3. Port Angeles, WA

6. Process to Purchase AMI System Know Your Business Case Have A Procurement Strategy Evaluate 1st & Ongoing Costs Have A Communications Plan Summary Outline

7. Business Case Customer needs Rate design needs Federal/state mandates Aging meters Meter reading costs Cost saving

8. New Time of Use Rate Design

9. What’s Your Peak Hour? Peak HoursShoulder Hours

10. New Rate Design Residential, general service, non-profit customer classes Winter & summer seasonal energy rates Peak, off-peak, and shoulder periods Base charge Demand response credits Demand metering & charges only for large commercial

11. Your Procurement Strategy? Competitive negotiation or low bid Turn-key or multi-year deployment Vendor or utility installation What’s your risk tolerance? Demand response

12. Leverage Your Assets Use utility owned infrastructure Move toward smart infrastructure Full two-way communication Co-located hardware

13. Procurement Suggestions Stay technology neutral Hold interviews and demonstrations Check references and conduct site visits Know what you are willing to agree to Construction phases 3 rd party issues

14. 1 st Cost Considerations Meters & disconnect meters Service repairs Demand response Installation Communications system Hardware & software Meter data management system Outage management system Integration services

15. Ongoing Cost Considerations License fees Pole attachment fees Software maintenance fees Server and switch depreciation Customer information system fees Network services (fiber optics, GPRS) Consider life cycle costing

16. Communications Plan AMI meters are highly accurate so everyone pays for what they use it’s fair The AMI system allows the City to run its utilities efficiently and at the lowest cost possible it’s financially responsible Customers can have more control over their bill It’s future ready

19. Smart meter installation credited with finding fire risk Port Angeles resident Donna Rowan looks at the electric meter on the side of her house after utility workers discovered that her old meter was dangerously hot http://www.peninsuladailynews.com/apps/pbcs.dll/article?AID=2011306269996

20. Know your business case Have a procurement strategy Consider 1 st and ongoing costs Communicate throughout

21. AMI System Acknowledgements Olympic Electric Company, Inc. SUNGARD

22. Purchasing and installing an AMI system is like parenting Just when you get good at it YOU’RE DONE! Concluding Thought

23. Larry D. Dunbar City of Port Angeles, Washington Deputy Director of Public Works & Utilities 360-417-4710 or ldunbar@cityofpa.us Website www.cityofpa.us AMI System RFP http://olypen.com/copa