1. Electricity Demand Response and Advanced Metering for Integrated Utilities Arkansas Public Service Commission Lonni Dieck AEP May 24, 2007

2. AEP-SWEPCO Arkansas
SWEPCO has TOU rate for industrial customers having loads of 800 kW or greater
SWEPCO also offers a curtailable service rider for customers who contract for not less than 1000 kW
Limited customer participation

3. Existing AEP DSM Tariff Offerings (excluding interruptible offerings)

4. AMI Benefits Offer customer options Improved customer service
Demand response – lower peak through potential for load control
Pre-pay metering
Improved customer service
Reduction of estimated bills, First call resolution
Outage & restoration reporting from meters
Better customer satisfaction, reduced outage time & costs
Assist improvements in reliability
Improved circuit information to better target preventive maintenance spending
Increased service quality
Voltage data on all meters, transformer loading
Assists in energy theft and tamper detection
Reduce field visits
Read ins/outs, remote reconnects/disconnects, etc.

5. AMI Challenges
AMI not only requires sophisticated metering with two-way capabilities, but also involves a substantial infrastructure investment that includes costs of implementation, billing, IT system modifications, communication costs, etc.
AMI technology is in a state of evolution.
AEP/SWEPCO currently evaluating available technologies
Protocols and open standards are still being developed
Implementation of AMI must be cost-effective:
Potentially more applicable for urban areas/ not as well suited for sparse installations
More cost-effective at large-scale deployment due to economies of scale
Customer acceptance is an unknown
AMI is a useful tool, but is not an alternative to the expansion of transmission and the construction of the generation facilities needed in the future.
DR programs enabled by AMI, may postpone investments in transmission and generation facilities.

6. Cost Recovery
Regulatory cost recovery of AMI and associated infrastructure needs is crucial.
Must recognize all costs, including implementation, billing, IT system modifications, communication costs, etc.
Sharing costs and benefits of AMI between participants and non-participants is a issue to be resolved.