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Billing, Metering CRM/CIS America 2004

Billing, Metering CRM/CIS America 2004. Transition Strategy: Manual Field Data Collection to AMR Implementation Chuck Session Manager, Cinergy Meter Reading. My Objectives Today. Cinergy Corporation overview Review current manual Cinergy Field Data collection options

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Billing, Metering CRM/CIS America 2004

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  1. Billing, Metering CRM/CIS America 2004 Transition Strategy: Manual Field Data Collection to AMR Implementation Chuck Session Manager, Cinergy Meter Reading

  2. My Objectives Today • Cinergy Corporation overview • Review current manual Cinergy Field Data collection options • Explain how PB ARC’s has been key to our Meter Route Management success • Discuss Cinergy’s staffing transition for Field Data Collection & Contractor performance expectations • Future Cinergy AMR technology Options

  3. Introduction Cinergy is a gas and electric utility serving 1.5 million electric customers and 500,000 thousand gas customers over a 25,000 thousand square mile area in Ohio, Kentucky and Indiana. Two operating companies (Cincinnati Gas and Electric and subsidiaries [East] and PSI Energy [West]) with two call centers (one union, one non-union). The centers receive approximately 3.7 million calls per year.

  4. Field Data Collection • Cinergy Meter Readers read over 24.7 million meters annually. • Within the I-275 urban beltway in Cincinnati, 408,000 (52%) of all meters are inside. In Northern Kentucky, over 79,000 (42%) are inside and 487,000 (37%) of Cinergy’s East Meter Reading customers have inside meters . • In Indiana, 99% of all customer meters are outside.

  5. Cinergy East Meter Location Summary

  6. The “Key” Room

  7. Meter Reading Customer Survey Results 2003

  8. Itron Data Cap Processing

  9. Cinergy Field Data Collection Options • Cycle Meter Read (includes Mobile AMR) • Gray Card • On Line Read • Succession Read (Customer on / off request) • Special Read (Customer appointment) • Kick Out / Next Day Read

  10. Mobile AMR Reads • Initial installation of 13,000 in 1996/97 for hard to read locations • Over 23,000 AMR meters installed in Ohio and Kentucky today • Installed in hard to access meter locations

  11. Gray Card / On Line Reads • Gray Card reads filled out by customers and returned to Cinergy for billing • Introduction of On-Line read option in 2002. 2003 was the first full year for application.

  12. Succession Reads • Cinergy East Meter Reading personnel read over 116,887 Succession Reads in 2003 • The number of Succession Reads completed by this meter reading group has increased each of the last 4 years and they continue to reduce their “cost per order.” • In 2004, this work group is expected to complete over 190,000 Succession Reads.

  13. East Succession Reads

  14. Succession Reads Percentage By Department

  15. Succession Reads AverageRead By Department

  16. Cinergy East Special Reads

  17. Cinergy East Kick Out /Next Day

  18. Criteria considered in the transition to Contract Meter Reading • Are there contract Meter Reading firms who want the business? • Do they have the organizational leadership to effectively manage this size project for Cinergy? • Can they do so and meet Cinergy’s performance expectations? • Can they do so cost competitively?

  19. Pilot of 187,000 customers July 2000 for one year based on a cost per read. Contractor responsible for uniforms, material and training. RFP for 3 year contract 7/01 – 6/04 with two successful bidders. Current contractors are reading over 500,000 meters Cinergy West. Performance metrics for % of meters read, accuracy, customer stewardship and safety. Financial penalties are in place in the event of non-performance. Indiana Contract Meter Reading

  20. Cinergy East In 1996 Cinergy East had 145 full time meter readers With the exception of 10 new hires (3rd quarter 2003 due to internal work shifted to meter reading) no full time meter readers have been hired since 1996. Today there are 97 FT and 83 PT meter readers. Cinergy West In 1996, Cinergy West had 110 full time meter readers. With the exception of 7 new hires (arbitration in 2001-2002), no full time meter reading personnel have been hired since 1995. Today there are 37 full time Cinergy and 60 contract meter readers. Cinergy Staffing Resources

  21. Indiana Contract Meter Reading Benefits • Meters are read on a competitive cost per read basis. • Contractors only get paid when the work is completed accurately and on time. • Contractors have demonstrated the ability to read meters effectively. (99.67% completion rate year end 2003 billing cycle). • Contractors are allowed 1 inaccurate read per 1,000 and must read 98% of all meters assigned to avoid financial penalty.

  22. Meter Route Management PB ARC’s • Cinergy invested in the Power Builder Automated Route Control System (PB ARC’s) licensed by DB Microware in 1996. • Aggressive implementation of PB ARC’s in Indiana in 1997. Initial reduction of 273 routes. • Adjusted routes using a benchmark of 6.5 hours of read time. • The PB ARC’s tool has enabled Cinergy to more effectively optimize staffing resources for the effective and efficient completion of meter routes.

  23. Meter Route Management cont….. Benefits • Time stamp capability of meter reads held in PB ARC’s provides an exact picture of route times and meter reader productivity. • Customer growth and route modifications can be more effectively controlled before they reach a critical stage. • PB ARC’s software enables the route analyst to complete time studies and resequencing of the routes more efficiently.

  24. Meter Route Management cont….. Benefits • Control meter route expansion due to customer growth. • Geographically organize meter reading routes to minimize unnecessary drive time. • Efficient utilization of existing staffing resources and cost effective planning for additional meter reading personnel • Meter routes in the west are 28 less than in 1996 despite annual customer growth in the last 7 years.

  25. Cinergy West Routes

  26. Manual Meter Reading to AMR Transition • Sooner rather than later technology will replace manual Field Data Collection • Cinergy customer base differences over their three state service territory may require a hybrid AMR technology for the most cost effective application. There is no “one solution fits all” technology fit for Cinergy today. • A conversion timeline for AMR technology installation is estimated to be 36 –48 months across the three state jurisdictions

  27. AMR Analysis • Cinergy has continued to evaluate potential AMR technology applications since 1995. • Currently fall into the “camp of limited deployment.” • Participate in various AMR pilots past and current. • Have not been able to find the AMR technology that meets our economic criteria for company-wide implementation. • Limited interest from residential mass market for services related to daily and hourly usage monitoring. • Looking at downstream business impacts (adjacencies to meter reading) for additional benefits.

  28. AMR Technology Under Consideration • Power Line Carrier (PLC) • Fixed Data Networks with a Radio Frequency (RF) • Internet Protocol (IP) applications • Mobile AMR solutions / Handheld AMR option

  29. Questions? chuck.session@cinergy.com

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