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AMI Briefing San Francisco May 17, 2006 Intelligently Connecting Edison to our Customers SCE seeks to leverage a 2-way communications infrastructure with 5 million intelligent metering devices on our distribution network to create lasting value for our customers and our operations • Enable Energy Smart Customers – – – – • Manage Distributed Resources – – – – • Economic dispatch of load resources Dispatch of load for grid management Intelligent net metering Management of distributed energy resources Operational Efficiencies – – – – • Integrated information from utility Payment options (e.g., pre-payment) Outage & service condition information Support rate option innovations Field communication links to distribution Revenue cycle improvements Situational data in near real-time Wholesale - retail markets integration Built with the future in mind – – – Upgradeable WAN/HAN communications Leverage open architecture principles in system design Future customer service offerings © Copyright 2006, Southern California Edison 2 www.sce.com/ami AMI System Development Objectives Develop cost effective system requirements that are supported by multiple meter and communications vendors and is commercially viable in the NA utility market Market Adoption Durable design that will support a solid positive business case that provides customer value Engage other utilities and vendors in development process to provide catalyst for next generation product development Cost Effectiveness Functionality Engage industry standards groups, component manufacturers, high technology firms, consultants and universities to gain insights into the art of the possible © Copyright 2006, Southern California Edison 3 www.sce.com/ami AMI Program Status (through April 30, 2006) Key Milestones Date AMI Technology Vendor Screen Q1 06 Business & Functional Requirements Q2 06 Conceptual System Architecture Q2 06 AMI Technology Evaluation Q2 06 Conceptual Feasibility Q3 06 Phase II Regulatory Application Q4 06 Beta Product Selection Q1 07 Preliminary Business Case Q2 07 Status Accomplishments Released meter technology roadmap document to vendors for product evaluation and consideration before releasing requirements in June Completed first level screen of vendor technology with encouraging results Reconfirmed with meter vendors product availability for testing in 2006 within price target Completed informal utility survey to assess market adoption for AMI technologies with similar functionality Conceptual cost-benefit analysis in progress Completed initial review of MDMS products and conceptual requirements development Conceptual system architecture development activity focused on identification of system requirements based on cost-benefit trade-off and market feedback. © Copyright 2006, Southern California Edison 4 www.sce.com/ami Systems Engineering Methodology SCE Brainstorming Billing & Customer Service Customer Interface Delivery Multiple clients read demand and energy data automatically from customer premises Customer reduces demand in response to pricing event Distribution operator curtails customer load for grid management Real-time operations curtails (or limits) load for economic dispatch (ES&M) Utility remotely limits or connects/ disconnects customer Customer reads recent energy usage and cost at site Distribution operators optimize network based on data collected by the AMI system Utility procures energy and settles wholesale transactions using data from the AMI system Utility detects tampering or theft at customer site Customer uses pre-payment services Customer provides distributed generation Multiple clients use the AMI system to read data from devices at customer site Distribution operator locates outage using AMI data and restores service Meter reading for gas & water utilities Energy Field Services Procurement / System Recovery AMI system recovers after power outage, communications or equipment failure Installation & Maintenance Utility installs, provision and configure the AMI system - Utility maintains the AMI system over its entire lifecycle - - Utility upgrades AMI system to address future requirements - - - Over 150 people across 18 cross-functional teams in 43 workshops representing most functional areas within SCE defined 80 potential uses for the AMI system © Copyright 2006, Southern California Edison 5 www.sce.com/ami Vendor Engagement Goal: Competitive commercial products available from at least two meter and two communication vendors that meet SCE’s minimum requirements for performance and price by the end of Phase I (A Lev lig el nm 1 en t) (V Lev ali el da 2 tio n) ID “Next Gen” development Q1-’06 Complete L1 Key Criteria: - Functional Capabilities - Product Timing - Commercial availability - Interoperability - 2-way comms - Reliability & Availability - Security - Serviceability - HAN Capabilities - WAN Options - Target price range - Other © Copyright 2006, Southern California Edison (L Le ab v Te el 3 st in g) Due Diligence Reviews (F Le ie ve ld l 4 Te st ) Product Availability & Testing Q2-’06 (D Le ve y l5 ep lo m en t) Q4-’06 L2 Key Criteria: - Design Development - Production Capabilities - Financial Condition - Processes: Business / Development Manufacturing (NPI) - Supply Chain - Small Requirements Gaps - Other 6 Phase II Phase III Start 6/07 Start 12/08 L3 Key Criteria: - Successful Lab Test - Added functionality - Flexibility - Commercial Terms - Other www.sce.com/ami External Engagement Utility Consortium – – Organizing international utility group within existing standards body UCA® International Users Group, the parent organization for OpenAMI Charter members represent over 75 million meters worldwide including: • • • • • SDG&E PG&E EDF DTE AES - AEP - ConEd - TXU - HydroOne - PacificCorp - FPL - NationalGrid - LIPA - Exelon - BCHydro SCE Technology Advisory Board – – Objective is to leverage existing reference design and standards efforts and industry insights for AMI program Membership: • • • • • • Carnegie Mellon: Dr. R. Tongia CEC PEIR: D. Watson OpenAMI: R. Bell Intelligrid: J. Hughes Gridwise Architecture: S. Widergren IEC: R. Schomberg AMI technology & policy + Asia & Europe insights CEC DR Research AMI reference design effort Utility systems interoperability & security Smart network reference architecture International standards + European insights Technology Research – – Universities and national labs including UC Berkeley, Carnegie Mellon, Caltech, MIT, LBNL, PNNL, and Oak Ridge NL Thought leaders from Intel, Microsoft, Cisco, McKinsey, IBM, Accenture, SAIC and Siemens © Copyright 2006, Southern California Edison 7 www.sce.com/ami AMI Phase I Summary Schedule Oct-05 Jan-06 Apr-06 Jul-06 Nov-06 Feb-07 May-07 AMI Meter & Comm Requirements Develop Initial Requirements Conceptual Architecture Final System Architecture & Requirements Vendor & Technology Assessment Product Development Assessment Technology Evaluation & Lab Testing Pilot Meter & Comm Procurement AMI Meter Data Management System Conceptual Requirements Business Process Design (Aligned w/ERP) MDMS Software Lab Testing MDMS Procurement Utility & Industry Engagement Utility Engagement Technology Advisory Board Phase II Planning Field Pilot Plan MDMS Pilot Plan Cost/Benefit Analysis Conceptual Cost-Benefit Preliminary Business Case Regulatory Conceptual Feasibility Report Phase II Application Dev & Filing © Copyright 2006, Southern California Edison 8 www.sce.com/ami Advanced Metering Market Technology & Utility Adoption © Copyright 2006, Southern California Edison 9 www.sce.com/ami Advanced Metering Technology Roadmap Communication Network Capability Based on utility and vendor feedback 2010+ 2007-08 AMI+ 2003-06 AMI 2000 AMR • Mobile system or fixed one-way network • Interval reads retrieved monthly • one-way outage detection (last gasp) • Proprietary based closed systems • 2-way network RF or PLC • Interval reads polled daily • 2-way outage detection • Limited TOU rate programming • Proprietary based closed systems Broadband AMI • Real-time capable • Smart grid capable • Broadband services • Added functionality -Remote on/off -Voltage measure -HAN interface -Prepay service • Open architectural elements AMI System Functionality © Copyright 2006, Southern California Edison 10 www.sce.com/ami Electric Meter Technologies 2nd Generation vs. 3rd Generation difference in adoption of architecture based design Performance (Functional & Value) SCE Technology Adoption Zone 2000 © Copyright 2006, Southern California Edison Solid State Gen3 Solid State Gen2 2006 Time 11 2008 2010 www.sce.com/ami Electric Residential Meter Communication Technologies AMR vs. AMI difference in adoption of architecture based design & true two-way communication Pervasive Customer Broadband Access Performance (Functional & Value) SCE Technology Adoption Zone AMI BPL Muni WiFi WiMax Broadband Application for Utility AMI AMR 2000 © Copyright 2006, Southern California Edison 2006 2008 Time 12 2010 www.sce.com/ami Meter Data Management Systems (MDMS) Enterprise Level (Interval Data) Performance (Functional & Value) SCE Technology Adoption Zone 2000 © Copyright 2006, Southern California Edison Commercial Applications 2006 Time 13 2008 2010 www.sce.com/ami Technology Capability Maturity (TCM) Metrology Dimensions Communication Dimensions • Disconnect • Configurability & Programmability • Serviceability & Diagnostics • Power Quality • Memory • Reliability • Interoperability • Display • Security • Tamper / Theft Detection • Architecture Flexibility • Availability • HAN • Interoperability (Meters to Comm) • Reliability • Scalability • Security • Serviceability of the field element • Serviceability / Maintainability • Throughput (Daily) • Throughput (on demand poll) • WAN - NAN © Copyright 2006, Southern California Edison 14 www.sce.com/ami Technology Capability Maturity (TCM) 1 SCE’s Business, System & Architecture Requirements Disconnect 5. A-H 4. B, C, D, E, F, G, H 3. C, D, E, F, G, H 2. D, E, F, G, H 1. E, F, G, H 0. Collared Solution A. Customer reset B. Unlimited set points C. Commercially available & in use now (>1,000 units) D. Current limiting capabilities E. On/Off disconnect F. Voltage sensing G. 200 Amp rating H. Integrated device (nearly same physical size) Vendors’ Road Map & State of Technological Maturity © Copyright 2006, Southern California Edison 15 www.sce.com/ami Programmable Disconnect Switch (example) • • • • • • • • • Customer moves Emergency curtailment (supply constraints) Economic curtailment (high price) Staged restoration during interruption anomaly Prepayment services Credit & collection service limiting Customer side load sensing – Possible theft detection following switch opening – Possible customer owned generation following switch opening Contract demand Planned outage safety mechanism – Proactively activate switch in affected area to ensure no load side voltage Target AMI Phase I capability set Commercially available & deployed (>1,000 units), current limiting, voltage sensing, 200 Amp, integrated device 1 5. A-H 4. B, C, D, E, F, G, H 3. C, D, E, F, G, H 2. D, E, F, G, H 1. E, F, G, H 0. © Copyright 2006, Southern California Edison 16 Disconnect Collared Solution www.sce.com/ami