AMP’s Advanced Metering Program October 15, 2015 George Bjelovuk, AMP Project Manager 1 Redefining AMP’s Strategy AMP’s recognition of market drivers • Changing regulatory environment • IOU decrease in generation investment and increase in transmission investment • Expansion of renewable generation capacity • Growing customer interest in demand-side efficiency and management • Proliferation of distributed generation Eight cross-functional teams working to redefine AMP’s Strategic Plan and Objectives • One of the teams is focused on helping AMP members with the deployment of technology in the operation of their business 2 Redefining AMP’s Strategy What we know… • The utility industry business is increasing its use of technology - in the business, in field equipment, and by customers • Our member municipalities have an emerging need – Skill & talent not locally available • Our operations are becoming more vulnerable to attack – Cybersecurity engineering is of paramount importance Members have recognized AMP’s ability to effectively manage bulk power purchases and power supply contracts • AMP’s Board has identified the need to support members in their adoption of technology in their operations 3 Redefining AMP’s Strategy One of the eight teams is focused on technology enablement - “Hosted Solutions" • AMP members are evaluating many technologies in the distribution and customer operations parts of the business • Vendors, distributors, and independent providers have identified the need within small municipal utility operators • The term – “Hosted Solutions” – is reflective of what the marketplace refers to these services – Vendors providing these services to individual members AMP assembled a group of member municipalities and staff to begin collaborations • Known as the “Smart Grid Advisory Committee” 4 Smart Grid Advisory Committee AMP Smart Grid Advisory Committee • Formed about 18 months ago to facilitate exchange of information among Members interested in smart grid technologies • Common interest among members in advanced metering Leidos Engineering Study, 2014 • Modeled several scenarios for members – Each municipality deploying meters, networks, systems – Each municipality using a commercial hosting provider – Single hosting provider for all members – AMP-developed hosting services for all members Identified the need for an “Owner’s Engineer & Project Manager” • Selected George Bjelovuk – utility operations and consulting experience 5 AMP’s Smart Grid Program Project launched on January 6, 2015 • Focus on simplifying AMI adoption for AMP members • Recognize variability among member’s requirements Pilot member utilities’ benefits • Aggregating purchasing of equipment • Mitigating the risks associated with local deployment of major technology components like Meter Data Management Systems • Support business case & financial modeling • Assistance with presentations to leadership, where required • Provide collateral material for customer communications 6 Member Business Drivers • Address aging meter assets equipment – Handheld/drive-by equipment is aging – Water meter modules near end-of-life (batteries) – Stopped or under-registering meters • Improve customer service – Surrounding utilities providing internet access to interval data – Enhanced customer communication • Support for emerging needs – rates, distributed generation – Distributed generation (e.g. solar) metering requirements – Changes in rate design – TOU, demand metering, seasonal rates • Defer complexity of technology management – Technically-skilled employees may be difficult to attract & retain – Vendor relationships different from existing products & services – Distribution grid management – automation, Volt/VAR control • Seek ways to reduce acquisition cost 7 Current State - HHMR Billing System • Manual meter reading process • Aging meters, handheld equipment • Support for new rates • “Smart grid” platform & customer expectations 8 Advanced Metering Evolution - AMR Meters Billing System Meters replaced with “One-Way” RF System; Reading with “drive by” equipment • Improves efficiency (less estimates, lockouts) • Continued shortcomings on advanced rates, smart grid capabilities, & customer expectations 9 Advanced Metering Evolution - AMI AMI Head-End Field Infrastructure Communications Network, “Backhaul” (fiber, wireless, cellular) Billing System Simplest form of Advanced Metering • Remote reading • Introduces two-way capabilities • Capable of remote connect & disconnect Smart Meters Collectors 10 Advanced Metering Evolution - AMI • Deployment & support of IT systemsField requires Back Office Infrastructure Infrastructure AMI may be difficult to attract specialized resources that Outage Customer Utility Smart MDM Head-End viewer Portal Portal Meters and retain for AMP member municipalities Collectors • Managing relationships with a new group of vendors ̶ Utility equipment distributors Backhelp Haul with this, but only with the vendors they represent • AMI projects require several key skill sets: ̶ Effective presentations to leadership Billing Utility Owned – ̶ Engagement of the community System Traditional “On-Premise” ̶ Cost/benefit analysis ̶ Project Management • Independent action loses opportunity to achieve economies of scale from collaborative action 11 Commercially Hosted Solutions Utility Systems Outage Customer Utility viewer Portal Portal MDM AMI Head-End • Expertise deferred to Hosted Solutions Provider Field Infrastructure Smart Meters • Reliance on vendors and distributors to interact with municipality’s leadership Infrastructure & Applications Collectors Back Haul • Varying degrees of maturity among vendor and provided as a Service distributor’s project management skills Billing System • Many Individual municipality contracts with multiple providers AMP AMI Project - Status • First phase of project was to complete “member outreach” – Identifying AMP members who had interest in moving forward collaboratively with their AMI project • Eleven Municipalities, 108,897 meters (goal = 85,000) – Bryan, OH – Piqua, OH – Berlin, MD – Tipp City, OH – Dover, OH – Seaford, DE – Ephrata, PA – Versailles, OH – Newton Falls, OH – Zelienople, PA – Painesville, OH AMI Vendor Landscape is COMPLICATED! Meters Elster L+G GE Sensus Itron Tantalus Networks Cooper Sensus Elster SilverSpring Itron Tantalus L+G Tropos Back Office Systems Cooper L+G Electsolve Meter Sense eMeter Oracle GE OSISoft Leidos PrimeRead Software-as-a-Service Leidos UtiliSmart GE System Integrators & Project Managers: Wipro, Leidos Engineering RFI/RFP Process RFI issued to 23 vendors on March 27, received 24 responses ABB/Tropos GE Mueller OSISoft Tantalus Aclara Itron Systems PrimeRead UMS Eaton L+G nDimensions Sensus Utilismart Electsolve Leidos Nexgrid Siemens Wipro* Elster MeterSense Oracle Silver Spring *Unsolicited RFI response; no response from italicized vendor; demonstrations by bolded vendors Pilot Member Workshop on May 13 • Short list of Vendors selected RFP released on July 6; responses received on July 31 Comparative analysis prepared and reviewed with initial members Finalizing the program and preparing a proposal for approval 15 Business Confidential - Do Not Distribute AMP Advanced Metering Solution Back Office Infrastructure Outage Customer Utility Portal Portal viewer MDM Utility Systems AMI Head-End Field Infrastructure Meters Wireless Network AMP Managed Systems Billing System AMP AMI Program – Value Proposition for Members • Bulk pricing on field components • Financing options • Support for AMI deployment - project management, customer outreach and presentations to municipality’s leadership • One number to call – AMP personnel you already know • AMP will manage vendor relationships • AMP staff will managing the functional components – readings not coming in, collectors down, etc. • Sharing of best practices • Sharing of IT labor & resources – attract/retain/compensate staff AMI Program Subscription • Subscription will begin with the eleven initial members • Additional members will be accommodated and integrated into the overall project plan throughout 2016 • AMP Financing options are available 18 AMI Program Summary • Key Observations – Building a best of breed solution – Commitment of AMP staff & resources • Continued support for AMP member utility operations 19 Hosted Solutions – Future Options? • Like the AMI Program, others potential efforts will involve collaboration among members • Member outreach has identified other areas of member interest – – – – Customer information & billing systems After-hours customer support Demand response systems and technologies Distributed generation integration & operating support • AMP is committed to helping its members effectively deploy advanced technologies in their operations 20 Thank You! 21