The Value of Enterprise Meter DataManagement

Matt OwensDirector, Product ManagementItron Enterprise Edition

Agenda

• State of the Market And A Case Study• What Is Enterprise Meter Data Management?• The Value of Enterprise MDM

– General MDM benefits and benefits for AMR– Benefits for AMI– Extending the value with AMI

State of the Market• Smart Grid is all the rage!• Many utilities are applying for stimulus funds• 34 states have or are adopting renewable portfolio

standards or goals*• 13 states approved or pending approval for Revenue

decoupling for electric utilities**• Peak demand continues to grow at many utilities• Droughts and limited supply in some regions leading

water utilities to aggressively pursue conservation andAMI

*Pew Center on Global Climate Change**Edison Foundation.net

Circuit City vs Best BuyCircuit City Best Buy

Business Model Stuck in transactional economymode – volume and price focused

Deliver value to customers beyondaggressive pricing

CustomerMarketing

Discounting is key strategy Significant investment in and focus onleveraging customer analytics to segmentcustomers and offer customized shoppingexperiences for key customer groups

CustomerServices

Limited to in-store returns Acquired the Geek Squad – post salessupport to customers in-store and at home

Websites/SocialMedia Presence

Stuck in Web 1.0 Mode – Sellingsite only – brochure of products

Customer centered strategies – experimentwith a variety of programs

Investment inEmployees

Focus on cost cutting resulted inless experienced frontlineworkforce

Focused on training and customerretention strategies. Ex.Blueshirtnation.com

Which strategy is your utility pursuing?

What Is Enterprise Meter DataManagement?

Collection Validation Estimation Aggregation Distribution

Essential MDM CapabilitiesJob #1: Meter to Billing Determinant Processing

MeterReadings

• Interval

• CumulativeRegister

Multi-vendorcollection

Events &Alarms

Weather DataIndex Prices

MeterReadings

• Interval

• CumulativeRegister

MeterReadings

• Interval

MeterReadings

• Interval

LoadAggregation

Load Netting

Meter Readings

• Interval

• Cumulative Register

BillingDeterminantCalculations

Derived Load

Calculated Determinants

Events & Alarms

Weather DataIndex PricesKey Challenges:

� Highly scalable and flexible solution for import,validation, estimation, and calculations

� Support billing determinant calculations fordemand response rates

Essential MDM Capabilities• Persistent data storage: scalable and fully versioned• Support for multi-vendor data collection and interaction• Two-way controls: Service based brokering of two-way AMI

commands (ex. on-demand read, remote/connect disconnect)between utility enterprise systems and AMI systems

• Real-time collection and delivery of meter events• Service oriented architecture: Robust web services and

architecture to support integration with multiple utility systems• High volume exception handling: Reports, dashboards, and

tools to assist AMI operators with identifying and resolvingexceptions in “macro” or group level

• Support the meter provisioning process

Other ConsiderationsMDM is NOT a substitute for:

– Outage management system– Demand Response Management System– Enterprise Asset Management system that manages meter

assets– Work Management system– GIS system

General Enterprise MDM Benefits andBenefits for AMR

The typical utility IT infrastructure . . .In

dust

rial:

Hou

rlyC

&I:

Dai

lyM

ass

Mar

ket:

Dai

lyM

ass

Mar

ket:

Mon

thly

MV- 90

-Xi COMMTCP/IP

C&I FN

FN

MeterReading

2 way Interval

Hourly

Daily

Handheld

RTUsRTUs PI Historian

SCADA

LDW 3

LDW

LDW 2

CIS

SettlementCentral Market

RetailRetailOffice

Forecasting

RatesLoad Research

Customer Care

Assets

WMS

Circuit Analysis

LDW 4

ComplexBilling

Routes

GIS

MDM Enables Systems Consolidation

•Reduce the number of systeminterfaces

•Eliminate duplicate data

•Improve data quality and reliability

•Simplify access to data

•Lower IT and operational costs

MDM Improves Data Quality andReliability•Standard validation and estimation rulesapplied to interval and register data

•All data fully versioned

•Tracks contract changes and meterchange-outs

•Service point model allows users toeasily access data over meter change-outs

•Consistent aggregation, handling of timezones, DST, and other calculationsapplied regardless of data source

•Data distributed via scheduled exports instandard formats or via on-demand webservice call

Example Estimation Routines

•Linear Interpolation

•Historical Estimation

•Load Profile Estimation

•Check Meter Estimation

•2-week Like Day Historical

•Multi-week Average

MDM Benefits for AMR

• Reduce truck rolls for move-in / move-out requests bycapturing out of route reads with mobile AMR

• Enables transition from mobile AMR to Fixed NetworkAMR without adding new systems

• Enables utility to pilot new time based rates and othercustomer self service programs

Essential MDM Benefits for AMI

Example: SCE’s Smart Connect Benefits AndCosts

Nominal $$ Benefits (Millions)

222

636

1,127

1,024

3,009

58

92

96

422

3,909

4,577

T&D Deferred Capital

Energy Conservation Effect

Demand Response Direct Load Control

Demand Response Rates

Demand Response & Energy Conservation Benefits

Other Benefits

Transmission and Distribution

Call Center Benefits

Billing Benefits

Meter Reading Services

Operational Benefits

Nominal $ Benefits PVRR Benefits & Costs

Positive business caserequires significantdemand response benefits

Value of Enterprise MDM for AMI

• A required solution element to process and manage thelarge data volumes

• Exception reporting during AMI system deployment• Enables utility to offer time based and demand response

rate programs• Enables faster and better outage management• Empower customer service representatives with tools to

more effectively serve customers• Reduce truck rolls by executing and brokering two way

AMI communications

MDM: Exception Reporting During AMI Roll-out

• Identify meters not reporting• Monitor # of active vs. inactive meters against plan• Estimate missing meter reads• Re-request meter readings from AMI systems

Aggregated by day on demand

Aggregated by billing period on cycleTo CIS for billing

MDM: Enables DemandResponse Rates

From the meter

Available to Customer CarePortals via web services

MDM Enables Demand Response Rates

EnterpriseService Bus

Cycle BillingProcess

CSR

BillingAnalyst

Itron Enterprise Edition

DeterminantCalculation

1.Import and validateand queue requests

2.Run each requestthrough thecalculation process

3.Export results andnotify the requestingsystem.

Batch Request(LegacyFormat)

BatchRequest (IEEXML)

BillingRequest WebService

OR

Inbound Requests

Example: On-Cycle Billing Requests

Volume: 100K+ invoices per request Frequency: Once per day

Responses

ResponsesReadyNotification

Response(LegacyFormat)

All determinant calculationsare performed on the fly,with the best availablereadings data.

MDM Supports Basic Demand ResponseReporting

IEE MDMBilling with DREvent Results

DR Event Tracking

IEE Customer CareOnline Presentment

Basic DR Program andEvent Statistical Reporting

AMI & MDM: Better & Faster OutageManagementMDM and outage detection and restoration• Store outage and restore events• Deliver and transform in real-time outage and restore event data

to the outage management system and other utility systems– Throttle outage events by time and volume– Package outage events by transformer or other entities– Throttling, packaging, and delivery must be done asynchronously

• Support on demand reads and meter pings to assist inrestoration verification

• Provide outage and restore reporting to assist in feederreliability and power quality analysis (ex. momentaries)

Empower Customer ServiceRepresentativesView Customer’s usage profile

An On-Demand Meter Read was Submitted11:45:07 AM

Most Recent read was123,600 kWh

September 10, 2007 11:47:19 AM

Read results may take several minutes.Refresh this screen periodically

EventsEnergy Analysis Cost Analysis Peak Time RebateAccount

Help Logout

© 2007 Itron Inc. All rights reserved. Version 1.00.0000

Account :: Energy Analysis :: Cost Analysis :: Peak Time Rebate :: Events

Meter Read

123456789Meter No:

Electric Gas

Disconnect

Reconnect

Connect/Disonnect

Device ID: 12345678External System: OpenWayRequest Type: ConnectSubmit Date Time: 10/12/2007 14:29:01Response Date Time: 10/12/2007 14:29:28Result: Connected-------------------------------------------------------Device ID: 12345678External System: OpenWayRequest Type: Assisted ReconnectSubmit Date Time: 10/12/2007 14:31:04Response Date Time: 10/12/2007 14:32:13Result: Disconnected

Status

Are you sure you want to Disconnect?

Meter # 12345Customer: John DoeAddress: 1234 Springfield DriveAssisted Reconnect

Are you sure you want to Reconnect withon-premise assistance?

Meter # 12345Customer: John DoeAddress: 1234 Springfield Drive

To execute an assisted disconnect,make sure as assistant at the engagesthe AMI button on the meter. Try again afew minutes after this task is complete.

Yes, DisconnectNo, Go Back

Yes, ConnectNo, Go Back

OK

Execute or schedule remote connect/disconnect

View customer meter events

Perform on-demand read/meter ping

Resolve high bill complaints

Communication15“DisconnectMeter 123”

24

MDM: Reduce Truck Rolls• MDM Brokers two-way AMI control commands to

reduce truck rolls– On demand read, meter ping, contingency read, remote

connect/disconnect

IEE MDMCIS

AMI Head End 1

AMI Head End 2

Communication15“DisconnectMeter 123”

123

456

789

ABC

EFG

HIJ

IEE MDMID 15: Disc123Pending

Communication16“DisconnectMeter XJ8”

Communication 16“Sorry, I don’tknow that meter”

Communication 15“Meter 123Disconnected”

Communication 15“Meter 123Disconnected”

SubmittedComplete

Extending the Value of MDM and AMI

Extending the value of MDM and AMI

Custom and/or commercially off the shelf solutions canleverage and extend the value of MDM and AMI– Active Smart Grid Analytics– Customer focused solutions– Utility operational solutions

• Demand response analytics for the utility• Revenue, theft, and leak detection• Transformer and feeder load management

Extending the Value of MDM and AMI withActive Smart Grid AnalyticsTM

• Active – near-real time loading, analysis and action ofdata

• Smart Grid – data from all functions and aspects of theutility’s infrastructure

• Analytics – reporting, analysis and application of resultsfor accurate decision-making

Active Smart Grid Analytics will deliverthe data intelligence value of the Smart

Grid

Active Smart Grid Analytics is the confluence ofbusiness needs and business improvement

opportunities in one platform for the Smart Grid world

ASA Architecture

Help Customers Be Efficient Using ASALeverage smart meter consumption data and analytics to

offer targeted and proactive energy efficiency programs.By segment:– Which customers have the highest energy intensity (usage/sqft-

person) and peak demand– Which customers’ usage are most sensitive to weather– Which customers have the highest load factor– Which customers are the best targets for solar – help utility

manage load growth– Improved M&V to optimize EE programs – correlate rebate data

with customer usage before/after EE measure– Correlate above data with demographic data (ex. Previous EE

program participation, payment history, customer calls, etc)

Help Customers Manage Costs & TakeControlOfferings that leverage meter data

– Rate comparison and what if cost analysis – web based andpushed

– Demand response event participation cost savings – web basedand pushed

– Tiered usage and price alerts/notifications– Weekly/monthly usage, demand and cost reports – web based

and pushed• Estimated daily costs and segmented by end use• Recommended actions

– Usage and cost comparisons with neighbors – web based andpushed

– Emissions calculators – web based and pushed– Outage and restoration event notification via cell phone/text

MDM and Customer Energy ManagementSolutions

•Make usage dataavailable via web services

•Web based cost andenergy usage portlets andanalytics

•Price / usage tier alertsvia web cell phone, textmessage

•Outage restoration viacell phone, text message

•Actual emissionscalculators

•Benchmarking againstneighbors

Demand Response Analysis for the Utility

Demand Response Management System – DR Analytics1. Event Performance – What is the average reduction during the event?2. Program Performance – How successful is the program over the year or season?3. Forecasting – How much load drop is expected for future event days based upon historical performance?4. Event Optimization – What is the optimum event strategy for realizing the required reduction?

Enterprise Data Warehouse can help answer additional questions:1. Participant Behavior – How many customers override their T-stat setback or duty cycling? When did they override?

Are there free riders?2. Customer Segmentation – Correlate customer DR response with energy efficiency programs adoption. Correlate

with payment history and other customer demographics3. Distribution Analysis - Analyze load reductions by geographic areas and correlate to area supply and load growth

IEE MDM

Active Smart GridData Warehouse

Demand ResponseMgmt &

Control System

Event DataUsage DataBaseline Data

Event DataDevice Data

DREvents

Revenue Assurance, Theft and LeakDetection• Identify and report administrative losses – zero usage on

active account, usage on inactive accounts• Correlate usage patterns with tamper flags and other

field events• Develop baseline usage model to compare customer’s

actual usage to expected usage• Identify leaks and abnormal usage by using interval data

validation rules• ASA - Aggregate customer usage up to the transformer

level and compare to actual metered transformer usage

ASA and Transformer Load Management

•Aggregate customerusage to generate hourlyprofiles for eachtransformer

•For each transformercalculate and report onpeak load and overloadlevels, # of overloadevents and hours

•Use results to establishpro-active replacementprogram and identifylosses/theft

•Accurate connectivitymodel is required

Foundation For Pre-Paid MeteringOffering• Pre-paid metering can be a useful offering to help utilities

reduce collections costs and write-offs• Can be positioned as an incentive – discounted rate• AMI and MDM technology help enable more cost

effective pre-pay solutions• Customer balance application must be developed to

work in concert with MDM, AMI and CIS systems• MDM provides the customer’s daily usage balance and

can execute remote connect/disconnect commands