Advanced Metering Infrastructure for Seattle City Light
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1 Advanced Metering Infrastructure for Seattle City Light May 10, 2007 Linda Lockwood
2 Seattle City Light 7 th Largest US Municipal Utility Customers kw Hours Residential 336,363 2,954,848 Non-Residential 39,506 6,206,617 Total 375,869 9,161,465
3 Mount Rainier
4 Pacific Northwest
5 Ross Dam
6 Sockeye Salmon
7 Seattle City Light A Green Utility Power Supply % Seattle Hydro 46 Fuel Mix for 2005 Treaty (BC Hydro) 3 By Generation Type Purchased-BPA 36 Hydro 86.5 Purchased-Other 15 Fossil 6.2 Total 100 Wind 3.0 Other 0.1
8 Seattle City Light 738,400 population of service area 131 square miles of service area 1,560 personnel (FTE) 15 major substations 657 miles transmission circuit 2,470 miles distribution circuit
9 Seattle residents have the lowestcost electricity in urban America Average rate per kilowatt hour ( ) for the year ended December 31, 2005 Seattle National Residential: Non-residential:
10 Seattle City Light Values Conservation Programs since 1977 First priority resource to meet load growth Averaging 3.5% of retail sales revenue Stewardship Skagit River Dams certified low impact hydro: Water for Fish, Power for People Greenhouse Gas Neutral for all operations
11 Seattle City Light Service Territory
12 Seattle s AMI Strategy Deploy pilots in new development areas (2006) Complete a Business Case (2006). Evaluate the pilots (2007) Work with Utility management and City governance to evaluate AMI for funding Formulate a go forward AMI plan
13 About Our Pilots High Point Pilot (700 residential meters) Outsourced except for end points Validate monthly versus bi-monthly billing impact 1-way RF, both water and electric South Lake Union (1,000 meters) Own everything 2-way RF technology Mix of customers (commercial, high-rise residential) Geographical challenges (Seattle hills, urban canyons) Electric distribution system: both downtown network and radial
14 South Lake Union Pilot Area
15 South Lake Union Pilot Project Overview 1. Host Data Collection Servers: Utility s Downtown Office 2. Production Network: South Lake Union / Denny Triangle 1 UtiliNet Take Out Point (TOP) 16 UtiliNet concentrator/repeaters 2-way electric: form 12S meters (455) 2-way electric: polyphase meters (32) 1-way water: residential and commercial (30) 3. Test Network: North Service Center 1 TOP 1 UtiliNet concentrator/repeater Test meters: 2-way electric (9) and 1-way water(3)
16 North Service Center Test Lab
17 Broad Street Take-Out Point
18 Concentrators/Repeaters
19 Downtown Environment
20 Host Systems: AMI Host CIS OMS SCADA Commercial; Office, Laboratories, Data Centers, Retail High-Rise Solution Residential Units Take-Out-Point Commercial; Retail, Offices Residential Meters Residential Products: Remote Disconnect Smart Thermostat Load Shedding/Control
21 Two - Way Technology Solution Center Host System Additional 3 rd Party Applications (CIS, Outage Management, DA, HAN, etc.) Multiple Network options (fiber, Cable, Modem, etc.) Take-Out-Point Take-Out-Point Reclosers Switches Sectionalizers Capacitor Bank Home Area Network Residential Products: Remote Disconnect Smart Thermostat In-premise Display Load Control 1-way Water Meters Residential, C&I Electric meters Integrated with 2-way Cellnet mesh technology
22 Two-Way UtiliNet RF Network Residential Residential Commercial Electric Endpoints Repeater/ Router Take Out Point at Substation Utility Fiber Connection InfiNet Host Utility
23 Why SPU/Water is dropping out The Pilot tests both water and electric Water requirements vary greatly from the electric: 1-way is adequate Electric utility has a business case that supports going on our own with 2-way technology RF Network for 2-way only is less expensive to deploy and operate
24 Business Case Results Say Go! Capital Investment = $59 million Deployment interval = 5 years AMI system (model) life = 15 years Annual Benefits, 100% installed = $ 9 million Discount Rate Net Present Value Benefit / Cost Ratio Internal Rate of Return 3% $ 32.7 M %
25 The Benefits Are Many ($ millions) 22% 11% 13% Net Present Value of Benefits 1% 1% 24% 28% Meter Reading Account Services Meter Accuracy Revenue Recovery Cash Flow Call Center Distribution Ops NPV of Benefits NPV of Capital NPV of Operating Cost NPV of AMI Project NPV $ $ $32.7
26 A Word about the Financial Model Financial planning is important Discussions regarding numbers bring out the real issues which are about people, jobs and change The pilot doesn t confirm all the financial assumptions We became comfortable with installation cost We became confident about capital cost We understand we will have to manage labor transitions We re not yet confident about the cost to interface into legacy systems
27 Recommended AMI Strategy Complete meter and billing systems Meter data management in 2007 (in progress) Replace complex billing system for time based rates in 2008 Rollout AMI to 100% of meters, area-wide Start soon (2008 or 2009) Complete rollout in 5 years or less Improve other processes using AMI data Outage Management (OMS) and GIS Asset Management, Load Flow, Distribution System Planning Customer Billing/Relationships (CIS/CRM)
28 Wind, Storm Damage/Outage
29 Wind, Storm Damage/Outage
30 Wind, Storm Damage/Outage
31 Wind, Storm Damage/Outage
32 Wind, Storm Damage/Outage
33 Windstorm December 14-23, % of customers out 95% restored in 3 days We could have used restoration management information during this big storm if we d had it. System Operations Center Dispatcher, Jan. 2, 2006
34 Opportunities and Challenges Resource Requirements rapid installation will mean outsourcing installations Workforce Transition Plans 55% of the benefits result from personnel reductions These FTE reductions are in excess of normal attrition Major Business Process Changes
35 Focus on Accountability Use the business plan as a benchmark for accountability achieve the benefits The better our labor transition plan (the faster we reduce labor cost) the better the ROI for the project The expansion will require that we re-bid the technology to the vendor community
36 Seattle City Light - Vision The best customer service experience of any utility in the nation. Billing and Payment Options Rapid Power Restoration Information Help customers manage their energy use Business process efficiencies support lower rates
37 Seattle City Light The Green Utility The best customer service experience of any utility in the nation.
38 Feel free to contact me with questions at: Linda Lockwood Seattle City Light Address th Avenue, Suite 3200 Phone linda.lockwood@seattle.gov
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