Smart Meters The Impact on Customer Service Operations

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1 Smart Meters The Impact on Customer Service Operations James Barnes Utility Customer Service Administrator City of Tallahassee Utilities Copyright 2010 Accenture All Rights Reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture.

2 City of Tallahassee Utilities Smart Grid Overview Approximately 195,000 Elster electric, water and gas meters and modules have been changed out and 315 backhaul Gatekeepers have been installed throughout the City s service territory. We will eventually install 213,000 smart meters and modules. The CoT service territory is spread between 3 counties. Most customers receive all 3 metered services, but some have only one or only two of the metered services. The Gatekeepers have been integrated with cable fiber (270), city fiber (13) and wireless(32) back haul systems. The 3 backhaul systems are integrated with the AMI head end system. The head end has been integrated with an Aclara Meter Data Management (MDM) database. The MDM is integrated to the CoT web portal (e+ Online, Aclara) From e+ Online, customers can view their current as well as historical bills and usage for all 3 metered services plus sewer, solid waste, fire and stormwater services.

3 City of Tallahassee Utilities Smart Grid Also from e+ Online customers can pay their bill, utilize a rate comparison tool to choose the best rate for their lifestyle and look at weather data and consumption in the same graph. CoT has used this infrastructure to launch a residential TOU rate plan and a bill-todate program. Electric meters provide 30 minute interval data. Gas and water provide interval data each hour. CoT has done both smart thermostat and in-home display pilots that were integrated with the meter and utilized interval data. Within the next 12 months there are plans for at least one more TOU plan (probably commercial), a Pre-pay plan, water leak detection and advanced meter theft detection analytics. MDM data has already been used by the city as well as a few larger commercial customers to look at historical usage data to determine if their energy savings programs were effective.

4 Initiatives are being classified differently Installation of advanced meters and network infrastructure capable of process communication and automation that serves as the enabling infrastructure to improve meter to cash process efficiency and to provide customers improved visibility to when and how they use energy. AMI Dynamic Pricing and Billing SmartNet Metering Customer Portal

5 Initiatives are being classified differently Incorporation of advanced communications and real-time data into the operation and maintenance of the transmission and distribution power system to improve coordination between energy supply and demand and enable a more efficient, secure and reliable system. Fault Detection, Isolation and Response (FDIR) Substation and Feeder Monitoring Volt Var Control Phasor Measurement Units

6 Initiatives are being classified differently Beyond the Meter Strategic integration of the consumer, the utility and third party providers through advanced devices such as Home Area Networks, smart appliances and micro generation to enable and empower customers with more choices in how they fulfill their energy needs. On-Premise Devices Micro Generation Value Generation

7 Utility Impact Summary Context, Organizational, Process, Technology / System, Physical, and Cultural Changes Utility Stakeholder Group Customer Service Marketing and Product Development Distribution Transmission Generation Energy Trading / Energy Procurement Information Technology Regulatory / Corporate Communications HR / Finance Supply Chain

8 Workforce Strategy Change in nature of job? Work Volume? New Skills? New Behaviors Required? Illustrative Detailed Impacts Overall Impact Customer Service Support (e.g., Call Center Rep) Smart Meter Direct ties to customer experience changes: service to energy efficiency advocacy and sales including a broad understanding of what customers have access to and what information is being shared with them by utility or other groups (i.e., Google, Portals, etc.); Call volume shifts and AHT increases Due to new billing process and structure, having additional customer information, supporting different customer inquiries (i.e. from billing disputes to energy usage) will require more robust communication, situation handling and data interpretation skills. For example, customer service may need to read and interpret the new hourly online consumption data from automated meter data reads to assist in customer queries. Increased accountability and control; now responsible for physical customer requests (connect / disconnect / meter read) that previously required a service order or truck roll; new procedures and policies Staging implications as meters deployed may suggest organizational restructuring to support Smart Grid Beyond the Meter Understand broader Grid strategy and deployment approach to respond to customer inquiries using an advocacy approach Potentially implies a dramatic shift in customer experience and engagement levels; If the utility business model moves beyond the meter, customer service call centers will likely be the first level of escalation associated with technology and device support Customer support complexity increases with additional devices, programs, ; increased troubleshooting and problem solving using available data and customer information Potentially new organizational model, roles, accountability, policies and procedures In home devices will allow customers to be more informed on their energy usage, the customer service representatives may need to be more educated in energy usage best practices in order to support inquiries. Tailoring Impacts for Call Center

9 Workforce Area Change in nature of job? Work Volume? New Skills / Knowledge? New Behaviours Required? Detailed Impact Overall Impact Distribution Field Operations (e.g., Linemen / Field Crews, Designers, Estimators) Smart Meter Smart Grid Emergency response teams will be able to confirm restoration and identify nested outages utilizing Smart Meter data. Transition of accountability for restoration and disconnects; service order shifts Technology that sits in the field will require change in technical skill sets for installation and maintenance. Depending on the level of automation and level of capabilities of the technical devices being installed, field technicians may require a to troubleshoot more complex tasks and issues in the field. Device installation and investment in expanded / upgraded grid infrastructure will spur initial demand for field resources. With better asset data and planning, there may be an increase in preventive maintenance as information is available to predict failure before it occurs. Field deployment may change as a result from outage restoration to outage prevention; Increased linkages between forecasting, planning, scheduling and work execution. Beyond the Meter May shift role of field crews in maintaining and working with in home activities and distributed generation Tailoring Impacts to Distribution Field Operations

10 Key Considerations Identify: Business areas that will need to change. Short-term and long-term organizational, process and governance structures that will need to change. New skills and behaviors. Who is impacted by these changes and who will influence success. The perceptions, motivations and expectations of impacted individuals and groups.

11 Organizational Changes Field Service Changing workloads Changing staffing needs New skills Technical skills Telecom skills Contact Operations Contact Center Changing workloads Greater work complexity New skills (tools, diverse utility programs) Meter to Cash Meter data management system (MDMS) Data mining (revenue assurance, billing quality) Technical Systems Online Communications Greater workload Customer tools Automated processes Exception management Network Operations IP network management

12 Technical Challenges Be cautious about the term real time. Most data is actually sent in a batch fashion and most is current as of 12 am. It is not up to the minute/second. Be cautious about 100% reliance on the technology, sometimes previous business practices will become important if you have part of your system down for any length of time. Utilize water data for leak detection as soon as you can, customers will expect this as will the utility staff. If the reconnect does not work, troubleshooting the network can take time. You will need a manual backup plan.

13 Technical Challenges The technology is only as good as your business practices around it. You will need a platform (web-based for example) to provide them with their usage data very quickly after deployment. They know you have the data and will expect you to share it. The sharing of residential data is pretty straightforward. Non-residential and demand based will be more complex. Usage data still needs to be seen and available at the meter.

14 Components Seven distinct but inter-related components are key to successfully moving the organization through the change. 1. Leadership Areas of Focus 2. Culture Ongoing Develop Change Management Develop Plans and Change Management Strategies Plans and Strategies 3. Stakeholder Management 4. Communications 5. Organization Design and Alignment 6. Talent Management 7. Training and Transition to Operations

15 Leadership What leadership capabilities are needed to enable and support the deployment and lead the organization in the future? Successful Leaders Clearly articulate the vision for the change Create enthusiasm for the change Reinforce direction and rationale Own the successes and roadblocks of the program Allocate resources as required Make timely, informed decisions Clarify priorities to enable excellent execution Deliver benefits realization

16 Focus and Complexity Have talent requirements been assessed and identified? Are there talent gaps in the existing organization and is there a plan to attract and retain? Five Core Competencies are emerging as key to success: 1. Leading and Managing Change at Speed 2. Stakeholder Relationship Management Specialized Skills and Knowledge 3. Data Management and Analytics 4. Root Cause Analysis and Problem Solving 5. Disciplined and Rigorous Program Management Core Competencies Copyright 2010 Accenture. All Rights Reserved.

17 Observations Technical upgradeability is imperative given still-evolving standards and robust innovation in the energy industry Consumers need to be informed and assured of the very high level of accuracy and security built into smart metering technology Smart metering drives deep change in the utility s relationship with customers Smart metering lays the technical foundation for customer awareness of, and active engagement in, their energy use The utility must actively educate its customers on this change starting from a starting point of low energy awareness Smart metering initiates a process of deep change in the utility itself New sources of customer value New activities, organization, and skills Change is evolutionary ( marathon not a sprint ); Change Management must be continual

18 Choices & Services

19 Questions?

20 Nights & Weekends Pricing Plan New Rate Plans Optional rate plans to meet customer lifestyles, like Nights & Weekends Pricing

21 Infrastructure Components New Fuel for Our Economy Electric Vehicles can change the way we plan and operate utility systems New rate plans and Smart Grid interval data will be necessary to promote charging at off peak times and improve the efficiency of existing plant

22 e+ Online Web-Based Tool On-line account management with Up-to- Date cost and usage information Information for ALL services at your finger tips View Usage by month, day or hour Self-Energy Audit

23 e+ Online

24 e+ Online

25 e+ Online

26 e+ Online

27 e+ Online

28 e+ Online

29 e+ Online

30 Distribution Automation Faster Outage Restoration Distribution related outages represent the majority of outages each year Distribution automation incorporates intelligent switching to better isolate faults The scope and duration of outages will be reduced

31 Free Home Energy Audits Energy Fitness Smart Grid data and analytics help energy auditors recommend the best ways to improve the energy fitness of homes and businesses

32 Pay As You Go Pricing Plan Pay what you want, when you want Pre-pay for your utility services and receive daily updates via, and the web. Customized low balance alerts can be sent by text, , and phone.

33 Electronic Payments SmartBill Paperless billing plan Free electronic payment option Environmental and cost savings 30% residential participation

34 SMART Devices Smart Grid Enabled Devices Can Benefit the Customer and the Utility Programmable Controllable Thermostats can maximize energy savings and work with Time of Use rate plans These and other similar devices can facilitate both price response and demand response programs designed to reduce peak demand

35 Schools on Solar Education Useful information can be shared with students about energy usage and production

36 Solar Water Heater Rebates Information for Decisions Using interval data along with other customer information, helpful recommendations can be provided to reduce energy consumption and save money

37 Neighborhood REACH

38 Renewable Energy New Forms of Energy The Smart Grid will enable customers and utilities to incorporate new supply side and demand side renewable resources into the future energy portfolio

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