Archive for the ‘Revenue Protection’ Category

Smart Grid Introduces Big Risks to Meter-to-Cash Processes

Posted by Utilimetrics on February 21, 2012

By Eric Nelson, Synaptitude Consulting

Utilities that have successfully implemented traditional revenue protection methods, focusing on credit and collections, and energy fraud, typically minimize the revenue lost as a result of inherent inefficiencies in these processes to 3 to 4%. The disruptive technologies enabling energy smart grids will introduce new complexities to the meter-to-cash process, just as they have in other industries. Tele-communications is one such industry, which has faced and solved challenges similar to the ones now being introduced to the utilities industry, and provides an excellent source for applicable “lessons-learned”. For example, when market forces compelled telecommunication service providers to introduce new products based on next-generation networks, some of them experienced revenue losses of 15 % or more. There is no reason for utilities to suffer the same as smart grid rolls out; like communications providers, utilities can implement revenue assurance strategies and tools that ensure accurate data collection and billing and identify fraud and loss continuously.

Four Key Risk Areas
There are four main risk areas that smart grid’s complex meter-to-cash processes exacerbate which utilities ought to address proactively.

1. Revenue and Profitability Loss. Smart meter-to-cash complexity creates more potential breakdowns, service calls, and difficulties in correlating delivered and consumed energy with billed and collected revenue. Reporting breakdowns can go unidentified for weeks, compounding revenue loss over time. More complex rating and discounting drives both under- and over-billing errors. Intelligent diagnostic tools are required to ensure that all delivered and consumed energy is monitored and measured completely and that energy usage and consumption correlates accurately with billed and collected revenue.

2. Increased Customer Complaints. Smart grid introduces new pricing, services, and equipment. All invoice-driven industries experience spikes in customer inquiries and disputes when introducing new services, rates, and invoice formats. Given the associated costs and the negative impact customer complaints to PUCs have on rate relief initiatives, utilities would be well-advised to address these issues.

3. Fraud and Theft. Adding technology to power measurement and management creates vulnerabilities for thieves to exploit. For example, the wireless industry suffers new waves of fraud with each network upgrade. CBS News reported in 2009 that 70 percent of online fraud is perpetrated by organized crime. These groups recognize that fraud, across all industries, is more lucrative and less risky than narcotics trafficking, and Smart Grid creates opportunities for them. Identifying new forms of fraud requires intelligent diagnostic tools that can identify usage behaviors that should be investigated for fraud.

4. Day Demand Curve Costs. Smart Grid necessitates predictive analytics that enable utilities to analyze and respond to usage behavior and manage the day demand curve proactively. Data from many systems must be delivered reliably to enable the feedback loop that makes Smart Grid valuable. If the feedback loop is not reliable, the ability to manage demand will break down, which will in turn increase supply-side energy costs. To manage

Smart grid is technology intensive. Utilities will benefit from expertise, and should leverage the experience and expertise developed across industries that have faced similar technical challenges. Most smart grid meter-to-cash risks can be met through the expert application of comprehensive, proactive approaches to revenue assurance that deliver process and data integrity controls, intelligent diagnostics, and predictive analytics.
1http://www.cbsnews.com/stories/2009/05/05/tech/cnettechnews/main4991799.shtml

Posted in Revenue Protection, Smart Grid, Smart Meters | Leave a Comment »

Beyond the Meter

Posted by Utilimetrics on October 25, 2011

Lessons Learned from Oncor and Portland General Electric

For many years attention has focused on pre-deployment and deployment of advanced metering systems (AMS).  As utilities enter the final stages of deployment they face new challenges as well as tremendous opportunities for integrating technology within the utility and improving operations. 

Autovation 2011 covered the entire utility technology lifecycle. This article highlights the Beyond the Meter education session Tuesday, Sept. 27.

Oncor, the sixth largest utility in the U.S. began deploying fully functional AMS in late 2009. About two million of Oncor’s 3.2 million meters have been deployed with full deployment scheduled for 2012. This fully integrated system provides:

  • 15-minute VEE (validate, edit, estimate) data to customers, REPs and ERCOT (for settlement).
  • 2-way transactions (disconnects/ reconnects, on-demand reads, etc.).
  • Secured connections and services to home area network (HAN) devices via ZigBee SEP 1.0 radio frequency interface.
  • A common Web portal for REP, customers and customer authorized 3rd parties (GUI and APIs)

So how does it all work?

“You need a robust testing environment,” said Mark Carpenter, CIO of Oncor, Texas’ largest regulated transmission and distribution utility that serves 7.5 million people statewide. Carpenter is also a newly-elected Utilimetrics board member.

“In theory,” he said, “it’s nice to specify exactly what you want before you actually start building it.” Carpenter explained that when inventing the system in a dynamic environment, clarification and modification contribute to a continuous and repetitive process.

“Remember, [AMS] is not just a meter reading system,” said Carpenter. “This is a SCADA system.”  And as Carpenter specified, “It’s extremely important to know and understand your market.” According to Carpenter, the Public Utility Commission of Texas-led Advanced Metering Implementation Team process has worked well in Texas.

When designing the system, Oncor adhered to solid design principles, factoring in security from the very beginning. In an effort to make the systems most efficient, Oncor:

  • Included performance monitoring;
  • Designed the system for ease of upgrade/ modification;
  • Planned for evolving CIM interface changes;
  • Considered multiple software/ FW changes in advance; and
  • Provided robust system synchronization

In the testing/ building phase, Carpenter said that the two most important things to consider are:

  • Establishing robust development and test environments will help to maintain strict version control; and
  • Maintaining strict version control

“Managing data is a big deal,” said Carpenter. He explains that utilities must be continuously monitoring these large integrated systems, which require “constant care and feeding.” Oncor generates about one terabyte per month, within the two million meters. “Don’t wait to establish data retention policies.”

And continual performance improvement is imperative: “It’s important to always remember to continually validate the end-to-end production system,” said Carpenter, “especially after modifications.”

As a utility, your main focus on customers and stakeholders is key: “There are stakeholders in this business,” says Carpenter. “This isn’t just about technology—it’s about everybody.”

Revenue Protection with Smart Meters

Eric Spack and Steve Sprague are leading a unique mission at Portland General Electric (PGE). The PGE team is taking revenue protection to the next level and beyond, utilizing new technology to work more efficiently.

A proactive approach to revenue protection utilizes alarms and generates leads based on interval data and primary metering. A major part of the team’s workload consists of confronting marijuana growers whose operations result in huge losses for the utility.

“We had 45 meters, from which we were missing about 1,400 kilowatt-hours,” said Sprague, “and at the end of the month, we had 20,000 kilowatts missing.” Utilities are facing huge losses from thefts like these, and at PGE, in a state where growing medical marijuana is legal, these operations are oftentimes extended beyond legal limits, and utilities are paying the price.

Over the last three years, AMI has dramatically improved energy recovery for PGE, from 32 Mwh in 2007 to 44 Mwh today and 75 percent of leads for the Lost Revenue Protection are generated by readers:

  • Tampers & Diversion;
  • Stopped/ Damaged meters;
  • Multiplier errors;
  • Lost meters;
  • Drug houses; and
  • Safety issues

These smart meters maintain current capability, allowing for real-time usability. What specifically can the meters do?

  • Tamper alarm: If the meter is pulled or removed, an alarm is generated with a date and timestamp.
  • Alarms scored: Leads are automatically prioritized.
  • Lead generator: All the leads are sent through a portal to Energy Recovery where they are reviewed and assigned to ERU Investigators or meter men.
  • Leads filtered: Without filters, alarms are useless and “we are filtering out 68 percent of the alarms and leads coming in.”
  • Filtering against: WMIS, Service Link, Outage, which avoids wasted time on wasted trips.
  • Added benefit: Not only generates leads but allows PGE to use the information on existing cases and leads from other sources.
  • KWH analytics: Low use, high use and zero use, it reads abnormal usage patterns

Once the norm is established, Point of Passage metering installations are screened to prevent from losses. Meter failures and alarms, however, do not cause the largest losses. The problem therein lies with theft and particularly, grow houses.

When marijuana grow operations overload transformers and connectors, it’s at the expense of PGE.  “Houses are not meant to be greenhouses,” said Sprague. The usage thefts are typically in the range of $1,500 to $2,500 per month, according to Sprague and Spack. Ninety percent of power thefts supporting grow operations are done by splicing in ahead of the meter.

“[At PGE] we have a 100 percent success rate in criminal grow diversion cases,” said Sprague. In 80 percent of those cases, money was recovered.

By learning how grow operations work, PGE adjusted to them and hunted them down, and by the time they were done, according to Sprague, they worked about 60 grow sites and billed roughly $620,000.

If your utility is near completion or has already completed deployment, please share your experiences (challenges and successes) with your peers.  There are several ways you can do this:

  • Submit an abstract for Autovation 2012, Sept. 30-Oct. 3 in Long Beach, Calif. The Call for Speakers will open soon.
  • Provide a byline article for News Link or agree to be interviewed by News Link staff for an article. Or, submit a blog post. Contact Janice Greenberg.
  • Consider hosting a regional learning lab or participating in a webcast. Contact Debby Scheck.
  • Start a discussion on the Utilimetrics LinkedIn Group

We look forward to hearing from you!

Posted in Autovation, Post Deployment, Revenue Protection, SCADA, Smart Grid, Smart Meters | Leave a Comment »

 
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