Water AMI Overview: SE Florida Utility Council Black & Veatch Management Consulting, LLC

Transcription

1 Water AMI Overview: SE Florida Utility Council Black & Veatch Management Consulting, LLC 12 February 2018 David Glenwright Principal Consultant

2 Agenda State of the Water AMI industry Business Case Development AMI Lessons Learned 2

3 About Black & Veatch projects on AND offices 2016 revenue Founded MARKETS continents professionals Energy Telecom Water active projects WORLDWIDE Black & Veatch 3

4 State of the Water AMI Industry 4

5 Metering Has Greatly Evolved AMR Manual AMR AMI Single ping reads most commonly one read per month Single consumption values Walk-up/Drive-by reads Meter to Collection Device one-way communication Focus on meter reading and data collection AMI Configurable time interval-based reads (e.g. 15 min vs. 60 min) Consumption-based alarms Fixed network for more frequent access to data Metering end points to utility two-way communication Focus on monitoring and management AMI takes you beyond metering 5

6 Emerging Technologies Remote Monitoring Mains and service line pressure monitoring to replace chart recorders Particulate level monitoring for public health, and/or local, state and federal compliance (Chlorine, bacteria, temperature) Smart Valves Remote service activation/deactivation (hard to access, delinquencies, emergency shut-off) Advanced Data Analytics 6

7 Water AMI Key Observations Interest in AMI is Accelerating A significant number of water utilities have successfully implemented AMI: Boston WSD NYC DEP City of Toronto San Francisco Cleveland Charlotte County FL Starting Process: Austin, Philadelphia, San Antonio Main Drivers Aging infrastructure Customer Service & Engagement Smart City movement Technology advances and additional features beyond metering Barriers to Entry No regulatory stimulus or requirements Balancing load is not critical given storage capabilities Outage monitoring & management is not as pertinent Business case justification for water AMI can be difficult 7

8 AMI Lifecycle Overview Our approach is to view AMI and Operational Technologies (OT) over the entire asset lifecycle. The holistic approach allows us to delve in to each stage as needed by our clients. Our suggestions for Water Clients: Look well beyond meter to cash processes for benefits Don t underestimate the level of effort to implement AMI Plan for continuous improvement 8

9 Typical Benefits and Costs of AMI for Water Utilities 9

10 Business Case Goals and Objectives Goals and objectives must be the first step in any business case initiative Without clear objectives, how do you know if a project is successful? Value of features and benefits depends on goals What value does the utility place on non-metering features? Simply aiming to improve metering efficiency or desiring advanced features How will vendor performance be measured? How will project success be measured 10

11 Major AMI Water Benefits Financial Efficiency Operations Customer Reduction in meter reading costs Improvement of Cash Flow Reducing nonrevenue water (i.e. leak detection) Water Conservation & Usage Curtailment Distribution Monitoring & Planning Time synchronized usage data Pressure and temperature sensors Remote service valves CSRs have access to near current meter data Consumer Engagement Usage monitoring, leak alerts 11

12 Water AMI Costs Financial cost of AMI programs varies greatly Biggest Dependencies Percentage of the existing water meters that are required to be replaced Level of system upgrades or integration required 80-90% of the total project cost is routinely comprised of: AMI modules & new meters AMI network design & deployment AMI Head-End Software & integration Meter/Module Field installation 12

13 Main Considerations in Developing the Business Case Meter Reading Starting Point Age of Existing Meters and Systems Implementation Strategy Installation Resources Communications Infrastructure Software Costs AMI System Selection Funding & Procurement Options 13

14 AMI Lessons Learned 14

15 Beyond Meter Reading Transformation Smart Metering has the potential to TRANSFORM a utility s business operations What It s Not AMI is NOT a meter change out project Enablement AMI ENABLES new business models and applications Soft move-in/move-out Leak monitoring services Time and/or tiered use billing Prepayment 15

16 Understand the Business Case and Cost Models Provides a financial modeling basis to validate investment value and the basis of return and/or recovery as well as the impacts of key business case influences Network Costs 6% Installation & Project Costs 21% Implementation Costs 40.0% System Costs 2% 120.0% 100.0% 80.0% 60.0% 20.0% 0.0% AMI Deployment Schedule Meter Operations 41% 0% Benefits Meter Reading 24% Revenue Assurance 7% Water Meters & Modules 71% Billing 15% Finance 1% Customer Care 4% Credit, Collections 8% 16 January

17 Plan for Extensive Change Management Staging a complex implementation Transition period when multiple systems are live and at different stages Coordinating with operating units and managing an aggressive schedule Managing impact to Business Unit Departments Lots of employees touched across many departments Significant process changes or adjustments from existing AMI processes Workforce transition and training Developing an effective communication plan External audiences (Unions, Customers, Legislature, Regulators, 3rd Parties) Internal audiences (Executives, Stakeholders, Employees) Realizing and sustaining business transformation Acceptance and ownership Moving to operational excellence and continuous value extraction 16 January Billing & Customer Care Revenue Protection AMI Meter Data Credit & Collections Distribution Operations System Planning Marketing & Rates Scheduling / Settlement 17

18 Plan for Operational Analytics to Extract Value from Data Establish target areas for process optimization Validate workforce automation and verify process improvements Decompose selected target processes Integrate data tests into workforce automation Develop Future State processes and identify key points of data and automation leverage Test, calibrate, refine data tests to improve reliability Analytics convert data into knowledge that improves decision making processes 18

19 Plan for Customer Communications & Engagement What Customers Care About Customers want timely, useful information and programs to help reduce costs and improve services. How AMI Addresses Customer Concerns Improved Billing Accuracy Enhanced billing accuracy reduces estimated bills and brings efficient resolution to high bill complaints AMI Enables Enhanced Cash Flow Monthly billing, budgeting and pre-payment solutions and conservation and efficiency enhancements Education through Information Interval energy usage and bi-directional usage help customers understand their consumption and opportunities to reduce consumption AMI Enables Improved Customer Service AMI outage and restoration events and power quality data provide valuable information to the utility to better manage outage response and distribution grid. 19

20 Conclusion AMI is a transformative technology that can have positive impacts across the water utility s business 20

21 David Glenwright Speaker s Contact Information GlenwrightDR@bv.com 12 February 2018