AEP Ohio Distribution Reliability and Technology Programs

Transcription

1 AEP Ohio Distribution Reliability and Technology Programs

2 Overview of Technologies and Reliability Plans gridsmart Phase II Case No EL-RDR Advanced Metering Infrastructure (AMI) Distribution Automation Circuit Reconfiguration (DACR) Volt Var Optimization (VVO) Electric Security Plan III (ESP III) Extension Case No EL-SSO Distribution Investment Rider (DIR) Vegetation Management Distribution Technology Plan Plug In Electric Vehicle Charging Stations Microgrids Smart Street Lighting LED Street Lights Next Generation Utility Communication System Substation Security

3 gridsmart Phase II Technologies

4 Advanced Metering Infrastructure (AMI) AMI Meters 894,000 meters to be installed in over 30 communities Rollout period of 4 years Customer Option to Opt Out Opt out requires monthly manual meter reading fee of $24. AMI Benefits Online availability of usage data Allow customers to better understand the quantity of usage as well as time of usage to better understand and reduce their usage, saving money Meters read Remotely and Securely Remote meter reads means increased reliability through fewer bill estimates and operational savings that will be returned to customers More robust pricing options Customers will be able to participate in time-of-used programs Power outage detection Smart meters can allow the Company to detect if a power outage is effecting one customer or the community. This will allow for quicker detection so service can be restored faster

5 DACR Distribution Automation Circuit Reconfiguration (DACR) DACR will be placed on approximately 250 distribution circuits serving more than 330,000 customers Circuits selected will provide the greatest efficiency in reducing customer minutes of interruption DACR Benefits DACR for Phase II will provide up to 30 percent reduction in customer minutes of interruption Provides power outage data in real time allowing crews and dispatchers to restore power more quickly

6 Volt Var Optimization VVO Install Volt Var on over 160 circuits serving approximately 230,000 customers VVO allows the system to automatically receive voltage levels on circuits and operate regulating devices which lowers energy VVO Benefits Previous installation of VVO has shown a 2 to 3 percent reduction in energy and demand, lowering the end user consumption with nothing required by the customer, leading to bill savings

7 Phase II Investment & Rate Impacts AEP Ohio will invest approximately $516 million to deploy Phase II technologies over 7 years The typical bills shown are for each year. Years 4-7 do not include the reduction in the project costs that will occur due to operational savings. These savings will be determined through an audit process and will reduce the total project cost once approved.

8 ESP III Extension Technologies and Plans

9 Distribution Investment Plan Continues the Company s Comprehensive Reliability plan to continue to replace aging infrastructure (DIR) in order to improve or maintain the reliability of our service to our customers. Distribution Investment Rider the continuation of the DIR Plan will allow the Company to be proactive in asset replacement, avoiding outages by addressing aging infrastructure prior to power outages that impact reliability. Under the 2013 DIR work plan, Avoided approximately 306 outages Had the potential to avoid almost 30,983 outages, Completed work on circuits that would potentially reduce total customer outage minutes by 20,400. Under the 2014 DIR work plan, Avoided approximately 816 outages Had the potential to avoid almost 41,888 outages, Completed work on circuits that would potentially reduce total customer outage minutes by 31,200.

10 Vegetation Management Successes Since Inception Invested more than $450 million to keep trees away from our 31,000 miles of overhead lines; Implemented a four-year trim cycle of our lines; Completed the first full trim cycle of all 31,000 miles in 2014 while simultaneously trimming 6,817 miles into our second cycle; Cleared nearly half our total line miles for the second time during 2014 and 2015; Reduced outages caused by trees by 80 percent, thereby improving customers service: During ,700 outages caused by trees inside our Rights-of- Way( ROW ) versus during outages caused by trees inside our ROW.

11 Proposed DIR and Vegetation Management Spend DIR - $225M Each year 2018 through 2024 (Capital Spend) Incremental Vegetation Spend O&M $26.5M $27.6M $28.8M $30.1M $31.4M $32.6M $34.0M Capital $1.2M $1.3M $1.4M $1.5M $1.7M $1.8M $1.9M

12 Proposed Distribution Technology Plan Technology Deployment Timeline Capital O&M Electric Vehicle Chargers 250 Level 2 Public Smart Chargers, 25 DC Fast Chargers 1,000 Residential Chargers 4 years for Phase 1 $6.4M $775,000 per year ongoing O&M Microgrids Smart Lighting Next Generation Utility Communication System Distribution Substation Security Technology 10 Microgrids 202,000 smart lighting controls 1,000 LED replacements 4 years for Phase 1 $52M 4 Years for Phase 1 $30M Replacement of existing system 4 Years $69M Technology deployed in up to 100 critical substations 4 years for Phase 1 $30M $1.5 million per year ongoing O&M $2.1 million per year ongoing O&M No incremental increase in ongoing O&M $1million $400,000 per year ongoing O&M

13 AEP Ohio s Commitment to Technology AEP Ohio is committed to using advanced technology to expand the services it provides its customers and to enhance its customers experience In addition, AEP Ohio is committed to support the success of the Smart Columbus challenge In December 2015, the United States Department of Transportation ( DOT ) announced a federal grant, the Smart City Challenge, to award $40 million to a single U.S. city to implement new technologies and innovative techniques to improve its transportation system. The DOT received seventy-eight applications from cities wishing to participate in the Smart City Challenge, and after narrowing the applications to seven finalists, the DOT selected Columbus, Ohio and the surrounding area as the winner on June 23, 2016.

14 Smart Columbus As explained by the Department of Transportation (DOT), the goals of Columbus s winning Smart City proposal are to demonstrate how advanced data and intelligent transportation systems (ITS) technologies and applications can be used to reduce congestion, keep travelers safe, use energy more efficiently, respond to climate change, both connect and create opportunities for underserved communities, and support economic vitality. The Smart Columbus program is also intended to provide safety improvements, enhance mobility, increase ladders of opportunity by incentivizing reinvestment in underserved communities, reduce energy usage, and address climate change. Detailed information about the Smart City Challenge can be found on the U.S. Department of Transportation s website:

15 Plug-In Electric Vehicle Charging Stations A key factor to promote PEV adoption is increased investment in charging station infrastructure PEVs are estimated to emit approximately 60 percent of the CO2 emissions of internal combustion vehicles 1 PEVs can be expected to cost approximately $1.00 per gasoline-gallon equivalent in electricity costs, providing a significant boost in average incomes and a reduction in petroleum imports 2 AEP Ohio estimates that, at the conclusion of deployment, avoided greenhouse gases for the electric vehicle charging station component of the Plan will be approximately 10,283 Tons per year. There would also be avoided carbon monoxide, particulate matter, and other emissions, which have not been estimated at this time. 1 U.S. Department of Energy, Alternative Fuels Data Center, Emissions from Hybrid and Plug-in Electric Vehicles (June 2016), available at 2 This assumes 290 watt-hours per mile, conventional vehicle mileage of 29 miles per gallon, and 12 cents per kilowatt-hour electricity cost. See Electric Power Research Institute, Total Cost of Ownership for Current Plug-in Electric Vehicles (2014), available at

16 Microgrids Microgrid implementation for critical community facilities Police and Fire Grocery and Gas Social Service Agencies Sewer and Water facilities Microgrid benefits Improved resiliency and reliability for critical infrastructure Reduced system peak demands Integration of intermittent renewable generation Clean energy generation and reduced emissions AEP Ohio estimates that, at the conclusion of deployment, avoided greenhouse gases for the microgrid component of the Plan will be approximately 3,176 Tons per year. There will also be some avoided sulfur dioxide, particulate matter, and other emissions, which have not been estimated at this time.

17 Smart Street Lighting Benefits of Smart Lighting Rapid Light Repair Controls let Company know power is out sooner Energy Saving through faster detection of day burners Increased customer satisfaction and operational savings through few call center requests Increased efficiency on detecting reason for outage Potential future use for dimming lights when not needed (the Company will not utilize this immediately) Faster response to lighting restoration AEP Ohio estimates that, at the conclusion of deployment, avoided greenhouse gases for the smart street lighting component of the Plan will be approximately 133 Tons per year. There will also be some avoided sulfur dioxide, particulate matter, and other emissions, which have not been estimated at this time.

18 Next Generation Utility Communication System Provide reliable voice communications in order to ensure the safe and efficient operation of the distribution grid by Company employees and contractors Field crews and personnel have the ability to initiate an emergency call for help NextGen UCS will provide coverage for more than 90% of AEP Ohio s service territory.

19 Security for Distribution Substations AEP Ohio proposes to install modern intrusion deterrence and detection technology to protect critical distribution substations from theft and vandalism AEP Ohio has experienced more than 250 incidents over the last eight years of individuals scaling or cutting substation fences to steal copper wiring AEP Ohio has also experienced more than 50 additional acts of vandalism and other theft at its substations Over the last ten years,17 AEP Ohio customers have experienced nearly 17 million customer minutes of interruption (CMI) associated with vandalism and theft at distribution substations

20 Proposed ESP III Ext. Bill Impact Year 1 Columbus Southern Power Rate Zone SSO Monthly Bills Household Current Proposed Change Tariff 1,000 kwh usage $134 $ % R-R Bill 2,000 kwh usage $254 $ % R-R Bill 4,000 kwh usage $495 $ % R-R Bill Small Business 1,000 kw demand and 100,000 kwh usage $15,349 $15, % GS-2 Primary 1,000 kw demand and 350,000 kwh usage $33,108 $32, % GS-3 Primary Industrial Business 20,000 kw demand and 8 million kwh usage $552,042 $528, % GS-4 20,000 kw demand and 12 million kwh usage $791,094 $756, % GS-4 Ohio Power Rate Zone SSO Monthly Bills Household Current Proposed Change Tariff 1,000 kwh usage $142 $ % RS Bill 2,000 kwh usage $271 $ % RS Bill 4,000 kwh usage $527 $ % RS Bill Small Business 1,000 kw demand and 100,000 kwh usage $16,933 $16, % GS-2 Primary 1,000 kw demand and 300,000 kwh usage $32,692 $32, % GS-2 Primary Industrial Business 20,000 kw demand and 8 million kwh usage $608,677 $585, % GS-4 Transmission 20,000 kw demand and 12 million kwh usage $876,246 $841, % GS-4 Transmission

21 This presentation is based on AEP Ohio s understanding of the issues and rulings of current and prior cases before the Public Utilities Commission of Ohio, some of which may be subject to change or clarification. Further, the presentation is not attempting to address legal issues or impose any obligations on the Company that do not otherwise exist.