The Smart Meter Initiative in Ontario. Michael Angemeer, Chair, Electricity Distributors Association (EDA)

Transcription

1 The Smart Meter Initiative in Ontario Michael Angemeer, Chair, Electricity Distributors Association (EDA)

2 Electricity Distributors Association (EDA) Voice of Ontario s local electricity distributors, the publicly and privately owned companies that safely and reliably deliver electricity to over 4 million Ontario homes, business and public institutions. Leads government/regulatory representation & advocacy Facilitates industry networking Provides information and industry intelligence to members

3 Outline of Remarks q Ontario s Distribution Industry q Smart Metering Initiative q Role of Distributors in Smart Meters q Enabling Legislation q Moving forward

4 Ontario s Electricity Distribution Industry Employs almost 10,000 Ontarians Stimulates economy - $.5 billion payroll $1 billion infrastructure investment $250 million to shareholders $150 million in proxy taxes to government

5 Ontario s Electricity Industry Ontario (government) responsibilities: generation facilities regulates consumer electricity prices regulates generation, transmission and distribution. Ontario Energy Board (province s regulator) independently from government OEB regulates all market participants

6 Ontario s Electricity Industry Local distribution companies (LDC) legislated in 1998 to operate as forprofit, business corporations LDCs owned primarily by municipal governments (some privately and provincially owned) Change is operative word Smart meters part of larger industry reform effort

7 Ontario s Electricity Industry 90 LDC s in Ontario Estimated gap of 24,000 MGW by 2025 Equivalent to 80% of current capacity Price caps had negative impact Inability to bring new generation on line

8 Creating a Culture of Conservation in Ontario New pricing regimes residential/small business Critical role of Electricity distributors Smart meters one piece of conservation pie Need to create culture of conservation $160 million investment by Distributors LDC s driving force behind conservation & demand management

9 Ontario s Smart Meter Initiative Government target:4.5 million meters ( 2010) 800,000 installed by 2007 Consumers able to respond to price signals and manage costs Price plan adjusted bi-annually by the regulator

10 Ontario s Smart Meter Initiative Distributors responsible for: Purchasing Owning Installing Operating Maintaining Playing central role in implementation

11 Ontario s Smart Meter Initiative: Pilot Projects Preparedness key to success Distributors working closely on solutions Allows for greater efficiencies/best practices Test technologies Apply vigorous performance measures

12 Ontario s Smart Meter Initiative: Pilot Projects Pilot projects to examine community, climate & geographical influences Communication systems, meter functionalities, data standards scrutinized Results with government Leverage lessons learned for implementation

13 Ontario s Smart Meter Initiative: Success Factors 1. Distributor expertise/experience critical 2. Cooperation & timely action of key players (government, regulators and distributors) 3. Clear and consistent understanding of responsibilities

14 Ontario s Smart Meter Initiative: Legislation Electricity Conservation Responsibility Act Empowers government on options for governance, ownership and regulatory structure Many details remain to be formulated Additional legislation to follow

15 Ontario s Smart Meter Initiative: Cost Recovery Estimated capital cost = Approx. $1 billion Cost recovery central consideration Legislation will enable cost recovery

16 Ontario s Smart Meter Initiative: Cost Recovery More regulatory certainty critical for distributors Cost recovery will reduce credit risk Reduced credit burden could lower borrowing costs

17 Smart Meter Initiative: Smart Meter Entity (SME) Specs. released but critical decisions outstanding Legislation authorizes the Smart Meter Entity (SME) to collect information and manage data Real time access for distributors an issue SME role, structure, and boundaries need clarification

18 Smart Meter Initiative: Key Issues Needing Clarification 1. Basic design of a smart meter system/data pathway 2. Who controls/own communication assets and functions 3. Responsibilities of the SME

19 Ontario s Smart Meter Initiative Moving Forward Ontario s distributors ready to implement Legislation is a step forward 2010 target ambitious but achievable Best results via partnership amongst distributors, government & regulators Success will position Ontario as leader in SM and conservation