2Elster Confidential and Proprietary. 2 Industry in Transition Smart Grid – Paradigm shift, revolutionizing the way we use energy Driven by - technological, environmental, economic, political pressures The “Smart Grid” impacts –Consumer –Energy generation –Transmission & distribution –Regulatory & economic, policies
3Elster Confidential and Proprietary. Smart Grid Impact Flexibility for resilience & reliability –Decentralized, open & secure delivery, information, and control infrastructure –Sensing, distributed intelligence and control technologies throughout the transmission and distribution system –Integration of key business systems that streamline control and decision making processes Knowledge to empower consumers –Awareness & understanding –Customer actions to reduce energy use and peak load 3
4Elster Confidential and Proprietary. Smart Grid Impact Economic & environmental sustainability –Proactive load shedding capability to direct consumption during critical peak over-load situations –Broad scale energy efficiency programs with predictable and measurable impacts on consumption –Demand response technologies that create real time feedback loops between the consumer and utility –Renewables and distributed generation resources
5Elster Confidential and Proprietary. Ten years ago … dial-up, narrowband Internet connection for many, AOL was the internet CompuServe e-mail addresses that had nine digits still backing up files on 3 1/2 inch floppy disks no IPODs - Sony Walkman cassette tapes in the car (CD players were also available) analog cellphone that only handled voice calls (no texting) video rental stores still rented VHS tapes (DVD were also available) computers didn't play movies, let alone download them gaming required a playstation or nintendo (no on line gaming) film cameras (digital cameras were available) Alta Vista was the search engine Social networking meant talking to people at a cocktail party
6Elster Confidential and Proprietary. AMR vs. AMI Automated Meter Reading (AMR) –Replace manual monthly reads –Reduce labor costs Advanced Metering Infrastructure (AMI) –More frequent data –Transfer knowledge –Take action Actionable information that is useful but perishable
7Elster Confidential and Proprietary. AMR is One Way with Dumb Endpoints
8Elster Confidential and Proprietary. AMI is Two Way with Intelligent Endpoints WAN
9Elster Confidential and Proprietary. AMI Smart Grid WAN
10Elster Confidential and Proprietary. Smart Metering Technology: Communications – Available Choices –Full Two Way with Sufficient Data Throughput RF Tower RF Mesh Power Line Carrier (PLC)
11Elster Confidential and Proprietary. RF Network Options
12Elster Confidential and Proprietary. Level 1 2.Gatekeeper checks for reliability and registers Level 1 nodes Gatekeeper Gatekeeper is single phase or polyphase ALPHA meter with WAN & LAN boards 1.Gatekeeper meter looks for unregistered nodes Auto-registration Network Elements can be either A3 ALPHA or REX2 meters EnergyAxis Mesh Network
13Elster Confidential and Proprietary. Gatekeeper Level 1 1.Gatekeeper looks for unregistered nodes 2.Gatekeeper registers Level 1 nodes 3.Gatekeeper instructs Level 1 nodes to find Level 2 nodes, checks reliability, and sets up Level 2 nodes & repeaters Level 2 Auto-registration EnergyAxis Mesh Network
14Elster Confidential and Proprietary. Level 1 Gatekeeper Level 2 1.Gatekeeper looks for unregistered nodes 2.Gatekeeper registers Level 1 nodes 3.Gatekeeper registers Level 2 nodes & repeaters 4.Gatekeeper registers Level 3 nodes & repeaters Level 3 Level 4 Level 16 5. Network continues to build to a max 16 hops (15 repeater levels) EnergyAxis Mesh Network Auto-registration
15Elster Confidential and Proprietary. Level 16 Level 1 Gatekeeper Level 2 Level 3 Level 4 Also supports… Gas Meters Water Meters In Home Display Demand Response EnergyAxis Mesh Network
16Elster Confidential and Proprietary. Power Line Carrier Communication Frequency carrier over power line. Requires infrastructure in the substation Excellent distance - up to 50 miles
17Elster Confidential and Proprietary. Smart Metering: Communications Technology Tradeoffs MeshTowerPLC Point to Point SpeedFast Slow BandwidthBroadNarrow ScalabilityHighLowHigh Broadcast SpeedMediumFastSlow WANChoiceFixed Interference Technology Does Prevent Technology Does Not Prevent No Inter- ference License Unlicensed Shared Bandwidth License Protects Right to Exclusive BandwidthNA Risk of Frequency Re-allocationVery LowLowNA Contention Low (Distributed Path)High (Bubble Up)Low Redundancy Easy (Add gatekeeper)Difficult (Add Towers)None Self HealingHighLowNone Data Throughput Reliability High (Every Network Element is Repeater) Low to High (Varies with # of Towers and Repeaters Deployed) High
18Elster Confidential and Proprietary. Smart Metering Technology: The Market Chooses … Communications – Planned Deployments –RF Mesh – 70%* –RF Tower – 15% –Power Line Carrier (PLC) – 15% –Broadband Over Powerline (BPL) – < 1% *Of 48 utilities (50M connected meters), 31 (35M connected meters) have selected an RF mesh technology solution. Source: Energy Information Administration
20Elster Confidential and Proprietary. Back to Basics Just what is a “smart meter” anyway?
21Elster Confidential and Proprietary. What is a Smart Meter? Wikipedia –A smart meter is an advanced meter (usually an electrical meter) that identifies consumption in more detail than a conventional meter; and optionally, but generally, communicates that information via some network back to the local utility for monitoring and billing purposes (telemetering).
22Elster Confidential and Proprietary. What is a Smart Meter? DOE –… smart meters… are able to measure, store, send and receive digital information concerning electricity use, costs, prices and time-of-use between power companies and customers for purposes that include but are not necessarily limited to dynamic pricing, demand response, load management, billing, remote connect/disconnect, outage detection and management, and tamper detection. DOE smart grid stimulus award application form, issued June 25, 2009
23Elster Confidential and Proprietary. What is a Smart Meter? Generally accepted definition: A smart meter is an intelligent device that supports “two-way” communications back to the head end to enable utility Smart Grid applications
24Elster Confidential and Proprietary. 2-Channel kWh –Delivered –Received –Sum –Net 2-Channel Load Profile –REX2: 15, 30 or 60 minute intervals –A3: 5, 15, 30 or 60 minute intervals 4-Tier TOU –With four day types and four seasons REX2 Meter Data Demand –TOU and Total –15, 30 or 60 min interval 1, 3 or 5 min. subintervals Voltage: (1) Snapshot, (2) Maximum and (3) Minimum Power: (1) kVA or (2) kVAR Momentary Outage Count Sustained Outage Count Sustained Outage Time Data for power reliability indices (SAIDI, SAIFI, CAIDI, MAIFI)
25Elster Confidential and Proprietary. EnergyAxis Remote Disconnect Fully integrated 200A disconnect switch Same meter profile as non-disconnect Designed for safety – Switch will not close if load side voltage is detected Applications: – Improve Collections – Move-Ins / Move-Outs – Demand Limiting – Prepayment – Employee Safety Elster has the most disconnect meters in service
26Elster Confidential and Proprietary. The Generic Smart Meter Aren’t all smart meters the same? In fact, the “meter” might not be very smart at all. No!
27Elster Confidential and Proprietary. Three Main Components The core metrology –Converts voltage and current measurements into basic energy via a pulse output or an incrementing cumulative value The meter registers –The logic and functionality in which the basic measurement is converted to billing data The communications –The method used to transmit the information back to the utility head end Core Metrology Billing Register Communications
28Elster Confidential and Proprietary. The Core Metrology: Eyes & Ears of a Smart Meter Converts voltage and current measurements into basic energy via a pulse output or an incrementing cumulative value X= kWH V I Core Metrology
29Elster Confidential and Proprietary. The logic and functionality in which the basic energy measurement is converted to billing data The Billing Register: Brains of a Smart Meter Billing Register Interval Data Core Metrology TOU 2.56 kW Maximum Demand kWh
30Elster Confidential and Proprietary. TOU Interval Data 2.56 kW Maximum Demand The Communications: Mouth of a Smart Meter The method/technology by which information is transmitted to the system head end Meter Communications Billing Register Communication Network
31Elster Confidential and Proprietary. Comm Module Meter Smart Meter Solution “A” Billing Registration performed in the meter Core Metrology Communications Billing Register Communication Network Utility Head End
32Elster Confidential and Proprietary. Smart Meter Solution “A” Communications are independent and interchangeable; transport, but do not create register data Metrology and billing register are 100% aligned in traditional meter Register output is directly traceable to meter Data delivered to AMI Head End will exactly match values on meter display Meter typically maintains data history, facilitating complaint resolution Comm ModuleMeter Core Metrology Communication s Billing Register Communicatio n Network Utility Head End
33Elster Confidential and Proprietary. Comm Module Meter Smart Meter Solution “B” Billing Registration performed in the comm module Core Metrology Communications Billing Register Communication Network Utility Head End
34Elster Confidential and Proprietary. Smart Meter Solution “B” Typically uses a basic meter that may provide nothing more than a plain kWh value (i.e., the meter itself is not very “smart”) Register logic and functionality embedded in the communications module; core metrology output is used as input to billing data Sets up dependency on reliability and accuracy of link between communication module and meter; creates an opportunity for errors to be introduced even if core metrology is 100% accurate Time differentiated billing data may not be traceable to the metrology Comm ModuleMeter Core Metrology Communicatio ns Billing Register Communicati on Network Utility Head End
35Elster Confidential and Proprietary. Com Module Meter Smart Meter Solution “C” Billing Registration performed in the network Core Metrology Communications Billing Register Communication Network Utility Head End
36Elster Confidential and Proprietary. Smart Meter Solution “C” Billing registration is performed somewhere “in the communication network” No auditability or traceability to the core metrology Communications reliability will have significant impact on accuracy of time differentiated data Comm Module Meter Core Metrology Communications Billing Register Communication Network Utility Head End
37Elster Confidential and Proprietary. Solution “A” is EnergyAxis Maximizes Auditability, Minimizes Risk What you see is what you get Comm Module Meter Core Metrology Communications Billing Register Communication Network Utility Head End =
38Elster Confidential and Proprietary. What’s Happening Litigation Post deployment meter testing to “validate accuracy” Customer dissatisfaction Increasing consumer doubt Additional regulatory oversight
39Elster Confidential and Proprietary. The Smart Meter Plays a Key Role Customer satisfaction Positive relationship with consumer advocacy groups Responsibility to shareholders Avoid unnecessary scrutiny/skepticism of other aspects of smart grid deployment SOX compliance
40Elster Confidential and Proprietary. A Closer Look at One Factor: Sarbanes-Oxley 2002 Unprecedented financial transparency and accountability –CEO / CFO must attest to accuracy of financial statements and adequacy of internal controls behind financial statement data –Failure carries fines up to $5M and/or imprisonment for up to 20 years Does metering fall under SOX? –The metering system is the daily logbook for revenue –CIS and/or MDM were considered adequate for monthly or bi-monthly metering data –Future internal controls must support the data collection process for possible 15-minute interval reads for millions of consumers –“Significant and material financial impact” could result from a legitimate, collective dispute by consumers, or an aggregated territory-wide calculation error
41Elster Confidential and Proprietary. Auditability and Traceability: EnergyAxis Solutions to Fundamental Issues Do the Time-Of-Use and register data sent to the head end match what is shown on the meter display? This facilitates complaint resolution.
42Elster Confidential and Proprietary. Auditability and Traceability: EnergyAxis Solutions to Fundamental Issues Does the meter data come from a single source? Or is it compiled and calculated from multiple sources? –AMI systems that use the communications module to compute billing data, may not be able to trace that data directly back to the meter. The billing data is generated at the meter and stored at the meter. –Billing data output (consumption, demand, time-of-use, interval data, etc.) is directly traceable to the meter.
43Elster Confidential and Proprietary. Auditability and Traceability: EnergyAxis Solutions to Fundamental Issues Can interval data be retrieved locally? –At the meter’s optical port? –With/without the communications? Does system not rely on the communications module for any calculations or register functionality?
44Elster Confidential and Proprietary. Aren’t there Standards for this? Existing standards for electricity meters provide strong rules for evaluating accuracy of the core metrology –ANSI C12.1, C12.10, C12.18, C12.19, C12.20, C12.22 No existing standard guides or defines the process of accumulating data into time differentiated rates Established meter vendors understand the operational expectations (with or without a standard) Elster supports standards and applies them to EnergyAxis wherever applicable
45Elster Confidential and Proprietary. Accuracy: EnergyAxis Solutions to Fundamental Issues Normal meter accuracy testing validates the core metrology only The addition of AMI communication modules can sometimes have an effect on electricity meters Questions: –Does the Meter/Register provide the same accuracy with communications turned on/off? –How is the register function validated when performed “outside” of the meter? EnergyAxis meter accuracy can be tested with or without AMI module communicating
46Elster Confidential and Proprietary. Meter and Register Maintenance Multiple firmware sets exist in a Smart Meter Communications are commonly upgradeable Make sure that core metrology and billing register functionality are also remotely upgradeable Core Metrology Billing Register Communications One of the recent outputs of the NIST standards activities is NEMA SG-AMI 1, “Requirements for Smart Meter Upgradeability”
47Elster Confidential and Proprietary. Maintenance: EnergyAxis Solutions to Fundamental Issues Are upgrades supported to: –The communications? Yes with EnergyAxis This capability is common –The core metrology? Yes with EnergyAxis –The register? Yes with EnergyAxis
48Elster Confidential and Proprietary. Smart Meter vs. Smart System Know the differences in smart meter implementations and evaluate the risks Not just “Do I have a Smart Meter?” But… “Do I have a Smart System?” –Communications technology alone does not constitute a smart system –A truly smart system has intelligence distributed throughout the infrastructure
49Elster Confidential and Proprietary. Future Trends to Watch Market pressures will drive vendors to offer tightly integrated solutions –Metrology, registers, and communications may be physically located on the same circuit board –All three are still logically separate and billing register scenarios “A”, “B”, and “C” still apply
50Elster Confidential and Proprietary. Future Trends to Watch Support for new and emerging communication solutions –The Smart Grid is not a single communications technology –Smart Grid solutions will have multiple technologies deployed as appropriate for the needs of the utility application –Applies to both Residential and C&I applications –Future applications may justify direct WAN communications to a higher percentage of endpoints – even residential
51Elster Confidential and Proprietary. Summary Ask questions – dig into the details Verify Compliance to SOX within your meter-to-cash process Auditability and traceability of billing data Ability to test (with and w/o communications) Upgradeability of all major smart meter components Adaptability to new and emerging technologies