1. 1 American Public Power Association Session 6 (PMA) September 24, 2007 Uses, Costs, and Implementation of AMR/AMI Herman Millican Austin Energy

2. 2 Agenda  Choosing The Right AMR/AMI Platform  Choosing The Cost Analysis Variables  Lessons Learned In Implementation

3. 3 Platforms  Broadband  Mobile  One-way RF Fixed Network  Two-way RF Fixed Network  Power Line Carrier  Satellite  Walk-by  Wired Telephone

4. 4 Metering Challenges  Load Profile  Totalization  Multiple Accounts  Security Concerns  Hard-To-Read Accounts  Power Quality Monitoring  Web Presentation

5. 5 Choosing The Cost Analysis Variables Current State [Base State]  BENEFITS: In addition to “normal” hard costs Company exposure (Walk By) Monthly set of eyes on meters (Walk By) AMRCIS interface provides web-based info Can use contractor staff for other Soft Services AMR reduce customer complaint/question time AMR reduce bill prep time Historical reads Low error rate, high performance contractor Low cost per read Proven reliable system Neighborhood watchCrime Deterrent  RISKS: Attack by animals (Walk ups) Human error No self-evaluation of meters Technology obsolescence CIS system is antiquated Cannot meet customer requests for billing date Limited data that can be collected Weather and traffic impact crews Database Synchronization Database Maintenance Demand response not available Interface not working Vehicle accidents Reduced metering registration (lost revenue)

6. 6 Choosing The Cost Analysis Variables Desired State [Needs State]  ADVANCED METERING SERVICES : In addition to “normal” hard costs Daily Reads CC Personnel Ping Meters For Current Read Remote turn on/off Accommodate Prepaid Metering Power outage indication Schedule turn on/off into system Demand side management (DSM) TOU Off-Cycle Reads Historical Reads Tamper Notification/Current Diversion Access Data Warehouse Data Filtering Mechanism Faster Notification of Stopped Meters  RISKS: Technology obsolescence CIS system is antiquated Database Maintenance Error rate above 1 % Security breaches (ability to hack) Too much technology Lower rate of return from new technology Cost of learning curve/errors Duplication of integration with CIS systems

7. 7 First Deployment Challenges Multi-Family  Five Major Universities  Multi-Family Units  1000 + Apartment Complexes in the Austin Area  More than 140,000 Units  Move In/Out Reads (Off Cycle Reads)  AE Back Office Resources  Service Orders Generated  Service Trucks on the Streets

8. 8 Targeted Deployment  Multi-Family Units  Electric Only Accounts  Single Phase Meters  New Construction Multi-Family Units  Hard to Read Meters  Network Meters (Downtown)  Airport Metering  City of Austin (Municipal) Accounts

9. 9 Installation Resources  Customer Information Center – Call Center  Information Technology  Telecommunication Engineering (Radio Network)  Distribution and Substation Engineering  Metering Operations  Project Management  Contracted Resources (Installers and Electrician)  Austin Energy Meter Electricians

10. 10 Lessons Learned In Implementation  Billing Cycle Services  Improvement in Cash Flow (Read to Bill1 Day)  Elimination of Estimated Bills and Re-Bills  Reduction in Non-billable Consumption  Reduction in Uncollectible Write-Offs  Reduction in Energy Theft

11. 11 Lessons Learned In Implementation  Customer Service  Reduction in High Bill Complaints  Reduction in Call Center Operations (Calls)  Reduction in Service Visits for Customer Problems  Vacancy Monitoring  Ability to move Read dates  Off-Cycle Reads and On-Demand Reads

12. 12 Lessons Learned In Implementation  Metering Reading and Operations  Elimination of Manual Meter Reading  Elimination of Special Reads (Move In/Move Out)  Avoided Vehicle and Equipment Costs  Reduction in Employee Injuries  Accelerate Replacement of Old Meters (Increase Revenue)  Database clean-up  Improve Metering Accuracy

13. 13 Lessons Learned In Implementation  Strategic Planning  Energy Data Warehousing  Web-based Energy Services  Rate Development  Energy Management Programs  Demand Side Management  Conservation

14. 14 Future Austin Energy Benefits  Integrate AMR points with Outage Analysis to improve restoration response times  Investigating AMR for Water on Fixed Network  Investigate the implementation of a Meter Data Warehouse

15. 15 Questions and Answers Contact Info: Herman Millican (512) 505-7070 Herman.millican@AustinEnergy.com