1. Texas Experience Smart Meter Deployment / Data Policy
New Hampshire PUC Grid Modernization Working Group
Utility/Consumer Data Management Task Force
October 11, 2016

2. Overview of Texas Market
With respect to market structure, the role of the electric distribution utility is different in Texas than elsewhere in North America. Electric distribution utilities provide transmission, distribution and metering services in Texas.
The Retail Electric Providers (REPs), which have the relationship with the retail consumer, then decide how best to recover the T&D costs from their retail customers.
Texas is the only jurisdiction in North America that has carried through with a planned phase out of default service. After the regulated “price to beat” in Texas was offered through the incumbent provider (affiliated REP) from through 2006, it was retired.
Customers who had not selected an alternative provider remained with their current REP. Price regulation was removed and customers were advised to shop if they were not satisfied with the price or type of service provided by the affiliated REP.
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3. ERCOT
The Electric Reliability Council of Texas (ERCOT) manages the flow of electric power to 24 million Texas consumers in the ERCOT region – which represents about 90 percent of the state's electric load.
75 percent of the load is competitive choice customers – more than 7 million premises.
As the independent system operator for the region, ERCOT schedules power on an electric grid that connects more than 46,500 miles of transmission lines and 550 generation units.
ERCOT performs financial settlement for the competitive wholesale bulk power market and administers retail switching for 7 million premises in competitive choice areas.
ERCOT is a membership-based nonprofit corporation, governed by a board of directors and subject to oversight by the Public Utility Commission of Texas and the Texas Legislature.
ERCOT's members include consumers, cooperatives, generators, power marketers, retail electric providers, investor-owned electric utilities, and municipally owned electric utilities.
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4. Policy History
In 2005, the 79th Legislature passed HB 2129 to encourage the implementation of smart metering by directing the PUC to establish a non-bypassable surcharge for a utility to recover reasonable and necessary costs incurred in deploying advanced metering and metering information networks. Although HB 2129 did not require that smart meters be deployed by utilities in Texas, the intent was quite clear:
In recognition that advances in digital and communications equipment and technologies have the potential to increase the reliability of the regional electrical network, encourage dynamic pricing and demand response, make better use of generation assets and transmission and generation assets, and provide more choices for consumers, the legislature encourages the adoption of these technologies by electric utilities in this state.
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5. Policy History (Cont.)
In 2007, the 80th Legislature reiterated this encouragement when it stated in HB 3693:
to company policy.
It is the intent of the legislature that net metering and advanced meter information networks be deployed as rapidly as possible to allow customers to better manage energy use and control costs and to facilitate demand response initiatives.
Pursuant to HB 2129, the PUC adopted Rule § that addresses: (1) the minimum functionality to qualify for a cost recovery surcharge; (2) the process for an electric utility to notify the PUC and REPs of the deployment of smart metering and (3) the cost recovery surcharge for AMI deployment.

6. PUCT Rule
Under Rule §25.130, deployment of AMI by a utility was voluntary. The rule took a flexible approach to AMI deployment in order to accommodate future innovations.
Standardization of capabilities across ERCOT is also extremely important for REPs offering products to customers in multiple utility territories. Therefore, AMI deployed by a utility pursuant to §25.130(g)(1) must support the following functions:
Automated meter reading;
Two-way communications;
Remote disconnection/reconnection capability;
On-board meter storage of meter data that complies with nationally recognized nonproprietary standards;;
The capability to time-stamp meter data sent to ERCOT for purposes of wholesale settlement;
Capability to communicate with devices inside the premises including usage monitoring devices, load control devices and prepayment systems through a HAN based on open standards and protocols that comply with nationally recognized non-proprietary standards such as ZigBee, Home-Plug or the equivalent and
The capability to provide direct, real-time access to customer usage data to the customer and customer’s REP;
Means by which the REP can provide price signals to the customer;
The capability to provide 15-minute data or shorter interval data to REPs, customers and ERCOT or a regional transmission organization;
Ability to upgrade these minimum capabilities as technology advances and they become economically feasible.
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7. Data Flow Smart Meter Texas
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8. Smart Meter Texas (SMT)
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9. Smart Meter Texas (SMT)
Smart Meter Texas (SMT) is an interoperable information system which stores electric meter usage data received from participating Texas Transmission and Distribution Service Providers and provides access to meter usage data to Customers, Retail Electric Providers (REPs), and authorized Third Parties.
SMT provides a model for using one common interface across multiple utilities to access consumer energy usage data; and a model for using one common interoperable interface to communicate with Customer In-Home Devices over multiple utility AMS communication networks
SMT is the product of a collaborative stakeholder-driven process initiated by the Public Utility Commission of Texas (PUCT), designed to support the Advanced Metering System (AMS) deployment in the Texas competitive electricity market by leveraging Customer usage data made available by smart meters and the associated AMS communications and information technology infrastructure.
SMT development began in 2008 and, by the end of 2010, a base set of functionality was available, including access to smart meter usage information and HAN functionality.
By making these standardized services available to all REPs and Third Parties serving Customers in Texas and to all Customers with smart meters in the competitive regions of Texas, regardless of the TDSP service territory in which they are located or the REP or Third Party they are served by, SMT is a first-of-kind smart grid solution that is relevant and applicable to other jurisdictions.
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10. Access to Meter Data All Meter Data shall belong to the customer
Provides direct, real-time access to customer usage data to the customer and the customer’s REP, provided that:
hourly data must be transmitted to the utility’s web portal on a day-after basis
as soon as practicable 15-minute IDR data must be made available on the electric utility’s web portal
Read-only access must be provided to the customer, the customer’s REP, and other entities authorized by the customer
Access to the customer’s advanced meter data includes:
meter data used to calculate charges for service
historical load data
any other proprietary customer information.
Access must be convenient and secure
Data must be made available no later than the day after it was created
Allows a customer to authorize his/her data to be available to an entity other than his/her REP of Record
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11. Customer Access Option 1: smartmetertexas.com
Customers today can access their data from advanced meters in different ways:
Option 1: smartmetertexas.com
Advanced meters record energy usage in 15-minute intervals, providing customers with daily and cumulative energy usage information online through the Smart Meter Texas™ web portal.
Option 2: Energy Monitors and Home Area Networks
Customers can also view their usage information – as well as their carbon footprint and prices per kWh – in near real-time by using energy management devices such as in-home monitors (IHMs) and other home area network (HAN) devices.
Option 3: Retailer Websites and Smart Apps
Electric retailers are developing ways for customers to view and act on the information being collected from advanced meters.
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12. REP Access
TDU’s worked collaboratively with stakeholders to create an online web portal for customers and their designated agents, ERCOT and REPs to access consumption data.
This web portal, SmartMeterTexas, was launched in the Spring of The web portal is ADA compliant, and standardizes functionalities and data access across TDUs within ERCOT, with consistent content, availability and data format.
This web portal allows REPs to take full advantage of the AMI deployed, and develop retail electric services that incorporate dynamic pricing and demand response for residential and small commercial consumers.
This standardization ensures that REPs, customers and their agents have access to the same basic information in every territory, and that REPs do not have to develop different systems and processes for providing customer products in each TDU territory.
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13. Third-Party Access
SmartMeterTexas (SMT) is the conduit for customer information
Customer must opt-in rather than opt-out
Customer can grant or revoke access to a third party of their choice at any time
Customer must accept or reject the Access Agreement through electronic authorization prior to information being provided to Third-Party
Agreement lengths vary in duration and customer can choose length
Process is driven by security & customer data privacy with verification through SMT
Disclosures are provided to the customer that they control and manage their agreements with third parties, that third parties are not regulated by a state agency and that customers should read and understand third party privacy policies before accepting an agreement
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14. Data Privacy Provisions
Requires the PUC to prohibit an electric utility from selling, sharing, or disclosing information from an advanced metering system or meter information network
Includes information used to calculate charges, historical load data, and any other customer information.
Requires the PUC to allow an electric utility to share information with an affiliated corporation, or other third-party entity, if the information is to be used only for:
the purpose of providing electric utility service to the customer
other customer-approved services
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15. Settlement Provisions
Wholesale energy settlement is the process of matching financial debits for retailers’ purchases of wholesale power to credits for the generators who sell that power through the ERCOT energy market.
Since the ERCOT market opened in 2002, all residential and small commercial customers have been settled on statistical estimates of their usage – called load profiles.
ERCOT achieved a significant milestone in December 2009 when it began settling wholesale obligations using customers’ 15-minute consumption data.
Wholesale settlement using 15-minute interval data for retail customers was a major step in connecting the retail electric market with the wholesale market and helps to realize the full potential of advanced metering.
Catalyst for retailers to provide incentives and tools for those customers to use their energy more efficiently and lower their electric bills.
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16. HAN Provisions
The Home Area Network (HAN) is an integral feature for realizing benefits of Smart Meter deployment in Texas.
The HAN brings a rich set of consumption information to customers and the possibility of participating in time-differentiated pricing plans and load response programs that will permit them to save on their electric bills.
A HAN is defined as a network contained within a user’s home that connects a person’s digital devices from computers and peripheral devices to telephones, televisions, home security systems, “smart” appliances, and other digital devices that are wired into the network.
A HAN module allows multiple in-home appliances to be interconnected, yet individually identified and controlled, potentially allowing the user to carry out the following functions:
remote load control of in-home appliances;
improved measurement, verification and dispatch of demand response directives; and feedback displays to consumers showing the consumption and cost associated with usage of various appliances.
These functions may be used in connection with third-party demand response programs, and the customers efforts to reduce consumption.
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17. Facilitation of Product Development
Smart meters have further enabled the pursuit of providing customers more valuable technology and services to allow for enhanced energy management.
Prepaid - smart meters support the ability to offer “near” real-time usage based billing. Text messaging of daily usage.
Varying Rate/TOU – Many retailers in Texas are using time-of-use products to reward usage during low-price periods (Free Saturdays/Sundays/Weekends).
Demand Response – REPs are offering peak demand programs where customers can earn rewards/bill credits for curtailing usage during peak weather events.
Usage Analysis –There are many examples of REPs providing usage data (i.e., weekly/monthly s) to customers giving them the insights they need to take control of their energy use.
Disaggregation- Direct Energy has also been offering the “Direct Your Energy” bill in Texas, a new bill approach that provides appliance-level granular information by using the smart meter information and appliance-level usage understanding.
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18. Attributes of a Successful Deployment
The Texas Experience may be used to demonstrate a model for the development of similar customer- and market-enabling solutions in other jurisdictions
Utility-wide deployment with opt-out provisions.
Experience in Texas indicates that very few customers will opt-out especially if there is a cost attributable to the utility cost to continue to serve non-AMS meters
Remote disconnect/reconnect capability
Two-way communications
AMI systems integration providing enhanced outage management and restoration and improved distribution system monitoring
Operational savings such as reduced truck rolls, automated meter reading, and reduced energy theft
Enabler of customer energy management and demand response via both information and rate programs.
Smart meter deployment capable of enabling the integration of distributed energy.
The capability to provide 15-minute, or shorter, interval data to REP of Record without any additional consent required.
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19. Attributes of a Successful Deployment (Cont.)
One common interface across multiple utilities (service areas) to access customer energy usage data
One common interoperable interface to communicate with customer HAN devices over multiple utility AMS communication networks
On-board meter storage of meter data that complies with nationally recognized non-proprietary standards
Open standards and protocols that comply with nationally recognized non- proprietary standards, including future revisions thereto
Customer education as to safety and security
Single source of truth in data between smart meter data and settlement data
Utility performance measures
Ability to upgrade these minimum capabilities as technology advances and becomes economically feasible
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20. Appendix

21. Smart Meter Benefits and Savings
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22. Smart Meter Overview
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