economic and operational benefits of ami infrastructurewfms target range backlog hours worked....
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Economic and OperationalBenefits of
AMI InfrastructureComments before the
Pennsylvania Public Utility Commission
Bernard BujnowskiAutomatic Meter Reading Association
January 19, 2007
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AMRA History
• Formed in 1987 as a not-for-profit corporation under IRC 501 (c)(6) to inform, educate and promote technology and business system and solutions that provide remote access to utility consumption data.
• Founders came from utilities, carriers and vendors seeking a forum to discuss and focus on providing these solutions.
• Membership is about 1,200 professionals from utilities and corporations involved in AMR/AMI
– PPL, PGE, WPS, NU, Southern Company, SCE, Itron, DCSI, Cellnet
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AMRA Mission
AMRA is an industry association whose members own, manage, provide and/or support automated metering systems, related technologies and the data acquired.
AMRA’s purpose is to foster a favorable business, regulatory and technical environment in which its members will succeed.
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Objective
– Describe demonstrated benefits of operating networks
– Provide a context for the Commission’s further deliberation
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Distinctions
– Mobile Systems• Economical• Absence of fixed communication network between
end point and receiver• Benefits typically related to revenue cycle
– Reduced meter reading costs, improved customer service, revenue protection
– Fixed Network• Higher Costs• Additional functionality and value
– Two way communication-close to real time– Interval data, including daily– Communication platforms: radio
frequency/power line carrier/bpl/telephone lines
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DefinitionsAutomated Meter Reading (AMR) –
The ability to collect aggregated energy or water usage automatically via communications hardware, including wireless radio frequency (RF), power line carrier, and other telecommunications devices. Some have narrowed the definition of AMR to “mobile” technologies such as handheld (walk-by) or drive-by devices.
Advanced Metering Infrastructure (AMI) –
Emerged out of California when the state began its ongoing metering initiatives several years ago and has since spread throughout the industry. AMI includes the communications hardware and software, advanced meters and all data management systems necessary to store, validate and transmit the vast amount of data that will be collected via a true advanced metering system.
Source: Chartwell AMR Report, 11th Edition, November, 2006
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Growth in AMR unitsAnnualGrowth Overall Market Penetration
1995 45.3% 9,150,0001996 28.7% 11,777,0001997 26.9% 14,940,0001998 11.7% 16,689,0001999 15.0% 19,186,0002000 28.8% 24,707,0002001 34.0% 33,102,0002002 16.7% 38,646,0002003 18.3% 45,726,0002004 20.1% 54,916,9262005 11.5% 61,211,8042006 15.7% 72,611,0002007* 16.6% 87,100,0002008* 17.7% 105,800,5002009* 15.9% 125,800,0002010* 6.1% 150,000,000
*ProjectedSource: Chartwell AMR Report, 11th Edition, November, 2006
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Electric Marketby Ownership and Penetration of
AMR/AMI
Source: The Scott Report – AMR Deployments in N.A. – 2006 Data
18,400,000 16,600,000
94,400,100
3,600,000
7,200,000
26,500,000
-
10,000,000
20,000,000
30,000,000
40,000,000
50,000,000
60,000,000
70,000,000
80,000,000
90,000,000
100,000,000
Publicly Owned Co-Ops IOUs
All Meters(Est.)AMR19% AMR 43% AMR
28% AMR
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AMR/AMI Technologies
11,656,524
3,125,913 47,573 15,430
70,508,731
-
10,000,000
20,000,000
30,000,000
40,000,000
50,000,000
60,000,000
70,000,000
80,000,000
RF PLCTechnology
Phone Other Broadband
Cum
. Uni
ts S
hipp
ed
Source: The Scott Report – AMR Deployments in N.A., 10th edition – 2005 Data
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Why Utilities Use AMR/AMI• Revenue Cycle
– Avoided costs of monthly reads– Call Center cost reductions– Special Reads cost reductions– Installation check cost reductions– Improved revenue recovery (theft detection)– Improved cash flow
• Operational Benefits– Improved billing processes/results– Improved compliance performance
• Outage Management• Strategic Platform
– Time-of-Use Rates– Forecasting– Asset Management– Customer Communication
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Value-Added AMR/AMI Uses
Historical PracticesHistorical Practices
Immediate
Immediate
New EfficienciesNew Efficiencies
UnexpectedAdvantagesUnexpectedAdvantages
FlexibilityAnd
Options
FlexibilityAnd
Options
Strategic
Strategic
CustomerCare
CustomerCare
BillingData
BillingData
Load ControlLoad
Control
DistributionOperations
DistributionOperations
EngineeringPlanning
EngineeringPlanning
EnergySupplyEnergySupply
Least Cost
Least Cost
Cost SavingsAnd New Revenues
Cost SavingsAnd New Revenues
MarketApplications
MarketApplications
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Benefit Overview• Revenue Cycle
– Reduced meter reading costs• PPL eliminated all meter reading and related
supervisory positions- 175 positions/$16 million annual payroll, overheads, vehicle savings
• WPS = 106 positions, 71 vehicles– Service Personnel
• PPL eliminated 46 service personnel/meter installers-$4.3 annual savings
• WPS = 10 service positions• KCP&L = Eliminated 150,000 trips associated
with ‘move out’ reads• UI (United Illuminating) saved $1M in one
weekend remotely programming TOU calendar
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AMR BenefitsNU Deployment 1993-99
0
100
200
300
400
500
AMR's (1,000)
050
100150200250300
MR FTE's
0.0%2.0%4.0%6.0%8.0%
10.0%12.0%
Unread%
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Benefits Overview Cont’d.
• Call Center Benefits– AMI virtually eliminates estimated bills (and related
calls)• PPL experience allowed initial reduction allowed
reduction of 7-10 service representatives-annual savings of $400,000
• WPS estimates annual savings in excess of $100,000 annually
– Improved operational performance• Significantly improved compliance performance• Significantly improved billing accuracy and
throughput
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Billing WFMs CompletedSteady State Target Range - 16,000 - 17,500
4086
5
2727
2
1623
4
1856
5
1668
0
1809
6
2201
0
2244
8
2518
6
1828
4
1490
1
1330
6
1643
7
1487
1
1454
2
2602
2
0
10000
20000
30000
40000
50000
2003
2005 Jan Mar May Jul Sep Nov
050010001500200025003000
Hou
rs W
orke
d
WFMs Target Range Backlog Hours Worked
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Savings: Manual Billing
• Manual Billing Savings– WPS = $250,000 annual savings and growing– PPL = Similar savings
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875
1229
1983
0
250
500
750
1000
1250
1500
1750
2000
2250
2500
2004 2005 2006
PUC Informal ComplaintsPPL Experience
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01/29/05 Sat 24808 24720 88 9.87801/30/05 Sun 24849 24808 41 9.87801/31/05 Mon 24849 24849 0 9.87802/01/05 Tues 24894 24849 45 9.87802/02/05 Wed 24945 24894 51 9.87802/03/05 Thurs 24983 24945 38 9.87802/04/05 Fri 25012 24983 29 9.87802/05/05 Sat 25012 25012 0 9.87802/06/05 Sun 25012 25012 0 9.87802/07/05 Mon 25012 25012 0 9.87802/08/05 Tues 25039 25012 27 9.87802/09/05 Wed 25064 25039 25 9.87802/10/05 Thurs 25087 25064 23 9.87802/11/05 Fri 25114 25087 27 9.87802/12/05 Sat 25114 25114 0 9.87802/13/05 Sun 25114 25114 0 9.87802/14/05 Mon 25114 25114 0 9.87802/15/05 Tues 25152 25114 38 9.87802/16/05 Wed 25178 25152 26 9.87802/17/05 Thurs 25204 25178 26 9.87802/18/05 Fri 25227 25204 23 9.87802/18/05 Fri 25227 25227 0 9.87802/19/05 Sat 25227 25227 0 9.87802/20/05 Sun 25227 25227 0 9.87802/21/05 Mon 25227 25227 0 9.87802/22/05 Tues 25291 25227 64 9.87802/23/05 Wed 25349 25291 58 9.87802/24/05 Thurs 25415 25349 66 2.96602/25/05 Fri 25484 25415 69 9.41802/26/05 Sat 25549 25484 65 9.41802/27/05 Sun 25624 25549 75 9.41802/28/05 Mon 25691 25624 67 9.41803/01/05 Tues 25750 25691 59 9.41803/02/05 Wed 25773 25750 23 9.418
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Diversion / Revenue Protection Benefits• PPL example
– $2900 recovery– Industry (EEI) estimates 1-3%– 1% theft at PPL = $40.6 million– .25% theft at PPL = $10 million
• Vacant Accounts– KCP&L
• Vacant account monitoring = $1 million annual benefits
– PPL• $1.6 million annual benefit
– Additional $.5 million with MDM solution
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Outage Management
– Growing experience with use of fixed networks and storm management
• PPL closes 6% of outage jobs/ $1.7 annual million avoided cost
• WPS estimates its outage savings at $10-15,000 storm/location
• PECO/EXELON– $.5 million savings in single storm (Isabel-’03)– Approximately $.5 million annual operating savings– Operational improvements
» CAIDI reduction of 1.5 to 2 minutes-faster ID» Additional 3.5 reduction-power restoration» 15 minute reduction in analysis times
• Austin Energy saves 120,000 truck rolls ($70/roll)
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Time of Use Rates
– Infrastructure to support TOU historically available• Limited customer classes able to take
advantage– Fixed network systems allow everyone to take
advantage of time variant rates
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Regulators Support TOU or dynamic Rates for Residential Customers
4%
Would the Commission support plans to offerresidential customers any of these rate options?
64%
64%
56%
48%
68%
68%
76%
0% 20% 40% 60% 80% 100%
Time-of-use Variable
Day Ahead or Hour Ahead RealTime Pricing
Critical Peak Pricing
Time-of-use
Conservation Credits
Day Ahead Real-time-pricing
Hour Ahead Real-time-pricing% of State
Copyright 2004 UtiliPoint International, Inc.
Used with permission of UtiliPoint International
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Puget Sound Energy TOU Pilot
- ~300,000 Residential Customers – May 2001 to June 2002
- Results- a 5%-6% shift of energy usage from peak
periods to non peak period - ~1% conservation effect from those customers
on TOU rate- peak capacity savings of ~30-40MWs.
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Conclusion
• Deployed AMR/AMI infrastructure have typically met operational expectations
• Implementations not disruptive to customers
• AMI has the capacity to serve as a strategic platform