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AMI Presentation. Bernie Neenan Technical Executive City Light Review Panel Meeting January 31, 2012. AMI Benefits. Q1: What are the tangible benefits that drive utilities’ decisions to launch AMI ?. Benefits Spectrum . Hard. Soft. Meter Read Cost. Shorter Outages. Low.
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AMI Presentation Bernie NeenanTechnical Executive City Light Review Panel MeetingJanuary 31, 2012
AMI Benefits Q1: What are the tangible benefits that drive utilities’ decisions to launch AMI? Benefits Spectrum Hard Soft Meter Read Cost Shorter Outages Low Back Office Billing Costs Faster Dispute Resolution Connect/ Disconnect Measurement Uncertainty Regional Economic Benefits Bill Savings –Demand Response Revenue Integrity Environmental Benefits – DR Bill Savings – Feedback High National Security Overall Customer Satisfaction
Benefits Attributed to Smart Metering – First Wave of Analyses (2008)
Benefits Attributed to Smart Metering – First Wave of Analyses (2008) On Average, 34% of Attributed Benefits are Societal
AMI Technology Maturity Q2: How has the technology matured in the past several years? • Many AMI provider choices • EPRI tracks 26 different companies regularly • Some have many years of 2-way communication system experience, others are new entrants applications • Solid state metering is quite advanced • Commitments to production capacity • Communication system still evolving • Latencies sometimes longer than expected • Throughput l at times lower than expected • Early on in provision of back office services • Strong effort underway to achieve plug and play Choices and experience are expanding Meters more mature than communications systems Complex data management system at early stage of deployment
Phased Installation Q3: Are there advantages to phasing, either through technology deployment or starting with a particular customer classes? • “A phased and constantly monitored approach to AMI rollout • Allows moving forward with provisions to adjust as circumstances become more certain • Fosters performance gathering and verification of benefits along the way • Limits technology obsolescence risks • Takes advantage of the collective, large-scale experiences of others • Better understanding of complementary of AMI with other Smart Grid investments • But, scale and scope of AMI investments and operation favor all or nothing investment decisions • Communication network is the backbone
Cost of a Wait and See Strategy Q4: What are the “costs” to a utility of not proceeding in the next 6 years with a move toward automated 2-way communication with our customers? • A comprehensive and thoughtful business cases will identify the costs of waiting • Some considerations • How fast would the investment pay for itself? • In terms of hard benefits • In terms of incremental soft benefits • Difficult to generalize (lessons learned) from utilities who have recently deployed AMI • Some have recent AMR investments • Some driven by larger considerations • Some have especially favorable circumstances
Who is Installing AMI? Q5: What % of large urban utilities have launched or will launch AMI deployment in the next few years? • EPRI estimates that 150 million residential electric meters are in use • About 60% are electromechanical (mostly read the dial values) • About 40% are AMR (drive-by electronic reading) • About 6-% are AMI (Two-way communication to read and program) • Important trends • Electromechanically meters have a very long lifetime (100 years) • They are being replaced with solid state meters with a lifetime of ~15 years. • Ceiling on technology and economic obsolescence risk • About 6% of meters (* million) are AMI today • 40 million planned by 2015 References: http://www.coincident.com/#visualization (tracks AMI installation intentions and realizations)
