Transcript Corporation Overview

An Open Platform for
Networked Energy Services
Metering Americas 2004
Presented by
Bob Warden
VP Worldwide Business Development
Echelon Corporation
The Problem – AMR Market is too small!
Traditional Utility Systems Are Fragmented
– Automatic meter reading for “hard to read meters”
– Pre-pay for high turnover populations
– Time of use price for commercial and industrial
customers
–…
2

Each with a marginal business case

Each with redundant infrastructure costs

Each with redundant maintenance costs
The Solution - A New Business Model
An Open Platform for Networked Energy Services (NES)

Many services amortized over one open infrastructure
– Low cost metering services — AMR, load profiling, remote
disconnect/reconnect, tamper & theft detection
– Real-time & time-of-use pricing, prepaid metering
– DSM, load curtailment, demand forecasting
– Distribution network optimization
– Outage detection & isolation, restoration verification
– Add new energy or other value-added services with minimal incremental
investment

Company-wide operating improvements lead to quick payback
3
A Common Communication Infrastructure enables
Networking “From Light Switches To Business Intelligence”
Increasing Business
Intelligence
Transforming Data Into
Knowledge
Connecting Networks to
Networks
4
Enabling Intelligent
Devices and Networks
Creating an open market for everything from
Intelligent Devices to Enterprise Software
Flexibility to adapt
existing Enterprise
Business Applications
Empower new
applications to
transform Data Into
Business Value
Choice of
Communication
Suppliers and WAN
transmission Networks
Choice of System Integrator
and Installation Processes
Choice of Intelligent Meters
and Network media
5
What’s more important the Network or the Meter?

The same infrastructure used for remote
meter reading, dynamic pricing, revenue
protection, outage management...

… reduces operating costs, generates
recurring revenue, separates regulated
services from unregulated
... and can support future value-added
services such as load control, street lighting
management, appliance control, etc.
But, both Utilities and Suppliers want to leverage
the meter to “own” the communication Network

6
Market wants a Safe Business Proposition

Improve return on core business
– Improve quality and reliability of service
– Decrease operating costs, improve
efficiencies

Build new business
– Generate incremental revenue through
services
– Decrease customer churn and reduce
“switching costs”
– Open Platform built on Standards
– Choose best of breed products
– Respond to regulatory change
– Retain return on investment
7
Much of this Vision Is A Reality in Italy
Enel Contatore Elettronico Project
Data Concentrator
IP
Power Line
Meter
System Software


Used New Business Model to create their own system
World’s largest smart metering project
– >27 million smart meters in homes & buildings, €2 billion project cost
– >15 million meters already installed, ~700K new meters installed per month
– Anticipated yearly savings of €400 million starting in 2005

8
Transforming the Italian power grid into an intelligent services
delivery platform will be completed in 2005
Enel Contatore Elettronico
Project Status
Enel Chief Executive Paolo Scaroni said…
The Italian power company has invested EUR2 billion to develop
AMM. They are being installed at a rate of 700,000 per month and
will complete the rollout of the system by 2005.
The system already allows the Italian utility to remotely control
supply and billing to half of its total 30 million users.
The meters create a bidirectional link between users and
providers that allows
– electricity providers to offer different prices for different times of
the day.
– users to easily shop around for the best energy provider or
change their supply needs.
Enel sees EUR400 million a year in savings with the new system
through remote billing and scrapping back office work.

From Dow Jones Business News, March 18, 2004
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Enel Contatore Elettronico
AMM System Benefits begin in the Meter
 Two-way automated meter reading
 Distribution system asset & load
management
 Comprehensive revenue protection
 Outage management
 Dynamic – time-of-use, real-time –
pricing
 Prepayment without card
 Remote physical disconnect &
reconnect
 Real-time direct load control
 Value-added customer services
10
Networked Energy Services benefit Every Utility Operation
Work
Management
Generation
Quality
Capital
Investment
Capacity
Planning
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Roll Out
Installation
& Services
Customer
Services
Queries
AMR &
Billing
Networked
Reads
Energy Services
Customer
Information
Distribution
Trends Automation
Distribution
Demand
Forecasting
Enel Contatore Elettronico
Business Model
Meter
design owned by Enel and manufactured by
contract manufacturers
Enel granted IBM exclusive license to market its inhouse developed Automated Meter Management
IBM and Enel estimate that the potential worldwide
market for AMM solutions is made up of 700 million
clients and worth more than EUR120 billion.
80 utilities from across the world have visited Enel's
AMM testing center in Milan or expressed interest in
buying the technology
A mid-sized utility with 5 million clients will spend
around EUR100 per customer to upgrade its network to
AMM stantards, Enel Chief Operating Officer Vincenzo
Cannatelli said.
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Echelon Infrastructure powers the Enel AMM System
Enel IT
System Platform Software from Echelon
PL to GSM Networking based on
Echelon Data Concentrator
IP Network
Metering using Echelon powerline communication
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A complete Networked Energy Services System
Billing
CIS
Prepay
EMS
Reporting
Outage
Custom
Networked Energy Services
Other
Middleware
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NES System Software based on
IP WAN
Custom
Now Echelon products can create the
Networked Energy Services infrastructure for Everyone
Tools
Data Concentrator
IP WAN
Provisioning
Tool Software
PL LAN
Meters
Work Order Tool

System Software
Three infrastructure components
– Meters
– Data Concentrators
– System Software

Two tools
– Provisioning Tool software
– Work Order Tool
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EM-1010 Series Meters

Unmatched cost to feature
ratio
– Best value in market

Outstanding features
include:
– Time-of-use pricing

Controls usage
– Load profiling

Understand the customer
– Power quality measurements

Preventative maintenance
– Many more…
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DC-1000: Functions

Supervises power line LAN
– Automatically manages meters
– Ensures reliable communication
– Detects line and device failures

Interface between System
Software and meters
– Meter Data Aggregation

Reduces WAN and device costs
– Provides pass-through control of meters from
System Software

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Enables on-demand functionality
NES System Software: Role

Critical Functions
–
–
–
–
Maintains network topology
Data collection
Control
Event handling

Provides a simple but
powerful interface to
NES hardware and data

Ensures version-to-version
compatibility
Utility Software
Web services
– Protects utility’s IT development investment

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Scales to handle millions of devices
Web events
NES System Software
IP WAN
Echelon NES System Is Open Infrastructure

Built on top of open standards
– ANSI/EIA 709.1-A-1999 & 709.2-A-1999
(LONWORKS®), CENELEC, IEC 61036 (2000), IEC
61107, ANSI C12.19, DIN 43857, TCP/IP, web
services

Connects to other systems using open
standards
– Web services and SQL for interoperability with
enterprise systems
– Provision for LONWORKS gateway to interoperate with
in-premise C-band devices

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Is being offered on the market as standard
infrastructure for others to build upon
Open business model for Networked Energy Services
VARs adopting Echelon’s NES system as
the basis for their system offerings
 Establishing the NES system as an open,
worldwide standard
 Opening and serving new markets
 Program announced Q4 2003

– Telvent: One of Spain's largest applied
engineering and process management
companies
– EDMI: Provider of electronic revenue meters to
Australia, Asia, ASEAN, the Middle East, and
Europe
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The NES System is an Open Platform

Meter boards
– For integration into your custom meter housing

Data concentrators
– For integration into your custom enclosure and
WAN network
Web services

System software
Web events
NES System Software
– For integration into your middleware and utility
applications

Provisioning software
Work Order Tool
Provisioning
Tool Software
– For integration into your field-force automation
methodology and tools
21
Echelon helps others adopt The NES System

Will provide technical information, training, and
support
– For meter board hardware
– For data concentrator hardware
– For system software

Will provide sales information, training, and
support
– For system-level, business case modeling
– For project qualification
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Anyone can develop applications for
Networked Energy Services
Billing
CIS
Prepay
Reporting
EMS
Outage
Networked Energy Services
Other
Middleware
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IP WAN
Custom
Custom
To extract more Value from Intelligent device data
– Two-way automatic meter reads
• Eliminate estimated bills
• Download new information into meter remotely
– Disconnect switch integral in every meter
• Connect, disconnect customer service remotely
• Set customer service level remotely
• Prepayment without card
– Time-of-use pricing
• Promote energy conservation
• Offer incentive rates
– Detailed quality of service information
• At individual customer level
• Comply with regulations
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Transform Distribution Network
 Improved
energy conservation and
forecasting
– Lower peak and overall load
– Manage supply and demand precisely
– Avoid huge investments in new generation
 Balance phase loads
– Size distribution transformers optimally
– Improve generation and transmission
efficiencies
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Transform Distribution Network
 Comprehensive revenue protection
– Detect reversal of meter wiring
– Detect tampering with meter cover
– Record meter power-downs
 Superior Outage Management
– Near real-time outage detection & restoration
reporting
 Ripple control replacement
– Replace legacy ripple control systems
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Provide Headroom for Growth
 Future Value-Added Services
– Dynamic load control
• Thermostats, water heaters, etc.
– Gas and water meter remote reading
– Street and traffic light management
– Appliances
• Remote monitoring and control
– Medical Emergency Signaling….
27
NES platform business model benefits categories
Other
Distribution
Operations
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Metering
Customer
Service
Business Model available for NES ROI Analysis
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Number of utility customers
1,000,000
Total Costs
$212,108,994
Total Benefits
$371,599,897
Payback Period in years
4.93
Net Present Value (NPV)
$159,490,904
Internal Rate of Return (IRR)
15.44%
NES System business model achieving momentum

Nuon - Leading Dutch utility

Pre-deployment trial in 2004
– Full system test from meters to
enterprise applications for one city
– Installations beginning in January

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Potential for 2.7 million meter
deployment beginning in 2005
Q&A
Questions?
31
Thank You