Toronto Hydro-Electric System Limited EB Exhibit F1 Tab 6 Schedule 2 ORIGINAL Page 1 of 5 CUSTOMER SERVICES
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1 EB-0-0 Tab Page of CUSTOMER SERVICES 0 METER SERVICES Introduction Meter Services is responsible for maintaining, repairing and replacing revenue meters at THESL customer premises and wholesale metering installations at the grid supply points serving Toronto. THESL inspects and calibrates all revenue metering according to Measurement Canada standards to promote customer confidence in the accuracy of their electricity bills. The wholesale metering installations allow THESL to confirm the validity of invoices from the Independent Electricity System Operator ( IESO ), and ensure customers are paying for only their fair share of the provincial electricity system costs. By year-end 0, smart meter installations for Residential and Small Commercial services will be substantially complete and approximately 0 percent of Commercial and Industrial ( C&I ) services will have smart meters. In 0, Meter Services will complete the remaining C&I installations, thereby taking on greater responsibility for resolving smart meter data collection and integrity concerns. THESL also plans to transition some currently outsourced suite meter activities to in-house work done by Meter Services, primarily installation inspections. Meter Testing Meter Services operates a meter shop that is certified under the Electricity and Gas Inspection Act to be a Measurement Canada accredited meter verifier. The key functions of the shop are to: Perform the sample and re-verification testing on in-service meters as required by Measurement Canada; Undertake cleaning, testing, calibration and resealing of removed meters before
2 EB-0-0 Tab Page of they are reused; Assess the accuracy of meters removed as a result of billing disputes; and Confirm the accuracy and performance of new meters. Each revenue meter must be tested and sealed according to Measurement Canada standards. Depending on the type of meter, the seal is valid for a specified number of years of use, usually six or ten years, before the meter must be re-tested. 0 Prior to the Smart Meter program, the meter shop annually would test approximately,000 meters for routine re-verification, and examine approximately,00 meter changes for compliance testing. Compliance sample groups of,000 to,000 meters are formed from homogeneous lots (same meter type, electrical characteristics, manufacturer and seal year). Each year a percentage of the meters, in each compliance sample group, is randomly selected to be tested for accuracy as specified by Measurement Canada standards. When any of the sample groups fails to meet the specified requirements, all meters in that sample group are replaced. Routine sample and re-verification testing has continued at a reduced level during the mass replacement of conventional meters with smart meters, but will be ramped back up to normal levels when the Smart Meter program is completed. Field Activities Meter Services is also responsible for the field maintenance of the approximately,000 installed revenue meters. This includes changing out meters that require scheduled testing; replacement of broken or damaged meters; removal of meters from buildings scheduled to be demolished; installing meters at new or upgraded customer services; responding to meter remote communications problems within specified service standards; and installing specialized metering equipment to support customers conservation and
3 EB-0-0 Tab Page of demand management projects. Meter Services also conducts inspections and tests in the event of unresolved concerns by customers about the validity of their electricity bills. Much of the Residential and Small Commercial smart meter installation work was transferred to Field Services staff so that Meter Services trades staff could focus on larger and more complex C&I Installations. THESL expects this work alignment to continue through 0. Meter Services has replaced a number of retirees with new staff who will be trained primarily on C&I work. 0 Wholesale Metering Meter Services is also responsible for the wholesale meter installations used to measure electricity delivered by Hydro One ( HONI ) to THESL. The meters are installed at connection points between HONI s transmission and THESL s distribution systems. Most of these wholesale meters are currently owned by HONI but responsibility for their maintenance was transferred to THESL when the electricity market was opened in 00. Upon attaining full compliance with Ontario Wholesale Electricity Market Rules, THESL will be responsible for wholesale installations, more than double the that existed at the 00 market opening. THESL completed four meter point upgrades in 00. Two of the ten upgrades scheduled for 0 have been completed, and an additional upgrades are planned for 0. Many of these installations are included as part of THESL s capital rebuild program. This work is funded from the capital budget and is described in Exhibit D, Tab, Schedule and in Exhibit D, Tab, Schedule. Ongoing maintenance, testing and resealing of the wholesale meters in accordance with both Measurement Canada and IESO requirements is performed by a combination of THESL staff and contract service providers.
4 EB-0-0 Tab Page of Suite Metering Meter Services is also responsible for installing and maintaining individual suite metering in multi-unit residential buildings. Since Meter Services staff will be prioritizing C&I smart meter installations through 0, the installation, commissioning and maintenance of many of these meters has been outsourced. In 0, THESL plans to start training internal staff to transition these tasks in-house when the smart meter installations are completed. Smart Meters The Smart Meter installation program will be substantially complete at the end of 0. For 0, operating costs will be included as part of Meter Services operating expenses. 0 As required by Measurement Canada standards and prudent metering practices, Smart Meter measurement integrity will be ensured through maintenance programs including re-verification, compliance sample testing, on-site inspection and meter shop assessments. Smart Meter performance will depend on prompt resolution of communication failures between meters and their associated data collection systems. Meter Services staff will perform maintenance activities for Smart Meters installed at C&I and residential locations to ensure efficient and reliable measurement and data collection. Table : Meter Services Operating Costs ($ millions) 00 Historical 00 Historical 0 Bridge 0 Test Meter Services..0..
5 EB-0-0 Tab Page of The decrease in operating costs from 00 to 00 of $0. million was due to: $0. million decrease for staff moved into the accounts receivable organization in 00, responsible for a new data management operation for Residential Time-of- Use data and interval meter data for C&I customers; $0. million for a contracted increase in labour costs; and $0. million decrease in the number of staff required for meter test shop activities in 00, with staff being reassigned to assist with Smart Meter deployment. The decrease in operating costs from 00 to 0 of $0. million is due to: $0. million decrease due to a greater portion of available meter trade resources focusing on the capital smart meter installations for C&I customers in 0. The increase in operating costs from 0 to 0 of $. million is due to: $. million increase in labour costs that had been associated with the Smart Meter program, now being added to the normal maintenance activities of Meter Services in 0; and $0. million increase for inventory associated with the troubleshooting of nonreporting meters.
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