Smart Meter Program Update Operational Benefits Realization Jim
Smart. Meter Program Update - Operational Benefits Realization Jim Meadows, Program Director August 2007
About Pacific Gas and Electric Company ► Energy Services to about 15 M People ► 5. 0 M Electric Customer Accounts ► 4. 1 M Natural Gas Customer Accts ► 70, 000 Square Miles ► ~20, 000 Employees ► Regulated by the California Public Utilities Commission (CPUC). ► Incorporated in 1905 2 2
The PG&E Smart. Meter program: ► will deploy a system for automated meter reading – hourly meter reads for electric, and daily meter reads for gas ► includes two separate systems: a power line carrier system for electric and a radio frequency system for gas ► involves an upgrade to both gas and electric meters – approximately 10 Million meters will be upgraded ► will be deployed over a five year period. An initial, paced deployment began in Bakersfield in November, 2006. Deployment efforts are scheduled to conclude in late 2011 ► will introduce additional capabilities over time, including outage management and remote connect/disconnect ► will enable the introduction of demand-response rates for residential and small business customers 3 3
Smartmeter Program Has A Range Of Benefits Customers ► Receive usage information to better understand manage their bills, and be able to participate in future energy efficiency and demand response programs ► Experience less inconvenience and intrusion by no longer needing to unlock gates and tie up dogs for monthly meter reads ► Reduction in the causes of delayed, inaccurate and estimated bills ► Experience faster outage detection and restoration times ► Opportunity to turn service on and off remotely PG&E ► Reduced operating costs ► Reduced peak loads when customers shift to non-peak energy use and when they conserve (demand response) ► Lower procurement costs resulting from reduced peak load and enhanced load modeling ► Improved customer satisfaction stemming from enhanced customer service capability ► Improved billing efficiency ► Improved outage management ► Reduced energy theft CPUC/State ► 4 Supports the CPUC’s price-responsive tariff requirements 4
Smartmeter Program Will Pay For Itself Costs* Costs < Benefits O&M Benefits* Demand Response Remote turn on / off Outage detection Service restoration ISTS Deployment $189 M Operations Call volume reductions Meters Networks 90% of costs Records exception reductions ISTS O&M $191 M Installations IT Systems Field Deployment System Integration $1, 299 M Project Management Avoided dispatches / truck rolls Meter Reading Complex billing Capacity planning ► The Smart. Meter program has a positive business case: Projected benefits exceed projected costs over a 20 year program life ► Operational efficiencies (including meter reading savings) cover 90% of program costs ► Demand response benefits (i. e. procurement cost savings) cover approximately 10% of 5 program costs and promise to provide additional benefits in excess of costs * 20 year Present Value of Revenue Requirement 5
90% Of Smartmeter Program Costs Covered By Operational Benefits Breakdown of Operational Benefits By Benefit Area 6 Total annual benefit from operations (at full deployment) = $160. 5 Million 6
Activated Meter Commitment to CPUC Savings Per Activated Meter Reader Electric $ $ (0. 8235) severance Gas $ $ (0. 8223) - - Other Employee Related Costs $ (0. 1706) $ (0. 1705) Remote Electric Shut-off Benefits $ (0. 1429) $ - Avoided TOU Meter Maintenance $ (0. 1155) $ - Cash Flow on Summary Bills $ (0. 0927) $ (0. 0225) Exceptions Processing $ (0. 0809) $ - Avoided Dispatch Where Power is On $ (0. 0794) $ - Significant Outage Restoration-Capital $ (0. 0764) $ - Significant Outage Restoration-Expense $ (0. 0578) $ - Lower customer Call Volumes $ (0. 0515) $ - Deferred Meter Testing $ (0. 0445) $ - Improved TOU Rate Changes $ (0. 0190) $ - Momentary Outage Detection $ (0. 0106) $ - Load Research Capital Savings $ (0. 0069) $ (0. 0071) T&D Capital Savings (gas) $ $ (0. 0143) TOTAL Savings/Meter/Month: $ (1. 7722) - $ (1. 0366) Ø Once meters are activated, we pay either $1. 77 or $1. 04 to the SM balancing account each month. 7 7
An “Activated” Meter Has Several Characteristics ► Installed: the endpoint equipment (meter for electric, module for gas) has been placed on customer premises ► Readable: the Smart. Meter system communicates with the endpoint equipment ► Billable: the billing system can use interval data collected through Smart. Meter to bill the customer ► Part of a virtual meter reader route string: the meter reader can be re -deployed when the virtual route string is removed from the manual meter reading workload Meters are activated in batches, by virtual route string Once a meter is activated, actual meter reading benefits begin to accrue 8 8
Activated Meters Lifecycle Meter/Network Installed § Network installed with serial diversificati on § Endpoints installed with serial diversificati on SM Enabled SM Read § Updates to § Meters billing become system searched in SM system § Customer account § Billing changed system to “SM performs enabled” validation § Electric meters take longer to search in than gas meters § Customer account changes to “SM read” QA / Anchor Billed Meters Eligible For Activation § Last manual § Customer meter read accounts on a SM § Visual route are inspection part of a to QA SM pool of installs meters eligible for § Customer activation billed on manually collected anchor reads § Service plan transition from manual meter reading route to SM route Completed Routes §A “complete” route is an manual meter reading route with zero meters § Can create a completed route with limited number of meters (Excludable s, UTCs, other meters out of scope) via either “closed routes” benefits functionality or manual Virtual Route String Benefits Realizations § Consists of § Committed to manual the CPUC for meter benefits reading associated with routes with activated zero meters, by (i. e. writing monthly completed checks utilizing routes) SM balancing account ($1. 77 § One each electric completed meter, $1. 04 route for each gas each serial meter) § Captured in reports § Release meter readers § Meters are activated 9 9
Meter Routes Progress 10 10
Benefits Realization For Meter Reading ► Meter reading benefits account for the bulk for program benefits - 53% of Smart. Meter operational (i. e. non demand response) benefits; 46% of total benefits ► Benefits are booked in a balancing account as soon as the meter is “activated” – PG&E cuts a check to the balancing account ► Meter reading benefits can only be realized once a meters on a virtual route string are activated or transferred to a different route ► Virtual route string = routes with different serials ► Meters are activated only after they are: installed, readable, billed, part of a completed virtual route string ► PG&E fine tunes installation activity to complete virtual route strings as soon as possible 11 11
In The Future, The Smartmeter Program Could Enable The Following Potential Capabilities Customers q Real time energy usage data to premise from meter q Building automation q Home energy/bill management tools and systems q Smart thermostat (programmable communicating thermostat – PCT) q Appliance control and monitoring q In-home displays PG&E q Direct load control (air conditioner, water heater, pool pump, etc. ) q CPP and other demand response programs and rates q Capacitor bank controls q Transformer load monitoring q Meter health monitoring q Preventive line maintenance data (momentary) q Targeted regional/area TOU q Identification of facility programs performance or customer usage q Smart thermostat control anomalies (programmable communicating q System load forecasting and thermostat – PCT) settlement q Distribution planning q Enhanced outage data q Distribution voltage management q Energy load research q Gas system planning program flexibility q Pre-pay metering q Gas distribution maintenance (e. g. cathodic protection q Distribution fault detectors monitoring) CPUC/State q Energy resource planning q Data for ISO system control q Load control programs q Demand response programs 12 12
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