AMP’s Advanced Metering Program

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George Bjelovuk, AMP Project Manager

October 15, 2015

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Redefining AMP’s StrategyAMP’s recognition of market drivers • Changing regulatory environment• IOU decrease in generation investment and increase in

transmission investment• Expansion of renewable generation capacity• Growing customer interest in demand-side efficiency and

management• Proliferation of distributed generation

Eight cross-functional teams working to redefine AMP’s Strategic Plan and Objectives• One of the teams is focused on helping AMP members

with the deployment of technology in the operation of their business

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Redefining AMP’s StrategyWhat we know…• The utility industry business is increasing its use of

technology - in the business, in field equipment, and by customers

• Our member municipalities have an emerging need– Skill & talent not locally available

• Our operations are becoming more vulnerable to attack– Cybersecurity engineering is of paramount

importance

Members have recognized AMP’s ability to effectively manage bulk power purchases and power supply contracts• AMP’s Board has identified the need to support members

in their adoption of technology in their operations

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Redefining AMP’s StrategyOne of the eight teams is focused on technology enablement - “Hosted Solutions" • AMP members are evaluating many technologies in the

distribution and customer operations parts of the business• Vendors, distributors, and independent providers have

identified the need within small municipal utility operators• The term – “Hosted Solutions” – is reflective of what the

marketplace refers to these services– Vendors providing these services to individual

members

AMP assembled a group of member municipalities and staff to begin collaborations• Known as the “Smart Grid Advisory Committee”

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AMP Smart Grid Advisory Committee• Formed about 18 months ago to facilitate exchange of

information among Members interested in smart grid technologies

• Common interest among members in advanced meteringLeidos Engineering Study, 2014• Modeled several scenarios for members

– Each municipality deploying meters, networks, systems– Each municipality using a commercial hosting provider– Single hosting provider for all members– AMP-developed hosting services for all members

Identified the need for an “Owner’s Engineer & Project Manager”• Selected George Bjelovuk – utility operations and consulting

experience

Smart Grid Advisory Committee

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AMP’s Smart Grid ProgramProject launched on January 6, 2015

• Focus on simplifying AMI adoption for AMP members• Recognize variability among member’s requirements

Pilot member utilities’ benefits• Aggregating purchasing of equipment• Mitigating the risks associated with local deployment of

major technology components like Meter Data Management Systems

• Support business case & financial modeling • Assistance with presentations to leadership, where

required• Provide collateral material for customer communications

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Member Business Drivers• Address aging meter assets equipment

– Handheld/drive-by equipment is aging– Water meter modules near end-of-life (batteries)– Stopped or under-registering meters

• Improve customer service– Surrounding utilities providing internet access to interval data– Enhanced customer communication

• Support for emerging needs – rates, distributed generation– Distributed generation (e.g. solar) metering requirements– Changes in rate design – TOU, demand metering, seasonal

rates

• Defer complexity of technology management– Technically-skilled employees may be difficult to attract &

retain– Vendor relationships different from existing products &

services– Distribution grid management – automation, Volt/VAR control

• Seek ways to reduce acquisition cost

Current State - HHMR

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Billing System

• Manual meter reading process• Aging meters, handheld equipment• Support for new rates• “Smart grid” platform & customer expectations

Advanced Metering Evolution - AMR

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Meters

Meters replaced with “One-Way” RF System; Reading with “drive by” equipment• Improves efficiency (less estimates,

lockouts)• Continued shortcomings on advanced

rates, smart grid capabilities, & customer expectations

Billing System

Advanced Metering Evolution - AMI

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Communications Network, “Backhaul”(fiber, wireless, cellular)

Collectors

AMI Head-End

Field Infrastructure

Billing System

SmartMeters

Simplest form of Advanced Metering• Remote reading• Introduces two-way capabilities• Capable of remote connect & disconnect

Advanced Metering Evolution - AMI

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Back Haul

Collectors

AMI Head-End

Field InfrastructureBack Office Infrastructure

Billing System

MDMCustomerPortal

UtilityPortal

SmartMeters

Outage viewer

Utility Owned – Traditional “On-Premise”

• Deployment & support of IT systems requires specialized resources that may be difficult to attract and retain for AMP member municipalities

• Managing relationships with a new group of vendors̶� Utility equipment distributors help with this,

but only with the vendors they represent

• AMI projects require several key skill sets:̶� Effective presentations to leadership̶� Engagement of the community̶� Cost/benefit analysis̶� Project Management

• Independent action loses opportunity to achieve economies of scale from collaborative action

Infrastructure & Applications provided as

a Service

Utility Systems

Commercially Hosted Solutions

Back HaulCollectors

AMI Head-End

FieldInfrastructure

Billing System

MDMCustomerPortal

UtilityPortal

SmartMeters

Outage viewer• Expertise deferred to Hosted Solutions Provider

• Reliance on vendors and distributors to interact with municipality’s leadership

• Varying degrees of maturity among vendor and distributor’s project management skills

• Many Individual municipality contracts with multiple providers

AMP AMI Project - Status• First phase of project was to complete

“member outreach”– Identifying AMP members who had interest in moving

forward collaboratively with their AMI project

• Eleven Municipalities, 108,897 meters (goal = 85,000)– Bryan, OH

– Berlin, MD

– Dover, OH

– Ephrata, PA

– Newton Falls, OH

– Painesville, OH

– Piqua, OH

– Tipp City, OH

– Seaford, DE

– Versailles, OH

– Zelienople, PA

MetersElsterGEItron

L+GSensusTantalus

NetworksCooperElsterItronL+G

SensusSilverSpringTantalusTropos

Back Office Systems

CooperElectsolveeMeterGELeidos

L+GMeter SenseOracleOSISoftPrimeRead

Software-as-a-ServiceLeidos

UtiliSmartGE

System Integrators & Project Managers: Wipro, Leidos Engineering

AMI Vendor Landscape is COMPLICATED!

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RFI issued to 23 vendors on March 27, received 24 responses

Pilot Member Workshop on May 13• Short list of Vendors selected

RFP released on July 6; responses received on July 31

Comparative analysis prepared and reviewed with initial members

Finalizing the program and preparing a proposal for approval

RFI/RFP Process

Business Confidential - Do Not Distribute

ABB/Tropos Aclara Eaton Electsolve Elster

GE Itron L+G Leidos MeterSense

Mueller Systems nDimensions Nexgrid Oracle

OSISoft PrimeRead Sensus Siemens Silver Spring

Tantalus UMS Utilismart Wipro*

*Unsolicited RFI response; no response from italicized vendor; demonstrations by bolded vendors

AMP Advanced Metering Solution

Back Office Infrastructure

MDMCustomerPortal

UtilityPortal

Outage viewer

AMP Managed Systems

Wireless Network

AMI Head-End Field

Infrastructure

Billing System

Meters

Utility Systems

AMP AMI Program – Value Proposition for Members• Bulk pricing on field components• Financing options• Support for AMI deployment - project management,

customer outreach and presentations to municipality’s leadership• One number to call – AMP personnel you already know• AMP will manage vendor relationships• AMP staff will managing the functional components –

readings not coming in, collectors down, etc.• Sharing of best practices• Sharing of IT labor & resources – attract/retain/compensate

staff

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AMI Program Subscription

• Subscription will begin with the eleven initial members

• Additional members will be accommodated and integrated into the overall project plan throughout 2016

• AMP Financing options are available

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AMI Program Summary

• Key Observations– Building a best of breed solution– Commitment of AMP staff & resources

• Continued support for AMP member utility operations

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Hosted Solutions – Future Options?

• Like the AMI Program, others potential efforts will involve collaboration among members

• Member outreach has identified other areas of member interest– Customer information & billing systems– After-hours customer support– Demand response systems and technologies– Distributed generation integration & operating support

• AMP is committed to helping its members effectively deploy advanced technologies in their operations

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Thank You!