ed malemezian president, ed malemezian consulting, inc. amr is much more than amr o utage...

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Ed Malemezian President, Ed Malemezian Consulting, Inc. AMR is Much More Than AMR Outage Management, Reliability, Call Centers, and Asset Utilization All Win Big Metering America 2005 – Beyond AMR !!!

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Page 1: Ed Malemezian President, Ed Malemezian Consulting, Inc. AMR is Much More Than AMR O utage Management, Reliability, Call Centers, and Asset Utilization

Ed MalemezianPresident, Ed Malemezian

Consulting, Inc.

 

AMR is Much More Than AMR

Outage Management, Reliability, Call Centers, and Asset Utilization

All Win Big

                                                               Metering America 2005 – Beyond AMR !!!

Page 2: Ed Malemezian President, Ed Malemezian Consulting, Inc. AMR is Much More Than AMR O utage Management, Reliability, Call Centers, and Asset Utilization

Metering America 2005 – Beyond AMR !!!

Presentation Outline

●AMR Benefit Categories●Operational Savings●Supply Side & Resource Savings●New Revenue Opportunities

●The New Frontier●Outage Management●Care Center Support●Asset Optimization

●Show me the money !!

Page 3: Ed Malemezian President, Ed Malemezian Consulting, Inc. AMR is Much More Than AMR O utage Management, Reliability, Call Centers, and Asset Utilization

Metering America 2005 – Beyond AMR !!!

Quantifiable Benefits - Hard $$$

●Reduced expenses●Avoided losses●More effective planning ●Reduction in capital expenditures●New revenue opportunities

Page 4: Ed Malemezian President, Ed Malemezian Consulting, Inc. AMR is Much More Than AMR O utage Management, Reliability, Call Centers, and Asset Utilization

Metering America 2005 – Beyond AMR !!!

Intangible Benefits - Soft $$$

●Customer service benefits●Improved relations with regulators●Enhancement of your “brand” ●Strategic benefits

●We really won’t go into these today

Page 5: Ed Malemezian President, Ed Malemezian Consulting, Inc. AMR is Much More Than AMR O utage Management, Reliability, Call Centers, and Asset Utilization

Metering America 2005 – Beyond AMR !!!

Operational Savings

●Meter Reading●Estimated Bills●Meter accuracy - NT●Meter maintenance - NT●EMR equipment - NT●LP communications – NT●Load research - NT●Outage care center - NT●Outage dispatch - NT

●Outage investigation - NTH●Outage follow-up - NTH●Reliability indices - NTH●Care center support - NT●Current diversion●Connect/Disconnect - NTH●Collections – NTH●Revenue assurance - NTH●Usage / inactive acct - NTH

NT denotes Non-Traditional and NTH denotes NT Huge

Page 6: Ed Malemezian President, Ed Malemezian Consulting, Inc. AMR is Much More Than AMR O utage Management, Reliability, Call Centers, and Asset Utilization

Metering America 2005 – Beyond AMR !!!

Supply Side & Resource Savings

●Distribution Planning - NTH●Transmission Planning - NTH●Generation Expansion - NTH●Load Forecasting - NTH●Demand-Response – NTH●Asset Optimization - NTH

Page 7: Ed Malemezian President, Ed Malemezian Consulting, Inc. AMR is Much More Than AMR O utage Management, Reliability, Call Centers, and Asset Utilization

Metering America 2005 – Beyond AMR !!!

New Revenue Opportunities

●Power Quality Monitoring - NT●Power Outage Notification - NT●kW Demand Monitoring - NT●kW Threshold Alerts - NT●Load Profile Data Services

Page 8: Ed Malemezian President, Ed Malemezian Consulting, Inc. AMR is Much More Than AMR O utage Management, Reliability, Call Centers, and Asset Utilization

Metering America 2005 – Beyond AMR !!!

The New Frontier

●Outage Management & Reliability●Care Center Support●Asset Optimization

Page 9: Ed Malemezian President, Ed Malemezian Consulting, Inc. AMR is Much More Than AMR O utage Management, Reliability, Call Centers, and Asset Utilization

Metering America 2005 – Beyond AMR !!!

Outage Management (OM)

●Consists of four interrelated sub-systems●Outage Detection●Outage Extent Mapping●Outage Restoration Monitoring●Momentary Interruption Monitoring

Page 10: Ed Malemezian President, Ed Malemezian Consulting, Inc. AMR is Much More Than AMR O utage Management, Reliability, Call Centers, and Asset Utilization

Metering America 2005 – Beyond AMR !!!

Outage Management - cont

●Integrated with utility CIS, OMS, GIS & WMS systems

●Must be highly automated●Little operator intervention●Runs in real time●Effective filtering

Page 11: Ed Malemezian President, Ed Malemezian Consulting, Inc. AMR is Much More Than AMR O utage Management, Reliability, Call Centers, and Asset Utilization

Metering America 2005 – Beyond AMR !!!

Outage Detection

●Runs constantly in the background●Detect outages in near-real time●Detection goals

●Feeder & Line Section: less than 5 minutes with strategically placed meters

●Transformer & individual customers: less than 10 minutes to cover 100% of meters

●Must be reliable with few false positives

Page 12: Ed Malemezian President, Ed Malemezian Consulting, Inc. AMR is Much More Than AMR O utage Management, Reliability, Call Centers, and Asset Utilization

Metering America 2005 – Beyond AMR !!!

Outage Extent Mapping

●Once triggered, determines the extent of each outage

●Must know distribution network connectivity model and escalation rules

●Triggered by●AMR Outage Detection sub-system●Utility OMS, VRU, call center, or other related

systems

●Smart enough to identify separate outages in the same geographic vicinity vs. rolling up into a single, larger outage

Page 13: Ed Malemezian President, Ed Malemezian Consulting, Inc. AMR is Much More Than AMR O utage Management, Reliability, Call Centers, and Asset Utilization

Metering America 2005 – Beyond AMR !!!

Outage Restoration Monitoring

●Works very closely with Outage Extent Mapping

●Runs in near-real time to monitor the progress of outage restoration activity

●Verification that all customers have actually been restored●Before restoration crews leave the area●Before trouble ticket is closed out●Eliminates the “stragglers”●Proactive customer service

Page 14: Ed Malemezian President, Ed Malemezian Consulting, Inc. AMR is Much More Than AMR O utage Management, Reliability, Call Centers, and Asset Utilization

Metering America 2005 – Beyond AMR !!!

Restoration Monitoring - cont

●Eliminates the need to make follow-up phone calls●Manual / care center●Predictive dialers & associated systems

●Tremendous tool for follow-up on multi-day outages - hurricanes, ice storms, floods, etc.

●Particularly beneficial when people are not home●Vacation, summer home, mountain cabin, etc. ●Left to ride out the storm somewhere else

●Feeds data to reliability indicators

Page 15: Ed Malemezian President, Ed Malemezian Consulting, Inc. AMR is Much More Than AMR O utage Management, Reliability, Call Centers, and Asset Utilization

Metering America 2005 – Beyond AMR !!!

Momentary Interruption Monitoring

●Works closely with Outage Detection●Monitor Momentary Interruption counters in

each meter (blink / power down counter)●Monitoring frequency can be

●Near-real time - best●Historical - good

●Feed tickets into utility Work Management or Outage Management Systems

●Identify and reduce very annoying situations

Page 16: Ed Malemezian President, Ed Malemezian Consulting, Inc. AMR is Much More Than AMR O utage Management, Reliability, Call Centers, and Asset Utilization

Metering America 2005 – Beyond AMR !!!

Momentary Monitoring - cont

●Momentary interruption counts can be aggregated to isolate the specific area where the problem is occurring

●Troubleshooting can include more frequent monitoring (hourly) to isolate when the problem is occurring

●Eliminate momentary problems (tree branches) before they become permanent outages

Page 17: Ed Malemezian President, Ed Malemezian Consulting, Inc. AMR is Much More Than AMR O utage Management, Reliability, Call Centers, and Asset Utilization

Metering America 2005 – Beyond AMR !!!

OM - Operational Savings

●Care center call reduction - NT●AMR with real-time or near real-time

communication provides the means to notify the utility of outages and PQ problems before the customer feels the need to call the utility

●Calls to the care center will be reduced●Care center calls typically cost $1.00 to

$10.00 per call to handle

Page 18: Ed Malemezian President, Ed Malemezian Consulting, Inc. AMR is Much More Than AMR O utage Management, Reliability, Call Centers, and Asset Utilization

Metering America 2005 – Beyond AMR !!!

OM - Operational Savings - cont

●Trouble dispatch savings - NT●AMR with real-time or near real-time

communication provides the means to verify the problem to be real before generating a trouble ticket and sending it to the trouble dispatcher

●Calls handled by dispatch will be reduced●Tickets typically cost $0.50 to $10.00 per

call to handle

Page 19: Ed Malemezian President, Ed Malemezian Consulting, Inc. AMR is Much More Than AMR O utage Management, Reliability, Call Centers, and Asset Utilization

Metering America 2005 – Beyond AMR !!!

OM - Operational Savings - cont

●Investigation savings - NTH●AMR with real-time or near real-time

communication provides the means to verify the problem to be real before sending a trouble ticket to the field for investigation

●Outages can be more precisely defined●Investigators can be sent directly to the

proper location to effect the most speedy (less costly) service restoration

●Trouble tickets typically cost $25 to $150 per ticket to investigate

Page 20: Ed Malemezian President, Ed Malemezian Consulting, Inc. AMR is Much More Than AMR O utage Management, Reliability, Call Centers, and Asset Utilization

Metering America 2005 – Beyond AMR !!!

OM - Operational Savings - cont

●Restoration follow-up savings - NTH●AMR with real-time or near real-time

communication provides the means to verify that all customers are back in service before closing out the trouble ticket

●All customers can be checked to have power and the expected voltage before the troubleman or field crew leaves the area

●Done remotely vs. visiting each customer

Page 21: Ed Malemezian President, Ed Malemezian Consulting, Inc. AMR is Much More Than AMR O utage Management, Reliability, Call Centers, and Asset Utilization

Metering America 2005 – Beyond AMR !!!

OM - Operational Savings - cont

●Restoration follow-up savings - cont●Typical savings of $5 to $10 per customer

affected●Stragglers, or those inadvertently

overlooked, will be eliminated●A very embarrassing situation will go away●Eliminates return visit at $25 to $150 per

ticket●Eliminates the expense of follow-up phone

calls

Page 22: Ed Malemezian President, Ed Malemezian Consulting, Inc. AMR is Much More Than AMR O utage Management, Reliability, Call Centers, and Asset Utilization

Metering America 2005 – Beyond AMR !!!

Power Quality

●Closely related to Outage Management

●Enabled by AMR system deployment●Tremendous impact on customer

satisfaction●Facilitates improvement in Reliability

Indicators reported to the utility commission

Page 23: Ed Malemezian President, Ed Malemezian Consulting, Inc. AMR is Much More Than AMR O utage Management, Reliability, Call Centers, and Asset Utilization

Metering America 2005 – Beyond AMR !!!

Power Quality - cont

●Power outage detection●Voltage monitoring

●High / low voltage●On demand checks - care center,

customer service & account managers●Sags & swells●Voltage imbalance

●Momentary interruptions●Harmonics

Page 24: Ed Malemezian President, Ed Malemezian Consulting, Inc. AMR is Much More Than AMR O utage Management, Reliability, Call Centers, and Asset Utilization

Metering America 2005 – Beyond AMR !!!

PQ - Operational Savings

●Investigation savings●Voltage and Power Quality problems

can be diagnosed remotely●Calls investigated in the field will be

reduced●Trouble tickets typically cost $25 to

$150 per ticket to investigate

Page 25: Ed Malemezian President, Ed Malemezian Consulting, Inc. AMR is Much More Than AMR O utage Management, Reliability, Call Centers, and Asset Utilization

Metering America 2005 – Beyond AMR !!!

PQ - New Revenue Opportunities

●Upon receipt of PQ and outage calls, utility can offer “premium” services●Digital message - Customer notification

via pager, cellphone, fax, and email, with the details of the problem

●Automated generation of trouble tickets

●CI customers willing to pay $25 to $100 per month per meter for these services

●Customers love it !!!!

Page 26: Ed Malemezian President, Ed Malemezian Consulting, Inc. AMR is Much More Than AMR O utage Management, Reliability, Call Centers, and Asset Utilization

Metering America 2005 – Beyond AMR !!!

Reliability Improvement

●Improvement in Reliability Indices - NTH●AMR with real-time or near real-time

communication provides the means to reduce outage duration by speeding up the whole outage detection, investigation and restoration process

●Reduced outage duration improves reliability indices such as SAIDI, CAIDI, ASAI, and others

Page 27: Ed Malemezian President, Ed Malemezian Consulting, Inc. AMR is Much More Than AMR O utage Management, Reliability, Call Centers, and Asset Utilization

Metering America 2005 – Beyond AMR !!!

Reliability Improvement - cont

●Reliability Indices - continued●Improved reliability indices save maintenance

and restoration $$$ - one can achieve reduced outage duration through brute force (more crews on duty, shotgun facility upgrades, etc.) or by faster outage detection, investigation & restoration

●Improved reliability indices can bring in big $$$ with Performance Based Rates and related regulatory programs

Page 28: Ed Malemezian President, Ed Malemezian Consulting, Inc. AMR is Much More Than AMR O utage Management, Reliability, Call Centers, and Asset Utilization

Metering America 2005 – Beyond AMR !!!

Care Center Support

●AMR systems and AMR data provide great assistance in solving customer problems●Historical usage data●Real-time information with the customer

on the phone●Meter reads – billing issues●Final reads, move-in, and move-out●Power on or off – inside trouble or utility

problem●Voltage – high, low, or flickering condition

Page 29: Ed Malemezian President, Ed Malemezian Consulting, Inc. AMR is Much More Than AMR O utage Management, Reliability, Call Centers, and Asset Utilization

Metering America 2005 – Beyond AMR !!!

Care Center - Historical Usage Data

●Provide daily or hourly usage data●Easily posted on the web

●Self-service for customer inquiries●Reduces call volume answering questions

●Data readily available for care center rep●Helps explain customer usage●Compares present usage against past

patterns●Visual tools help identify anomalies

Page 30: Ed Malemezian President, Ed Malemezian Consulting, Inc. AMR is Much More Than AMR O utage Management, Reliability, Call Centers, and Asset Utilization

Metering America 2005 – Beyond AMR !!!

Care Center - Real Time Data

●Meter reads with customer on the phone●Identify or refute meter reading errors●Explain billing questions●Allows the rep to talk with authority –

good data removes most uncertainty from the explanation

●Final bills can be generated “on the spot”●Eliminates the need to send someone to

field on customer move-in and move-out

Page 31: Ed Malemezian President, Ed Malemezian Consulting, Inc. AMR is Much More Than AMR O utage Management, Reliability, Call Centers, and Asset Utilization

Metering America 2005 – Beyond AMR !!!

Care Center - Real Time Data - cont

●Power Problems●Can tell instantly if utility power is

present at the meter or not●Identifies inside trouble or utility problem●Ask customer to check his breakers, etc.●Can eliminate a utility service call

●Some AMR meters provide accurate voltage measurement at the meter●High, low, or flickering voltage●Inside trouble or utility problem●Can eliminate a utility service call

Page 32: Ed Malemezian President, Ed Malemezian Consulting, Inc. AMR is Much More Than AMR O utage Management, Reliability, Call Centers, and Asset Utilization

Metering America 2005 – Beyond AMR !!!

Care Center - Operational Savings

●Care center call reduction●Calls to the care center will be reduced●Care center calls typically cost $1.00 to

$10.00 per call to handle

●Trips to the field will be reduced●Final / special meter reads typically cost

$25 to $75 per read to obtain●Crew / trouble visits typically cost $25 to

$150 per trip to investigate

Page 33: Ed Malemezian President, Ed Malemezian Consulting, Inc. AMR is Much More Than AMR O utage Management, Reliability, Call Centers, and Asset Utilization

Metering America 2005 – Beyond AMR !!!

Asset Optimization

●AMR systems can provide hourly load profile data on some or all customers

●With hourly load profile data on all the customers under a utility device you can determine the peak, coincident loading on that device●Distribution transformer●Line section (wire & fuse)●Recloser, Feeder, Substation, etc.

Page 34: Ed Malemezian President, Ed Malemezian Consulting, Inc. AMR is Much More Than AMR O utage Management, Reliability, Call Centers, and Asset Utilization

Metering America 2005 – Beyond AMR !!!

Asset Optimization - cont

●Knowledge of peak loading in real time ●Allows operation closer to maximum

capabilities●The margin of safety can often be reduced

- less uncertainty●Assists decision making for field switching

during emergencies●AMR can provide accurate inputs to VAR

management and related power optimization systems

Page 35: Ed Malemezian President, Ed Malemezian Consulting, Inc. AMR is Much More Than AMR O utage Management, Reliability, Call Centers, and Asset Utilization

Metering America 2005 – Beyond AMR !!!

Asset Optimization - cont

●Knowledge of historical peak loading●Identifies underutilized utility devices

(transformers, wire, fuses, etc.), thereby extending their useful life

●Identifies overloaded utility devices – upgrade on regular time vs. burn-up

●Provides valuable input to the utility planners making system improvements

●Provides inputs into the utility design models used to engineer utility facilities

Page 36: Ed Malemezian President, Ed Malemezian Consulting, Inc. AMR is Much More Than AMR O utage Management, Reliability, Call Centers, and Asset Utilization

Metering America 2005 – Beyond AMR !!!

Asset Optimization - cont

●Distribution Planning Savings ●Better data provides for better, more

effective planning, and better utilization of resources

●Policies, practices, standards, and models can be fine-tuned to better reflect reality

●Small improvement to the planning process results in huge savings

●An improvement of 1.0% on an annual distribution budget of $200M is $2.0M

Page 37: Ed Malemezian President, Ed Malemezian Consulting, Inc. AMR is Much More Than AMR O utage Management, Reliability, Call Centers, and Asset Utilization

Metering America 2005 – Beyond AMR !!!

Asset Optimization - cont

●Transmission Planning Savings ●AMR systems allow the utility to collect

detailed consumption and demand data on every customer up through the transmission system

●Transmission planning processes and benefits are similar to those discussed for distribution

●An improvement of 1.0% on an annual transmission budget of $150M is $1.5M

Page 38: Ed Malemezian President, Ed Malemezian Consulting, Inc. AMR is Much More Than AMR O utage Management, Reliability, Call Centers, and Asset Utilization

Metering America 2005 – Beyond AMR !!!

Asset Optimization - cont

●Generation Expansion Savings ●AMR systems allow the utility to collect

detailed consumption and demand data on every customer up through the generating system

●Generation expansion processes and benefits are similar to those discussed for distribution

●An improvement of 1.0% on an annual generation budget of $250M is $2.5M

Page 39: Ed Malemezian President, Ed Malemezian Consulting, Inc. AMR is Much More Than AMR O utage Management, Reliability, Call Centers, and Asset Utilization

Metering America 2005 – Beyond AMR !!!

Conclusions

●There are a myriad of benefits that bring value to AMR business cases – many are traditional – many are non-traditional

●Outage Management, Care Center Support, and Asset Optimization are part of AMR’s New Frontier

●The New Frontier is real: it is far beyond just talk and theory – FPL and a number of utilities are deriving these benefits today

Page 40: Ed Malemezian President, Ed Malemezian Consulting, Inc. AMR is Much More Than AMR O utage Management, Reliability, Call Centers, and Asset Utilization

Metering America 2005 – Beyond AMR !!!

Conclusions - continued

●A key “lesson learned” is to get all the other utility groups involved at the outset – traditional utility silos are bad

●Interface standards like MultiSpeak and IEC 61968 are helping with system integration issues – support them

●Don’t overlook the New Frontier just because it is hard to get people on board - it adds tremendous value (more than meter reading) ... Go for it !!!

Page 41: Ed Malemezian President, Ed Malemezian Consulting, Inc. AMR is Much More Than AMR O utage Management, Reliability, Call Centers, and Asset Utilization

Metering America 2005 – Beyond AMR !!!

Questions ????

[email protected]