Commercial & Industrial Customer Implications of Smart Metering

Allan BoucherCapgemini Canada

 

C&I customer implications Commodity price considerations

CIS / billing issues

Communication and coordination of C&I conversions

Customer focussed implementation

Critical success factors

Commodity price considerations

Commodity Price Options

Spot RPP - TOU Retailer

Hourly pricesTOU & critical peak pricing

Price certainty

+/-

depending on Load Profile vs. NSLS

Deferred spot & variance recovery

on exit

(the wolf in the sheep’s clothing)

Premium for price certainty

Highest potential but hardest to

achieve on a hourly basis

Limited ability to reduce/shift from on-peak for many

C&I accounts

N/A unless retailer offers

structured product

Many C&I accounts are ineligible for Time of Use Regulated Price Plan.

Their choices are “rock” or

“hard place”.

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CIS billing issues for C&I accounts Change to smart meter affects:

– Commodity pricing (hourly vs. NSLS)

– Bill timing (may change bill cycle)

– Other tariffs (e.g., Provincial Benefit)

– Retailer EBT and billing

There are winners and losers—the losers will want to come last in the conversions

#1 priority is to convert customers to smart meter without interrupting billing by LDC and/or retailer

Communication and coordination of C&I conversions

Commodity decision

Retailer impact Direct mail,

workshops, etc.

Site visit Outage timing Order equip. Install telecom Upgrade

installation

Ensure Telecom OK

Outside CIS bill window

Change CIS tariffs Success measured

by first electricity bill

Notify Prep Convert

lead time 6+ months

lead time 2+ months

lead time 1-2 weeks

Customer focussed implementation

Tier 2 Later Conversions

Retailer enrolled (unless priority conversion requested)

Spot priced “unfavourable” load profile

Tier 3 Deferred Conversions

Complex service upgrades

Conversions requiring extended power interruption

Tier 1Early Conversions

Customer requested conversion

Mandatory (>1000 kW existing, >500 kW new)

Easy technical conversions

RPP or spot priced “favourable” load profile

Critical success factors for C&I conversions An informed customer, aware of the impacts of Smart Meters

and their options for commodity rates

Tight coordination of meter and billing changes to ensure no interruption in billing

Prioritization of conversions sensitive to customer impact

Access to information, continued development of rates & incentives, and practical methods of reducing C&I consumption