OG&E Smart Grid/Meter deployment Arkansas Public Service Commission

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IN THE MATTER OF THE APPLICATION OF OKLAHOMA GAS AND ELECTRIC COMPANY FOR AN ORDER OF THE COMMISSION GRA11TING PRE-APPROVAL OF DEPLOYMENT OF SMART GRID TECHNOLOGY IN ARKANSAS AND AUTHORIZATION' OF A RECOVERY RIDER AND REGULATORY ASSET

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DOCKET NO. 10-109-U ORDER NO. 8

ORDER

In this Order, the Arkansas Public Service Commission ("Commission") approves

the Settlement Agreement filed in this docket on June 22, 2011, by the Oklahoma Gas

and Electric Company ("OG&E" or "Company"), the General Staff of the Arkansas Public

Service Commission ("Staff'), the Attorney General of Arkansas ("AG") and Gerdau

MacSteel ("Gerdau") (collectively, "the Parties").

Procedural History

On December 17,2010, OG&E filed in this Docket its Application for an Order of

the Commission Granting Pre-approval of the Deployment of Smart Grid Technology

in Arkansas and Authorizaiicm of a Recovery Rider and Regulatory Asset

("Application"), requesting that the Commission issue an Order granting pre-approval

for the deployment of Smart Grid technology in its service territory in Arkansas; and for

the of a Smart Grid Rider to recover the annual revenue requirement

with the deployment of the Smart Grid technology. In support of its

OG&E filed the initial Direct Testimony of OG&E witnesses Kenneth Grant,

Jesse Langston, Scott Milanowski, and Bryan Scott.

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Docket No. 10-109-U Order No.8 Page 2 of 25

By Order No. 1, issued January 11, 2011, the Commission suspended OG&E's

Application pursuant to Ark Code Ann. § 23-4-407 pending further investigation by the

Commission. By Order No. 4, issued March 14, 2011, the Commission established a

procedural schedule for consideration of OG&E's Application including the setting of an

evidentiary hearing to begin on June 27, 2011.

On May 20, 2011, pursuant to the procedural schedule established by Order No.

4, the Staff ified the Direct Testimony and Exhibits of J. Richard Uornby, Elana Davis,

Gayle Freier, and Diana K. l3renske. Also on May 20, 2011, the AG filed the Direct

Testimony and Exhibits of Barbara it Alexander. On June 3, 2011, OG&E filed the

Rebuttal Testimony of Howard Motley. Additionally, on June 17, 2011, Staff and the AG

filed the Surrebuttal Testimony of their respective witnesses, and Gerdan filed the

Surrebuttal Testimony of Mark E. Garrett.

On June 22, 2011, the Parties filed a Joint Motion to Approve a Settlement

Agre ement supported by the Settlement Agreement Testimony of OG&E witness Donald

R. Rowlett;AG witness M. Shawn McMurray Gerdau witness Mark E. Garrett; and Staff

witness Diana Brenske. The Parties also asked that the Commission excuse from the

scheduled evidentiary hearing all witnesses with the exception of the Settlement

Agreement witnesses. By Order No. 7, issued June 24, 2011, the Commission excused

all non-Settlement Agreement witnesses from the scheduled June 27, 2011, hearing,

with the exception of any OG&E witnesses who were able to address issues regarding the

Company's Customer information Privacy and Security Plan and Customer Education

Plan.

The Commission conducted a public evidentiary hearing regarding the proposed

Settlepient Agreement on June 27, 2011, holding the record open for further

Docket No. 10-109-U Order No. 8 Page 3of25

Commission-directed filings, which were filed in this docket on June 29, 2011, July 1,

2011, July 5, 2011, and July 15, 2011.

OG&E's Application

By its Application, OG&E seeks pre-approval by the Commission of the

deployment of Smart Grid technology in its service territory in Arkansas; the

authorization of a Smart Grid Rider to recover the annual revenue requirement for

Smart Grid deployment until a subsequent OG&E rate case when the revenue

requirement would be incorporated into OG&Es base rates; and the creation of two

regulitory assets - the first for certain Smart Grid operation and maintenance ("O&M")

costs and the second for stranded costs related to the retirement of existing meters.

OG&E also requests suspension of various meter test schedules during deployment of

the Smart Grid system, pointing out that, since all existing electric meters will be

replaced prior to the end of 201, there is no need for such tests under Rule 7.08 of the

Commission's Special Rules - Electric.

OG&E witness Kenneth Grant explains that Smart Grid is the integration of

advanced metering capabilities, communications systems, automation and information

technology on the electric distribution system. This includes digital meters on

customer's premises with the ability to provide both the company and the customer with

usage information regarding energy consumption ("Smart Meters"), monitoring/control

equipment in the distribution system, a communications system to allow remote

monitoring and control over the electric grid, as well as security protocols to protect

both end user information (i.e. privacy concerns) and national security requirements for

critical infrastructure. Direct Testimony of Kenneth Grant, Transcript ("Tr.") at 25-31.

OG&E's proposed Smart Grid program includes all of these components as well as a

Docket No. io-iog-U Order No. 8 Page 4of25

prop sed plan for customer engagement and education that has been deemed essential

to a successful deployment of advanced infrastructure to an industry that has not

significantly updated their business model for customer relations in decades. Id. at 34.

Mr. Grant describes these specific components of the OG&E Smart Grid Plan:

• Distribution System Automation - This is the network of feeder

meters, capacitor bank controllers and fault indicators that is placed on

the distribution network to monitor and control power flows and

outages, as well as to provide efficiency improvements within the

distribution network. The automated Distribution System

communicates with both the Advanced Metering Network and the Data

Management network to provide OG&E with near-real-time data

regarding faults, outages, and flows on the distribution system.

• Advanced Metering Network - This element includes the intelligent

digital meters and the supporting technology infrastructure that allows

for two-way communications, interval billing, remote meter reading,

and remote service activation/deactivation. These meters allow for

faster outage notification and validation of service restoration. They

will also allow customer-enabling technology such as in-home displays,

programmable thermostats, and web based data sources to relay

electric usage information back to the customer. The Advanced

Metering network is further broken down into the following

components:

o The Advanced Metering Communications Network, which

allows near-real-time, two-way communications between the

Docket No. 10-109-U Order No.8 Page 5 of

customer and OG&E. This network includes the digital meter

itself and the communications network that allows the meters to

communicate back to OG&E.

o The Advanced Metering Head End, which is the

communications software interface that allows the

communications from the Advanced Metering Communications

Network to the Meter Data Management System.

o The Meter Data Management System, which is the data

warehouse that allows for interaction with the customer

information system.

o The Home Area Network, which consists of the devices, such as

communicating thermostats and in-home displays that are used

to display price and electricity consumption information to the

customer on the customer side of the meter.

Id. at 27-30. OG&E refers to this integration of advanced technologies and customer

programs, specifically including price response programs, as its Positive Energy® Smart

Grid program. Id. at 25-26.

OG&E has approximately 776,.5oo customers of which approximately 64,700

(8.3%) are located in Arkansas. Application at 1. The Company began evaluating

intelligent digital meters ("Smart Meters") and Advanced Metering Infrastructure in

2007 and conducted a Smart Grid technology pilot in northwestern Oklahoma City in

2008. Id. at 3-4. In July 2009 OG&E received approval from the Oklahoma

Corporation Commission ("0CC") to proceed with a Phase 1 deployment of Smart Grid

Docket No. 10-109--U Order No.8 Page 6 of 25

in Norman, Oklahoma, and deployed approximately 42,000 Smart Meters for

residential and small commercial customers by May 15, 2010. Id. at 4.

In August of 2009 OG&E filed an application seeking federal stimulus grant

funding with the United States Department of Energy ('DOE") which resulted in an

award to OG&E of $13o million to deploy Smart Grid Technology in OG&E's entire two-- -

state footprint. Id. To receive the full amount of funding, OG&E committed to expend

$3574 million over a three-year period starting in 2010 and ending in 2012 for system-

wide deployment of Smart Grid technology. Grant Direct at 10. In July 2010, the 0CC

approved full deployment and cost recovery for Smart Grid technology throughout

OG&'s Oklahoma service territory. AL at 2.

According to OG&E, the federal funds maybe used to match certain expenditures

by OG&E, and restrictions contained in the grant include a window in which OG&E can

receive reimbursement of approved levels of Smart Grid costs. This window extends to

the end of 2012 and includes a portion of the costs for the Norman deployment, the

installation of smart meters across the entire OG&E system, the communications

network, the distribution management system, circuit upgrades on a portion of the

Company's distribution systems, as well as testing for verification of expected Smart

Meter-enabled Demand Response. Application at 4. OG&E states that grant funds

allocated for use in Arkansas for deployment of Smart Grid technology, should its

Arkansas Application not be approved, will be reallocated to the Company's Oklahoma

jurisdiction. Id.

According to Mr. Grant, if its Application is approved, deployment in Arkansas

will begin toward the end of 2011 with the installation of a Wide-Area Network, a part of

the multi-tiered communications network that will support the operational


requirements of the Distribution System Automation devices and metering access points

distributed throughout OG&E's system. Grant Direct, Tr. at. 35. Deployment of Smart

Metes and Local-Area Network devices in Arkansas is scheduled to begin by March

2012 and be completed by May 2012. Id. The Local-Area Network is a wireless network

linking the metering access points to the individual Smart Meters installed on buildings

and homes, through which data may flow from meter to meter and from meter to the

access points. Likewise, Mr. Grant states that deployment of Distribution System

Automation equipment in Arkansas is scheduled to begin in 2011 and to be completed in

2012., Id.

Once the Advanced Metering Infrastructure deployment is completed, around

May 2012, Mr. Grant states that OG&E will be able to offer an Energy Information

Website to all customers with a Smart Meter. This website will allow customers to

monitor their usage data, pricing information, and overall energy cost. Id. at 36. OG&E

will offer this tool, along with Variable-Peak or Time-of-Use pricing tariffs to help

customers achieve savings by shifting peak energy usage to off-peak. AL According to

Mr. Grant, OG&E plans to provide a significant amount of education to help customers

use the website and pricing programs effectively. Id.

OG&E estimates that, of the $357.4 million total cost for the program in both

jurisdictions, the DOE grant will cover $126.9 million, or approximately 36% of total

costs of deployment, for a net ratepayer cost of $230.5 million. Id. at 13; Rebuttal

Testimony of Howard W. Motley, Tr. at tot Staff testifies that approximately 8.32% of

the net project cost, amounting to about $19 million, would be allocated to Arkansas

using the system allocation methodology adopted in OG&E's last rate case (Docket No.

10-067-U). Breuske Direct, Tr. at 307.

Docket No. 10-109-U Order No.8 Page 8 of

OG&E asserts that the annual revenue requirement for Arkansas, based upon

OG&l's current authorized rate of return and estimated Smart Grid expenditures offset

by DOE funding and after credit for direct savings from the Smart Grid Program, would

be $4374,5oo for 2oll (Jul.-Dec.), $3,254,889 for 2012, $3,062,248 for 2013, and

$1,38,362 for 2014 (Jan.-Jun.). Scott Direct, Exhibit BJS-i, Tr. Ex. at 14. Based upon

monthly residential consumption of i,ioo kilowatt-hours ("kWh"), the average customer

monthly bill impact (net of fuel and benefits) would be $1.41 in 2011, $1.62 in 2012,

$L37in 2013, and $1.25 in 2014. Scott Direct, Tr at 68 and Tr. Ex at 18-21.

Staff initially recommended approval of OG&E's Application subject to certain

specific conditions summarized in the Direct Testimony of Staff witness Brenske.

Brenske Direct, Tr. at 313-321. AG witness Alexander recommended rejection of

OG&E's Advanced Metering Infrastructure proposal; however, she recommended

several conditions that the Commission should impose if it approves OG&E's

Application. Alexander Direct, Tr. at 236-238.

Staff responded to OG&E witness Howard Motley's Rebuttal Testimony, again

recommending that the Commission impose upon OG&E the conditions outlined in

Staffs Direct, as well as additional conditions recommended in its Surrebuttal

Testimony. Brenske Surrebuttal, Tr. at 326-330, Hornby Surrebuttal, Tr. at 296-299;

Davisl Surrebuttal, Tr. at 356-360, and Freier Surrebuttal, Tr. at 374-377. Ms.

Alexander, for the AG, acknowledged that Staffs recommended conditions "are headed

in the correct direction," although she did not change her overall conclusions and

recommendations. Alexander Surrebuttal, Tr. at 244-245.

Gerdau witness Garrett objected to Staffs proposal to allocate the Smart Grid

Program costs to pU customer classes, supporting instead OG&E's proposal to allocate


such costs only among retail customers in Service Classes 3, 4 and 5 "because customers

in these service ... [classes] are distribution-level customers and costs for [the] Smart

Grid Program are primarily distribution-related costs." Garrett Surrebuttal, Tr. at 161.

Mr. Garrett further notes that Service Class 1 and 2 customers were not included in

OO&E's original proposed allocation because these customers are transmission-level

customers and are thus not cost-causers for Smart Grid implementation. Id. at 161-162.

Mr. Garrett proposes an alternative cost allocation that would "fairly assign" the Smart

Grid costs to all rate classes. Id

The Settlement Agreement

Under the Settlement Agreement (appended to this Order) all Parties agree to

adopt Staffs Direct and Surrebuttal case with regard to modifications to the OG&E

proposed SGR Rider, with two further modifications to Staffs recommendations. The

two further modifications would reduce SGR Rider revenue by the level of guaranteed

O&M reductions, and would exclude the O&M expenses incurred for the Norman,

Oklahoma deployment in 2010. The SGR Rider changes recommended by Staff in its

Direct and Surrebuttal case, as outlined in Attachment 1 to the Settlement Agreement,

are as follows:

i. The Rider shall only include historical, prudently incurred incremental

costs associated with the deployment of Smart Grid; Staff witness Fiana

Davis Direct Testimony at 3.

2. The Rider shall be based on the used-and-useful principle, with no costs

included in the revenue requirement and recovered before the cost is

incurred and Smart Grid meters are in service; Id.

Docket No. 10-109-U Order No. 8

Page ia of 25

3. The Rider shall include the formula for calculating the annual revenue

requirement; Id. at 3-4.

4. The Rider shall remain in effect until new rates are implemented as the

result of the planned 2013 rate case; Id. at 4.

5. The regulatory asset for O&M expenses incurred prior to the

implementation of the SGR Rider, without carrying charges, shall be

approved; no O&M expense related to the Norman project which was

incurred in 2010 shall be included; any non-incremental costs shall be

excluded; and the Rider shall include amortization of this regulatory asset

over five years, provided the expenditures are properly documented, and

subject to audit in the Company's next general rate case; Id. at 5.

6. The Rider shall reflect the rate of return approved in Docket No. 10-067-

U; Id. at 6.

7. The Rider shall reflect the depreciation rates recommended on page

Table 3 of the Direct Testimony of Staff witness Gayle Freier; AL

8. A regulatory asset for the early retirement of standard meters shall be

allowed, without accrual of carrying charges, for the balance in the

standard meter account at early retirement. However, the Rider shall not

include any amortization or return amounts for standard meters. The

Commission reserves until OG&E's next rate ease a final determination of:

i) the appropriate amount of the balance in the standard meter account at

early retirement and 2) the period for rate recovery, and no amortization

or return amounts shall be included in the Rider calculations; Id., Freier

Direct at 8-9.

Docket No. 10-109-U Order No.8

Page ii of 25

9. The Rider shall reflect that to the extent OG&E seeks to use different

depreciation rates than those approved in Docket No. 10-067-U' or in this

Docket, OG&E is required to file an application for such changes with

supporting documentation for Commission review and approval; Jreier

Surrebuttal at 2.

10. The Rider shall be reduced annually by the revenue requirement

associated with standard meters as included in the rates in Docket No. 10-

067-U upon retirement of the standard meters and deployment of Smart

Grid; Davis Direct at 7.

ii. The Rider shall be fully credited for any Smart Grid amounts - expenses,

investment, return, etc. - inadvertently included in rates in Docket No. 10-

067-U for the full period of their inclusion; Id.

iz. The Rider shall include the level of Guaranteed O&M Reductions offered

by the Company to reduce the SGR Rider revenue requirement; Id at 8-9.

i. The Rider shall provide that the billing determinants will be the same

methodology as used in the determination of the billing determinants for

the Company's Rider ECR; Id. at 9.

14 The Rider shall allocate Smart Grid costs to all of the service levels within

the classes such that there will be a separate rate calculated for each

service level within each class using an allocator based on Total

Distribution Plant less Acct. 360 land and land rights, consistent with the

Docket No. 10-067-U compliance cost of service study 0-4; Id. at io.

OG&Es most recent rate case proceeding which was resolved by final Order No. 6, issued by the Commission on June 17, 2011.


Page 12 of 25

15. The Rider shall provide for the annual true-up to be accompanied by

testimony and workpapers sufficient to fully replicate the calculations of

the revised SGR factors; H. at ii.

16. The Rider shall provide that the Commission explicitly reserves a finding

of value for Smart Grid for ratemaking purposes until a future rate case

when base rate recovery is sought. Id. at 11; and

17. The Rider shall provide that all collections under the SGR Rider be subject

to refund, with interest, after notice and hearing to determine prudence.

Id.

In addition to the changes to the Rider agreed to by the Parties, the Agreement

provides as follows:

• Reporting Requirements. OG&E will report the cost and benefits

associated with the Smart Grid project using the metrics filed in the

Agreement (Settlement Attachment 2). OG&E will establish a baseline

2010 System Average Interruption Duration Index ("SAIDI") and will

report the results to the Conlmission. 2

Meter Testing. Special Rules —Electric Rule 7.08.13 (Meter Testing

Programs and Filing Requirements) should be temporarily waived and

OG&E will file an appropriate revision to its tariff to reflect such

waiver.

2 SATIM is a commonly used reliability indicator in the electric utility industry. SAIDI is usually defined as the average outage duration that each customer will experience over the course of a year.


Page 13 of

• Remote Disconnect.

a OG&Es involuntary disconnect process shall not be substantially

changed during this deployment phase in Arkansas. OG&E will

continue to make two phone calls - the first automated and the

second a person-to-person contact - informing residential

customers of an impending involuntary disconnection of service. If

OG&E is unable to contact the customer by phone, an OG&E

representative will visit the customer premises in an attempt to

notify the customer of disconnection and offer a last opportunity to

avoid disconnection. A door hanger informing the customer of the

disconnection of service and how to be reconnected will be left on

the premises if the customer is not home during the attempted

visit. Customers subject to an involuntary disconnection of service

will be assessed the Reconnection Fee and the Collection Fee

pursuant to OG&E's current tariff.

o OG&E will follow the established customer premises visit process

for customers who have not been contacted by telephone prior to

an involuntary disconnect until its next rate case where this

process will be further evaluated. To enable effective evaluation of

that process, OG&E will provide Staff with an annual report

detailing the number of premises visits made pursuant to this

Agreement, the amounts collected via the Reconnection Fee and

the Collection Fee, the costs associated with the premises visits and

any applicable ratepayer benefits pursuant to the Agreement.

Docket No. 10-109-U Order No. B

Page 14 of 25

o OG&E's Reconnection Fee and Collection Fee will be discontinued

on the date the SGR Rider goes into effect, except as associated

with the involuntary disconnection process. However, OG&E is not

precluded from proposing new or revised Reconnection Fee or

collection Fee in any future rate case.

. Customer Eduation Plan. OG&E, with input from all Parties, will

develop a comprehensive Customer Education Plan consistent with the

budget agreed upon by the Parties and presented to the Commission

and will file this comprehensive Customer Education Plan in this

Docket within 90 days of an Order approving this Settlement

agreement. The Customer Education Plan will include a provision that

OG&E will mail a free Home Energy Report to customers who

participate in the Smart Grid Usage programs but who do not have

internet access.

. Customer Information Privacy and Cyber-Security Plan. OG&E will file

in this Docket within go days of an Order approving this Settlement

agreement a comprehensive Customer Information Privacy and Cyber-

Security Plan for the Commission to review and approve.

The Settlement Agreement summarizes OG&E's compliance filing obligations,

providing that, with input from Staff, the AG, and Gerdau, OG&E will within 90 days of

the issuance of the order in this case file the following documents in this docket for

Commission review and approval:

. An SGR Rider reflecting each of the provisions of Staffs testimonies,

modified to reflect the Agreement regarding Guaranteed O&M

Docket No. 10-log-U Order No. 8

Page 15 of 25

reductions and the exclusion of Norman O&M expenses incurred in

2010, as summarized in Attachment 1;

. A detailed reconciliation of all of the Smart Grid costs included in

Docket No. 10-067-U;

,. A detailed reconciliation of the standard meter revenue requirement

included in Docket No. 10-067-U;

A Customer Education Plan;

• A Customer Information Privacy and Security Plan;

Tariff revisions to reflect the waiver of Special Rules - Electric Rule

7.08 B and the application of the Reconnection Fee and Collection Fee;

and

,. The method for calculating System Average Interruption Duration

Index ("SAID!") and the 2010 benchmark.

The Settlement Agreement further provides that the Reporting Requirements

identified in Attachment 2, the SAID! calculation, and the report detailing premises

visits made pursuant to provisions of the Agreement, the amounts collected pursuant to

the Reconnection Fee and Collection Fee, the cost of conducting the premises visits, and

applicable benefits pursuant to the Agreement will be filed annually in this Docket at the

same time as the SGR Rider, along with supporting workpapers, and will be based upon

the previous calendar year's actual data.

The Settlement Agreement Hearing

During the Settlement Agreement hearing conducted on June 27, 2011, the

Commission heard testimony from OG&E settlement witnesses Rowlett, Grant, and


Page i6 of 25

thncrier. Company witnesses provided the following information in response to

Commission questions:

• The Smart Grid application was not a part of the just-concluded OG&E

rate case (Docket No. 10-067-U) because installation of the Smart Grid

equipment is expected to occur well after the end of the test year for

that case. According to Mr. Rowlett, a general rate case looks back at

what has already happened and factors in some future events, but this

project was new and unique and thus fit better in a separate

application. Tr. at 121.

• OG&E agrees with Staff's Direct and Rebuttal case that provides that a

prudence determination will be delayed until the next rate case. Mr.

Rowlett stated that "it was always [OG&E's] intent and be1ief that

there would be a review of what money was spent and cost incurred to

make sure that those were prudent expenditures and it met ... the

general criteria applied at the Arkansas Commission for a prudent

expenditure. Id. at 122.

• OG&R agrees that the Settlement Agreement and preapproval of the

Smart Grid technology and SGR Rider apply only to Phase II of the

project and that no cost recovery of anything in Phase Ill to be

included in rates. Mr. Rowlett testified that Phase II will be beneficial

to ratepayers and to OG&E irrespective of whether Phase lii is ever

approved. Id. at 124.

• Mr. Rowlett testified that one of the revisions to OG&E's initial request

as a result of Staffs ease is that OG&E "won't begin collecting money


Page 17 of

through the rider until all of the meters are installed" and that,

although a regulatory asset will be recognized for retired meters, as

requested in the Company's initial case, this asset "will not carry a

carrying charge, and the amortization period and the recovery

mechanism will be determined in the next OG&E rate case, so they will

not be part of the rider." Id. at 131.

. The regulatory asset to capture the development cost for Smart Grid

will not include the 2010 costs incurred for the Smart Grid project or

the pilot project in Norman, but Arkansas customers would pay their

jurisdictional share of the 2009 costs of the Norman project related to

acquiring the DOE grant, and those costs would be included in the

regulatory asset. Id. at 132 and 135-136.

• Arkansas rates will not include of any of the costs of the northwest

Oklahoma City technology demonstration. Id. at 138,

• OG&E has a Customer Education Plan for Oklahoma that would be the

same plan the Company will propose for Arkansas. Id. at 147.

. OG&E has a cyber-security plan that had to be filed with DOE as a part

of OG&E's grant agreement, and it will apply for the Arkansas case. Id.

at 149.

• OG&E will not charge customers for an involuntary disconnection

accomplished remotely, without a premises visit. Id. at 151.

. One of the advantages of OG&E's remote connect is that when

customers go to a payment agent, they usually get reconnected within


Page iS of 25

20 to 30 minutes on average and in the evening and over the weekend.

Id. at 152.

• To date, because of its workforce retraining and severance programs,

OG&E has not had to lay off any of its employees as the result of

implementing Smart Grid in Oklahoma and has been able to place over

6o of its former meter readers and field personnel in other entry level

positions. Id. at 153.

Staff witness Diana Brenske supported the Settlement Agreement noting that the

Company's modified proposed SGR Rider with regard to the Guaranteed O&M savings

is reasonable "because it will provide a guaranteed reduction in costs to ratepayers over

the rider period" and "[amy savings in excess of the Guaranteed O&M Savings will be

captured in the next general rate case." Tr. at 336.

During the hearing, Ms. Brenske noted that OG&Es customer education plan

needed more specificity regarding the deployment of customer education in Arkansas,

but that there is time to resolve that issue for the March-May 2012 meter deployment.

Id. at 381. OG&E and the Parties therefore agreed that the Company would provide

both customer information and privacy and cyber-security information within ninety

(90) days so that Staff can review it and get Commission approval prior to the meters

being deployed in Arkansas. Id.

In response to questioning by the Commission, Ms. Brenske testified that, based

upon the evaluation performed by Staffs consultant Richard Hornby, the deployment

and costs of Phase II of Smart Grid are beneficial to Arkansas ratepayers over the long

run (a 15-year period). Id. at 385. However, she added, that she does not believe that

short-term benefits will exceed costs, since program implementation and customer

Docket No. 10-log-U Order No. 8

Page 19 of 25

response will take time. Id. at 386. In short, she agreed that the benefits associated

with distribution automation and demand response are going to contribute to the

overall benefits of the program and thus Phase II lays the ground work for those larger

benefits. Ms. Breuske summed up Staffs position on this point: "We think over the long

run customers will be able to be served at lower costs than they would be otherwise

without smart meters, and so that's why we supported the settlement." Id.

Finally, Ms. Brenske responded to Commission questioning about delaying a

prudence finding, but authorizing expenditures of money on Smart Grid. She noted that

the two-step process contained in the settlement is similar to that used in other dockets

involving power plants and transmission lines, where the company seeks preapproval, in

the first step, to initiate an action based on a budget and a business plan. Id. at 388. In

the second step, once the project is completed, Staff reviews the prudence of the

execution of the project. In the instant case, Staff reserves that finding for the next rate

case, when any imprudent expenditures may be refunded to ratepayers with interest.

Id. She concludes that, based on the current business plan, "we believe that this is going

to be in the public interest." Id.

At the conclusion of the hearing the Commission announced that it would hold

the record open until July 20, 2011, for the Parties to provide a detailed framework of

the Customer Education Plan and budget for Commission approval, noting that this

action would not disturb the 90-day proviso on these matters in the Agreement itself.

Likewise, the Commission directed that OG&E provide under seal the privacy and cyber-

security plan that was provided to DOE, along with the talking points described by Mr.

Rowlett. Tr. at 391.

Docket No. 10-io9-U Order No.8

Page 20 of 25

In accordance with these directives, OG&E submitted the following information

on the following dates:

a June 29, 2011 - A copy of its DOE-approved Cyber-Security Plan for

the Smart Grid System and talking points (filed under protective seal);

• July 1, 2011 - A copy of its Data Privacy Plan and "concepts" document

describing the Cyber Security Plan and Data Privacy Plan expected to

be submitted pursuant to the Settlement Agreement;

. July 1, 2011 - A copy of its NERC Critical Infrastructure Protection

('CIP") Information Plan (filed under protective seal).

• July 5, 2011 - A copy of its initial Education Program talking points

and proposed budget for Smart Grid in Arkansas, to be used by the

parties in developing a formal plan pursuant to the proposed

Settlement Agreement; sample education materials and presentations

that have been used in Oklahoma and are proposed to be used in

education efforts in Arkansas; and OG&E's "Red Flag"/ Identity Theft

Program materials.

On July i, 2011, OG&E, the AG, and Staff filed their Joint Response to

Commission Directive to Submit OG&E Arkansas Smart Grid Outline Detailing

Customer Education Plan and Budget and Cyber Security Plan and Motion for

Approval of the Settlement Agreement ("Joint Response"). The Joint Response notes

that the Joint Parties have conferred and developed a detailed Customer Education Plan

Outline (Attachment 1 to the Joint Response).

The Joint Parties further state that while they have reviewed OG&E's proposed

customer education budget for Phase 11 of Smart Grid deployment filed on July & 2011,


Page 21 of 25

"there has been insufficient time to determine if the breakdown of costs within the total

education budget amount is reasonable, since the contents of the consumer education

plan have not yet been developed." Joint Response at 16. Furthermore, the Joint

Parties state their understanding "that cost recovery for consumer education expenses,

as for all costs included in the SGR Rider, shall be subject to refund, under the terms

and conditions spelled out in the Settlement Agreement..." Id. Thus, subject to these

caveats, the Joint Parties agree that OG&E's total customer education budget shall not

exceed the total amount indicated in OG&E's July 5, 2011 filing. However, the Joint

Parties further agree that the breakdown of costs should be subject to further review as

the parties develop the detailed Customer Education Plan that will be filed with the

Commission for approval. As provided in the Agreement, the parties will file a detailed

Customer Education Plan and Customer Information Privacy and Security Plan with the

Commission for its review and approval within 90 days of the Order issued in this case,

and will provided a detailed customer education budget at that time. Id.

Decision

The Commission accepts and receives into the record in this docket OG&E's

filings of June 29, July 1, and July 5, 2011, and the Joint Response of the Joint Parties

filed on July 15, 2011, including Attachment 1 to the Joint Response. Having reviewed

the entire record and having considered the totality of the evidence presented in this

case, including the Application, the pre-settlement testimony and exhibits, the

Settlement Agreement, the post-Agreement filings by OG&E and the Joint Parties, and

the testimony of the witnesses who appeared at the public hearing conducted by before

the Commission on June 27, 2011, the Commission finds that the Settlement

Agreement, as filed on June 22, 2011, is supported by substantial evidence of record


Page 22 0125

(whib contains adequate clarification and reassurance by the Joint Parties of its terms

and the meaning thereof), is just and reasonable and in the public interest,, and is

approved.

The Commission finds that the filings of the Customer Education Plan outline

and budget constitute an adequate framework for consideration of OG&E's commitment

to develop a consumer education plan tailored to the needs of its Arkansas customers.

Likewise, OG&E's filing of its DOE-approved Cyber-Security Plan for the Smart Grid

System, Data Privacy Plan, NERC CIP Information Plan, and initial Education Program

talking points and proposed budget for Smart Grid in Arkansas satisfy the Commission's

directive to provide additional information in support of the Settlement Agreement.

Accordingly, the Commission directs and orders as follows:

1. The Settlement Agreement, as filed on June 22,2010, is hereby approved;

2. The Compliance filings required by this Settlement Agreement shall be filed in

this Docket within ninety (90) days of the date of this Order. These filings shall include:

an SGR Rider reflecting all of the provisions in Staff's testimonies as

modified in the Settlement Agreement to reflect the guaranteed O&M

reductions and the exclusion of the Norman, Oklahoma O&M expenses

incurred in 2010;

. a detailed reconciliation of all Smart Grid costs included in Docket No

10-067-U;

. a detailed reconciliation of the standard meter revenue requirement


. a comprehensive Customer Education Plan developed with the input of

all Parties to this Settlement;


Page 23of

. a detailed Customer Information Privacy and Security Plan;

: tariff revisions that reflects the waiver of Special Rules - Electric Rule

7.08.B (Meter Test Programs for In-Service Meters) and the changes in

the application of the Reconnection and Collection Fee provisions of

OG&E's tariff; and

• the method for calculating the System Average Interruption Duration

Index and the wio benchmark.

3. The Reporting requirements in the Settlement Agreement, the System Average

Interruption Duration Index calculation, and the reports on the involuntary

disconnection process shall be filed annually in this Docket along with the supporting

workpapers and will be based on the previous year's actual data. These reports will be

flied annually at the same time as true up of the SGR Rider.

4. Finally, given that OG&E's deployment of Smart Grid technology is the first of

its kind in Arkansas and that its implementation has implications for all of the state's

investor-owned utilities and their customers, the Commission directs the Company to

make the following compliance filings regarding the project in accordance with the

following schedule:

• April 1, 2012 - A report describing:

a how the Smart Grid technology and its energy and demand

savings capabilities relate to or may be integrated into

OG&E's comprehensive Arkansas Energy Efficiency Plans for

Program Years 2011-2013;

3 See Docket No. 07-075-17.


Page 24 of 25

o how the Smart Grid technology affects OG&E's achievement

of the incremental, annual energy-savings targets established

by the Commission4 for Program Years 2011-2013; and

o how Smart Grid-related energy and demand savings will be

evaluated, measured, and verified in accordance with

Evaluation, Measurement, and Verification Protocols

expected to be adopted in Docket No. io-on-R.

• October 31,2012— A status report detailing OG&E's progress in the

following areas: installation of the Smart Grid "Distribution System

Automation" and "Advanced Metering Network" elements as

described by OG&E witness Kenneth Grant M. 27-30);

implementation of its comprehensive Customer Education Plan to

be submitted pursuant to this Order; and implementation of its

Customer Information Privacy and Security Plan to be submitted

pursuant to this Order; and

• April 1, 2013, and April 1, 2014 - A status report on the impact of

Smart Grid technology on OG&E customers' rates, bills, and energy

consumption levels, and the costs and benefits of the energy and

demand savings being achieved with the technology.

4 1d.

I

BY ORDER OF THE COMMISSION,

This day of August, 2011.


Page 25 of 25

Colette 1). Honorable, Chairman

Nfc4. f2ei Olan W Reeves, Commissioner

ga-~- 64'w~ Elana C. Wills, Commissioner

of the Commission

fhemb

- oHscSid VIsby dIfl

MA Uft"Wea @doom of gem

Secretaf the Commis&Ofl Date. "3..-t.L

APSC FILED lime: 6/221201111:42:57 AM: Recvd 622I201I 60

BEFORE THE ARKANSAS PUBLIC SERVICE COMMISSION

IN THE MATTER OF THE APPLICATION OF OKLAHOMA GAS AND ELECTRIC COMPANY FOR AN ORDER OF THE COMMISSION GRANTING PRE-APPROVAL OF DEPLOYMENT OF SMART GRID TECHNOLOGY IN ARKANSAS AND AUTHORIZATION OF A RECOVERY RIDER AND REGULATORY ASSET

)

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DOCKET NO. 10-109-U

SETTLEMENT AGREEMENT

Come now the General Staff of the Arkansas Public Service Commission (Staff),

Oklahoma Gas and Electric Company (OG&E), the Consumer Utilities Rate Advocacy

Division of the Arkansas Attorney General's Office (AG). and Gerdau MacSteel,

hereinafter collectively referred to as "the Settling Parties" and being all the parties to

the above-referenced Docket, agree to the following terms in settlement of all

outstanding issues in the above-referenced Docket.

1. PROCEDURAL SCHEDULE AND RECORD DEVELOPMENT

On December 17, 2010, OG&E filed an Application, Direct Testimonies and

Exhibits requesting that the Commission issue an Order granting pre-approval of the

deployment of Smart Grid technology in its service territory in Arkansas; the

authorization of a Smart Grid Rider to recover annual revenue requirement for Smart

Grid until a subsequent OG&E rate case when the revenue requirement would be

incorporated into base rates; and the creation of two regulatory assets, the first for

certain initial Smart Grid operation and maintenance costs and the second for stranded

APSC FLED Tme: 6(2212011 1IAZ5T AM: Reod 6/22(2011 11:37*64j"RTkofflbroc. so

costs related to the retirement of meters. OG&E also requested suspension of various

periodic and selective meter test schedules during the deployment of Smart Grid. On

March 17, 2011 Gerdau Mac Steel filed its Petition to Intervene which was granted on

April 8, 2011. After conducting extensive discovery, Staff, and the AG, filed Direct

Testimony on May 20, 2011. OG&E filed Rebuttal Testimony on June 3, 2011. Staff,

the AG and Gerdau MacSteel filed Surrebuttal Testimony on June 17, 2011.

The Record has been developed fully as reflected in the filed testimonies and

exhibits. In pursuit of settlement, a complete discussion of the issues outstanding was

undertaken among the Settling Parties, each being a strong advocate for its respective

position. The result is that the Settling Parties to this Agreement have agreed to settle

this case based on Staffs recommendations advanced in its Direct and Surrebuttal

Testimonies and Exhibits, as modified and detailed below.

2. SMART GRID RECOVERY RIDER (SGR Rider)

The Settling Parties have agreed to adopt Staffs Direct and Surrebuttal Case

with regard to the SGR Rider with two modifications. The level of Guaranteed

Operation & Maintenance (O&M) Reduction offered by the Company will be used to

reduce the SGR Rider revenue requirement and the Norman O&M expenses incurred in

2010 will be excluded. The SGR Rider shall therefore reflect each of the provisions of

Staffs testimonies, modified to reflect the Agreement regarding Guaranteed O&M

Reductions and the exclusion of Norman O&M expenses incurred In 2010- A summary

of the provisions of the SGR Rider as set forth in Staffs Direct and Surrebuttal

testimonies, modified to reflect the modifications noted above, is included as

Attachment 1.

APSC FILED line: 6/2212011 11A257 AM: Recd 812212011 11 :37:64 60

3. REPORTING REQUIREMENTS

The Settling Parties agree that the Company will report costs and benefits

associated with Smart Grid using the metrics included in Attachment 2 to the Settlement

Agreement The Company will establish a baseline 2010 System Average Interruption

Duration Index (SAIDI) and report that index to the Commission.

4. REMOTE DISCONNECT

A. The Company will continue to make two (2) phone calls; the first

automated and the second a person to person contact informing the residential

customer of an impending involuntary disconnection of service. If the Company is not

able to contact the residential customer by phone, the Company will visit the customer's

premise to notify the customer of the disconnection of service and offer a last

opportunity to avoid disconnection. If no one is at home, the Company will leave a door

hanger informing the residential customer of the disconnection of service and how to be

reconnected.

B. The settling parties agree that customers who are subject to involuntary

disconnection and receive a premise visit pursuant to paragraph A. above, will be

assessed the Reconnection Fee and the Collection Fee pursuant to the Company's

approved tariffs.

C. The Company will also provide a door hanger to include the Annual

Customer guide and an explanation of the Company's disconnection policy, at the

customers premise when Smart Meters are deployed.

D. The Settling Parties agree that the Company will continue the premise visit

APSC FLED Time: 6122120111 1*4Z57 AM: Rem! 612212011 11:37:54j Ofk 4JDoc 60

to residential customers who are subject to Involuntary disconnection and have not

been contacted by telephone prior to disconnection for a temporary transition period at

least until the conclusion of OG&E's next general rate case. The Settling Parties agree

that the elimination of the required premise visits to customers who are subject to

involuntary disconnection and cannot be reached by telephone prior to disconnection

shall be evaluated and addressed in OG&E's next general rate case. To enable that

evaluation, OWE shall provide an annual report detailing the number of premise visits

made pursuant to the provisions of the Agreement, the amounts collected pursuant to

the Reconnection Fee and Collection Fee, the cost of conducting the premise visits, and

applicable benefits pursuant to the Agreement.

5. CUSTOMER EDUCATION

A. The Settling Parties agree that the Company, with input from the Staff, the

AG, and the intervenor will develop a Customer Education Plan consistent with the

budget included in this case.

6. CUSTOMER INFORMATION PRIVACY AND SECURITY

A. The Settling Parties agree that the Company shall file a Customer Privacy

and Security Plan in this Docket for review and approval by the Commission.

7. OTHER ISSUES

A. The Settling Parties agree that a temporary waiver of Special Rules

Electric, Rule 7.08 B should be granted and the Company shall file a revision to its tariff.

B. Except as provided in paragraph 4.8. above, the Settling Parties agree

that the Reconnection Fee and Collection Fee shalt be discontinued on the date the

SGR Rider goes into effect. However, nothing herein precludes the Company from

0

APSC FILED Time: 612212011 1t42:57 AM: Recvd 6/22/201111.37 -54 .M1 y HDoG. 80

proposing a new or revised Reconnection Fee or Collection Fee in its next general rate

case.

C. The Settling Parties agree that the Company shall provide a Home Energy

Report, free of charge, to customers who participate in demand response programs, but

do not have Internet access to the Company's web portal..

8. COMPUANCE FILINGS The Agreement provides that, with input from the Staff, the AG, and the

intervenor the Company will file in this docket for Commission review and

approval of the following within 90 days of the order issued in this case:

. SGR Rider reflecting each of the provisions of Staffs testimonies,

modified to reflect the Agreement regarding Guaranteed O&M

reductions and the exclusion of Norman O&M expenses incurred in

2010, as summarized in Attachment 1;

. a detailed reconciliation of all of the smart grid costs included in Docket

No. 10-067-U;

a detailed reconciliation of the standard meter revenue requirement


. customer education plan;

. customer information privacy and security plan;

stariff revisions to reflect the waiver of Special Rules Electric Rule 7.08 B

and the application of the Reconnection Fee and Collection Fee; and

the method for calculating SAIDI and the 2010 benchmark.

The Reporting Requirements identified in Attachment 2 to the Agreement, the

APSC FILED Tim: 612212011 11,42:57 AM: Read 612212011 11:37:5jf 50

SAIDI calculation, and the report identified in Section 4.D. Will be filed annually in

this Docket, along with supporting work papers, and Will be based on the

previous calendar year's actual data. The reports will be filed annually at the

same time as the SOR Rider.

9. RIGHTS OF THE SETTLING PARTIES

A. This Agreement is made upon the explicit understanding that it constitutes

a negotiated settlement which is in the public interest Nothing herein shall constitute

an admission of any claim, defense, rule or interpretation of law, allegation of fact,

principle, or method of ratemaking or cost-of-service determination or rate design, or

terms or conditions of service, or the application of any rule or interpretation of law, that

may underlie, or be perceived to underlie, this Agreement.

B. This Agreement is expressly contingent upon its approval by the

Commission without any modification. The various provisions of the Agreement are

interdependent and unseverable. All parties shall cooperate fully in seeking the

Commission's approval of the Agreement. The parties shall not support any alternative

proposal or settlement agreement while this Agreement is pending before the

Commission.

C. Except as to matters specifically agreed to be done or occur in the

future, no party shall be precluded from taking any position on the merits of any

issue in any subsequent proceeding in any Forum. This Agreement shall not be

used or argued as establishing precedent for any methodology or rate treatment

in any future proceeding.

APSC FILED Tkne: €12212011 114257 AM: Recvd 6/22120111 l:3ls4fJIfI4ffl.00c.eO

D. In the event the Commission does not accept, adopt and approve

this Agreement in its entirety and without modification, the Settling Parties agree

that this Agreement may be declared void and of no effect by any party.

In that event, however, the Settling Parties agree that: (a) no party shall be bound by

any of the provisions or agreements hereby contained; (b) all parties shall be deemed

to have reserved all their respective rights and remedies in this proceeding; and

(C) no party shall introduce this Agreement or any related writings, discussions,

negotiations, or other communications of any type in any proceeding.

Respectfully submitted,

GENERAL STAFF OF THE ARKANSAS PUBLIC SERVICE COMMISSION

By: Is/Fran C. Hickman Staff Attorney 1000 Center Street P.O. Box 400 Little Rock, AR 72203-0400 (501) 682-5881

OKLAHOMA GAS & ELECTRIC CO.

By: Is/Lawrence E. Chisenhall, Jr. Chisenhall, Nestrud & Julian 2840 Regions Center 400 W. Capitol Avenue Little Rock, AR 72201 (501) 372-5800

ATTORNEY GENERAL OF ARKANSAS

By: /s/M. Shawn McMurray Senior Asst Attorney General Emon Mahony Asst. Attorney General 323 Center Street, Suite 200 Little Rock, AR 72201 (501) 682-1053

APSC FILED TIme: 812212011 11:42:57AM: Recvd 6/2212011 1l:37:54jja f1.Doc. 60

GERDAU MACSTEEL

By: Is/Thomas P. Schroedter Hall, Estill, Hardwick, Gable, Golden & Nelson, P.C. 320 S. Boston Avenue, Suite 400 Tulsa, OK 74103-3708 (915) 594-0436

APSC RLEDThe: 612212011 11:42:57 AM: Recvd 8/2212011 11:37:54 fJQU1t}QC. 60

DOCKET NO 10-109-1.1

STAFF'S SGR RIDER, AS MODIFIED BY THE AGREEMENT

1. The Rider shall only include historical, prudently incurred incremental Costs associated with the deployment of Smart Grid (Davis Direct page 3, lines 15-19)

2. The Rider shall be based on the used-and-useful principle with no costs included in the revenue requirement and recovered before the cost is incurred and Smart Gad meters are in-service (Davis Direct page 3, lines 19-21)

3. The Rider shall include the formula for calculating the annual revenue requirement (Davis Direct page 3, line 21 - page 4, line 2)

4. The Rider shall remain in effect until new rates are implemented as the result of the planned 2013 rate case (Davis Direct, page 4, lines 6-10)

5. The regulatory asset for O&M expenses incurred prior to the implementation of the SOR Rider, without carrying charges, shall be approved. No O&M expense related to the Norman project which was incurred in 2010 should be included. Any non-incremental costs shall be excluded. The Rider shall include amortization of this regulatory asset over five years provided the expenditures are properly documented, and subject to audit In the Company's next general rate case. (Davis Direct page 5, line 11 - page 6, fine 2)

6. The Rider shall reflect the rate of return approved in Docket No. 10-067-U. (Davis Direct page 6, lines 8-14)

7. The Rider shall reflect the depreciation rates recommended on page 7 Table 3 of the Direct Testimony of Staff witness Gayle Freier (Davis Direct page 6, lines 15-19)

8. A regulatory asset for the early retirement of standard meters shall be allowed, without accrual of carrying charges, for the balance in the standard meter account at early retirement However, the Rider shall not include any amortization or return amounts for standard meters. The Commission reserves until OG&E's next rate case a final determination of 1) the appropriate amount of the balance in the standard meter account at early retirement and 2) the period for rate recovery, and no amortization or return amounts shall be included in the Rider calculations (Davis Direct page 6, line 19 - page 7. line 2 and Freler Direct page 8, line 14 - page 9, line 2)

9. The Rider shall reflect that to the extent OG&E seeks to use different depreciation rates than those approved in Docket No. 10-067-U or in this Docket, OG&E is required to file an application for such changes with supporting documentation for Commission review and approval (Freier Surrebuttal page 2, tines 13-17)

APSC FILED Time: 612212011 11,42:57 AM: Recvd 612212011 11:37:54fl- Doc. 80

0. The Rider shall be reduced annually by the revenue requirement associated with standard meters as included in the rates in Docket No. 10-067-U upon retirement of the standard meters and deployment of Smart Grid. (Davis Direct page 7, lines 3-15)

11. The Rider shall be fully credited for any Smart Grid amounts - expenses, investment, return, etc. - inadvertently included in rates in Docket No. 10-067-U for the full period of their inclusion. (Davis Direct page 7, lines 16-21)

12. The Rider shalt include the level of Guaranteed O&M Reductions offered by the Company to reduce the SGR Rider revenue requirement.

13. The Rider shall provide that the biking determinants will be the same methodology as used in the determination of the billing determinants for the Company's Rider ECR. (Davis Direct page 9, tines 8-13)

14, The Rider shall allocate Smart Grid costs to all of the service Levels within the classes such that there will be a separate rate calculated for each service level within each class using an allocator based on Total Distribution Plant less Acct. 360 land and land rights, consistent with the Docket No. 10-067-U compliance cost of service study G-4. (Davis Direct page 10, lines 1-15)

15. The Rider shall provide for the annual true-up to be accompanied by testimony and workpapers sufficient to fully replicate the calculations of the revised SGR factors. (Davis Direct page 11, fines 5-11)

16 The Rider shall provide the Commission explicitly reserves a finding of value for Smart Grid for ratemaking purposes until a future rate case when base rate recovery is sought (Davis Direct page 11, lines 15-17)15.

17, The Rider shall provide that all collections under the SGR Rider be subject to refund, with interest, after notice and hearing to determine prudence (Davis Direct page 11, lines 17 - 19)

ATTACHMENT 2

DOCKET NO. 10-1094U

REPORTING REQUIREMENTS

& Execution

Cost to Deploy: Capital vs. total Capital Total capital dollars spent on the AMI deployment deployment cost program inception to date vs. total AMI program capital

budget as a dollar amount and as a ratio by project

Cost to Deploy: O&M vs. total O&M deployment Total O&M dollars spent on the AMI deployment program cost Inception to date vs. total AMI project O&M budget as a

dollar amount and as a ratio by project

DOE Reimbursement - AMI only Portion of Department of Energy Smart Grid Investment Grants received and applied to offset cost of AMI and ratio of total grant

Avoided new capital Investment In new Total dollar value of avoided legacy metering capital costs Installations of the older metering systems due to for new customers and new developments customer growth Avoided planned replacement and maintenance Total dollar value of avoided replacement costs of current costs relating to the older metering system (e.g., metering equipment mechanical meters, ERT devices, etc)

Reduction in manual meter reading costs Cost reductions due to the elimination of meter reading positions (in-house and contract)

Reduction In meter operations costs (e.g., field Meter operations savings due to lower survey meter visits, meter maintenance, etc) activities and ERT battery replacement COStS -

Reduced Theft of Energy The number of Incidents of theft of energy uncovered and the dollar amount billed for theft of energy

Total AMI electric meters installed - Total AMI electric meters installed (physically attached to a premise) expressed as total number and percent of total

Communications & Education



Meter Accuracy

Meter Reading Effectiveness Awareness and Understanding

Awareness and Understanding

unity Outreach

unity Outreach

ner Satisfactio,

unity Outreach

ATTACHMENT 2

DOCKET NO 10-109-U

REPORTING REOUIRMENTS

Metric Section ProJect Delivery & Execution Nei Total communication network components Total communication network components installed

Installed (access points & relays) (access points & relays) expressed as total number and percent of total

Total AMI meters used for billing (activated), Total AMI meters used for billing (activated, I.e. communications achieved and used to bill communicating with meter to produce customer bill) monthly expressed as total number and percent of total

Number of avoided truck rolls Number of avoided truck rolls for meter field Inspections. Note: Will include number of deployment truck rolls as a footnote

AMI Meter Sample Internal Test Results Percentage of AMI meters that pass internal accuracy ________________________________________ testing prior to deployment Percentage at interval reads received Number of Intervals reported I total number of possible

Intervals to be reported Percent awareness of AMI technology and Percent awareness of customers based on survey results benefits (survey measurement) target to be determined after baseline established (with

and w1b Internet access) Percent understanding of AMI technology and Percent understanding of customers based on survey benefits (survey measurement) results; target to be determined after baseline established

(with and wIg Internet access) Number of community outreach events Number of events held to educate customers and conducted and number of attendees at events Number of customers attending educational events

Number of articles that appear in local media Number of articles that appear in local media as a result of company Issued press releases

Number of articles in internal newsletter Number of articles in internal newsletter

Number of Meter installation Complaints/Claims Number of Meter Installation complaints/claims

Number of customer organizations contacted Number of customer organizations contacted

Number of customer referrals to energy advisors Number of transfers to energy advisors for information on

ATTACHMENT 2

DOCKET NO. 10-109-U

Documents

OG&E Smart Grid/Meter deployment Arkansas Public Service Commission