Alameda Municipal Power (AMP) Advanced Metering Infrastructure (AMI) Assessment Public Utilities Board Presentation

Transcription

1 Alameda Municipal Power (AMP) Advanced Metering Infrastructure (AMI) Assessment Public Utilities Board Presentation Presented by: Dale Pennington and Nicole Griffin Date: January 25, 2016

2 Alameda Municipal Power (AMP) Advanced Metering Infrastructure (AMI) Assessment Public Utilities Board Presentation Presented by: Dale Pennington and Nicole Griffin Date: January 25, 2016

3 Agenda! Introductions! UtiliWorks! AMP! Project goals & objectives! Results and recommendations! Next steps! Q&A 3

4 Introductions UtiliWorks Consulting! A consulting firm that specializes in providing professional services in the electric, water, and gas utility space! Started UtiliWorks in 2005 to address the AMI/smart metering market! Average staff member has 20+ years of experience 4

5 AMP Project Team Participants! Bob Orbeta is the Project Sponsor.! Steve Chiu is the Project Manager.! Project team members include representatives from across the organization in order to ensure that business objectives are identified. Project Sponsor Bob Orbeta Project Manager Steve Chiu Administration Customer Resources Engineering & Operations Energy Resources Planning 5

6 What is AMI, MDMS and Prepay?! Advanced metering infrastructure (AMI) is an integrated system of smart meters and communications networks that enables two-way communication between utilities and customers.! A Meter Data Management System (MDMS) partitions meter data from the AMI and presents it in an easy-to-use format.! Prepay is a payment option in which customers can pay in advance for utility services. Electric Meters 6

7 Project Objectives! The primary objective is to determine the feasibility for AMP to move forward with an AMI implementation.! AMP selected UWC to:! Develop overall AMI goals and objectives specific to AMP! Develop a cost/ benefit analysis of implementing an AMI system! Perform an Assessment to facilitate AMP in deciding how to proceed with an AMI Project! Present the findings and recommendations to the Public Utilities Board! Ultimately ensure a thorough due diligence effort 7

8 Goals & Objectives! Establish interoperability between systems to reduce/eliminate manual processes.! Improve accessibility and internal awareness of data, information, capabilities, and resources for AMP employees.! The data provided by smart systems will help AMP to target and prioritize areas on the distribution system that are in need of upgrades/replacements as well as improve overall reliability.! Improve customer service and add additional choices by using accurate, near real-time AMI data.! Reduce/eliminate truck rolls required for manual monthly meter reading, meter disconnect/reconnect, on-demand reading, etc.! Offer prepay as a payment option.! Leverage existing fiber for utility backhaul communications system. 8

9 Results and Recommendations! Three separate scenarios were developed:! AMI and MDMS! AMI, MDMS, and remote disconnect for residential meters! AMI, MDMS, remote disconnect and prepay (10% adoption)! Results for each scenario were evaluated for hosted, Smart Grid as a Service (SGS) and on premise options.! UtiliWorks is recommending AMP move forward with an on premise implementation of AMI, remote disconnect meters, MDMS, and prepay. 9

10 Results and Recommendations Deployment Option Hosted SGS On Premise Who owns system? Vendor Vendor AMP Who is responsible for daily operations? Who is responsible for hardware maintenance? AMP SGS Contractor AMP AMP AMP AMP Who maintains the network? Vendor SGS Contractor AMP Software upgrades included? Additional fees in most cases. Yes No In event of system failure, who is the responsible party? Integration with other utility systems? Who manages servers and data repository? Vendor SGS Contractor Shared Yes Yes Yes Vendor SGS Contractor AMP 10

11 Results and Recommendations Hosted Smart Grid as a Service On Premise AMI and MDMS Net Present Value $8,293,000 $5,894,000 $8,353,000 Capital Costs During Deployment $7,004,000 $6,098,000 $7,389,000 Operating Costs for 20 years $2,469,000 $8,709,000 $1,659,000 Payback Period (Years) Return on Investment (20 Years) % % % AMI and MDMS + Remote Disconnect Net Present Value $9,146,000 $6,746,000 $9,205,000 Capital Costs During Deployment $7,783,000 $6,877,000 $8,168,000 Operating Costs for 20 years $2,469,000 $8,709,000 $1,659,000 Payback Period (Years) Return on Investment (20 Years) % % % AMI and MDMS + Remote Disconnect + Prepay Net Present Value $9,124,000 $6,725,000 $9,184,000 Capital Costs During Deployment $7,884,000 $6,978,000 $8,269,000 Operating Costs for 20 years $2,632,000 $8,872,000 $1,822,000 Payback Period (Years) Return on Investment (20 Years) % % % 11

12 Results and Recommendations! Scenario #1- AMI & MDMS. This serves as the foundation for scenarios 2 and 3. Benefits for scenario 1 were evaluated holistically and categorized as follows:! Meter reading! Move in/ move out! Outage management! Annual meter replacement budget! Customer call reduction! Metering service orders! Theft identification! Re-read reduction! Billing exception handling expense! Meter accuracy 12

13 Results and Recommendations! Scenario #2- Remote disconnect provides additional benefits by being able to disconnect and reconnect electric meters virtually (without a site visit required).! Reduced cost for delinquent turn-offs alone would save $137,750 annually.! Scenario #3- The scenario to add prepay was slightly less favorable per the business case. However, UWC is recommending this option because:! In UWC s experience customer response to prepay is overwhelmingly positive.! Prerequisite (remote disconnect) is already captured in scenario 2.! Financial benefits for both customers and the utility with a well-designed and implemented prepay offering are expected. 13

14 Results and Recommendations! UWC is recommending an implementation timeline of 1.75 years:! 9 months for the AMI/ MDMS integration phase! 6 months for AMI full deployment with an installation contractor! 3 months for prepay deployment ID Alameda Municipal Power Implementation Strategy Start Finish Duration Q3 Q4 Q1 Q2 Q3 Q4 Q1 1 AMI and MDM Deployment 5/2/ /1/ d 2 Integration Phase 5/2/2016 1/27/ d 3 Full Deployment 2/1/2017 8/2/ d 4 Prepay Deployment 8/3/ /1/ d 14

15 Next Steps! AMP staff to provide a recommendation to the Public Utilities Board on the most favorable scenario:! AMI and MDMS! AMI, MDMS, and remote disconnect! AMI, MDMS, remote disconnect and prepay (10% adoption)! Determine which financial option will be utilized:! Hosted! Smart Grid as a Service (SGS)! On premise! Define internal resource requirements and plan accordingly 15

16 Next Steps Continued! Determine funding options! Operating funds! Renewable Energy Credit Net Revenue Reserve Fund! Municipal bonds! Grants! Vendor financing! Technology procurement! Requirements definition! RFP development and administration! Vendor evaluation and selection! Contract negotiations 16

17 Q&A Thank You! 17