Meter Reader Working Group

1. Meter Reader Working Group Sub-Hourly Time & Cost Estimate July 10, 2014 Presentation – NEPOOL Market’s Committee

2. Sub-Hourly Metering –Business Requirements for RQM • 5-Minute Revenue Quality Metering for all Generation and External Tie Lines • ARD & DARD no carve out of costs provided from the one HP AMR • Load settlement will be hourly – costs estimates not included • Report to ISO-NE within 37 hours both 5 minute and hourly data for Generators and External Tie Lines • 37 hour deadline remains unchanged for Supplier Loads, Capacity Tags, Tie Lines • 5-Minute RQM roll up to hourly values for hourly load settlement • Differences will result in unmetered loads • Records Retention • Store 5 Minute RQM data Current Year +6

3. Sub-Hourly Metering Implementation Considerations • Metering • Who pays for meter upgrades and reprogramming costs? • Determine meter storage capability – hourly metering storage 30 days • Lead time to purchase and install new metering or reprogram existing metering • Determine if all Generators are required to have sub-hourly metering capability • Generators who self report are not included in MRWG time & cost estimate

4. Sub-Hourly Metering Implementation Considerations • Risks Identified • Cost Risk: Costs must be carefully considered • Full recovery of all implementation and ongoing costs must be assured to all meter readers • IT Resource Risk: programmers conflicted with other mandated projects • Settlement Risk: can all the new 5 minute reporting be done within existing deadlines for daily and month-end resettlement periods? • Unmetered Load Risk: 5 minute data reconciling to hourly values • Meter Risk: obtaining new meters and/or reprogramming existing meters, significant time & resources • Staffing Risk: additional staffing requirements needed to support additional load reporting responsibility • Generators that self report will need to provide 5 minute and hourly values to HP AMR by the 8:00 a.m. deadline

5. Sub-Hourly Metering Implementation Considerations • Settlement System • Who pays for Settlement System upgrades? • Settlement System performance time unknown at this time, may impact deadlines • Consultants needed to redesign and reprogram Settlement Systems, significant testing to ensure system working as designed • Additional staffing needed to run Settlement System due to added complexities • Expertise/resources to scope and implement new system while performing existing settlement

6. Settlement Process Ex #1 Losses & Ties Hourly System Metering Reprogram or Gen/Tie Meter Hourly Values ISO 5 Min System Metering New Meter 5-Min Values Load Settlement Black- Existing Process Red – New Process Load Settlement system – separate from creation of system load

7. Settlement Process Ex #2 Losses & Ties ISO Load Settlement Reprogram or Gen/Tie Meter Hourly Values New Meter Load Settlement system used to create system load and performs function to allocate load to suppliers within 1 or more metering domains. 5 minute data may roll up within Settlement System. Verification of data. 5-Min Values Black- Existing Process Red – New Process

8. Time & Cost Estimate Caveats • Estimated costs – high level and will change if/when HP AMR directed to move forward • Outside vendors needed to develop design documents and provide true cost estimates • Actual hardware/software upgrades or replacements unknown at this time • HP AMR cannot move forward without assurance of cost recovery • One meter reader currently has no generation • Future changes would result in additional costs • Same cost recovery issues identified would apply

9. Time & Cost Estimate Figures based on estimates provided by 11 HP AMR, 10 with generation & costs, 1 without generation or cost. * The non-binding completion time estimate is 3 years after the start of work.  One meter reader reported that the start of work is not expected to be feasible for 4 1/2 years.

10. MRWG – Sub Hourly Metering Questions??