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AEP-SWEPCO Arkansas

Electricity Demand Response and Advanced Metering for Integrated Utilities Arkansas Public Service Commission Lonni Dieck AEP May 24, 2007. AEP-SWEPCO Arkansas. SWEPCO has TOU rate for industrial customers having loads of 800 kW or greater

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AEP-SWEPCO Arkansas

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  1. Electricity Demand Responseand Advanced Metering for Integrated UtilitiesArkansas Public Service CommissionLonni DieckAEPMay 24, 2007

  2. AEP-SWEPCO Arkansas • SWEPCO has TOU rate for industrial customers having loads of 800 kW or greater • SWEPCO also offers a curtailable service rider for customers who contract for not less than 1000 kW • Limited customer participation

  3. Existing AEP DSM Tariff Offerings(excluding interruptible offerings)

  4. AMI Benefits • Offer customer options • Demand response – lower peak through potential for load control • Pre-pay metering • Improved customer service • Reduction of estimated bills, First call resolution • Outage & restoration reporting from meters • Better customer satisfaction, reduced outage time & costs • Assist improvements in reliability • Improved circuit information to better target preventive maintenance spending • Increased service quality • Voltage data on all meters, transformer loading • Assists in energy theft and tamper detection • Reduce field visits • Read ins/outs, remote reconnects/disconnects, etc.

  5. AMI Challenges • AMI not only requires sophisticated metering with two-way capabilities, but also involves a substantial infrastructure investment that includes costs of implementation, billing, IT system modifications, communication costs, etc. • AMI technology is in a state of evolution. • AEP/SWEPCO currently evaluating available technologies • Protocols and open standards are still being developed • Implementation of AMI must be cost-effective: • Potentially more applicable for urban areas/ not as well suited for sparse installations • More cost-effective at large-scale deployment due to economies of scale • Customer acceptance is an unknown • AMI is a useful tool, but is not an alternative to the expansion of transmission and the construction of the generation facilities needed in the future. • DR programs enabled by AMI, may postpone investments in transmission and generation facilities.

  6. Cost Recovery • Regulatory cost recovery of AMI and associated infrastructure needs is crucial. • Must recognize all costs, including implementation, billing, IT system modifications, communication costs, etc. • Sharing costs and benefits of AMI between participants and non-participants is a issue to be resolved.

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