BC Hydro writes in compliance with Commission Order No. G-67-10, to provide its Report.
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1 Tom A. Loski Chief Regulatory Officer Phone: Fax: November 0, 05 Ms. Erica Hamilton Commission Secretary British Columbia Utilities Commission Sixth Floor 900 Howe Street Vancouver, BC V6Z N3 Dear Ms. Hamilton: RE: British Columbia Utilities Commission (BCUC or Commission) British Columbia Hydro and Power Authority (BC Hydro) Smart Metering & Infrastructure (SMI) Program Quarterly Update Report No. July to September 05 (Report) BC Hydro writes in compliance with Commission Order No. G-67-0, to provide its Report. For further information, please contact Geoff Higgins at or by at Yours sincerely, Original signed Tom Loski Chief Regulatory Officer st/rh Enclosure Copy to: BCUC Project No (Fiscal 0 to Fiscal 04 Revenue Requirements Application) Registered Intervener Distribution List. British Columbia Hydro and Power Authority, 333 Dunsmuir Street, Vancouver BC V6B 5R3
2 Quarterly Update Report No. F06 Second Quarter July 05 to September 05
3 Table of Contents Introduction... Meter Choices Program... 3 Project Status Project Schedule Project Costs: F06 Q and Program to Date... 0 List of Tables Table Meter Choices Program Participation Breakdown As of September 30, Table Project Schedule F06 Q... 5 Table 3 Project Schedule F06 Q Table 4 Customer Mass Meter Deployment June 0 Schedule and Actuals... 9 Table 5 SMI Program Operating and Capital Expenditures F06 Q and Forecast at Completion... 0 Table 6 SMI Program Operating and Capital Expenditures F06 Year to Date... Table 7 SMI Program Operating and Capital Expenditures SMI Program to Date... Table 8 SMI Program Operating and Capital Expenditures by SMI Program Component F06 Q... Table 9 SMI Program Operating and Capital Expenditures by SMI Program Component F06 Year to Date... 3 Table 0 SMI Program Operating and Capital Expenditures by SMI Program Component SMI Program to Date and Forecast at Completion of Program... 4 Appendices Appendix A SMI Program Contracts and Commitments Executed in F06 Q Page i
4 Introduction This Smart Metering & Infrastructure (SMI) Quarterly Report No. covers the Second Quarter of Fiscal 06 (F06 Q), the period from July, 05 to September 30, 05 and is submitted in accordance with Directive 6 of Commission Order No. G Program expenditures are categorized as identified in Directive 4 of Commission Order No. G As set out in BC Hydro's letter to the Commission dated March 8, 0 regarding SMI Quarterly Report No. 3, Table 5 and Table 0 include estimated total SMI Program expenditures at the completion of the program. In accordance with Directive 5 of Commission Order No. G-5-, a description and value of contracts and commitments related to the SMI Program undertaken during F06 Q is provided in Appendix A. This report also identifies the number of smart meters in the field and the number of remaining smart meter installs, both as of September 30, 05. Additional tables which identify total program expenditures to date are also included. This report also identifies the level of participation in the Meter Choices Program as of September 30, 05. BC Hydro's activities with respect to the SMI Program in F009 and F00 focused on foundational program elements, such as meter system technologies and information technology requirements. In F0, BC Hydro's SMI Program activities focused on the design, issuance and completion of procurement processes for four primary work packages, and the award of major contracts that were on the critical path for the deployment of metering infrastructure for the SMI Program. SMI Program procurement activities continued in F0, and focused on the development of the theft detection solution components including Distribution System Metering Devices (DSMD), and the Energy Analytics Solution (EAS) theft analytics software. BC Hydro's SMI Program activities in F03 included the completion of mass deployment of smart meters, the continued installation of telecommunications infrastructure and implementation of related information systems, procurement processes related to DSMD and the EAS, and the field testing Page
5 and deployment of DSMD. In F04, program activities focused on the procurement of DSMD, the development of the EAS, telecommunications network optimization, implementation of the Meter Choices Program, and the installation of smart meters that were not included as part of the mass deployment. In F05 SMI Program activities focused on completing the network optimization and the installation of telecommunications infrastructure, migrating the meters and the network to a more advanced networking protocol (IPv6), expanding on the EAS capabilities, and implementation of the DSMD (transformer and feeder meters) and their associated applications. In F06 SMI Program activities are focusing on completing the network optimization and the installation of telecommunications infrastructure, migrating the meters and the network to IPv6, introducing Energy Balancing capabilities across distribution feeders supported by Supervisory Control and Data Acquisition (SCADA) devices and Check Meters (distribution equipment) and their associated applications Meter Choices Program On July 8, 03, the Minister of Energy and Mines announced that in response to public concerns, BC Hydro would offer new options for customers who delayed their smart meter installation. On September 5, 03, the Government of British Columbia issued Direction No. 4 providing direction to the Commission with respect to implementing Government policy. On October 7, 03 BC Hydro filed its Application for approval of charges related to the Meter Choices Program, offering eligible customers an installation of a standard smart meter at no cost, or an installation of a radio-off meter, or the existing legacy meter at the premises for a fee approved by the Commission. On April 5, 04, the Commission issued Order No. G-59-4 and set the charges related to the Meter Choices Program on a permanent basis. Page
6 On July 3, 04, in accordance with the updated tariff approved by the Commission on July, 04, BC Hydro applied the missed read credit adjustment including interest to the accounts of Meter Choices Program customers that had estimated scheduled readings from the start of the Meter Choices Program to July 30, 04. The composition of Meter Choices Program participants as of September 30, 05 is identified in Table. 7 8 Table Meter Choices Program Participation Breakdown As of September 30, 05 Option Number of Accounts Legacy Meter 3,50 Selected Radio-off 597 Total 3, All BC Hydro electricity meters are required to have a valid Measurement Canada accuracy seal. In 04, BC Hydro was required, under Measurement Canada Regulations, to exchange 0,700 Meter Choices customers legacy meters because the accuracy seal had expired. These meters must be replaced by a meter with a valid Measurement Canada seal. BC Hydro sent letters to customers explaining why the BC Hydro legacy meter at their premises was being replaced with another legacy meter. Of these customers, approximately,600 refused to permit BC Hydro to exchange the time expired meter at their premises. BC Hydro is continuing to work with these customers and as of September 30, 05, of the approximately,600 customers who refused access,,45 customers have had their meter replaced. Out of the remaining,85 customers, 485 have consented to replacement of the legacy meter with another legacy meter, and 700 customers still require a resolution. In late March 05, an additional,30 letters were sent to customers informing them that the Measurement Canada accuracy seal on the legacy meters at their premises would expire in 05 and require meter exchange. Of these, Page 3
7 customers were informed that because the stock of legacy meters for their service type has been exhausted, a radio-off meter or a smart meter at the Customer s election will need to be installed. As of September 30, 05, of the,30 customers to whom letters were sent, 70 customers have had the meter on their premises exchanged, 50 work orders have been issued to replace legacy meters with smart meters, 5 work orders have been issued to replace legacy meters with radio off meters, and 35 legacy meters still require meter exchange with another legacy meter. The Measurement Canada accuracy seals of all legacy meters remaining in service will expire in subsequent years through 0, at which point all legacy meters will have expired seals and require replacement Project Status During F06 Q, BC Hydro took the following steps to advance and implement the SMI Program: Continued deployment of customer meters and telecom equipment; Continued transition of customers to automated billing; Continued telecom network optimization; Continued work related to the Meter Choices Program including exchanges of legacy meters with expired seals; Completed development of the meter configuration management tool; Implemented the IPv6 advanced network protocol; Implemented Data Lake (data storage and processing) infrastructure and check-meters information technology; Continued development and testing of the EAS; Page 4
8 Continued integration activities of SCADA capable devices; and Continued development of Disaster Recovery Capability Project Schedule Table shows the status of the major activities in F06 Q as reported in F06 Q Quarterly Report No.. 6 Table Project Schedule F06 Q Date Activity July 05 In Field/Over the Air Meter Mitigation Network Stability Continue Network Stabilization and Optimization Upgrade of Automated Data Collection System (ADCS), Meter Data Management System (MDMS) and Network Management System (NMS) to new software versions Operational Insights Requirements and Design Meter Choices Program: Install Radio Off & Smart Meters SCADA Recloser Reconfiguration SCADA Infrastructure and Reclosers Field Upgrades SCADA Relay Resolution Reconfiguration Design Check Meter Information Technology Systems Build Check Meter Information Technology Systems Check Meter Device Testing Test EAS b (SCADA and Check Meters) Data Lake Build and Testing SCADA, Check Meters and MDMS Disaster Recovery Capability Network Failover Design Advanced Telecom: WiMAX Complete Complete August 05 In Field/Over the Air Meter Mitigation Network Stability Continue Network Stabilization and Optimization Upgrade of ADCS, MDMS and NMS to new software versions Operational Insights Build Meter Choices Program: Install Radio Off & Smart Meters SCADA Recloser Reconfiguration SCADA Infrastructure and Reclosers Field Upgrades SCADA Relay Resolution Reconfiguration Build Check Meter Information Technology Systems Commenced Complete Page 5
9 Date Activity Test Check Meter Information Technology Systems Check Meter Device Testing Test EAS b (SCADA and Check Meters) Data Lake Deployment Complete Disaster Recovery Capability Failover Network Testing Commenced Advanced Telecom: WiMAX September 05 In Field/Over the Air Meter Mitigation Network Stability Continue Network Stabilization and Optimization Upgrade of ADCS, MDMS and NMS to new software versions Operational Insights Build Meter Choices Program: Install Radio Off & Smart Meters SCADA Recloser Reconfiguration SCADA Infrastructure and Reclosers Field Upgrades SCADA Relay Resolution Reconfiguration Test Check Meter Information Technology Systems Complete Deploy Check Meter Information Technology Systems Complete Check Meter Device Testing and Soft Deployment EAS b (SCADA and Check Meters) Technical Deployment Commenced Disaster Recovery Capability Failover Network Testing Advanced Telecom: WiMAX Table 3 shows the major activities included in the project schedule for the third quarter of F06. 3 Table 3 Project Schedule F06 Q3 Date October 05 Activity In Field/Over the Air Meter Mitigation Network Stability Continue Network Stabilization and Optimization Upgrade of ADCS, MDMS and NMS to new software versions Operational Insights Build Meter Choices Program: Install Radio Off & Smart Meters SCADA Recloser Reconfiguration SCADA Infrastructure and Reclosers Field Upgrades SCADA Relay Resolution Reconfiguration Check Meter Device Testing and Soft Deployment EAS b (SCADA and Check Meters) Functional Deployment Page 6
10 Date November 05 December 05 Activity Disaster Recovery Capability Failover Network Testing Advanced Telecom: WiMAX In Field/Over the Air Meter Mitigation Network Stability Continue Network Stabilization and Optimization Operational Insights Build Meter Choices Program: Install Radio Off & Smart Meters Itron Cellular Solution Meter Deployment SCADA Recloser Reconfiguration SCADA Infrastructure and Reclosers Field Upgrades SCADA Relay Resolution Reconfiguration Check Meter Device Testing and Soft Deployment EAS b (SCADA and Check Meters) advanced deployment Disaster Recovery Capability Failover Network Testing Advanced Telecom: WiMAX In Field/Over the Air Meter Mitigation Network Stability Continue Network Stabilization and Optimization Operational Insights Testing and Deployment Meter Choices Program: Install Radio Off & Smart Meters Itron Cellular Solution Meter Deployment SCADA Recloser Reconfiguration SCADA Infrastructure and Reclosers Field Upgrades SCADA Relay Resolution Reconfiguration Check Meter Device Deployment Disaster Recovery Capability Production Turnover Meter deployment continued throughout F06 Q, increasing the total number of smart meters installed by 8,05 during the quarter, none of which were installed by Corix, as shown in Table 4. On September 30, 05, there were,98,706 smart meters in the field, and 3,370 conventional meters remaining in the field (excluding 3,50 legacy meters remaining under the Meter Choices Program). During the second quarter of F06, five Field Area Network (FAN) collectors (Cisco Connected Grid Routers) were removed (after review of meter performance and Page 7
11 business criteria), bringing the total number installed to,850 by the end of F06 Q. Six Range Extenders were installed during the quarter, bringing the total number in the field at the end of the quarter to 5,4. Small numbers of FAN collectors and range extenders will be installed as part of the optimization of the telecom network which is currently underway and is expected to continue through F06. Page 8
12 Table 4 Customer Mass Meter Deployment June 0 Schedule and Actuals Corix Installations (June 0 Plan) Region Total Meters Fiscal 0 Fiscal 03 Fiscal 04 Fiscal 05 Fiscal 06 Q Q3 Q4 Q Q Q3 Q4 Q Q Q3 Q4 Q Q Q3 Q4 Q Q Total Corix Installations (June 0 Plan) Lower Mainland South 444,5 5,54 7,90 7,050 3,63 4,70-444,5 North Interior 04,367 6,63,4 4,9 3,5 7,979-04,367 North Coast 4,43 3,65,05 5,7, ,43 Vancouver Island 387,895 6,765 76,9 80,599 8,660 77,68 45,4 387,895 Lower Mainland North (Metro) 63,6 4,875 35,68 5,653 54,563 34,737 3,0 63,6 368,3 4,875 95,8 07,867 68,404 7,35 0, ,3 38,06-0,000 8, ,06 83, ,000 0,534 83,534 78, ,580 6, ,9 4, ,88 4-4,50 8,975-8, ,975,44 -, ,44 South Interior 9,966-30,44 3,8 38,87 66,637 3,933 9,966 Kootenay 54, ,803 3,34 6,3 54,438 Planned Corix Installations (June 0 Plan),848,94,60 4,960 43,586 49, ,64 06,460,848,94 To End of Q F06 Actual Corix Installations,769,69 6,583 4,563 45, ,34 6,57 70,307 6,9 3,48 6 4,54 0,07 6, ,769,69 Actual BC Hydro Installations 59,077 ** Total Smart Meter Installations,98,706 Conventional Meters Remaining in Field (Excl. Meter Choices Program) 3,370 * Revised figure. Page 9
13 5 Project Costs: F06 Q and Program to Date Excluding contingency, which has been allocated to planned expenditures for F06 Q, actual operating expenditures were $0.6 million less than planned during F06 Q. Similarly, actual capital expenditures during F06 Q are less than plan by $6. million primarily due to delays in implementation activities to later in F06. Forecast operating and capital expenditures at the completion of the program have been adjusted downward from $860.6 million to $848.7 million. The reduction in forecast reflects $.9 million savings in Smart Grid solution components. Operating and capital expenditures related to the SMI Program incurred by BC Hydro in F06 Q and for the SMI Program to date are shown in Table 5, Table 6 and Table 7 respectively. Table 5 SMI Program Operating and Capital Expenditures F06 Q and Forecast at Completion Operating Expenditures Capital Expenditures Forecast at Completion ($) ($ million) Actual Plan Variance Actual Plan Variance Operating Capital Labour (0.) Consultants and Contractors Materials/Other (0.5) (.5) (8.) Interest n/a n/a n/a (0.) n/a.0 Sub-total SMI Program Interest on Deferral n/a n/a n/a n/a n/a n/a n/a n/a Total Page 0
14 Table 6 SMI Program Operating and Capital Expenditures F06 Year to Date Operating Expenditures Capital Expenditures ($ million) Actual Plan Variance Actual Plan Variance Labour (0.3) Consultants and Contractors Materials/Other (.9) (5.8) Interest n/a n/a n/a Sub-total SMI Program Interest on Deferral n/a n/a n/a n/a n/a n/a Total Table 7 SMI Program Operating and Capital Expenditures SMI Program to Date ($ million) Operating Expenditures Capital Expenditures Total Expenditures Labour Consultants and Contractors Materials/Other (8.4) Interest n/a.5.5 Sub-total SMI Program Interest on Deferral 7.5 n/a 7.5 Total Operating and capital expenditures by program component for F06 Q, F06 Year to Date, and SMI Program to date are presented in Table 8, Table 9 and Table 0 respectively. In Directive No. 4 of Commission Order No. G-67-0, BC Hydro was directed to report SMI Program costs broken down by the components specified therein. Page
15 Table 8 SMI Program Operating and Capital Expenditures by SMI Program Component F06 Q Operating Expenditures Capital Expenditures ($ million) Actual Plan Variance Actual Plan Variance Smart Meters (0.5) Telecommunications Systems (0.9) Meter Data Management System Solution Integration (0.) In-Home Display/In-Home Feedback (0.) Conservation Based Rates Smart Grid Other Procurement Program Management Facilities (0.) Finance Human Resources Contract Management IT Infrastructure Security Communications & Stakeholder Engagement Regulatory Transition to Operations Interest During Construction Total Other Contingency Total Smart Grid includes theft detection and other advanced telecom infrastructure related expenditures. Interest during construction is included in actual expenditures for each expenditure category, but not included in planned expenditures by category. Therefore, a separate line item is included in Other. Most of the variance in capital expenditures for F06 Q in Table 8 relates to the postponement of the implementation activities to later in F06. Page
16 Table 9 SMI Program Operating and Capital Expenditures by SMI Program Component F06 Year to Date Operating Expenditures Capital Expenditures ($ million) Actual Plan Variance Actual Plan Variance Smart Meters (0.5) (0.4) (0.3) Telecommunications Systems Meter Data Management System (.0) Solution Integration (0.3) In-Home Display/In-Home Feedback Conservation Based Rates Smart Grid Other Procurement Program Management Facilities (0.3) Finance Human Resources Contract Management IT Infrastructure Security Communication & Stakeholder Engagement Regulatory Transition to Operations Interest During Construction Total Other Contingency Total Smart Grid includes theft detection and other advanced telecom infrastructure related expenditures. Interest during construction is included in actual expenditures for each expenditure category, but not included in planned expenditures by category. Therefore, a separate line item is included in Other. Page 3
17 Table 0 SMI Program Operating and Capital Expenditures by SMI Program Component SMI Program to Date and Forecast at Completion of Program ($ million) Operating Expenditures Actual Expenditures Program to Date Capital Expenditures Total Expenditures Forecast Expenditures - Completion of Program Operating Capital Smart Meters Telecommunications Systems Meter Data Management System Solution Integration In-Home Display/In-Home Feedback Conservation Based Rates Smart Grid Other Program Management Facilities Finance Regulatory (8.7) 0.0 (8.7) (8.7) 0.0 Procurement Contract Management Customer Business Transformation Engineering, IT, Telecom, Security & Field Trials Utility Operations Human Resources Communication & Stakeholder Engagement Page 4
18 Transition to Operations Leasehold Improvements Field Trial Equipment Actual Expenditures Program to Date Forecast Expenditures - Completion of Program Security Infrastructure (IT) Program Development Interest During Construction 3 Total Other Contingency Total Smart Grid includes theft detection and other advanced telecom infrastructure related expenditures. Program Initiation and Identification includes expenditures of $7.3 million incurred during F006 and F008 (inclusive). These amounts were expensed in the year in which they were incurred, although only $0.6 million was recovered in rates (i.e., $6.7 million was incurred ex-plan). Interest during construction is included in actual expenditures for each expenditure category, but not included in planned expenditures by category. Therefore, a separate line item is included in Other. Page 5
19 Quarterly Update Report No. Appendix A SMI Program Contracts and Commitments Executed in F06 Q
20 Appendix A Supplier/Vendor Contract Value ($) Description BC Ltd. 08,360 Asset Design Consultant Annex Consulting Group Inc. 93,348 IT Resources Brainhunter Systems Ltd. 300,050 Check Meter Software and Services Capgemini Canada Inc. 43,54 IT Resources Engine Digital Inc. 0,000 HAN Device Order Fulfillment Erron Consulting Ltd. 4,600 SCADA Upgrade Services Feinstadt Consulting Inc. 69,660 Business Transformation Resource HD3 Networks Inc. 59,74 IT Resources Hwoiken Consulting Services 30,000 DSMD Resource JTS Consulting Inc. 350,900 IT Resources Karma Midnight Ventures Ltd. 500,000 Smart Meter Installation Support Leacy Consulting Services Limited 30,000 Business Transformation Resource Long View Systems Corporation 7,440 Network Infrastructure Design Services Nextgen Technologies Ltd 54,450 SCADA Upgrade Services Oracle Canada ULC 8,76 Technology Servers and Licences Procom Consultants Group Ltd 59,700 Advanced Telecom Engineering Resources Quartech Systems Ltd. 88,000 Project Management Resource Robert Half Canada Inc. 3,70 Project Accountant Smart Meter Deployment Consulting 08,000 Deployment Consultant Teema Solutions Group Inc. 7,040 IT Resources Teksystems Canada Inc. 644,589 IT Resources Telus Communications Company 53,657 Telecom Infrastructure Services University of British Columbia 0,000 Check Meters Testing Services West Pacific Consulting Group 3,50 IT Resources TOTAL 3,457,548 Page of
For further information, please contact Geoff Higgins at or by at
Tom A. Loski Chief Regulatory Officer Phone: 604-63-4046 Fax: 604-63-4407 bchydroregulatorygroup@bchydro.com February, 06 Ms. Erica Hamilton Commission Secretary British Columbia Utilities Commission Sixth
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