1

AMI’s place in the future

AMI is THE key enabler for the future smart grid • The ‘intelligent grid’ is not intelligent without AMI• Customers are not empowered without AMI• The grid cannot be ‘optimized’ without AMI• There is no true electric ‘market’ without AMI• Electricity & gas can never be utilized in an efficient,

environmentally responsible manner without AMI• DR is not enabled efficiently for the mass residential

market

2

Interoperability = Future Proofing

• Endpoints – Must last minimum 15 years (20-25 preferred)– Two-way– Downloadable firmware & Downloadable reconfiguration– Strategic & Intelligent deployment (network topology and operation

considered for each endpoint choice)• Communication network

– Two-way with future interoperability capability – Constant R&D and evolution – Always backwards compatible (can’t obsolete endpoints)– Leveraged to limit number of networks within utility enterprise– Easily integrated into utility ‘backbone’ communications infrastructure

• Data Standards– Hardware/Comm always change – Data has to be there– Increased leverage of data for enterprise value must be delivered

• Integration– Enterprise considerations for full value proposition. Long-term view

key to success in incremental advancement of enterprise integration.

3

EPRI ESFF

AMI is the first step in this transformation

4

Meter Operations

Reduction in labor force

Workers Comp issues

Fewer estimated bills

Meter Reading

Reduction in clerical staff

Revenue Management

Compressing Read-to-Bill time

Database clean-up unbilled customers

More accurate metering devices

Customer Service& Billing

More accurate meter reads

Less estimated readings

Faster off-cycle reads

Baseline Benefits for walk-by/drive-by systems

Enabling the Reality of Advanced InfrastructureBaseline AMR Benefits

5

OperationalImprovements

Outage Management Capabilities

Leak DetectionTheft DetectionDecreased cost of

tenant turnover and off-cycle reads

Bill reconciliation (in deregulated market)

Trouble call reduction

Supply-SideSavings

Load balancing and forecasting

Distribution / Transmission Planning

Asset management and utilization

Transformer Load Management

New RevenueOpportunities

Notification / monitoring services― Power outage /

water and gas leakage

― Threshold alerts

Online customer profiles

Consolidated Billing

Customer ServiceImprovements

Billing dispute resolution

Increased number of pricing plans

Billing cycle flexibility

Basic Benefits of Fixed Networks

Enabling the Reality of Advanced InfrastructureBaseline AMI Benefits

6

OperationalImprovements

Distribution Automation Functionality

SCADA Application Water Electric

Capacitor ControlsControl Automated

SwitchesAdvance Power

Quality monitoring

Supply-SideSavings

Demand-Response programs

Spinning Reserves

Load control solutions

Additional Asset management and utilization

New RevenueOpportunities

In-Home Displays

Customer ServiceImprovements

Physical Remote connect / disconnect

In-Home DisplaysSmart

ThermostatsPre-Payment

Advanced Benefits of Fixed Networks

Enabling the Reality of Advanced InfrastructureAdvanced AMI Benefits

7

Closing the GapFuture Device Enablement

For every 1,000,000 meters there are approximately:200,000 distribution transformers. 5:1250+ substations1000+ dist feeders5000+ dist switches Thousands of reclosersThousands of capacitor banksThousands of switchgearThousands of fault circuit indicatorsTens of thousands of fuses Thousands of vaultsEtc etc etc etc