Intelligent Grid Strategy. Customer Value Operational Excellence Reliability
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1 Intelligent Grid Strategy Customer Value Operational Excellence Reliability April 4,
2 Today s discussion Overview of District s Intelligent Grid vision Industry trends Update on Advanced Two-way Metering & Business Case Customer Information System Update & Advanced Two-way Metering Customer Engagement Next Steps No decisions today, 2
3 How we define an Intelligent Grid: Leveraging information & technology to bring customer value and reliable service. This includes Advanced Two-way Metering (AMI), Outage Management (OMS), Meter Date Management (MDM), and Customer Information Systems (CIS) We are building the intelligence of our grid at the speed of value to our customers. Customer Value Op Excellence System Reliability
4 Proven Customer Benefits Advanced Two-way Metering Reduces manual meter reading and carbon footprint Provides near real time usage data to customers Ensures metering and billing accuracy Reduces need to access customer property Improves outage notification to customers Provides Customer self-serve dashboard functionality Gives customers ability to opt-out 4
5 Chelan PUD s Intelligent Grid Plan Technology Goals Operational Efficiencies Reliability Improvements Customer Value Water AMR Drive By Electrical Meter Replacements Technology Path Forward Customer Information System Replacement & Enhancements Meter Data Management Development OT/IT Systems Advanced Two-Way Metering Infrastructure Customer Portal Development Opening the opportunities to leverage meter data for the business intelligence Reducing meter reading costs Realizing near-real time system conditions Enhanced engineering modeling Offering customers choices Advancing Two- way Metering & Outage Mgmt Remote on/off Voltage monitoring Outage notification PUD Fiber Network 5 Advanced Two Way Metering Technology (a meshed network approach) 5
6 Advanced Two-way Metering Nation wide ~ 57% Deployed Deployed AMI Planning AMI Deployed less than 15% of end-users Deployed between 15% to 50% of end-users Washington State ~ 15% to 50% deployed Deployed more than 50% of end-users 6
7 Chelan PUD Current Status Hired Utiliworks to assist District staff in developing a two-way metering business case Evaluated the Customer Information System in relation to two-way metering business readiness Decision was made to replace the CIS and investigate Meter Data Management prior to acquiring and implementing a two-way metering system 7
8 The Advanced Two-Way Metering Business Case was developed based on the overarching goals and objectives related to: Improve Customer Service Enhance Revenue Improve Reliability Improve Safety Improve Operational Excellence through efficiencies Positive return on investment 8
9 Business Case Findings Scenarios Net Present Value Int. Rate of Return Payback Years Estimated Capital Costs Electric Only AMI and MDMS $4,325, % 12 $13,381,000 Electric and Water AMI and MDMS $3,305, % 13 $15,449,000 Electric Only AMI, MDMS and Prepay $5,183, % 12 $13,713,000 Electric Only AMI, MDMS and CVR $22,858, % 9 $13,783,000 Electric Only AMI, MDMS and Demand Response $2,982, % 14 $15,061,000 AMI Automated Two-way Metering MDMS Meter Data Management System CVR Conservation Voltage Reduction 9
10 Business Case Summary System/Program Advanced Metering Infrastructure (AMI) All Electric Meters Automate meter reading, support near real-time outage detection, remote disconnect electric meters, interval data Meter Data Management System (MDMS) Manage the large volume of usage data, provide validated billing determinants to the CIS, provide reports, outage maps and user-friendly interface for data analysis Customer Web Portal Provide Customers access to historical consumption data, alerts and push notifications The District should deploy the above technologies within 2-3 years to maximize the benefits gained by the above systems. 10
11 Example: Current Process Final read Customer Call-in Customer Rep 9. Generate Field Order 8. Schedule Field order 7. Truck Role 6. 1 to 5 days, 4 people, Truck role Final Bill To Customer Generate Final bill Process Field order Physical On-sight Read Process with Advanced Two-way Meters Just Minutes, 1 person Customer Call-in Customer Rep Acquire Remote Read on-demand Finalize Amount due 11
12 Customer Access to Real-Time Information 12
13 Main Drivers In Customer Resistance to Advanced Twoway Meters APPA survey results (n=25 Utility Participants) Health Impacts Data Privacy Data Security Value/Cost Safe Operations Of Meter Accuracy of Meter Data 0 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 13
14 What Our Customer Research Told Us About the Advanced Two-way Metering Proposal 1 in 4 customers have heard about it. 3 in 5 thought is was a good idea. 1 in 5 (69 people) were opposed, when asked why? Nearly half it was an issue of cost or waste of money Another 28% didn t have enough information 14
15 15
16 Advanced Two-way Metering Key actions 2016 Support the CIS replacement and provisioning Establish a customer involvement topic team - Q1-Q2 Cross county representation / multi interests / collaborate on issues to address Develop a customer outreach plan Q2 Report on results of customer outreach plan Q3 Complete Technology assessment and business readiness Q4 *Next go-no go decision, 2017 as part of 2018 budget process 16
17 Questions? 17 17
18 End 18 18
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