Authors: Santiago Serrano Director General Consorcio Genesys Orbiscorp (GENOR) Guayaquil - Ecuador

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1 AMI Smart Network Benefits the Bottom Line Authors: Santiago Serrano Director General Consorcio Genesys Orbiscorp (GENOR) Guayaquil - Ecuador Rafael Alarcón Principal Engineer Consorcio Genesys Orbiscorp (GENOR) Guayaquil - Ecuador June 2008 Page 1 of 13

2 CONTENTS 1. The GENOR Consortium Problem Description Alternative Solutions Implemented Solution Description System Architecture Using the Acquired Data Software for Supervision and Control edra Platform Challenges Faced Supplier of AMI Smart Network Platform Resulting Qualitative Benefits Resulting Quantitative Benefits Customer Case 1: Business User Customer Case 2: Business User Customer Case 3: Consumption Control Meters Customer Case 4: Site Totalizer Losses Quantitative Benefit Summary 13 Page 2 of 13

3 1. The GENOR Consortium The GENOR Consortium was created in 2003 in one of Ecuador s largest cities. With the support of GENESYS CONTROL and ORBISCORP, GENOR s charter was to develop a solution to monitor and manage present and future electricity, water and gas metering projects in the city service area. GENOR was charged with the responsibility to design, engineer, procure needed equipment, install and implement an Advanced Metering Infrastructure (AMI) project to manage and monitor electrical consumption on meters equipped with built-in telemetry. The GENOR AMI project has been operational since early 2004, and provides monitoring and analysis services for 3,614 smart network endpoints of a local electrical utility company whose monthly sales average 25 million US Dollars. 2. Description of the Problem The utility provides service to 450,000 users, with 40% of the total consumption coming from about 3,500 users. Many industrial and residential users were by-passing their meters and consuming large amounts of energy that the utility was unable to invoice. This ongoing theft of energy resulted in nontechnical revenue losses of approximately 3.2 million US Dollars per month. 3. Possible Solutions A division of the affected utility was tasked with minimizing the repetitive non-technical losses. First, they visited users that were suspected of energy theft. However, these efforts were not effective in reducing energy and revenue losses to the desired levels. Therefore, the following options were identified: Monitor major suspected accounts via a Smart Network AMI solution. For this approach, GENOR would monitor key users using an AMI network for a period of 60 months. After this period, the local utility would take full control of the AMI solution platform for ongoing operations and revenue assurance Install Smart Network meters in distribution transformers. This option would detect loss levels on each one of the 14,000 distribution transformers in the city, and enable GENOR to focus efforts on key problem areas and take action. The company that was initially contracted to accomplish this task did not finish the installation because of contract problems with the local utility. Page 3 of 13

4 4. The Implemented Solution 4.1. Description When the AMI solution was decided upon, GENOR subcontracted Eka Systems to deploy an EkaNet Smart Network based on a wireless mesh architecture consisting of wireless data acquisition Nodes (integrated under-glass), EkaNet Wireless Repeaters and EkaNet Wireless Gateways. Also included were EkaNet Data Manager and EkaNet Network Manager software. The EkaNet wireless mesh network is a bi-directional communications platform with peer-to-peer networking capability. The network is self-forming, self-healing and automatically manages itself. Meter data passes through peer meter Nodes or Repeaters until reaching a Gateway for transmission to back office systems for data processing, analysis, and account invoicing. For auditing purposes, the utility company identified a set of large scale, electrical consumers. Each of these accounts, a mix of single users, groups, or buildings, exceeded a monthly invoice of 1 thousand US Dollars monthly. Smart network meters were deployed in each account location - 3,614 wireless Nodes were installed inside 1,414 GE model KV meters and 2,200 in GE model KV2c meters. Once verified as large electrical consumers, strategies were developed for ongoing monitoring at supply/branch points like feeding lines, substations and transformers Architecture of the AMI Smart Network Meter System The AMI Smart Network included: 3614 EkaNet-enabled smart meters, 314 EkaNet Wireless Repeaters and 47 EkaNet Wireless Gateways connected via Ethernet to WAN network servers. The distribution of the Repeaters and Gateways was based on the geographic density of smart meter Nodes. Each wireless Node had an RF coverage radius of no less than 1,900 feet and repeater locations were chosen to minimize hops between all Nodes and Gateways. The AMI platform necessitated the installation of two servers: server A for the administration of the network and server B for storage of raw data in a MySql database. A third server C was installed for the EkaNet Network Manager and EkaNet Data Manager software applications used by GENOR to monitor and remotely control all meters Use of the Acquired Data The data was received from all meters on 15 minute intervals containing the following variable readings: Accumulated active energy Accumulated reactivate energy Current per phase Voltage per phase Angles of current per phase Angles of voltage per phase This information was stored in the server C data base and made available for processing by GENOR-developed edra management software which is commercially available. Page 4 of 13

5 4.4. Supervision and Control Software - edra The edra software was developed for electrical utility companies to increase back office efficiency and to reduce revenue losses by enhancing meter data analysis. edra is a distributed platform consisting of multiple application modules of mixed technologies. edra extracts data content, processes it, and maximizes operational and financial benefits of the data received from the smart meters. This modularity allows the software to be configured according to account and customer requirements which can be further customized as future requirements dictate. The edra platform is deployable in modules which permit a simple account maintenance approach without disturbing the customer. edra s modules are: edra Core Server - main server and data storage, operating system: Linux (or any licensed Unix OS such as Solaris, AIX, etc.) edra Administration Client software with Windows OS, or server running Linux OS edra Monitoreo (Monitoring System) - Client GIS Windows o edra Alarms o edra Statistical o GIS Windows Client edra Control of Income (Revenue Control) edra Invoicing (Billing) - Client running Windows OS and server running Linux OS edra Services WEB (Web Services) Linux OS edra s modularity and flexible interfaces allow it to work seamlessly regardless of the manner in which the data is being collected. It accepts various data inputs and formats gathered manually, semi-manually or automatically via an AMI interface. edra s functions and AMI Smart Network benefits are summarized in the following table. Page 5 of 13

6 4.5. edra Invoicing Module The edra Invoicing module is an invoicing platform for electrical utility company billing. It calculates consumption amounts and prepares customer invoices according to individual account readings, rates and dates. Billing information is provided online and in real-time The edra Invoicing module has the following features: Invoicing data management that allows input of user parameters, their account data, services, rebates, and process controls. It is integrated with the edra Administration module. Statistical reports and invoicing quality control which is an integration option with the edra Administration module. Hot billing process which is integrated with the edra Core Server system. Web server plug-in to display invoices which is integrated with the edra Web Services module. Monitoring Invoicing processes - Integrated with Web Services module. Page 6 of 13

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10 4.6. Challenges Faced A localized portion of the AMI network experienced intermittent data traffic patterns due to broad spectrum radio interference radiated by third parties. To remedy this anomaly, GENOR relocated the affected endpoints and relays and activated additional Gateways within the interference zone. A few repeaters stopped working correctly due to voltage spikes, deliberate sabotage from users, theft of equipment, etc. However, once detected, GENOR reacted immediately to remedy the situation and prevent any continuing network problems. GENOR worked with two meter communication networks 2.4 GHz and 915 MHz. The 2.4 GHz Network functioned perfectly as it has been demonstrated working by Eka Systems, the Smart Network platform supplier, in many parts of the world. The 915 MHz Network experienced some localized problems due to limited conditions in terms of communication. GENOR was obtaining intermittent readings from a small number of 915 MHz frequency Nodes. Upon identification, the situation was immediately remedied and deployment of the involved 915 MHz radio brand was halted with the underperforming radios promptly replaced at no charge Supplier of AMI Smart Network Platform GENOR contracted to Eka Systems to supply the EkaNet AMI Smart Network (smart meter Nodes, wireless Repeaters, Gateways) and associated EkaNet Network Manager and EkaNet Data Manager software. The contract award was done after an analysis of several options as well as the immediate availability of AMI endpoints for GE meter models KV and KV2c that are being used. Eka Systems is a global manufacturer and supplier of wireless, self-managing, self-healing Smart Network and Smart Grid networking solutions that provide unrestricted monitoring and control of customer water, electric and gas data; enabling utility companies to create efficient, flexible and highly scalable AMI, AMR, and Distribution Automation solutions while simultaneously enhancing overall customer satisfaction. Eka s portfolio features EkaNet Smart Network which provides comprehensive security for a utility s entire network and its data. EkaNet Solutions scale easily, self-configure, and self-heal without burdensome installation and cost issues while managing themselves, thereby eliminating traditional IT management costs associated with smart metering. EkaNet Smart Networks comprehensively secure an entire network with a design-to-disposal approach securitizing all components. It scales by design from thousands to hundreds of thousands of endpoints without intervention or hierarchy and manages itself by self-configuring and automating functions on many levels. EkaNet AMI solutions support future applications necessary to serve evolving needs. 5. Resulting Qualitative Benefits 1. Costs savings from the AMI system: Significant reduction of manual field meter readings Reduced truck rolls and field reading staff Fuel & vehicle maintenance savings Reduced environmental pollution. Page 10 of 13

11 2. Faster load readings to generate user profiles for prompt analysis and engineering control x7 Web access of user load information and profiles. 4. Exactitude of invoicing. 5. Instantaneous meter reading. 6. Improved detection of power outages. 7. Faster detection of anomalous meter operations, by-pass connections and vandalism. 8. Quicker response and resolution of customer problems. 9. Costs Savings by reduced technical site visits Decreased meter field testing Elimination of motorized groups to take readings Reduced maintenance costs by performing remote meter diagnoses. 10. Improved payment and electronic invoicing. 11. Customizing of invoices. 12. Revenue recovery and financial improvement. 6. Resulting Quantitative Benefits 6.1. Quantitative Benefit Examples: The information provided by the EkaNet AMI Smart Network and edra s Alarm module enabled detection of consumption irregularities and other anomalies that were confirmed and then verified on site. The following customer case examples represent a cross section of conditions identified and their resolution Customer Case 1 Business User An analysis of graphical data generated by edra, revealed a remarkable difference between the reported consumption level (non-regulated customer) and the reading obtained by the AMI system. Employees from CENACE, the Corporation National Center for Energy Control and the Manager of Technical and Commercial Wholesale Electricity Market (MEM) of Ecuador, inspected the location and found that one of the meter s phase contacts was not working properly and was providing incorrect readings and therefore incomplete billing was occurring. Once resolved, all readings were in sync with each other ensuring ongoing accurate billing. The losses suffered due to this problem were about 70 thousand US Dollars. The readings reported by the AMI Smart Network were sufficient to file a claim to CENACE. Page 11 of 13

12 Customer Case 2 Business User The power consumption displayed in edra identified a significant variation in usage on one meter phase compared to the other two which were almost zero. Considering the nature of this user, a strictly three-phase load, manipulation of the control signals was evident. An inspection of the facility was performed and obvious irregularities were not noticed. Nevertheless, following the inspection, all phase currents were normal and the customer s usage readings increased to expected levels. The case is still in process. Due to the AMI Smart Meter platform, a reimbursement of 40 thousand US Dollars is being pursued Customer Case 3: Consumption Control Meters Through a special service, the local utility assigns temporary codes to meters that remain installed without providing service. This occurs when users cancel their service or move out. These temporarily coded meters are called Control Meters. By definition, Control Meters should not record any consumption. If they do, it indicates that electrical service is being used without authorization. In many cases, this is eventually detected by field personnel. However, the newly installed AMI Smart Network meters detected these ghost consumptions immediately, and triggered an onsite inspection to advise the user to contract their energy provider. This situation was automatically detected using GENOR s edra Alarm module which is flexible and allows configuration of any alarm type based on energy registries, currents, voltages and their angles. An average of 1 thousand US Dollars monthly was recovered for each involved location Customer Case 4: Site Totalizer Losses GENOR developed an edra module that enabled remote monitoring of site totalizer meters and compared their cumulative reading with those of tenant sub-meters in buildings, condominiums and shopping centers. This analysis quickly detected usage differences caused by direct connections, meter manipulation, and also identified isolated meters against which immediate action could be taken. Multiple sites where totalizer readings appeared inaccurate were detected and investigated. Non-technical revenue loss in excess of 2 thousand US Dollars a month per suspected totalizer site was substantiated and is being pursued for payment. Page 12 of 13

13 7. Quantitative Benefit Summary Estimates indicate that in a period of 24 months, irregularities were detected that represented approximately 3 million US Dollars in non-technical revenue losses. These losses were primarily due to unauthorized energy consumption that was not being invoiced. The EkaNet AMI Smart Network in combination with GENOR s edra system were able to quickly analyze, document, and accurately pinpoint the areas and accounts causing the ongoing technical and non-technical revenue losses. Figure 1 Figure 2 With an initial cost of 600 thousand US Dollars, the EkaNet AMI Smart Network in combination with edra software rapidly proved their worth. The network investment paid for itself in less than 9 months when just considering its ability to identify non-technical revenue loss Figure 1. Other savings accrued beyond revenue recovery and when quantified would further shorten the payback period. In addition to non-technical revenue loss detection, the AMI solution delivered numerous operational improvements as charted in Figure 2 such as: Reduction of field labor and associated support Ability to institute remote, on-demand meter reads and testing Remote meter control, activate, deactivate Improvement in outage detection and remediation Improved customer service. The AMI Smart Network is performing well above expectations and all operating indices have improved substantially. The EkaNet AMI Network, data monitoring, collection and delivery combined with the sophisticated analysis of the edra platform have been a resounding success. Page 13 of 13 EkaNet is a trademark of Eka Systems, Inc. All other trademarks are the property of their respective owners.