Technology Definition Project Draft 5 May 1, 2005 Brian Soth Market Intelligence, Itron Brian.Soth@Itron.com 509-891-3092 Matt Spaur Marketing Communications, Itron Matt.Spaur@Itron.com 509-891-3992 Table of Contents Preface................................................................................................................................. 4 Metering and Data Creation Terms..................................................................................... 5 Data Logging .................................................................................................................. 6 Net Metering ................................................................................................................... 7 Pre-Paid Metering ........................................................................................................... 8 Smart Metering ............................................................................................................... 9 Solid-State Meters ......................................................................................................... 10 Meter Data Acquisition Terms...........................................Error! Bookmark not defined. Advanced Network ........................................................Error! Bookmark not defined. Broadband Over Power Line (BPL) ..............................Error! Bookmark not defined. Fixed Network ...............................................................Error! Bookmark not defined. Head-End System...........................................................Error! Bookmark not defined. Interval Data Collection .................................................Error! Bookmark not defined. Mesh Network ................................................................Error! Bookmark not defined. Power Line Carrier (PLC) ..............................................Error! Bookmark not defined. Real Time Data ..............................................................Error! Bookmark not defined. Remote Disconnect / Connect Virtual Disconnect / Connect ...... Error! Bookmark not defined. Two-Way Networks; Two-Way Systems; Two-Way Communications ............... Error! Bookmark not defined. Unlicensed Spectrum .....................................................Error! Bookmark not defined. Mobile Workforce Management Terms.............................Error! Bookmark not defined. Mobile Workforce Management ....................................Error! Bookmark not defined. Meter Data Management Terms ........................................Error! Bookmark not defined. Meter Data Management................................................Error! Bookmark not defined. Meter Data Applications Terms .........................................Error! Bookmark not defined. Leak Detection ...............................................................Error! Bookmark not defined. Load Forecasting ............................................................Error! Bookmark not defined. Load Profiling ................................................................Error! Bookmark not defined. Outage Detection and Restoration .................................Error! Bookmark not defined. Demand Response and Load Management Terms.............Error! Bookmark not defined. Critical Peak Pricing / Real Time Pricing / Time Of Use (TOU) Pricing ............ Error! Bookmark not defined. Demand Response ..........................................................Error! Bookmark not defined. Load Control ..................................................................Error! Bookmark not defined. Price Response ...............................................................Error! Bookmark not defined. Delivery System Management Terms ................................Error! Bookmark not defined. Compatible Units ...........................................................Error! Bookmark not defined. Design Optimization ......................................................Error! Bookmark not defined. Distributed Generation / Distributed Resources ............Error! Bookmark not defined. Distribution Asset Optimization (DAO) ........................Error! Bookmark not defined. Gateway .........................................................................Error! Bookmark not defined. LMP (Locational Marginal Pricing) ..............................Error! Bookmark not defined. Performance Based Rates (PBR) ...................................Error! Bookmark not defined. Smart Grid ......................................................................Error! Bookmark not defined. 2 Trans-Product Terms .........................................................Error! Bookmark not defined. Open Standards ..............................................................Error! Bookmark not defined. Open Systems.................................................................Error! Bookmark not defined. Revenue Assurance ........................................................Error! Bookmark not defined. Appendix Terms We Cut ..................................................Error! Bookmark not defined. 3 Preface This document seeks to define, for the marketplace and as a market leader, the meaning of certain technology terms. The purposes in doing so are: Reduce confusion for those in the marketplace who are less educated about these terms (includes Itron employees) Begin driving toward standardization of the terms so that competitors will have to discuss these issues on our ground Bring higher levels of credibility to Itron by defining terms even when Itron doesn’t have the best solution in that space Reinforce our position as a market leader – position Itron as the company for market actors to contact when a technology term is unclear By defining these terms in a credible, consistent, and authoritative manner, we hope to have several positive impacts. All Itron employees use the same definition for these terms. Consultants use these definitions. Customers and prospective customers use the definitions. Itron has credibility in these areas, even if our products are not the best fit. Audiences for this document include Itron employees Utility customers and prospective customers Regulators / legislators Consultants Partners Competitors Many people contributed to this document. We would like to thank Don Tebeau, Clare Reich, Berry Drijsen, Randy Kinsey, Wendy Lohkamp, Sharelynn Moore, Paul Nelsen, Matt Owens, Janet Penz, Lowell Rust, Greg Lancaster, Michael Kolar, Tim Wolf, and Randi Neilson. 4 Metering and Data Creation Terms 5 Data Logging Definition Collecting water meter data at frequent time intervals in order to provide feedback on usage for billing disputes, water conservation efforts and leak detection. Most water utilities do not currently collect consumption data more frequently than monthly. Relevance As water becomes a scarcer resource and utilities strive for operational efficiencies, utilities are looking for features such as data logging to provide more detailed data about water consumption. Best Fit Data logging works best in situations where water utilities have the need to record frequent data in support of expanded customer service efforts or water conservation programs. Real World Increasingly, utilities are inquiring about data logging as leak detection becomes more important. Itron Solutions Itron’s 900 MHz water ERT modules do not support data logging. Itron’s 1430 MHz water endpoints do support data logging and allow for 840 intervals of scalable data. 200W and 200WP water endpoints support data logging and can be configured for 15 minute, 30 minute, 1 hour or standard bubble up interval of 4 hours. Related Terms Interval Data Collection, Meter Data Management 6 Net Metering Definition A net register calculates net metering power that has been used by subtracting power received from the customer from the power delivered to the customer. Net metering provides the technology to calculate this amount and calculate it as a net amount within the meter. This saves the utility from needing to record multiple billing values during the data collection process and performing calculations to determine the net value. Relevance C&I customers out of necessity, and residential customers out of environmental interest, are exploring the option of generating some of their own power through distributed generation. Technologies for distributed generation include solar, fuel cell, and bio-mass generation. To support distributed generation, utilities are required to meter the credit for customer-generated power, as well as the debit for customer-consumed utility power. Best Fit Net metering has been used for years at transmission interconnection points, large customer interconnection points, and large generation stations, to name three uses. It is commonly used with a utility’s largest five to ten percent of customers. Net metering also applies to distributed generation, for those customers who have the ability, resources, and economic incentive to generate power on their own. Real World Distributed generation, and thus net metering, has yet to achieve a significant level of penetration in the marketplace. Itron Solutions Itron electricity meters – including the SENTINEL meter, the CENTRON (kWh only) and R300 meters – support net metering. These products offer flexibility in the calculation of the billing data to include calculation of the net value. Related Terms Distributed Generation 7 Pre-Paid Metering Definition The ability to credit a customer’s account or meter for pre-payment for energy. A fairly common approach is to have customers pre-purchase energy cards or vouchers, much like they would a pre-paid phone card, and their “Pre-paid–enabled” meter would provide the interface and communications technology that enables them to redeem the card for energy on a pay-as-you-go basis. Relevance Utilities exploring revenue assurance options are increasingly examining pre-paid metering. Pre-pay can help improve cash flows. Pre-payment could also be required of customers with a history of late payment or missed payment. Best Fit Barring a utility’s ability to offer significant discounts for pre-payment, the best fit for pre-paid meter remains accounts that have a history of late or no payment. Real World Pre-payment fits best in areas of high customer turnover, historic revenue loss through nonpayment, and cultures where the theft of service is ingrained. Several deployments are in place in the US, but this application is not yet a significant growth area in North America. Pre-payment is common in Africa and South America. Itron Solutions Itron does not have a pre-paid metering application, but can provide tools to facilitate such an application. Related Terms Remote Disconnect / Connect, Revenue Assurance 8 Smart Metering Definition A foundational technology that automatically collects frequent meter data to support various applications beyond simply monthly billing. Relevance As energy policy influencers such as California and Ontario adopt programs known, at least colloquially, as “Smart Meter Initiatives,” it becomes important to understand what is meant by smart metering. This is particularly true as some metering and AMR manufacturers have labeled their products as “smart meters.” Best Fit Itron believes that smart metering encompasses more than a meter’s communications ability. Smart metering also includes systems that automate meter reading and provide a frequency and complexity of data that supports applications beyond monthly customer billing. Some of those applications include forecasting, load management, outage management and restoration, and variable rate structures. By enabling these types of applications, smart metering provides benefits to both the provider and the consumer. This form of smart metering has existed in the marketplace since at least 1994. It has been most successful in serving the electrical needs of customers in urban and suburban areas, where the number and density of customers justifies the additional investment required to implement smart metering. However, smart metering has also benefited water and natural gas providers and consumers. Real World Many utilities large and small are using various automated meter reading (AMR) technologies to generate, gather and apply the type of frequent meter data promised by smart metering. Itron Solutions Itron’s ERT, electricity metering, automated meter reading products, and meter data management software all support smart metering. Related Terms Mesh Networks, Solid State Meters, Two-Way Networks 9 Solid-State Meters Definition Utility meters that rely on solid-state circuitry, rather than mechanical and electromechanical technology, to generate metering data. Relevance The mechanical and electromechanical technology underlying today’s utility metering is essentially 19th century technology. As meter populations age and utilities examine their ever-changing business environment, the financial and customer benefits of applying solid-state circuitry technology to metering become more appealing. Best Fit Solid-state metering currently fits best with electricity metering. In metering gas, solidstate technology appears in equipment to compute temperature and pressure variances in reading gas volumes. For water providers, solid-state technology remains a newer development. Real World Solid-state metering for electricity is used around the world in a variety of settings with a variety of customers. The electricity marketplace has already transitioned from electromechanical to solid-state meters for more complex applications such as metering for commercial and industrial customers and transmission and distribution metering. Solid-state electricity metering at the residential level is only now beginning to gain some significant penetration. Itron Solutions Itron is a market leader in solid state singlephase electricity metering, having shipped over 13 million units for a variety of different AMR and non-AMR metering applications. Itron CENTRON® and SENTINEL® solid-state meters lead the electricity metering market thanks to the advantages of solid-state architecture, reliability and low-cost manufacturing. These meters read more accurately, record lower levels of energy consumption, fight tampering, and communicate with various automatic meter reading technologies. Related Terms Net Metering, Smart Meters 10