Advanced Metering Infrastructure (AMI): Selecting and Evaluating AMI Systems Agenda • Brief history of meter reading • What is AMI • AMI System Benefits • Selecting an AMI System • Future Products Remember when………. Visual Remote Touch Read Walk By Hand Held Radio Drive By Radio Water Utilities are under pressure and need solutions Challenges • • • Needs Aging infrastructure & workforce Economic slow down Rising power, chemical, and labor costs • 4% of U.S. electrical generation used for water delivery and treatment. (Source and Waste Water) – EPRI 2006 • Regulatory • Contamination threats • Increased revenue • Cost reductions • Service and quality improvements • Reduction of risk I don’t believe my bill Conservation & Consumer Transparency •76% of consumers concerned about need to conserve water(1) •67% of consumers are concerned about the cost of water service at their home(1) •36 states predicting water shortages between now & 2013(2) •5-10% of American homes leak 177+ billion gallons annually through old faucets and toilets(2) •Lack of consumption detail contributes to bill estimates and errors (1) Testing the Water: Smart Metering for Water Utilities, Oracle, January 2010 (2) U.S. Environmental Protection Agency, WaterSense, Statistics and Facts, http://www.epa.gov/WaterSense/resources/facts.html (3) Utility Bills $10,000 After Estimating Bill During Winter—Despite Substantial Refund, Ogden Utah Man Says City Still Owes Him Money, Channel 5 KSL-TV, October 9, 2008, 10:02 p.m. Aggressive EPA Enforcement • At least 30 cities are under consent decrees to upgrade their systems — Atlanta $4.0B — Washington, D.C. $2.8B — Baltimore City and county $1.7B — Cincinnati $1.5B “New Jersey can maintain a viable economy with a sound environment only if it ensures that its water supply, wastewater and storm water infrastructure is effectively maintained in a manner that produces the lowest life-cycle cost.” • 1974/1996 Safe Drinking Water Act --The Clean Water Council • 2011 proposed federal budget of New Jersey - October — Currently calls for $990 M for Drinking Water SRF 2010 Advanced Metering Infrastructure (AMI) What is AMI? Advanced Metering Infrastructure (AMI), is the complete automation of the metering process which includes meter reading, distribution monitoring. AMR vs. AMI What is the difference? AMR Once a month After Monthly Reads AMI READINGS On demand LEAK DETECTION When it occurs None DISTRIBUTION ALERTS When it occurs Reactive CUSTOMER SERVICE Proactive Whose System is right for me? Star Systems Basic Network Architecture SMR Collector MTUs Base Station Multipath or Mesh Systems Why 2-Way AMI for Water? 1.Lets you read meters from your office 2.Provides bills that customers can believe by showing how much water they used every hour 3.Monitors for tamper, leaks, burst & backflow 4.Allows you to remotely control water service 5.Informs consumers about their usage 6.Allows you to manage drought situation Key AMI System Benefits Increasing meter accuracy Increasing accuracy of meter readings Reducing the number of estimates and misreads Reducing difference between water production and customer sales Reducing or eliminating potential theft of service, meter tampering issues, and bad debt Key AMI System Benefits (continued) • Reduce operating expenses associated with reading meters… – Reducing or eliminating final and rereads by personnel – Providing the ability for remote electric connects and disconnects • Allow utilities to… – Comply with federal and state unfunded mandates – Enhance rate payer equity – More promptly respond to customer inquiries • Provide better customer service by… – Eliminating long and short reading periods – Being able to address billing and usage concerns more accurately – Fewer home and yard intrusions Consumer Benefits • New AMI tools provide customers: – On-demand access to consumption information – Involvement in managing utility cost – High usage & demand response notice – Leak detection notice – Budget tracking/setting Benefits of Data • Strengthens relationships with consumers • Improves customer service • Educates consumers on the importance of conservation • Addresses non-revenue water • Promotes consumer understanding of rate increases • Reduces billing “surprises” • Enhances communication with consumers Web-Based Consumer Portal Enables utilities to strengthen relationships with consumers by providing a consolidated view of their water and electricity consumption online to help them better understand and manage usage behavior and enhance communication with their utility. THE FUTURE OF AMI Remote Disconnect Meter (RDM) Repeaters LEAK DETECTION Antenna Wedge position indication Contaminant Flushing Hydrant a s Satellite Meter Reading Smart Water Infrastructure: Beyond AMR Best Practices when Choosing an AMI System Goals when choosing an AMI System Leverage existing assets Utilize water utility owned infrastructure Full two-way communication Real time data Actionable information for managing utility operations Move toward smart infrastructure #1. Know Your Business Case Business case must drive procurement Consider meter age Likely not a good business case if you recently replaced all of your meters #1. Know Your Business Case (continued) Key Factor - Will you take advantage of AMI Benefits? Rate structure - Limited benefit if you are just going to charge a flat rate Advanced Feature benefits – Increased AMI value comes from leveraging the many benefits which go beyond meter reading If not, Might be better off with AMR #2: Procurement Strategy Unbundle the cost of the project into logical components Have vendors bid on these components separately Stay technology neutral until proposals are submitted Don’t decide on Mesh vs. vs. Star without seeing vendor proposals and understanding your options Consider existing your applications/systems and an AMI vendor’s willingness to adapt Application examples: Billing, CIS #3: Cost Considerations Consider on-going costs vs. upfront costs This can be a huge differentiator Carefully evaluate what the primary vendor is offering vs. 3rd parties Consider what is in base system cost Consumer Portal, MDMS -> often require additional add-on costs Is software client based or internet based? Thank You! Questions or Comments?? 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