Advanced Metering Infrastructure Procurement and Deployment

Port Angeles, WA

Advanced Metering Infrastructure Know Your Business Case Have A Procurement Strategy Evaluate 1st & Ongoing Costs Have A Communications Plan New Conservation & Customer Benefits Summary Outline

Business Case Customer needs Rate design needs Federal/state mandates Aging meters Meter reading costs Cost saving

New Time of Use Rate Design

How Old Are Your Meters? 63% of all meters are 25 years old or older

What’s Your Peak Hour? Peak HoursShoulder Hours

New Rate Design Residential, general service, non-profit customer classes Winter & summer seasonal energy rates Peak, off-peak, and shoulder periods Base charge Demand response credits Demand metering & charges only for large commercial

Your Procurement Strategy? Competitive negotiation or low bid Turn-key or multi-year deployment Vendor or utility installation What’s your risk tolerance? Demand response

Leverage Your Assets Use utility owned infrastructure Move toward smart infrastructure Full two-way communication Co-located hardware

Procurement Suggestions Stay technology neutral Hold interviews and demonstrations Check references and conduct site visits Know what you are willing to agree to Construction phases 3 rd party issues

1 st Cost Considerations Meters & disconnect meters Service repairs Demand response Installation Communications system Hardware & software Meter data management system Outage management system Integration services

Ongoing Cost Considerations License fees Pole attachment fees Software maintenance fees Server and switch depreciation Customer information system fees Network services (fiber optics, GPRS) Consider life cycle costing

AMI System Benefits –Metering & meter reading accuracy –Reduced number of estimates & misreads –Reduced difference between wholesale power purchases and customer sales –Reduced difference between water production and customer sales –Reduced theft of service & meter tampering issues

AMI System Benefits Reduced meter reading operating expenses –Reducing or eliminating final and rereads by personnel –Providing the ability for remote electric and water connects and disconnects Allow the City to… –Comply with federal and state unfunded mandates –Enhance rate payer equity –More promptly respond to customer inquiries –Zone metering data and right size meters Provide better service to our customers by… –Eliminating long and short reading periods –Being able to address billing and usage concerns more accurately –Fewer home and yard intrusions

AMI System Benefits Provide customers new tools… –Customer portal for consumption information –Involvement in managing utility cost –High usage & demand response notice –Outage or “loss of power” notice –Leak detection and reverse flow notices –Budget tracking/setting Provide customers voluntary demand response… –Water heaters –Smart thermostats –Hybrid electric vehicle charging –Other future ready appliances and devices

Communications Plan AMI meters are highly accurate so everyone pays for what they use it’s fair The AMI system allows the City to run its utilities efficiently and at the lowest cost possible it’s financially responsible Customers can have more control over their bill It’s future ready

Smart meter installation credited with finding fire risk Port Angeles resident Donna Rowan looks at the electric meter on the side of her house after utility workers discovered that her old meter was dangerously hot

Five Major Components Mi.Node Radio transmitter and receiver for electric meters Mi.Node Radio transmitter and receiver for water meters Mi.Gate Data collector Mi.Host Host server and User interface Mi.Portal Voluntary customer demand response

AMI System Overview 900 MHz Mi.Host (SW + Server) City Utility Billing Software Customer Web Based Interface Customer PDA Customer Cell Phone Metropolitan Area Network Fiber optics Water Heater Demand Response Controller Smart Thermostat Mi.Node Water meter 900 MHz Mi.Gate (Collector) Mi.Node Electric meter Mi.Node Electric meter Mi.Node Water meter

What is Peak Demand? Demand (kW) is the highest peak hour rate of energy consumed over a meter reading period –Current wholesale demand rates range from $1.32/kW to $2.30/kW, depending on month –New wholesale demand rates are about $8.50/kW

What is Demand Response? Changes in consumption patterns in response to changes in electricity prices during a specific time period –DR reductions are usually needed during peak times in the winter and summer

High hours 6am- 2pm Holidays What is Demand Response? 1 1 Reducing demand during peak hour, and/or 2 Shifting energy use to another time 2 Medium hours 2pm-10pm Monday through Saturday, Excluding Holidays Low hours

Voluntary Demand Response Customer-Side* –Residential DR Pilot (600 customer units) Water heaters, home area networks, thermal storage –Residential Wind Integration Pilot (41 customer units) Water heaters, thermal storage –Commercial & Industrial DR Pilot (8 customers) Open Automated Demand Response Communication Standards (OpenADR) communications protocol –Industrial Wind Integration Pilot (1 customer) Utility-Side –Voltage Optimization (VO) Use AMI to monitor and report lowest end-of-line feeder into City’s SCADA system * Made possible with the support of the Bonneville Power Administration

DR Application Utility identifies consumer on DR rates Utility sends DR events Utility Event Analysis Utility Customer Registration Customer Event Notification Customer Event Analysis Customer

Mi.Net Home Area Network The HAN Gateway is located inside the home Speaks: – Mi.Net 900MHz to meters – ZigBee to HAN appliances and Smart Thermostats Key Benefits: 1)Doesn’t burden every end point with cost 2)Tactically deploy HAN on subscription 3)Better RF performance 4)Deploy AMI now w/o tie to unknown Mi.Gate (Collector) 900 MHz ZigBee Thermostat Mi.Node Electric meter Mi.Node Water meter 900 MHz HAN Gateway

Load Control Switch Reduces peak demand while limiting customer impact During a DR event, the water heater will be turned off Water heater reheats to set-point after DR event completion Load control switch can also be used to control other devices DR credits based on participation Equipment will be installed at no-cost to customers

Smart Thermostat Reduces peak demand while limiting customer impact Simple user interface for thermostat programming and DR event overrides During a DR event, the setpoint name on the home screen will be replaced with an Event Indicator and a blue LED will light up the screen The modified target temperature appears below Event Indicator Thermostat returns to programmed set-point after DR event completion DR credits based on participation Equipment will be installed at no-cost to customers

Home Energy Manager Foundation Smart Thermostat Dockable Home Energy Manager Program & remote control

Utility Identifies Customers

Create DR Event

Customer Home Page

From the detailed information the customer can view reports and change alerts. Detailed Customer Information Consumption Readings Alerts Swap information Billing Location Meter Type

Customer Reports The customer can select different parameters and formats for the report.

Know your business case Have a procurement strategy Consider 1 st and ongoing costs New customer benefits New conservation benefits Communicate throughout

AMI System Acknowledgements Olympic Electric Company, Inc. SUNGARD

Procuring and deploying an AMI system is like parenting Just when you get good at it YOU’RE DONE! Concluding Thought

Larry D. Dunbar City of Port Angeles, Washington Deputy Director of Public Works & Utilities or Website AMI System RFP