1. 2009 NCSL International Workshop and Symposium Metrology and its Impact on the Energy Utility Industry Collaboration between Consumers Energy Company and Radian Research Co-Authors: Ed Hass Consumers Energy, Robert Sawyer Consumers Energy, Dave Schuette Consumers Energy, Pete Dack Radian Research.

2. 2009 NCSL International Workshop and Symposium 29 out of 42 units – cost of doing business

3. 2009 NCSL International Workshop and Symposium Market liberalization plan: 80% of European households will be outfitted with energy-saving 'smart' utility meters in 10 yrs Smart meters will allow homes to distribute generation. Net metering allows them to sell energy from roof top solar panels back to the Electrical Utility Company.

4. 2009 NCSL International Workshop and Symposium Investment Drivers Smart advancements in metrology provides society the ability to measure electricity at any point along Utility’s entire distribution grid. Fully integrating Smart Metering may soon have the capability to balance supply requirements with customer demands in a near real time market. Advanced Metering Infrastructures (AMI) can help reduce measurement uncertainty, grid losses, and energy/emissions.

5. 2009 NCSL International Workshop and Symposium Pricing for a kWh of Electrical Energy

6. 2009 NCSL International Workshop and Symposium Electricity Dominates Emissions

7. 2009 NCSL International Workshop and Symposium Potential Impact From Bad Metrology A major US city received a 6 million dollar check and will benefit from hundreds of thousands of dollars each year in future utility savings, after a two-year investigation that uncovered errant billing practices by the city’s electric utility contractor over a period of 14 years.

8. 2009 NCSL International Workshop and Symposium Revenue Assurance - Meter Calibration Improvements Graph by Cannon Technologies

9. 2009 NCSL International Workshop and Symposium Variable MechanicalElectronic Temperature23 deg C +/- 523 deg C +/- 2 Voltage & Amps+/- 3%+/- 1% Load Performance+/- 2%+/- 0.5% Overload Accuracy+/- 1.5%+/- 0.1% Effects of Internal Heat +/- 1.5%+/- 0.4% Traditional electric meter shops, unlike laboratories are seldom housed in temperature controlled environments. Voltage and Amp accuracy is better by 2%. Load performance by four fold. Overload accuracy and effects of internal heating require better instrumentation and thus better calibration and measurement test standards. New Technology Improvement in Metering

10. 2009 NCSL International Workshop and Symposium Typical Situation Regulated by local agency Laboratory work procedures seldom diffuse to shop maintenance, let alone field operations. Utilities often outsource calibration functions and have limited capabilities. Electricity is generated by Nuclear and renewable with various M&TE calibration requirements.

11. 2009 NCSL International Workshop and Symposium Metrology’s Impact on World Trade Replacing 2% electro-mechanical energy meters with solid state 0.5% AMI meters is an example of metrology and its impact on the electrical utility industry, where improved measurement standards and measurement methods must advance.

12. 2009 NCSL International Workshop and Symposium Reference Standards WHY ARE REFERENCE STANDARDS NEEDED ? To ensure that in-service older mechanical electricity meters in the field meet the expected accuracy criteria. To ensure (trust & verify) that new AMI meters meet the expected accuracy criteria. Over all, Reference standards are needed to ensure the “check and balance” system associated with billing for the usage of electrical energy. ELECTRICAL METROLOGY – STANDARDS Radian Research, Inc. www.radianresearch.com

13. 2009 NCSL International Workshop and Symposium Reference Standards WHAT ARE REFERENCE STANDARDS USED FOR? Electricity Reference Standards are used as a comparison tool to test measurement instruments of lesser accuracy. For example, a portable working watthour standard is used to test in-service watthour billing meters. An instrument’s variation from a standard during calibration defines its accuracy not necessarily its measurement error/uncertainty. ELECTRICAL METROLOGY – STANDARDS Radian Research, Inc. www.radianresearch.com

14. 2009 NCSL International Workshop and Symposium NIST NMIs

15. 2009 NCSL International Workshop and Symposium NIST/NMI Certified Laboratory Most commonly the manufacturer of the standard. Fast turnaround and lower price. Public Service Commission Some States require that all utility Primary Standards be annually certified by the PSC electric standards lab. ELECTRICAL METROLOGY – STANDARDS Radian Research, Inc. www.radianresearch.com Alternatives to Direct NIST Traceability

16. 2009 NCSL International Workshop and Symposium Uncertainty from NIST Radian’s Primary Transfer Standard is tested by NIST annually with an uncertainty measurement by NIST to Radian of +/- 0.002% at unity power factor and +/- 0.003% at 0.5 power factor. System Errors Errors that may be presented by Radian’s Secondary Standard Test System when performing the actual test/calibration of the instrument. System Errors may be errors in the accuracy of the voltage signal, the current signal, and from the watt-hour measurement itself. DETAILS OF ACCURACY SPECIFICATIONS Radian Research, Inc. www.radianresearch.com

17. 2009 NCSL International Workshop and Symposium Reproducibility: Variation of values of a result obtained by multiple measurements of the same measurand taken over a reasonable range of conditions that might be expected in normal operation (operator, equipment, environment). Accuracy: Closeness/tolerance of a measured value to the value of the same measurand that would be realized by standards. Precision: Variation of values of a result obtained by multiple measurements of the same measurand using the same measurement process. Repeatability: Variation of values of a result obtained by multiple measurements of the same measurand taken over a relatively short time period under the same set of conditions (operator, equipment, environment). Traceability: The property of a measurement whereby the value can be related to national or international standards through an unbroken chain of comparisons, each with stated uncertainties. Resolution: Property of a measurement result indicating the degree to which it may be differentiated from other results of approximately the same magnitude. Usually used to refer to the number of meaningful digits or significant figures available in a displayed result. Measurement Quality Attributes

18. 2009 NCSL International Workshop and Symposium 18 Need for Z540.3 Q: Why do we need Z540.3 when we have: – –ISO 17025 – –ISO 9001 A: Z540.3 has a wider audience, beyond Manufacturers and Laboratories. Puts teeth into global fair trading. Z540.3 addresses: – –Calibration of M&TE that impact product & service. – –Reinforces culture of standards for entire system. – –Safeguards reliability = compliance + competency – –Test Uncertainty Ratio (TUR) 4:1 objective evidence – –Probability of False Acceptance (PFA) 2% validation – –Non-laboratory and non-manufacturing calibrations.

19. 2009 NCSL International Workshop and Symposium Z540.3 “Section 5.3 b” Impact Managing the Probability of False Acceptance and Rejection are important when a cynic demands verification to gain trust in measurement. Violations lead to damaged corporate reputation, disruptions in reliability, warranty expenses, economic losses, etc. False Accept Risk (FAR) and False Reject Risk (FRR) need to be mitigated to protect consumer risk and producer liability. Improved certainty reduces the risk and guard banding tolerances improves reliability. Reducing losses throughout the electrical system can significantly impact the financial health of a nation. Managing measurement uncertainty makes a Nation Rich & Secure!

20. 2009 NCSL International Workshop and Symposium Sweden's Guide to the Expression of Uncertainty In Measurement CategoryUncertainty Low Voltage, w/o Trans5.0% Low Voltage, w Cts2.0% High Voltage, w CT & VT Up to 2 MW 2.0% High Voltage, w CT & VT 2-10 MW 1.0% High Voltage w VTs & CTs Above 10 MW 0.5%

21. 2009 NCSL International Workshop and Symposium Uncertainty Budget for Energy (kWh) not Power (kW)

22. 2009 NCSL International Workshop and Symposium In Conclusion: Regulators are expecting increased certainty in accuracy to account for energy losses. AMI is expected to uncover errors that used to be hidden in the mechanical metering. New measurement and test equipment standards are good for the economy, environment, and you.