Vendor Briefing May 26, 2006

Vendor BriefingMay 26, 2006

AMI Overview & Communications TCM

2 www.sce.com/ami© Copyright 2006, Southern California Edison

Intelligently Connecting Edison to our Customers

• Enable Energy Smart Customers– Integrated information from utility– Payment options (e.g., pre-payment)– Outage & service condition information– Support rate option innovations

• Manage Distributed Resources– Economic dispatch of load resources– Dispatch of load for grid management– Intelligent net metering– Management of distributed energy resources

• Operational Efficiencies– Field communication links to distribution– Revenue cycle improvements– Situational data in near real-time– Wholesale - retail markets integration

• Built with the future in mind– Upgradeable WAN/HAN communications– Leverage open architecture principles in

system design – Future customer service offerings

SCE seeks to leverage a 2-way communications infrastructure with 5 million intelligent metering devices on our distribution network to create lasting value for our customers and our operations


SCE Advanced Metering Infrastructure

A/C Load Control

PriceResponse

Capital

(Meters, Network,

IT)

Costs Benefits

O&M

MeterReading

Cust Svc

Operations

A/C Load Control

PriceResponse

Capital

(Meters, Network,

IT)

SCE ProposalAMI

Benefits

O&M

MeterReading

Cust Svc

Operations

SCE Aug., 2005 Supplemental Testimony supporting Phase I

A/C Load Control

PriceResponse

Capital

(Meters, Network,

IT)

Costs Benefits

O&M

MeterReading

Cust Svc

Operations

A/C Load Control

PriceResponse

Capital

(Meters, Network,

IT)

SCE ProposalAMI

Benefits

O&M

MeterReading

Cust Svc

Operations

SCE Aug., 2005 Supplemental Testimony supporting Phase I

AMI Program is employing a multi-phased approach to development and deployment of a next generation advanced metering infrastructure over a 7 ½ year timeframe.

• Address fundamental cost drivers from last business case

• Add functionality to system:– Maximize the potential value from load control

for both grid reliability and demand response

– Increase field automation and efficiency

• Identify additional uses for system based on tangible customer and SCE business value

Business Process

Design &Proof of Concept

Beta Development

& Pilot

Business

Deployment

Pre DeploymentMeter Trade &

Feasibility Studies

Conceptual Processes & Systems Reqs

Business Process

AIM Requirements,

“Design” & Proof of Concept

Beta Product

Field Pilot

Business Case in Chief

Full

Activities

Meter Trade & Feasibility Studies

Cost/Benefit Analyses

12/2005 6/2007 12/2008 12/2009 5/2013

Business Process

Design &Proof of Concept

Beta Development

& Pilot

Business

Application


Conceptual Processes & Systems Reqs

Business Process

AIM Requirements,“Design” &

Proof of Concept

Beta Product

Field Pilot


Cost/Benefit Analyses

Phase II18 Mos.

Phase I18 Mos.

Phase III B42 mos.

Phase III A12 Mos.

Phase II18 Mos.

Phase I18 Mos.

Phase III B42 mos.

Phase III A12 Mos.

Phase II18 Mos.

Phase I18 Mos.

Phase III B42 mos.

Phase III A12 Mos.

Phase II18 Mos.

Phase I18 Mos.

Phase III B42 mos.

Phase III A12 Mos.

Final Business CaseDesign & System Dev


SCE Brainstorming

SCE Brainstorming

Business Use Cases (Scenarios)

---

Distribution operator locates outage using AMI data and restores service

Multiple clients use the AMI system to read data from devices at customer site

Meter reading for gas & water utilities

Utility upgrades AMI system to address future requirements

--

Customer provides distributed generation

Customer uses pre-payment services

Utility detects tampering or theft at customer site

Utility maintains the AMI system over its entire life-cycle

-

Utility procures energy and settles wholesale transactions using data from the AMI system

Distribution operators optimize network based on data collected by the AMI system

Customer reads recent energy usage and cost at site

Utility remotely limits or connects/ disconnects customer

Utility installs, provision and configure the AMI system

AMI system recovers after power outage, communications or equipment failure

Real-time operations curtails (or limits) load for economic dispatch (ES&M)

Distribution operator curtails customer load for grid management

Customer reduces demand in response to pricing event

Multiple clients read demand and energy data automatically from customer premises

Installation & Maintenance

Field Services / System Recovery

Energy Procurement

DeliveryCustomer Interface

Billing & Customer Service

---

Distribution operator locates outage using AMI data and restores service

Multiple clients use the AMI system to read data from devices at customer site

Utility upgrades AMI system to address future requirements

--

Customer provides distributed generation

Customer uses pre-payment services

Utility detects tampering or theft at customer site

Utility maintains the AMI system over its entire life-cycle

-

Utility procures energy and settles wholesale transactions using data from the AMI system

Distribution operators optimize network based on data collected by the AMI system

Customer reads recent energy usage and cost at site

Utility remotely limits or connects/ disconnects customer

Utility installs, provision and configure the AMI system

AMI system recovers after power outage, communications or equipment failure

Real-time operations curtails (or limits) load for economic dispatch (ES&M)

Distribution operator curtails customer load for grid management

Customer reduces demand in response to pricing event

Multiple clients read demand and energy data automatically from customer premises

Installation & Maintenance

Field Services / System Recovery

Energy Procurement

DeliveryCustomer Interface

Billing & Customer Service


SCE AMI Technology Assessment Approach

(Deployment)

Level 1(Alignment) Level 3

(Lab Testing)

Level 2(Validation)

Level 4

(Field Test)

ID “Next Gen”development

Due Diligence Reviews

Product Availability & TestingQ1-’06

Complete Q2-’06Q4-’06

Phase IIStart 6/07

Phase IIIStart 12/08

(Deployment)


(Lab Testing)

Level 2(Validation)

Level 4

(Field Test)





Phase IIStart 6/07



(Lab Testing)

Level 2(Validation)

Level 4

(Field Test)





Phase IIStart 6/07


Goal: Competitive commercial products available from at least three meter and three communication vendors that meet SCE’s minimum requirements for performance and price by the end of Phase I

L1 Key Criteria:- Functional Capabilities- Product Timing- Commercial availability- Interoperability- 2-way comms- Reliability & Availability- Security- Serviceability- HAN Capabilities- WAN Options- Target price range- Other

L2 Key Criteria:- Design Development - Production Capabilities- Financial Condition- Processes:

Business / DevelopmentManufacturing (NPI)

- Supply Chain- Small Requirements Gaps- Other

L3 Key Criteria:- Successful Lab Test- Added functionality- Flexibility- Commercial Terms - Other


Technology Capability Maturity (TCM)

Value to SCE Customer moves Prepayment Emergency / economic curtailment

Credit & collections service limiting Contract demand Planned outage safety

SCE’s Business, System &

Architecture Requirements

Vendors’ Road Map & State of Technological

Maturity


Programmable Disconnect Switch (illustrative example)

• Customer moves• Emergency curtailment (supply constraints)• Economic curtailment (high price)• Staged restoration during interruption anomaly• Prepayment services• Credit & collection service limiting• Customer side load sensing

– Possible theft detection following switch opening

– Possible customer owned generation following switch opening

• Contract demand• Planned outage safety mechanism

– Proactively activate switch in affected area to ensure no load side voltage

Target AMI Phase I capability set

Commercially available & deployed (>1,000 units), current limiting, voltage sensing, 200 Amp, integrated device

Targeted Maturity Level

54321


Conceptual Architecture Refinement & Level Setting

AMI USE CASES, REQUIREMENTS, COST/BENFITS &AMI USE CASES, REQUIREMENTS, COST/BENFITS &VENDOR ASSESSMENTSVENDOR ASSESSMENTS

Vendor Assessments RFI responses and interview results

Initial distilled set of prioritized requirements

8

Map requirements to components

Rank vendors on capability hierarchies

Refine conceptual models to match vendor capabilities

AMI Roadmap

Screen vendors

Short-list of vendors coupled with a clear Short-list of vendors coupled with a clear conceptual AMI architectureconceptual AMI architecture


Technology Capability MaturityCommunications Scales


Communication – Architecture Flexibility Architecture Flexibility (Platform: MCU, Memory, OS, Abstraction)

Ma

turi

ty L

ev

el

5 X X X X4 X X X3 X X2 X1 X0 X

Value to SCE Prepayment Configurable Intervals & Tariffs Non-usage messaging to customer

Security management Contract meter reading Upgrades & flexibility in the future


Communications - Availability

Value to SCE Basic Automated Meter Reads Remote troubleshooting Security management

Predictive Maintenance Remote maintenance Upgrades & flexibility in the future

Availability

Ma

turi

ty L

ev

el

5 X X X X X4 X X X X3 X X X2 X X1 X0 X


Communications – HAN (Home-Area Network)

Value to SCE Demand Response

Price Response Load Control for Grid reliability Economic dispatch

Contract meter reading Message receipt validation (DR) Prepayment

HAN (Home-Area Network)

Mat

uri

ty L

evel

5 X X X X X X X X X X X X X X X X4 X X X X X X X X X X X X X X3 X X X X X X X X X X X X X2 X X X X X X X X X X1 X X X X0 X


Communications – Interoperability – Meters to Comm

Interoperability - Meters to Comm

Mat

uri

ty L

evel

5 X X X X X X X X X4 X X X X X3 X X X2 X X1 X0 X

Value to SCE AMI performance optimization Risk mitigation against technology

obsolescence

Lower total cost of ownership Contract meter reading Enable third parties to use AMI


Communications - Reliability

Value to SCE Maintenance improvements Predictive maintenance Longer service life improves total cost of ownership

Reliability

Ma

turi

ty L

ev

el

Prove

n M

inim

um S

ervic

e Lif

e of

25

Years

with

at le

ast 1

00k U

nits i

n

The F

ield

and

a fa

ilure

rate

of le

ss

than

.5%

Prove

n M

inim

um S

ervic

e Lif

e of

20

Years

with

at L

east

100k

Unit

s in

the

Field

and

a fa

ilure

rate

of le

ss

than

.5%

.

Projec

ted

Mini

mum

Ser

vice

Life

of

20 Y

ears

Sup

porte

d By A

ctual

Field

Data

and

a fa

ilure

rate

of

less t

han

0.75

% p

er ye

ar.

Projec

ted

Mini

mum

Ser

vice

Life

of

20 Y

ears

Usin

g Acc

elera

ted

Life

Test a

nd a

failu

re ra

te o

f less

than

0.75

% p

er ye

ar.

Device

has

a m

inim

um ca

lculat

ed

serv

ice lif

e (n

on-re

paira

ble u

nit) o

f

15 ye

ars b

ased

on

indus

try

stand

ard

test

met

hodo

logies

and

a

failu

re ra

te o

f less

than

0.5

% p

er

year

..

Less

than

a M

inim

um S

ervic

e Lif

e

of 1

5 Yea

rs

5 X X X X X X4 X X X X X3 X X X X2 X X X1 X X0 X


Communications - ScalabilityScalability

Mat

uri

ty L

evel

5 X X X X X X X X X X X4 X X X X X X X X X X3 X X X X X X X2 X X X X1 X X X0 X

Value to SCE Flexibility in tariff design Contract meter reading Measurement interval flexibility

Power Quality monitoring AMI extensibility in the future Enable third parties to use AMI


Communications - SecuritySecurity

Ma

turi

ty L

ev

el

Inte

grat

ed w

ith In

trusio

n Det

ectio

n Sys

tem

s

Centra

lized

Cre

dent

ial M

anag

emen

t

Auditin

g an

d Oth

er N

on-R

epud

iation

Mea

sure

s

Two-Fac

tor A

uthe

ntica

tion

of U

sers

One-S

tep

Revoc

ation

of C

rede

ntial

s for

a C

ompo

nent

Role-B

ased

Aut

hent

icatio

n of

Use

r

Mut

ual A

uthe

ntica

tion

All Sec

urity

Mea

sure

s Non

-Pro

priet

ary

Encry

ption

and

Aut

hent

icatio

n on

all t

hree

: HAN, N

AN and

WAN

Secur

ity In

tegr

ated

in A

MI

Remot

e Sse

curit

y Upg

rade

s

Encry

ption

and

Aut

hent

icatio

n on

One

or T

wo of

: HAN, N

AN

or W

AN

Add-O

n Sec

urity

Sof

twar

e

Extern

al Sec

urity

Dev

ices

Does N

ot In

terfe

re w

ith O

ther

Ven

dors

' Equ

ipmen

t

5 X X X X X X X X X X X X X X X4 X X X X X X X X X X X X X3 X X X X X X X X X X X2 X X X X X X X X1 X X X X X0 X

Value to SCE Security management Tamper & theft detection Remote Disconnect

Demand Response Distribution automation All other command & control


Communications – Serviceability/ Maintainability Serviceability / Maintainability

Mat

uri

ty L

evel

5 X X X X X X X A/M X X X4 X X X X X X A/M X X X3 X X X X X X M X X X2 X X M X X X1 M X X X0 X

Value to SCE Self-tests & remote troubleshooting Remote & Predictive Maintenance High QoS

Outage detection Optimized network installation Reliable automated meter reading


Communications – Throughput (Daily) Network Throughput (daily reads)

Mat

uri

ty L

evel

5 X4 X3 X2 X1 X0 X

Value to SCE Basic meter reading Contract meter reading Measurement interval flexibility

Power Quality monitoring AMI extensibility in the future Flexibility in tariff design


Communications –Throughput (On-Demand)

Value to SCE Basic meter reading Contract meter reading Measurement interval flexibility

Power Quality monitoring AMI extensibility in the future More efficient customer service

Network Throughput (on-demand)

Mat

uri

ty L

evel

5 X4 X3 X2 X1 X0 X


Communications – WAN-NAN

WAN (Wide area network) and NAN (Neighborhood Area Network)

Mat

urity

Lev

el

5 X X X X X X X X X X X X4 X X X X X X X X X3 X X X X X X X2 X X X X1 X0 X

Value to SCE Basic meter reading Two-way communications with each

premise

High QoS AMI flexibility in the future Improved total cost of ownership

Documents

Vendor Briefing May 26, 2006