Advanced Metering Program
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1 Advanced Metering Program Jared Price, Chief Technology Officer George Bjelovuk, AMI Program Manager September 15, 2016
2 AMP Vision, Mission and Values Vision To be public power's leader in wholesale energy supply and value-added Member services. Mission To provide Members with the benefits of scale and expertise in providing and managing energy services. Values Cooperation: Work together to achieve common goals. Integrity: Be honest, fair, reliable and ethical. Innovation: Develop new and creative approaches that increase value to our members. Action Oriented: Anticipate, adapt and act. Effective Communication: Foster open, honest, timely and responsible two-way communications; listen actively and show respect for others. Member Focus: To continually improve timely, dedicated and professional support to our members and their customers.
3 AMP History Development History 1971 AMP formed as not-for-profit corporation under Ohio Revised Code Chapter Private Letter Ruling permits tax-exempt financings on behalf of Members Industry Presence Members in Ohio (83), Pennsylvania (29), Michigan (6), Virginia (5), Kentucky (6), West Virginia (2), Indiana (1), Maryland (1) and Delaware (1, DEMEC with 9 members) Operations within two Regional Transmission Authorities Midcontinent Independent System Operator, Inc. (MISO) PJM Interconnection, LLC (PJM) 4 Page 3
4 AMP Governance Corporate Governance Owned and governed by its 134 Members in 9 states Each State or Joint Action Agency with 5 or more members guaranteed a Board seat Tom Natarian, Borough of Ephrata is on AMP s Board AMP Strengths Joint Action Stronger voice in the industry Buying power in the marketplace Projects Based Organization Members subscribe to projects of their choice Financial Strength $750 million Line of Credit to provide underlying support 5 Page 4
5 The Challenge Public Power utility operators need an ever-growing set of new capabilities Customer demands Load research for new rate design LED Street Lighting Control Distribution operations enhancements Demand Response Analytics How well are you meeting these needs?
6 Conflicting Roles Enabling new capabilities requires skills and resources unfamiliar to traditional utility operators Information & Operational Technologies Business Intelligence Cyber Security IT Operations & Best Practices Assigning these roles to existing personnel?
7 General Business Drivers for AMI Public Works Projects to address utility infrastructure Manual meter reading process constraints Handheld/drive-by equipment is aging Water meter modules near end-of-life (batteries) Stopped or under-registering meters Other technology deployments (LED street lighting control, GIS, etc.) Improve & reduce cost of customer service Surrounding utilities providing internet access to interval data Enhanced customer communication Enable remote connect/disconnect of electric service Support for emerging needs rates, distributed generation Distributed generation (e.g. solar) metering requirements Changes in rate design TOU, demand metering, seasonal rates Distribution grid management automation, Volt/VAR control 7
8 Advanced Metering Evolution - AMI Outage viewer Back Office Infrastructure Customer Portal Utility Portal MDM AMI Head-End Field Infrastructure Collectors Meters Back Haul Utility Owned Traditional On-Premise Billing System
9 Commercially Hosted Solutions Utility Systems Outage viewer Customer Portal Utility Portal MDM AMI Head-End Field Infrastructure Smart Meters Infrastructure & Applications provided as a Service Back Collectors Haul Billing System
10 Common Hurdles AMP Members Face Limited ability to explore the AMI marketplace Resource constraints potentially require engaging a consulting firm Managing relationships with a new group of vendors Reliance on vendors/distributors to interact with municipality s leadership Distributors help with this, but only with the vendors they represent Varying degrees of project management maturity among vendor/ distributor AMI Deployments with on-premise technology Specialized employees for the deployment & support of IT systems Staff may be difficult to attract and retain for AMP member municipalities Consumes capital budgets on technology investments Vendor-hosted solutions Expertise deferred to vendors; impacted by industry consolidation Rigid, inflexible application suite Selecting the right partner is critical Unplanned future expenses 10
11 Common Hurdles AMP Members Face Limited ability to explore the AMI marketplace Resource constraints potentially require engaging a consulting firm Managing relationships with a new group of vendors Independent action = Reliance on vendors/distributors to interact with municipality s leadership Lost economies of scale from Distributors help with this, but only with the vendors they represent Varying degrees of project management maturity among vendor/ collaborative distributor action AMI Deployments with on-premise technology Specialized employees are required for the deployment & support of IT systems Staff may be difficult to attract and retain for AMP member municipalities Expertise deferred to Hosted Solutions Provider Unplanned future expenses 11
12 AMP AMI Project - RFI/RFP Process RFI issued to 23 vendors ABB/Tropos GE Mueller Systems PrimeStone UMS Aclara Itron N-Dimension Sensus UtiliSmart Eaton L+G Nexgrid Siemens Wipro ElectSolve Leidos Oracle Silver Spring Elster MeterSense OSISoft Tantulus (Bolded vendors gave demonstrations) Pilot Member Workshop on May 13 Short list of nine Vendors selected for RFP RFP included detailed information for 10 AMP Member utility systems 90,000+ meters in scope RFP released, responses received, comparative analysis prepared and reviewed with initial members and AMP Board 12
13 AMP AMI Project Vendor Selection AMP has selected Silver Spring Networks & ElectSolve as Vendor/ Partners for the Advanced Metering Program Silver Spring Networks Superior AMI Communications Network availability & security Fully monitored network solution 7x24x365 Allows flexibility in meter selection Foundation for future requirements street lighting control, distribution automation, Volt/VAR Control ElectSolve Deep experience with working with municipal utility systems Extensive billing system & integration experience Hometown Connections Partner AMP s Board has approved the program and executed contracts with these vendors on June 3 13 Business Confidential - Do Not Distribute
14 AMP s Standard AMI Architecture AMP Managed Systems Member Infrastructure OMS or other Integrations (optional) AMP s Data Center Customer Portal (optional) Base System, MDM & CIS Module Silver Spring Data Center AMI Head-End Wireless Network Meters Billing System 14
15 AMP s Standard AMI Architecture Joining AMP s AMI Program allows members to avoid investment in and management of AMI back office systems and technology AMP s Managed Systems includes: Initial capital investment Capital refresh every five years Known Operating expenses (3% increase/year): Silver Spring Support Costs Silver Spring Hosting Charges AMP-SSN Connectivity ElectSolve Support Costs IT Infrastructure support costs Existing IT labor allocation New Program Labor Program Manager AMI Operator
16 AMP s Standard AMI Architecture Members incur one-time costs: Meters Wireless Network Field Equipment Installation, in required Billing System Integration Optional application licensing Customer Portal Wholesale/retail billing reconciliation OMS/GIS integration Project Management Members incur ongoing expenses for: Connectivity to AMP Support costs for optional applications Member Infrastructure Wireless Network Billing System Meters 16
17 AMP Value Proposition Fully managed AMI-Headend and Meter Data Management System Fully managed primary and Disaster Recovery site Annual Disaster Recover and failover testing Integrates to member CIS system. Ongoing support of CIS integration included Includes Utility Portal for operations Support for additional modules (customer web portal) Advanced Cybersecurity, Intrusion Prevention, Data Encryption and monitoring of all systems. Member AMI Communications Network Monitored by SSN s Network Operations Center 24x7x365 Vendor Service Level Agreement provides 99.5% read reliability for electric meters & 99% read reliability for water meters Future system and software upgrades
18 AMP Value Proposition No meter vendor lock-in Silver Spring Networks supports multiple meter manufacturers Economies of scale from collaborative procurement Dedicated staff to manage the system and issue resolution Program Manager Assists with business case development and presentations Coordinates member training on the system. Coordinates communications between Muni, AMP, ElectSolve and Silver Spring to provide a seamless experience AMI Operator Coordinate event reporting with members Schedule/coordinate workflows & reports to member field personnel. Access to AMP staff in IT, Finance & Legal departments Sharing of experiences and knowledge with other Members Participants gain the full benefits of Joint Action and Collaboration!
19 AMP is redefining the Joint Action Agency Joint Action Agency history has been focused on collaboration to build economies of scale Power supply contracts Generating assets AMP s Strategic Plan is expanding that role Hosted Solutions is one of eight initiatives that AMP s Board has launched to help execute on its Vision & Mission Vision To be public power's leader in wholesale energy supply and value-added services. Mission To provide Members with the benefits of scale and expertise in providing and managing energy services.
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