-Peak Hours

Only Energy Metered

Monday Through Saturday

How Old Are Your Meters?

63% of all meters are 25 years old or older

What’s Your Peak Hour?

Peak Hours Shoulder Hours

New Rate DesignResidential, 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

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

Leverage Your Assets

• Use utility owned infrastructure• Move toward smart infrastructure

• Full two-way communication• Co-located hardware

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

1st Cost Considerations

Meters & disconnect metersService repairs

Demand responseInstallation

Communications systemHardware & software

Meter data management systemOutage management system

Integration services

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

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

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

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

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

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

Five Major ComponentsMi.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

AMI System Overview

900 MHz

Mi.Host(SW + Server)

City UtilityBilling Software

Customer Web BasedInterface

Customer PDA

Customer CellPhone

Metropolitan Area NetworkFiber optics

Water Heater Demand Response Controller

SmartThermostat

Mi.NodeWater meter

900 MHz

Mi.Gate (Collector)

Mi.NodeElectric meter

Mi.NodeElectric meter

Mi.NodeWater meter

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

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

I Street - 1201 Feeder22 February 2010 Average Home Demand

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0.50

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kW

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Pe

ak D

em

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kW

Time of Day

High hours 6am-2pm Holidays

What is Demand Response?

1

1 Reducing demand during peak hour, and/or 2 Shifting energy use to another time

2

Medium hours 2pm-10pm

Monday through Saturday, Excluding Holidays

Low hours

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

DR Application• Utility identifies consumer

on DR rates • Utility sends DR events• Utility Event Analysis

Utility

• Customer Registration• Customer Event

Notification• Customer Event Analysis

Customer

Mi.Net Home Area Network • The HAN Gateway is located inside the home• Speaks:

– Mi.Net 900MHz to meters– ZigBee to HAN appliances and Smart Thermostats

Key Benefits:1) Doesn’t burden every end point with cost2) Tactically deploy HAN on subscription3) Better RF performance4) Deploy AMI now w/o tie to unknown

Mi.Gate (Collector)

900 MHz

ZigBeeThermostat

Mi.Node Electric meter

Mi.Node Water meter

900 MHz

HAN Gateway

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

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

Home Energy Manager

• Foundation Smart Thermostat

• Dockable Home Energy Manager

• Program & remote control

Create DR Event

From the detailed information the customer can view reports and change alerts.

Detailed Customer Information

Consumption

Readings

Alerts

Swap information

Billing

Location

Meter Type

Customer ReportsThe customer can select different parameters and formats for the report.

Know your business caseHave a procurement strategyConsider 1st and ongoing costsNew customer benefitsNew conservation benefitsCommunicate throughout

AMI System Acknowledgements

Olympic Electric Company, Inc.

SUNGARD

Procuring and deploying an AMI

system is like parenting

Just when you get good at it

YOU’RE DONE!

ConcludingThought

Larry D. DunbarCity 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