1. Advanced Metering Rule Christine Wright Public Utility Commission of Texas June 6, 2007 Retail Market Workshop COMET WG Meeting

2. 2 Overview Background HB 2129 Staff’s Goals Requirements Implementation

3. 3 HB 2129 Metering service to be provided by transmission and distribution utilities PUC directed to establish surcharge for advanced metering – Recover costs of deploying advanced meters to residential and non-residential customers (non-IDR) – Rates based on costs, charged to customer classes receiving the service

4. 4 Advanced Metering Rule Project initiated July 2005 Extensive consultation –Manufacturers, retail providers, utilities, customer representatives Rule proposed for formal comments November 2006 Reply comments January 2007 Workshops held in February & March Rule adopted May 2007

5. 5 Purpose Benefits of AMS to utility, retail providers, and customers Permit utilities to recover costs though surcharge Increase reliability of network Encourage dynamic pricing and demand response Make better use of generation transmission and distribution Provide more choices for consumers

6. 6 Applicability & Definitions All electric utilities, except an electric utility pursuant to § PURA 39.542(d)(1), is not subject to § PURA 39.107 Advanced Metering System (AMS): meters, associated hardware, software, communications systems, meter information networks, collects time- differentiated energy usage Dynamic Pricing: retail pricing for electricity that varies during different times of day Non-standard advanced meter: meter with functions in addition to AMS features in deployment plan approved by the commission

7. 7 Deployment Rule does not require deployment, but PUC by separate rule could order it Deployment consistent with rule or PUC waiver is condition for surcharge Six months prior to deployment or as soon as practicable an electric utility needs to file: 1.Statement of AMS Functionality 2.Either a Notice of Deployment or Request for Approval of Deployment 3.Request for surcharge may be included

8. 8 Deployment Plan Type of meter technology Type and description of communications equipment Systems to be developed during deployment period Timeline for web portal development Deployment schedule by specific area When monthly status reports will commence Schedule for deployment of web portal functionalities

9. 9 Progress Reports Available to market on a monthly basis following filing of its Deployment plan – Number of meters installed, listed by ESI ID – Additional information can be listed but is not required: County City Zip code Feeder numbers Other geographic identification

10. 10 Mandatory Functions AMS features 25.130(g) Sets a floor, not a ceiling Technology requirements: – Utility shall not deploy AMS that has not been successfully installed previously – At least 500 advanced meters in North America, Australia, Japan, or Western Europe Waiver Provision

11. 11 Mandatory Functions Remote meter reading Two-way communications Remote connection and disconnection* Time-stamping of meter data Direct, real-time access of customer and retailer to meter data Fifteen-minute data Storage of data Open standards and protocols Communication with premises devices Upgrade capability *Exception 25.130 (g)(1)(C)

12. 12 Meter Data Access Capability to provide direct, real-time access to usage data to the customer and the customer’s REP: –Hourly data transmitted to the web portal on a day-after basis –Staff using a stakeholder process, as soon as practicable, subject to Commission approval, when and how 15-minute IDR data shall be made available

13. 13 Communications Capability to communicate with devices inside the premises, including but not limited to: – Usage monitoring devices – Load control devices – Prepayment systems through the home area network (HAN) – Open standards and protocols ZigBee, Home-Plug, or the equivalent

14. 14 Communications Slide presented by TXU ED, March 2007

15. 15 Settlement 25.130 (h) It is the objective of this rule that ERCOT shall be able to use 15-minute meter information from advanced metering systems for wholesale settlement, not later than January 31, 2010

16. 16 Cost Recovery Surcharge to recover costs, following filing of deployment plan Costs for customer class to be recovered from class Surcharge recovers capital costs (and carrying costs) less expected operating cost savings Surcharge may not exceed amount based on deploying one-third of meters each year

17. 17 Time of Use Schedule Commission approval of a time of use schedule (TOUS) pursuant to ERCOT protocols is not necessary prior to implementation of the new TOUS

18. 18 Implementation Discussion forum https://www-1.ibm.com/QuickPlace/txprototype/Main.nsf Continued Workshops Implementation Proceeding Stakeholder Process

19. 19 Contact Christine Wright christine.wright@puc.state.tx.us David Smithson david.smithson@puc.state.tx.us Rulemaking Project Webpage http://www.puc.state.tx.us/rules/rulemake/31418/31418.cfm