Advanced Metering Infrastructure in Victoria

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1 30 May 2006 Advanced Metering Infrastructure in Victoria 1 Contents 1. Background 2. CRA/Impaq Cost-Benefit Study 3. Government Policy Decisions 4. Governance 5. Legislation 6. Functionality 7. Summary and Conclusions 8. Messages to Vendors 2 2

2 Background! Government concern with industry response to ESC s Interval Meter Roll-Out ( IMRO ) decision in July 2004.! Increase in technological capabilities and appetite for DSM since main ESC analysis.! Collaboration sought with industry in April 2005 to investigate the incremental case for enhanced communications functionality.! CRA / Impaq cost-benefit study completed December 2005.! Government policy decisions made to develop Advanced Interval Metering Infrastructure project in February 2006.! Industry advisory bodies established to prepare detailed proposals.! Legislation expected to pass Parliament in week ending 25 August. 3 3 CRA/Impaq Cost-Benefit Study Scenario Incremental Present Value ($m) Rollout Communications Benefits Costs Net Benefits 1: IMRO (a) Wireless (b) DLC (a) Wireless : Accelerated Rollout (b) DLC (c) Mesh radio (d) PLC

3 Study - Potential AMI Functionalities Gas & Water meter reading Distribution System functionality Outage Det N/w load info Costs Load Control Emerg shed QoS In home display panel Not quantified Benefits Savings from avoided cost of Gas & Water meter reading Distribution System opex & capex savings from Outage detection Network load info Street lights cont Emerg Load shed Quality of supply Load Control capex deferral Benefit of additional demand response from in home display Savings from reduction in unknown customers Non-technical loss detection Remote Connect/Disconnect Remote Meter Reading Study Business Case Savings from avoided manual (de) energisations Savings from avoided manual meter readings & customer calls Base Case IMRO enables demand response 5 5 Government Policy Decisions (Feb 2006) " The IMRO program will be modified to incorporate advanced communications functionality; " At a minimum, the functionality will include remote reading and remote connect / disconnect; " The advanced functionality will be deployed to all customer sites; " Deployment will be accelerated, over a period of around 4 years; " Deployment is targeted to commence in 2008; and " Government will oversee the development phase of the project. 6 6

4 Governance Strategy! Vic Department of Infrastructure 1 Representative! Electricity Distribution Businesses 5 Representatives! Electricity Retailers 4 Representatives! The Essential Services Commission 1 Representative! NEMMCO 1 Representative! Customer Associations 1 Representative! Dept of Sustainability and Environment - 1 Representative 7 7 Governance - Framework DOI Industry Strategy Functionality Working Trials Working Customer Response Working Technical Working 8 8

5 Governance - Role of Strategy! To identify (additional) minimum state-wide AMI functionality! To set appropriate performance levels for AMI systems;! To ensure effective means for communicating between Retailers and Distributors to initiate AMI system actions, and to receive responses! To propose an appropriate approach to putting the IMRO program on hold! To develop AMI trials plans, and to co-ordinate trials! To develop requirements for AMI deployment plans 9 9 Legislation " Local Network Service Providers and Retailers will be subject to new deemed licence conditions; " The new conditions will include a requirement to deploy prescribed AMI and associated communications services; " The application of the conditions will be consistent with the current election provisions in the National Electricity Rules; " Details of the new functionality, performance and service requirements, etc, will be prescribed in a regime of Orders-in-Council; " The Orders will also be able to: incorporate or amend the provisions of various AMI-related Codes, guidelines, procedures, etc, published by the Essential Services Commission; specify various parameters of the nature and conduct of proposed AMI technology trials; specify various parameters associated with AMI deployment such as timeframes, locations, volumes, etc; specify requirements for any removal or adjustments to AMI and associated services to ensure the retention of existing streamlined processes for retail customer transfers; authorise arrangements for the setting and regulation of charges levied by LNSPs for the prescribed AMI deployment and associated services

6 Functionality Proposed suite Core Functionality Routine read Special read Connect/ Disconnect Controlled Load Additional Meter Functionality Import /Export Reactive energy Quality & Reliability of supply Supply Capacity Control Meter Peripheral functionality enabled In Home Display (via DLC or Wireless) Other Load Control (via interface port) Gas & Water Metering (Provision for via interface port) NMS/Data Concentrator functionality Outage detection Tamper Detect Functionality factors for consideration! Harmonisation across jurisdiction(s)?! Future-proofing?! Technology-agnostic?! Performance and service levels?! Potential gas/water meter linkages? 12 12

7 AMI System Schematic In Home Display Customer Load Mgmnt Meter Communications Network Network Management System Connect/ Disconnect System DB Systems MDMS Systems B2B Hub Retailers Systems NEMMCO MSATS AMI System Vic Project Plan Key features! Draft AMI functionality and performance levels, released Aug 06! Technology trials, to commence Dec 06! AMI deployment likely to take 4 years! Deployment to cover all 2.4 million Victorian customers, not presently remotely read! Deployment to commence in third quarter 2008! Geographic-based rollout likely! Customer response trials to assist future demand-side development, to commence Winter

8 Messages to AMI Vendors! Government encourages vendors to participate in AMI! Electricity industry participants are your primary customers they will be procuring and rolling out AMI systems! Opportunity to participate in trials Industry participants will be making purchasing decision based on trials! It is unlikely that AMI systems not included in trials would be contenders for rollout! Distribution Businesses, Retailers and MDAs may require additional systems in taking advantage of AMI! Government encourages vendors to have technically competent local capability: " to participate in functionality requirements consultation, " to participate in technology trials " to engage with Government, regulators, and the wider industry 15 15