AMI Workshop January 31, 2010

Don Schlenger, VP, RW BeckDave Hughes, PE, American Water

Antony Green, VP, GL Industries

AMI for Water Utilities:

Best Practices for Selection,

Acquisition & Implementation

• Literature review, utility case studies, vendor interviews

• AMR/AMI topology

• Key elements of AMR/AMI system design

• Key elements of AMR/AMI implementation

• New applications

• Business case and cost/benefit tools

• Pilots: Distribution system leak detection, rapid backflow

detection, automatic shutoff valves, mesh technology

• Workshops, guidance document

Workshop ObjectivesWorkshop Objectives

• Brief review technology definitions

• Review analytical tools and approaches

– Operations (Leak detection, meters)

– Customer service

– Conservation

• Share perspectives, experiences with

procurement, implementation

• Solicit input for research needs

Today’s Schedule

• 1:00 - Welcome and Introductions

• 1:15 - Research Project Overview

• 1:30 - Technology Update, Customer Service Operation Enhancements

• 2:10 - AMI and NRW reduction

• 2:35 - Discussion

• 2:45 - BREAK

• 3:00 - AMI and Conservation

• 3:30 – AMR/AMI Procurement and Implementation

• 3:50 – Discussion

• 4:00 - CONCLUDE

Ground RulesGround Rules

• Schedule

• Roles

• Opinions

• Documentation

• Water Research Foundation In-kind

contribution

Project Premise: Technology, Project Premise: Technology,

Implementation Strategy and Business Implementation Strategy and Business

Case are InterrelatedCase are Interrelated

Economics/Bus. Plan

Drivers-Operating Costs-Customer Service-Conservation-Growth, etc.

Data Reqs.-Meter reading interval-Data reporting interval-Tamper, leaks,

backflow, etc.

Technology DeploymentStrategy

Goals,Objectives

ImplementationPlan

ExistingSystems

-Meter Reading-CIS-SCADA-Etc.

FinancialSituation

MarketPenetration

Time

100%

EarlyAdopters

MatureMarket

CommodityNear universalInformal business cases

“Stretch” business casesSevere problemsTechnology fever

EmergingMarket

Formal, moresophisticatedjustifications

AMI

Industry Transforming to AMI, Industry Transforming to AMI,

Business Cases More SophisticatedBusiness Cases More Sophisticated

Some Major Driving ForcesSome Major Driving Forcesfor Water Utility AMI/AMRfor Water Utility AMI/AMR

• Cost control or reduction in areas traditionally labor intense areas

• Water loss reduction and revenue recovery

• Customer service issues

• Conservation

• Reading frequency versus perceived cost of water and wastewater bills

• Asset management – meters, distribution system

• Labor issues

• Management issues

• Technophilia; “meter envy”

Traditional AMR/AMI Benefit AreasTraditional AMR/AMI Benefit Areas

• Meter reading– On-cycle reads – labor, vehicles, supplies, equipment– Rereads– Off-cycle reads – finals

• Investigations– High consumption– Low consumption

• Customer service– Processing estimates, rereads– Handling reading anomalies– Handling customer complaints related to meter reading

• Credit adjustments over water waste, bill errors– Time to process– Revenues loss

• Tamper and theft reduction

Evolving AMI Feasibility StudiesEvolving AMI Feasibility Studies

• Enhanced applications – e.g., watchdog services

• Add-on technology – e.g., leak detectors

• Synergies – non-revenue water balance

• Risk analysis – technology and business

• Scenario analysis – deployment schedules, ownership and financing strategies

• Capture externalities – e.g., wastewater agency benefits

• Monetize intangibles – e.g., reduced traffic congestion, improved collections

AMR/AMI TermsAMR/AMI Terms

• AMR - automated collection of readings from customers’ meters to a remote central location

• Interval Metering - records usage on predetermined or remotely configurable time intervals

• Advanced Metering System - Records usage in time differentiated registers; other functions

• AMI – Advanced Metering Infrastructure – not just two way, using system for more than reads.

• Ancillary devices

– Actuators (e.g., shut-off valves)

– Sensors (e.g., leak detectors)

Meter

RepeaterComLink 1

ComLink 2

Hardware

ApplicationSoftware

CIS Host Controller

First Hop (“LAN”) Backhaul (“WAN”)

Receiver

Encoder

Transponder

MIUDataColl.Unit

OtherSystems

Components of an Advanced Components of an Advanced

Metering SystemMetering System

Other Sensor

EncoderTransponder

Intelligent CPU, Memory

Meter DataManagement

System(Database)

Actuator

Mobile (and Handheld) Radio AMRMobile (and Handheld) Radio AMR

• Relatively low cost

• Flexible deployment

• Provides high read success

rate

• Meter reader present

• Simple backhaul

• Advanced mobile units can

store data and alarms

• GPS, mapping software,

route management

• Successful installation

readily confirmed

Photo courtesy Datamatic

Photo courtesy Badger

Photo courtesy Itron

Copyright Datamatic

Fixed Network Radio AMIFixed Network Radio AMI• Redundant data collectors

• Multiple readings per day (no added cost), profiling capability

• Two way communication with MIU

• Easy aggregation of meter readings

• Tamper, leaks, etc., detected quickly

• Data management required!

• Collector siting– Each vendor’s DCU has different range, capacity

and unit cost

– Site candidates: tank tops, building roofs, power poles, antenna masts

– Access for maintenance

– Cost of acquiring or leasing sites

– Power supply (solar, street light, AC)

– Repeaters may be available if needed

Photo courtesyItron

Photo courtesyAclara

Photos courtesySensus

Mesh Network Architecture Extends Mesh Network Architecture Extends

the Reach of AMIthe Reach of AMI

MIU DCU

MIU

MIU

MIU

MIU

DCU

DCU

DCU

Control

ComputerReceiver

MIU

MIU

MIU MIU

MIU

MIU

MIUMIU

MIUMIU

MIU

MIU

“Modified” or “partial” Mesh Network

“Full”MeshNetwork

Backhaul Options, ConsiderationsBackhaul Options, Considerations

• Bandwidth (speed) needed for how long?

• Uplink versus downlink volumes

• Public carrier vs. utility/city-owned vs. AMI proprietary

• Cost (e.g., $20-100/mo per collector for cell)

• Connection to control computer

• Hardware connections

• Performance guarantees

• Cell: GPRS, GSM, CDPD (Cingular, T-Mobile) or CDMA (Verizon/Sprint)

• PCS

• Ethernet

• Wi-Fi

• Fiber

Photo courtesyBadger Meter

AMI Software AMI Software –– Meter Readings and Meter Readings and

Other Data, System ManagementOther Data, System Management

• On- and off-cycle reads

• Aggregation applications

• Meter, consumption database

• High and low alarms

• Standard and custom reports

• Queries

• System security, backup

• MIU communications• Meter tampering• Network collector alarms• Network collector

communications• Data discrepancies• Remaining battery life

Copyright Itron

Meter Database/Meter Data Meter Database/Meter Data

Management System ConsiderationsManagement System Considerations

• Far more than revenue cycle reads

• Multiple metering systems

• Provider options

• Utility (or 3rd party) builds it

• Acquired from MDMS provider

• Turnkey by AMI provider

• Integration with other systems

• Phases, timing of deployment

• Use for installation project control?

• Operation

• Applications development

• Maintenance & upgrade

• Reports, custom queries, data mining

• Migratability

DataData--Centric Characterization of AMI Centric Characterization of AMI

SystemsSystems• Frequency of meter sampling

(e.g., monthly, hourly)• Synchronized intervals vs. non-

synchronized• Frequency of data transmission

(e.g., daily, monthly)• Latency – time between read and

meter reading to get to accessible database

• Data granularity/resolution/precision

• Read success rate• Ancillary data (sensors)• Control capabilities (actuators)

New Technologies Expanding AMI New Technologies Expanding AMI

ApplicabilityApplicability

• Distribution system leak detection• Conservation• Backflow detection• Automatic shutoff• Sensors

Discussion: AMI Technology IssuesDiscussion: AMI Technology Issues

• What constitutes a smart meter? Where is the best

place for the “intelligence”?

• One-way or two-way?

• How do you evaluate additional features versus

additional cost?

• City-wide telecommunications system, e.g., Wi-Fi)

• What other field data do we want to collect?

• Others?

AMI Customer Service Improvement AMI Customer Service Improvement

ConsiderationsConsiderations• 1st-tier operational benefits

– Meter reading– Call center– Field service

• 2nd-tier operational benefits– Adjustments– Collections

• Utility-facing versuscustomer-facing– Tamper and theft– Backflow monitoring

• Enhanced services– Submetering– Self-service, customization– Watch dog services

Account Service Account Service Calls Reduced Calls Reduced ~60%~60%

Data courtesy Boston Water and Sewer Commission

0 5,000 10,000 15,000 20,000 25,000

Estimated Bills

High Consumption

Meter Problems

Liens/Sale Reads

Operations

General Billing

2005

2000

0 5,000 10,000 15,000 20,000 25,000 30,000 35,000

Sale Read

Special Read

Meter Test

Meter Invtgt/Rpr

ARB Only

ARB Repair

2005

2000

Meter Reading Meter Reading & Billing Work & Billing Work

Orders Reduced Orders Reduced ~80%~80%

Consumption Profile Shows Evidence Consumption Profile Shows Evidence of Possible Leakof Possible Leak

0

10

20

30

40

50

60

70

80

90

100

1 AM

2 AM

3 AM

4 AM

5 AM

6 AM

7 AM

8 AM

9 AM

10 A

M11

AM

12 P

M1

PM2

PM3

PM4

PM5

PM6

PM7

PM8

PM9

PM10

PM

11 P

M12

AM

Gal

lons

Irrigation

Leak

• First call resolution improved

• Questions about consumption addressed in real time

• Enhanced, detailed information

• Consistent policies and enforcement

• Proactive notification, “watchdog”

• Self-service and self-determination– Web-based services

– Selectable read date, billing frequency

– Optional pricing schedules, rates

• Additional services– Conservation audits

– Submetering

AMI Supports Enhanced Customer ServiceAMI Supports Enhanced Customer Service

AMR/AMIAMR/AMI--Based Water RecoveryBased Water Recovery

• Meter Registration

• Distribution System Leak Detection

MonitoringMonitoring

• Theft

• Backflow

Meter Age/Registration ChangeMeter Age/Registration Change• How long should meters be left in service?

• Function of: meter cost, installation cost, cost of water (&

WW), volume passed, inflation rates, discount rate, rate of

accuracy decline

• Most meters last a long time, only a few fail

(Data courtesy Kansas City Water Services Dept.)

y = -0.2654x + 101.15

0

20

40

60

80

100

0.00 5.00 10.00 15.00 20.00 25.00 30.00

Yrs in Service

Acc

urac

y

Meter Age/Registration ChangeMeter Age/Registration Change

• Select change interval to minimize total cost of lost

water and meter replacement

• If AMR/AMI, replace or retrofit?

• Where are these meters located?

• Is pattern/strategy repeated next time?

• Synchronization of future MIU replacement with

future meter replacement• MIU lasts 20 years, meter lasts 20 years?

• MIU lasts 13 years, meter lasts 25 years?

• MIU lasts 13 years, meter lasts 20 years?

Large Meter Replacement Doubled Large Meter Replacement Doubled Total RegistrationTotal Registration

Data courtesy San Diego Water Department0.0

50.0

100.0

150.0

200.0

250.0

300.0

350.0

1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43

Pre-Exchange Actual ADC

Post-Exchange ADC

Many Compound Meters Exhibit Many Compound Meters Exhibit Performance IssuesPerformance Issues

Compound Meters Ideally at 60% High and 40% Low

6" Compound Meters

0

10

20

30

40

Low Register"Dead"

>75% ThroughHigh Register

25-75% ThroughHigh Register

<25% ThroughHigh Register

High Register"Dead"

No.

of M

eter

s

Meter too large?

AMI Can Support Large AMI Can Support Large Meter ManagementMeter Management

• Right-sizing analysis

• Right-typing analysis

• Flow profile (depends on time interval)

-

5,000

10,000

15,000

20,000

25,000

30,000

3/2/2

009

3/3/2

009

3/4/2

009

3/5/2

009

3/6/2

009

3/7/2

009

3/8/2

009

3/9/2

009

3/10/

2009

3/11/

2009

3/12/

2009

3/13/

2009

low flow meter

high flow meter

-

5,000

10,000

15,000

20,000

25,000

30,000

3/2/2

009

3/3/2

009

3/4/2

009

3/5/2

009

3/6/2

009

3/7/2

009

3/8/2

009

3/9/2

009

3/10/

2009

3/11/

2009

3/12/

2009

3/13/

2009

low flow

high flow

AMI Can Help Track and Identify NonAMI Can Help Track and Identify Non--Revenue WaterRevenue Water

Controllable NRW constant level suggests source is leakage

Metered Usage

NRW

Supply to system

Variable NRW level suggests source is meter error or theft

Metered Usage

NRW

Supply to system

Using AMI for Distribution System Using AMI for Distribution System

Acoustic Leak Detection (ALD)Acoustic Leak Detection (ALD)

• Acoustic monitoring systems interface to AMI systems to provide routine leak detection– FCS Permalog attaches to valve nut in street, transmits

separately from meters

– Gutermann Zone Scan units attach to valve nut, transmitter housed in valve box. Developing potential remote correlation capability.

– Itron MLOG units attach to service line near meter

• Incorporated with fixed network, can go mobile

• Find small leaks sooner, when they are easier to repair

• Reduce crews or improve service level

ALD Vendors Provide Software to ALD Vendors Provide Software to

Interpret Data, Help Locate LeaksInterpret Data, Help Locate Leaks

Evaluating the Potential Benefits/Costs Evaluating the Potential Benefits/Costs

of AMIof AMI--Based ALDBased ALD• Significant leakage and non-revenue water?

– Minimal payback if there are few leaks to find

• What kind of leakage?– Acoustic monitoring best at finding hidden leakage

• How much are leaks costing?– Beneficial if your water is expensive and/or scarce.

• Staff/crews available to pinpoint, repair promptly?

MOBILE AMR/MLOG Reduction

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

0.0%

3.0%

6.0%

9.0%

12.0%

15.0%

18.0%

21.0%

24.0%

27.0%

30.0%

33.0%

36.0%

39.0%

42.0%

45.0%

48.0%

NRW change from MOBILE AMR

NRW change from FIXED NETWORK AMR

INCREMENTALINCREMENTAL Benefit/Cost of AMI Benefit/Cost of AMI Acoustic Leak DetectorsAcoustic Leak Detectors

•Additional costof digging up mains

•Additional cost ofmain and servicerepairs

•Improved reduction in risk/cost of major failures

•Unit repairs less costly

•Extended life of mains

•Better perception of system reliability

•Better understanding of replacement needs

Indirect CostsIndirect Benefits

•Sensors, installation

•Additional leak detection crews

•Ongoing sensor repair, replacement

•Computer, software

•Improved reduction in water losses

•Reduction in leak detection staffing and equipment or

Direct CostsDirect Benefits

X

Computing the Cost and Benefit of Computing the Cost and Benefit of

Acoustic Monitoring Acoustic Monitoring

leak noise correlator needed, computersupport equipment

minimal if done with AMR installationcost of installation

fixed feecost of software, training

dual port unit or separate MIUcost of transmitter upgrade

dependent of quantity and unitcost of units

CAPITAL COST

Computing the Cost and Computing the Cost and

Benefit of Acoustic Monitoring Benefit of Acoustic Monitoring

In Connellsville, marginal cost of “adding” 500 MLOG s to project was roughly $75,000 and costs about $6,000 per year to maintain, mon itor. Savings estimated at $180,000 per year. Changed pay back of full AMI system from 12 years to 2.5 years. ($1.90/ 1000 gallons)

OPERATING COST

maintenance cost mostly software maintenance

staff analysis of data perhaps 1 hour per week per 1000 units

field investigations correlation about 30 minutes per site

additional repairs per year offset by reduced cost per repair

OPERATING SAVINGS

reduction in NRW dependent on volume and cost of water

added system intelligence priceless

The Meter/AMR/AMI/Acoustic

Monitoring Relationship Maze

Meters Network AMI Acoustic Monitors

Itron MLOG

Permalog

Gutermann

Echologics

Neptune

Sensus

Itron

Datamatic

Aclara

Elster

Neptune

Sensus

Elster

Badger

Actaris

Badger

Metrotech

Arkion

Metron Farnier

KP Electronics

Hersey

Itron 2nd generation

AMI Can Help Detect Backflow at AMI Can Help Detect Backflow at CustomersCustomers’’ Premises Premises

• Research suggests that each month about 0.5-1.5% of customers have a backflow event.

• Backflow can indicate– Impacts of main breaks

– Customer tampering

– Operational difficulties

– Faulty backflow prevention devices

– Plumbing issues

– Illegal activity

35 day backflow mapLow level backflow

High level backflow

Isolated high level backflow

AMI Can Help Detect Tampering and AMI Can Help Detect Tampering and Theft of Service Theft of Service

• Different systems have different tamper measures– Cut wire

– Magnetic disruption

– Tilting

• Time stamping, frequent measurements identify time of activity, quantify of water unreported.

Meter registerremoved

Strong magnetsplaced on meter

Some AMI Vendors Now Offering Some AMI Vendors Now Offering Remote Shutoff ValvesRemote Shutoff Valves

• Can be operated by fixed

network and mobile AMI

• Potentially useful for

property transfers, vacation

properties, collections,

multiple feed customers.

• Open, closed and “trickle”

position

• Self-exercising

• Issues with installation,

regulations, cost.

AMR/AMIAMR/AMI--Based Conservation and Based Conservation and Demand ManagementDemand Management

• Conservation objectives and tools

• AMI enhancement of conservation tools

• Water budget

• Conservation business case element for AMI

Conservation ObjectivesConservation Objectives

• Short Term– Respond to drought conditions– Reduce peak demand– Temporary versus permanent

program

• Long Term– Meet mandates to reduce draw– Improve load factor (peak-to-

average ratio)– Sustain growth

PeakHour/FireFlow

MaxDay

BaseLoad

• Change demand

– Reduce peak hour demand

– Reduce maximum day

pumping

– Reduce seasonal peaks

– Reduce base

load

• Adjust Capital

Planning

Old Paradigm: Supply Management; Old Paradigm: Supply Management; New Paradigm: Demand ManagementNew Paradigm: Demand Management

Conservation ConcernsConservation Concerns

• Impact on revenues – neutrality

• Revenue unpredictability

• Opportunity for rate relief

• Fairness; allocating target reductions or “burdens”

• Managing rationing schemes

• Designing and managing water budget model

• Residual impact of short-term programs

• Can capital construction be deferred?

• Is there a capacity or resource constraint (marginal

cost of additional water)?

• Can purchased water or interbasin transfer issues be

minimized?

Conservation Tool HierarchyConservation Tool Hierarchy

• Education – water tips, generic data• Audit – inspection, surveys• Hardware – toilet dams, flow restrictors• Economic incentives – toilet or irrigation

controller rebates• Metering• Regulatory restrictions – wastage fines,

alternate day watering bans, • Rates – peak period surcharges, increasing

block structure• Water budget• Combinations

Conservation Program Effectiveness Conservation Program Effectiveness Affected by Several FactorsAffected by Several Factors

• Rate structure

• Reading and billing frequency

• Wastewater charges on bill

• General awareness

• Other existing programs

• History

• Demographics Photo courtesyDatamatic

How AMI Enhances Conservation ToolsHow AMI Enhances Conservation Tools

• Audit – provides profile data, diagnostics (e.g., leak)

• Hardware – shows before and after; feedback on

effectiveness

• Regulatory restrictions – supports monitoring and

enforcement

• Rates – enables time-sensitive rates; “sensitizes” price

elasticity of demand

• Water budget – provides use-to-date data, usage

comparisons

• Watchdog – flags leaks when they occur

• Theft and tampering – monitors

• Facilitates submetering

AMR/AMI

ReducedO&MCosts

(energy,chemicals)

ReducedCapitalCosts

ReducedRevenue

AMIAMI--Derived Conservation Derived Conservation Benefit/Cost ConstructBenefit/Cost Construct

ConsumptionProfile

RemoteMonitor

BillingHistory

ProactiveLeak or

High-UseNotification

Short-termCustomerResponse

IncreasedCustomer

Satisfaction

Long-termCustomerResponse

OtherConservation

Initiatives

RateRevision

Customer Interfaces Reflect a Customer Interfaces Reflect a Changed RelationshipChanged Relationship

HOME

Customer: Joe Smith

Address: 42 Elm St.Springfield

Acct. No.: 34083453

Your Bill Statement

Metropolitan Water Service

Your Water Budget

Review Your Customer Profile

Update Your Account

Irrigation Budget

Water Conservation Tips

Rainfall this Period 1.8”

Moisture Deficit: 2.3”

Recommended CCF 128

Contact Us:

0

5

10

15

20

25

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

CC

F

Cohort

Budget

Actual

Merchandise

Framework for Evaluating AMS Framework for Evaluating AMS Impact on Conservation ProgramImpact on Conservation Program

IncrementalUnit Costof AMR

No. of AccountsDeployed

IncrementalUnit Water

Savings ImpactDue to AMR

ExistingPenetration

of ConservationMeasure

IncreasedPenetration

of conservationMeasure

Unit Waterand Wastewater

Costs

Combined Unit Water

Savings Impact

Water PlusOther Savings

DollarsSaved

TotalCost

Evaluation

SupportingCosts

ExistingUsers

NewUsers

Percent of costattributable to

feature

Unit Cost ofConservation

Measure

Total Costof Measure

Calculating the Benefits and Costs of Calculating the Benefits and Costs of AMI for ConservationAMI for Conservation

0

20

40

60

80

100

120

140

160

180

2010 2015 2020 2025

Milli

on G

allo

ns p

er D

ay

Avg Day

Max Day

Max Day w/AMI-BasedConservaton Program

Growth rate w/out AMI-based conservation

1 MGD/yr

Max Day reduction w/ AMI-based program

7.0%

Total CIP (4 years) $65M Interest rate 4.5% Pct of CIP attributable to Max Day

33%

Annual financing cost $975K No. years postponement

10

Net present value $7.8M Pct of saving attributable to AMI

50%

Savings attributable to AMI

$3.9M

Discussion: AMR/AMIDiscussion: AMR/AMI--Based Based Conservation and Demand ManagementConservation and Demand Management

• Can it be done? Can it be sustained?

• Is a business case analysis needed?

• What does it have to look like?

• Can AMI change the capital improvement plan?

• What does it take to make AMI-based conservation program enhancement work?

• Water budget – staffing, data capture and management, role of metering data, frequency of communication with customer

• What data do you need, and how do you manage it?

Read Success Rate Read Success Rate –– You DonYou Don’’t Get All t Get All

the Readsthe Reads

95%24 reads per dayHourly Read (profile)

98%1 read every dayDaily Read

99%1 read in 48 hour windowMonthly Read for Billing

SuccessCriteriaFunction

• The broader the criteria, the higher the success rate

• Limit the number of failures in any one area

• Cause of non-reads determined ex post facto

• “Quality” dimension of the application

• How much is enough??

• What’s the additional [full] cost??

AMR/AMI Applications Have AMR/AMI Applications Have

Varying Data RequirementsVarying Data Requirements• On-cycle and off-cycle (e.g., finals) meter reading• Leak, tamper and theft of service detection• “Soft” turn-off• Consumption profile• Time of use (e.g., seasonal or time of day) rates• Conservation monitoring and enforcement• High bill investigations• Watchdog services• Synchronized sub-metering• Non-revenue water; Inflow and Infiltration• Distribution system leak detection

Meter Transmitted Granularity Meter Transmitted Granularity

Versus Sampling FrequencyVersus Sampling Frequency• If transmitted increment is not several times less than

flow rate times sampling interval, get “sawtooth”

McKinley High School

0

50

100

150

200

250

300

350

11/14/0112:43 AM

11/15/0112:43 AM

11/16/0112:43 AM

11/17/0112:43 AM

11/18/0112:43 AM

11/19/0112:43 AM

11/20/0112:43 AM

11/21/0112:43 AM

11/22/0112:43 AM

11/23/0112:43 AM

Date and Time

Ga

llons

pe

r M

inut

e

Ex: Meter resolution = 10 gallonsAverage flow rate = 6 gals/hrSampling interval = 1 hourResolution factor = 0.6 (6 “pulses”in 10 hrs)

Guidelines for leak detection:Hourly: 1 CF

Daily: 10 CF

Aux. CustomerInfo. (e.g., alarm

thresholds)

Meter ReadingDatabase

Meter DataMgt. System

Fro

nt E

nd

AMI

OtherMeter

ReadingSystem

LeakDetectors

MIUsAssetMgt.

System

Work OrderMgt. System

CustomerInformation

System

GeographicInformation

System

AMI System MaintenanceEndpoint Maintenance

Meter Mgt.System

RevenueProtection

DistributionOperations

CustomerPortal

Ad HocAnalyses

SCADA

WOs, investi-gations

Meter Asset Data

ConsumptionProfiles

Data collector, MIU &metercondition & alarms

Scheduled readsReal-time eventsAlarms

High/LowConsumptionAlerts

Soft DisconnectTamper Alerts

Meters

Integrating AMI Data Enables Integrating AMI Data Enables

SystemSystem--Wide BenefitsWide Benefits

Old role – utility asreactive doer

• Meter reading,

investigations, etc.

• Utility reacts to

customers’ needs

and complaints

• Relatively

undifferentiated

service

• Hands-off customer

relationships

New role – utility as

proactive thinker

� Analysis of

consumption

� Scanning for

anomalies

� Differentiated

service

� More intimate

customer

relationships

� Field audits

AMI Changes Organization and AMI Changes Organization and Nature of Customer ServiceNature of Customer Service

AMIAMI--Based Policy ChangesBased Policy Changes

• Turn-offs and turn-ons/“soft” versus hard disconnects• Final bills• Leak detection/adjustments• Submetering / deduct metering• Theft of service• Responsibility for vandalism• Others?

– Do policy adjustments require changes to charter? Regulatory commission approval?

– Timing: how long to change them, when do you start? Who works on this?

Organizational Needs with AMIOrganizational Needs with AMI

• Manual meter reading• Inspection interval (if any) for meters, settings• Collections with soft disconnect• Broad-banding office positions• Broad-banding field positions• Conservation programs• Consumption data analysts• Staffing to goal (e.g., projected call volume and

call times)

Operation and Maintenance Protocols Operation and Maintenance Protocols ––

Maintaining an AMI SystemMaintaining an AMI System• How quickly to respond to missed reads

• Ability to estimate; tolerance for estimates

• Who reads the meters (job descriptions)

• Physical inspections

• Tweaking mobile routes to maximize yield

• Audits, manual reads

• Preventive maintenance on network

• Monitoring noise, protecting the frequency

• Flags from system – nature and volume;first response

• Trend analysis

• Performance standards

AMI Implementation Planning AMI Implementation Planning

Organization Organization

ProjectManager

Steering Committee

Cus. Serv.Process/

Policy Team

IT/InterfaceTeam

MeterReading

Mgt. Team

CommunicationsTeam

AuditorLegal/

Purch. Reps.

ProjectControlTeam

Executive Sponsor

Core Team

Procurement and ImplementationProcurement and Implementation

• Risks and risk management• Role of the utility• Procurement strategies• Contract provisions

AMR/AMI Technology Risk ManagementAMR/AMI Technology Risk Management

• Technical obsolescence

• Lack of standards

• Lack of interoperability

• Application and third party software

• Battery life

• Excessive failure rates; system failures, product recalls

• Radio frequency incursion

• Programming errors

AMR/AMI Business Risk ManagementAMR/AMI Business Risk Management

• Long-term viability of vendors

• Lack of stakeholder (employee, customer, etc.)

buy-in

• Business case assumptions don’t hold

• Lack of ongoing system support and maintenance

• Failure to integrate AMR with other systems

• Failure to change processes, policies and practices

Procurement Process ObjectivesProcurement Process Objectives

• Best bang for the buck

• Optimum number of creative, tailored proposals

• Professionalism, integrity, level playing field

• Vendor commitments

• Risk mitigation

• Buy-in of project team

Vendors assess you – Proposals are costly

AMI Project MultiAMI Project Multi--FacetedFaceted——Affects Affects

Approach to ProcurementApproach to Procurement

• Proprietary electronic technologies (MIUs, DCUs)

• “Commodity” services (installation)

• Professional services (e.g., project management, call center management, production logistics, interface programming, public relations)

• Information technology (control system software, database management tools)

• Communication equipment (wireless modems) and services

• Commodity products (meters, lids)

Procurement StrategiesProcurement Strategies

• Purchasing components separately— utility

as “general contractor”

• “Turnkey” projects—one prime contractor

• Mixed procurement—vendor as utility’s agent

• Program manager

• Installation– Specialized contractors

– In-house

• Performance contracts

• RFQ vs. RFP

Contract/Scope of Work Components Contract/Scope of Work Components

• Operating performance

• Pricing protection

• Integration with existing IT systems

• Customer support

• Product and system warranties

• Bonding

• Acceptance Criteria

• Installation schedule

• Installation warranty

Contract/Scope of Work Components Contract/Scope of Work Components

(continued)(continued)

• Equipment delivery, inspection, warehousing

• Training

• Customer appointment scheduling and call center

• Project organization, staffing and contact info

• Customer contact and installation percentages

• Installation quality/Inspections

• Problem response times

• Data control

Discussion of AMR/AMI Discussion of AMR/AMI

Implementation ExperiencesImplementation Experiences

• Implementation Planning organization

• Implementation project team organization

• Managing product and service suppliers

• Equipment delivery, inspection and inventory

• Project installation control

• Installation procedures

• System acceptance testing

Coordination with Meter ReadingCoordination with Meter Reading

• Objectives– Manage displacement – smooth,

planned

– Minimize estimated bills

– Level batches to billing system

– Avoid erratic bills (e.g., low then high)

– Avoid process “crashes”

• Rerouting flexibility?

• Blackout window

• When to cut a route over

1a

1b

1a

1b

1c

2a

2b

3a

3b

2-PassScheme

3-PassScheme

Control System is Critical to Control System is Critical to

Successful Project ManagementSuccessful Project Management

• Ensure that all data concerning system components and their location is correct and accurately captured and transferred

• Ensure proper data in billing system

• Track all work orders and ensure they get closed

• Ensure contractors’ invoices are correct and promptly paid

• Enable project team to manage work

• Ensure confidence in system

• Ensure that system components are working when installed

Project Plan and Schedule Project Plan and Schedule Negotiated with Contractor(s)Negotiated with Contractor(s)

• Delivery, installation of AMI system control computer, software

• Acquisition of warehouse, personnel, vehicles, installation equipment

• Delivery of meters, MIUs, other end-point equipment

• Delivery and installation of data collection hardware and infrastructure

• Development and approval of all system deployment procedures and policies

• Pilot and acceptance testing

Closing RemarksClosing Remarks

Some Meter Interface Unit ConsiderationsSome Meter Interface Unit Considerations

• Access

• Mounting options

• Repeaters

• Battery Life– Lithium thionyl chloride

– Some coupled with capacitor

– Life affected by frequency of transmission, meter current requirements, temperatures

• The Value of Warranties

NeptuneIntegrated

R900

Master MeterUniversalAMR Adaptor

AMR/AMI Procurement and AMR/AMI Procurement and Implementation ConsiderationsImplementation Considerations

• Procuring and contracting

• AMI and Meter Management

• MIU placement and meter lids

• Deployment strategies

• Implementation planning

• Controlling and managing the installation

• System maintenance

Important RFP/Contract Important RFP/Contract ConsiderationsConsiderations

• Specific performance –“complete and working system”

• Pricing protection

• Bonding

• Life cycle costs

• Provisions that survive installation

• Relationship of the parties

• Defaults and cures

• Acceptance criteria

• Payment provisions

• Data ownership and management

• Co-marketing• Integration with existing

systems• Customer support,

response times• Upgrades• Protection from

obsolescence• Software licenses

Major Issues Major Issues –– AMI and ConservationAMI and Conservation

• Does conservation compel a more sophisticated metering system?

• Do you have to justify AMI if conservation is a major driver?

• Can conservation benefits be quantified, attributed or allocated to AMI?

• Can AMI help with any of the concerns about conservation programs?

• Liability concerns Photo courtesyBadger Meter

Example: Making Consumption Data Example: Making Consumption Data Available OnAvailable On--Line (EBMUD)Line (EBMUD)

Example: Evidence of a LeakExample: Evidence of a Leak

Example: Watchdog Services, East Bay Example: Watchdog Services, East Bay MUDMUD

Conservation Pricing Conservation Pricing –– California California ExampleExample

• AB2882 – Allocation-Based Water Conservation

Pricing– Must be based on metered water use

– Must be cost-based (including incremental operating and

capacity costs)

– “Basic use allocation” for individual customer (lot size, local

climate during billing period, etc.)

– Basic use volumetric charge

– Conservation charge – to curtail demand

– Overuse charge

• AB3030 – Automatic Adjustments

Water Budget ExampleWater Budget Example(Contra Costa Water District)(Contra Costa Water District)

Site Water Budget = (Actual ETo x Kl) - ER x Area /

IE x CF

Where:

Eto = Daily Reference Evapotranspiration

Kl = Landscape Coefficient (used to adjust ETo to monthly water

needs of turf and non-turf)

ER = Effective Rainfall (portion of usable daily rainfall)

Area = Square footage of turf and non-turf

IE = Irrigation Efficiency (increases water budget to account for

system inefficiencies.)

CF = Conversion factor to place result into a

HCF/time period

Water Budget ModelWater Budget Model

• Customer signs up, fills out online survey• Budget established• Leak and high consumption thresholds established• Automatic notification: out of range, over budget• Budget vs. actual vs. usage of similar customers• Closer to real time, not well after the fact

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5

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15

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Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

CC

F

Cohort

Budget

Actual