Transcript MD Working Group 7-28-09 AMI Deck

Public Service Commission of Maryland
Proposal for Advanced Metering Infrastructure (AMI)
Delmarva Power and Light Company
Potomac Electric Power Company
July 28, 2009
0
Topics and PHI Representatives
Topics:
• AMI Overview
• Selected Technology
• Manufacturer Capability
• Benefits and Costs
PHI Representatives:
William Gausman, Senior Vice President, Asset Management and Planning
George Potts, Vice President, Business Transformation
James Boone, Assistant General Counsel
Todd McGregor, Process Manager, Business Transformation
John Sneed, Manager, Pepco Meter Installation and Testing
Glen Hein, Supervisor, Telecommunications Engineering
Andrea Turley, Senior Project Manager, Business Transformation
Stephen Sunderhauf, Manager, Program Design and Evaluation
Will Lowe, Regulatory Affairs Lead
1
AMI Overview
AMI is one component of a Smart Grid
• AMI refers to the full
measurement, collection
and processing of meter
and other customer data
• AMI includes “smart”
meters installed at each
premise, a two way
communications
network, and data
management systems
• AMI enables more
granular measurement
of consumption, the
matching of
consumption to price
signals and more
frequent transmittal of
consumption data
• AMI enables a
partnership between PHI
and their customers to
help customers make
better energy decisions
2
AMI Overview
AMI Meter Capabilities
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Daily/Hourly/15 Minute Interval Meter Reads
Customer Move In/Out and Other On-Demand Meter Reads
Remote Upgradeability of Firmware
Interoperability
Radio Frequency (RF) Communication to Field Network Devices
Radio Frequency (RF) Communication to In-Home Devices via Zigbee Protocol
Connect/Disconnect Switch
Load Limiting Capabilities
Bi-Directional Metering
Interval Register Data
Voltage Readings/Power Quality
Outage Notification, Power Restoration, and Energized Meter Verification
Configurable Settings and Internal Clock
Diagnostic Alarms, Tamper Flags, and Outage/Switch Counters
35 Days Non-Volatile Storage of Data
Register Display
Support for Home Area Network, Distribution Automation, and Demand Response
Tamper reporting
3
AMI Overview
Functionality of AMI System
Item No.
Feature/Functionality
Benefit
1
Hourly interval data recording for electric
customers, depending on their rate. (Note
meters are capable to be programmed to obtain
15 minute interval data)
Enable innovative rate structures, e.g., Critical Peak Pricing (CPP), CPP
Rebate, & Hourly Pricing. Present customers with energy usage data. Provide
customers with improved response to billing & other inquiries. (Requires
integration with the meter data management system, customer billing system
and “My Account” web functionality)
2
Two-way radio frequency communication to
the meter
Reduce manual meter reading while improving accuracy and lowering the
number of estimated bills. Less intrusive to customers by not having meter
reading personnel in or near the customer’s home or business.
3
American National Standards Institute (ANSI)
certified 200A full-load remote disconnect
switch and on-demand meter reading
Enable remote turn-on/off reducing field visits and enhancing customer
service, e.g. faster and better scheduled turn-ons/offs.
4
Tamper reporting and diagnostic alarms
Enhance tampering detection. Detect meter malfunctions sooner and reduce
number of incorrect bills. Integration with the revenue protection module in the
MDMS will help the Company proactively reduce theft of service.
5
Configurable outage definition and time
stamped outage and power restoration
reporting
Enhance detection and location of outage causes. Provide outage notification
and estimated time of restoration information to customers as an optional
service offering.
6
Bi-Directional Metering, Net energy metering
capability
Enable innovative rate structures, supporting renewable energy sources.
(Requires integration with the meter data management system and the
customer billing system)
7
On-demand remote meter “ping” capabilities
Support move in/out process. Provide improved customer service by remotely
verifying that a meter is currently in or out of service, helping to alert the
customer that the problem may be on the customer side of the meter.
Web presentation
Includes the implementation and configuration of Aclara’s Load and Rate
Analysis Module, the development of a meter read relational database, and
the integration of the Aclara’s Load and Rate Analysis Module with this
database and SSN system to support web presentation of electric and gas
consumption profiles.
8
4
AMI Vendor Selection Process
Overview
PHI went through a competitive selection process in order to select the vendors for its AMI equipment,
software and services.
PHI conducted the following two evaluations:
1.
2.
AMI Technology (which included electric meters, gas communication modules, communication
network and software)
–
This includes a review of the integrated communications solution for AMI together with other
Smart Grid applications
–
This also includes a distinction of meter vendors from other AMI technology vendors
End Point Installation services
Note: Prior to the above, PHI performed a separate competitive selection process to obtain a consulting firm
to assist with the AMI Selection Process. As a result of this process PHI selected Enspiria to provide support
to develop the RFP and to evaluate the bids. They will also assist in evaluating the performance of the system
during the field acceptance prior to full deployment. They were selected due to their previous experience in
performing similar work for other utilities.
5
AMI Vendor Selection Process
Integrated Communications Solution (for AMI & Other Smart Grid Applications)
PHI developed an Internet Protocol (IP) based communications design that included the possibility of using the
wireless mesh technology for both AMI and other Smart Grid applications (including distribution automation).
AMI communication network vendor finalists were evaluated against these key strategic drivers:
1.
2.
3.
4.
5.
6.
7.
8.
Robustness
Open standards
Bandwidth for utility operations (Distribution Automation and substations)
Bandwidth for AMI, Demand Side Management and Home Area Network
End-to-end Quality of Service (Prioritization of critical path)
Performance risk mitigation and reliability
Design protocol capabilities of Distributed Network Protocol 3 (DNP-3)
Available memory in the Network Interface Card (NIC)
The selection of Silver Spring Networks (SSN) enabled PHI to realize the following benefits:
– An integrated communication system resulted in the deployment of fewer communication devices than individual
communication systems. It also created a stronger communication system that supported the overall smart grid initiatives.
– The ability to connect distribution devices to either the wireless mesh or broadband wireless networks.
– An overall communications network where only 10-15% of total network bandwidth is needed to manage AMI functions
(including network overhead) – providing PHI with the ability for future enhancements and benefits
– Prioritized routing of data (QoS)
– More robust security design with an integrated communications network
SSN Financing:
– SSN has been financed primarily through venture capital. Its lead investors include Foundation Capital and Kleiner Perkins
Caufield & Byers.
6
Key Attributes - Communication Infrastructure Design
Perspectives
Comparison of top 2 AMI Vendor designs
DNP 3.0
Support
Other
Finalist
Future
Message
Priority
Only one is
available for DA
& would share
the highest
priority with
exception
reports from
meters
 Multiple levels
SSN
Now
of priority Using
IPV6 Ports Can
Prioritize By
Function
Packet
Size
Bandwidth
RF
Power
NIC
Memory
72
bytes
12.5% of
19.2Kbs=
2400 Baud
0.25W
32K
Bytes
1 firm
ware
image
4M
Bytes
 2 firm
 2000
bytes
 80% of

1W
100Kbs=
80 KBaud

Flash

ware
images
 Indicates the option is considered better
7
AMI Vendor Selection Process
Interoperability & Upgradeability
PHI selection of SSN has enabled improved interoperability and
future expansion capabilities
Silver Spring Networks' Bandwidth Utilization
approximately 80 Kilo Bits per second reserve capacity
• Appropriate selection and application of open
standards - SSN
Routing
Network
AMI
2.0%
Management
8.0%
• Collaborations with industry standards-making
0.5% Distribution
Automation
organizations such as IEEE, NIST, EPRI,
10.0%
together with other utilities technical
developments and issues - SSN
• Actively engage technology vendors to
address needs - SSN
• AMI Network solution contains significant
bandwidth for future use, providing further
Future Grid
Applications
flexibility to meet future needs -SSN
79.5%
• Field acceptance testing before full
deployment - PHI
• Involvement of industry experts in systems
integration (e.g. IBM) - PHI
• Close monitoring of technology system performance - PHI
• Requirement that AMI system includes the ability to perform over the air firmware upgrades
to protect against technology obsolescence - PHI
8
SSN Background Information
The SSN network is based on open standards. SSN has developed partnerships and alliances
with leading Smart Grid functionality vendors in order to insure interoperability. Key
partnerships include:
SSN Partnerships
Meters
General Electric, Landis & Gyr, Sensus, Itron,
Kinects
Home Area Networks and Arch Rock, Carrier, Control, Greenbox,
Devices
Invensys, Tendril
Customer
Total End Points
Pacific Gas & Electric
5.5 million
Florida Power & Light
4.4 million
Pepco Holdings, Inc.
1.9 million
CitiPower/PowerCor (Australia)
1.2 million
Jemena / UED (Australia)
1.0 million
Sacramento Municipal District
0.6 million
Modesto Irrigation District
0.1 million
SSN pilot customers include
Distribution Automation
S&C; Cooper, ABB, Siemens
Software
OSI Soft, GE, Gridpoint, eMeter, Oracle
Commonwealth Edison Co
141,000
Con Edison of New York
2,000
American Electric Power
8,800
Demand Energy Response
Comverge, Enernoc
Oklahoma Gas & Electric
6,700
Networking
Cisco
Duke Energy
4,928
Consumers Energy
4,160
Long Island Power Authority
75
Pacific Gas & Electric Company has the largest installed SSN network with
5.5 million electric, of that 850,000 are already deployed with a forecast to be
at 1.9 million deployed by end of 2009. Of the total commercial population,
4,600 C&I meters are included as part of the design scope but not under
contract. The total service area is 70,000 square miles.
9
AMI Vendor Selection Process
PHI has taken every reasonable precaution to protect against an unexpected
event whereby SSN could no longer supply required equipment:
 SSN has deposited a copy of the current version of the source code and relevant
documentation for the Software in escrow with NCC Group, Inc. ("Escrow Agent"), Escrow
Agreement Number: 38105.
 PHI has the right to obtain all Source Code and documentation for the Software that has been
placed in escrow, if SSN experiences defined acts of financial distress (e.g., bankruptcy,
receivership, etc.), or if SSN materially breaches its support and maintenance obligations.
 SSN has deposited Manufactutring Know-How in escrow with NCC Group, Inc. ("Escrow Agent").
 PHI has the right to obtain all Manufacturing Know-How that has been placed in escrow, if SSN
experiences defined acts of financial distress (e.g., bankruptcy, receivership, etc.), if SSN
materially breaches its support and maintenance obligations, or if a “force majeure” event
prevents SSN from manufacturing its products for more than 90 days.
 “Manufacturing Know-How” includes all of the specifications and information necessary to
manufacture all of the SSN system components, including but not limited to the names and
contact information for all current suppliers and manufacturers, engineering designs, reference
designs, drawings, interfaces, testing protocols, quality control protocols, communication
protocols, maintenance guides, and the like.
 The license rights granted by SSN to PHI include the right for PHI to use SSN’s Manufacturing
Know-How, and all SSN’s intellectual property rights related thereto, to manufacture or have
manufactured the SSN Equipment (including all firmware and Software included in or necessary
for operation of the Equipment) in the circumstances in which the Manufacturing Know-How is
released from escrow.
 PHI’s current agreement for equipment extends to the end of 2013. As the existing agreement
nears its end or as other circumstance warrant, PHI will evaluate its needs for spare.
10
AMI Business Case
The AMI Value Proposition
• The investment in AMI will produce benefits that outweigh the costs for
Maryland customers – even without funds from the Department of Energy
(DOE)’s American Recovery and Reinvestment Act (ARRA).
• Contract-based cost expectations: $179M*
• Meters and Communications network (including installation): $149M
• AMI network mgmt system and meter data mgmt system: $11M
• Contingency: $19M
*There is a prevailing wage requirement for DOE ARRA grants, which
is projected to increase the cost to $190M
• Projected benefits (distribution): $111M
• Projected benefits (supply): $113M (voluntary participation) or up to
$366M (default participation)
source: Brattle Group
11
AMI Business Case
Regulatory Assets – incremental AMI costs
● Elements of Regulatory Asset – Incremental Costs
▪ Incremental depreciation expense for new meters (15-year life), that is incrementally above what is
currently already being recovered
▪ Leasing Costs for computer hardware (Meter Data Management System)
▪ Amortization of software (5-year period)
▪ Incremental costs (labor, consulting)
▪ Known and measurable utility cost savings resulting from AMI deployment will be reflected as an offset
in the regulatory asset
● Creation of a regulatory asset for these costs preserves the ability of the Commission, Staff
and other interested parties to review the prudency of those costs when Pepco and Delmarva
seek to recover them
● Deferred amounts will be reviewed in the context of each utility’s next base rate proceeding,
and, upon Commission approval, be recovered over an appropriate period of time, such as
three to five years
● Elements of Regulatory Asset – NBV of Un-depreciated meters
▪ Amortization of the net book value of un-depreciated non-AMI meters over a 15-year period
− Coincides with life of new meters
− Conservative approach with lower revenue requirement and lower impact on the customers than shorter
amortization period requested by other utilities (e.g. Florida Power & Light requests 4-year amortization)
12
AMI Program Timeline
Pepco (District of Columbia and Maryland)
District of Columbia (Pepco)
Q2 2009
Q3 2009
Q4 2009
Q1 2010
Q2 2010
Q3 2010
Q4 2010
Q1 2011
Q2 2011
Q3 2011
Q4 2011
Program set-up & material procurement
Regulatory
approval
Automated Deployment System Integration
Customer Benefits System Integration
Field Deployment - Communications Equipment
Field Deployment - Meters
Dynamic Pricing and Rate Options
Start
design
Maryland (Pepco)
Q2 2009
Q3 2009
Q4 2009
Q1 2010
Q2 2010
Q3 2010
Begin program Implement
offering
program
Q4 2010
Q1 2011
Q2 2011
Q3 2011
Q4 2011
Program set-up & material procurement
Regulatory
approval
Automated Deployment System Integration
Customer Benefits System Integration
Same as DC (above)
Same as DC (above)
Field Deployment - Communications Equipment
Field Deployment - Meters
Dynamic Pricing and Rate Options
Start
design
Begin program
offering
Implement
program
13
AMI Program Timeline
Delmarva Power (Delaware and Maryland)
Delaware (Delmarva Power) - in progress
Q2 2009
Q3 2009
Field Acceptance Test
In progress
Automated Field Deployment System Integration
In progress
Customer Benefits System Integration
In progress
Q4 2009
Q1 2010
Q2 2010
Q3 2010
Q4 2010
Q1 2011
Q2 2011
Q3 2011
Q4 2011
Q2 2011
Q3 2011
Q4 2011
Field Deployment - Communications Equipment
Field Deployment - Meters & Gas Units
Dynamic Pricing and Rate Options
Start
design
Maryland (Delmarva Power)*
Q2 2009
Q3 2009
Q4 2009
Q1 2010
Begin
program
offering
Q2 2010
Q3 2010
Implement
program
Q4 2010
Q1 2011
Begin
program
offering
Implement
program
*The following timeline is dependent on regulatory
approval
Automated Field Deployment System Integration
In progress
Customer Benefits System Integration
In progress (same as DE)
Field Deployment - Communications Equipment
Field Deployment - Meters
Dynamic Pricing and Rate Options
Start
design
14
Appendix
• Business Case Slides
15
AMI Business Case
The AMI Value Proposition
AMI benefits flow to customers through both the Distribution and Supply components of the bill.
Approximate Residential
Customer Bill Breakdown
Supply
Operational Benefits
• Eliminate Manual Meter
Reading
• Remote Connect / Disconnect
• Improve Billing Activities
• Reduce Off-Cycle Meter
Reading
• Asset Optimization
• Reduce Expenses due to Theft
• Operating Efficiencies
• Enhance Customer Service
• Load Research
75%
Distribution
25%
Customer Savings from
Reductions in Peak Load
• AMI-Enabled Dynamic Pricing
• Demand Response
• Energy Conservation
• Distributed Generation
• Reduced Usage Enabled By
AMI Energy Information
• Load Research
16
AMI Business Case
AMI Business Case summary
Under any one of the projected market scenarios, this initiative promises a positive overall net
present value for Pepco and Delmarva in their Maryland customer base…
$400.0
$400.0
$314
$375.0
$375.0
$350.0
$325.0
$300.0
15 Year Present Value Scenarios
15 Year Present Value
for Demand
Response for
Scenarios
for Demand
Delmarva
Maryland
Response for Delmarva
Maryland
$350.0
$325.0
$300.0
$275.0
$275.0
$250.0
$250.0
$225.0
$225.0
$200.0
$200.0
$175.0
$150.0
Voluntary
Growing to
20%
Participation
$125.0
$100.0
$75.0
Total
Costs
Operational
Benefit
$50.0
Mandated
Dropping to
80%
Participation
$175.0
$52
$100.0
$150.0
$95
Total
Costs
$125.0
Operational
Benefit
$75.0
$18
$123
$50.0
$75
$25.0
$0.0
Green bars
represent
savings on the
supply portion
of the
customers’
bills derived
from the
combination of
AMI-enabled
dynamic
pricing and
AMI-enabled
direct load
control
programs
15 Year Present Value Scenarios
15 Year Present Value
for Demand Response for
Scenarios for Demand
Response for Delmarva
PepcoMaryland
Maryland
$54
$37
$25.0
Voluntary
Growing to
20%
Participation
Mandated
Dropping to
80%
Participation
$0.0
Source: Brattle Group Study
1
2
3
4
1
2
3
4
Conclusion:
• AMI is a net-positive investment for our customers even in the most conservative, lowest-value scenario
• The benefits from AMI-enabled critical peak pricing (CPP) will be more than doubled if dynamic pricing is the
default rate structure
17
AMI Vendor Selection Process
Contracted costs against original business case estimates
Delmarva - Maryland
Original Business Case
Current Forecast
Initial Deployment Costs
Initial Deployment
Only, $ in 000s
Costs Only, $ in 000s
Delmarva Power - MD
Delmarva Power - MD
$
30,060 $
38,347
$
14,908 $
1,509
Line AMI System Components
1 Meters, including Installation Cost
2 Communications Network, including Installation Cost
AMI Network Management System and Meter Data
3
$
Management System
4 Contingency
$
5 Total Capital Expenditures
$
6 Estimated Number of Meters Installed
Note: Excludes impact of paying prevailing wage for meter installation.
2,988
$
3,781
3,069
51,025
204,778
$
$
7,388
51,025
220,814
Pepco - Maryland
Original Business Case
Current Forecast
Initial Deployment Costs
Initial Deployment
Only, $ in 000s
Costs Only, $ in 000s
Pepco - MD
Pepco - MD
$
74,620 $
105,088
$
38,653 $
3,620
Line AMI System Components
1 Meters, including Installation Cost
2 Communications Network, including Installation Cost
AMI Network Management System and Meter Data
3
$
Management System
4 Contingency
$
5 Total Capital Expenditures
$
6 Estimated Number of Meters Installed
Note: Excludes impact of paying prevailing wage for meter installation.
7,747
$
7,374
6,656
127,676
530,952
$
$
11,594
127,676
570,182
The current forecasts are based in large part on executed contracts for Delaware which are
potentially applicable to other jurisdictions
18
AMI Business Case (Delmarva-MD)
Original business case estimates, excluding supply-related benefits
Initial Deployment Costs
Only, $ in 000s
Line AMI System Components
1 Meters, including Installation Cost
2 Communications Network, including Installation Cost
AMI Network Management System and Meter Data
3
Management System
4 Contingency
Total Capital Expenditures
$
$
Delmarva Maryland
30,060
14,908
$
2,988
$
$
3,069
51,025
Annual Estimated Costs After
Deployment, $ in 000s
5
6
7
8
AMI System Incremental Cost to Operate
MDMS Software Maintenance & License Fees
MDMS Hardware Leasing
AMI Network Management System O&M
Communications Network Infrastructure O&M
Total Incremental Cost to Operate
15 Year Revenue Requirement of
Total Costs
Line
1
2
3
4
5
6
Benefit Category
Eliminate Manual Meter Reading Costs
Implement Remote Turn-on/Turn-off Functionality
Improve Billing Activities
Reduce Off-Cycle Meter Reading Labor Costs
Asset Optimization
Reduce Expenses Related to Revenue Protection
Eliminate Hardware, Software, Maintenance and
Operations Cost for the Itron Handheld Data Collection
System
Delmarva Maryland
$
$
$
$
$
42
114
132
143
431
$53.5 million
In Projected 2008 Dollars,
$ in 000s
Benefit Dollars as
a % of Total
Delmarva Maryland
Delmarva Maryland
$
$
$
$
$
$
2,579
746
317
367
188
60
59.3%
17.2%
7.3%
8.5%
4.3%
1.4%
$
51
1.2%
Reduce Volume of Customer Calls Related to Metering $
9 Improve Complaint Handling
$
10 Total
$
20
16
4,335
7
8
15 Year Revenue Requirement of
Operating Benefits
0.5%
0.3%
100.0%
$36.5 million
19
AMI Business Case (Pepco-MD)
Original business case estimates, excluding supply-related benefits
Initial Deployment Costs
Only, $ in 000s
Line AMI System Components
1 Meters, including Installation Cost
2 Communications Network, including Installation Cost
AMI Network Management System and Meter Data
3
Management System
4 Contingency
Total Capital Expenditures
$
$
Pepco Maryland
74,620
38,653
$
$
$
7,747
6,656
127,676
Annual Estimated Costs After
Deployment, $ in 000s
5
6
7
8
AMI System Incremental Cost to Operate
MDMS Software Maintenance & License Fees
MDMS Hardware Leasing
AMI Network Management System O&M
Communications Network Infrastructure O&M
Total Incremental Cost to Operate
Pepco Maryland
$
$
$
$
$
15 Year Revenue Requirement of
Total Costs
Line
1
2
3
4
5
6
7
8
Benefit Category
Eliminate Manual Meter Reading Costs
Implement Remote Turn-on/Turn-off Functionality
Improve Billing Activities
Reduce Off-Cycle Meter Reading Labor Costs
Asset Optimization
Eliminate Hardware, Software, Maintenance and
Operations Cost for the Itron Handheld Data Collection
System
Improve Complaint Handling
Total
15 Year Revenue Requirement of
Operating Benefits
108
295
346
289
1,038
$122.8 million
In Projected 2008 Dollars,
$ in 000s
Benefit Dollars as
a % of Total
Pepco Maryland
Pepco Maryland
$
$
$
$
$
3,182
1,750
1,727
803
1,301
35.5%
19.5%
19.3%
9.0%
14.5%
$
$
$
124
71
8,958
1.4%
0.8%
100.0%
$74.5 million
20
AMI Business Case
The AMI Value Proposition
• AMI is cost effective for individual Pepco customers.
• Operational and supply-related benefits outpace cost by year 3 under most conservative of scenarios (e.g.,
passive supply-related benefits).
• Does not incorporate any service-related benefits.
Potomac Electric Power Company - Maryland
AMI Implementation
Estimated Trend of Monthly Incremental Customer Bill Impacts
Supply-related
benefits derived
from Brattle
Group’s most
conservative
scenario (2007
supply rates)
$5.00
$4.00
$3.00
$2.00
$1.00
$$(1.00)
$3.02
$3.07
$2.81 $2.42 $2.28
$2.13 $1.98 $1.83 $1.68 $1.54
$1.55
$1.40 $1.26
$$(0.71) $(0.63)
$(1.08) $(1.73) $(1.78) $(1.83) $(1.88) $(1.93) $(1.98) $(2.03) $(2.09) $(2.14) $(2.20) $(2.26)
$(2.00)
$(3.00)
$(1.44) $(1.80) $(1.78) $(1.78)
$(1.78) $(1.78) $(1.78) $(1.78) $(1.78) $(1.78)
$(1.78) Recovery of Existing Meters
$(4.00)
AMI Cost
$(5.00)
Supply-Related Benefits
1
2
3
4
5
6
7
8
Full Service Year
Residential customer depiction; based on 1000 kwh per month.
9
10
11
12
13 AMI Operational Benefits
Net of Cost /Operational and Supply Benefits
Net of Cost/Operational Benefit
21
AMI Business Case
The AMI Value Proposition
• AMI is cost effective for individual Delmarva customers.
• Operational and supply-related benefits outpace cost by year 8 under most conservative of scenarios (e.g.,
passive supply-related benefits).
• Does not incorporate any service-related benefits
Delmarva Power and Light
AMI Implementation
Estimated Trend of Monthly Incremental Customer Bill Impacts
$5.00
$4.00
$3.00
$2.00
$1.00
$-
$2.91
$3.72
$3.56
$3.34
$2.94
$2.78
$2.62
$2.47
$2.31
$2.16
$2.01
$1.86
$1.71
Supply-related
benefits derived
from Brattle
Group’s most
conservative
scenario (2007
supply rates)
$(0.47)
$(1.00) $(0.44) $(1.93) $(1.98) $(2.03) $(2.08) $(2.12) $(2.18) $(2.23) $(2.28) $(2.33) $(2.39) $(2.45) $(2.51)
$(2.00)
$(0.42) $(0.41) $(0.40) $(0.39) $(0.39) $(0.39) $(0.39) $(0.39)
$(0.39) $(0.39) $(0.39) $(0.39)
$(3.00)
Recovery of Existing Meters
$(4.00)
AMI Cost
$(5.00)
Supply-Related Benefits
1
2
3
4
5
6
7
8
Full Service Year
Residential customer depiction; based on 1000 kwh per month.
9
10
11
12
13 AMI Operational Benefits
Net of Cost /Operational and Supply Benefits
Net of Cost/Operational Benefit
22
AMI Business Case
The AMI opportunity created by ARRA
• The impact of AMI, subsidized through a DOE grant, is of even greater benefit to the Pepco customer.
• Does not incorporate any service-related benefits
Potomac Electric Power Company - Maryland
AMI Implementation
Estimated Trend of Monthly Incremental Customer Bill Impacts
Excluding Supply-Related Savings
$5.00
Net of Cost/Operational Benefit
$4.00
Net Cost/Operational Benefit 25% Stimulus
Net Cost/Operational Benefit 50% Stimulus
$3.00
$ per cust per month
$2.00
$1.00
$-
$(1.00)
$(2.00)
$(3.00)
$(4.00)
$(5.00)
1
2
3
4
5
6
7
8
9
10
11
12
13
Full Service Year
23
AMI Business Case
The AMI opportunity created by ARRA
• The impact of AMI, subsidized through a DOE grant, is of even greater benefit to the Delmarva customer.
• Does not incorporate any service-related benefits
Delmarva Power and Light - Maryland
AMI Implementation
Estimated Trend of Monthly Incremental Customer Bill Impacts
Excluding Supply-Related Savings
$5.00
Net of Cost/Operational Benefit
$4.00
Net Cost/Operational Benefit 25% Stimulus
Net Cost/Operational Benefit 50% Stimulus
$3.00
$ per cust per month
$2.00
$1.00
$-
$(1.00)
$(2.00)
$(3.00)
$(4.00)
$(5.00)
1
2
3
4
5
6
7
8
9
10
11
12
13
Full Service Year
24