How will your utility lead in the
next smart meter (R)Evolution?
Wednesday, June 25, 2014 | 12 pm ET
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Speakers
Creighton Oyler
Vice President, Strategic Growth
Markets, Oracle Utilities
creighton.oyler@oracle.com
Michael Sachse
Senior Vice President of Regulatory,
Business Development, and General
Counsel, Opower
Dave Steiger
Power & Utility Analytics Sector
Leader, Deloitte Consulting
dasteiger@deloitte.com
michael.sachse@opower.com
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Safe Harbor Statement
The following is intended to outline our general product direction. It is intended for
information purposes only, and may not be incorporated into any contract. It is not a
commitment to deliver any material, code, or functionality, and should not be relied upon
in making purchasing decisions. The development, release, and timing of any features or
functionality described for Oracle’s products remains at the sole discretion of Oracle.
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Power utilities are facing a challenging situation where the
cost of each kWh provided will increase.
Deloitte’s The Math Does Not Lie
“The Numerator”
Apportioned Capital Costs
• Generation, Transmission, Distribution additions
• Environmental regulation compliance
• Renewable portfolio standards and safety
regulations
Operating Costs
• Cost of fuel
• Incremental operating costs of environmental
compliance retrofits
• New operating technologies
• Cost of capital / Interest rates
Cost per kWh
Sold
($/kWh)
kWhr Consumption
•
•
•
•
Moderate new sources of demand
Changes in the economy
Technological advances in energy efficiency
Customer behavior and attitudes
“The Denominator”
Deloitte’s “The Math Does Not Lie” analysis indicates that utilities Cost/kwH will not only grow, but grow
at an increasing rate over the next few years
Copyright © 2014 Oracle and Opower and/or its affiliates. All rights reserved. | Oracle and Opower Confidential – Restricted
Levers
Streamlining operations, reducing costs, capturing and retaining customers, evaluation opportunities, for
new products and services, evolving the business model are some of the key areas where utilities can focus
their attention to improve the math.
Value Levers
Streamline operations, reduce and restructure
controllable costs
Decrease Cost of
Generating and
Delivering Electricity
Consider M&A or divestitures to achieve synergies or reconsider
business structures
Change the regulatory paradigm (e.g. changing renewable
portfolio standards, etc.)
Levers of
change
Cost per kWh
sold ($/kWh)
Capture, Retain Customers
Increase Value of
kWh Delivered
Evaluate opportunities for new products and
services
Change the business model
Copyright © 2014 Oracle and Opower and/or its affiliates. All rights reserved. | Oracle and Opower Confidential – Restricted
What is the Smart Meter (R)evolution
Traditional AMI Business Cases
• Meter reading savings through
automated reads
• Reduced truck rolls from Remote
connect/disconnect
• Demand response from dynamic pricing
programs
Future Benefits Realized
• Empower customers with the right data at
the right time to drive customer satisfaction
• Efficiency through better energy
management tools
• Improve safety by understanding and
mitigating risks
• Increase reliability through monitoring and
proactive maintenance
• Improve operational efficiencies through
better planning and execution
Copyright © 2014 Oracle and Opower and/or its affiliates. All rights reserved. | Oracle and Opower Confidential – Restricted
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Technology Dividend
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Customers don’t want data, they want energy to be easy
Automated rate selection
High bill alerts
Analytic driven insight
Personalized content
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The Benefits of Customer Engagement
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Operational Analytics Changes the Nature of “Work”
Any Data Source
Purpose-Built Analytics
Meter Operations and
Billing Optimization
Meter
Data
Network
Connectivity
…other utility
data sources
Customer
Attributes
Asset
Data
Weather
Data
Revenue Assurance
Network Planning &
Operations
Actionable Insights
Sample Outputs
• Meter Malfunctions
• Customer Tampering
Targets
• Overloaded
Transformers
• Urgent Safety Risks
• Maintenance Priorities
• EE / DR Targets
Customer
Service
Field
Operations
Billing
Operations
Asset Optimization and
Condition Monitoring
Meter
Operations
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Closing the Loop
Utility
Analytic Processing
Analytic Outputs
e.g., Identifies possible faulty meters
Combines event and
consumption analytics with
customer account, device
attributes, and premise
characteristics
Integrate Field Feedback
Process field comments
to refine algorithm for accuracy
& verify hypothesis
Feed to Other Transactional Systems
Investigation target list are directly sent
to other operational business processes
and systems
Work
Management
System
Asset
Management
System
Meter Data
Management System
Customer
Information
System
Outage Management
System
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Can we remove the grey
box around this and
increase the size of the
other boxes
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How to get a copy of the whitepaper…
The Smart Meter (R)Evolution | Maximizing the Technology Dividend
& Transforming Your Utility
• To download, please visit www.smartmeterrevolution.com
• For more information or questions, please contact us at
www.oracle.com/goto/utilities or www.opower.com
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Q&A
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