Advanced Metering Infrastructure & Utility Applications...Automatic Meter Reading (AMR) Power Quality Monitoring The immediate opportunity lies in the ability to read multiple meters

Advanced Metering Infrastructure & Utility Applications

Identifying How to Create Value Across the Grid

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Sample smart grid dataCONFIDENTIAL

There are a number of aspects of advanced metering that we can investigate in order to determine what the true potential for electric utilities

• What are the opportunities associated with advanced metering and other automated distribution

applications?

• What are the different components that come into play and who are some of the system element

providers?

• How can financial analysis help us to determine the viability of differing system solutions?

Overview

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Monitoring and diagnostic systems can be used to provide power quality and control monitoring applications for different aspects of an electric distribution system

• Factors arising as a result of deregulation means utilities need to measure power characteristics in every sector of the power grid

• Increased monitoring requires additional communications infrastructure

AMR Systems

Customer Data

Distribution and Load Management

BPL Applications – Utility Applications

SCADA Systems

Substation Data

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Power monitoring and control applications have capabilities that can be fully automated to maximize efficiency and significantly reduce O&M costs

• The systems alone collect and analyze data that can diagnose and locate problems before they happen

• IEDs (Intelligent Electronic Devices) can be installed to fully automate control systems and receive maximum economic benefits

Power Monitoring and Control Applications

Demand Side Management

Distribution Automation

Automatic Meter Reading (AMR)

Monitoring and Diagnostics

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Communications networks may provide a cost-effective, bi-directional, broadband communications platform capable of delivering real-time data to the utility

• Using a communication platform can eliminate the cost barriers historically associated with the installation of SCADA, AMR and Load Management Systems

– There are no payments to telephone utilities for installation fees and rights of way– The approach eliminates the need for high-cost dedicated landlines or dial-up lines that require toll

payments– Fixed wireless networks can be very costly to install on an entire network– Network capabilities can eliminate charges associated with using cellular systems

• Efficiency can be improved by reducing the number of different architectures that need to be supported and managing all systems on one network

• The utility own the meters and the communications system and not have to rely upon another utility or provider

– No interruption of data transmission due to downed telephone or cellular systems– Maintenance and repairs scheduling is completely controlled by the utility

• Labor and operating costs associated with manual data gathering and analysis could be reduced in a variety of areas:

– Head count– Salaries/Benefits– Vehicle Fleet– Overhead

• The potential exists to reduce communications latency between devices


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There are numerous vendors that offer a variety of automated distribution functions


Vendor Utility Applications Supported

Cannon Technologies• Demand response• AMR• Substation automation

CES International • Outage detection

Sample Customers

• TVA• Louisville Gas & Electric• Kansas City Power & Light

• Southern Company• Baltimore Gas & Electric• Con Edison

DCSI • AMR• PPL• Idaho Power• Bangor Hydro

GE Power Systems • Substation Automation• Hydro Québec • Scottish & Southern• PG&E

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One of the more critical areas within the field of automated distribution lies in the emergence of Intelligent Electronic Devices (IEDs)

• IEDs offer the ability to utilize cost-effective and intelligent monitoring systems and services to the electric utility industry for monitoring the health of distribution infrastructure

– The combination of low cost sensors and communications platforms will enable numerous applications of Distribution Automation

• There are a number of typical functions supported by IEDs:– Detection and location of faults– Measurement of power quality– Identification of grounding and cable insulation issues– Detection of power theft– Detection of unanticipated loads– Confirmation of recloser, sectionalizer and other switch operations– Support capacitor-switching algorithms– Monitoring disturbed generation


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The development of network infrastructure can allow for a better communications platform to enable automated distribution applications


- Test of Underground Sensor Equipment -

Source: GridCom International

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Overall, there are a number of different players in the overall value chain


Switch Gear Manufacturers

System Integrators

Sensor Manufacturers

IED Manufacturers Networking Specialty

Products

Vendors • Cooper Power

• S&C Electric

• Kearney

• ABB

• GE

• Itron

• Fisher Pierce

• Lindsey

• Square D

• CHK

• Energy Line

• Fisher Pierce

• Domosys

• Intellon

• Richards

• GE-Harris

Applications & Products

• Reclosers

• SCADA

• Switches

• AMR

• Distribution automation

• Fault testing

• Line sensors

• Capacitor banks

• LAN • Cable joints

• RTUs

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AMR systems have been delivering increasing value with lower costs and more robust capabilities


AMR Project Payback

2.9

3.9

4.9

5.9

6.9

7.8

8.8

9.8

-

2.0

4.0

6.0

8.0

10.0

12.0

$30 $40 $50 $60 $70 $80 $90 $100

Year

s

Past meter prices

Current meter prices

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Communications

CommunicationsElectricityElectricity

• Choose suppliers• Select tariff• Monitoring usage• Respond to price

signals• Monitor appliances

and devices• Remotely program

operations• Consolidate bills• Outage detection• PQ monitoring• Security• Data

• Choose suppliers• Select tariff• Monitoring usage• Respond to price

signals• Monitor appliances

and devices• Remotely program

operations• Consolidate bills• Outage detection• PQ monitoring• Security• Data

The concept of supporting a number of distribution applications through one system has been promoted by EPRI

Source: EPRI

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Shares a vision of a total solution approach

Feature an entrepreneurial

approach

Has a utility-centric focus

Possess proven technology capabilities

When choosing a technology partner/vendor, make sure to choose a complete system that supports a number of system priorities

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Customers

Channel Provider

Technology Developers

Technology Vendor

Application Software

Developers

Data Handling Providers

Partners & AlliancesIt is very common to integrate a number of players from different portions of the overall value chain in supporting distribution technology application delivery

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Each vendor can be “graded” based on the overall fit they bring to the proposed project

Ability to Invest

Shared Vision

Utility Focus

Entrepreneurial

Technology Capability

Manufacturing Capability

Vendor A Vendor B Vendor C Vendor D Vendor E

Channel Strategy – Technology Developers

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Sample Overview

For one utility we worked with, we identified six distinct areas of opportunity within the field of “internal utility applications”

Automated Distribution

Demand Side

Management(DSM)

Distribution Transformer Monitoring

Outage Notification

Customer Service

Automatic Meter

Reading(AMR)

Power Quality

Monitoring

The immediate opportunity lies in the

ability to read multiple meters

The “beyond the meter” capability

will enable a robust

Demand Side

Management program to

be instituted

The Current and Voltage

measurement will enable

Transformer Diagnostics and Failure Prevention

The location of the

sensors in the electrical grid provides opportunity

to detect outage

information

Sensors can enable the delivery of enhanced

services that can be

marketed to the customer

base

The Voltage Sampling

Rate in the design will

enable Harmonic Distortion Analysis

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Provides a new electric meter and data collection device

Stores multiple customer energy usage data at a single location point

Accepts and stores other multi metering data at a single location point (gas and water)

Enables backhaul of collected data to NOC (Network Operation Center)

Plurality of ports for utility and communication providers (CATV, DSL, BPL, Home Security, etc.)

Enables two way interactive communication between the device, the consumer, service providers, data handlers, and the utilities

Enables “grid-smart” applications (distribution portal)

Empowers consumers to “Smart Home” technology (consumer portal)

Utility Functionality

A system was developed to support AMR, DSM, outage detection, and other utility applications

Sample Concept

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The overall electric applications revenue opportunity for the total system offers significant value

Revenue – Electric Applications

Revenue - Electric Applications

$3.40$5.78

$8.16$10.55

$12.93 $12.32 $12.61 $12.90 $13.21 $13.52

$0.65

$1.96

$3.27

$4.57

$5.88 $6.61 $6.77 $6.93 $7.09 $7.26

$0.11

$0.32

$0.53

$0.74

$0.95 $1.07 $1.10 $1.12 $1.15 $1.18

$0.96

$2.87

$4.78

$6.70

$8.61 $9.68 $9.91 $10.14 $10.38 $10.63

$1.89

$5.69

$9.48

$13.27

$17.06

$19.17$19.63

$20.09$20.56

$21.05

$-

$10.00

$20.00

$30.00

$40.00

$50.00

$60.00

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

($M

M)

Customer ServicesMonitoringRemote Meter ManagementDSMMetering

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Metering is projected to yield the largest immediate potential benefit of all of the electric applications

• Read-to-bill benefits are heavily loaded up front as deployments lead to immediate cash flow benefits

• Meanwhile, pure AMR benefits and corrections of faulty billing increase as more meters are brought on-net


Key Assumptions

2006 electric meters 1,837,193

Annual growth 2.4%

AMR value $0.53

Faulty meter rate 1.5%

Slow:fast meter rate 9:1

Net loss for slow meters 15%

Average annual bill $844

Read-to-bill benefit $5.47

Unregulated benefit rate 75%

Electric Metering Benefits

$-

$2.00

$4.00

$6.00

$8.00

$10.00

$12.00

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

($M

M)

AMRFaulty BillingRead-to-Bill

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A demand side management program could yield over $7 million in annual benefit once the entire network is equipped

• The primary measure of DSM program performance is the TRC (Total Resource Cost) of Energy Savings

• The TRC is expressed in units of Cents/kWh so that it can be directly compared to a utility’s avoided cost in order to determine the cost-effectiveness of the DSM program


Key Assumptions

Energy savings/meter 135 kWhr

Total resource cost $.032


Demand Side Management Benefits

$-

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

$7.00

$8.00

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

($M

M)

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Off cycle reads can result in significantly higher costs that normal monthly reads

• The deployment is projected to last five years, after which point approximately one million dollars is returned in value per year

Key Assumptions

Off cycle reads/year 7%

Off cycle meter read $10.00



Remote Meter Management Benefits

$-

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

$1.40

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

($M

M)

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Implementation of the system devices can support more efficient operation of distribution transformer monitoring

• Remote troubleshooting can reduce labor required for in-person visits

• Furthermore, efficiency in dispatching in the event of a transformer failure can be increased as well

Key Assumptions

Customer troubles/year 8.3%

Hours per trouble call 1.5

Labor rate $60.00

Trouble visit reduction 75%

Calls involving OT 25%

Failure rate per meter .013%

Hours per failure 4.0

Dispatching efficiency gain 10%


Distribution Transformer Monitoring Benefits

$-

$2.00

$4.00

$6.00

$8.00

$10.00

$12.00

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

($M

M)

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Customer services like surge protection and electrician services can easily be supported by a deployment of a total system solution

• The high margin nature of the business supports immediate cash flow generation

Key Assumptions

Surge penetration 1.3%

Surge monthly fee $7.99

Surge net margin 95%

Electrician sales rate 25%

Customer charge $500

Electrician margin 82%


Customer Services Benefits

$-

$5.00

$10.00

$15.00

$20.00

$25.00

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

($M

M)

Surge SuppressionElectrician Services

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Going forward, the next steps will be to identify how to proceed with a metering and automated distribution strategy

• Confirm management interest in utility applications – and the nature of the interest

• Build the business case to support a viable strategy

• Begin discussions with technology vendors to evaluate technology fit

• Initiate tests of technology options

• Customize analysis of opportunity for your community

• Identify partnerships with key operators – ISPs, CLECs, network integrators – and negotiate terms and roles

• Project manage the deployment of the network

Next Steps

There may exist an opportunity for cities to work together to jointly evaluate the potential of these kinds of system approaches

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Questions?

Questions

David Shpigler

(845) 348-7801

[email protected]

www.shpigler.com

Documents

Advanced Metering Infrastructure & Utility Applications...Automatic Meter Reading (AMR) Power Quality Monitoring The immediate opportunity lies in the ability to read multiple meters