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© 2010 IBM Corporation IBM and Smart Utilities 12 May 2011; Istanbul Chris Murray – IBM Service Management Tiger Team GBP03036-USEN-00

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Page 1: IBM and Smart Utilities - IBM - United States

© 2010 IBM Corporation

IBM and Smart Utilities

12 May 2011; Istanbul

Chris Murray – IBM Service Management Tiger Team

GBP03036-USEN-00

Page 2: IBM and Smart Utilities - IBM - United States

© 2010 IBM Corporation2

Agenda

� E&U Value Chain– SAFE Architecture

� T&D Operations– Asset and Work Management

� Intelligent Utility Network– Smart Meter Deployment

Page 3: IBM and Smart Utilities - IBM - United States

© 2010 IBM Corporation3

An information value chain has emerged where meters are the gateway and infrastructure for enabling deeper customer engagement

While the traditional value chain stopped at the meter to the premises, the new value chain will integrate devices beyond the meter and the actions of customers themselves.

Value Chain

End-usecustomers

Power

distribution

Energy

service

(retail)

Power

transmission

Power

generation

and trading

Electric

devices and

appliances

End-usecustomers

Power

distribution

Energy

service

(retail)

Power

transmission

Power

generation

and trading

Electric

devices and

appliances

Distributed resources (generation, storage, electric vehicles)

Traditional electricity value chain

Emerging electricity value chain

Information and

services

platform owner

Information

devices

and appliances

Information services

Power flow

Information flow

Page 4: IBM and Smart Utilities - IBM - United States

© 2010 IBM Corporation4

In the expanded value chain, the customer has more to offer power providers and other participants than just payment for energy

At the same time, customers are becoming more demanding; they actually have much more to offer in reciprocal value to energy and other product/service providers.

Emerging industry value model:

Value to customers (continuous)

� Power� Reliability� Universal

service� Environmental

impact reduction

� Cost saving� Personalization

� Information� Services� Revenue

� Information� Services� Environmental

impact reduction� Revenue

� Information� Personalization� Services� Cost savings� Environmental

impact reduction

� Revenue� Information� Connections/

personal networks

� Power� Demand

response

Reciprocal value from customers (intermittent)

Third- party product/ service providers

Traditional industry value model:

Value to customers (continuous)

� Power� Reliability� Universal service � Revenue

Reciprocal value from customers (intermittent)

Value Chain

Page 5: IBM and Smart Utilities - IBM - United States

© 2010 IBM Corporation5

PHYSICAL AND CYBER SECURITY

SOLUTION ARCHITECTURE FOR ENERGY & UTILITIES FRAMEWORK (SAFE)

Servers, storage, communications network and equipment and associated services

INFRASTRUCTURE

END

USERS

DE

LIV

ER

Y O

PT

ION

S

POWER GENERATION

OPTIMIZATION

(PGO)

CORPORATE

SUPPORT

SERVICES

CUSTOMER OPERATIONS

TRANSFORMATION

(COT)

INTELLIGENT UTILITY NETWORK (IUN)

TRANSMISSION &

DISTRIBUTION

OPERATIONS

Plant OperationsFleet OptimizationSupply Expansion

Mobile Workforce MgmtAsset Lifecycle MgmtSupply Chain Mgmt

Human ResourcesAccounting

Payroll

Customer CareCustomer Management

Customer Systems

IUN Communications Networks

IUN Security

Smart Metering & Beyond

Grid Operations

Emerging Areas

IBM’s Energy and Utility Solution Portfolio addresses a utility’s business and technology needs across the full energy value chain

Smart metering and beyond solution offering components

Page 6: IBM and Smart Utilities - IBM - United States

© 2010 IBM Corporation6

Agenda

� E&U Value Chain– SAFE Architecture

� T&D Operations– Asset and Work Management

� Intelligent Utility Network– Smart Meter Deployment

Page 7: IBM and Smart Utilities - IBM - United States

IBM Software Group | Tivoli software

7T&D SM Rev 4 8-15-06

IBM Maximo for Utilities Solution Map

Design Requests

Designs & Estimates

DesignStandards

Asset History

AssetCondition

AssetPerformance

Maintenance Rules

MaintenancePrograms

Work Status

Project Work Orders

ExistingFacilities

InstalledFacilities

Real-Time Network Data

Real-Time Network Configuration

NetworkModel

As-Designed Network Model

AssetAttributes

AssetLocation

Work Details

Schedule

Asset Details

Asset Details

RoutineWork

Work Completion

DispatchManagement

AssetInvestmentPlanning

RCMAnalysis

Asset Database

WorkGeneration

WorkManagement

ScheduleOptimization

GeographicInformationSystem

EMS /SCADA

OutageManagement

OutageScheduling

LoadForecasting

ConstructionStandards

Network Events

Asset Management

Work Management

Network Operations

CU Estimation

Operations Work

Real-TimeNetwork Data

Condition AssessmentStorm RestorationLine Inspections

Load Forecasts

Engineering

Purchasing FinancialManagement

Human Resources

Corporate Systems

Customer Service

Customer InformationSystem

Voice Response

Financial Project

Management

Field Work

MXESMobile

Field DataCollection

Design

Inventory

Labor Skills & Certifications

CPMScheduling

Data Historian

MeterReading

DocumentManagement

Service LevelAgreement

Service Management

ServiceRequests

ContractManagement

OnlineCommerce

Service Catalog

Billing

MobileGIS

MobileDesign

To EngineerDesign

From MobileDesign

Supply Chain

NetworkRequests

NetworkRoutines

FixedAssets

Maximo Partner 3rd Party

Page 8: IBM and Smart Utilities - IBM - United States

© 2010 IBM Corporation8

Business Challenges to Distributed Utility

Below GroundAssets

AboveGroundAssets

Support Infrastructure

Strategic Imperatives

Regulatory

Reviews

Reduction inEmergencies

No Fines

Reducedoutage

Desired Outcomes

Carbon Footprint

CustomerAffordability

Public Safety

Regulatory Compliance

CAPEX and OPEX spend

Improved OPEX

management

Best asset

management

Today’s

Environment

Improved

CustomerService Accurate and

completeRegulatory review

A greener, sustainable,profitable business

Sustainability

Ageing Assets

Multiple asset

and work types

Enablers

� Intelligent Meters / Sensors / Assets� Condition based error detection� Specialist WAMS system� Lean work processes� SOA Model – componentised systems

“Pain Points”

Page 9: IBM and Smart Utilities - IBM - United States

IBM Software Group | Tivoli software

9

The Concept

Maintain Network

Emergency and Repair

Metering

Capex

Connect Customers

Asset Repository

GIS

Ex

ec

ute

Wo

rk P

oo

l

Fe

ed

ba

ck

Standard Business Process; Key Performance Indicators; Regulatory Data Readiness; Customer Experience

Optimise resources

Meet response

times

Asset Investment

Page 10: IBM and Smart Utilities - IBM - United States

© 2010 IBM Corporation10

IBM Maximo in Utilities

Extraction GenerationRetail

Customer

CommercialCustomer

Transmission Distribution

Recent Success

Fossil/Hydro Generation – 45% North AmericanFossil Generation and 55% of North American Hydro Power Generation (160)

Nuclear Power – 11 Customers, 42 Units WW Presence. Marketshare: 10% World, 24% NA

Key Utility Sectors

Distributed Utilities: High Voltage Transmission& Substation Maintenance (38) Distribution (22)

Gas Pipeline & Distribution (24), Water & Waste Water (120) - Collection and Distribution,

Water Treatment, Facilities and Vehicles

300+ IBM Maximo for Utilities Clients worldwide

Growing market share in all sectors

17 of 30 Fortune 1000 Utility Companies

4. Convergence of OT & IT – IT systems are leveraging the utilities ability to stay competitive

Top Reasons for Selecting Maximo for Utilities

1. Consolidation of asset management solutions –for Power Generation, Electric & Gas T&D, Water & Waste Water, Facilities, Vehicles, & IT assets

2. Technology – J2EE Certified, Service Oriented Architecture (SOA) platform –standardization, scalability, usability, security

3. Capabilities – Functionality & ease of configuration to customer processes

5. Leadership Position – In both the Gartner MQ and the Energy insight's Short List

6. People – Dedicated development teams for IBM Maximo for Utilities

Page 11: IBM and Smart Utilities - IBM - United States

© 2010 IBM Corporation

Maximo for Utilities

MUWG – Maximo Utilities Working Group

Vision

Enhance Maximo to support Transmission and Distribution utility work process in Electric, Gas and Water.

Support the design, construction, and accounting for new utility infrastructure.

Further development is now focused on supporting IUN/Smart Grid features for a smarter planet, future development will extend capabilities to gas and water segments as well as electric to maximize business operations with advancing technology

The Integration Framework supports the customer

ecosystem of software products that support distribution management (OMS, DMS) and utility operations (GIS, CIS)

Only vendor in the leader’s quadrant in Gartner’sAnalysis of Enterprise Asset Management for Delivery Utilities Transmission and Distribution

IBM developed & marketed Maximo CUE for Maximo v4

Maximo for Utilities v5.2 was released in 2004 providing

Compatible Unit Estimating CUE and Crew Management was added in 2005 for v 6

Maximo for Utilities 6.1 added GIS integration to ESRI ArcGIS server supporting geo-spatial management capabilities in an asset/work management system

Maximo for Utilities 7.1.1 adding CPM for Crews and the Service Address application for premise geo-coding

7.1.2 released in Nov. 2010 supporting Revenue Meter Asset Management and task work dependencies

7.x Crew support scheduler 7.1.1 & NERC/CIP support

Maximo for Utilities Supports DB2, Oracle ,SQL Server.

History

Utility clients / development partners

Page 12: IBM and Smart Utilities - IBM - United States

© 2010 IBM Corporation12

Magic Quadrant for Delivery Utility Enterprise Asset Management

30 September 2010

© Gartner, Inc.Kristian SteenstrupDelivery

D: G00206345

The Magic Quadrant is copyrighted September 2010 by Gartner, Inc. and is reused with permission. The Magic Quadrant is a graphical representation of a marketplace at and for a specific time period. It depicts Gartner’s analysis of how certain vendors measure against criteria for that marketplace, as defined by Gartner. Gartner does not endorse any vendor, product or service depicted in the Magic Quadrant, and does not advise technology users to select only those vendors placed in the “Leaders” quadrant. The Magic Quadrant is intended solely as a research tool, and is not meant to be a specific guide to action. Gartner disclaims all warranties, express or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose. This Magic Quadrant graphic was published by Gartner, Inc. as part of a larger research note and should be evaluated in the context of the entire report. The Gartner report is available upon request from IBM.

Service Management Resource Center Links (for clients)Gartner Magic Quadrant for Delivery Utility Enterprise Asset Management http://www.servicemanagementcenter.com/main/pages/IBMRBMS/PDFM/ShowCollateral.aspx?oid=38625&ssid=68Gartner Magic Quadrant for Power Generation Enterprise Asset Management Softwarehttp://www.servicemanagementcenter.com/main/pages/IBMRBMS/PDFM/ShowCollateral.aspx?oid=38626&ssid=68

Page 13: IBM and Smart Utilities - IBM - United States

© 2010 IBM Corporation13

Maximo Enterprise Adaptor for SAP

Page 14: IBM and Smart Utilities - IBM - United States

© 2010 IBM Corporation14

Crew Forecasting in Scheduler

Page 15: IBM and Smart Utilities - IBM - United States

© 2010 IBM Corporation15

More Accurately define work

locations

When a new service request is created, either manually or through a call center, having access to a map of the region to determine the location of the problem leads to a more efficient resolution.

Plan and schedule work by area

Query a map by Address

Optimize technicians travel

time

Advanced analytics

Ability to look at a number of open work orders and create a project or work package using a map view. Query work order by status, work type or craft requirements to find related work.

When trying to locate an asset or work order users can query the map by a specific address.

By having a work orders location accurately specified, there is less time spent on travel trying to find the correct address or location, and less time traveling between work locations inefficiently.

Ability to overlay information on a map like traffic or weather information, asset failure history or population to prioritize work, schedule outages or plan future maintenance projects.

Maximo Spatial - Features and Benefits

Page 16: IBM and Smart Utilities - IBM - United States

© 2010 IBM Corporation16

IBM Maximo Spatial Asset ManagementThe core of the SAFE architecture software stack, spatially-

enabled with ESRI ArcGIS®

IBM MaximoIBM Maximo®® with ESRI with ESRI ArcGISArcGIS®® Server Server

for service managementfor service management

Perform asset editing and work orders spatially..Perform asset editing and work orders spatially..

Extensible Extensible –– e.g., workforce routing, geoe.g., workforce routing, geo--spatial processing..spatial processing..

GIS digital infrastructure data is

the System-of-Record

GIS

GIS digital infrastructure data is

the System-of-Record

GIS digital infrastructure data is

the System-of-Record

GIS

Page 17: IBM and Smart Utilities - IBM - United States

© 2010 IBM Corporation17

Maximo for Utilities is Smart Grid Ready

IBM passed the first interoperability test for part 6 by creating a web service to receive a request in the CIM format. This web service creates a work order and responds with the new work order number. The web service also supports work order updates.

This work and the instructions to deploy it will be made available on Service Management (ISM)

https://www950.ibm.com/communities/service/html/communityview?communityUuid=59c1123b-0353-458e-a719-b002d84108d5

Support for Common Information Model CIM 61968 part 6More and more customers request CIM Support

Page 18: IBM and Smart Utilities - IBM - United States

© 2010 IBM Corporation18

Agenda

� E&U Value Chain– SAFE Architecture

� T&D Operations– Asset and Work Management

� Intelligent Utility Network– Smart Meter Deployment

Page 19: IBM and Smart Utilities - IBM - United States

© 2010 IBM Corporation19

Offering components Features

Smart Metering Systems Integration

Complete end-to-end smart meter implementation and program management including project planning and justification, management of meter deployment and communication networks, installation of Meter Data Management Systems and integration to utility back-office systems

Centralized Meter Data Services

Planning, development, connecting and integrating meter data from multiple utilities into an aggregated business model

Meter Data AnalyticsApplying business analytics to data collected from smart meters and other devices to gain insights into site interactions, smart meter infrastructure and grid enterprise participants.

Smart Meter Operations

Designing, building, and providing application management and hosting support and services to optimize the support of the smart meter infrastructure and related applications.

Metering Innovation

Identification, design, and incorporation of emerging metering capabilities as part of a smart grid deployment that needs to integrate with home area networks, electric vehicles, smarter buildings, renewable energy resources, microgrids and other new grid enterprise participants.

The IBM Smart metering and beyond offering includes:

Smart metering and beyond solution offering components

Page 20: IBM and Smart Utilities - IBM - United States

© 2010 IBM Corporation20

SAFE Framework for Asset Lifecycle Management

Smart metering and beyond SWG offering components

Smart metering and beyond solution offering components

Page 21: IBM and Smart Utilities - IBM - United States

© 2010 IBM Corporation21

Larger smart meter deployments are driving change across the smart meter infrastructure and in the end-to-end network

Premise Last mile LAN WAN Data center –NMS and MDMS

Data center –legacy apps

Customers and other stakeholders

Meter Data Management

System

Meters

WAN

Load control devices

Retailers

Customer

Displays

Data CollectionSystems

Integration with existing distributor systems

GIS

ERP

OMS

CIS

External data provision

LAN

Web

Meter communications:Standards are evolving.

Meter communications:Standards are evolving.

Home Energy Management System:Standards and architectures emerging.

Home Energy Management System:Standards and architectures emerging.

Home Area Network

Neighborhood Network

Access Network

Backhaul Network

Office Network

Smart Metering and Beyond offering from IBM

Network protocols: Standards for the smart meter network layer are evolving toward Internet Protocol (IP).

Network protocols: Standards for the smart meter network layer are evolving toward Internet Protocol (IP).

SM&B POV Highlights

Page 22: IBM and Smart Utilities - IBM - United States

© 2010 IBM Corporation22

Smart Metering Opportunity: Data Processing & Management

IBM => Support, Technology, Testing, Marketing programs, Delivery options, Differentiation, Analytics, & more

Solution PartnersSolution Partners

SMart

NetworkHead End and

Meter Data

Management Operations

Head End and Meter Data

Management Operations

Smart Meters

2010 - 2015

Smart Metering Solutions

Meter Installation Penetration Rate:55% North

America 40% Europe 7% SE Asia

Source: Pike Research

~ $19.5 Billion

250 million

meters

Device

SoftwareSoftware

Meter InstallCase Study4M meters, 85% read 1/ hr, 15% read 1/15 minsHead-end & MDMS

+

Smart Metering System Data

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

160.0

6 12 18 24 30 36 42

Months

Terr

ab

yte

s (

TB

)

MDMS Copy for Analytics

MDMS Full Backup

MDMS Disaster Recovery

MDMS Active

Head End Full Backup

Head End Disaster Recovery

Head End Active

MDMS Total

Head End Total

2010 – 2015 and Beyond

Best Hardware, Software, Services

IBMIBM

&

137TBytes

Smart MeteringServers

Systems Software

Meter DataBackup and

RecoveryStorage & Archival

Storage case over 3 years

Data Tsunami

Customer Management

Customer Management

Intelligent Utility Intelligent Utility NetworkNetwork

Transmission& DistributionTransmission& Distribution

Power Generation

Power Generation

• Data Strategy• Communication• IT Skills/Education• IT Management• Agility• Risk Management• Customer Focus• Modular Design• Integrated Solution• Scalability• Apps. Performance• Data Intelligence

Additional Business ValueLonger TermBenefits

2010- 2025

Energy RetailEnergy Retail

Impact

(FIT-FOR-PURPOSE)

Partners + IBM (HW, SW, Services) = SCALABLE, Integrated, Global SolutionIBM => Support, Technology, Testing, Marketing programs, Delivery options, Differentiation, Analytics, & more

Page 23: IBM and Smart Utilities - IBM - United States

© 2010 IBM Corporation23

NOC - Smart Metering / AMI Network Management Solution

Outage Management(TSRM)

PUBLICWIRELESSNETWORK

PUBLICWIRELESSNETWORK

PUBLICWIRELESSNETWORK E

A I

Customer Premise

Meters/HAN

Meter Communication

Network

Web Server

`

Customer

LoadControl

Billing & Customer

Care

Outage Mangement

NeighborhoodAggregator

SCECentral

Data Centers

DCA MDMS

Meter Data

Usage

AMI Servers

Asset Management(Maximo EAM and TAMIT)

Tivoli Security(TSIEM, TAM, TIM, TSPM, TCIM)

Network Management Events Management� IBM Tivoli Network Manager� BM Tivoli Netcool Configuration Manager

� IBM Tivoli Netcool Omnibus� IBM Tivoli Netcool Impact

En

terp

rise A

pp

licatio

n In

terfa

ces

Dashboards, Analytics, Service Monitoring

� IBM Tivoli Business Service Manager� BM Tivoli Monitoring and ITCAM� IBM Infosphere Stream Cognos and SPSS

WebSphere DataPower XI50

Private /

*RED: Core Products in Solution Bundle *Blue: Adjacent/Secondary Products

SM&B Tools, Accelerators and Assets

Page 24: IBM and Smart Utilities - IBM - United States

Tivoli Sales Play

IBM Confidential | © 2008 IBM Corporation

Netcool for Utilities Solution

� Network Visualization� Command & Control through graphics

� Topology based root cause

� E2E Event & Visual Consolidation

� Probe Library� Sensor Specific Probes

� Existing Generic Probes

� Event Correlation� Root Cause Analysis

� Service Level Management

� Multi-Protocol, Multi-vendor– Sensors

– IT

– Transmission

– NGN

� Knowledge Base– Reduces repair time

– Centralized repository of knowledge

– Launch in alarm context

� Scalable

� Centralized or Distributed Management

Page 25: IBM and Smart Utilities - IBM - United States

© 2010 IBM Corporation

Maximo 7.1.2 New Features to support Smart Meters

–Improve receiving rotating assets in bulk

–Improve issues and transfers by pallet number

–Store meter test results

–Define meter sampling templates

–Define meter sampling groups

–Create random sampling work orders

–Automate administrative functions that prevent dispatching of work orders

Page 26: IBM and Smart Utilities - IBM - United States

© 2010 IBM Corporation26

� Reduced truck rolls to confirm service after outages.

� Avoiding 2,000 truck rolls per storm, which was not in the original business case.1

� Reconnect time – 36 minutes, 05 seconds2

� Estimation rate reduced over 85% from the non-smart meter estimation rate:

- Non-smart meter estimation rate => 1.75%: Smart meter estimation rate => 0.25%2

� Smart meter data indicated more electricity theft “than anticipated.”1

� Electricity theft arrests double and $1.6 billion in electricity payments recouped sooner over a two year period3

Demand management

� Time-based pricing (TOU, CPP)

� Energy profiling and analysis

� Online energy audits / analysis

� Load control extensions

Revenue enhancement

� Cash flow

– Fewer estimated bills

– Shorter billing cycles

� Loss Identification

– Tamper alarms

– Load balancing

– Move-in detection

� Loss response

– Load limiting

– Remote and virtual disconnect

Customer service

� Better customer information for Customer Service Representatives

� Reduced customer call volumes

Benefits realization is immature, but examples demonstrate value in key areas

Sources: 1IBM Analysis for 1 million meter deployment; 2Smart Grid News, Sept 17, 2010; 3 Jacksonville Electric Authority (JEA), smartmeters Research Store, Dec 7, 2010

Distribution operations / reliability

� Outage detection and restoration

– Identifying “single-light-out”situations

� Asset optimization

– Asset loading

� Emergency response

– Emergency load shedding

SM&B POV Highlights

Page 27: IBM and Smart Utilities - IBM - United States

© 2010 IBM Corporation27

IBM’s smart meter experience

Offering components Key client references

Smart Metering Systems Integration

� CenterPoint� Enemalta� ESB � Hydro Ottawa� IESO� Oncor

� Oxxio� Pacific Gas & Electic� Pepco Holdings (PHI)� Southern California

Edison

Centralized Metering Data Services� IESO� Smart Meter Texas

Meter Data Analytics

� A2A� American Electric

Power� FirstEnergy� npower� NV Energy

� Oncor� Oxxio� Pacific Gas & Electic� Southern California

Edison

Smart Meter Operations� Oxxio� IESO� Smart Meter Texas

Metering Innovation� Powermatch� Oncor

� CenterPoint

SM&B experience

Page 28: IBM and Smart Utilities - IBM - United States

© 2010 IBM Corporation28

IBM smart metering engagements span the globe

Nuon

Oxxio

RWE npower

Scottish & Southern Energy

30 Italian distributors

North America:American Electric Power

Austin Energy

BC Hydro

BELCO

CenterPoint Energy

Con Edison

Consumers Energy

CPFL Energia

Entergy

First Energy

Florida Power & Light

Hydro One

Hydro Ottawa

IESO (Ontario)

London Hydro

NV Energy

Oncor

Ontario Energy Board

Pacific Gas & Electric

Pacific Northwest National Laboratory

PECO

Pepco Holdings Inc

Progress Energy

Smart Meter Texas

Southern California Edison

Toronto Hydro

Europe:A2A - AEM Torino

A2A - ASM Brescia

Alliander

EDF (France)

EDF Energy (UK)

EDP

EnBW

Endesa

Enemalta

Enel

ESB Networks

Göteborg Energi

MVV Energie AG

SM&B experience

Australia:Country Energy

Energy Australia

Western Power