Southwest Renewable Energy Conference Smart Metering 101 Salt River Project Smart Meter Implementation September 13, 2010 1

Southwest Renewable Energy ConferenceSmart Metering 101

Salt River ProjectSmart Meter Implementation

September 13, 2010

1

Economic Considerations

2

Information

SRP Pilot Project

• Assessed smart meter technical viability and benefits– Smart meter performance and metrics– Self healing and network capabilities– Business impacts, benefits and opportunities

• Partnered with Elster and self-implemented pilot effort using trained SRP employees

• Scope– Elster Energy Axis system with ~500 REX meters– Contained service area of single family, patio and apartment

residences

3

SRP Pilot Project

• Evaluation and Testing activities:– Billing read accuracy – standard, TOU and demand metering– Meter read performance – cumulative ‘received’ energy / voltage– Remote handling of service requests– Tamper, error and outage features and reliability– Self healing and multi-level repeating functionality– Remote programming– Network performance with different gatekeeper configurations– Network time synchronization

• Verified data gathering and system features at 99.9%

4

Benefits – Business Case

• Labor Savings – Field activities– Reduced manual meter reading– Substantially reduced field visits with back office support

• Reduced maintenance• Safety• Billing Efficiencies – provided flexibility

– Flexible reads / billing dates with reduced estimation or support– Rate changes without meter exchanges– Ease for bill adjustments and validation– Summary billing opportunities

• Revenue assurance –improved detection/monitoring• Potential for distribution management and operations

– Outage restoration– Load forecasting and distribution loading/loss studies

5

Implementation

• Moderate and sustained smart meter installation– Implemented by meter route for smooth transition– Targeted distant or hard to reach territories first– Safety considerations – Considered capital constraints and existing meter life

• Meter quality / testing program

• Established Customer notification program

• Concurrent integration with customer relationship system for billing and orders – recognized operating efficiencies

• Customer focus – empowered the Customer to better manage usage– Provided Customers with information and benefits via SRP web portal -

MyAccount

– Expanded TOU rate offerings with ‘Smart data’ enabled rate design targeted at summer critical peak (EZ-3)

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77

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SRP e-NotificationDear Christoffer,Your SRP electric meter has reported an outage at your Main Street residence. Please visitwww.srpnet.com formore information.Scott TroutManager, SRP Residential Customer Services

SRP e-NotificationDear Christoffer,Your SRP electric usage has reached your preset threshold of $200.Please login towww.srpnet.com to view your daily usage totals.Scott TroutManager, SRP Residential Customer Services

ADAM – Advanced Data Acquisition and Management

Federal Stimulus Program

ADAM

9


DOE SGIG Grants

• Federal Recovery Act funded $3.4 billion in Smart Grid Investment Grants (SGIG)– SGIG managed and implemented by U.S. Dept. of Energy

– SRP received $56.9 million grant

• Purpose:– Accelerate the modernization of the nation’s electric grid

– Promote investment in smart grid technologies

• Recipients selected through a competitive merit-based review process– 100 awards out of approximately 400 applications

– SRP received 1 of only 19 awards > $50 million10


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Topic Area

Number of Application

sSelected/

Conforming

Federal Funding

Applicant Funding

Equipment Manufacturing 2/14 25,786,501 25,807,502Customer Systems 5/27 32,402,210 34,933,413Advanced Metering

Infrastructure31/138 818,245,749 1,194,272,137

Electric Distribution 13/39 254,260,753 254,738,977Electric Transmission 10/28 147,990,985 150,454,793

Integrated and Crosscutting 39/143 2,150,505,323 3,082,366,420Total 100/389 3,429,191,521 4,742,573,24

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• Term of 5 years– Performance period of 3 years– Additional reporting period of 2 years

• DOE to reimburse SRP up to 50% of eligible project costs on a monthly basis

• Key focus areas:– Compliance with DOE and Audit requirements– Analysis & reporting of Energy Efficiencies– Meter Data Management System (MDMS)– Meter Asset Management System (MAMS)– Meter roll-out and management of the business

requirements, needs and impact

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Program Management, Compliance & Reporting

•Execution, Metrics & Benefits & Cyber Security Planning•Program, Project and Risk Management•Compliance management and ARRA and DOE reporting (earned value)•Analysis and Reporting of reporting

• Deploy sparse Deploy sparse networknetwork

• Deploy 74K smart Deploy 74K smart metersmeters

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Planning•DOE Plan creation•Compliance readiness•ARRA reporting

• Deploy 163K smart Deploy 163K smart metersmeters

• Monitor Mesh NetworkMonitor Mesh Network• Elster UpgradesElster Upgrades• Manage InventoryManage Inventory

• Deploy 170K smart Deploy 170K smart meters meters

• Upgrade smart metersUpgrade smart meters• Monitor Mesh NetworkMonitor Mesh Network• Upgrade ElsterUpgrade Elster• Manage InventoryManage Inventory

• Deploy 145K smart Deploy 145K smart meters meters

• Upgrade smart metersUpgrade smart meters• Monitor Mesh NetworkMonitor Mesh Network• Upgrade ElsterUpgrade Elster• Manage InventoryManage Inventory

• Source selectionsSource selections• Vendor negotiationVendor negotiation

• Enterprise data Enterprise data requirements & requirements & modelingmodeling

• Implement MDMSImplement MDMS• Elster meter dataElster meter data• MAMS product MAMS product

requirementsrequirements

• MDMS CIS InterfaceMDMS CIS Interface• MDMS complex bill & MDMS complex bill &

process requirementsprocess requirements• MDMS Weather dataMDMS Weather data• MV90 / Other meter MV90 / Other meter

data data • Web presentment - Web presentment -

interval datainterval data• MAMS RFI/negotiationMAMS RFI/negotiation

• Implement MDMS Implement MDMS complex billing & complex billing & process servicesprocess services

• Implement MAMS Implement MAMS • MAMS interfaces to MAMS interfaces to

SRP financial systemsSRP financial systems

• Load StudyLoad Study• Transformer Metering Transformer Metering

PilotPilot• EV Pilot reporting EV Pilot reporting

beginsbegins

• Load StudyLoad Study• Transformer Metering Transformer Metering

PilotPilot• EV Pilot reportingEV Pilot reporting

• Share additional Share additional findings if warrantedfindings if warranted


Smart Grid Utilization

• Transformer Metering Pilot• Electric Vehicle Submetering Pilot• Load Study and comparison for new Time of

Use rate ‘EZ-3’

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Integration Integration and Standardsand Standards

ProtectionSCADA

Data ManagementData Management NetworkNetwork ManagementManagement

SecuritySecurity

OutageManagementOperationsOperations

EMS DFA

OutageOutageManagementManagement

Asset Asset ManagementManagement

Substation Automation

CustomerCustomer

AMI

ProtectionProtection

Synchrophasors

SCADASCADA

CIM

NERC/CIPNOC

MDM

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Billing Meter

Solar Meter

Solar Disconnect

Customer Load

WAN

Level 1Level 2

Level 3

EA_MS Server

Distribution Transformer

Level 1Level 2

Collector

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EV sub Meter

Billing Meter


West Complete April 2011; 684,000 REX Meters

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Central CompleteNovember 2011; 783,000 REX Meters

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East Valley Complete June 2012; 886,000 REX Meters

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MDMS – What is it?

Fundamentally a data repository to centrally store and effectively manage the vast amount of metered data for the orders and billing processes

- And more -

Provides a mechanism to validate, edit and estimate data and provide timely, reliable, and consistent information to multiple enterprise systems and operational areas.

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MDMS – Enterprise Meter Data

Outage Management

Transformer Load Management

Distribution Planning and Operations

System Losses / Voltage Control

Load Forecasting

Asset Management

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• Provide for vertical for end-to-end Smart Grid offering

• Proven meter data management system

• Innovative communication

• Experience with end customer systems

• Tight coupling with Elster systems

• Direct communication protocols to metering devices

• Flexible architecture for system integration– Minimize deployment costs

– New applications can added without core development

• Allows for future business needs

22

MDMS Selection Considerations


The Results

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Customer

• Access to daily TOU and via the web e-notification alerts allow customers to manage their usage

• E-notification alerts available

• 20% increase in TOU rate participation with smart meters – helping to shift from on-peak to off-peak and reduce load demands

• Customers leverage smart meters for additional savings via new TOU price plan (EZ-3)

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Avoided Field VisitsFY06 29,589FY07 91,195FY08 169,664FY09 245,504FY10 212,232

Rem

ote

Ord

ers

Com

plet

ed

Over 748,000 orders completed andfield visits avoided

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Lab

or H

ours

Sav

ed

Over 249,000 labor hours saved

Labor Hour SavingsFY06 9,853FY07 30,368FY08 56,498FY09 81,753FY10 70,673

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Mile

s S

aved

Over 1.3 million miles saved

Miles SavedFY06 49,118FY07 151,384FY08 342,908FY09 443,111FY10 383,059

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Fue

l Sav

ing

- G

allo

ns

Over 135,000 gallons in fuel savings

Fuel Saving (Gallons)FY06 4,863FY07 14,988FY08 33,951FY09 43,872FY10 37,927

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• Safety– 39% decrease in personal injuries– 10% reduction in vehicular accidents

• Improved revenue recovery from operations

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Disconnect type Average amountAverage days to reconnect

Smart meter $247 1

Field $350 4


Other Learnings

• Assume and allow for advances in technology– Phased approaches– Investment considerations (e.g. meter life,

infrastructure)

• Strong supplier partnerships are key• Consider the enterprise in establishing new rules• Plan for knowledge transfer and intellectual

property retention

31


Economic Considerations

32

Information


Questions

33

Documents

Southwest Renewable Energy Conference Smart Metering 101 Salt River Project Smart Meter Implementation September 13, 2010 1