Archive for the ‘Public Policy’ Category

Federal, state & local legislative updates

Profile: SCE’s AMI/MDM Smart Grid Strategy

Posted by Utilimetrics on April 29, 2011

Southern California Edison is regulated by the California Public Utilities Commission, which mandated SCE and the other two IOUs in the state to implement smart metering programs.

SCE responded by creating an advanced meter infrastructure project called Edison SmartConnect, which will replace approximately 5 million electric meters for residential and commercial customers below 200 kilowatts in demand with “next generation” smart meters by the end of 2012.

“The goal is an infrastructure that will enable utility companies to partner with their customers to lower peak demands,” explains David Erickson, director of IT and Business Integration, Edison SmartConnect. “We can do this by providing information and data to customers that they have never had before.”

For example, residential and commercial customers will be able to see their usage in 15-minute and hourly increments, respectively, and can see usage patterns. The system will also be able to provide customers with time-of-use peak and off-peak rates.

“Customers can sign up for us to turn off their air conditioning during certain events and receive incentives,” he adds.

The System

Each morning at 8 a.m., customers who are “hooked up” can see their usage for the time period of the previous midnight and back. This provides them with 720 reads per month (24 daily reads x 30 days), rather than the traditional one they receive with their monthly bills.

Getting the system up   and running has been and continues to pose challenges. SCE has a 50,000 square-mile service territory, with 14 million customers and 5 million actual accounts. “We will have smart meters in all five million accounts,” reports Erickson.

As can be imagined, a lot of logistics has been involved in developing the Edison SmartConnect program, from the initial planning of how SCE was going to deploy the meters to how it would stage warehousing activities, as well as how it would strategically work through its service territory, district by district.

“We are replacing about approximately 6,500 meters a day,” states Erickson. “However, there have been days where we replaced 10,000 and even 12,000 meters.” Between September 2009 and April 2011, SCE has deployed about 2.5 million meters. It will have the remaining meters deployed by the end of 2012.

The Technology

Besides the logistical considerations, there is also the technical systems infrastructure to consider. This involves collecting, processing, validating, loading, and storing of data, so customers can access the information to use for energy management purposes, and so SCE can access it for billing purposes. The technology includes a Network Management System (NMS), a Meter Data Management (MDM) system, and the smart meters themselves.

The NMS collects the data from the meters, communicating with them using a local area mesh network that feeds up into a cellular network. “We send a command to the meter to request usage data,” he states. “The meter sends the data back through the network.” It then goes to a cell tower, and from there comes back to SCE’s data computer center, where the NMS receives the data from all the meters.

SCE sends the commands out about 1 a.m. each morning to all meters. However, the information comes back at different times. About 50% are back by 2 a.m., and 99.9% are back by 6 a.m. 

The NMS then passes the information on to the MDM, which takes the interval data and makes sure the information is valid. “If we don’t get data back from certain meters, we estimate the gaps in the interval data,” he explains. For each account, SCE will correlate the data and run it against the rate that it has for each customer. This will provide the determinant to create the bill. This data is then passed back to SCE’s legacy mainframe billing system that it has had for many years. The billing system then creates the bill.

Once the data is validated by the MDM, it is also sent to the data warehouse. “We have a separate system and we store it in the data warehouse,” states Erickson. As a result, when customers log onto the SCE website at 8 a.m. they can directly access SCE’s data warehouse to view their usage. 

The MDM also allows SCE to remotely turn service on and turn off, instead of having to send a field service rep out to do so. “This takes about eight seconds,” he reports. 

Interval Billing

A key element of Edison SmartConnect is interval billing. “Interval billing is driven by the MDM,” explains Erickson. “The complexity of this begins with the business requirements that we had to satisfy with our system to provide the capabilities we wanted.” SCE had about 2,500 specific internal business requirements, which translated into over 5,000 system requirements. This translated into about 2,000 test scripts and about 7,000 test conditions. “We also did ‘performance of scale’ testing,” he continues. “These systems are built for certain throughputs and thresholds by the vendors. However, we wanted to make sure they would perform with the numbers we needed – five million meters. We didn’t want to make an investment like this and find out down the road that there would be problems that would prevent us from doing more metering or billing.”

SCE began testing the interval billing in January 2010 and began implementation in October 2010. Currently, SCE has about 150,000 accounts that are part of the interval billing program. “By late summer, we expect about one million customers to be getting their bills with interval billing,” he states. “I will talk a lot more about this testing during the Utilimetrics webcast May 4.”

Benefits

Obviously, the most important benefit of Edison SmartConnect will be the ability to reduce peak demand requirements. “It will also help us with the interface between smart meters and the outage management system, which we will be starting in June 2011,” states Erickson.

Furthermore, it will help SCE prepare for the future implementation of “home area network” technology, which will allow customers to have in-home digital displays for energy management and will tie into the smart meters and programmable thermostats.

Join Erickson Wednesday, May 4 at 12:30 p.m. Central for a webcast on Edison SmartConnect’s Meter Data Management System. Click here to register or for more information. The webcast is free for Utilimetrics members.

Posted in Autovation, Deployment, Education, Meter Data Management, Pre-Deployment, Project Management, Public Policy, Smart Grid, Smart Meters | 1 Comment »

Dismantling the Myths about Smart Meters for Electric Customers

Posted by Utilimetrics on April 4, 2011

As any utility in the deployment or post-deployment stage can attest, there is much more to a successful installation than purchasing the right technology and ensuring it is successfully installed. Customer acceptance is vital; without it, utilities may face uphill public battles. And for some utilities, those battles are very painful.

Customer reluctance ranges from letters to the editor to protests to refusing to allow the meter change outs. Some communities have formed groups to fight the installation of smart meters.

Why all the hostility against a technology that has been proven to help consumers monitor energy and conserve valuable resources? Myths! There are a number of myths surrounding smart meters, and although none have been validated, many consumers believe them.

The three most common “myths” are:

  1. Smart meters cause health problems because of the radio waves or electromagnetic waves
  2. Smart meters will compromise a family’s security and privacy
  3. Smart meters will cause rates to increase

Health Issues

“The claimed health effects of radio frequency is a burning topic these days,” notes Ralph Abbott, founder of Plexus Research – SAIC. “There are groups of people who believe that we live in a ‘soup’ of RF energy, or EMFs, that can cause cancer. Sources of concern include televisions, microwave ovens, and cell phones.”

To date, there is no documentation that this is true. According to Ralph, most of the research has been commissioned by the cell phone industry. As a result, some people claim this is industry-biased.

Things are different with smart meters. The reason is that individuals can make the decision whether or not to use a cell phone. “They can’t decide to reject having a smart meter installed,” notes Ralph. “The citizens of Marin County, California, have outlawed smart metering, and there are county statutes against any further deployment.” In addition, some citizens have petitioned the California PUC to halt all further deployment of smart meters in the state. However, there is a legal battle going on over this, according to Ralph, because the Federal Communications Commission (FCC) reserves the right to make determinations about health matters.

Utilities need to find a way to separate rumor, speculation, and junk science from real science that is conducted by qualified people, according to Ralph. “Most of the work done on this, though, is by utility agencies, he states.  ”Authoritative reports are available to consumers showing that the levels of radiation are absolutely miniscule, especially compared to cell phones.” However, he adds, consumers can simply say they are biased, because they are written by the utility industry.

Recently, the California Council on Science and Technology came out with a report showing there is no problem. “Fortunately, the CCST report has an impressive list of academics and scientists who are not part of the utility industry, making it as objective as possible,” notes Ralph. “As a result, this report is starting to have some positive impact around the country.”

Security/Privacy Issues

According to Andrew Brock, president of Rio Tronics, considering the increases in credit card fraud, identify theft, and Internet information being compromised, it is understandable consumers may have concerns about privacy and security issues related to smart meters. “In response, some regulators are saying that, while aggregate data can be made available publicly, data on individual consumers should only be made available to those consumers,” he states. “Utilities should also emphasize to customers just how secure the data is because it is well encrypted.”

“One thing smart metering does is determine usage every hour or 15 minutes,” notes Ralph. “This can provide information on whether someone is home, so if a nefarious individual was able to access this data, they could try to figure out if you were home.” However, according to Ralph, this information isn’t particularly useful, because usage levels will change if heating or air conditioning go on or off, and this can occur whether the person is home or not. In addition, he adds, NIST (National Institute of Standards and Technology) is creating cybersecurity standards that will require data to be encrypted and afforded a number of other forms of protection.

Billing Issues

According to Andrew, there have been a couple of studies done on the question of smart meter accuracy by a California utility to help allay its customer concerns. “The studies confirmed smart meters accurately record usage, the systems are correctly processing data, and there are no systemic issues, other than a few exceptions,” he reports.

However, he adds, some additional details were missing. “For example, the utility should have explained to customers that the electro-mechanical meters being replaced by smart meters could have been running slower over time,” notes Andrew. “As a result, bills might have increased because of the improved accuracy of the smart meter.” The utility should have also explained that the deployment of the smart meters coincided with a heat wave, and this caused some customers to assume that the smart meters were at fault for their increased bills. “Third, there were also some incorrectly applied rates that are now being corrected,” he adds.

When educating customers about smart meter accuracy issues, Andrew believes the industry should emphasize the data they will be getting will eventually allow them to reduce their bills by better managing their usage.

General Strategies

While there are some specific approaches the industry can take when dealing with the myths, Andrew believes strategies can and should be similar for all three concerns. He recommends five steps:

  1. Listen to your customers’ concerns and needs. Ignoring them will only make things worse.
  2. Educate your customers with information related to their concerns.
  3. Prepare the proper type of pilot program, one that involves customer segmentation, customer education, the opportunity for customer feedback, response to that feedback, and making customers partners rather than adversaries.
  4. Roll out the program slowly, learning along the way.
  5. Finally, offer an opt-out provision. “You will always have those who won’t trust anything you say related to health issues, privacy/security issues, and cost issues, so you can just let them choose not to participate,” states Andrew.

Ralph believes that, by using the right combination of education and other strategies, the industry should be able to calm the concerns of most rational citizens. “However, you may never be able to reach those who are on the fringe,” he admits.

 

Posted in Clean Technology, Demand Response, Department of Energy, Deployment, Education, Emerging Technology, Home Area Networks, Pre-Deployment, Project Management, Public Policy, Smart Grid, Smart Meters | Leave a Comment »

Pepco and DC Water to Serve as Utility Hosts and Featured Speakers at Autovation 2011

Posted by Utilimetrics on March 22, 2011

Utilimetrics is pleased to announce that Pepco and DC Water will serve as host utilities for Autovation 2011.

Joseph M. Rigby, chairman of the board, president and CEO of Pepco Holdings, Inc. (PHI) and George S. Hawkins, general manager of DC Water will be keynote speakers at the Opening General Session, Monday, September 26.

Rigby has worked in the electric utility industry since 1979.  He was elected PHI president and chief executive officer effective March 1, 2009, and was elected chairman of the board May 15, 2009.

PHI provides utility service to approximately 1.9 million customers.  Its service territory includes Washington, DC and suburban Maryland, the Delmarva Peninsula, including Delaware, and southern New Jersey.

Rigby serves on a number of boards, including the U.S. Chamber of Commerce, EEI and Energy Insurance Mutual.  He was recently elected secretary of the Greater Washington Board of Trade.

Rigby earned a B.S. in Accounting from Rutgers University and an MBA from Monmouth University.

George S. Hawkins was named to the general manager post September 3, 2009 by the DC Water board of directors. With an operating and capital budget of nearly $800 million dollars, DC Water provides drinking water delivery and wastewater collection and treatment for a population of more than 600,000 in DC, as well as the millions of people who work in or visit the District. DC Water also treats wastewater for a population of 1.6 million in Montgomery and Prince George’s counties in Maryland, and Fairfax and Loudoun counties in Virginia.

Prior to joining DC Water Hawkins served as director of the District Department of the Environment (DDOE). He held senior positions with the Environmental Protection Agency (EPA) and served Vice President Gore on the National Performance Review.

Hawkins graduated Summa Cum Laude from Princeton University and Cum Laude from Harvard Law School.

“This is a year of firsts for Autovation,” said Joel Hoiland, Utilimetrics CEO. “It’s the first time Autovation has had two utility hosts, and the first time it has had a water utility serve as a host,” he said. “We’re very pleased to have these innovative utilities involved in Autovation 2011. Their willingness to share experiences, lessons learned and best practices will enhance our already exceptional education programming for electric, water and gas utilities,” he continued.

Autovation 2011 is Sept. 25-28 at the Gaylord National Resort and Conference Center.

An Early Announcement will be sent to all members in late-March and information will be available on the Utilimetrics website soon.

 

Posted in Autovation, Clean Technology, Cybersecurity Issues, Demand Response, Deployment, Education, Emerging Technology, Home Area Networks, Meter Data Management, Pre-Deployment, Project Management, Public Policy, SCADA, Smart Grid, Smart Meters, Standards, Transmission and Distribution Technologies, Uncategorized | Leave a Comment »

Big News for Utilimetrics Members

Posted by Utilimetrics on October 29, 2009

A couple of years ago the buzz was about the rising tide of advanced metering infrastructures (AMI). With Tuesday’s announcement the current situation could be aptly described as the smart grid/smart metering tsunami. Do you agree?

With everyone anticipating President Obama’s announcement regarding stimulus funding, we weren’t sure how the news would be received. It is safe to say, at this juncture, that the event has produced a tipping point for the rollout of smart grid technologies, and most notably smart meters, which serve as the building blocks of a smart grid.

By coincidence, on Monday afternoon we were conducting a strategic planning meeting when the evening teleconference regarding smart grid funding was announced. Nearly everyone in the room had either submitted a grant proposal (utilities) or helped prepare grant proposals (vendors and consultants).

From that point forward the tenor of our meeting changed. On Tuesday we learned that total funding would amount to $3.4 billion, with matching private spending of $4.7 billion bringing the total smart grid spend to $8.1 billion.

For the smart metering community, of which Utilimetrics is the leading trade association, funding will support the deployment of 18 million smart meters, representing 13% of American homes.  We estimate the current smart meter penetration rate in North American at 7%, so the additional 13% will produce a dramatic increase in smart meters over the next 18 months.

Altogether, 100 grant recipients are set to deploy 18 million smart meters, 1 million in-home displays, 200,000 advanced transformers, 175,000 load-management devices, 170,000 smart thermostats and 700 automated substations.

Our discussion on Tuesday provided significant insight from those who received funding and those who didn’t.  Many of our members already have smart meter plans in place and will move forward, with or without stimulus funding, although the non-recipients may move at a slower pace. We estimate an even greater increase in smart meter deployments, particularly factoring in plans in the pipeline among non-award recipients.

The question remains, are those companies who were not awarded stimulus funding at a disadvantage?

It is noteworthy that many of our members in the water business have already received stimulus funds from the EPA.

Congratulations to all award recipients!

Posted in Clean Technology, Department of Energy, Grants, Home Area Networks, Public Policy, Smart Grid, Smart Meters | Tagged: , , , | Leave a Comment »

 
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