SGCC PEER CONNECT WEBINAR: BENEFITS ANALYSIS. June 5, 2013

Transcription

1 SGCC PEER CONNECT WEBINAR: BENEFITS ANALYSIS June 5, 2013

2 Today s Presenters Patty Durand Executive Director / Moderator Smart Grid Consumer Collaborative Barbara Leary Sr. Director, Marketing & Communication Florida Power & Light Company Jim Meadows Director, SmartMeter Project Pacific Gas & Electric Company

3 Housekeeping You will receive a copy of the slides To the you used to register You can ask questions as we go along Simply type into the question box, as we will explain or raise questions during the Q&A We will answer all the questions submitted If we are unable to get to all the questions, they will be answered individually after the presentation

4 Questions & Audio If this is what you see Click on the orange arrow to expand your dashboard. In order to ask questions over the phone, please log in with your Audio Pin Click on the + sign to open up the questions box. Use the Questions box at any time to type questions. We will answer questions during a Q&A near the end of the call. Yes, you will receive the slides after the webinar.

5 Agenda 1. Benefits of grid modernization Third-party perspective 2. FPL Energy Smart Florida Realizing benefits Operational efficiency & reliability 3. PG&E New Products & Services Enabled programs Smart grid journey 4. Q&A Session

6 Grid Modernization: Investments paying off Operations and Maintenance Savings: Utilities are realizing 13% to 77% reduction in meter operations cost --- and 12% - 59% reduction in vehicle miles driven, fuel consumption and CO 2 emissions --- from deploying AMI systems. (Source: Smartgrid.gov. Operations and Maintenance Savings from Advanced Metering Infrastructure, Initial Results. Dec. 2012) Reductions in peak demand: Utilities offering time-based rates, AMI and customer-based systems are realizing as much as 37% reduction in peak demand during peak hours. (Source: Smartgrid.gov. Demand Reductions from the Application of Advanced Metering Infrastructure, Pricing Programs, and Customer-Based Systems Initial Results. Dec. 2012) Reliability improvements: Utilities employing distribution automation, primarily automated feeder switching, cut the number of outages by nearly 50%, and reduced duration of outages for their customers by as much as 15%. (Source: Smartgrid.gov. Reliability Improvements from the Application of Distribution Automation Technologies Initial Results. Dec. 2012)

7 Grid Modernization: Other benefits A smart grid reduces CO 2 emissions: A fully-deployed smart grid could reduce CO 2 emissions from the electricity sector in the U.S. by 12% - 18%. (Source: Pacific Northwest National Laboratory. The Smart Grid: An Estimation of the Energy and CO2 Benefits. Jan. 2010) A smart grid gives consumers control over their power bill: AMI and customer-based systems allow consumers to understand how much energy they are using at any time and reduce that usage if desired. (Source: Smart Grid Consumer Collaborative. Consumer Benefits Fact Sheet. 2011) A smart grid enhances our energy independence: Smart grid safeguards our nation s position at the forefront of the world s transition toward a clean energy future. (Source: Smart Grid Consumer Collaborative. Consumer Benefits Fact Sheet. 2011)

8 Grid Modernization: A market opportunity $494 billion in cumulative revenue: The market for smart grid technologies will grow from $33 billion annually in 2012 to $73 billion by the end of 2020, totaling $494 billion in cumulative revenue over that period. (Source: Pike Research, part of Navigant. Smart Grid Technologies. Q1 2013) Smart grid sensors are big business: By 2014, research firm IMS Research predicts that the smart grid sensors market will more than double in size from estimated 2012 levels, with annual revenue topping $100 million for the first time in (Source: IMS Research. The North American Market for Smart Grid Sensors June 2013) Renewables show big potential for business: According to Ernst & Young, the U.S. recently unseated China as the most attractive country in the world for renewable energy investment. (Source: Ernst & Young. Renewable Energy Country Attractiveness Index (RECAI). May 2013.)

9 Speaker #1 Name Background Barbara Leary Sr. Director, Marketing & Communication Florida Power & Light Company Joined FPL in March 2008 as Senior Director, Marketing & Communication, in Juno Beach, Fla. Responsibilities included leading the team that provided communication support for Customer Service, Distribution and Transmission. Led strategy and execution of customer education program for FPL's $800 million smart grid rollout, which included 4.5 million smart meters. Formerly held corporate communications management positions with BASF Corporation, Lexmark International and Ketchum.

10 Florida Power & Light is one of the largest utilities in the U.S. Florida Power & Light (1) Vertically integrated, retail rateregulated 4.6 MM customer accounts 24,057 MW in operation $10.1 billion in operating revenues $34.9 billion in total assets Lowest bills of all 55 utilities in Florida; highest reliability 10 (1) All data as of December 31, 2012; operating revenues for the 12 months ended December 31, 2012

11 Our objective for Energy Smart Florida was to deploy, from power generation to the meter, advanced technology that would provide a solid foundation for long-term service improvements Vision Reduce outages, improve restoration and enhance service for our customers Provide customers with information to better manage their energy usage and monthly bills Achieve operational efficiencies and savings to help keep customers bills among the very lowest in Florida Continue to integrate the use of new technologies in all aspects of operations to optimize their value All customers will benefit from FPL s investments in smart grid 11

12 Energy Smart Florida integrates a range of advanced technologies that enable tangible customer benefits Completed to date: Installation of 4.5 million smart meters for residential and business customers Installation of more than 10,000 intelligent devices Enhancements to centers that monitor the performance of the grid 12

13 Our $800 million smart grid deployment was supported by a $200 million DOE grant; the remainder (about $645 million) is funded through base rates Incremental Investments Funded by the DOE Grant ($MM) Transmission/Substation Intelligence - $79 Distribution Intelligence - $40 Other (incl. Home Area Network Pilot) - $9 13 Accelerated smart meter deployment - $37 N = $200 million Enhanced Performance and Diagnostic Centers - $11 Commercial/Industrial Meters - $24 For the smart meter deployment, we made our case to regulators based on anticipated operational efficiencies

14 More than four million customers with activated smart meters now have the ability to make more informed choices about their energy use Initial Benefits Ability to prevent many outages and restore power more efficiently More information and control for customers Smart meters provide customers with information to help them better manage their energy usage and monthly bills Greater convenience We no longer need to access customers properties every month to read their meters (99.9% remote billing read rate) Enhanced customer service and greater efficiency Both customers and FPL reps have detailed usage information to resolve issues more efficiently Smart meters enable us to reduce electricity theft - a cost that is borne by all customers We will no longer need to estimate bills due to meters being inaccessible to meter readers (reduced estimated bills by 367,000 in two years) 14

15 Project Status Completed installation of 4.5 million smart meters and the DOE-funded smart grid enhancements We have completed the initial integration of smart grid technology into our operations We are finding new ways to derive the full value from our investments for our customers 15

16 Smart grid and smart meters are delivering on their expected benefits Current Functional Improvements Operational Efficiency Grid Management Customer Service Improvements Remote Meter Reading Enhanced Theft Detection Meter Reading improvements in read rates (99.9% remote billing read) Billing improvements using remote readings to complete service orders Real-time Monitoring Predictive Maintenance Outage Prevention Outage Identification Energy Dashboard Proactive Ticket Creation Outage Verification Restoration Confirmation No longer need to access property every month to read meters Reduced estimated bills by $367,000 in two years 16

17 Saved 42,000 customers an average of two hours of outage time through our ability to ping the meter Automated feeder switches prevented 200,000+ customer interruptions More than 800,000 customers have used the Energy Dashboard More than 250,000 customers have already benefited from proactive ticket creation ( last gasp ) 17

18 Speaker #2 Name Background Jim Meadows Director, SmartMeter Project Pacific Gas & Electric Company Been on PG&E SmartMeter Project since Developed the business case and regulatory filing for Project Benefits Realization mechanism. Served extensively during the planning and deployment of SmartMeter infrastructure installation: mesh network equipment, mesh electric meters, gas metering equipment. Provided expert policy testimony to the California Public Utilities Commission on implementing a SmartMeter Opt-Out program. 20 years of experience as a capital project manager.

19 Pacific Gas and Electric Company Ranked the greenest utility in the United States in 2009 and million customer accounts serving 15 million people 70,000 sq mi with diverse topography and climate zones Integrated utility with generation, transmission, electric and gas distribution to: Service to retail customers; as well as community choice aggregation customers 70,000 solar customers De-coupled revenues / sales 19

20 SmartMeter Rollout 2005: PG&E field pilot 2006: Full meter deployment begins 2007: Customer online access to interval usage data 2008: SmartRate (CPP) tariff 2009: Remote electric connect / disconnect 2009: Outage management integration 2011: Operations center opens 2012: Opt-Out program 2012: Green Button 2012: Net metering (solar) 2013: Home area network PG&E: 10 million meters

21 Today: My Energy Customer Portal Secure customer access Similar home comparison Energy user by hour (electric) or day (gas) View by year, bill or day Temperature overlay 2.3 million My Energy accounts 2012 Results: 244,000 visits per month 129,000 new (1 st time) visitors a month 21

22 Today: Energy Alerts California uses a 5 tiered usage structure. Higher tiers have higher rates. Energy Alerts provide customers an early warning of high usage When actual usage-to-date crosses higher tiers When usage is forecast to cross higher tiers by end of billing period Delivered via: Text message Outbound phone call Over 77,000 of PG&E s customers signed up for Energy Alerts 22

23 Today: Green Button for Customers Download up to 13 months of data Send personalized energy to third parties Open source format Since its launch in 2012, over 82,000 customers have clicked the Green Button to download their data from PG&E s Website 23

24 12 AM 1 AM 2 AM 3 AM 4 AM 5 AM 6 AM 7 AM 8 AM 9 AM 10 AM 11 AM 12 PM 1 PM 2 PM 3 PM 4 PM 5 PM 6 PM 7 PM 8 PM 9 PM 10 PM 11 PM Kwh 12 AM 1 AM 2 AM 3 AM 4 AM 5 AM 6 AM 7 AM 8 AM 9 AM 10 AM 11 AM 12 PM 1 PM 2 PM 3 PM 4 PM 5 PM 6 PM 7 PM 8 PM 9 PM 10 PM 11 PM Kwh Today: SmartRate Peak Price Tariff Prior to SmartRate Event Critical Peak Period 0.0 July 7th 10 Day Average 4.0 During SmartRate Event Critical Peak Period 0.0 July 8th July 9th More than 117,000 customers currently enrolled in the SmartRate program Results: 13% load reduction, 94% plan to continue 24

25 Impact on Utility Operations Electronic Billing: To date, eliminated more than 600 meter-reading positions and reduced delayed bills by 78 percent Remote Connect / Disconnect: Reduced average time to restore service from 73 minutes to under 4 minutes Meter Power Status Check: Pro-actively check meters for outages before issuing field orders Outage Restoration Validation: Provides critical data to help scope outages and restore power more quickly 25

26 Customer Engagement Smart Grid Journey Today Integrate existing services to new platform Automated meter reading Automated service connect Near Term Transform existing services Home energy management Plug-in hybrid electric vehicle SmartCharge Future Enable future services and foster innovation Integrated renewables management Integrated local generation and storage Distribution Automation Years 26

27 Variability, Unpredictability PG&E is committed to making a policy mandate of 33% renewable generation by 2020 Wind MW Each day is a different color. Day 29 Day 5 Day 26 Average Source: CAISO Hour Day 9 PV Solar Cloudy Day Output 27

28 SmartMeter Customer Benefits Customer Service Provide our customers more convenience and better, faster service Choice and Control Provide our customers greater choice and more control over their energy bills Enable the Future Put in place a platform for innovation Faster power restoration Faster startup of service after moving Faster problem resolution Better billing Complete energy usage information and analysis tools Proactive Energy Alerts New pricing options Better options for customers to manage their energy use Distributed generation and storage Support demand from electric vehicles Enable renewables 28

29 Takeaways & Questions

30 2013 Annual Members Meeting Save the date: September 24 & 25, Washington, D.C. Pepco Headquarters, Edison Conference room Alignment around the Consumer Value Proposition: The Smart Grid Value Proposition clearly indicates the Smart Grid s unique value-creating features or in other words, a consensus of the sum total of benefits customers will receive. Important to have a strong value proposition so benefits can be expressed from the consumer s perspective and the industry can collectively talk about the experiences and benefits that consumers will have with grid modernization.

31 Last but not Least: Smart Energy Corps Smart Grid awareness is still low: We know more than 75% of consumers haven t heard of smart grid or don t know what it is SGCC is in a unique position to do something about it Smart Energy Corps will create a national, credential/certification program to train the trainer to teach electricity and smart grid literacy to youth, adults, community groups Program development and launch planning currently underway contact program lead Annie Haas annie.haas@smartgridcc.org to get involved

32 Thank you! You will receive a copy of the slides to the address you used to register. Barbara Leary Sr. Director, Marketing & Communication Florida Power & Light Company barbara.leary@fpl.com Jim Meadows Director, SmartMeter Project Pacific Gas & Electric Company J7M2@pge.com Links to Resources: Florida Power and Light Company s Energy Smart Florida resource library: Pacific Gas and Electric Company s What is Smart Grid website: