AMI Solutions from Joint Action Agencies

Transcription

1 AMI Solutions from Joint Action Agencies Marc Gerken, President / CEO Branndon Kelley, Chief Information Officer January 13, 2017

2 AMP History Development History 1971 AMP formed as not-for-profit corporation under Ohio Revised Code Chapter Private Letter Ruling permits tax-exempt financings on behalf of Members Industry Presence Members in Ohio (84), Pennsylvania (29), Kentucky (6), Michigan (6), Virginia (5), West Virginia (2), Indiana (1), Maryland (1) and Delaware (1 DEMEC with 9 members) Operations within two Regional Transmission Authorities Midcontinent Independent System Operator, Inc. (MISO) PJM Interconnection, LLC (PJM) Page 2

3 AMP Governance Corporate Governance Owned and governed by its 135 Members in 9 states Each State or Joint Action Agency with 5 or more members guaranteed a Board seat AMP Strengths Joint Action Stronger voice in the industry Buying power in the marketplace Projects Based Organization Members subscribe to projects of their choice Financial Strength $750 million Line of Credit to provide underlying support Page 3

4 The Digital Utility More load research for new rate designs Advanced Metering Distribution operations enhancements Mobile Workforce Demand Response Analytics How well are you meeting these needs? Page 4

5 The Challenge Public Power utility operators need an ever-growing set of new capabilities The bias for doing things internally Causes increased strain on resources Slows the pace of deployment Can Managed Services be a viable solution? Page 5

6 Conflicting Roles Enabling new capabilities requires skills and resources unfamiliar to traditional utility operators Information & Operational Technologies Business Intelligence Cyber Security IT Operations & Best Practices Assigning these roles to existing personnel? Page 6

7 AMP s AMI Project Common Hurdles AMP Members Faced Limited ability to explore the marketplace Managing relationships with a new group of vendors Supporting increasingly complex and integrated systems Hiring, training, and retaining skilled IT roles Rigidity of some vendor-hosted solutions Unplanned future expenses Dealing with cyber security requirements (CIP) Too small to leverage strategic relationships with partners Inexperience with negotiating IT contracts. 7 Page 7

8 AMP is redefining the Joint Action Agency Joint Action Agency history has been focused on collaboration to build economies of scale Power supply contracts Generating assets AMP s Strategic Plan is expanding that role Hosted Solutions is one of eight initiatives that AMP s Board has launched to help execute on its Vision & Mission Vision To be public power's leader in wholesale energy supply and value-added Member services. Mission To provide Members with the benefits of scale and expertise in providing and managing energy services. Page 8

9 AMP AMI Program Has full support of the AMP Board Over $1 million was put into Research and Development AMP s board of trustees has committed to making this program successful Information received from AMP s members and other utilities Solicited input from members that had already deployed AMI on what they would do differently Heard stories about failed deployments or post-deployment issues Program built to address member concerns, issues, and opportunities Both large and small members had concerns about the complexities of managing these types of systems Page 9

10 Branndon Kelley Chief Information Officer AMP S ADVANCED METERING PROGRAM Page 10

11 Technology Enablement Development of the necessary Information Technology hardware, software, and/or partnerships with third parties to support AMPs new services. Includes definition of hosted solution requirements based upon input from the Member Services Development initiative. Also includes planning for any system upgrades as driven by member base growth and member relations needs. AMP can leverage the power of scale in delivery of technology services for our members. Our goal is to expand services our members provide to their customers at a level that makes it affordable and achievable while eliminating the need for individual members to invest and maintain complex IT systems. --Branndon Kelley, Executive Sponsor, Hosted Solutions Team, Chief Information Officer Page 11

12 Why AMI for the Individual Utility? Public Power utility operators need an ever-growing set of new capabilities Customer access to usage information LED Street Lighting Control Distribution operations enhancements Volt/VAR Control Demand Response Analyzing data from operational systems Page 12

13 Utility Business Drivers for AMI Public Works Projects to address utility infrastructure Manual meter reading process constraints Handheld/drive-by equipment is aging Water meter modules near end-of-life (batteries) Stopped or under-registering meters Other technology deployments (LED street lighting control, GIS, etc.) Improve & reduce cost of customer service Surrounding utilities providing internet access to interval data Enhanced customer communication Enable remote connect/disconnect of electric service Support for emerging needs rates, distributed generation Distributed generation (e.g. solar) metering requirements Changes in rate design TOU, demand metering, seasonal rates Distribution grid management automation, Volt/VAR control Page 13

14 Advanced Metering Evolution - AMI Outage viewer Back Office Infrastructure Customer Portal Utility Portal MDM AMI Head-End Field Infrastructure Collectors Meters Back Haul Utility Owned Traditional On-Premise Billing System Page 14

15 Commercially Hosted Solutions Utility Systems Outage viewer Customer Portal Utility Portal MDM AMI Head-End Field Infrastructure Smart Meters Infrastructure & Applications provided as a Service Back Collectors Haul Billing System Page 15

16 Common Hurdles AMP Members Face Limited ability to explore the AMI marketplace Resource constraints potentially require engaging a consulting firm Managing relationships with a new group of vendors Reliance on vendors/distributors to interact with municipality s leadership Distributors help with this, but only with the vendors they represent Varying degrees of project management maturity among vendor/distributor AMI Deployments with on-premise technology Specialized employees for the deployment & support of IT systems Staff may be difficult to attract and retain for AMP member municipalities Consumes capital budgets on technology investments Vendor-hosted solutions Expertise deferred to vendors; impacted by industry consolidation Rigid, inflexible application suite Unplanned future expenses Page 16

17 Common Hurdles AMP Members Face Limited ability to explore the AMI marketplace Resource constraints potentially require engaging a consulting firm Managing relationships with a new group of vendors Reliance on vendors/distributors to interact with municipality s leadership Independent action = Distributors help with this, but only with the vendors they represent Varying degrees of project management maturity among vendor/distributor AMI Deployments with on-premise technology Lost economies of scale from Specialized employees for the deployment & support of IT systems Staff may be difficult to attract and retain for AMP member municipalities collaborative action Consumes capital budgets on technology investments Vendor-hosted solutions Expertise deferred to vendors; impacted by industry consolidation Rigid, inflexible application suite Unplanned future expenses Page 17

18 AMP Smart Grid Timeline 2009: Hired a resource to lead Smart Grid Initiative : Smart Grid Advisory Committee Formed, Research, Member Surveys, Workshops 2013: Built Business Case for AMP Hosting AMI Q3 2013: AMP Commissioned Leidos Study Q4 2014: Board decision to develop AMI Program 2015 Jan: Owner s Engineer Hired Feb: AMP Hosted Solutions Committee Formed Mar-Apr: RFI May: Pilot Member Workshop Jun-Dec: RFP 2016 Jan: Partners Selected Jun: Contracts Signed Sep: First Member Signed Page 18

19 Smart Grid Advisory Committee AMP Smart Grid Advisory Committee Formed to facilitate exchange of information among Members interested in smart grid technologies Common interest among members in advanced metering Leidos Engineering Study, 2014 Modeled several scenarios for members Each municipality deploying meters, networks, systems Each municipality using a commercial hosting provider Single hosting provider for all members AMP-developed hosting services for all members Determined that joint action among AMP members in excess of 85,000 meters provided members benefits in lower acquisition cost, sharing of more costly components and expertise Page 19

20 Owner s Engineer & Project Kickoff Project launched on January 6, 2015 Focus on simplifying AMI adoption for AMP members Hired Owner s Engineer/Project Manager George Bjelovuk 31-year veteran of the utility industry Led AEP s gridsmart SM program from 2007 to 2012 Utility consultant with Ernst & Young from 2013 to 2015 Pilot member utilities benefits Aggregating purchasing of equipment and mitigating the risks associated with local deployment of major technology components like Meter Data Management Systems Support business case and provide assistance with presentations to leadership, where required Provide marketing materials for customer communications Page 20

21 Member Outreach Phase First phase of project was to complete member outreach Identifying AMP members who had interest in moving forward collaboratively Target was to reach Leidos-forecasted 85,000 meter base Eleven Municipalities, 90,000+ meters Bryan, OH Berlin, MD Dover, OH Ephrata, PA Newton Falls, OH Painesville, OH Piqua, OH Tipp City, OH Seaford, DE Versailles, OH Zelienople, PA Page 21

22 RFI & RFP Process RFI issued to 23 vendors in Q ABB/Tropos GE Mueller Systems PrimeStone UMS Aclara Itron N-Dimension Sensus UtiliSmart Eaton ElectSolve L+G Leidos Nexgrid Oracle Siemens Silver Spring Wipro Elster MeterSense OSISoft Tantulus (Bolded vendors gave demonstrations) Pilot Member Workshop on May 13, 2015 Short list of nine Vendors selected for RFP RFP included detailed information for 10 AMP Member utility systems 90,000+ meters in scope RFP released, responses received, comparative analysis prepared and reviewed with initial members and AMP Board Page 22

23 Scoring Approach 0 to 4 Scale Completeness of product suite Meters, Networks, AMI-HE, MDM, Portals Visual reactions to software Flexibility Out-of-the-box functionality Demonstrated experience with JAAs and municipal utilities Capability to transition from hosted to on-premise Understanding of AMP Vision Underlying Technology Approach to Multi-tenancy 0 No Capability 1 Minimal capability 2 Some capability 3 Advanced capabiltiy 4 Superior Capabiliity Page 23

24 AMP AMI Project Vendor Selection In 2016 AMP selected Silver Spring Networks & ElectSolve as Vendor/Partners for the Advanced Metering Program Silver Spring Networks Superior AMI Communications Network availability & security Fully monitored network solution 7x24x365 Allows flexibility in meter selection Foundation for future requirements street lighting control, distribution automation, Volt/VAR Control ElectSolve Technology Solutions & Services Deep experience with working with municipal utility systems Extensive billing system & integration experience Hometown Connections Partner AMP s Board has approved the program and executed contracts with these vendors on June 3, 2016 Page 24

25 AMP s AMI System Architecture AMP Managed Systems Municipality Infrastructure AMP s Data Center (Electsolve MDM) OMS or other Integrations (optional) Customer Portal (optional) Base System, MDM & CIS Module Silver Spring Data Center AMI Head-End Wireless Network Meters Billing System Page 25

26 AMP s Standard AMI Architecture Joining AMP s AMI Program allows members to avoid investment in and management of AMI back office systems and technology Page 26 AMP s Managed Systems includes: Initial capital investment Capital refresh every five years Known Operating expenses (3% increase/year): Silver Spring Support Costs Silver Spring Hosting Charges AMP-SSN Connectivity ElectSolve Support Costs IT Infrastructure support costs Existing IT labor allocation New Program Labor Program Manager AMI Operator

27 AMP s Standard AMI Architecture Members incur one-time costs: Meters Wireless Network Field Equipment Installation, in required Billing System Integration Optional application licensing Customer Portal Wholesale/retail billing reconciliation OMS/GIS integration Project Management Member Infrastructure Wireless Network Meters Members incur ongoing expenses for: Connectivity to AMP Support costs for optional applications Billing System Page 27

28 The Importance of Cyber Security Effective Cyber Security is critical to the successful operation of AMI systems. These systems are different in many ways from traditional IT networks: The network scale is much larger than enterprise networks and larger in aggregate than the mobile phone space. Product lifetimes will be long (in some cases 20+ years) - technologies & policies will have to be adapted over time, often remotely. Assume all field devices have limited physical protection at best - reduce risk of wholesale attacks to retail attacks. Building on strongest open security techniques is a good bet. There are unique, differentiated security needs for various command and control operations on smart grid. Security platforms have to support multiple vendors that will integrate to each other. AMP s RFP asked each vendor to explain their approach to Cyber Security of these systems and followed up with Q&A. Responses varied widely. Page 28

29 Data & Event Analytics... Technology Driven Results.. Advanced Charting and Graphing Engineers can analyze operational data on the fly for different system configurations Transformer Load Analysis Identify over-under loaded Transformers Voltage Analysis Monitor and Alert Voltage Anomalies more quickly Data and Event Analysis Blinks, Tampers, Hot-Sockets, etc Service Loss Analysis Water Leaks, Losses Electric Line Losses.. Page 29

30 AMP Value Proposition Fully managed AMI-Headend and Meter Data Management System o Fully managed primary and Disaster Recovery site o Annual Disaster Recover and failover testing o Integrates to member CIS system. o Ongoing support of CIS integration included o Includes Utility Portal for operations o Support for additional modules (customer web portal) Advanced Cybersecurity, Intrusion Prevention, Data Encryption and monitoring of all systems. Member AMI Communications Network Monitored by SSN s Network Operations Center 24x7x365 o Vendor Service Level Agreement provides 99.5% read reliability for electric meters & 99% read reliability for water meters Future system and software upgrades Page 30

31 AMP Value Proposition No meter vendor lock-in Silver Spring Networks supports multiple meter manufacturers Economies of scale from collaborative procurement Dedicated staff to manage the system and issue resolution Program Manager Assists with business case development and presentations Coordinates member training on the system. Coordinates communications between Muni, AMP, ElectSolve and Silver Spring to provide a seamless experience AMI Operator Coordinate event reporting with members Schedule/coordinate workflows & reports to member field personnel. Access to AMP staff in IT, Finance & Legal departments Sharing of experiences and knowledge with other Members Participants gain the full benefits of Joint Action and Collaboration! Page 31

32 Marc Gerken, PE Chief Executive Officer SESSION WRAP-UP and Q&A Page 32

33 Long Term Goals AMI is just the beginning Members have expressed an interest in AMP helping them in other areas Future opportunities to expand the program Customer Information & Billing System Mapping & Geospatial applications SCADA Cyber Security Operations Monitoring Utility IT Infrastructure Support and Monitoring AMP would like to become the hosting provider of the municipal utility back office application suite and provide this as a service. (Utility Model / SAAS) Page 33

34 AMP is redefining the Joint Action Agency Joint Action Agency history has been focused on collaboration to build economies of scale Power supply contracts Generating assets AMP s Strategic Plan is expanding that role Hosted Solutions is one of eight initiatives that AMP s Board has launched to help execute on its Vision & Mission Vision To be public power's leader in wholesale energy supply and valueadded services. Mission To provide Members with the benefits of scale and expertise in providing and managing energy services. Page 34

35 Page 35 QUESTIONS?