PG&E Advanced Metering Assessment for Residential Electric Customers. September 2, 2010
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1 PG&E Advanced Metering Assessment for Residential Electric Customers September 2, 2010
2 Structure Overview Deep subject matter expertise with proven delivery methodologies to address energy & utility companies transformation needs Smart Grid Distribution Operations and Automation SCADA and Energy Management Market Solutions Trading and Risk
3 Disclaimers Reasonable efforts performed to complete engagement No assurances that all issues were identified, or that future issues may not develop after assessment completion Impartial and independent evaluation Findings developed independently from CPUC and PG&E Results not shared with PG&E in advance
4 Assessment Scope Independently evaluate and address 3 questions regarding PG&E s Smart Meter system s ability to accurately measure, collect, calculate, and bill electric customer usage: 1. Does PG&E s SmartMeter TM system measure and bill electric usage accurately, both now and since PG&E s Smart Meter deployment began? 2. What factors contributed to Smart Meter high bill complaints? 3. How does PG&E s SmartMeter TM Program s past and current operational and deployment practices compare against the framework of industry best practices?
5 1. Does PG&E s SmartMeter TM system measure and bill electric usage accurately, both now and since PG&E s Smart Meter deployment began? PRESENT SINCE DEPLOYMENT Smart Meters are accurately recording electric usage Systems are correctly processing data & billing usage No systemic issues were found beyond exceptions already reported by PG&E Limited exceptions were identified but were not prevalent in deployed meters
6 2. What factors contributed to high bill complaints? Customer Usage Rates Customer Service Process Issues Smart meter deployment coincident with heat wave Other load increase coincident with smart meter installation Electromechanical meter degradation Rate increases amplified weather impact on usage Incorrectly applied rates Manual CARE renewal requirements Smart Meter education / skepticism PG&E complaint resolution did not provide Customer with relevant available data CPUC complaint resolution Extended manual reading of Smart Meters Billing quality control Installation challenges
7 3. How does PG&E s SmartMeter TM program s past and current operational and deployment practices compare against the framework of industry best practices? Historical Current 10 Gaps in Best Practices Communication backbone installation timing 2 0 Manual meter read transition Manufacturing quality Installation standards Meter equipment safety Meter deployment MDM interfaces Data validation Account billing Complaint troubleshooting Billing quality control Complaint troubleshooting
8 Assessment Focus Areas Laboratory Meter Testing Field Meter Testing End-to-end Systems Testing High Bill Complaint Evaluation Best Practices for Smart Meters Security Assessment 156 meters 6 meters - environmental tests 611 Smart Meters 147 electromechanical meters 5 laboratory-controlled meters 4 field complaint customers Monitored over 1 month bill cycle 1,378 complaints analyzed 97,000 records historical usage 20 customer interviews 8 practice areas, 152 audit items 3 peer industry experts consensus Requirements per AMI-SEC best practices standard
9 METER Test Results Laboratory 100% passed accuracy test 156 factory shipped meters tested 6 environmental tested Field 100% Smart Meters passed accuracy testing 611 Field tested 95.92% Electromechanical passed accuracy testing 147 field tested 6 failed End to End System 100% passed meter accuracy, communications, estimation routines, billing systems 5 laboratorysimulated event Smart Meters 4 field Smart Meter customers
10 OTHER Results High Bill Complaints 1,378 Smart Meter historical complaints Usage correlation between 2006 and 2009 weather Cancel/re-bill impact 20 Customer interviews (biased sample) Unsatisfied with PG&E customer service and complaint resolution process Best Practices In place or being implemented with limited exceptions Meter manufacturing quality control Meter installation standards Meter equipment safety Meter deployment Meter Data Management interfaces Validating, Editing and Estimating and Editing for monthly and interval data Account billing High bill complaint troubleshooting Security Assessment Cyber security framework was developed meeting Smart Grid industry requirements Document review Security Executive interviews
11 Conclusion AMI system deployed by PG&E appeared: Consistent with industry standards Accurate from meter data flow to billing Weak focus on customer service Some PG&E practices found to be partially noncompliant relative to industry best practices
12 THANK YOU STACEY WOOD THE STRUCTURE GROUP
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