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Advanced Metering Infrastructure DistribuTECH February 2006 Energy Policy Makers Promoting Advanced Metering Support for Smart Meters Advanced Metering OIR The policy of the U.S. is to encourage time-based pricing and other forms of demand response and that deployment of devices to enable consumers to participate in these programs be facilitated, and that unnecessary barriers be eliminated Goal “Issue decisions on the proposals for statewide installation of AMI for all small commercial and residential customers by early 2006” (2005 Federal Energy Policy Act) (EAP II Draft, June 8, 2005) © Copyright 2006, Southern California Edison 2 Demand Response “…begin implementing a large-scale rollout of advanced metering systems for smaller customers, targeted first to areas of the state with the highest peak demand.” (2004 Integrated Energy Policy Report Update) www.sce.com/ami SCE AMI Business Case – Directional Cost/Benefit Address fundamental cost drivers for last business case – Telecom network coverage, performance, reliability and system management – Meter failures and life-cycle performance – Interoperability & system security – End-to-end data management Re-evaluate Aug 1st added functionality – Interface to A/C load control thru PCT – Remote service turn on/off SCE Proposal AMI Price Response A/C Load Control O&M Operations CustSvc Capital Identify additional uses for system based on tangible customer and business value Develop new conceptual estimate of overall business case (Meters, Network, IT) Meter Reading Costs Costs Benefits Benefits SCE Aug., 2005 Supplemental Testimony supporting Phase I © Copyright 2006, Southern California Edison 3 www.sce.com/ami CA Utility Proposals & Applications 2005 PG&E 2006 2007 2008 Pre-Deployment SDG&E CA Utility 2010 2011 2012 2013 Deployment Development SCE 2009 Pre-Deployment Phase I Phase II Deployment Pre-Deployment Proposed Deployment Deployment Application Status SCE • 3 Year development of AMI • Business case & application • If a go, deployment 2009-2013 • March 30th, filed for $31 million development funding • Approved Dec. 1, 2005 PG&E • 1 yr Pre-deployment start Q3 2005 • 5 year rollout Electric and Gas Sept. 2006 through Aug. 2011 • Application for $49 million in predeployment funding approved Q3 2005 • Application for full deployment in hearings in Fall 2005 and decision by Summer 2006 SDG&E • 1 Yr Pilot • 18 mo. Pre-deployment 20072008 • 30 mo. rollout Electric and Gas mid-2008-2010 • Development funding of $9.3 million approved Q3 2005 • Application for full deployment in hearings in 2006 and decision by end of 2006 © Copyright 2006, Southern California Edison 4 www.sce.com/ami AMI Meter Design Objectives • Expand meter metrics and analytics beyond the revenue cycle to distribution power characteristics and operational information Metrology & Intelligence Telecom Open Design & Standards Demand Management • Create a durable design to match 15–20 year lifecycle based on interoperability and open standards © Copyright 2006, Southern California Edison 5 • Extend SCE’s data and controls network to 5 million nodes (WAN) • Leverage sensor technologies for customers and utility distribution (LAN/HAN) • Enable CPUC price response requirements • Interface with load control technologies like CEC’s PCT • Integrate programmable turn on/turn-off switch • Interface with home information, automation & control technology www.sce.com/ami Conceptual AMI System SCE AMI system seeks to leverage a 2-way communications infrastructure with 5 million intelligent devices on our distribution network for our customers directly and our operations. © Copyright 2006, Southern California Edison 6 Illustrative Example www.sce.com/ami Utility Driven Meter Development Challenges Achieve the right balance among Marketability, Functionality and Openness Develop a specification that is supported by multiple meter and communications vendors and is commercially viable in the NA utility market Marketability Leverage OpenAMI, Intelligrid, Gridwise, CEC PCT, ANSI & other standards and reference design initiatives Engage other utilities & vendors in development process to generate interest and feedback Functionality Openness Durable open design that will support a solid positive business case that provides customer value © Copyright 2006, Southern California Edison 7 www.sce.com/ami Phase I Program Scope External Engagement System Design Regulatory Stakeholder Engagement Business & Functional Requirements Technology Advisory Board Industry Standards Technology Development Vendor Engagement Technology Evaluation Reference Architecture Trade-off Analysis Vendor Product Bench Testing Utility Collaboration Cost/Benefit Analysis Preliminary Business Case & Regulatory Application © Copyright 2006, Southern California Edison 8 www.sce.com/ami System Design: Business Use Cases (Scenarios) SCE Brainstorming Billing & Customer Service Customer Interface Delivery Energy Procurement 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/disconn ects customers Customer reads recent energy usage and cost at site Distribution operations optimize network based on data collected by the AMI system Utility procures energy and settles wholesale transactions using data from the AMI system Utiltiy detects tampering or theft at customer site Customer uses pre-payment services Customer provides distributed generation -- -- Meter reading for gas and water utilities Multiple clients use the AMI system to read data from devices at customer site Distribution operator locates outage using AMI data and restores service -- -- © Copyright 2006, Southern California Edison Field Services/System Recovery Installation & Maintenance AMI system recovers after power outage, communications or equipment failure Utility installs, provision and configure the AMI system Utility maintains the AMI system over its entire life-cycle -- Utiltiy upgrades AMI system to address future requirements -- 9 www.sce.com/ami Technology Assessment/Procurement Plan Goal: Competitive commercial products available from at least three meter and three communication vendors that meet SCE’s minimum requirements for performance and price by the end of Phase I Identify Potential Vendors Worldwide Initial Candidate Vendor Screen Q1 06 Candidate Vendor Due Diligence Vendor Development Screen Business Requirements Gap Analysis Beta Product Testing Objectives: • • • Product Selection • © Copyright 2006, Southern California Edison Proactively engage in a close collaborative process with selected vendors with the most promising products in development Rationalize the number of vendors that SCE wants to engage on product development In recognition of long procurement cycle (3-4 years), provide on-ramp for promising products and off ramp for non-performing products Ensure level playing field for relevant vendor information such as requirements, architecture and future procurements 10 www.sce.com/ami External Engagement UtilityAMI – Organizing international utility group focused on interoperability & security – Proposal to form UtilityAMI within existing standards body UCA® International Users Group, the parent organization for OpenAMI – Interested potential charter members represent over 75 million meters worldwide Technology Advisory Board – Objective is to leverage existing reference design and standards efforts for SCE – Membership: • • • • • • Carnegie Mellon: Dr. R. Tongia CEC PEIR: D. Watson OpenAMI: R. Bell Intelligrid: J. Hughes Gridwise: S. Widergren IEC: R. Schomberg © Copyright 2006, Southern California Edison 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 11 www.sce.com/ami Q&A To Learn More About The SCE AMI Program visit our website @ www.sce.com/ami © Copyright 2006, Southern California Edison 12 www.sce.com/ami