Utility Information Systems Supervisor Approved by: /s/ Glenn O. Steiger General Manager

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1 AGENDA ITEM NO.: 5.A.1 MEETING DATE: 10/20/2014 ADMINISTRATIVE REPORT NO.: To: Honorable Public Utilities Board Submitted by: /s/ Robert Orbeta AGM - Administration From: Steve Chiu Utility Information Systems Supervisor Approved by: /s/ Glenn O. Steiger General Manager Subject: Authorize the General Manager to Enter into a Professional Services Agreement with Leidos Engineering, LLC in an Amount Not-to-Exceed $398,748 for a Targeted Metering Solution Pilot and Authorize the General Manager to Approve a Contingency Amount Not to Exceed $60,000 for Unexpected Field Conditions and Meter Quantity Variations RECOMMENDATION By motion, authorize the general manager to enter into a Professional Services agreement with Leidos Engineering, LLC (Leidos) in an amount not to exceed $398,748 for a Targeted Metering Solution Pilot and authorize the general manager to approve a contingency amount not to exceed $60,000 for unexpected field conditions and meter quantity variations during implementation. BACKGROUND On February 24, 2014, Alameda Municipal Power (AMP) presented to the Public Utilities Board (Board) an Advanced Utility Technology Plan that included the assessment findings and recommendations that will enable AMP to meet its advanced utility technology aspirations. A finding in the report stated that AMP is below average when compared to its peers in the use of advanced utility technology. In particular, the report discusses the potential benefits and feasibility of the implementation of an Advanced Metering Infrastructure (AMI) system, first in a targeted manner for specific customers, then in a full deployment for all customers in the service territory. The top seven recommendations outlined in the report are: 1. Planning 2. Organization Change Management 3. Customer Engagement Platform 4. Electric Vehicle Plan and Policy 5. Targeted Metering Solution 6. Cloud-Based Solutions 7. Geospatial Visualization and Asset Management

2 AGENDA ITEM NO.: 5.A.2 MEETING DATE: 10/20/2014 ADMINISTRATIVE REPORT NO.: Details on all of the recommendations are found in the December 9, 2013 presentation to the Board (Exhibit C) and the report presented to the Board on February 24, 2014 (Exhibit D). AMP has made the decision to proceed with a targeted metering pilot recommendation. On March 17, 2014, AMP provided to the Board a presentation on a Targeted Metering Pilot (Exhibit E) that included information on pilot objectives, history, current metering practices, and the possible targets of the Pilot. AMP then engaged NexLevel Information Technology, Inc. (NexLevel) to assist with the requirements development and procurement administration for a Targeted Metering Solution (Pilot). NexLevel is a local consulting firm specializing in assisting California public sector and municipal organizations and has assisted nearby cities with similar advanced metering related engagements in the past. NexLevel facilitated several interdivisional workshops at AMP to develop a Pilot solution requirements document to be used in a Request for Proposals (RFP). The Pilot is intended to implement a turnkey advanced metering solution for select commercial and residential customers and includes meter installation services, meter communications solution, a customer meter data web portal, hosted backend systems including meter data management system, training for utility staff, system operations, maintenance, and Pilot project administration. The Pilot is to include approximately 300 large commercial and industrial customer meters and approximately 200 residential customer meters. No commitment will be made to continue operation or to institute ownership of the balance of the Pilot. The Pilot project objectives, as specified in the RFP are as follow: External Objectives 1. Provide improved customer service by allowing customers to better understand and manage their energy consumption, costs and carbon footprint 2. Provide timely customer access to near real-time data via the Internet through a Customer Portal that will show detailed information regarding energy usage 3. Provide more rapid response to customer service requests 4. Provide improved meter reading and billing accuracy 5. Provide Green Button data access Internal Objectives 1. Test AMI technology benefits and assumptions 2. Gain experience with AMI infrastructure and communications 3. Gain experience with AMI data and system requirements 4. Automatically collect interval usage data from target customer group 5. Generate flat file from AMI meter data for monthly billing 6. Gain experience with service switch 7. Gain experience with Software-as-a-Service (SaaS) providers 8. Minimize revenue loss due to meter inaccuracies and theft 9. Modernize AMP s electric system by replacing aging and obsolete meters

3 AGENDA ITEM NO.: 5.A.3 MEETING DATE: 10/20/2014 ADMINISTRATIVE REPORT NO.: DISCUSSION On June 3, 2014, AMP issued a RFP soliciting proposals from qualified firms for the implementation of a Targeted Metering Solution Pilot. The RFP was sent to over 16 firms and was also published in the Bay Area News Group s local publication, the Alameda Journal. Proposals were received on July 3, 2014 from the following seven bidders (in no particular order). 1. Itron, Inc. 2. Wise Men Consultants 3. Eaton s Cooper Power Systems 4. GE Digital Energy 5. Leidos Engineering, LLC 6. AMI Investments, DBA Nighthawk 7. XtraLight Manufacturing, DBA Utility Metering Solutions The bids ranged from $377,145 to $905,000 for total implementation, including the first year of service and maintenance. A summary of the bid results is attached (Exhibit B). Staff analyzed the proposals and conducted reference checks and recommends the award of contract to Leidos Engineering, LLC based on the overall scoring on administrative requirements, technical requirements, customer references, company financial stability, and pricing. Although not the lowest bidder, Leidos is the second lowest bidder with a $21,603 difference from the lower bidder, while scoring the highest in overall requirements. The award will be for a one-time, non-recurring fee of $381,888 to build out the pilot system and to be charged on pre-defined milestones, and one year annual operations and maintenance managed service fee of $16,860, for a contract total of $398,748. A contingency amount not to exceed $60,000 is to be included for unexpected field conditions and variations in meter quantities during implementation. Leidos is a recognized industry leader in smart grid technology and has more than 3,000 people focused on meeting the needs of the energy industry and more than 40 years of utility infrastructure experience. Leidos has completed smart grid work with more than 80 utilities and have developed a portfolio of technical knowledge and best practices on smart grid technologies. Leidos has over $5 billion in revenues for fiscal year Leidos has successfully implemented its Smart Grid as a Service (SGS) solution for utility clients of similar size and characteristics as AMP. Several of these utilities have elected to expand their initial pilot projects to a full deployment. SGS is a managed solution providing the meters, the module interface units (radio transmitters), and field date collectors, along with all of the necessary computer hardware and software on a subscription basis. There are no add-ons with SGS; included are a utility management portal, consumer portal, outage analysis module, advanced analytics module, meter data management, customer energy analysis, system visualization, and numerous daily reports and interfaces to

4 AGENDA ITEM NO.: 5.A.4 MEETING DATE: 10/20/2014 ADMINISTRATIVE REPORT NO.: AMP s customer information and billing system. SGS utilizes fully redundant, highly secure, and state-of-the-art data centers in its cloud-based solution. The networks utilized in this solution will meet or exceed industry standards for privacy and security. The SGS solution can be rapidly deployed, and is scalable from pilot to full. Leidos will serve as the program manager for the Pilot and has sole responsibility for all areas of the delivery of this project, including what is provided by its partners. Leidos will utilize the technology from Elster to provide meters, mesh and backhaul network communication, and the meter data management system. Single-phase electric services will leverage the Elster REX2 meter while polyphase electric services will leverage the Elster A3 ALPHA meter. Services for meter installation will be provided by Utility Partners of America and wide-area network backhaul technology will be provided by Verizon Communications. If the Pilot successfully meets AMP s objectives and confirms the applicability of this technology in Alameda, AMP will look to consider a full AMI implementation. FINANCIAL IMPACT The Board has previously authorized a budget of $175,000 in the FY2015 budget for the Pilot. The additional funding of $263,748 will be required. The remaining funds will be obtained from reserves. LINK TO STRATEGIC PLAN AND METRICS Strategy 3: Strategy 6: Strategy 8: Attract and retain an effective workforce that is appropriately aligned, well trained, equipped with the right tools and technology, and properly recognized. Implement energy efficiency, renewable power and customer service programs to increase customer satisfaction. Plan for the long-term reliability of utility distribution system assets while ensuring that annual operations and maintenance are implemented. EXHIBITS A. Agreement B. Summary of Bid Results C. December 9, 2013 PUB Presentation D. February 24, 2014 PUB Report E. March 17, 2014 Target Metering Pilot Presentation

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19 CITY OF ALAMEDA, CALIFORNIA ALAMEDA MUNICIPAL POWER SUMMARY OF BID RESULT (Bid Opening Date: July 3, :00 p.m.) CONTRACT SPECIFICATION NO. PS Targeted Metering Solution Pilot BIDDER Total Cost for Pilot Period Eaton's Cooper Power Systems $377, Leidos Engineering, LLC $398, Itron, Inc. $412, AMI Investments dba Nighthawk $483, GE Digital Energy $498, XtraLight Manufacturing dba UMS $755, Wise Men Consultants $905, AGENDA ITEM NO.: 5A MEETING DATE: 10/18/2014 EXHIBIT B - Page 1 of 1

20 AGENDA ITEM NO.: 5.B. MEETING DATE: 12/09/2013 EXHIBIT A AGENDA ITEM NO.: 5A MEETING DATE: 10/20/2014 EXHIBIT C Smart Grid Technology Plan Preliminary Findings and Recommendations Public Utilities Board December 9,

21 Overview 1) History and Phase 1 Approach 2) Smart Grid Maturity Model (SGMM) 3) Findings 4) Recommendations 5) Next Steps 2

22 3 History and Phase 1

23 History 2010 APW Strengthening its Foundation Staff education; strengthen knowledge and skills APW Introduced Advanced Technology Issued RFI for Advanced Utility Technology 2012 APW Board Provided Direction for Advanced Technology. Issued RFP for the Development of Advanced Utility Technology Plan. 4

24 History December 2012 PUB Authorized Boreas Group to develop an Advanced Utility Technology Plan. December 2012 to Current Phase 1 of Technology Plan. 6 Weeks On Site Over 60 Employees Engaged Over 79 Workshops (Education, Job Shadow, Discussions, and Assignments) Report Review and Revision July 15, 2013 Technology Building Blocks Education Presentation for PUB 5

25 Phase 1 Approach Workshops including all staffing levels. Education and examples. Compare with current industry trends and similar utilities. Identified business gaps and needs. Validate 6

26 Phase 1 Approach Discovery Analysis Week 5 Validate opportunities/pain points Identify value Start to develop options Discuss cost/schedule/resourcing of options Weeks 1 and 2 How AMP works together What technology is used Identified certain opportunities. Cross Functional Weeks 3 and 4 Identify opportunities Familiarize everyone with potential solutions (e.g. Cost/Benefit, Functionality) Building Blocks Week 6 Brainstorming and refining the options Options Development - Process - Organization - Technology - Convergence of above Report 7

27 8 What is the Smart Grid to AMP

28 What is the Smart Grid to AMP? What: New technologies to increase operational capabilities Two way communications systems Down the road, link distributed generation, storage and alternative energy sources Why: Practical working efficiency Increased customer service to Alameda Data analytics 9

29 What is the Smart Grid to AMP? Fundamental Technology Layer Geographic Information System Work Management System Outage Management System Maintenance Management System Advanced Metering Infrastructure (AMI) Distribution Automation & SCADA Communications AMI / Smart Meters is only one component of the Smart Grid. 10

30 What is the Smart Grid to AMP? Generation Transmission Distribution Customer Gen Control EMS SCADA Mobile GIS OMS MWM Operations Management Energy Mgmt Asset Management CMMS RCM Customer Management WMS EIS GIS MMS CMMS EA Graphic Design EIS Mobile GIS CIS Meter Reading CRM IVR EE Portal TOU Energy Mgmt FLISR BI AMI DR CES Smart Grid Paradigm DMS VVC DA MDM Dynamic Pricing DER 11

31 12 Smart Grid Maturity Model

32 Smart Grid Maturity Model AMP participated in SGMM for POU s in 2011 Four Compass Surveys Completed Survey Workshop Completed by AMP Team Aspirations Workshop by Certified Navigator 8 Smart grid process domains 175 Expected characteristics Provides a common framework to define key elements of smart grid transformation. Analysis and results provided to the PUB by SAIC. 13

33 14 SGMM Domains

34 Smart Grid Maturity Model (SGMM) Levels PIONEERING Breaking new ground; industry leading innovation OPTIMIZING INTEGRATING ENABLING INITIATING DEFAULT Optimizing smart grid to benefit entire organization; may reach beyond organization; increased automation Integrating smart grid deployments across the organization, realizing measurably improved performance Investing based on clear strategy, implementing first projects to enable smart grid (may be compartmentalized) Taking the first steps, exploring options, conducting experiments, developing smart grid vision Default level (status quo) 15

35 AMP s 2011 SGMM Profile 1 Alameda Today

36 AMP s SGMM Aspirations Alameda s Year 2020 Aspirations Alameda Today

37 SGMM & AMP AMP has taken a follower strategy by tracking and gaining experience from others. Higher level not always better. Scoring system does not consider business goals and operating environment. 18

38 19 Findings

39 Preliminary Findings and Opportunities Major Categories of Findings: Technology Process People Based on: AMP s vision and needs. Industry Trends AMP s 2020 SGMM Aspirations PUB s adopted strategic goals and objectives 20

40 Preliminary Findings and Opportunities Technology Current State / Challenges 1. Good understanding but limited use 2. Limited system integration 3. Inconsistent acceptance and use of existing technologies Technology Opportunities 1. Performance Visualization 2. Knowledge Management 3. Work Management 4. Field Automation 5. Customer Enablement 21

41 Preliminary Findings and Opportunities Process Current State / Challenges 1. Effective Business Processes / Results 2. Inconsistent Adherence & Documentation 3. Dependence on Manual and Paper based Processes 4. Moderate Level of Task Handovers / Data Re entry Process Opportunities 1. Review & Re design 2. Inter divisional Process Coordination 3. Align with Technology Solution 4. Automate not just Mechanize 5. Documentation and Training 22

42 Preliminary Findings and Opportunities People Current State / Challenges 1. Perception Motivation / Reward 2. Limited staff and skill capacity People Opportunities 1. Change Management 2. Skill Inventory & Training 3. Outsource 23

43 Preliminary Findings and Opportunities 24

44 25 Recommendations

45 Preliminary Recommendations Smart Grid Technology Plan Recommendations 1. Planning 2. Organizational Change Management 3. Customer Engagement Platform 4. Electric Vehicle Plan and Policy 5. Targeted Metering Solution 6. Cloud-Based Solutions and Assess Application Insourcing 7. Geospatial Visualization (Netbas Migration) and Asset Management 8. KPI Dashboard 9. Expanded Use of Document Management 10. Grid Operations/ Distribution Automation 11. Customer Enhancements (Customer Outreach, Internal and External Communications, Tools) 12. Basic Work order Tracking 13. Outage Management 14. Mobile Technology 15. AMI Re-Evaluation 16. AMI Deployment and MDMS Implementation 17. Integration of Major Systems 18. Distribution Management System 19. Formal Plan Review and Refresh 26

46 Preliminary Recommendations 2014 Begin Work on Recommendations # Planning 2. Organizational Change Management 3. Customer Engagement Platform 4. Electric Vehicle Plan and Policy 5. Targeted Metering Solution 6. Cloud Based Solutions 7. Geospatial Visualization and Asset Management 27

47 Planning Initial planning is necessary to mitigate risk. Initiate Smart Grid implementation while planning for future technology. Develop solid foundation for AMP to approach further implementations. Identify, address, and resolve staffing gaps. SMR OS GO WAM TECH CUST VCI SE 28

48 Organizational Change Management Plan Facilitate initial project staging. Provide AMP with a platform to approach future project deployments. Organization level planning and identification of key change agents. Establishment of mission, vision, value, and culture statements. SMR OS GO WAM TECH CUST VCI SE 29

49 Customer Engagement Platform Empower and engage customers to manage their energy effectively. Increase customer knowledge of energy. OPower Customer Engagement Platform Web and Paper Home Energy Reports Analytics and reporting of energy use. Education and Advise Neighbor Comparison SMR OS GO WAM TECH CUST VCI SE 30

50 EV Plan and Policy Driven by developing EV market. Define EV plan and policy that addresses: EV Charging Stations (Public, Private, 3 rd Party) Time of Use (TOU) Rates AMP Fleet Needs Engineering and Permitting Standards Metering Pilot Programs SMR OS GO WAM TECH CUST VCI SE 31

51 Targeted Metering Solution Advanced meters for large commercial customers. (~300 Meters) Advanced meters for select residential customers such as backyard easements and customer reads. Collect interval data and sensor information. Pilot for AMI technology. Internal skill building and process determination. Investigate sensor capabilities through advanced meters. SMR OS GO WAM TEC H CUST VCI SE 32

52 Cloud Based Solutions Leverage cloud based technologies for high impact, and low resource cost. Examples: Cloud solution to collect, manage, and present data from Targeted Metering recommendation. Work Flow Visibility Electronic Time Keeping Collaboration Tools SMR OS GO WAM TECH CUST VCI SE 33

53 Geospatial Visualization and Asset Management Establish the foundational data hub referenced by geographic location. Enable future application integration. Used for planning, maintenance and outage support. Requires data extraction, consolidation, and validation of current data. SMR OS GO WAM TECH CUST VCI SE 34

54 Timeline # Recommendation Planning X X X 2 Organizational Change Management X X X 3 Customer Engagement Platform X X X 4 EV Plan and Policy Policy and Strategy Development X X Develop and Implement Pilot Programs X X 5 Targeted Metering Solution Develop and Issue RFP + Vendor Selection X Implementation X X 6 Cloud Based Solutions Electronic Timesheets X Evaluate and Implementation of Other Solutions X X X 7 Geospatial Visualization and Asset Management Data Cleanup, Consolidation and Validation X Develop and Issue RFP + Vendor Selection X X X Implementation X X 35

55 Recommendations SGMM SMR OS GO WAM TECH CUST VCI SE Strategy, Management & Regulatory A B A D Organization & Structure A A B G D Grid Operations Work & Asset Management A B G G B 0 F G Technology Customer Value Chain Integration A B C D E F G D E E G Societal & Environmental C D A D PLANNING OCM CEP EV POLICY TARGET METER CLOUD GIS 36

56 37 Recommendations 8 19

57 KPI Dashboard A computer interface providing data visualization of relevant Key Performance Indicators. Allow decision making at closest point of need. Increase availability and visibility or information. 38

58 Document Management Review and document processes and procedures, using a document management system with the goals of: Preserve institutional data and knowledge. Process cleanup and definition. Make documents and data searchable. 39

59 Grid Operations / Distribution Automation Automation and intelligent control of distribution level power grid functions. Real time 2 way communications and control of distribution systems. Improved control and visibility. Expanded data availability. Strategically place sensors in distribution system to enable visibility and data. Data Historian 40

60 Customer Enhancements Develop Customer Enhancement Plans to Address: External Communications and Customer Outreach Internal Communications Improved Customer Communication Tools (ex., Web Payments, Mobile Platform, Outage Communication, etc.) Interactive Voice Response System Enhancements True Customer Self Serve and Enablement 41

61 Basic Work Order Tracking A system used to track all stage of work; from initiation, schedule, execution, to close. Allows for organization wide visibility of work performed. Expansion of Service Order Tracking 42

62 Outage Management Evaluate and develop methods for AMP to manage outages. Possibilities include: Automatic outage detection at substation level. Automatic outage detection at the circuit level. Automatic outage detection at the premise/device level. Outage call sorting and visualization. 43

63 Mobile Technology Enable mobile access to systems or data that was previously only accessible within the office environment. Possibilities include: Field Service Work / Work Management GIS Maps Asset Management and Inspection System Visibility 44

64 AMI Re Evaluation Full scale AMI is not recommended as part of the early stages of this plan. A review of the AMI industry and conditions at AMP should be conducted periodically. Review lessons learned from pilot projects. Determine if proposed benefits from pilots has demonstrated anticipated benefits. Determine if this is the time to initiate business and implementation plan. 45

65 AMI & MDMS Assuming the AMI Re Evaluation has determined that the conditions are ideal for AMI at AMP, proceed with implementation of AMI and MDMS. Example Benefits may include: Enhanced Data Availability for Customers Enhanced Customer Convenience and Service Increase Reliability and Power Quality Support New Rate Options Data Analytics Improved System Visibility and Outage Response 46

66 Integration of Major Systems Once a utility has a multitude of major systems in place, and integration strategy must be considered. Evaluate the need for an Enterprise Service Bus (ESB) architecture to facilitate data between major systems. Reduce on going upgrade costs. Improve software quality in integration. Facilitate the availability of information. 47

67 Distribution Management System A collection of applications designed to monitor and control the entire distribution network. Acts as a decision support system for operations and field personnel. Provides improve resource utilization by analytics and recommendations. Reduces system losses and improves voltage profiles. 48

68 Formal Plan Review and Refresh A review and update of the technology plan is recommended periodically after each milestone. The plan is evaluated at its current status, successes, and areas for improvement. The results are then used to develop a move forward plan. 49

69 Preliminary Recommendations Smart Grid Technology Plan Recommendations 1. Planning 2. Organizational Change Management 3. Customer Engagement Platform 4. Electric Vehicle Plan and Policy 5. Targeted Metering Solution 6. Cloud-Based Solutions and Assess Application Insourcing 7. Geospatial Visualization (Netbas Migration) and Asset Management 8. KPI Dashboard 9. Expanded Use of Document Management 10. Grid Operations/ Distribution Automation 11. Customer Enhancements (Customer Outreach, Internal and External Communications, Tools) 12. Basic Work order Tracking 13. Outage Management 14. Mobile Technology 15. AMI Re-Evaluation 16. AMI Deployment and MDMS Implementation 17. Integration of Major Systems 18. Distribution Management System 19. Formal Plan Review and Refresh 50

70 Next Steps 2014 Begin Work on Recommendations #1 7, and stage for #8 19. Periodic Review and Refresh of Plan SGMM Re Assessment Seek Periodic Guidance from PUB 51

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88 AGENDA ITEM NO.: 6.C. MEETING DATE; 03/17/2014 EXHIBIT A AGENDA ITEM NO. 5A MEETING DATE: 10/20/2014 EXHIBIT E Targeted Metering Solution New Residential Developments Information Only Public Utilities Board Meeting March 17,

89 History 2/24/14 Presentation to the Board of the Advanced Utility Technology Plan developed by the Boreas Group Findings: People, Process, and Technology 19 recommendations Begin work on recommendations 1 7 Recommendation #5 Targeted Metering Solution 2

90 Current Metering Practices Bayport Pilot (2008): 485 housing units utilizing radio read meters Installed during new development Successful pilot About 90% of AMP s current meters are electro mechanical meters Boreas Group estimates an annual loss of $ k from meter under readings 3

91 Targeted Metering Pilot Program Pilot program customers A2 & A3 Commercial (~285 Meters) Select residential Interval data collection Load research Rate design Customer and utility web portal Cloud based solution Minimal infrastructure investment 4

92 Residential New Developments Alameda Landing Up to 300 housing units. Planned developments: Alameda Boatworks (Clement) 89 housing units Marina Cove II / Chipman (Buena Vista) 182 housing units Alameda Point 1,425 housing units 5

93 Objectives Gain experience from pilot implementation Test the technology Gain hands on familiarity with technology Gain experience collecting and managing interval data Load research and rate design Limit full scale implementation risks Avoid cost of installing new meters twice in new developments Current meter technology vs. future AMI 6

94 Summary Targeted Metering Solution Pilot: A2 & A3 commercial customers New residential developments Alameda Landing Initiated project in Q1 of CY 2014 Full and on going AMI re evaluation 7

95 Questions? Bob Orbeta AGM Administration (510)