AGENDA ITEM NO.: 5.B.1 MEETING DATE: 12/09/2013

ADMINISTRATIVE REPORT NO.: 2014-34

To: Honorable Public Utilities Board Submitted by: ______/s/___________ Robert Orbeta

AGM – Administration

From: Steve Chiu Approved by: ______/s/____________ Utility Information Girish Balachandran General Manager

Subject: Advanced Utility Technology Presentation on Preliminary Findings and

Recommendations

RECOMMENDATION

This report is for information only; no action is required at this time. The purpose of the presentation is to provide the Public Utilities Board (Board) with the preliminary findings and recommendations of the Boreas Group.

BACKGROUND

In December 2012, the Board authorized the Boreas Group to develop an Advanced Utility Technology Plan for Alameda Municipal Power (AMP). The plan is currently under development and nearing the final stages of completion of the Phase 1 report. To date, over 60 of AMP’s employees representing all divisions, were engaged during this first phase, which was composed of over 79 workshops. The workshops were conducted during six weeks of on-site visits and were composed of a combination of education, discussions, job-shadowing, and assignments.

DISCUSSION

As the completion of Phase 1 of Boreas’ report enters its final stages, AMP staff will present to the Board an overview of the report’s preliminary findings and recommendations as developed by the Boreas Group. Also included in the overview is a proposed schedule for the implementation of the recommendations.

FINANCIAL IMPACT

None.

AGENDA ITEM NO.: 5.B.2

MEETING DATE: 12/09/2013 ADMINISTRATIVE REPORT NO.: 2014-34

LINKS TO BOARD POLICY AND OBJECTIVES

Strategy 3: Attract and retain an effective workforce that is appropriately aligned, well trained, equipped with the right tools and technology, and properly recognized.

Strategy 6: Implement energy efficiency, renewable power and customer service programs to increase customer satisfaction.

Strategy 8: Plan for the long-term reliability of utility distribution system assets while ensuring that annual operations and maintenance are implemented.

INITIATIVES

Initiative 4: Develop and implement an Advanced Technology Business Plan that is tailored to Alameda strategic, operational, financial, and environmental needs.

Initiative 7: Continue to develop change management and workforce initiatives.

EXHIBIT

A. PowerPoint Presentation

Smart Grid Technology PlanPreliminary Findings and Recommendations

December 9, 2013

1

Public Utilities Board

AGENDA ITEM NO.: 5.B.MEETING DATE: 12/09/2013EXHIBIT A

Overview

1) History and Phase 1 Approach2) Smart Grid Maturity Model (SGMM)3) Findings4) Recommendations5) Next Steps

2

History and Phase 1

3

History

• 2010 APW – “Strengthening its Foundation”• Staff education; strengthen knowledge and skills.

• 2011 APW – Introduced Advanced Technology• Issued RFI for Advanced Utility Technology

• 2012 APW – Board Provided Direction for Advanced Technology.

• Issued RFP for the Development of Advanced Utility Technology Plan. 

4

History

• December 2012 – PUB Authorized Boreas Group to develop an Advanced Utility Technology Plan.

• December 2012 to Current – Phase 1 of Technology Plan.

• 6 Weeks On‐Site• Over 60 Employees Engaged• Over 79 Workshops (Education, Job‐Shadow, Discussions, and Assignments)

• Report Review and Revision• July 15, 2013 – Technology Building Blocks Education Presentation for PUB

5

Phase 1 Approach

• Workshops including all staffing levels.• Education and examples.• Compare with current industry trends and similar utilities.

• Identified business gaps and needs.• Validate

6

Phase 1 Approach

7

Discovery

Analysis

CrossFunctional

BuildingBlocks

Options Development- Process- Organization- Technology- Convergence of

above

Report

Weeks 3 and 4• Identify opportunities• Familiarize everyone with 

potential solutions (e.g. Cost/Benefit, Functionality)

Week 6• Brainstorming and refining 

the optionsWeeks 1 and 2• How AMP works together• What technology is used• Identified certain opportunities.

Week 5• Validate opportunities/pain‐points• Identify value• Start to develop options• Discuss cost/schedule/resourcing of options

What is the Smart Grid to AMP

8

What is the Smart Grid to AMP?

What:• New technologies to increase operational capabilities

• Two way communications systems• Down the road, link distributed generation, storage and alternative energy sources

Why:• Practical working efficiency• Increased customer service to Alameda• Data analytics 

9

What is the Smart Grid to AMP?

• Fundamental Technology Layer– Geographic Information System– Work Management System– Outage Management System– Maintenance Management System– Advanced Metering Infrastructure (AMI)– Distribution Automation & SCADA– Communications

• AMI / Smart Meters is only one component of the Smart Grid.

10

What is the Smart Grid to AMP?

11

WMS

Mobile GIS MWM

IVR

OMSSCADA

DMS

AMI CES

MMS CMMS EA

GIS

CIS CRM

FLISR

Mobile GIS

Meter Reading

Gen Control EMS

Generation Transmission Distribution Customer

Operations Management

Asset Management

Customer Management

Smart Grid Paradigm

BI

EIS

EIS

DERVVC

DR

MDM

TOU

Dynamic Pricing

EnergyMgmt

DA

CMMSRCM

EEPortal

Energy Mgmt

Graphic Design

Smart Grid Maturity Model

12

Smart Grid Maturity Model

• AMP participated in SGMM for POU’s in 2011– Four Compass Surveys Completed– Survey Workshop Completed by AMP Team– Aspirations Workshop by Certified Navigator

• 8 Smart grid process domains• 175 Expected characteristics• Provides a common framework to define key elements of smart grid transformation.

• Analysis and results provided to the PUB by SAIC.

13

SGMM Domains

14

Smart Grid Maturity Model (SGMM) Levels

15

PIONEERING

OPTIMIZING

INTEGRATING

ENABLING

INITIATING

DEFAULT

Breaking new ground; industry‐leading innovation

Optimizing smart grid to benefit entire organization; may reach beyond organization; increased automation

Investing based on clear strategy, implementing first projects to enable smart grid (may be compartmentalized)

Taking the first steps, exploring options, conducting experiments, developing smart grid vision

Default level (status quo)

Integrating smart grid deployments across the organization, realizing measurably improved performance

AMP’s 2011 SGMM Profile

16

0

1

0 0 0 0 0 0

Alameda Today

AMP’s SGMM Aspirations

17

0

1

0 0 0 0 0 0

Alameda Today

Alameda’s Year 2020 Aspirations

3 3 3 3 3 3 3 3

SGMM & AMP

• AMP has taken a “follower” strategy by tracking and gaining experience from others.

• Higher level not always better.• Scoring system does not consider business goals and operating environment.

18

Findings

19

Preliminary Findings and Opportunities

• Major Categories of Findings:– Technology– Process– People

• Based on:– AMP’s vision and needs.– Industry Trends– AMP’s 2020 SGMM Aspirations– PUB’s adopted strategic goals and objectives

20

Preliminary Findings and Opportunities

• Technology Current State / Challenges1. Good understanding but limited use2. Limited system integration3. Inconsistent acceptance and use of existing technologies

• Technology Opportunities1. Performance Visualization2. Knowledge Management 3. Work Management4. Field Automation5. Customer Enablement

21

Preliminary Findings and Opportunities

• Process Current State / Challenges1. Effective Business Processes / Results2. Inconsistent Adherence & Documentation3. Dependence on Manual and Paper‐based Processes4. Moderate Level of Task Handovers / Data Re‐entry

• Process Opportunities1. Review & Re‐design 2. Inter‐divisional Process Coordination3. Align with Technology Solution 4. Automate not just Mechanize5. Documentation and Training

22

Preliminary Findings and Opportunities

• People Current State / Challenges1. Perception ‐Motivation / Reward2. Limited staff and skill capacity

• People Opportunities1. Change Management2. Skill Inventory & Training3. Outsource

23

Preliminary Findings and Opportunities

•

24

Recommendations

25

Preliminary Recommendations

26

Smart Grid Technology Plan Recommendations1. Planning 2. Organizational Change Management 3. Customer Engagement Platform 4. Electric Vehicle Plan and Policy 5. Targeted Metering Solution 6. Cloud-Based Solutions and Assess Application

“Insourcing” 7. Geospatial Visualization (Netbas Migration) and Asset

Management 8. KPI Dashboard 9. Expanded Use of Document Management 10. Grid Operations/ Distribution Automation 11. Customer Enhancements (Customer Outreach,

Internal and External Communications, Tools) 12. Basic Work order Tracking 13. Outage Management 14. Mobile Technology 15. AMI Re-Evaluation 16. AMI Deployment and MDMS Implementation 17. Integration of Major Systems 18. Distribution Management System 19. Formal Plan Review and Refresh

Preliminary Recommendations

• 2014 – Begin Work on Recommendations #1 – 71. Planning2. Organizational Change Management3. Customer Engagement Platform4. Electric Vehicle Plan and Policy5. Targeted Metering Solution6. Cloud‐Based Solutions7. Geospatial Visualization and Asset Management

27

Planning

• Initial planning is necessary to mitigate risk.• Initiate Smart Grid implementation while planning for future technology.

• Develop solid foundation for AMP to approach further implementations.

• Identify, address, and resolve staffing gaps.

28

SMR OS GO WAM TECH CUST VCI SE

Organizational Change Management Plan

• Facilitate initial project staging.• Provide AMP with a platform to approach future project deployments.

• Organization level planning and identification of key change agents.

• Establishment of mission, vision, value, and culture statements.

29

SMR OS GO WAM TECH CUST VCI SE

Customer Engagement Platform

• Empower and engage customers to manage their energy effectively.

• Increase customer knowledge of energy.• OPower  Customer Engagement Platform

– Web and Paper Home Energy Reports– Analytics and reporting of energy use.– Education and Advise– Neighbor Comparison

30

SMR OS GO WAM TECH CUST VCI SE

EV Plan and Policy

• Driven by developing EV market.• Define EV plan and policy that addresses:

– EV Charging Stations (Public, Private, 3rd Party)– Time of Use (TOU) Rates– AMP Fleet Needs– Engineering and Permitting Standards– Metering– Pilot Programs

31

SMR OS GO WAM TECH CUST VCI SE

Targeted Metering Solution

• Advanced meters for large commercial customers. (~300 Meters)

• Advanced meters for select residential customers such as backyard easements and customer reads.

• Collect interval data and sensor information.• Pilot for AMI technology.• Internal skill building and process determination.• Investigate sensor capabilities through advanced meters.

32

SMR OS GO WAM TEC H CUST VCI SE

Cloud‐Based Solutions

• Leverage cloud‐based technologies for high impact, and low resource cost.

• Examples:– Cloud solution to collect, manage, and present data from Targeted Metering recommendation.

– Work Flow Visibility– Electronic Time Keeping– Collaboration Tools

33

SMR OS GO WAM TECH CUST VCI SE

Geospatial Visualization and Asset Management

• Establish the foundational data “hub” referenced by geographic location.

• Enable future application integration.• Used for planning, maintenance and outage support.

• Requires data extraction, consolidation, and validation of current data.

34

SMR OS GO WAM TECH CUST VCI SE

Timeline

35

# Recommendation 2014 2015 20161 Planning X X X2 Organizational Change Management X X X3 Customer Engagement Platform X X X4 EV Plan and Policy

‐ Policy and Strategy Development X X‐ Develop and Implement Pilot Programs X X

5 Targeted Metering Solution‐ Develop and Issue RFP + Vendor Selection X‐ Implementation X X

6 Cloud‐Based Solutions‐ Electronic Timesheets X‐ Evaluate and Implementation of Other Solutions X X X

7 Geospatial Visualization and Asset Management‐ Data Cleanup, Consolidation and Validation X‐ Develop and Issue RFP + Vendor Selection X X X‐ Implementation X X

Recommendations SGMMSMR OS GO WAM TECH CUST VCI SE

Strategy, Management & Regulatory

Organization & Structure Grid Operations Work & Asset 

Management Technology Customer Value Chain Integration Societal & Environmental

543 A

2AB

ABGD

GDE

CD

1AD

AB G G B

EG

AD

0 F

36

A B C D E F G

PLANNING OCM CEP EV POLICY TARGET METER CLOUD GIS

Recommendations 8‐19

37

KPI Dashboard

• A computer interface providing data visualization of relevant Key Performance Indicators.

• Allow decision making at closest point of need.

• Increase availability and visibility or information.

38

Document Management

• Review and document processes and procedures, using a document management system with the goals of:– Preserve institutional data and knowledge.– Process cleanup and definition.– Make documents and data searchable.

39

Grid Operations / Distribution Automation

• Automation and intelligent control of distribution level power grid functions.

• Real‐time 2‐way communications and control of distribution systems.

• Improved control and visibility.• Expanded data availability.• Strategically place sensors in distribution system to enable visibility and data.

• Data Historian

40

Customer Enhancements

• Develop Customer Enhancement Plans to Address:– External Communications and Customer Outreach– Internal Communications– Improved Customer Communication Tools (ex., Web Payments, Mobile Platform, Outage Communication, etc.)

– Interactive Voice Response System Enhancements– True Customer Self‐Serve and Enablement

41

Basic Work Order Tracking

• A system used to track all stage of work; from initiation, schedule, execution, to close.

• Allows for organization‐wide visibility of work performed.

• Expansion of Service Order Tracking

42

Outage Management

• Evaluate and develop methods for AMP to manage outages. Possibilities include:– Automatic outage detection at substation level.– Automatic outage detection at the circuit level.– Automatic outage detection at the premise/device level.

– Outage call sorting and visualization.

43

Mobile Technology

• Enable mobile access to systems or data that was previously only accessible within the office environment. 

• Possibilities include:– Field Service Work / Work Management– GIS Maps– Asset Management and Inspection– System Visibility

44

AMI Re‐Evaluation

• Full scale AMI is not recommended as part of the early stages of this plan.

• A review of the AMI industry and conditions at AMP should be conducted periodically.

• Review lessons learned from pilot projects.• Determine if proposed benefits from pilots has demonstrated anticipated benefits.

• Determine if this is the time to initiate business and implementation plan.

45

AMI & MDMS

• Assuming the “AMI Re‐Evaluation” has determined that the conditions are ideal for AMI at AMP, proceed with implementation of AMI and MDMS.

• Example Benefits may include:– Enhanced Data Availability for Customers– Enhanced Customer Convenience and Service– Increase Reliability and Power Quality– Support New Rate Options– Data Analytics– Improved System Visibility and Outage Response

46

Integration of Major Systems

• Once a utility has a multitude of major systems in place, and integration strategy must be considered.

• Evaluate the need for an Enterprise Service Bus (ESB) architecture to facilitate data between major systems. 

• Reduce on‐going upgrade costs.• Improve software quality in integration.• Facilitate the availability of information.

47

Distribution Management System

• A collection of applications designed to monitor and control the entire distribution network. 

• Acts as a decision support system for operations and field personnel.

• Provides improve resource utilization by analytics and recommendations.

• Reduces system losses and improves voltage profiles.

48

Formal Plan Review and Refresh

• A review and update of the technology plan is recommended periodically after each milestone.

• The plan is evaluated at its current status, successes, and areas for improvement.

• The results are then used to develop a move forward plan.

49

Preliminary Recommendations

50

Smart Grid Technology Plan Recommendations1. Planning 2. Organizational Change Management 3. Customer Engagement Platform 4. Electric Vehicle Plan and Policy 5. Targeted Metering Solution 6. Cloud-Based Solutions and Assess Application

“Insourcing” 7. Geospatial Visualization (Netbas Migration) and Asset

Management 8. KPI Dashboard 9. Expanded Use of Document Management 10. Grid Operations/ Distribution Automation 11. Customer Enhancements (Customer Outreach,

Internal and External Communications, Tools) 12. Basic Work order Tracking 13. Outage Management 14. Mobile Technology 15. AMI Re-Evaluation 16. AMI Deployment and MDMS Implementation 17. Integration of Major Systems 18. Distribution Management System 19. Formal Plan Review and Refresh

Next Steps

• 2014 – Begin Work on Recommendations #1 – 7, and stage for #8 – 19. 

• Periodic Review and Refresh of Plan• SGMM Re‐Assessment• Seek Periodic Guidance from PUB 

51

52