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The Regulatory Environment
Ed MayDirector of Business Development, AMIItron Inc.
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Agenda• Highlighting State Compliance
with EPACT 2005 Section 1252
• Legislation Moving in110th Congress
• Status of Technical Standards(ANSI, ZigBee®)
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AMI
AMR
• Meter Reading Cost & Efficiency
• Revenue Cycle Improvements• Operational Improvements
• Voluntary Time Based Rates / Opt In
• Revenue Protection / Theft Detection
• Outage Reporting
• Support for Intelligent Grid
• Mandatory Time Based Rates / Opt Out
• Remote Disconnect / Prepayment
• Demand Response
• Enterprise Meter Data Management
• Smart Meter
• TOU / Demand / Net Metering
• RTP / CPP / Hourly Rates
• New Products & Services / Voluntary TOU
• Home Automation
Walk-byDriv
e-byFN-AMR
2-WayOpen Protocols
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Definition of Advanced Metering
• FERC: A metering system that recordscustomer consumption [and possibly otherparameters] hourly or more frequently and thatprovides for daily or more frequent transmittalof measurements over a communicationnetwork to a central collection point.
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What is AMI?
“In the course of Department of Public ServiceStaff’s review of the utilities’ AMI plans, itbecame apparent that the utilities do not have aconsistent understanding of what physicaland/or functional characteristics an AMI systemshould include.”
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AMI Defined
• AMI is the use of smart meters, with advanced two-waycommunication technologies, that enables utilities to:
– Meet their business & operational needs for meterdata collection
– Empower ALL their customers to actively andfrequently participate in demand response andenergy conservation
– Help move toward a smart grid
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Section 1252: Procedures, Not Outcomes
� Section 1252 says: “Not later than 18months after enactment, each electric utilityshall offer each of its customer classes…atime-based rate schedule to enable them tomanage energy use and cost throughadvanced metering and communicationstechnology”
� PURPA Section 111(a) says: “Each stateregulatory authority…shall consider eachstandard” and then “make a determinationconcerning whether or not it is appropriate toimplement such standard”
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EPACT 1252 Proceedings Status Summary
• States with open proceedings: 27• States with closed proceedings: 12• States deciding to adopt 1252: 3• States declining to adopt 1252: 13• States deferring decision: 5
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True, not many states have said “yes,” but…
• Because a state declined adoption of1252, that doesn’t mean it’s notpursuing time-based rates anddemand response– For example, California, Texas,
Oregon, New York
• Some states have deferred actionuntil individual utilities file their nextrate case or IRP
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Notable states
• New York– Declined to accept EPACT Section
1252 standard, but are requiring AMIbe offered to all customers “to theextent feasible and cost effective”
– PSC is currently reviewing IOU’s AMIplans
• Ohio– Accepted EPACT Section1252
standard– Currently hosting AMI workshops
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Notable states, cont.
• California– Did not open docket for Section 1252– All three IOUs are in various stages of
major AMI deployments and/or PUCauthorizations
• Maryland– Deferred Decision on Section 1252– PSC created 2 AMI initiatives:
PHI Collaborative andAMI/DSM Collaborative
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Notable states, cont.• Texas
– No EPACT Section 1252 decision to date– PUC recently finalized advanced metering
rules– Rules require compliance with open
standards• Connecticut
– Did not open EPACT docket for Section 1252– Legislature passed energy bill that required
IOUs to submit AMI plans and TOU pricingplans to commission, which are currentlyunder review
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Legislation in 110th Congress
• Smart Grid Legislation– Senate Bill – HR 6– House Bill – HR 3221
• Energy Tax Legislation– House Bill – HR 2776– No companion bill in Senate– Accelerated depreciation for
qualified energy managementdevices, including smart meters
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Legislation in 110th Congress, cont.• Highlights of Smart Grid bills
– Creates Grid Modernization Commissionto facilitate smart grid technologies,including interoperability protocols
– Smart grid assessment andreport to Congress
– R/D funds for DOE– Federal matching funds for
smart grid investments– Requires states to consider cost
recovery for smart grid technologydeployments by utilities
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“The success of AMI systems further requires an openstandard that enables multi-vendor, interoperableequipment.”
PUBLIC SERVICE COMMISSION
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Open Standards make for Interoperability
– Five key standards• Services Oriented Architecture• Web Services• ANSI C12.19• ANSI C12.22• ZigBee®
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ANSI C12.22– Standard addressing for network datagrams containing
C.1219 data tables– Application-layer standard– Can work across any network/medium: BPL, PLC, WiFi, RF,
IP, telephone– In the stages of ratification
ANSI C12.22
BPL WiFi
Private WiMaxPLC
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What is ZigBee?
• 65,536 network (client) nodes
• Full Mesh Networking Support
• 27 channels over 3 bands[2.4GHz, 915MHz, 868MHz]
• 250Kbps data rateNetwork coordinatorFull Function nodeReduced Function node
Communications flowVirtual links
Data Rate (Mbps)
Ran
ge
ZigBee802.15.4
802.15.3802.15.3a802.15.3cWPAN
WLAN
WMAN
WWAN
WiFi802.11
0.01 0.1 1 10 100 1000
Bluetooth802.15.1
IEEE 802.22
WiMaxIEEE 802.16
IEEE 802.20• Standards based
• Radio + protocol
• Mesh networking
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Ret ail Ap ps
Customer Self-Service
Utili ty
Ap p s
Portal
WaterHeater
LV120V
Meter Relay
BPLRepeater
BPLRepeater
ZigBeeZigBee
Compressor
PoolPump
Utility PriceSignals
Utility PriceSignals
SmartThermostat
Visionfor Energy Management and Conservation
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Simple Awareness
Direct Load Control
Price Response
DR + Conservation
•New Regulation•Enhanced Competition•Mandatory Programs•Voluntary Participation•Demographics•Economics•Social Acceptance
Energy Management
Tendril
Comverge
Aztech
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ZigBee Members Involved with EnergyEfficiency
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Open Standards Working Together
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Regulatory Bodiesare charting the course
“…a HAN communications system in support of demandresponse applications based on an open standardarchitecture that complies with nationally recognizednon-proprietary standards such as ZigBee,HomePlug or equivalent…”
Advanced Metering rules approved May 10, 2007
“open standards and protocols that comply withnationally recognized non-proprietary standardssuch as ANSI C12.22…”
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Regulatory Bodiesare charting the course
DEPARTMENT OFPRIMARY INDUSTRIES
Adoption ofopen communications protocols and standards for the
Victorian Advanced Metering Infrastructure (AMI) program
“The current Victorian approach:The Victorian approach will achieve open communications ateither end of the AMI system… That is, the open standardZigbee AMI profile is likely to be prescribed for the HAN…”
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Regulatory Bodiesare charting the course
PUBLIC SERVICE COMMISSION
The following list provides the features and functions proposed by Staff forinclusion in a standard for AMI systems to be adopted by the Commission:
a) ANSI compliant (must meet all ANSI standards).h) Utilizes open standards-based communication protocols and platforms, e.g.,broadband, PLC, internet, XML, MV-90, Zigbee, DNP3, etc.
Notice seeking comment - defining AMI