Energy and Extractives Global Practice Group South Asia Region (SAR) Survey of International Experience in Advanced Metering Infrastructure and its Implementation November 2018 Disclaimer This document has been prepared for the sole purpose of sharing the results of a global AMI survey and resulting insights related to the AMI strategy for India and South Asia. This does not endorse individual vendors, products or services in any manner. Therefore, any reference herein to any vendor, product or services by trade name, trademark, manufacturer or otherwise does not constitute or imply the endorsement, recommendation or approval thereof. Copyright © 2018 The International Bank for Reconstruction and Development THE WORLD BANK GROUP 1818 H Street, N.W. Washington, D.C. 20433, U.S.A. All Rights Reserved The findings, interpretations and conclusions expressed in this paper are entirely those of the author(s) and should not be attributed in any manner to the World Bank, or its affiliated organizations, or to members of its Board of Executive Directors or the countries they represent. The World Bank does not guarantee the accuracy of the data included in this publication and accepts no responsibility whatsoever for any consequence of their use. The Boundaries, colors, denominations, other information shown on any map in this volume do not imply on the part of the World Bank Group any judgment on the legal status of any territory or the endorsement or acceptance of such boundaries. The material in this publication is copyrighted. However, it may be reproduced in whole or in part and in any form for educational or non-profit uses, without special permission provided acknowledgment of the source is made. Requests for permission to reproduce portions for resale or commercial purposes should be sent to the Manager, Energy and Extractives Global Practice (South Asia) at askeex@worldbankgroup.org. The World Bank encourages dissemination of its work and will normally give permission promptly. The Manager would appreciate receiving a copy of or link to the publication that uses this material for its source sent in care of the address listed. All images remain the sole property of their source and may not be used for any purpose without written permission from the source. Table of Contents Acknowledgements vii Executive Summary ix 1. Advanced Metering Infrastructure: Background  1 1.1. From AMR to AMI 1 1.2. AMI Deployment Overview 2 1.3. International Experience in Promoting and Regulating AMI: Overview 6 2. Advanced Metering Infrastructure 11 2.1. Architecture and Technology 12 2.2. Systems Integration and Applications 20 3. Security and Risk Considerations 23 3.1. Cyber Security 23 3.2. Risks Related to Implementation and Operations 24 4. Implementation Experience by Utilities 27 4.1. Resources and Change Management 28 4.2. Project Management and Governance 30 4.3. Case Studies 31 5. Procurement 71 5.1. Ownership Models 73 5.2. Business Case 73 5.3. Solutions/Packaging 74 5.4. Cost Recovery 75 References and Links  77 Appendix A. Security Domains and Strategies  79 Appendix B. Glossary and Abbreviations  82    Table of Contents  iii List of Tables Table 1: Comparison of Smart Meter Communication Architecture 13 Table 2: Vendor Choices by Selected Utilities 14 Table 3: Comparison of FAN Technologies 15 Table 4: Communications Layer for Selected Utilities 16 Table 5: HES/MDAS Configurations by Utility 18 Table 6: HES/MDAS and MDMS Selections by Utility 19 Table 7: AMI Integrated Capabilities by Utility 20 Table 8: Resource and Change Impacts of AMI Implementation 29 Table 9: AMI Implementation Details – Oncor 33 Table 10: ComEd: Cost/Benefit Analysis for AMI 36 Table 11: AMI Implementation Details – ComEd 37 Table 12: SCE SmartConnect Costs and Benefits 41 Table 13: AMI Implementation Details – SCE 41 Table 14: AMI Implementation Details – BG&E 44 Table 15: Electrobras Project Funding 46 Table 16: AMI Implementation Details – Electrobras 47 Table 17: AMI Implementation Benefits – ENEL 50 Table 18: AMI Implementation Details – ENEL 51 Table 19: PECO Smart Meter Deployment Cost-Benefit Analysis 53 Table 20: PECO Estimated Cost Recovery Estimates 54 Table 21: AMI Implementation Details – PECO 55 Table 22: AMI Implementation Details – AusNet 59 Table 23: AMI Implementation Details – Consumers Energy 61 Table 24: AMI Implementation Details – PEPCO 63 Table 25: AMI Implementation Details – CESC 65 Table 26: AMI Implementation Details – TPDDL 67 Table 27: Pilot Projects – NSGM 68 Table 28: AMI Implementation Benefits Realized in CESC, Mysore 69 Table 29: Procurement Approaches 72 Table 30: Cost Recovery Models by Region 76 Table A-1: Developing a Cyber Security Strategy for Utilities Deploying AMI 79 iv  Survey of International Experience in Advanced Metering Infrastructure and its Implementation   List of Figures Figure 1: Summary of Smart Meter Deployments by Surveyed Utilities x Figure 2: AMI Initiatives Worldwide 3 Figure 3: Key Questions Regarding AMI Deployment 4 Figure 4: AMI Rollout Approaches 4 Figure 5: Workforce and Inventory Management Solutions 5 Figure 6: AMI Deployment Approach Timeline 5 Figure 7: AMI Deployments in the United States and the European Union 8 Figure 8: AMI Initiatives in India 9 Figure 9: Typical AMI Infrastructure 11 Figure 10: Meter Selection Considerations 13 Figure 11: HES/MDAS and MDMS Integration 19 Figure 12: Security Risks 24 Figure 13: Core Security Principles 25 Figure 14: Technologies and Processes to Securely Enable AMI 25 Figure 15: Framework for Assessing Impacts of AMI Implementation 28 Figure 16: Stakeholder and Process Considerations 28 Figure 17: Role of AMI Governance Board 31 Figure 18: Areas of Responsibility for AMI Implementation Projects 31 Figure 19: Oncor Smart Grid Infrastructure 33 Figure 20: ComEd Communication Infrastructure 35 Figure 21: SCE Grid Current State, January 2016 39 Figure 22: SCE Communications Network Overview 40 Figure 23: BGE Smart Grid Reported Costs and Benefits 44 Figure 24: ENEL AMI Network Overview 49 Figure 25: ENEL Investment and Savings Overview 50 Figure 26: AusNet AMI Network Overview 58 Figure 27: AusNet AMI Focus and Benefits 58 Figure 28: Pepco Communications Infrastructure 63 Figure 29: TPDDL AMI Network 66 Figure 30: Qualitative and Quantitative Benefits of AMI Implementation 74    Table of Contents  v Acknowledgements This report was prepared under the guidance of a World Bank team comprising Gailius J. Draugelis, Lead Energy Specialist (co-Team Lead); Rohit Mittal, Senior Energy Specialist (co-Team Lead); Amol Gupta, Energy Specialist (co-Team Lead); Phillip Matthew Hannam, Energy Economist; and Neetu Sharda, Program Assistant. The team is grateful to World Bank Group colleagues who peer reviewed the report: Kwawu Mensan Gaba, Lead Energy Specialist/Global Lead, Power Systems, World Bank; Kelli Joseph, Senior Energy Specialist, World Bank; and Peter Mockel, Principal Industry Specialist, International Finance Corporation. James Victor Pannett, Energy Specialist, World Bank, kindly facilitated the preparation of the Electrobras survey for this report. The team is also most grateful to Chris Marquardt for his invaluable editing of the final report. Demetrios Papathanasiou, Practice Manager, Energy and Extractives Global Practice (South Asia unit), also provided much appreciated guidance and advice for this project. The team benefited from the advice and guidance of the Global Solutions Group, Power Systems, at the World Bank, led by Kwawu Mensan Gaba. The report is prepared based on background study undertaken by Deloitte Touche Tohmatsu India LLP team comprising James Thomson, Principal, US (Project Director), Michael Danziger, Managing Director, US (Team Leader); Anujesh Dwivedi, Partner, India (Team Leader); Ajay Madwesh, Senior Manager, US; Pankaj Kumar Goinka, Senior Manager, India; Peter Schmidt, Manager, US; Kyle Webb, Senior Manager, US; Rohit Deshpande, Specialist, US; Joel Abraham, Consultant, India; which partnered with Tata Power Delhi Distribution Limited (TPDDL) specifically on aspects of metering, billing and collections analytics use cases. TPDDL team was represented by Sandeep Dhamija, Deputy General Manager. The Bank team sincerely appreciates the hard work, dedication and collaborative spirit of the consulting team. Company surveys that were carried out in the spring of 2018 and technical report preparation were carried out by Deloitte Touche Tohmatsu under the guidance of the World Bank team. Findings of the survey and analysis were shared at a workshop in New Delhi on June 8, 2018 with participants from Bangladesh, Bhutan, India, and Nepal. The report was also informed by an industry stakeholder consultation in Jaipur, November 2017, including stakeholders from Bangladesh, India, Nepal, and the United States of America. The Bank team is deeply thankful to all workshop and consultation participants for sharing their invaluable insights and comments. The funding for this report was provided by United Kingdom’s Department for International Development through the World Bank-managed Trust Fund programs – the South Asia Regional Trade and Integration Program and the Program for Asia Connectivity and Trade – and the World Bank.    Acknowledgements  vii Executive Summary This report packages international know-how around expectations. Power distribution utilities in these major steps and key questions to be faced by South countries are facing various traditional challenges Asian utilities in the design and deployment of including high levels of Aggregate Technical and Advanced Metering Infrastructure (AMI). Commercial (AT&C) losses, increased energy theft, poor customer services and operational transparency, The type of data analytics generated by AMI can lead inefficient load management, and unreliable power to a transformation of utilities, and a new generation supply. But electricity customers are not standing still. of demand-side and supply-side efficiency measures, For example, Electric Vehicles (EVs) require adequate policies, and regulations. In addition, greater charging services by the power systems. There is also communication capabilities between the power sector a very clear shift globally towards Variable Renewable and its consumers can create stronger customer- Energy (VRE) systems as the cost of manufacturing provider relationships, greater understanding of needs and installing such systems falls rapidly with volume. and capabilities, and open pathways to innovation. These systems can be deployed at utility-scale, or can Until very recently, communications have been be deployed as hundreds or thousands of distributed, unidimensional, mainly through meter readings and small scale generation units. Consumer electronics billings, which themselves are not ubiquitous in South and electric appliances are also becoming smarter and Asian power markets. Smart technologies enable such able to communicate. As a result, traditional business two-way, game-changing communications within the models are challenged to meet these new customer supply-chain and between electricity suppliers and requirements, prompting a need to reassess how their consumers. Deploying them in a manner that power systems are planned, designed and operated. makes sense for the utility and for the right types of consumers is a challenge because there is limited Governments in most South Asian countries are experience in the region with AMI. supporting utilities by implementing various schemes and regulations to improve their power sectors. Indeed, even as it sorts out persistent challenges, Deployment of AMI/smart meters at scale and at the power industry in South Asia is yet again called an accelerated pace is starting to be more seriously upon to transform itself – driven by technological considered by these Governments. For instance, India advances, decreasing energy intensity, heightened has recently taken concerted efforts to promote environmental awareness, and evolving customer smart meter deployment. Widespread and successful    Executive Summary  ix adoption of smart metering in advanced economies, a notable portion of smart meters deployed globally and the accumulation of important lessons learned, today; these are documented in Section 4 under over the last decade can encourage South Asian “Case Studies”. Figure 1 shows a timeline of smart policy makers to take effective action, overcome meter deployments by the utilities surveyed. challenges, build confidence and define targets that can make meaningful impacts. A second report, Data Analytics for Advanced Metering Infrastructure: A Guidance Note for South Asian Power Utilities (published separately), is World Bank Study structured as a guidance note to assist utility A recent World Bank–funded study, Advanced managers in taking up data analytics systems to Metering Infrastructure and Analytics Guidance realize the full potential of AMI. Study for South Asian Utilities, carried out in 2018, The report was prepared by AMI and utility specialists developed guidance, based on user experience, on from Deloitte under the guidance of a team from the deployment and operation of AMI and analytics the World Bank’s Energy and Extractives Global systems by electricity distribution utilities in India Practice that was based in the World Bank’s offices in and other South Asian countries. The guidance is intended for the ready reference of policy makers and Washington, D.C., United States and New Delhi, India. utility managers. The study was divided into two reports. This report, Main Findings Survey of International Experience in Advanced The following are the key takeaways from the Metering Infrastructure and its Implementation, interviews conducted and analysis performed for this covers international best practices for the end-to- report: end deployment of an AMI system – including such ™™ AMI is not just a means of improving the meter-to- areas as main functions, procurement options, cost cash process; rather, it is an enabler of significant recovery models, and the organizational or functional changes in utility operations technology. changes needed to implement AMI-enabled business processes. For this report, the study team surveyed ™™ Following sizeable implementations across the a variety of international utilities, including several globe, AMI functionalities and technologies have early adopters of AMI, which collectively represent significantly matured and become standardized. Figure 1: Summary of Smart Meter Deployments by Surveyed Utilities 2000 2003 2006 2009 2012 2015 2018 Enel (2001) 32 Mn Aus Net (2006) 0.68 Mn SCE (2007) 5.1 Mn Oncor (2008) 3.5 Mn ComEd (2009) 4.15 Mn BG & E (2010) 1.2 Mn Peco (2012) 0.27 Mn Consumers Energy (2012) 0.83 Mn Electrobras (2016) 0.06 Mn x  Survey of International Experience in Advanced Metering Infrastructure and its Implementation   ™™ Radio Frequency (RF) mesh and cellular have ™™ AMI specifications and design should be aimed emerged as the most prevalent meter-level at a future state of operations to maximize communication technologies. benefits over the project lifetime and minimize ™™ Most utilities that have implemented large the risk of obsolescence. AMI programs have made use of “hybrid” ™™ The secure, end-to-end integration of Head-End communications technologies that include both System (HES) and Meter Data Management RF mesh and cellular networks. System (MDMS) is critical for successful AMI ™™ Large AMI roll-outs will be different from operations. past investment programs handled by ™™ To date, most utilities implementing large AMI utilities. They will require fresh thinking to programs have sourced meters from a relatively develop a technology-leveraged management small number of meter vendors. framework for project governance and ™™ Specialized, GPS-enabled crew and inventory implementation. management solutions are useful for large smart- ™™ Utilities’ choice of communications technologies meter roll-outs. should be based on their specific requirements ™™ “Packaging”, or pooling, of components procured and the current state of product evolution and together has often been used as a mean to market dynamics. minimize integration risks.    Executive Summary  xi CHAPTER 1 Advanced Metering Infrastructure: Background Globally, electric utilities are facing disruptive need has prompted the utility industry to invest challenges that are transforming the power in and foster the development of a measurement generation, transmission and distribution business system with integrated communications that can models and the power sector as a whole. A variety deliver such critical information in real, or near- of factors – migration to cities; deregulation; the real, time. This trend started in the 1990s with need to deploy new infrastructure while managing low-cost, communication-enabled, microprocessor- the old; a changing workforce; and changing demand based protection devices and controllers – including as a result of an evolving residential, commercial and “communicating meters” – being deployed at scale in industrial load mix – have left utilities looking for new place of the existing electromechanical and solid-state ways to cut costs while identifying revenue sources. devices. This technology allowed utilities to employ Advanced Meter Reading (AMR) techniques. The final Simultaneously, the rise of distributed step in the process was the evolution of the “smart” generation – including from Variable Renewable meter, which in turn gave rise to the development of Energy (VRE) sources such as rooftop solar and Advanced Metering Infrastructure (AMI). microgrids – poses a fundamental challenge to the traditional centralized-generation utility models and The remainder of this chapter discusses the history grid operators. of AMR and AMI, examines various questions to do with AMI deployment, and reviews international The growth in electric vehicles and networked, or experience in promoting and regulating AMI. “smart,” appliances, along with the ability to connect vehicles to the grid and control smart appliances remotely is going to add to the challenges utilities are 1.1 From AMR to AMI facing. As these technologies mature, the shapes of both demand and load curves are expected to change For many years before the start of large-scale significantly. implementation of AMI, utilities had effectively used “communicating” electronic meters to measure The changing utility model is driving a deeper need electricity consumption and deliver accurate billing for granular measurement of key parameters on to commercial and industrial customers. This meter- the electrical grid using devices and sensors. This reading approach is generally referred to as advanced    CHAPTER 1: Advanced Metering Infrastructure: Background  1 meter reading or AMR. Using AMR technology more advanced applications. In addition to creating allowed utilities to read meters by simply walking up a means to automatically and remotely measure to the meters with a handheld device or by driving electricity use, it allows utilities to remotely connect by in a vehicle to remotely record consumption data and disconnect service, detect tampering, identify collected by the meters. and isolate outages, and monitor voltage. Other operational applications/benefits include increased Early adopters of AMR were driven to do so to support billing accuracy, time-of-use billing, improved outage increasingly customized rate (tariff) structures and location and restoration, improved power delivery perform more complex billing to improve customer quality, reduced technical and commercial losses, service and meet evolving regulatory demands. and direct load control to manage demand. The changes in the ecosystem introduced more sophisticated rate parameters. AMR also enabled When integrated with customer technologies such as utilities to incentivize commercial and industrial in-home displays and programmable communicating customers to move production to non-peak hours, thermostats, AMI also lets utilities offer all their which helped avoid bringing high-cost peaking customers time-based rate programs and incentives generation online. that encourage them to reduce peak demand and manage energy consumption and costs. At first only the largest utility customers used communicating (and electronic) meters. As the Many utilities that have adopted AMI have managed cost of the technology declined and production to skip the AMR/AMR-plus stage entirely by moving volumes increased over time they were deployed from solid state and electromechanical meters for all customer classes. The subsequent arrival of directly to smart meters. “AMR-plus” technology allowed utilities to have the capability to upload consumption data once a week or once a month in a more automated fashion and more 1.2 AMI Deployment Overview remotely using the utilities’ existing communication 1.2.1 Early Adoption and Proliferation networks. Globally, early adopters of AMI went through multiple Although the AMR and AMR-plus systems reduced cycles of integrations, data management strategies, the number of meter readers required, instances of data storage, and tools due to non-standard “missed” reads (unread or incorrectly read meters), architectures and solutions. The lessons learned by the manual transfer of data, and data quality issues these early adopters helped shape architectures, continued to make it difficult for utilities to ensure integrations and protocols, further improving utilities’ billing accuracy. Also, the data collected in this manner use of analytics and enhancing their ability to extract could not be easily used to enable new applications business value. and analytics. The smaller and mid-market utilities that followed This led to the development of AMI – an integrated these early adopters have been able to select the tested system of smart meters, communications networks, solutions that best meet their needs. Incorporating and data management systems built on two-way lessons learned in terms of architectures, solutions communication between utilities and customers. and data utilization – along with the successful AMI was unlocked by the development of reliable deployment of analytics in developing their business and cost-effective two-way communicating cases – will be particularly important in regions like meters – “smart” meters – that can ensure accurate, Latin America and Asia, where the benefits accruing consistent meter readings that are also ready for from operational savings may be significant but 2  Survey of International Experience in Advanced Metering Infrastructure and its Implementation   Figure 2: AMI Initiatives Worldwide UK China ~3.8 million ~350 million (~15%) (~ 66%) USA ~59 million (~ 47%) Australia % reflects the percentage ~3.3 million of completed AMI rollouts. (~ 40%) India Numbers in Million reflect ~0.5 million smart meters deployed so Europe New Zealand (~ 0.2%) far. ~155 million ~1.2 million ( ~70%) (~ 70%) may not be sufficient to offset the implementation targeted pilot AMI implementations with the intent of challenges of an unfamiliar two-way AMI system. proving a concept solution or solutions for reliability Regulatory regimes could also help to unleash new and scalability before they selected a final architecture value from smart meter use. to implement AMI on a larger scale. As AMI solutions matured and the benefits from the primary drivers The proliferation and maturity of AMI solutions started to accrue, these utilities implemented continue to grow globally year after year. Figure 2 analytics to realize significant improvements to their shows the breadth of AMI initiatives across the world metering, grid and enterprise operations. as well as the levels of penetration of smart meters. 1.2.3 Key Deployment Questions 1.2.2 Implementing Software for Analytics Deployment models have varied as utilities have Global efforts to deploy AMI are among utilities’ incorporated lessons learned from early adopters. most important initiatives as they seek to modernize Among the key lessons is that using a deployment the electric grid. However, smart-meter data rarely process and model with a daily review of metrics provides large-scale benefits when used in isolation. generally ensures a successful roll-out. Implementation of software solutions that provide context to that data help realize true value of AMI. Also, utilities must ask themselves the following key deployment questions when picking a model: Across Europe, the United States, Canada and ™™ Who will receive meter deployment? Australia, the early adopters of AMI improved traditional metering by implementing a form of ™™ Are the technology and execution proven? communicating meter infrastructure. AMR and AMR- ™™ What is the approach to meter deployment? plus were the more common approaches, but custom ™™ What metrics will be tracked? solutions were not uncommon. During the early evaluation of solutions, most utilities ran smaller, Figure 3 breaks these questions down in more detail.    CHAPTER 1: Advanced Metering Infrastructure: Background  3 Figure 3: Key Questions Regarding AMI Deployment What metrics will be tracked? What approach to use What roll out metrics for meter deployment? are created and Are the technology What is the scope and monitored ? and execution proven? schedule of the roll • Meters deployed Who will receive What are the risks in outs? What resources and tested per day a meter? implementing the are needed ? • Crew performance Will the overall technology ? • Roll outs schedule • Schedule, Budget consumer benefits • Unproven/ • Region/geography reflect regulatory or obsolescence issues • Meter provisioning, policy requirements ? • Qualified reference testing • Scope: Residential, implementations • Project Management Commercial and • Vendor presence, • Crew management Industrial availability and • Segmentation and delivery capabilities priority Anticipated volume Vendor evaluation and Provisioning, schedule Tracking to Critical and measurements delivery capabilities and resources Success criteria 1.2.4 Roll-Out Approaches: By Geography basis. On the other hand, in more concentrated urban or by Connected Load/Revenue areas, the roll-out may be most efficiently completed using a connected load/revenue approach – that is, by Utilities planning AMI implementation generally implementing AMI first for the greatest consumers of consider one of two main roll-out approaches, depending on the utility’s area of operations. A widely power (industrial/commercial customers), followed dispersed service area may be best served by using a by implementation across residential consumers. geography-based approach to the roll-out, in which Figure 4 describes the advantages and disadvantages service zones are upgraded to AMI on a zone-by-zone of each approach. Figure 4: AMI Rollout Approaches AMI Rollout Consumer Selection Approach By Geography By Connected Load/Revenue • Supports multiple • Cost benefit on • Enhanced cost • FAN - Cellular FAN technologies small consumers benefit by securing technology only • Enabler to accurate may not be larger revenue • Continuance of Energy Audits justified share manual meter • Usage of AMI data • Difficult O&M reading for OT (OMS/DMS) due to larger • Simultaneous • Elimination of manual geographical upskilling of staff meter reading spread of smart in all geographies meters Note: DMS = distribution management system; FAN = field area network; O&M = operations and maintenance; OMS = outage management system; OT = operational technology. 4  Survey of International Experience in Advanced Metering Infrastructure and its Implementation   Figure 5: Workforce and Inventory Management Solutions Workforce & Inventory Management Solutions for Smart Meter Deployments Benefits Traditional issues Field Teams Deployed with Pre-Installed Apps • Lack of visibility of field • 50+ % higher activities, e.g. productivity due to customers visited, constant visibility, duration Details uploaded to Utilities push customer route optimization utility CIS without any details for meter • Poor quality of job due replacement drive to • 20 times more to lack of QC/ manual intervention accurate field data the field crews traceability • GIS mapping of • Incorrect/delayed consumers meter change • Easy scalability (for particulars leading to managing mass billing errors deployments) On-site data capture on GPS enabled devices meter replacement along give full visibility of Examples: Corex and Aclara (Profield) with pictorial evidence, field team locations to GPS location etc. utilities 1.2.5 Workforce and Inventory 1.2.6 Pilot Projects: Deployment Timeline Management Solutions Figure 6 illustrates a typical process used by many Because utilities are increasingly using specialized early-adopter utilities when using a pilot project to solutions for managing large smart-meter deployment validate the technology selection and implementation programs, utilities must also look into workforce and approaches. The utilities that followed early adopters inventory management solutions, as described in were often able to avoid a costly pilot phase or use a Figure 5. shortened pilot phase. Their enterprise architecture Figure 6: AMI Deployment Approach Timeline Communicating Meters (AMR/AMR+) AMI Pilot Full AMI Roll Out Analytics Non-Communicating Meters (Solid State, Electromechanical) Use of communicating Earlier adopter With technology, Focus now is in meters were prevalent utilities performed scalability and building advanced across North America extensive pilots prior change management analytical solutions and Europe. to full roll out while identified, utilities and applications to Justification for the followers rolled out AMI at full gain deep insights utilities that were still benefitted from the scale gaining to increase using Solid state or learnings and operational and reliability and electromechanical maturity of solutions enterprise level organizational meters was easier leading to shorter insights from the efficiency than the utilities that pilots or skipping the smart meter data had an AMR/AMR+ pilot phase through use of AMI implementation altogether enabled applications    CHAPTER 1: Advanced Metering Infrastructure: Background  5 implementation and stabilization phases were shorter, policy of modernizing its electricity transmission and their product and service offerings had matured and distribution systems to create a smart electricity around the time they initiated their deployments. grid. The American Recovery and Reinvestment Act of 2009 (ARRA) accelerated the development While utilities have pushed to implement AMI to of smart grid technologies, spurring an investment realize improvements such as billing accuracy and grid of $4.5 billion to modernize the electricity grid reliability, regulatory support has sometimes lagged. In and implement demonstration and deployment the United States, some utilities invested capital while programs (as authorized under Title XIII of working to gain regulatory or legislative approval; EISA). Through such programs as the Smart Grid ultimately, the reasons for gaining regulatory support Investment Grant (SGIG),1 this funding facilitated varied from improved grid reliability to greater the installation of approximately 15 million smart competition at the retail level. Outside the United meters by the end of 2013, in addition to the 35 States, regulatory support has varied from support million smart meters utilities had installed through a for improved energy distribution and reduced energy traditional rate-case-based2 cost-recovery process. losses (e.g., electricity theft), to a more consistent To facilitate urgently needed standardization, EISA approach that supports billing accuracy, net metering, tasked the National Institute of Standards and and prepay mechanisms. Adoption of AMI today Technology (NIST) with developing a framework continues to involve a give-and-take between benefits of protocols and standards that would allow the accruing to utilities and regulatory protection for interoperability of smart grid devices and systems. consumers. This is the subject of the next section. NIST developed a plan with three objectives: ™™ To accelerate the identification of, and consensus 1.3 International Experience in on, smart grid standards; Promoting and Regulating AMI: ™™ To establish a robust Smart Grid Interoperability Overview Panel (SGIP) to sustain the development of the many additional standards that will be Governments can play an important role in needed; and encouraging the deployment of smart meters through directives, tax structures, cost recovery ™™ To create a conformity testing and certification mechanisms and funding. Though the regulations in infrastructure. the various countries differ, there is a broad agreement This model of a simultaneous release of incentives, on the main areas of regulation worldwide – a pre-defined time window, and standards including defining minimum requirements, ensuring conformance fostered an acceleration in product interoperability, defining the scope of data privacy, development among vendors supplying utilities, and establishing long-term cost-benefit metrics. paving a path away from custom solutions. Further, As a result, global standards are emerging that are it motivated the “follower” utilities to utilize the reducing the cost of AMI deployments. Long-term one-time available incentives to implement AMI cost-benefit analyses of AMI projects worldwide within the time window as a part of their smart grid have generally resulted in a positive business case. initiatives. 1.3.1 United States, Canada and the 1 See https://www.smartgrid.gov/recovery_act/overview/smart_ European Union grid_investment_grant_program.html. 2 A rate case is the formal process public utilities must use to set the rate In the United States, The Energy Independence and at which they are allowed to charge consumers for their service. Rate cases are an important instrument of government regulation of such Security Act of 2007 (EISA) codified the nation’s industries. 6  Survey of International Experience in Advanced Metering Infrastructure and its Implementation   It should be noted that state-owned U.S. utilities with constrained budgets often pool their procurement Box 1: Pooled Procurement by State-Owned U.S. needs; see Box 1. Utilities with Constrained Budgets Utilities in the United States are segmented into In Canada, at the national level, energy policy Investor-Owned Utilities (IOUs), public power is driven by climate change targets. In 2010 the (municipal) utilities, and cooperatives. There are over Canadian government announced a target of 90 3,000 utilities, of which the 240 or so IOUs account for percent emission-free electricity by 2020. Federal over 70 percent of all energy; thus, this report focuses regulations require that plants reduce Greenhouse on the IOUs. However, it is important to point out Gas (GHG) emissions to no more than 420 metric how the municipal and cooperative utilities operate tons (on average) of CO2 per gigawatt hour of differently. Because they are smaller and tend to have electricity produced – though most provincial more constrained budgets, they procure and operate policies are actually accelerating the transition from systems by tendering their pooled requirements. The coal in their jurisdictions, with Ontario being the typical vendors who serve this market – such as Milsoft, first to eliminate coal-based generation in 2015. The Efacec (ACS), Tantalus and Sensus – are different from grid modernization mandates, coupled with a larger the vendors serving the IOUs in that they provide environmental initiative, have led to the deployment hosted or centralized solution deployment for AMI and operations. Also, the National Rural Electric Cooperative of more than 7.5 million smart meters in the provinces Association (NRECA), a government entity, provides of Ontario and British Columbia. the engineering, architecture and testing infrastructure In the European Union (EU), the European needed by the cooperative utilities. Commission’s Directive 2009/72-73/EC – called the “20-20-20 directive” because it targets a 20 percent (DSOs).4 The imperatives of distributed energy reduction in GHG emissions from 1990 levels, resources (DER), energy efficiency and AMI were a 20 percent reduction in primary energy use, and a 20 directed at the national and regional DSOs. Member percent penetration of renewable energy by 2020 – states such as Sweden, Finland, Italy, Netherlands, is expected to result in the deployment of close to Estonia and Austria – where the DSOs had completed 200 million meters by 2020. The directive also created smart meter deployment – proceeded with rollouts common rules for an internal market in electricity using the traditional cost-recovery and justification (laying the groundwork for an efficiently managed model. By contrast, DSOs in member states such as electricity network) and encourages the introduction Belgium, Germany, Portugal, Poland and Cyprus have of smart grids, distributed generation and energy found it difficult to justify the move to AMI and smart efficiency. In order to optimize the use of electricity, meter deployment because the benefits have not it encourages the introduction of “innovative” been commensurate with costs – in part because the pricing schemes and prescribes Cost-Benefit local regulators have provided no incentives to help Analyses (CBA) of large-scale smart meter roll-outs DSOs justify the required expenditure. Similarly, DSOs to be carried out.3 in countries such as Hungary, Bulgaria and Lithuania have yet to start the process or are at a very early The complex alignment of EU directive and country stage of deployment as the incentives and benefits regulations have led to a variety of approaches do not appear to justify the expenditure. impacting Europe’s distribution systems operators 3 European Parliament, Directorate General for Internal Policies, Policy 4 The term DSO is generally used in Europe to refer to “distribution Department A: Economic and Scientific Policy, "Effect of smart systems operator.” A DSO in the U.S. context is the distribution metering on electricity prices" (Brussels: European Parliament, 2012). side of a transmission and distribution operating company. In some See http://www.europarl.europa.eu/document/activities/cont/201 contexts – including South Asia – the term Disco or discom is used, 202/20120223ATT39186/20120223ATT39186EN.pdf. meaning “distribution company”.    CHAPTER 1: Advanced Metering Infrastructure: Background  7 Figure 7: AMI Deployments in the United States and the European Union AMI Deployed in USA 120 Smart Meters Deployed (Millions) 100 US Smart Grid Investment Grant 80 60 40 20 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 YTD Cumulative Smart Meters Deployed AMI Contracted in Europe Smart Meters Contracted (Millions) 120 100 European Commission’s Directive 2009/72-73/EC 80 60 40 20 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 YTD Cumulative Smart Meters Contracted In summary, the experiences of the United States, 1.3.2 Smart Metering in India Canada and the European Union show that leading utilities and DSOs are able to justify AMI deployment As India continues to restructure and invest in through traditional cost-recovery models, with its electricity delivery system, its policy makers benefits accruing sooner in some geographies are incentivizing the use of VRE and customer than in others. Often, the local regulators work empowerment as a part of reducing the total with the utilities to adjust schedules and scope to technical and non-technical losses. Smart metering accommodate local needs. Additionally, governments is seen essential for realizing the core objectives can act as a catalyst by using a combination of underlying the Ministry of Power’s mandates for incentives and penalties to spur investments power distribution utilities in India. As shown in in AMI; for example, the SGIG program in the Figure 8, recent efforts to promote the deployment United States does appear to have helped increase of smart metering by India’s utilities anticipate AMI adoption. improvements in terms of: 8  Survey of International Experience in Advanced Metering Infrastructure and its Implementation   Figure 8: AMI Initiatives in India UDAY 24x7 Power for All Ujwal Discom Assurance Yojana (Saubhagya Objectives) • 19% AT&C losses by FY19 and • 24 x 7 availability of quality 15% as a longer-term target power to all • Smart meters on all consumers • Advanced OT for ensuring with monthly consumption of continuity and quality of supply 200 units or more • Increased situational awareness for Distributed Energy Resources • Consumer empowerment • Net metering • Value added services to consumers • Self-healing/smart grids Smart Utility 175 GW Renewables Note: AT&C = aggregate technical and commercial; OT = operational technology. ™™ Aggregate Technical and Commercial (AT&C) ™™ The provision of smart and digitally enabled loss reduction – under the Ujwal Discom services to electricity consumers; and Assurance Yojana (UDAY) program; ™™ The ability to absorb Distributed Energy ™™ The ability to continuously (“24 x 7” – 24 hours Resources (DER) generated in downstream a day, seven days a week) provide and monitor villages – including DER generated as a result of the availability of high-quality electricity supply the government’s goal of installing 175 gigawatts to every household – under the Saubhagya5 (GW) of renewable energy capacity by the program and Power for All initiatives; year 2022. 5 The Saubhagya Scheme, or Pradhan Mantri Sahaj Bijli Har Ghar Yojana, is an Indian government project to provide electricity to all households. The project was announced in September 2017 with an aim to complete the electrification process by December 2018.    CHAPTER 1: Advanced Metering Infrastructure: Background  9 CHAPTER 2 Advanced Metering Infrastructure Advanced Metering Infrastructure (AMI) is not ™™ Home (local) Area Networks (HANs) implementation of a single technology. Rather, it is ™™ Meter Data Acquisition and Management Systems typically structured into a variety of networks and (MDAS and MDMS) systems that must be fully integrated into existing and new utility systems and applications. The AMI ™™ Operation gateways architecture includes the following components: A simplified view of this model is depicted in Figure 9. ™™ Smart meters The remainder of this chapter will discuss key AMI ™™ Wide-Area Networks (WANs) components in greater detail. Figure 9: Typical AMI Infrastructure MDM HES/MDAS Third Party Home Area AMI System Network Solutions Power Line Comm. (PLC) Data Repository Data Online Meter Data Warehouse Concentrator Broadband over In Home Power Line (BPL) Display AMI System Unification (IHD) Smart ZigBee Data Collection Adapters RF/WiMAX RF Meter Mesh Networks Meter Data Synchronization Programmable Validation, Estimation, and Editing Cellular (GPRS / Communicating 3G/4G/LTE ) Wi Fi Thermostat (PCT) Data Upload to Downstream Systems Additional Business Downstream Systems Applications ERP Billing/CCS Billing Determinants Heating, Ventilation, MDM Outage Management Meter & Energy Meter & Device GIS Air Conditioning Data Repository Data Asset/Work Management Enterprise SOA (HVAC) Control Work/Outage CRM/CIS Management GIS Data Distribution Management Work/Asset Load Profiling CRM/CIS Data Mgmt. Data Lighting Control    CHAPTER 2: Advanced Metering Infrastructure  11 AMI offers a variety of important functions that were is established. In addition to communicating with either unavailable in prior metering technologies or the collector directly, a smart meter can also serve needed to be performed manually. These functions as a relay to route communication between nearby include: meters and the collector. Like the older, conventional meters, smart meters also allow for manual reads, ™™ Scheduled and on-demand energy reading installation and maintenance. ™™ Remote connect and disconnect Smart meters are programmable devices that can ™™ Voltage monitoring perform many functions, including: ™™ Tamper detection ™™ Time-based pricing ™™ Power-outage identification and restoration ™™ Recording consumption data at 5-, 15-, 30- or As listed above, AMI’s two-way communications 60-minute intervals feature enables automation or ad-hoc collection of ™™ Net metering data for further analysis, while also allowing the utility ™™ Loss-of-power and restoration notifications to make remote decisions in real time. Through AMI, cost savings can be seen by both the consumer and the ™™ Remote turn-off/on utility. It has helped consumers make informed energy ™™ Load limiting decisions and allowed utilities to improve customer service through interactions with consumers. ™™ Energy prepayment ™™ Power quality monitoring 2.1 Architecture and Technology ™™ Tamper and theft detection ™™ Communications with other intelligent devices In this section, we will go into greater detail regarding the AMI components. Picking the right components The smart meter is made up of two primary and building out quality specifications can play a components: significant role in determining both the up-front costs ™™ The measurement and storage component is and future costs of maintaining the AMI infrastructure. the analogue front end that samples voltage Components must be chosen and designed with and currents; runs algorithms to compute future technology advancements in mind, leaving consumption, power factor, and so on; and stores room to easily replace or upgrade devices. the data in its local memory. 2.1.1 Meters ™™ The communications interface component is the interface back to the local area network (LAN) The core element of AMI is smart meters. As discussed and provides a programming port for field service in Section 1, utilities have conventionally used work. electromechanical meters – which, because they require manual reads by utility personnel, can easily be Smart meters have a communication module which tampered with. Through technology advancements, can employ a variety of communications standards, the smart meter was introduced, and now serves including Power Line Communication (PLC), Radio as the primary meter component on the consumer Frequency (RF), Wi-Fi, and RS485. The various premises, within an AMI network. When the smart modules include the following: meter is integrated with a data collector, direct, two- ™™ Data concentration unit (DCU) + GPRS: The way communication to the Head-End System (HES) meter communicates with a DCU, which in turn 12  Survey of International Experience in Advanced Metering Infrastructure and its Implementation   Table 1: Comparison of Smart Meter Communication Architecture Communication Pros Cons DCU + GPRS ™™ Low operational cost ™™ Data reliability as outage on one DCU impacts several ™™ Low bandwidth requirement consumer data points ™™ Less dependent on mobile ™™ Serial communication in some cases, which delays the data network coverage ™™ Installation of meters to achieve high data availability Direct (GPRS) ™™ Parallel communication ™™ High operational cost ™™ Less time on network ™™ Depends on availability of mobile network, especially in remote/rural locations RF canopy ™™ Very high data availability and ™™ Huge cost involved in establishing RF canopy network reliability ™™ High dependency on communication module provider ™™ No dependency on mobile ™™ Sometime license-free spectrum band is used, which network. causes noise ™™ Requires the existence of a line of sight and the absence of interference from metallic objects transmits the data to the server over GPRS. This through an RF canopy established by the is useful where meters are clustered or installed communication module provider. at closed distances. Table 1 summarizes the pros and cons of each ™™ Direct (GPRS): Each meter is equipped with module. individual GPRS communication module that directly sends data to the server. This is useful for Selecting a smart meter involves considerations across four domains: features, technology, scattered installations. applications envisioned, and vendor. Based on study ™™ Radio frequency (RF) canopy: Each meter has a analysis, utilities prioritized different domains when RF communication module that communicates selecting a smart meter, as seen in Figure 10. Figure 10: Meter Selection Considerations Main Features Application Technology Primary Vendors Perspective • Instantaneous Voltage • Interval consumption • Instantaneous Current • Single, Multi-phase measurements • Peak Voltage and Current metering • Register Reads • System Frequency • Over the Air programming • Meter Health/Status • RMS Voltage/Current • Firmware version • Voltage Sags and Swells • Power Factor • Meter Settings/ • Temperature sensor alerts • Instantaneous Apparent Power Configuration • Meter Last Gasp • Instantaneous Real Power • Meter faceplate information • Tampering alerts • Capacitor for Events and Alarms/Alerts • Point-to-point (Cellular/ • Network Interface Cards SIM cards) • Mesh    CHAPTER 2: Advanced Metering Infrastructure  13 Table 2: Vendor Choices by Selected Utilities Utility Meter Vendor(s) BG&E, USA Itron ComEd, USA Aclara, L&G PECO, USA Sensus Consumers Energy, USA Aclara, Itron Oncor, USA L&G SCE, USA Itron, L&G Electrobras, Brazil Itron, ELO Enel, Italy In House Victoria, Australia L&G TPDDL, Delhi, India L&G CESC, Kolkata, India Secure, Genus Despite advances in specifications and guidelines architecting their communications infrastructure, related to interoperability and interchangeability, utilities should consider both current and future single-vendor ecosystems are considered to be inclusion of smart-grid applications as well as more proven and less risky to manage. As shown other services. in Table 2, most utilities use just one or two meter vendors. An improved regulatory environment, advancement in communications technologies, and a significant reduction in the cost of deploying these technologies 2.1.2 The Communications Layer (including software, hardware and service costs) The AMI communications infrastructure is what have allowed utilities to justify deploying AMI on a supports the continuous data communication large scale. Due to the hierarchical nature of utility between the utility and its smart meters. The networks, several utility-specific definitions have communications layer generally employs bi- emerged. The three main “area networks” are as directional communication standards, and the follows. traffic should be encrypted. Among the utilities ™™ A Field Area Network (FAN) – sometimes referred interviewed, the Advanced Encryption Standard to as a Neighborhood Area Network (NAN) or (AES) was the preferred choice. Although the Local Area Network (LAN) – may be a RF mesh, communication layer serves as the core for the PLC network, or other coverage technology overall AMI network, it can also support a multitude that enables localized communication between of other services beyond AMI, such as distribution meters and the access point across various automation. With the traditional Internet Protocol geographical and physical barriers. The FAN version 4 (IPv4) addresses now exhausted, provides a sub-network for meters to connect utilities have begun to introduce the newer IPv6 to and communicate with the wide area network protocol into their communications. IPv6 not only (WAN). Utilities will need to determine the provides trillions of new IP addresses for smart best network for their particular requirements. devices to use, but also allows for more efficient, A comparison of FAN technologies is shown flexible and highly secure communications. When in Table 3. 14  Survey of International Experience in Advanced Metering Infrastructure and its Implementation   Table 3: Comparison of FAN Technologies Parameter Cellular (3G/4G/LTE) RF Mesh PLC Spectrum type 1-2 Mbps Unlicensed/Licensed Unlicensed Typical data rate < 1 sec 9.6–100+ Kbps Several to 100+ Kbps Latency rate < 1 sec 1–60 sec < 1 sec Coverage Wider Coverage ™™ Up to 50m ™™ Up to several km. ™™ Can be enhanced with ™™ Data rate decreases with topology selection distance Reliability Rate of Successful link Deployment-and product- Dependent on underlying establishment > 99% specific power line Capital cost Less CAPEX Relatively High CAPEX Moderate CAPEX Operating cost Relatively high OPEX Low OPEX Low OPEX Security Relatively more secure Relatively less secure Relatively less secure Vendor dependence Continued dependence Low dependence Low dependence Obsolescence risk High Low Low Leverage for smart grid/ No Yes No DER*/smart city Deployment model suitability All Area-wise deployment Feeder-wise deployment Note: Utilities will need to determine the best network for their particular requirements. (blue = positives, red = negatives) * DER = distributed energy resource. ™™ The Wide Area Network (WAN) is often referred Due to the nature of the applications, the HAN to as the backhaul. These networks provide utilizes Zigbee technologies to communicate communications from the field area network with home devices. to the utility head-end. The WAN is used to communicate with all or specific devices in Choosing the most suitable communication the field to initiate tasks, upgrade firmware or technologies and configurations requires utilities to request specific data. In some cases, the WAN is examine the requirements of all device types that also used for individual direct-connect meters. may use the network, in terms of: For this reason, the WAN should be designed to ™™ Bandwidth support public cellular service or private radio networks, or set up to be Ethernet-based (fiber ™™ Latency or coaxial cable). ™™ Cost ™™ The Home Area Network (HAN)–sometimes ™™ Reliability and coverage referred to as the Premise-Area Network (PAN) ™™ Spectrum availability or Building-Area Network (BAN) – provides an interface into the home and business for energy ™™ Backup power needs consumption monitoring and to support demand- ™™ Cyber security considerations response functionality. The HAN includes the communication network from the meter to In the United States, the Federal Communications devices inside the consumer’s home or building. Commission (FCC) manages and licenses the    CHAPTER 2: Advanced Metering Infrastructure  15 Table 4: Communications Layer for Selected Utilities Field Area Network Utility Backhaul Network Primary Secondary BG&E, USA RF mesh Cellular (3G) Cellular/fiber ComEd, USA RF mesh Cellular (3G) Cellular PECO, USA RF point-to-point Fiber Cellular/fiber Consumers Energy, USA Cellular (3G/4G) Wired (for rural locations) N/A Oncor, USA RF mesh Cellular (3G) Cellular SCE, USA RF mesh Cellular (3G) Cellular Electrobras, Brazil RF mesh Cellular (3G) Cellular Enel, Italy RF mesh/broadband over Cellular (GPRS/3G/4G) PLC power line (BPL) AusNet, Australia RF mesh/WiMAX WiMAX/3G WiMAX/cellular TPDDL, Delhi, India RF mesh Fiber CESC, Kolkata, India RF mesh Cellular (GPRS) Fiber electromagnetic spectrum for the communications the FCC has jurisdiction over the approval and use of commercial users and state, county, and local of radio frequency devices, and decides whether governments, including commercial and non- a license is required for the devices or if unlicensed commercial fixed and mobile wireless services, operation is allowed. broadcast television and radio, satellite, and other services. Frequency bands are reserved for different Specific to RF safety issues, the FCC is required by uses. The decisions that the utilities make are thus the National Environmental Policy Act of 1969 to subject to the FCC and state regulations as well. Table evaluate the effect of emissions from FCC-regulated 4 summarizes the communication layers adopted by transmitters on the quality of the human environment. the utilities surveyed for this report. The American National Standards Institute (ANSI), the Institute of Electrical and Electronics Engineers As the table shows, RF mesh and cellular have (IEEE), the National Council on Radiation Protection emerged as the most prevalent communications and Measurements (NCRP), and other organizations technology for meter-level connectivity. Most have issued recommendations on human exposure to utilities with large implementations have employed RF electromagnetic fields. In 1996, the FCC adopted hybrid networks that make use of both RF mesh and the NCRP’s recommended Maximum Permissible cellular. Exposure (MPE) limits for field strength and power density for transmitters operating at frequencies 2.1.2.1 Smart Meters and RF Exposure ranging from 300 kHz to 100 GHz. There are two Issues: a U.S. Perspective types of potential effects due to RF emissions: non- thermal and thermal. The primary area of concern In March 2011, the Edison Electric Institute published is related to certain RF signal strengths for which a white paper on exposure to the radio frequencies there could be negative health effects. As a result, all used by smart meter systems.6 In the United States, manufacturers must test and certify their products 6 Ellery E. Queen,“A Discussion of Smart Meters and RF Exposure before use, and similar approaches have been taken Issues,” EEI-AEIC-UTC white paper (EEI 2011). See https://aeic.org/ wp-content/uploads/2013/07/smartmetersandrf031511.pdf. globally to ensure public safety. 16  Survey of International Experience in Advanced Metering Infrastructure and its Implementation   2.1.3 The Software Layers: HES/MDAS ™™ Signals for connect and disconnect of switches and MDMS present in end points such as meters ™™ Audit trail and event and alarm logging Software solutions for AMI involve two “layers”: the Head End System/Meter Data Acquisition ™™ Encryption of data for secure communication System (HES/MDAS) layer and the Meter Data ™™ Maintenance of time sync with DCU/meter Management System (MDMS) layer. We will here ™™ Storage of raw data for a defined duration discuss each in turn. ™™ Handling of control signals/event messages in 2.1.3.1 Head End System/Meter Data order of priority Acquisition System (HES/MDAS) Layer ™™ Setting of smart meter configurable parameters The Head-End System (HES) is also known as the ™™ Communication device status and history Meter Control System. The HES works in conjunction ™™ Network information in case more than one with another component, the data collectors, which technology is deployed in the field between the serve as the communication nodes for the HES. two devices. These data collectors gather data directly from the smart meters and forward it on to the HES. The data The suggested events around critical and non-critical is then moved over to the MDMS for management. reporting functionality are as follows: The HES must be configured with security in mind, as ™™ Critical events: this component houses all consumer data. zz Data is not received from DCU/meter, The main objective is to acquire meter data zz The relay does not connect/disconnect, automatically, without human intervention. This the communication link fails between the MDAS software is required to collect and store the DCU and the meter, or there is a network data in line with performance levels specified for a failure defined number of meters, while allowing for possible ™™ Non-critical events: expansion if needed in future. The MDAS ensures data integrity checks – for example, checksum, time check, zz Retry attempts on communication failure pulse, and overflow – on all metered data. The MDAS zz Periodic missed reading, failure to connect, should be developed on an open platform (based and so on. on distributed architecture) to allow for scalability without performance degradation resulting from Table 5 summarizes the meter reading configurations additional hardware. The MDAS should also support enabled by the utilities surveyed for this report. storage of raw meter data, alarms and alerts for at 2.1.3.2 Meter Data Management System least three days. Adequate database and security features for storage of data in the MDAS need to be (MDMS) Layer ensured. The primary functions of the MDMS are to calculate billing determinants and perform validation, editing A non-exhaustive list of suggested MDAS functions and estimation (VEE) on the data received from would include the following: smart meters. This component analyzes the data ™™ Acquisition of meter data on demand and at user collected to set the power costs and to establish selectable periodicity energy efficiency. The real-time data received gives ™™ Two-way communication between meter and the utilities the power to understand how electricity DCU is being used and allows the consumers to gain    CHAPTER 2: Advanced Metering Infrastructure  17 Table 5: HES/MDAS Configurations by Utility Remote Reading On-Demand Reading Utility Read Configurable Interval (Push/Pull) and Pinging BG&E, USA Push and pull 15 min. commercial, 60 min. residential √ ComEd, USA Pull 30 min. commercial/residential √ PECO, USA Pull 15 min. commercial, 60 min. residential √ Consumers Energy, Pull 15 min. commercial, 60 min. residential √ USA Oncor, USA Push standard, pull on 15 min. commercial/residential √ demand SCE, USA Pull 15 min. commercial, 60 min. residential √ Electrobras, Brazil Push 15 min. commercial/residential √ Enel, Italy Push and pull 60 min. (Spain), 15 min. (Italy) √ AusNet, Australia 30 min. residential only √ TPDDL, Delhi, India Push and pull 30 min. √ CESC, Kolkata, India Push standard, pull on 15 min. √ demand insights on their energy usage. Some of the metrics The MDMS acts as a central data repository that and functionalities that the MDMS can help with are supports storage, archiving, retrieval and analysis of the following: meter data and various other MIS data, along with ™™ Data interval reads validation and verification algorithms. The MDMS has the capability both to import raw or validated ™™ Metered data analysis (load profile) data in defined formats and to export the processed ™™ Power outage and power restoration and validated data to various other systems and ™™ Remote disconnect/connect services. Where data retention is concerned, the MDMS can selectively choose which data is to be ™™ System maintenance maintained, purged or archived in line with the utility’s requirements. Typically, a MDMS should have The MDMS is typically a database, with analytical the following features: tools that can be enabled to allow interaction with other information systems such as: ™™ Asset management ™™ Consumer Information Systems (CIS), billing ™™ Meter data management systems ™™ Data validation, estimation, and editing ™™ Outage Management Systems (OMS) ™™ Analysis of meter data ™™ Enterprise Resource Planning (ERP) ™™ Reporting ™™ Mobile Workforce Management (MWM) In addition to the above functional features, the MDMS ™™ Geographic Information System (GIS) will typically have the following general features: ™™ Transformer Load Management (TLM) ™™ Web-based interface 18  Survey of International Experience in Advanced Metering Infrastructure and its Implementation   Figure 11: HES/MDAS and MDMS Integration HES/MDAS MDMS • Automatic polling/On • Automatic polling / On Demand reads Demand reads • Two way communication • Meter asset management Enterprise establishment • Meter installation support Applications • Remote Disconnect/ • Meter data management • Billing/CIS Reconnect • Data Validation, Estimation, • CRM • Data encryption for and Editing (VEE) • GIS communication • Billing determinants • ERP • RTC time synchronization calculations • Data retention • Exception management • OMS • Control signals/Event • Service order management • DMS messages handling & logging • Customer service support • WMS Smart Meters • Smart meter configuration • Data analysis & reporting • Customer Portal support • Revenue protection support • Etc. • Communication device status • Demand control / Demand and history logging Response Support • Network information logging • Prepayment functionality • Critical and non-critical • Net metering integration reporting • Other business system integrations Security ™™ Service-Oriented Architecture (SOA) - based 2.1.3.3 Integrating the HES/MDAS and system for integration with other software MDMS Layers ™™ Data export facility in excel and PDF As explained in Figure 11, end-to-end and secure ™™ User authentication and authorization integration of HES/MDAS and MDMS is critical to ™™ Role- and location-based access successful AMI implementation. ™™ Secure communication/data transfer ™™ Data backup and archival Table 6, which is based on study interviews with ™™ Alerts and alarm generation utilities, summarizes the vendors of various AMI components utilities have chosen. ™™ Audit trail of critical operations Table 6: HES/MDAS and MDMS Selections by Utility Communication Utility Smart Meter MDAS/HES Vendors MDMS Vendor Provider (FAN) BG&E, United States Itron Itron/Silver Spring Itron/Silver Spring Oracle ComEd, United States Aclara, L&G Itron/Silver Spring Itron/Silver Spring Oracle PECO, United States Sensus Sensus/Big cellular Sensus Oracle Consumers Energy, Aclara, Itron Verizon Itron Itron United States Oncor, United States L&G L&G L&G L&G SCE, United States Itron, L&G Itron Itron Itron Electrobras, Brazil Itron, ELO Cisco Siemens, Itron Siemens AusNet, Australia Aclara, L&G Itron/Silver Spring, Itron/Silver Spring Siemens Motorola Enel, Italy In-house In-house BPL In-house SAP TPDDL, Delhi, India L&G L&G L&G Siemens CESC, Kolkata, India Secure, Genus Itron/Silver Spring Itron/Silver Spring Not applicable* * CESC plans to procure a MDMS in future (see Section 4.3.11).    CHAPTER 2: Advanced Metering Infrastructure  19 Table 7: AMI Integrated Capabilities by Utility Billing and Outage Data Distribution GIS Utility Collection Management Analytics Automation Integration Integration Integration Integration Integration BG&E, United States √ √ In progress ComEd, United States √ √ √ √ PECO, United States √ √ √ Consumers Energy, United States √ √ √ √ √ Oncor, United States √ √ √ √ √ SCE, United States √ √ √ √ Electrobras, Brazil √ √ √ In progress √ AusNet, Australia √ Enel, Italy √ √ √ √ √ TPDDL, Delhi, India √ √ √ √ √ CESC, Kolkata, India √ √ √ √ √ 2.2 Systems Integration and Typically, services from vendors are procured to assist in this process if it cannot be handled in-house. Applications Software often requires additional development to To ensure that the overall metering services are allow for the integration of these systems. This can efficient and accurate, all the components must be result in many unexpected costs and scheduling integrated so they work together as one system. The delays. Within the North American context, this is process of system integration at a minimum involves the area where many utilities had the most difficulties integrating AMI, MDMS, CIS and billing systems with and learned the most lessons. each other. Additionally, depending on the utilities’ Additional systems that utilities are now starting to capabilities, OMS, DMS, and other Distribution integrate are web portals, time-based rates, incentive Automation (DA) systems can be integrated as well, programs, and customer devices. Information system increasing the benefits of the smart grid technology. integration is typically an ongoing process within System integration should be one of the top items utilities; however, when done correctly, it can provide that a utility looks at when planning for a smart grid a variety of new functions that improve the efficiency roll-out, as it can present many technical challenges. of operations. This is because of the architectural implications of increased volumes of structured and unstructured data A variety of applications can be integrated within and the multiplicity of systems that are exchanging AMI. To name a few: near-real-time data from the smart meter. Table 7 ™™ Customer Relationship Management (CRM) summarizes the AMI integrated capabilities adopted ™™ Enterprise Resource Planning (ERP) by utilities surveyed for this study. 20  Survey of International Experience in Advanced Metering Infrastructure and its Implementation   ™™ Work Order Management developed countries have attempted to leverage ™™ Accounting AMI data to: ™™ Asset management ™™ Allow for meter-to-cash applications ™™ Customer service7 ™™ Improve operational efficiency ™™ Improve outage management Through the wide range of data that is captured through the smart grid, putting all of it together ™™ Enhance situational awareness through advanced and making sense of it is key for utilities to get data analytics the most value out of AMI. Efficiency, reliability ™™ Serve as a precursor to distribution automation and customer service can all be enhanced through etc. integrated applications. Smart grid analytics is a rapidly growing area where utilities can As discussed in the next chapter, AMI outcomes collect, analyze and validate the data received will be constrained by the penetration of new in order to make smarter business operations technologies/solutions in other business functions, choices and to improve productivity. Utilities in among other risks. 7 For example, customers can log into a utility’s web portal to pay their bills as well as to access their electricity usage and history, utility information, and various analytics related to consumption.    CHAPTER 2: Advanced Metering Infrastructure  21 CHAPTER 3 Security and Risk Considerations AMI projects require a thorough, effective system AMI must navigate the features of these new grid- implementation and integration process. This is due modernization technologies – and subsequently both to the challenges inherent to AMI’s complex must evaluate different architectures with more technology and to the numerous integration points extensible communications networks that can across other enterprise Information Technology (IT) support advanced use cases such as Distributed systems. A key aspect for utilities is awareness of, Energy Resource (DER) power flow. and preparation for, risk throughout the project and operations life cycle. This section will examine main Planning a balanced approach that appropriately types of risks: those related to cyber security, and matches the investment in safeguards (i.e. measures those related to the implementation and operations which manage or mitigate risks) with the risk profile of the AMI system. of the various components of the AMI system can help maximize the Return on Investment (ROI) for cyber-risk protection. Utilities have taken different 3.1 Cyber Security approaches to accomplishing this task, often based on As discussed in Chapters 1 and 2, AMI technology financial, business, technology, or schedule drivers. brings many benefits for power distribution and Regardless of the specific AMI solution design, a customer engagement. However, the underlying similar process can be followed to manage AMI technology that delivers these benefits also security risk. Defining the risks to the AMI solution introduces substantial IT and process impacts to utility and subsequently structuring safeguards that are organizations. Overcoming the cyber-risk challenges focused on secure, vigilant, and resilient capabilities necessary to securely enable systems, monitor will provide a comprehensive strategy for managing operations, and respond to threats associated with the security risk associated with AMI adoption. AMI technology can be a daunting task. AMI technology introduces a number of risk domains The early adopters of AMI technology did not have access to the technology options available today, once implemented (see Figure 12): such as standardized interconnection protocols, ™™ Safety: Manipulation/attacks on AMI system can cellular-based connectivity models, and mature lead to voltage surges that risk the health and security-event monitoring tools. Current adaptors of safety of utility personnel and customers.    CHAPTER 3: Security and Risk Considerations  23 Figure 12: Security Risks C Eq ust ui om Service pm e en r Delivery t Brand & Safety Reputation ss Da e Lo ta enu Re Priv Rev gu acy lat ory / Security Risks ™™ Service delivery: Attacks on the AMI solution that enterprise infrastructure, communication networks, can potentially subject electricity service delivery and third-party vendors. As Figure 13 illustrates, to prolonged, multi-year disruptions. a robust strategy for cyber security addresses a ™™ Brand and reputation: Attacks against the variety of core security principles. Collectively, AMI solution for political purposes, reducing these principles comprise an industry best-practice trust in the utility brand among customers and for deploying safeguards that are secure, vigilant, governmental entities. and resilient across the security capabilities of the operating utility. ™™ Revenue loss: Attacks with the objective of energy or financial theft. A focused approach to developing these safeguards ™™ Data privacy: Breaches of customer data privacy can significantly strengthen the security of the AMI with brand and potential compliance impacts. system. Figure 14 summarizes the technologies and processes involved in securely enabling AMI; further ™™ Customer equipment: Using AMI solution details on implementing these principles are elaborated communication mechanisms to attack in Appendix A, “Security Domains and Strategies”. customers residential or industrial networks and equipment. 3.2 Risks Related to Implementation Addressing these risk domains requires safeguards to be deployed across all aspects of the AMI and Operations system – including edge devices, business systems, Implementation of AMI is expected to provide operational systems, supporting processes, operational, financial and customer service benefits. 24  Survey of International Experience in Advanced Metering Infrastructure and its Implementation   Figure 13: Core Security Principles Segmentation Real Time Monitoring Minimize attack surface Stream event data in real time to through logical isolation centralized platforms that can of computing and identify potential threats before technology resources they can execute an attack Testing & Verification End to End Trust Regularly test AMI systems for weaknesses that could be Cryptosystems to enable trust exploited. Test response for computing resources and procedures to refine and hone communications throughout the defensive capabilities AMI solution architecture Least Privilege Incident Response Structure access for users and systems Define tailored capabilities across people, to only the required levels minimizing process, and technology to prepare for potential channels of compromise potential attacks and events Figure 14: Technologies and Processes to Securely Enable AMI Utility Back Office • SIEM Logging • Robust Vulnerability Management • Secure Code Escrow • Domain, Certificate Authority, • End Point Detection & Response • Anomalous/Behavioral Event and Network Segmentation (EDR)/Application White Listing Detection • Directory Service Managed • Multi-Factor Remote Access • Threat Intelligence Integration System and User Accounts • Robust HSM/PKI Landscape • Least Privilege Access Controls • Internal DMZ Proxy for MDAS • Regular Cryptographic Key • MDAS Connectivity Proxying • System Hardening Guidelines Rotation for Back Office and Field • MDAS Meter Turn-Off Application • Cryptographically Mutually Devices Controls Authenticated Interfaces • Privileged Access Management • Cryptographic Trusted Firmware/ • War Gaming/Table Top (PAM) Software Procurement & Secure Exercises • Incident Response Playbook Handling Meter and Field Communications RF Mesh & Cellular • Cellular Meter Authentication • Unique Meter Cryptographic Keys Cellular • Prohibited Meter to Meter Communication • Over the Air Firmware Support KW • Non-Routable Cellular Network • Standards Based Cryptography/Protocols • Cellular Event Log Monitoring • Trusted Platform Modules (TPM) • Integrated Key Mgmt. Landscape • Meter Penetration Testing HAN/Customer Presentment • Latest HAN Protocol Specifications (e.g., Zigbee) • Web Penetration Testing • Mobile Application Containerization • 3-Tier Web Application Architecture • Web Application Secure Development Standards • DDoS Protection • Customer Multi-Factor Based Authentication • SIEM Logging/Integration • Customer Password Complexity Enforcement • Latest SAML/SSO Protocols Note: DDoS = distributed denial of service; HSM = hardware security module; PKI = public key infrastructure; SAML = Security Assertion Markup Language; SIEM = security information and event management.    CHAPTER 3: Security and Risk Considerations  25 It can be challenging, however, for a utility’s business ™™ Implementation risk: AMI implementation can units to manage and mitigate risks during a large- be more challenging than simply selecting and scale AMI implementation. Risks related to AMI adopting new technology. Well defined AMI implementation and operations can be broadly project management, requirements management, classified as follows: test management and change management processes can be the critical stepping stones in ™™ Technology risk: Utilities are exposed to successfully managing the AMI implementation. technology risk because they invest heavily in For example, in the case of AMI implementation information technology. Utilities can safeguard in a utility company in Kolkata, India, network their interests by using cutting-edge technologies signals were interrupted due to the iron gates that conform to industry standards and will that were interfering with the RF-network-based not likely be outdated in the immediate future. communication; this required the installation Pilot projects help in validating the cost-benefit of communication antennas at appropriate analysis and technical expediency of solutions locations. During an AMI implementation in the chosen for a smart-grid program. For example, United States, ComEd ensured the strength of CMS Energy – an energy firm in Michigan, United its network signals during all four seasons by States – evaluated smart meter technology in positioning antenna towers to avoid interference two ways: first in the lab, and then by piloting from large trees, seasonal foliage effects and other the implementation of up to 10,000 meters from potential blockages – thus avoiding significant three different vendors as part of an evaluation delays that might have occurred due to the need and selection process. While the pilot did not to reposition repeater equipment. allow for use of the full integrated capability, it was highly and successfully focused on the ™™ Financial risk: Utilities generally commit huge metering hardware. sums of capital and pay large up-front costs for their AMI implementation programs, and there ™™ Integration risk: An AMI program can frequently is always a looming danger of not realizing the involve multiple vendor products for integration. targeted financial objectives of the program. Utilities must decide which integration tasks they Overrunning the projected cost and schedule are prepared to implement in-house, which tasks is very much a possibility. Utilities can mitigate to outsource, the number of prime contractors this risk by running pilot programs, phasing AMI and vendors (based on RFP responses, technical implementation, utilizing managed services and competency, past working history, etc.), and the making use of incentives. For example, BGE, a duration of the outsourcing effort. For Electrobras subsidiary of Exelon Corporation in the United in Brazil, these factors were also balanced against States, found they were falling significantly behind an economic development goal to use local schedule for meter installations. To accelerate the labor and Brazilian-made technology as part of pace of installation, BGE was forced to negotiate the overall upgrade. Using a mix of foreign and with the original vendor to increase the number domestic products posed some risk, and when of installers in the field, as well as bring a second network integration issues arose due to the installation vendor on board. Eventually, BGE incompatibility of some network components had to hurriedly cross-train more of its own with Brazilian mobile network standards, the technicians to perform installations. All these remediation effort required reengineering some efforts helped bring the schedule back on plan, of the collectors. albeit at a higher cost than originally budgeted. 26  Survey of International Experience in Advanced Metering Infrastructure and its Implementation   CHAPTER 4 Implementation Experience by Utilities To fully take advantage of the benefits of introducing by Itron of Silver Spring Networks has reduced AMI, the utility typically orders the implementation some competitive alternatives, since multiple from the backend, implementing a MDMS to begin product lines are being consolidated. accepting interval reads and changes to CIS to ™™ Location identification of field receptors from account for new billing determinants. Some utilities meters within each area of deployment. have delayed this modification and have instead created billing determinants (i.e., customer usage ™™ Selection of a mass meter installation vendor. data required for generating the bill) that mimic ™™ Planning of a zone-based approach for replacing typical monthly consumption reads. existing meters, often based on existing meter- reading routes. The most significant impact on the utility is in the field. The deployment models have typically ™™ Scheduling of meter deployments (e.g., followed a similar approach that includes the communicating with customers, identifying following: complications due to issues such as critical care customers, defining an approach for dealing ™™ Identification of appropriate meters for residential with commercial and industrial customers within and commercial customers (such as GE/ operating company territory). Aclara, Itron, Sensus, and L&G), including field deployment tests to account for territory issues, ™™ Meter deployments and shutting down of manual numbers of channels, battery life, registers, reads for the route, requiring: volume of data retained on the meter, and ability zz Coordination of field area network(s) within to upgrade the meter as needed. Also critical for the deployment area. deployment are issues such as warranty, ability to zz Coordination of wide area network(s) into deliver the volume of meters required, and support the area for backhaul. for specific requirements such as HAN, ZigBee, zz Development of an approach for dealing single-phase, multi-phase, and integration with with “unable to complete” installations the selected head-end system. (resulting from refusals, difficult ™™ Identification of field area network (typically implementations, or low availability of cellular or mesh), although the recent acquisition meters, for example).    CHAPTER 4: Implementation Experience by Utilities  27 Figure 15: Framework for Assessing Impacts of AMI Implementation Identify and Identify impacted Assess impacts across Develop targeted understand end-to-end stakeholders: functions: communications, training business process • Customers • Cross Process and organization readiness changes: Changes plans: • Vendors • Meter to Cash • Position Changes • Communication Plans • Field Workers • Meter Exchange • Collective • Frequency • Meter Readers • Move In/Move Out Bargaining Groups • Messaging • Customer Operators Mass meter deployments are a very complex therefore, tradeoffs on what project resources undertaking. Fortunately, now that an estimated are expended and when are made for every 1.2 billion electric AMI meters have been deployed AMI implementation project. Likewise, change worldwide, there are a tremendous number of lessons management is a framework for managing the effect that can be leveraged for AMI implementations in of new business processes, changes in organizational South Asia. While some conditions may vary from structure or cultural changes within an enterprise. region to region, the review of experiential learning Implementing AMI starts with an assessment of across a broad number of utilities will assist in the current business processes and stakeholder delivering better results for these deployments. organizations to determine the extent of impact (see Figure 15). 4.1 Resources and Change The impacts of AMI implementation will take Management different forms for each major stakeholder depending on their needs and current business processes. The resources of an organization consist of people, Impacts on stakeholders and processes can be materials, equipment, knowledge and time. analyzed and grouped for key considerations, as Organizations typically have limited resources; illustrated in Figure 16: Figure 16: Stakeholder and Process Considerations Stakeholders Process Impacts Key considerations Move to: Community groups will Customer Operations • Time-of-Use (TOU) need to communicate and meter reads liaise with customers on changes and benefits • Future offerings Meter and Field • New processes to Training and education will Operations replace AMI meters need to take place on • Customer opt-outs meters and the technology Prepare for: Contact center staff need Contact Center • Customer awareness to be prepared for an • Customer opt-outs, increase in customer calls inquiries, needs info 28  Survey of International Experience in Advanced Metering Infrastructure and its Implementation   The implementation of AMI by the utilities level. Table 8 identifies the impact area and interviewed for this report often required some types of impacts that were identified with realignment of resources and management of the implementation of AMI across the utilities change at both a technical and an organizational interviewed for this report. Table 8: Resource and Change Impacts of AMI Implementation Department Component Impact Field Operations/ Meter ™™ Reduced need for meter readers Meter Reader ™™ Retraining requirement as staff transferred from meter reading and field technical support to network, RF and other technical support roles ™™ Reduced truck rolls (i.e., travel) to/from reported outages, with impacts on fleet mileage and maintenance ™™ Ability to leverage over-the-air (OTA) upgrades to meter firmware Field Operations Head-End System ™™ Exponential increase in volume of meter-read information (HES) ™™ Ability to locate meter when multiple head-end systems are in use Network Field area ™™ Significant implementation staffing needs to cover AMI meter Operations network (FAN) communications ™™ Specialist skills needed for RF analysis and troubleshooting Network Wide area ™™ Increased communications capability for managing backhaul Operations network (WAN) communications ™™ Redundant network capability needed to offset potential bandwidth issues ™™ Network traffic prioritization needed for shared networks – i.e., outage management prioritized over other traffic ™™ Typically, the establishment or reinforcement of a Network Operations Center (NOC) to oversee, monitor and respond to network operations Customer Service Meter Data ™™ Volume of data increase in the form of more granular interval data Management ™™ Ability to perform VEE (validate, estimate and edit) function to adjust for System (MDMS) missed reads through interpolation techniques ™™ Ability to identify potential fraud through use of flags on read ™™ Potential increase in size of customer service team to handle additional customer interaction Customer Service Consumer ™™ Based upon tariff: Information zz Interval billing System (CIS) zz Net billing for solar Photo Voltaic (PV) customers zz Pre-pay zz Enhanced time-of-use (TOU) billing zz Quicker move-in/move-out zz Turn-off/turn-on    CHAPTER 4: Implementation Experience by Utilities  29 Department Component Impact Operations Outage ™™ Ability to detect last gasp and power-on for potential outage detection Management and localization System (OMS)/ ™™ Ability to leverage momentary voltage fluctuations to determine future Advanced network issues Distribution ™™ Ability to detect phase to support corrections to GIS systems Management ™™ Ability to leverage Fault Location, Isolation, and Service Restoration System (ADMS) (FLISR) and other advanced analytics tools Engineering All ™™ Enhanced ability to perform transformer load analysis and other network assessments ™™ Enhancement to new construction planning IT All ™™ Requirements for new integration between typically segregated systems (e.g., CIS to GIS) ™™ Additional field cyber security considerations/implementations ™™ Typically, the establishment or reinforcement of a Security Operations Center (SOC) to oversee, monitor and respond to incidents, intrusions, etc. ™™ Greater storage requirements to support higher volume of interval reads ™™ Changes to billing systems to support customer service changes documented above ™™ Migration from point-to-point integration to enterprise service bus and pub/sub integration due to increased data volumes Other Utility oversight ™™ Broader efforts may include the state utility commissions and filings by the individual utility to gain approval of the inherent changes brought about by the introduction of AMI Other Customer ™™ Stakeholder education on benefits of smart meter technology, how to read communications and interpret new and more-detailed information regarding electrical usage ™™ Customers occasionally unwilling to accept an AMI meter due to concerns over privacy or related to radio frequency emissions ™™ Establishing a specialized communications team during the implementation project and subsequent adoption period was a consensus recommendation from the utilities interviewed for this report 4.2 Project Management and will be made throughout the project, along with the decision-making authority for each body (Figure 17). Governance Both project management and governance are critical Implementation of the AMI vision is the project to completing a successful AMI implementation. To management responsibility and challenge. exercise effective project governance, the utility Effective project management ensures that all must define the vision driving the implementation. the project participants are coordinated in their The roles and responsibilities of steering committees actions, aligned with resources, working to a and project teams describe and define how decisions common schedule, and reporting progress through 30  Survey of International Experience in Advanced Metering Infrastructure and its Implementation   Figure 17: Role of AMI Governance Board Core AMI Governance Board (AGB) Responsibilities Promote and develop advanced metering excellence AMI Governance y Board Establish standards and procedures teg tra Design Service dS Authority Committees an it y ta b il AMI Change Service Executes strategy for specific services un Advisory Board Owners co Ac … Service Delivery Teams The AMI Run Governance Board (Sample) a shared communications medium. An AMI the roll-out of AMI. Where possible, information implementation project will require a framework was gathered from representatives of each for the areas of responsibility, such as the one utility who were directly involved in the depicted in Figure 18, to support the management implementation effort. Within the context of these and control of the components – including meters, case studies, a “full implementation” represents integration, back office supports, and so on. 100 percent completion within the scope of each utility’s project. 4.3 Case Studies Please Note: All key references for figures are The following case studies reflect the experience included in the “References and Links” section of of numerous international electrical utilities with this report. Figure 18: Areas of Responsibility for AMI Implementation Projects Program Leadership and Governance Program Management Office Stakeholders, Scope, Integrated Communications, Resource Issues, Risks Vendor Scheduling and Budget Quality HR and Management and Change Management Dependencies Procurement Program Office Controls and Reporting Component (Transactional Execution) Program Management/PMO Foundation and Support    CHAPTER 4: Implementation Experience by Utilities  31 4.3.1 ONCOR CASE STUDY: ONCOR Location:Texas, United States Investor-owned 82+ Retail Providers Full Implementation Total Cost of AMI Implementation: Total Number of Meters Installed: $803 million 3.5 million Communication Type: Backhaul Network: RF mesh 900 MHz, cellular (3G) Cellular Smart Meter: Communication MDAS/HES Vendors: MDMS Vendors: L&G Provider (FAN): L&G L&G L&G Enabled Features: AMI Integrated with: ™™ Remote connect/disconnect ™™ Billing and Collection System ™™ Local data logging ™™ GIS System ™™ Power factor monitoring ™™ Outage Management System ™™ Bi-directional support for solar ™™ Data Analytics System ™™ Remote Update ™™ Distribution Automation System Oncor is an electric utility based in the Southern outages can be conducted over the communications region of the United States, which operates the largest network as well. distribution and transmission system within the state of Texas. The utility supplies power to about 7 million AMI Cost Savings: Since the AMI roll-out, Oncor has consumers, covering an area of over 120,000 miles of remotely completed almost 17 million service orders distribution and 14,000 miles of transmission lines. The (i.e., orders or instructions to perform a particular utility’s AMI deployments started in 2008 and they have service), eliminating the need to drive over 114 million since completed a roll-out of about 3.5 million smart miles, resulting in savings of up to 9.5 million gallons meters to date. The utility has about 3,400 employees of fuel. Oncor has seen O&M savings in the areas of and has an estimated revenue of $4 billion yearly. salaries for meter readers and field service personnel as well as vehicles with the use costs associated with AMI System and Communications: Oncor employs them (leases, maintenance, fuel, insurance, etc.) a 2-way communications network, using a 900 MHz RF mesh network with smart meters that utilize large Data Analytics for Improved Efficiency: Oncor has capacitor packages, super caps for local data logging integrated big data systems with AMI, to utilize the in case of last gasp scenarios, situations in which the AMI data for analytics purposes. Through this they endpoints have lost power. Cellular companies are could conduct data correlations from multiple sources, used for the backhaul transmission of all the AMI root cause analysis, detect and identify issues, predict data. Oncor’s smart grid infrastructure also includes and project work processes and drive automation. integration of SCADA and Distribution Automation Some areas in which they saw direct improvements components. System Monitoring for voltage and through data analytics was in Outage Management, 32  Survey of International Experience in Advanced Metering Infrastructure and its Implementation   Figure 19: Oncor Smart Grid Infrastructure Communications • Satellite Applications • Radio Frequency (RF) • Distribution Management • Fiber System (DMS) • Cellular • Outage Management System • Broadband Over Power Line (BPL) (OMS) • Power Line Carrier (PLC) Substation • Pager Fiber • Supervisory Control and Data • Monitoring Acquisition (SCADA) • Control • Mobile Workforce • Supervisory Control and Management (MWM) Data Acquisition (SCADA) • Meter Data Management Distribution Automation System (MDMS) • Intelligent Switching • Transmission Management System Monitoring System (TMS) • Voltage • Capacitor Control • Web Portal • Outage Market Support Advanced Metering • Interval Reads • Billing • Demand Response • Remote Sensing • Retail Communication • Home Area Network (HAN) Power Quality, Tampering/Theft Protection and roll-out, Oncor also launched an extensive consumer Asset Health. education campaign, teaching their customers the benefits of smart meters. Oncor focused on using one Oncor AMI Deployment: One of the largest and fastest vendor throughout their roll-out and currently use a roll-outs in the United States, Oncor began deploying 900 MHz RF mesh network for communication. The smart meters in late 2008 and completed their roll-out smart meters record consumption every 15 minutes by the end of 2012, having since replaced 3.5 million and Oncor has established a “Smart Meter Web meters to date. The average new meter installations Portal” allowing consumers to access and review their per day was about 3,500. Supporting the smart meter electricity consumption. Table 9: AMI Implementation Details – Oncor Meters ™™ L&G Focus SF4x ™™ 7-10 year replacement cycle planned ™™ 900MHz wireless ™™ Utilize super caps instead of batteries ™™ Common failure types included; communication, display, and memory failures DCU ™™ L&G Gridstream ™™ 900 MHz wireless Communications network ™™ 900 MHz RF mesh ™™ Cellular (AT&T and Verizon) ™™ Issues experienced include: zz Having to share the unlicensed 900 MHz frequency with others and consumer items utilizing the same frequency zz Having to adjust the network each time a new (real estate) sub division comes in    CHAPTER 4: Implementation Experience by Utilities  33 MDAS/HES ™™ L&G Gridstream MDMS ™™ L&G Gridstream Customer information system/ ™™ Oracle CC&B billing system Resources and change ™™ Geographic deployment replaced meters on a regional basis (town, county, etc.) management following the original deployment plan ™™ Deployment plan filed with PUC and authorization given to proceed ™™ Opt-out program for customers not wanting smart metering must be planned and provided ™™ Ensure access to meters, safety for installation crews, GPS readings taken at time of installation, take photos to validate meter reading at cutover ™™ Reduced staffing by 350 meter readers ™™ New Operational Changes ™™ Set up AMS Ops team of 8 personnel ™™ IBM IT Ops group supporting head end and MDMS ™™ 30 RF technicians to support monitoring and network operations ™™ 2 HAN support technicians ™™ Revenue protection team of 20 persons ™™ Meter test lab (1 contractor) ™™ 2 PMs supporting O&M projects Procurement model ™™ Request for Information (RFI) process (seven original vendors) for meter testing and analysis ™™ Formal RFP with competitive selection for all supporting contracts conducted in 2007-08 ™™ Supporting contracts: zz Informatica for ETL zz Tibco for ESB zz IBM for Systems Integration, operational support zz AT&T, Verizon for telco support ™™ Interoperability is very good, head-end to network is improving after early issues with data exchange ™™ Oncor PMO supervised all aspects of roll-out then transitioned to Ops team Potential lessons for South Asia ™™ Having a good plan in place for meter replacements, taking geography into consideration (safety concerns, accessing the meters) ™™ Following a geographic deployment that incorporates grouping of similar meter types, allowing ease of replacement in the future. The original roll-out plan should guide future replacement plans. 34  Survey of International Experience in Advanced Metering Infrastructure and its Implementation   4.3.2 Commonwealth Edison (ComEd) CASE STUDY: ComEd Location: Illinois, United States Investor-owned 4 million Customers Full Implementation Total Cost of AMI Implementation: Total Number of Meters Installed: $1.6 billion 4 million Communication Type: Backhaul Network: Wireless 900 MHz RF mesh, cellular (3G) Cellular 3G, upgrading to 4G Smart Meter: Communication MDAS/HES Vendors: MDMS Vendors: Aclara, L&G Provider (FAN): Itron (Silver Spring Oracle Itron Networks) Enabled Features: AMI Integrated with: ™™ Remote Connect/Disconnect ™™ Billing and collection system ™™ Outage Reporting ™™ Outage management system ™™ Voltage Monitoring ™™ Data analytics system ™™ Tamper Detection ™™ Distribution automation system Figure 20: ComEd Communication Infrastructure Assumes after phase-in Meter Data Raw Best Available Billed Products Time to Near Real Time Next Day Post Billing (Monthly) Delivery ComEd Internal Systems UIQ 2 AMI CIMS Meter Network MDM CEDAR Systems Silver Link VPN CEDI/EDI View 4 IHD’s Gateways Anonymous data 7 3 Historical Interval Usage 1 1 6 5 Note: CEDAR = Chronological Energy and Demand Activity Repository; CEDI = Common Electronic Data Interchange; CIMS = Customer Information and Management System.    CHAPTER 4: Implementation Experience by Utilities  35 ComEd is a utility based in the Midwest region of has plans to switch from 3G to LTE. Also utilizing the United States that has been in business for the communications network are distribution over 100 years. A subsidiary of Chicago-based automation and other Smart City devices. Exelon Corporation, it provides energy to 4 million customers within a 11,400 square-mile area. The AMI Cost Savings: ComEd estimated AMI cost savings utility has revenues of about $15 billion annually. in the following areas: ComEd’s smart grid investments began in 2012 and ™™ Meter readings its roll-out is scheduled for completion by the end ™™ Remote disconnect/reconnect of 2018. ™™ Reduced truck rolls AMI System and Communications: ComEd utilizes a ™™ Operational efficiency 900 MHz mesh network with a cellular 3G backhaul, with over 8,000 access points on main poles. ComEd ™™ Reduced outages Table 10: ComEd: Cost/Benefit Analysis for AMI Base Case Base Case Item (5-year Deployment) (10-year Deployment) A. Costs (Cumulative 20 years) O & M Expenses for AMI System $665 $653 New Capital Investment for AMI System $996 $1,031 Sub-Total $1,661 $1,684 B. Operational Benefits & Delivery Service Revenues (Cumulative 20 years) Operational Efficiencies & Cost Reductions $1,625 $1,539 Avoidance of Capital Expenditures $3 $3 Collection of Delivery Service Revenues Due to Reduction in $564 $531 UFE and CIM Sub-Total $2,192 $2,073 C. Additional Benefits (Energy, Transmission and Other Rider Cost Reductions and Revenues) (Cumulative 20 years) Reduction in Energy Purchased Power Costs Due to Reduction $708 $667 in UFE and CIM Collection of Energy and Other Revenues Due to Reduction in $1,051 $991 UFE and CIM Reduction in Bad Debt Expenses $791 $745 Sub-Total $2,550 $2,403 D. Total (Cumulative 20 years) Benefits Less Costs $3,081 $2,795 E. Net Customer Impact Net Present Value (NPV) $1,296 $1,152 Discounted Payback Period (Customer Perspective) 8 Years 9 Years All $ values in Millions. NPV calculated based on discount rate = 4.27% (20-yr Treasury Rate). 36  Survey of International Experience in Advanced Metering Infrastructure and its Implementation   Data Analytics for Improved Efficiency: ComEd Throughout the pilot phase, ComEd compensated believes that through its AMI deployment, it will customers for completing surveys, which has helped decrease the utility’s net CO2 emissions by reducing ComEd add a large amount of data to evaluate their both energy generation and the number of trips project’s effectiveness in meeting their smart grid required for meter readers, resulting in less driving vision. ComEd has currently completed 95 percent mileage with company vehicles. of their AMI roll-out, installing about 4 million meters to date. ComEd’s AMI roll-out also included ComEd AMI Deployment: ComEd began its AMI roll- a number of tools, including a metering head-end out by conducting limited pilot programs in various communications system, customer web portal, meter geographic areas, starting in 2009. As ComEd data management system and a business process collected customer feedback, it continued to rollout management suite designed to integrate applications smart meters in various other geographic sectors. with existing ComEd systems. Table 11: AMI Implementation Details – ComEd Meters ™™ Aclara i210c, L&G ™™ 15 year life expectancy ™™ 900MHz wireless ™™ No batteries ™™ Common failure types include temperature, radio issues, circuit board defects and over- voltage scenarios DCU ™™ Itron/Silver Spring Networks using SilverLink – uses Itron/Silver Spring access points and cell relays ™™ 900 MHz wireless Communications ™™ 900 MHz RF mesh (already existed) Network ™™ 100% 3G with plans to move to 4G, cellular (Sprint and Verizon) ™™ Issues experienced include: zz Sharing the network with other devices (DA, IoT, Smart City) zz Seasonal issues may occur due to weather and foliage cover disrupting signals MDAS/HES ™™ Silver Spring UIQ MDMS ™™ Oracle MDM Customer Information ™™ MDM integrated with billing, use a dedicated app (Chronological Energy and Demand System/Billing System Activity Repository, or CEDAR) for complex billing Resources and Change ™™ 80% of the meter installation was conducted using ComEd technicians, with the Management remaining 20% staffing provided under a support contract ™™ Have experienced problems with reboot/reconnect of communications devices following an outage ™™ Generally, the network is working very well    CHAPTER 4: Implementation Experience by Utilities  37 Procurement Model ™™ Existing contracts ™™ Request for Information (RFI) process ™™ Contracts executed during 2011-12: zz Aclara smart meter (executed over 12 months) zz Verizon and Sprint for telco (pre-existing) zz LTE back-haul zz Silver Spring (now Itron) for MDAS zz Oracle for MDMS (provided by parent corporation) zz Additional support personnel for meter installation zz Deloitte and Accenture for systems integration of MDAS and MDMS ™™ ComEd managed overall implementation through a dedicated Project Management Office (PMO), later transitioned key personnel to AMI operational support team Potential Lessons for ™™ Balance the network load by splitting the network appropriately so that it can handle the South Asia AMI and other networks ™™ Found access point antennas mounted on the top of utility poles to be more reliable and accessible 4.3.3 Southern California Edison (SCE) CASE STUDY: SCE Location: California, United States Investor-owned 5.1 million Customers Full Implementation Total Cost of AMI Implementation: Total Number of Meters Installed: $1.6 billion 5.1 million Communication Type: Backhaul Network: 900 MHz proprietary RF mesh, cellular (3G) Cellular Smart Meter: Communication MDAS/HES Vendors: MDMS Vendors: Itron Provider (FAN): Itron Itron Itron Enabled Features: AMI Integrated with: ™™ Remote connect/disconnect ™™ Billing and collections system ™™ Outage reporting ™™ GIS system ™™ Bi-directional support for solar ™™ Outage management system ™™ Tamper detection ™™ Data analytics system 38  Survey of International Experience in Advanced Metering Infrastructure and its Implementation   Figure 21: SCE Grid Current State, January 2016 GRID OPERATIONS Current State of the Grid + Substation Monitoring Command Center + Outage Management Switched Capacitor Fault Indicator Capacitor Automated Bank Switch (Voltage Control) Circuit Breaker Circuit (Simple Protection) Breaker (Simple Protection) Transformer Transformer Fault One way power flow Indicator Switched Circuit#1 Switched Capacitor Capacitor Transformer Transformer Switched Automated Capacitor Manual Switch Switch (Remote Controlled) (Recloser) Circuit#2 Source: Fauld https://www.edison.com/content/dam Indicator /eix/documents/innovation/SCE%20Gr id%20Modernization%20Concept%20of %20Operations%201.17.16b.pdf Page No: 6 Southern California Edison (SCE), the largest ™™ An interconnection process that is evolving to subsidiary of Edison International, is the primary manage the significant increase in distributed electricity supply company for much of Southern generation interconnection (primarily solar PV) California, United States. It provides 14 million requests; people with electricity across a service territory of ™™ A rate structure that attempts to reduce energy approximately 50,000 square miles. usage through an increasing cost tier structure SCE’s distribution system: SCE’s current distribution for increasing usage; system and service model have the following features ™™ A rate structure that creates incentives to (see Figure 21): increase adoption of distributed generation ™™ Radial circuits with voltage and VAR control (primarily solar PV) including Net Energy automation (bandwidth settings on capacitor Metering that provides an additional incentive to banks); increase adoption by reducing embedded costs    CHAPTER 4: Implementation Experience by Utilities  39 Figure 22: SCE Communications Network Overview Security Management System (resides in Grid Infrastructure Management System) IMS Network Management (resides in Grid Infrastructure Management System) Communications System Local Area Central Wide Area Network Network Infrastructure Infrastructure Field Area Local Area Network Network Distributed Infrastructure Infrastructure High Perf Mid Perf Low Perf Edge (msec, Gb) (msec, Gb) (msec, Gb) Device Device Device for transmission and distribution (the typical instance, the WAN infrastructure subsystem may solar customer reduces consumption by 50 include high-speed fiber; 4G cellular; 5G cellular; percent with a solar PV installation); and dedicated, utility-owned, cellular point-to- ™™ Federal Investment Tax Credits in effect through multipoint or point-to-point systems. Similarly, the the end of 2016 that create a further incentive FAN subsystem may include meshed networks, long for solar PV adoption; range point-to-multipoint networks, Power Line Carrier (PLC) networks, and legacy FAN systems. ™™ A variety of energy efficiency and demand The LAN subsystem will comprise multiple locally response programs created through a regulatory distributed subsystems which may include fiber, process not connected to the residential rate Ethernet, and Wi-Fi, requiring specific levels of structure or a market price signal; local security or connectivity performance. These ™™ An aging infrastructure with significant need for different communication subsystems effectively capital improvements; provide a hierarchy of connectivity between three “domains”: Central, Distributed, and Edge ™™ A high latency/low bandwidth telecommunications (see Figure 22). system; and ™™ Recent system-wide deployment of smart meters. AMI Cost Savings: Table 12 shows SCE’s cost savings from AMI. AMI System and Communications: The communication system is composed of three SCE AMI Deployment: As the largest roll-out of smart infrastructure subsystems: WAN, FAN and LAN. meter technology ever undertaken in the United The communication system will ultimately comprise States, SCE’s “Smart Connect™” project demanded multiple sets of each of the three technologies. For a comprehensive, multi-layered solution – one that 40  Survey of International Experience in Advanced Metering Infrastructure and its Implementation   Table 12: SCE SmartConnect Costs and Benefits Deployment Post-Deployment Deployment Post-Deployment $ Millions, Nominal Costs Costs Benefit Benefit Operations Capital 1,187.9 410.2 86.5 341.6 O&M 258.3 823.1 170.7 3,704.4 Total 1,446.2 1,233.3 257.1 4,046.0 Demand response Capital 38.8 16.3 70.3 161.8 O&M 148.5 332.6 110.2 2,792.0 Total 187.3 348.8 180.5 2,953.8 Total (operations and Capital 1,266.7 426.4 156.8 503.4 demand response) O&M 406.8 1,155.7 280.8 6,496.3 Total 1,633.5 1,582.1 437.6 6,999.7 Total 3,215.6 7,437.3 Note: Deployment refers to implementation and post-deployment refers to support and maintenance. The rates shown in the table are undiscounted. could define new business and technical processes 10,000 meters. This phase lasted about one before addressing the myriad logistical issues year. associated with implementation. The smart meters ™™ Phases III and IV – Full meter deployment of were deployed over four phases spanning six years approximately 5.2 million meters. The main (2007–12). contractor, CORIX, was responsible for residential ™™ Phase I – Project planning for business process installation, including all personnel, AMI inventory, design, initial systems integration work, equipment, warehouse and office space, software, development of a test plan, and development of and work management tools. Teams from SCE a policies and procedures manual. conducted the equivalent implementation for ™™ Phase II – Pilot installation and testing of systems commercial customers. Meter deployment was integration work and execution of the test conducted as a geographical roll-out with each plan, including the installation of approximately sector installed and tested across the state. Table 13: AMI Implementation Details – SCE Meters ™™ Itron Centron and a limited number of L&G meters ™™ 20-year replacement cycle planned ™™ 900MHz wireless ™™ Issues experienced with security key, circuit board, clock battery, interoperability with L&G meters DCU ™™ Itron Open Way Collection Engine ™™ 3G cellular    CHAPTER 4: Implementation Experience by Utilities  41 Communications Network ™™ 900 MHz proprietary radio network ™™ 3G cell over commercial carrier + satellite backup ™™ Issues experienced include lack of cell coverage in rural locations, some underground meter locations (i.e., meter located in basement of apartment) MDAS/HES ™™ Itron Open Way Collection Engine MDMS ™™ Itron IEE MDM Customer Information System/ ™™ SAP Customer Service module hosted on mainframe Billing System ™™ Also integrated with GIS system (ESRI) Resources and Change ™™ Dedicated matrixed project team was formed from cross-section of business in Management order to implement end-to-end. ™™ Post-implementation period required changes in field force, less meter readers ™™ Some staff downsizing resulted from improved efficiencies of new AMI Procurement Model ™™ Conducted 3 separate field trials across several geographies ™™ Contracts executed: zz Itron and L&G for meter procurement zz Corix for meter installation, FAN, WAN, MDAS and MDMS (with IBM as sub- contractor for SI) zz Separate contracts for three telephone carriers (1 satellite, 2 cellular) zz Itron meter was selected in 2009, additional contracts were finalized 2010 and 2011 ™™ Specified during procurement that equipment must be standards-compliant as this will provide significant benefits during later upgrades ™™ Head-end system had numerous issues due to defects, although vendor support in resolving proved to be very good ™™ Sub-set of meters are L&G and proved difficult to integrate with remainder (Itron) ™™ Residential installation was completed by Corix while commercial installation was completed by SCE field teams Potential Lessons for South Asia ™™ Large geographic roll-out required a significant planning and provisioning effort to support field crews. A network of staging warehouses was set up to store and push equipment closer to the field activities. Due to the large number of meters installed, close coordination with the manufacturer was required to ensure a sufficient number of meters are delivered to staging warehouses ™™ Rapid changes to the mobile network infrastructure as carriers upgrade to 5G cellular poses some technology risk to SCE and raises questions regarding the expectation for a 20-year useful life for the current generation of meters ™™ SCE found that the most valuable use cases to be: zz Power Quality Monitoring zz Grid Analytics zz Remote Interval Data Collection zz Remote Connect and Disconnect ™™ SCE did not fully implement the Demand Response (load limit/control) use case 42  Survey of International Experience in Advanced Metering Infrastructure and its Implementation   4.3.4 Baltimore Gas & Electric (BG&E) CASE STUDY: BG&E Location: Maryland, United States Investor-owned 1.2 million Customers Full Implementation Total Cost of AMI Implementation: Total Number of Meters Installed: $654 million 1.2 million Communication Type: Backhaul Network: Two-way RF mesh, cellular 3G Cellular/fiber Smart Meter: Communication Provider MDAS/HES Vendors: MDMS Vendors: Oracle Itron (FAN): Itron Itron Enabled Features: AMI Integrated with: ™™ On demand readings ™™ Billing and collection ™™ Remote disconnect ™™ Outage management ™™ Power quality monitoring ™™ Data analytics (in progress) ™™ Outage Reporting ™™ Distribution automation Based in Baltimore, Maryland, United States, BG&E electricity during the event, allowing them to earn is one of the United States’ oldest utility companies, bill credits. These calculations are performed within having been in operation for over 200 years. The the MDMS. Having implemented Smart Energy utility serves more than 1.2 million consumers within Rewards and Smart Energy Manager programs, BG&E an area of 2,300 square miles. The utility began its anticipates cost savings from these as well. Some AMI initiatives in 2010 and has deployed more than key benefits realized from the deployment were 1.8 million smart meters to date. (see Figure 23): AMI System and Communications: BG&E utilizes ™™ O&M savings for meter readings, meter a two-way RF mesh with a cellular 3G backhaul for maintenance, service orders and collections, transmission connected by fiber to the data center. outage response, and demand response The smart meters do not have a battery but are improvements capable of local data logging. Monitoring of smart ™™ Avoided capital expenditures relating to legacy meters is done at a one-hour intervals for residential metering systems customers and at 15-minute intervals for commercial ™™ Avoided transmission and distribution customers. Network health status checking and infrastructure monitoring is also set up. ™™ Wholesale capacity market benefits; these AMI Costs Savings: Through AMI, BG&E has been include peak demand reductions and energy able to introduce a time-based rate program to reductions all customers with smart meters. BG&E is able to notify customers about forecasted peak events and BG&E AMI Deployment: Through its AMI customers have the option to choose to use less deployment, BG&E sought to enhance their existing    CHAPTER 4: Implementation Experience by Utilities  43 Figure 23: BGE Smart Grid Reported Costs and Benefits BGE Smart Grid Reported Costs and Benefits (PV $ millions) 1400 4 Avoided Missions 88 1200 Avoided Distribution 115 Avoided Transmission 137 1000 Avoided Energy Cost 101 20 Energy Price Mitigation 800 62 Energy Revenues 213 600 Avoided Capacity Cost 43 Capacity Price Mitigation 400 280 Capacity Revenues 654 Distribution O&M 200 162 Reliablity, Reduced Theft & Consumption 101 0 Avoided Meter Related Capital (w/DOE grant) Total Costs Total Benefits system, which was considered to already be introduced a new MDMS, which allowed the firm “smart”. This allowed BG&E to leverage its existing to use AMI data to optimize its use of the existing communications network. The AMI was rolled out technologies. The AMI deployment also built upon territory-wide. As part of the deployment, BG&E an existing direct load control program. Table 14: AMI Implementation Details – BG&E Meter Itron DCU ™™ OEM equipment, installed in-house ™™ Two-way RF mesh Communications Network ™™ MDS ™™ Cellular 3G ™™ Fiber to data center ™™ Issues experienced include incomplete (inaccessible) RF coverage to indoor meters MDAS/HES ™™ Itron/Silver Spring UIQ MDMS ™™ Oracle MDM 1.6 ™™ Migrate to Oracle MDM 2.2 (1st quarter 2018) Customer Information ™™ Oracle CC&B System/Billing System 44  Survey of International Experience in Advanced Metering Infrastructure and its Implementation   Resources and Change ™™ To accelerate the pace of installation, BG&E negotiated with the original vendor to Management increase the number of planned installers in the field, a second installation vendor was brought on board, and BG&E cross-trained more of its own technicians to perform installations Procurement Model ™™ Contracts executed: zz Silver Spring Networks (Itron) competitively selected as prime contractor for meters, MDAS and installation in 2010 zz C3 Energy – smart grid analytics via software-as-a-service (SaaS) ™™ $200 million in funding was provided by federal government ARRA grant Potential Lessons for ™™ Taking geography into consideration for RF issues South Asia ™™ Shared RF spectrums may cause issues ™™ Difficulty accessing indoor meters for replacement ™™ Ability to adapt to product defect issues causing supply chain delays 4.3.5 Electrobras CASE STUDY: ELECTROBRAS Location: Brazil Publicly Held, Government 4 million Customers Partial Implementation Stake (Nationally) Total Cost of AMI Implementation: Total Number of Meters Installed: BRL 1.2 billion/$710 million 55,000 (Electrobras is made up of six distribution companies; this number represents the deployment in only one of those, Electrobras Amazonas Energia) Communication Type: Backhaul Network: RF mesh, cellular 3G Cellular Smart Meter: Communication Provider MDAS/HES Vendors: MDMS Vendors: Itron, ELO (FAN): Cisco Siemens, Itron Siemens Enabled Features: AMI Integrated with: ™™ Remote connect/disconnect (10%) ™™ Billing and collection ™™ Outage reporting ™™ GIS ™™ Voltage monitoring ™™ Outage management ™™ Tamper detection ™™ Data analytics (in progress) ™™ Distribution automation    CHAPTER 4: Implementation Experience by Utilities  45 Table 15: Electrobras Project Funding Product line IBRD/IDA Lending instrument Investment Project Financing Non-World Bank funding $ 214.30 million World Bank – IBRD commitment $ 495.00 million Total project funding $ 709.30 million Source: World Bank Projects and Operations: Electrobras Distribution Rehabilitation. Electrobras is a major Brazilian electric utility and Brazil-based Telemont Telecommunications company. It is also Latin America’s biggest power Engineering – committed to draw heavily on local utility company, and the tenth largest in the world. labor to install the meters, promoting employment Electrobras holds stakes in multiple Brazilian electric in a relatively poor part of Brazil. Additionally, a companies, so that it generates about 40 percent and recycling and waste management system was transmits 69 percent of Brazil’s electric supply. established for the meters being replaced by the new smart meters, with the objective of recycling almost AMI Project: The development objective of the all the materials in the old meters and so greatly Electrobras Distribution Rehabilitation Project reducing the waste generated by the replacement (partially financed by the World Bank, Refer program. Table 15) for Brazil – which includes an AMI system upgrade – is to improve the financial and operational Electrobras AMI Deployment: Prior to 2016, with performance and the commercial management of combined funding of R$1.2 billion (US$710 million), the six distribution companies (DisCos) by reducing the Electrobras “Energia+” project improved electricity losses, increasing bill collection rates, and operational efficiency by enhancing service quality improving quality of service. and reducing non-technical losses, which reach 22 percent in the north and 10 percent in the northeast The project seeks to improve the quality of service, of Brazil, according to the National Electric Energy reduce electricity losses and increase collection Agency (Agência Nacional de Energia Elétrica, or rates in electricity distribution and retail through the ANEEL). The Measurement Intelligence Center (CIM) acquisition of goods, equipment, works and services inaugurated by Electrobras in Brasília in 2016 allows in three areas: distribution network reinforcement; the utility to track the increase in revenues, optimize implementation of AMI and other efforts to maximize operating costs, improve service quality and reduce metered consumption; and modernization of the energy losses. The CIM is part of Electrobras’ AMI DisCos’ Management Information Systems (MIS). In project, which uses intelligent meters to collect data addition, it includes support for strengthening the remotely through a communication network, after operational capacities of the DisCos by providing which it is then interpreted, identifying potential technical assistance. fraud and measurement errors. AMI Benefits and Cost Information: AMI has provided At the next stage, the smart grid will allow some notable benefits for Electrobras. The winning companies to sell their surplus energy and enable bidder – a joint venture between Siemens, Itron, prepaid offers and dynamic pricing. The FAN 46  Survey of International Experience in Advanced Metering Infrastructure and its Implementation   architecture is based on an open technology platform development of new applications and services and that uses industry standards, thus ensuring the constant innovation. Table 16: AMI Implementation Details – Electrobras Meters ™™ Itron SL for medium voltage (3-phase) ™™ ELO 2133T and 2133T200 for low-voltage metering (3-phase) ™™ 15 to 20–year replacement cycle planned ™™ RF mesh 915 MHz ™™ Issues experienced with connection protocols during roll-out, requiring some reengineering to establish “translator” capability to allow meter operation over national standard for Brazilian wireless networks DCU ™™ 914 MHz dedicated frequency ™™ RF mesh ™™ Point-to-point over 3G ™™ Cisco Field Area Network (FAN) architecture Communications Network ™™ RF mesh operated by commercial carriers ™™ 3G cellular over commercial carrier (multiple vendors) ™™ Data transmitted in real time by the wireless network directly to Electrobras Metering Intelligence Center ™™ Issues experienced include lack of cell coverage in some locations by single vendor, necessitating opening the network to multiple carriers; additional antenna required for RF mesh network based on geographical limitations of original plan MDAS/HES ™™ There are two MDASs: Siemens SADE for medium-voltage meters and Itron’s Open Way Collection Engine (OWCE) for low-voltage meters. ™™ Issues experienced with the integration between communications module and meters, as well as between older (previously installed) meters and MDAS MDMS ™™ Siemens Meter Data Management application running on smart grid application platform eMeter EnergyIP Customer Information System/ ™™ Data exchange to billing is via web service Billing System Resources and Change ™™ Separate project management offices were established for each of the six Management distribution subsidiaries of Electrobras for project implementation ™™ For the operational management of AMI and MDMS, a single operations center for all companies was created and each company is represented by a team of analysts (three per company)    CHAPTER 4: Implementation Experience by Utilities  47 Procurement Model ™™ Competitive bidding and source selection, specifically including international vendors ™™ Contracts executed: zz Joint offering between Siemens, Itron, and Cisco zz Brazil-based Telemont Telecommunications Engineering for meters and implementation services, transition to operations and ongoing operations and maintenance zz Meters were a combination of imported Itron and Brazilian-designed/built ELO zz Included economic commitment to draw heavily on local labor to install the meters, promoting employment in a relatively poor part of Brazil zz Contracts formulated and executed during 2010-2012 ™™ Communications infrastructure incompatibility with connection protocols caused some reengineering during roll-out ™™ Communications problems experienced with point-to-point transmissions using imported equipment that was not configured to the national standard for Brazilian wireless Potential Lessons for ™™ Communications infrastructure proved to be insufficient for the initial roll-out, South Asia requiring significant additional planning and redesign ™™ Energy regulatory and national purchasing regulations proved to be an initial hurdle for international vendors; with help from the World Bank, most of these were overcome during procurement 4.3.6 ENEL CASE STUDY: ENEL Location: Italy Publicly Held, Government Stake 27 million Customers Full Implementation (Italy) Total Cost of AMI Implementation: Total Number of Meters Installed: €2.1 billion/$2.6 billion 32 million Communication Type: Backhaul Network: RF mesh/BPL, 3G/GPRS/4G PLC Smart Meter: Communication Provider MDAS/HES Vendors: MDMS Vendors: In-house (FAN): In-house BPL In-house No formal MDMS platform. Several functions handled in SAP IS-U Enabled Features: AMI Integrated with: ™™ Remote connect/disconnect ™™ Billing and collection ™™ Load profile monitoring ™™ GIS ™™ Outage reporting ™™ Outage management ™™ Voltage monitoring ™™ Data analytics ™™ Distribution automation 48  Survey of International Experience in Advanced Metering Infrastructure and its Implementation   Enel is an Italian multinational manufacturer and the financial and operational benefits the utility distributor of electricity and gas. Enel, which industry can derive from them. originally stood for Ente nazionale per l’energia elettrica (National Board for Electricity), was first In the fall of 2017, Enel began replacing its fleet established as a public body at the end of 1962, of 32 million smart meters with its new Enel Open and then transformed into a limited company in Meter. This decision was driven by increased 1992. In 1999, following the liberalization of the smart meter performance and functionality, electricity market in Italy, Enel was privatized; as of as well as dramatically lower costs since Enel’s February 2015, the Italian government owned 25.5 initial go-around. This new technology will allow percent of the company’s shares. for the balance of supply and demand due to smart meters’ ability to read meter events, and AMI System and Communications: Enel began subsequently allow for the leverage of historical introducing smart meters in 2001 with the data analysis. Also under the umbrella of this commencement of its Telegestore project. project is Enel’s fiber-to-the-home initiative, Completed in 2006 at a cost of $ 2.6 billion, this which will see 224 towns across Italy connected to project saw the installation of approximately 32 ultrafast broadband at a cost of over $2.8 billion. million smart meters for Italian households and The utility is beginning to invest in this innovative businesses. The success of the project helped communications solution due to the vast reduction advance the smart meter movement by supplying in fiber thickness realized over the past decade, a valuable template for other utilities looking meaning Enel will mostly be able to avoid digging to introduce AMI. During implementation, Enel up streets for installation. reported that 80 utilities had visited the company to gain insights into the Telegestore project. Figure 24 illustrates Enel’s AMI network, including Ultimately, this project helped demonstrate the its Automatic Meter Management (AMM) central feasibility of installing the smart meters as well as system. Figure 24: ENEL AMI NETWORK Overview AMM Central System Public Communication Modem Network LV Concentrator Secondary Sub-Station MV-LV House House Electronic Meter Electronic Meter LV Network Note: LV = low-voltage. MV = medium-voltage.    CHAPTER 4: Implementation Experience by Utilities  49 Table 17: AMI Implementation Benefits – ENEL Customers Operators ™™ Invoicing on real consumption ™™ Peak shaving ™™ Remote contract management ™™ Reduced energy efficiency and emissions ™™ Tailored tariffs ™™ Reduced commercial and technical energy losses ™™ Savings on billing ™™ Operating cost savings ™™ Pre-payment options ™™ Innovation and flexibility ™™ Improved customer satisfaction ™™ Improved quality of service AMI Benefits and Cost Information: AMI has generation smart meters in June 2016. Once again, provided some notable benefits for ENEL Enel opted to develop its own meter design, which customers and operators, as shown in Table 17. it called “Open Meter”. The device is designed to comply with the technical specifications and AMI Cost Savings: Figure 25 illustrates AMI cost performance requirements for new meters set savings accruing to ENEL in terms of investment by the Italian Authority for Electricity, Gas and and savings areas. Water. Key improvements compared to the first- ENEL AMI Deployment: Enel and its Italian generation smart meters include 15-minutes data distribution grid operator, e-Distribuzione, first resolution, easy access to data for consumers, and outlined their plans for the transition to second- faster response times for actions such as change Figure 25: ENEL Investment and Savings Overview Investment and Saving Areas TOTAL INVESTMENTS 2100 M€ PRODUCTION AND INSTALLATION PRODUCTION AND INSTALLATION IT SYSTEM R & D COSTS OF ELECTRONIC METERS OF CONCENTRATORS DEVELOPMENT Theft and Self Failures Consumption Purchasing Revision Check on Meters Internal Warehouses Transportation Revenue Protection Purchasing and Logistics Saving Areas Customer Services 500 M€/Y Field Operations Installation Interventions Customer Collection on Failures Services and Recovery Replacement Activation Deactivation Bad Prayers Invoicing Failed Accesses Readings 50  Survey of International Experience in Advanced Metering Infrastructure and its Implementation   of suppliers. The second-generation meter will also of the main changes is the introduction of dual PLC act a smart network sensor, enabling continuous (enhanced data concentrators capable of capturing grid quality-of-service monitoring, near-real-time gas and water usage data) and RF (169 MHz) identification of network faults, and renewable communication paths to comply with new network micro-generation. From a system perspective, one security requirements by the regulator. Table 18: AMI Implementation Details – ENEL Meters ™™ Designed and built to EU mandate (M/441) ™™ CENELEC – development of an open architecture for utility meters specifying communication protocols for interoperability ™™ Family of meters includes: zz Enel Open Meter 2.0 zz Meter Model GEM/GISM (Single Phase) zz Meter Model GET1/GET3A/GIST (Polyphase) zz Meter Model GET4S/GISS (Polyphase) ™™ 15-year replacement cycle planned ™™ RF over 3G/GPRS/4G (varies by region and country, e.g. South America, Spain, Italy) ™™ Fiber-optic connection in selected cities DCU ™™ Custom Low-Voltage (LV) data concentrator ™™ 169 MHz dedicated frequency to comply with security requirements ™™ 3G/GPRS/4G cellular Communications Network ™™ 3G/GPRS/4G cellular over commercial carrier (multiple vendors) ™™ Issues experienced include loss of cell connectivity in some rural locations – addressed by setting up a duplicate wireless network in pockets of low coverage MDAS/HES ™™ Automatic Meter Management (AMM) central system – ENEL proprietary ™™ Integrates with SAP for billing, collections, work order management MDMS ™™ Siemens Meter Data Management application running on smart grid application platform eMeter EnergyIP ™™ Near-real-time data collection and analysis ™™ Experimenting with use of predictive analytics Customer Information ™™ SAP IS-U System/Billing System ™™ Italy using 15-minute intervals for billing calculation Resources and Change ™™ Logistics is considered the most critical factor for effective roll-out Management ™™ Complete supply chain set up, from manufacture of new equipment to disposal of old equipment ™™ Work order and scheduling automated much as possible to handle complexity of roll-out ™™ Customer and stakeholder communications actively managed throughout project – opportunity used to educate customers on the benefits of smart meter program    CHAPTER 4: Implementation Experience by Utilities  51 Procurement Model ™™ Competitive source selection for telecoms support ™™ ENEL is unique in vertically integrating its operations – from equipment design, development and manufacturing through to implementation and operation of electrical transmission and distribution Potential Lessons for South ™™ The regulatory and competitive environment in South Asia may preclude this level Asia of economic integration ™™ ENEL funds a significant product development effort through electrical utility operations Philadelphia Electric Company (PECO) CASE STUDY: PECO Location: Pennsylvania, United States Investor-owned 1.6 million Customers Full Implementation Total Cost of AMI Implementation: Total Number of Meters Installed: $415 million 1.6 million Communication Type: Backhaul Network: Point-to-point meter modem to base station Fiber-optic backhaul to head-end Smart Meter: Communication MDAS/HES Vendors: MDMS Vendors: Sensus Provider (FAN): Sensus Oracle MDM 1.6 Sensus Enabled Features: AMI Integrated with: ™™ Remote connect/disconnect ™™ Billing and collection ™™ Rapid outage and problem reporting ™™ Outage management ™™ Tamper and theft detection ™™ Data analytics ™™ Temperature and safety monitoring PECO, formerly the Philadelphia Electric microwave “core” network for Tier 1; a medium- Company, is an energy company founded in bandwidth radio frequency “backhaul” for Tier 2; a 1881 and incorporated in 1929. It became part low-bandwidth radio frequency “field area network” of Exelon Corporation in 2000 when it merged for Tier 3; and support for home area networks for with Commonwealth Edison’s holding company, Tier 4. The project involves installing 368 miles Unicom Corp. of fiber optic cable connecting 71 substations for the Tier 1 core network and providing new AMI System and Communications: PECO’s digital communications for existing system communications infrastructure is multi-tiered telemetry, voice, and protection applications; and comprises a high-bandwidth fiber optics and the Tier 2 wireless backhaul network connecting 52  Survey of International Experience in Advanced Metering Infrastructure and its Implementation   Tier 3 to Tier 1; and a Tier 3 network providing ™™ Improved electric service reliability and power system-wide communications for AMI and DA. The quality new communications infrastructure supports more ™™ Reduced truck fleet fuel usage flexible and reliable operation of the distribution system while allowing PECO to add future programs ™™ Reduced greenhouse gas and pollutant emissions and functionality for its customers. ™™ Advanced pricing programs AMI Benefits and Cost Information: Targeted ™™ Increased distribution automation benefits for the PECO AMI implementation include ™™ Distribution system energy efficiency the following: improvements Table 19: PECO Smart Meter Deployment Cost-Benefit Analysis ($ millions) 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Total Phase Two Costs: AMI Deployment $ (111.7) $ (130.6) $ (0.2) $ (242.4) IT Enablement $ (0.4) $ (17.9) $ (15.6) $ (0.1) $ (34.0) Business Integration $ (0.1) $ (3.3) $ (2.2) $ (5.7) Total Phase Two Costs $ (0.6) $ (132.9) $ (148.3) $ (0.3) $(282.1) Benefits: Avoided AMR Costs $ 0.7 $ 4.8 $ 16.2 $ 30.2 $ 32.3 $ 32.3 $ 32.3 $ 32.3 $ 32.3 $ 32.3 $ 245.4 PECO Operational $ 1.1 $ 4.3 $ 6.9 $ 6.9 $ 6.9 $ 6.9 $ 6.9 $ 6.9 $ 6.9 $ 53.5 Savings Customer (Societal) $ 0.8 $ 2.0 $ 3.4 $ 6.1 $ 6.1 $ 6.1 $ 6.1 $ 6.1 $ 6.1 $ 42.8 Benefits Total Benefits $ 0.7 $ 6.8 $ 22.4 $ 40.5 $ 45.2 $ 45.2 $ 45.2 $ 45.2 $ 45.2 $ 45.2 $ 341.8 Net (Cost) - Benefit $ 0.1 $ (126.1) $ (125.9) $ 40.2 $ 45.2 $ 45.2 $ 45.2 $ 45.2 $ 45.2 $ 45.2 $ 59.7 NPV 7.0 of (Cost) - $ (17.7) Benefits Alternative Phase Two Plan - (Proportionate Completion of Entire Service Territory by end of 2019) 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Total Phase Two Costs: AMI Deployment $ (27.7) $ (41.9) $ (40.4) $ (40.4) $ (40.4) $ (40.5) $ (21.4) $ (252.6) IT Enablement $ (0.4) $ (9.4) $ (9.8) $ (17.1) $ (2.1) $ (38.9) Business Integration $ (0.1) $ (3.3) $ (2.2) $ (5.7) Total Phase Two Costs $ (0.6) $ (40.5) $ (53.9) $ (57.4) $ (42.5) $ (40.4) $ (40.5) $ (21.4) $(297.1) Benefits: Avoided AMR Costs $ 0.7 $ 4.8 $ 8.0 $ 11.2 $ 14.4 $ 17.6 $ 20.8 $ 23.9 $ 32.3 $ 32.3 $ 165.9 PECO Operational $ 0.5 $ 1.3 $ 2.1 $ 3.0 $ 3.8 $ 4.7 $ 5.8 $ 6.9 $ 6.9 $ 35.0 Savings Customer (Societal) $ 0.3 $ 1.0 $ 1.8 $ 2.6 $ 3.4 $ 4.2 $ 5.2 $ 6.1 $ 6.1 $ 30.7 Benefits Total Benefits $ 0.7 $ 5.5 $ 10.3 $ 15.1 $ 20.0 $ 24.8 $ 29.7 $ 34.9 $ 45.2 $ 45.2 $ 231.5 Net (Cost) - Benefit $ 0.1 $ (34.9) $ (43.6) $ (42.3) $ (22.5) $ (15.7) $ (10.8) $ 13.6 $ 45.2 $ 45.2 $ (65.6) NPV 7.0 of (Cost) - $ (75.9) Benefits    CHAPTER 4: Implementation Experience by Utilities  53 Table 20: PECO Estimated Cost Recovery Estimates ($ millions) 20122 2013 2014 2015 2016 2017 2018 2019 2020 2021 Prior Period (Over)/ $ 2.2 $ - 9.4 $- $- $- $- $- $- $- $- Under Collection O & M Expenses 16.4 27.3 31.9 29.7 29.5 30 30.9 31.8 32.8 33.8 Depreciation 10.2 18.2 32.8 39.3 37.1 34.1 29.9 28.5 27.5 26.2 (incl. Accelerated AMR) Capital Revenue 10.5 11.6 27.4 32.9 30.6 28.2 31.6 32.5 31.5 28.6 Requirement3 Benefits and Avoided Costs (0.90) (5.90) (20.40) (37.10) (39.10) (39.10) (39.10) (39.10) (39.10) (39.10) Revenue Requirement $ 38.4 $ 41.9 $ 71.7 $ 64.9 $ 58.1 $ 53.2 $ 53.3 $ 53.7 $ 52.6 $ 49.4 Breakdown by Customer Class R 36.6 38 64.8 58.6 52.5 48 48.1 48.5 47.5 44.7 SCI 4 3.8 6.8 6.1 5.5 5 5 5.1 5 4.7 LCI 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 $ 40.7 $ 41.9 $ 71.7 $ 64.9 $ 58.1 $ 53.2 53.3 53.7 52.6 49.4 Estimated Surcharge Rates4 R - (¢/kWh ) 0.28 0.31 0.52 0.46 0.41 0.38 0.38 0.38 0.37 0.35 SCI - ( $/cust./mo.) $ 2.16 $ 2.27 $ 4.02 $ 3.62 $ 3.23 $ 2.95 $ 2.94 $ 2.95 $ 2.88 $ 2.70 LCI - ( $/cust./mo.) $ 2.15 $ 2.65 $ 4.02 $ 3.62 $ 3.23 $ 2.94 $ 2.94 $ 2.95 $ 2.88 $ 2.70 Average Customer Monthly Bill Impact R - 500 kWh $ 1.38 $ 1.53 $ 2.58 $ 2.31 $ 2.06 $ 1.88 $ 1.89 $ 1.90 $ 1.86 $ 1.75 SCI $ 2.16 $ 2.27 $ 4.02 $ 3.62 $ 3.23 $ 2.95 $ 2.94 $ 2.95 $ 2.88 $ 2.70 LCI $ 2.15 $ 2.65 $ 4.02 $ 3.62 $ 3.23 $ 2.94 $ 2.94 $ 2.95 $ 2.88 $ 2.70 Average Customer Annual Bill Impact R - 500 kWh $ 16.6 $ 18.3 $ 30.99 $ 27.77 $ 24.7 $ 22.6 $ 22.63 $ 22.8 $ 22.33 $ 20.99 SCI $ 25.86 $ 27.28 $ 48.23 $ 43.48 $ 38.77 $ 35.35 $ 35.26 $ 35.4 $ 34.54 $ 32.36 LCI $ 25.8 $ 31.84 $ 48.19 $ 43.43 $ 38.73 $ 35.31 $ 35.26 $ 35.4 $ 34.54 $ 32.36 Percent Impact on Total Customer Bill R - 500 kWh 1.50% 1.90% 3.20% 2.80% 2.50% 2.30% 2.30% 2.30% 2.30% 2.10% SCI 0.20% 0.20% 0.40% 0.30% 0.30% 0.30% 0.30% 0.30% 0.30% 0.20% LCI 0.01% 0.01% 0.02% 0.02% 0.02% 0.02% 0.02% 0.02% 0.02% 0.01% 1. Cost recovery includes Phase One + Phase Two costs and are net of Stimulus Grant Funding at approximately 48% of Gross Plant consistent with DOE Grant awarded to PECO (award No. DE-OE0000207). 2. Reflects calculation for SMCRS estimates for the period January 1, 2012 to December 31, 2012 as filled with the PUC on Dec. 15, 2011. 3. Reflects a 100% return on equity. 4. Rates include impact of Gross Receipt Tax (GRT) of 5.9%. 54  Survey of International Experience in Advanced Metering Infrastructure and its Implementation   PECO AMI Implementation: PECO proposed to The PECO point-to-point communications network implement its Smart Meter Plan in two phases. Phase relies on communications towers erected throughout One would focus on the selection of the AMI technology the service territory. The communication towers to be deployed, the implementation of a MDMS, provide a much broader communications footprint and other IT investments, including the testing and such that each meter communicates directly validation of the AMI technology and the deployment with the AMI network with minimal reliance on of the AMI communication network. Phase One was neighboring meters to complete the communication also expected to include the deployment of Smart paths. Thus, with a point-to-point system, it is much Meters in controlled quantities and the development easier to install a remote meter and communicate and implementation of a program to test dynamic immediately with the network. The AMI technology pricing and customer acceptance. selected by PECO will efficiently and cost effectively accommodate ad hoc requests for the installation Phase Two would then complete the full-scale of meters. deployment of Smart Meters across PECO’s entire service territory. Table 21: AMI Implementation Details – PECO Meters ™™ Sensus/Honeywell A3 ALPHA meter ™™ 20-year replacement cycle planned ™™ Point-to-point 900 MHz wireless to base station ™™ No issues were reported with the meters, likely due to the thorough product testing and selection process DCU ™™ Collectors, routers, and repeaters manufactured by Sensus USA ™™ Network components (collectors, router, and repeaters) connect smart meters to the AMI host via higher-capacity communication transport technologies ™™ The AMI host is a computer system that acts as the network controller for base station signal traffic ™™ Overall RF connectivity is reported as very reliable, with only occasional problems due to remote locations and underground-mounted meters Communications Network ™™ Core Foundation Network is a higher-capacity transport system from the AMI Network to the AMI Host ™™ Fiber-optic synchronous optical networking (SONET) communications rings, WiMAX wireless broadband communications for remote data backhaul, and the Sensus FlexNet network for direct meter communication and Distribution Automation (DA) devices MDAS/HES ™™ Sensus MDAS/HES solution MDMS ™™ Oracle MDM 1.6 ™™ Serves as a repository for meter interval usage and event data ™™ Performs Validation, Editing and Estimating (VEE) operations on raw data to allow the data to be used for billing purposes    CHAPTER 4: Implementation Experience by Utilities  55 Customer Information System/ ™™ Data integrated for billing through MDMS Billing System ™™ GIS is not yet completely integrated Resources and Change ™™ Dedicated deployment team directed from PECO command center Management (transitioned to operations center as system moved into production) ™™ The core of this team and the necessary processes were already in place at PECO due to an ongoing program of AMR meter replacement – this proved critical to the success of roll-out as PECO did not really have to reorganize for implementation ™™ Transition to steady state must include good knowledge transfer – majority of implementation team was transitioned to Steady State team – focus becomes repeatable processes ™™ Well communicated deployment plan– stakeholders engaged Procurement Model ™™ Initial vendor workshops held to demonstrate potential technical solutions ™™ Sent detailed Requests for Information (RFIs) to wide range of vendors ™™ Set up detailed Request for Proposal (RFP) process ™™ Evaluation process entailed technical analysis, commercial assessment, risk assessment (i.e., business risk), and financial health assessment of the vendor ™™ Extensively tested the meters of four different suppliers ™™ Elster-Sensus selected as prime contractor for implementation, provision of meters and collectors, operations of AMI network ™™ Procurement activities conducted from 2011 to 2012 Potential Lessons for South Asia ™™ Cyber security: PECO reports underestimating security costs, patches, etc. ™™ Sensus (contractor) operates network under SLA and Handles Security Operations Center (SOC), as well as security upgrades ™™ Large field force for roll-out was outsourced and needed to be extensively trained ™™ Quality control of vendors– close collaboration with Sensus for equipment, delivery, etc.– logistics challenges– staffing up 56  Survey of International Experience in Advanced Metering Infrastructure and its Implementation   4.3.8 AusNet Services Company CASE STUDY: AusNet Location: Victoria, Australia Investor-owned 7,00,000 Customers Full Implementation Total Cost of AMI Implementation: Total Number of Meters Installed: $A 686 million 6,80,000 Communication Type: Backhaul Network: WiMAX 2.4 GHz point-to-point, supplemented with Fiber optic (urban), 3G cellular and microwave (rural) Itron Wireless mesh backhaul to MDMS Smart Meter: Communication MDAS/HES Vendors: MDMS Vendors: Landis+Gyr Provider (FAN): N/A Siemens eMeter EnergyIP Motorola Enabled Features: AMI Integrated with: ™™ Remote connect/disconnect ™™ Billing system ™™ Load limiting ™™ Customer information system ™™ On-demand meter reads ™™ Load management ™™ Tamper detection ™™ Remote upgrade ™™ Last gasp AusNet Services (previously SP AusNet) is an below) – as one of five electricity distributors Australian energy company that is listed on the in Victoria, covering eastern Victoria and Australian Securities Exchange (ASX) and the eastern/northeastern suburbs of Melbourne; Singapore Exchange (SGX). AusNet Services operates and three energy networks in Victoria, Australia: ™™ A gas distribution network in Victoria (one of ™™ High-voltage and extra-high-voltage electric three gas distributors in Victoria). transmission network in Victoria (66 kV and AMI System and Communications: The AusNet above); AMI overview is depicted in Figure 26, showing the ™™ Low-voltage and medium-voltage electric unique Radio Access Network as part of the overall distribution network in Victoria (22 kV and operating solution.    CHAPTER 4: Implementation Experience by Utilities  57 Figure 26: AusNet AMI Network Overview WIMAX Access Services Network (ASN) WAN Customer Premise O&M Network BSS External (Home Area Network) WIMAX Radio CORE/Connectivity Service AMI Meters Access Network (CSN) Microwave to SAP CIS Home Area Network Fiber End Point CNMS MMS AAA Network Management System TCA to Market ASN DHCP DNS Fiber Network Gateway Corporate WAN Market MDMS Network Operations Centre HAN Radio Access Network WAN/IP Infrastructure NMS Business Market (Not in Scope) Systems Interfacing AMI Cost Savings: AusNet reported AMI cost savings ™™ Peak demand response in the following categories: ™™ Enhanced billing ™™ Meter reads Figure 27 shows areas (green text) in which AusNet ™™ Meter testing and its customers are benefiting from AMI. ™™ Network efficiency AusNet AMI Deployment: The AMI roll-out ™™ Time-of-use tariffs for AusNet officially started in 2009 through a Figure 27: AusNet AMI Focus and Benefits • Energy portals • Reconstruct LV network • Active voltage regulation using “banding” • Home Area Network enablement connectivity • Outage and restoration visualization • Active participation in energy ecosystem • Customer phase identification • GSL calculations • Database validation • Fuse operation Customer • Solar generation output monitoring LV Network Empowerment Connectivity Model Operational Monitoring, Control and Response Asset Data/Analytics Utilization Centric • Loading profiles Power Quality • Load balancing • Power factor • Voltage profiling • Integration of solar PV and • Power factor analysis electric vehicles Network/Asset • Brown out protection Deterioration and Safety Predictive Applications • Loss of neutral • LV asset condition • Demand management • Detection of non-technical losses • Network tariff optimisation • Unauthorised solar generation • Asset maintenance requirements 58  Survey of International Experience in Advanced Metering Infrastructure and its Implementation   state-wide government mandate. Distributors were ™™ Average time and cost of implementation far required to install smart meters at all homes and exceeded what was projected. business by the end of 2013. AusNet experienced ™™ More communications devices and Network implementation challenges due to the selection Interface Controller (NIC) cards were needed of WiMAX technology and difficulties in finding than planned. systems integration service providers who could work with this architecture. The utility learned the ™™ Customer engagement, including educating and following key lessons: informing customers about the smart meter roll- outs, must be adequately planned. Table 22: AMI Implementation Details – AusNet Meters ™™ Landis+Gyr E350 DCU ™™ WiMAX WAP 650 Motorola base stations operating at 2.3GHz Communications Network ™™ WiMAX used to connect to 4,40,000 smart meters; wireless mesh used to connect 3,40,000 smart meters with 3G cellular backhaul MDAS/HES ™™ N/A MDMS ™™ Siemens eMeter EnergyIP Customer Information System/ ™™ SAP IS-U Billing System ™™ Kinetics billing system Resources and Change ™™ AusNet reported trying several systems integrators to implement AMI but Management found that a dedicated internal team, supplemented by outside experts, was the best approach ™™ Metering team of 60 persons set up, supplemented with a 43-person technology support team ™™ No significant downsizing of personnel; AusNet implemented some changes of roles and responsibilities, supported by employee retraining Procurement Model ™™ Direct implementation rather than pilot; at the time, there were no other real examples of a utility using WiMAX ™™ Eventually required a hybrid solution which used RF mesh for meter connectivity due to lack of reception for WiMAX in many locations Potential Lessons for South Asia ™™ AusNet suggests a cautious approach in using WiMAX to meet the communications backhaul requirements    CHAPTER 4: Implementation Experience by Utilities  59 4.3.9 CMS Energy (Consumers Energy) CASE STUDY: Consumers Energy Location: Michigan, United States Investor-owned 1.8 million Customers Partial Implementation Total Cost of AMI Implementation: Total Number of Meters Installed: $750 million 823,000 (smart meters) Communication Type: Backhaul Network: Cellular 3G and 4G 3G and 4G cell modem direct to head-end through cellular towers to Itron Open Way collection engine Smart Meter: Communication Provider MDAS/HES Vendors: MDMS Vendors: Itron (FAN): N/A Itron Itron Enabled Features: AMI Integrated with: ™™ Remote connect/disconnect ™™ Billing and collection ™™ Outage reporting ™™ GIS ™™ Voltage monitoring ™™ Outage management ™™ Remote firewall upgrade ™™ Data analytics ™™ Distribution automation Founded in 1886 as the Commonwealth Power gas meters transmit daily gas consumption data to Company, CMS provides electricity and natural gas the electric meters for cellular upload to the utility. to more than 6.7 million Michigan residents through Having one network reduces costs and keeps things its principal business, Consumers Energy. The simple. consolidated operating revenue of CMS in 2017 was $6.6 billion. CMS AMI Deployment: Starting in 2012, CMS deployed smart meters on a geographic roll-out AMI System and Communications: Daily meter rather than on a customer demand basis. Their pace readings are communicated using existing 3G/4G of deployment was limited somewhat by the existing cellular networks and broken down by hour. numbers of CMS field staff and the meter equipment supply from the manufacturer. CMS first evaluated AMI Cost Savings: CMS estimated AMI cost savings in the meter technology in the lab. The firm piloted the following areas: up to 10,000 meters from three different vendors ™™ Meter readings as part of the evaluation and selection process, then ™™ Remote disconnect/reconnect combined the technical evaluation and lessons from the pilot effort with detailed RFP responses to select ™™ Reduced truck rolls the final vendors involved in the deployment process: ™™ Operational efficiency Corix, SAP, Itron, and Honeywell. The meters were ™™ Reduced outages activated for smart metering only after seven days of testing and data verification. CMS has completed 100 For some customers who use both electric and gas percent of its AMI roll-out, installing about 8,23,000 service, the gas meter modules are installed; the meters to date. 60  Survey of International Experience in Advanced Metering Infrastructure and its Implementation   Table 23: AMI Implementation Details – Consumers Energy Meters ™™ Itron with 4G LTE NIC cards ™™ 20-year life expectancy ™™ 4G cellular ™™ Battery: communication error will result in replacement (only in combined meter) DCU ™™ Not applicable – not using access points ™™ Negotiated with carriers and vendor to determine solution Communications Network ™™ 100% 4G cellular (Verizon) through Itron MDAS/HES ™™ Itron Open Way MDMS ™™ Itron Enterprise Edition (IEE) Customer Information System/ ™™ SAP application for billing Billing System ™™ ESRI GIS system – little integration. Latitude and longitude recorded at installation; information stored in SAP for work management Resources and Change ™™ Actual meter installation was conducted by contractor (Corix) Management ™™ All other AMI implementation activities were carried out by CMS field personnel, supervised by an existing operations team Procurement Model ™™ Leveraged many existing support contracts to shorten launch effort ™™ RFI process ™™ 1 contract with Itron via RFP and 1.5-year negotiation (2011-2012) covering: zz Provision of meters zz Verizon cellular (through Itron) zz Head-end ™™ Pre-pay application SaaS (PayGo) ™™ Demand response management system for critical peak pricing (Lockheed Martin) ™™ A/C load control (Honeywell) ™™ iFactors for additional network communications ™™ Itron/Silver Spring networks for web portal ™™ Meter installation vendor (Corix) ™™ Avoided interoperability issues during implementation by adhering to industry standards for demand response and other criteria (data exchange protocol – Smart Energy Profile 2.0) Potential Lessons for South Asia ™™ Engineering and architecture approach incorporated planning and design for easier AMI upgrade and replacement in the future ™™ Weak cell coverage required additional repeaters – on utility pole or in customer locations. Subterranean locations for meters in large buildings ™™ Workforce training involved stakeholder education on new technology features and benefits ™™ Well planned integration and implementation process    CHAPTER 4: Implementation Experience by Utilities  61 4.3.10 Pepco (PHI Holdings) CASE STUDY: PEPCO Location: Washington, DC, United States Investor-owned 2,90,000 Customers Full Implementation Total Cost of AMI Implementation: Total Number of Meters Installed: $71.6 million 2,70,000 Communication Type: Backhaul Network: Wireless mesh Cellular Smart Meter: Communication Provider MDAS/HES Vendors: MDMS Vendors: Landis+Gyr (FAN): N/A Itron ABB Wireless mesh, cellular backhaul Enabled Features: AMI Integrated with: ™™ Remote Connect/Disconnect ™™ Billing system ™™ Outage Reporting ™™ Customer information system ™™ Voltage Monitoring ™™ Outage management system ™™ Tamper Detection ™™ Distribution management system Founded in the late 19th century, Pepco is a utility ™™ Truck rolls based in the Eastern region of the United States. A ™™ Customer management unit of Exelon since 2017, Pepco supplies energy to about 8,42,000 customers in a 640-square-mile area Reduced Customer Outages: Pepco has prevented of Washington, D.C., and the state of Maryland. The over 6,000 customer outages in 2013 alone. The data utility has about 1,500 employees and estimated received through AMI has also helped Pepco with revenues of $3.6 billion annually. This utility was not transformer load management, allowing for more interviewed for this report, so the information in planned replacements of transformers. this section has been drawn from publicly available Pepco AMI Deployment: The AMI rollout of Pepco sources. involved Distribution Automation (DA) and demand AMI System and Communications: As shown in response programs with load control devices and time- based rates. The following are some of the benefits Figure 28, Pepco uses a wireless mesh network for realized by Pepco following their deployment: communications, engineering it to allow for DA traffic to be routed through as well. The same cellular ™™ Advanced customer service options and peak backhaul network is used to transfer both AMI and load control DA data to the appropriate systems. ™™ Reduced O&M costs AMI Cost Savings: Pepco reported AMI cost savings of ™™ Reduced meter reading costs more than $2 million in 2012 in the following areas: ™™ Improved system reliability ™™ Meter readings In terms of lessons learned, Pepco found that it was ™™ Billing processes beneficial to: 62  Survey of International Experience in Advanced Metering Infrastructure and its Implementation   Figure 28: Pepco Communications Infrastructure Home Intelligence Feeder Automation Substation Automation Transmission Automation AMI Collector Communications Tower Solar (or Wind) SF6 Line Switch Smart With Radio Thermostat Transceiver PHI Central PJM Operations Smart Distribution Poles Meter House Smart Substations (Transmission & Distribution) Electric Vehicles PHI Central Substation Operations Customer Meter Collector PJM Home Area Network Wireless Mesh Network Broadband Wireless Fiber-Optic Network Network Growing volume of data... ™™ Survey, ahead of deployment, the areas where ™™ Address cyber security during initial planning communications are challenging; activities; and ™™ Include quality audits in vendor contracts; ™™ Have a central program management office ™™ Provide customer education on smart grid to provide project management, change technologies; management and process improvement. Table 24: AMI Implementation Details – PEPCO Meters ™™ Landis+Gyr FOCUS AXR-SD ™™ Limited number of I-210+c GE model meters (exact numbers unknown) DCU ™™ ABB Tropos Communications Network ™™ Wireless mesh ™™ Cellular backhaul MDAS/HES ™™ Itron/Silver Spring UIQ MDMS ™™ Itron IEE MDM Customer Information System/ ™™ Itron IEE/SAP IS-U Billing System Resources and Change Management ™™ Not identified Procurement Model ™™ RFP process Potential Lessons for South Asia ™™ Pepco experienced issues doing meter replacements located in basements or garages. Pepco recommended conducting room surveys to determine the best way to ensure reliable communications with minimal signal interference.    CHAPTER 4: Implementation Experience by Utilities  63 4.3.11 CESC Ltd. CASE STUDY: CESC Ltd. Location: Kolkata, India Public Limited Company 3.0 Million Customers Area Wide Total Cost of AMI Implementation: Total Number of Meters Installed: Not available AMI: 51,500 AMR: 32,800 Communication Type: Backhaul Network: RF mesh Cellular, fiber Smart Meter: Communication Provider (FAN): MDAS/HES Vendors: MDMS Vendors: Secure, Genus Wireless mesh In-house hosted Not implemented Enabled Features: AMI Integrated with: ™™ Remote and on-demand reading ™™ MDAS and MDMS ™™ Remote disconnection/reconnection ™™ Metering, billing and collection (MBC) system ™™ Remote firmware upgrade ™™ GIS system ™™ Net metering ™™ Outage management systems ™™ Time-of-Day (TOD) pricing ™™ Mobile and web applications/self-service portal ™™ Last gasp and first breath ™™ CRM systems ™™ Events recording and notification ™™ Prepaid metering ™™ Power quality management/power factor management ™™ Local data logging with/without battery backup ™™ Data retention capabilities CESC Limited is one of India’s leading vertically ™™ Time-based pricing integrated utilities, with electricity generation and ™™ Revenue protection including tamper and theft distribution in and around the twin metropolises of protection Kolkata and Howrah. It serves 2.9 million consumers covering an active urban population of more than ™™ Consumption data exchange 17 million people across a service territory of 567 ™™ Net metering square kilometers. ™™ Loss and restoration notification AMI System and Communications: CESC Ltd. uses a RF mesh network for meter-to-access-point ™™ Remote on/off communications. The access point then communicates ™™ Power quality monitoring with the head-end system over a cellular and wired Ethernet backhaul. ™™ Energy auditing ™™ Integration with CRM, GIS, and customer The following are the AMI use cases in practice: self-service portal ™™ Communications with other intelligent devices ™™ Transformer health monitoring ™™ Load analysis of customers 64  Survey of International Experience in Advanced Metering Infrastructure and its Implementation   CESC AMI Deployment: In 2015, CESC Ltd. agreed Indian state of West Bengal, received the “Smart with United States-based utility Silver Spring to Grid Project of the Year” award at the 2016 Asian assist them in India in the smart grid space. CESC Power Awards. Ltd., which serves 2.9 million metering points in the Table 25: AMI Implementation Details – CESC Meters AMI: 51,500 AMR: 32,800 Smart meter procured from two vendors DCU Communication network devices have been procured from one vendor Communications Network In-house developed RF technology solution used for data exchange from meters to access point and cellular/Ethernet technology from access point to head-end server MDAS In-house developed head-end system in SaaS mode MDMS CESC plans to procure a MDMS in future. 4.3.12 Tata Power Delhi Distribution Limited (TPDDL) CASE STUDY: TPDDL Location: Delhi, India Public Private Company 1.64 Million Customers Area Wide Total Cost of AMI Implementation: Total Number of Meters Installed: Not available AMI: 75,000 Communication Type: Backhaul Network: RF mesh, GPRS Fiber, optical ground wire Smart Meter: Communication Provider MDAS/HES Vendors: MDMS Vendors: Landis+Gyr, HPL, L & T (FAN): Landis+Gyr Landis+Gyr Siemens e-Meter EnergyIP Enabled Features: AMI Integrated with: ™™ Remote and on-demand reading ™™ MDAS & MDMS ™™ Remote disconnection/reconnection ™™ MBC system ™™ Remote firmware upgrade ™™ Outage management system ™™ Net metering ™™ Mobile and web applications/self-service portal ™™ Time-of-Day (TOD) pricing ™™ CRM systems ™™ Last gasp and first breath ™™ Event recording and notification ™™ Prepaid metering ™™ Power Quality Meter (PQM)/pulse-frequency modulation (PFM) ™™ Local data logging with/without battery backup ™™ Data retention capabilities    CHAPTER 4: Implementation Experience by Utilities  65 Figure 29: TPDDL AMI Network FAN WAN CONTROL CENTER Smart Grid SCADA/ Gateway ADMS RF Mesh Gridstream Command Center Head-End System ROUTER Gridstream Interstream Suite Enterprise Services Bus INMS CIS/SAP (HTTP, SOAP, IMS) eA TPDDL Private ut IP WAN Ro COLLECTOR GIS e B out RF MULTI - HOP R IPv6 Standards Based OMS Deployment Configurations: Wide Area Mesh (Routers+Collectors) Time Sync Environment and Configurations Options: Development/Test/Production Production + High Availabily (HA) Production + Disaster Recovery (DR) Production + HA + DR Advanced Security + PANA DLMS/COSEM IS15959 & IS16444 IEC-61968-9 CIM Network Layer: HAN | FAN | WAN - Unified IP International Standards Tata Power Delhi Distribution Limited (TPDDL), ™™ Demand forecast previously North Delhi Power Limited, is a joint venture ™™ Volt-VAR control between the government of the National Capital ™™ Network planning Territory of Delhi and Tata Power Co. Ltd.It started operations in 2002 and currently serves 7 million people ™™ Virtual metering in the north and northwest parts of Delhi. It has a ™™ Remote meter reading and billing registered consumer base of 1.64 million. The company’s ™™ Tamper detection operations span an area of 510 square kilometers, with ™™ Energy audit a recorded peak load of around 2,014 MW. It is the only ™™ Load analysis of customers distribution utility to receive the ISO 9001, ISO 14001 and OHSAS 18001 certifications, and the only Indian ™™ Time-based pricing utility to have CMMI 3, SA8000 certifications. ™™ Revenue protection including tamper and theft protection AMI System and Communications: TPDDL ™™ Consumption data exchange uses RF mesh (at 865–867 MHz) and GPRS for communications, and both optical fiber cable and ™™ Net metering optical ground wire for backhaul communications ™™ Loss and restoration notification (see Figure 29). ™™ Remote on/off Use Cases in Practice: ™™ Demand response (load limit/control) ™™ Outage notification from the meter ™™ Energy pre-payment ™™ Calculation of reliability indices ™™ Power quality monitoring 66  Survey of International Experience in Advanced Metering Infrastructure and its Implementation   ™™ Energy auditing reducing theft and pilferage of electricity leading to ™™ Integration with CRM, GIS, and customer self- a significant reduction in AT&C losses. service portal In 2014, the company became the first Indian power TPDDL AMI Deployment: In 2003, TPDDL made utility to launch an Automated Demand Response its first 10-year technology roadmap. Various (ADR) Project with smart meters in the capital. technologies such as SCADA, GIS, Distribution This Rs. 12.5 crore (approximately $ 2.2 million in Management System (DMS), Distribution 2014) pilot project was implemented in partnership Automation (DA) and SAP components including with IBM, Honeywell, and Landis+Gyr and with the Outage Management System (OMS) were participation of select industrial and commercial implemented in the following years. consumers of TPDDL. It is one of the first projects in the world where ADR and AMI were conceptualized In year 2003, TPDDL developed and implemented together. its in-house AMR system with MDM and MDAS for 75,000 consumers having a connected load of 10 kW Subsequent to ADR implementation, TPDDL and above. Analytics on AMR data has helped in has planned to implement smart meters for all Table 26: AMI Implementation Details – TPDDL Meters ™™ AMI: 75,000 ™™ Meter vendors: Landis+Gyr, Secure, ABB, L & T DCU ™™ Vendor: Landis+Gyr Communications Network ™™ Optical Fiber Cable (OFC), Optical Ground Wire (OPGW), RF mesh & cellular Technology MDAS/HES ™™ Vendor: Landis+Gyr MDMS ™™ Vendor: E-Meter/Siemens Customer Information System/ ™™ Vendor: SAP Billing System Resources and Change ™™ A team of 10 analysts and 5 data-handling executives, all of whom have Management undergone appropriate training, has been deployed. ™™ A separate team was developed for handling non-communicating meters in the field by manually reading the meter, then identifying and rectifying the problem. Procurement Model ™™ MDM: Procurement of MDM through tendering process. Awarded to Siemens (e-Meter). ™™ RF Mesh and HES procured through tendering process. Awarded to Landis+Gyr. ™™ Meters are procured from authentic vendors and integrated into the TPDDL system. ™™ Multiple meter vendors help TPDDL to gain a competitive advantage. Potential Lessons for South Asia ™™ Remote metering along with data analytics has helped TPDDL in reduction of AT&C losses. ™™ Reduction in cost of manual meter reading and its associated malpractices by the meter readers.    CHAPTER 4: Implementation Experience by Utilities  67 consumers, in a phase wise manner. In current phase Smart Grid Project at CESC Mysore: The project is covering 2,50,000 consumers; 90,000 smart meters implemented through a public private partnership have already been installed using RF mesh and optical model with 50 percent of funding coming from India’s fiber communication. Project components include Ministry of Power, 23.84 percent from CESC Mysore, smart meters, RF mesh and optical fiber based and the remainder from system integrator Enzen communication, a MDMS, and integration with other Global Solutions Private Limited. A brief summary of previously existing operational technology and IT the project is as follows: systems like OMS and SAP. ™™ Area – V V Mohalla, Mysore Tata Power Delhi Distribution Limited was hailed ™™ Consumers – 21,824 for its initiatives in smart grid technologies at the ™™ 20,916 smart meters, 617 Data Collection Units International Conference and Exhibition on Smart (DCUs), 445 Transformer Monitoring Units Grids and Smart Cities organized by the India Smart (TMUs), 44 Fault Passage Indicators (FPIs), 134 Grid Forum (ISGF) in March 2015. High-Tension (HT) modems, and five Remote Terminal Units (RTUs) installed 4.3.13 National Smart Grid Mission ™™ 19,369 smart meters and 110 modems (CESC Mysore) communicating The National Smart Grid Mission (NSGM) was ™™ Functionalities – AMI, OMS, Peak Load established by the government of India in January Management (PLM), Microgrid/Distributed 2016 to accelerate smart grid deployment in India. Generation (MG/DG) The NSGM plans and monitors implementation of ™™ Evaluated project cost: INR 325.6 million policies and programs for promoting smart grid systems in the country. Table 27 summarizes the key ™™ The key benefits realized through this project are pilots undertaken by NSGM. provided in Table 28. Table 27: Pilot Projects – NSGM Utility No. of consumers Total No. of meters installed CESC, Mysore 21,824 20,916 UHBVN, Haryana 10,030 10,030 HPSEB, Himachal Pradesh 1,335 1,335 APDCL, Assam 15,083 13,691 WBSEDCL, West Bengal 5,275 3,093 TSECL, Tripura 45,029 16,655 PED, Puducherry 34,000 15,316 UGVCL, Gujarat 23,760 11,200 IIT-K Smart City Pilot 28 28 68  Survey of International Experience in Advanced Metering Infrastructure and its Implementation   Table 28: AMI Implementation Benefits Realized in CESC, Mysore Area Benefits Revenue Maximization ™™ Sanctioned load violation real time notification (AMI/Analytics) ™™ PF violation monitoring ™™ AT&C loss calculation in real time ™™ Abnormal consumption analysis ™™ Time-of-day (TOD) analysis for pricing Asset Management ™™ Distribution transformer (DTR) loading analysis for better asset allocation (TMS/Analytics) ™™ DTR condition monitoring to extend life and reduce operational expenditure (OPEX) ™™ Load unbalance analysis across the three phases to balance load across phases ™™ Saving of Rs. 135,000 per year by replacing under-loaded DTR ™™ Saving of Rs. 200,000 by rectification of oil level at transformer Operational ™™ Meter connect/disconnect through data center Advantages ™™ Notifications to consumers: outage, maintenance activity, etc. (AMI/OMS/SCADA ™™ Automated reading Integration) ™™ GIS dashboards ™™ Tariff -ToD setting, message display through AMI infrastructure ™™ Annual saving of Rs. 1,200,000 by remote connect/disconnect facility ™™ Annual saving of Rs. 1,400,000 by AMI Peak Load ™™ Effective consumer participation through Demand Response (DR) programs Management ™™ Load curtailment without load shedding (AMI/PLM/DR/Load ™™ Shifting/reducing peak load with consumption area analysis Forecasting/Portal) ™™ Reducing power purchase cost through supply demand gap analysis    CHAPTER 4: Implementation Experience by Utilities  69 CHAPTER 5 Procurement Procurement by North American Investor- used these products to deploy and integrate the use Owned Utilities (IOUs) has typically favored cases to their specific circumstances. In turn, these capital expenditure on licensable products rather product-centered solutions have allowed successful than cloud-based providers and solutions. The implementations to be replicated. procurement of cloud-based or - hosted AMI head- Procurement by U.S. middle-market, (smaller) end or Meter Data Acquisition Systems (MDASs), municipal and cooperative utilities tends to favor Meter Data Management Systems (MDMSs), or Operational Expenditure (OPEX) over Capital Consumer Information System (CIS) solutions is Expenditure (CAPEX), though the individual spend governed by local Critical Infrastructure Protection can be quite small. Using organizations such as (CIP) regulations that identify specific mitigation NRECA,8 the cooperative utilities pool their needs requirements for physical and cyber security. As a and tender jointly to gain volume advantages. The result, the solutions that are implemented tend to be need to look for localized service results in greater on-premise or in a utility’s data center. localized content in these procurement approaches. However, the advent of lower-cost cloud/hosted In the European Union (EU), there is a tendency solutions is causing utilities to look to expand their to procure AMI products and solutions locally. The use. North American utilities, which tend to use a best- reasons for this include the desire to pass the benefits in-class approach, typically look for a best-fit product of these large programs to local manufacturers, for each tier of a solution – a product that is cost- to negotiate better pricing, and to ensure local optimized and meets their end needs. This approach data privacy needs are met. The utilities in the EU leads to solution stacks that involve many product and tend to favor fully integrated solutions with fewer services vendors as well as product customizations. vendors; this ensures a high degree of confidence As the market for AMI has matured and use cases in a successful, on-time implementation of smart and technology deployments have stabilized, start- metering. However, this approach can sometimes ups and product companies have begun to make lead to custom solutions that cannot be replicated products that allow utilities to address their specific elsewhere. Moreover, the fully integrated solutions use cases. And as the products have matured, the 8 The National Rural Electric Cooperative Association (NRECA) provides utilities that have followed the early adopters have technical and testing support to cooperative utilities.    CHAPTER 5: Procurement  71 Box 2: EESL’s Smart-Meter Procurement Approach Energy Efficiency Services Limited (EESL) is an Energy Service Company (ESCO) formed under India’s Ministry of Power to facilitate energy efficiency projects. Its smart-meter procurement approach is as follows: � AMI project implementation follows the Build-Own-Operate-Transfer (BOOT) model. � EESL offers to invest capital up front, so zero investment is required from distribution utilities. � EESL recovers actual costs – along with nominal Return on Equity (ROE) and project management costs – through monthly payments from the distribution utility on a per-consumer basis. � AMI implementation is expected to generate additional revenue for distribution utilities through improved billing efficiency, reduced meter-reading cost and enhanced operational efficiency. � IT infrastructure is based on the Cloud for fast deployment, reduction in Capital Expenditure (CAPEX), and rapid scalability. � Separate tenders for selecting meter suppliers and system integrators to ensure competitive prices and to utilize relevant subject matter expertise. � Multiple meter suppliers have been selected to speed up deliveries, reduce vendor lock-in and improve interoperability. often come with custom integrations that reduce (which were based on cost recovery) favored a interoperability (interoperability is discussed in CAPEX approach. However, their procurement Section 5.6). models varied significantly based on the time of Among the utilities included in this study, the initial deployment, volume, and type of technology, asset ownership model consistently and heavily as shown in Table 29. (See also Box 2 for the approach favored ownership by the utility, and the regulations taken by EESL in India.) Table 29: Procurement Approaches Utility Ownership Model Solutions/Packaging Cost Recovery Managed Utility- Single Integrated Best- CAPEX OPEX Service Provider Owned Vendor Solutions in-Class Approach Approach BG&E, USA √ √ √ ComEd, USA √ √ √ PECO, USA √ √ √ Consumers Energy, USA √ √ √ Oncor, USA √ √ √ SCE, USA √ √ √ Electrobras, Brazil √ √ √ AusNet, Australia √ √ √ Enel, Italy √ √ √ TPDDL, Delhi, India √ √ √ CESC, Kolkata, India √ √ √ 72  Survey of International Experience in Advanced Metering Infrastructure and its Implementation   5.1 Ownership Models ™™ There is potential to participate in bulk purchasing. Utilities approach asset ownership through one of ™™ The potential for stranded assets is high. two models: the managed service provider model and the utility-owned model. The choice is driven largely Of the two models, the utility-owned model was the by the type of regulatory environment within the more common approach among the various utilities region, but security often plays a role as well. interviewed and regions analyzed. This has been driven by the prevalent regulatory models. 5.1.1 Managed Service Provider Model Despite a recent shift toward utilities procuring AMI In the managed service provider model, the assets as a managed service, the complexities of integration are owned and operated by a service provider. The and limited cost-recovery options have meant that main attributes of such an arrangement are as most existing large deployments have taken place follows: under a utility-ownership approach. ™™ Hosted/SaaS/lease model approach ™™ Vendor manages installation, upgrade 5.2 Business Case ™™ Vendor owns performance service-level The AMI business case varies from utility to utility agreements because its value streams produce a unique set ™™ Operational cost model, with minimal capital benefits to a given utility. The cost side of the AMI costs business case includes the procurement, installation ™™ Telecommunications and security are critical and integration of the smart meters, communications equipment and data management systems as well ™™ Change management is the responsibility of the as organizational costs. Thus, the following need service provider to be included as well: software and licensing fees, installation labor, information technology testing There are several managed service providers of Field and requirements gathering, project management, Area Network (FAN) communications, AMI headend, software integration, and staff training. and backhaul communications that have deployed their offerings worldwide. Quite often, the AMI head The benefits side of the equation often includes end is provided as a hosted solution on the utility’s creation of both initial and ongoing business value. data centers. This includes the qualitative and quantitative value streams shown in Figure 30. 5.1.2 Utility-Owned Model Based on the utilities analyzed in this study, it was In the utility-owned model, the assets are owned and observed that while the Operations and Maintenance operated by the utility. This model’s main attributes (O&M) cost savings from remote billing and metering are as follows: services was a key initial benefit stream for the AMI ™™ The utility is responsible for procurement, business case, the ongoing benefits were a result of finance, implementation and upgrades. large-scale operational efficiencies that contributed significantly to the business case. This was further ™™ The utility must anticipate formal IT teams supported by the value streams associated with and processes for scheduled refreshes and revenue assurance and improved customer upgrades. satisfaction. (Further use cases are described in the    CHAPTER 5: Procurement  73 Figure 30: Qualitative and Quantitative Benefits of AMI Implementation Reduction in Faster Reduction AT&C losses response to in need to network issues visit customer Increased Accurate Increased Anticipated accuracy of voltage measure billing reduction in outage location at endpoints accuracy Operating Expenses/Cost to Serve Reduction of Increased Ability to manual meter customer support future reading self-service DR needs accompanying report, Data Analytics for Advanced known utilities. The following are characteristics of Metering Infrastructure: A Guidance Note for South such an approach: Asian Power Utilities.) ™™ One- or two-vendor environment ™™ Product and services selection important 5.3 Solutions/Packaging ™™ Utility owns standards and architecture When procuring a solution that fits their enterprise ™™ Potential lock into single vendor or a few needs, utilities develop requirements that outline the vendors architecture, features and integration required to ™™ May not support interoperability as standards realize the business case that was approved by the change regulators. The solution thus defined is packaged and released to the market, in parts or in full, for vendors The best-in-class approach in vendor selection to bid on – either individually or through partnering occurs when features, technology and application with other vendors. The proposals are then evaluated needs are not met by other approaches. Best-in- for best fit from the perspective of qualifications, class vendors offer a product or products that are schedule, budget, and scope. industry-leading, with the most advanced features While it is rare, utilities could retain a single vendor and a demonstrated investment into enhancing to provide an end-to-end solution, thus ensuring the product(s) offerings. This approach allows the that the risks related to technology, integration and utility to upgrade to new features in the future. The implementation are contractually the responsibility following are characteristics of such an approach: of the vendor. Issues to consider include the potential ™™ Multi-vendor environment downside of being “locked into” one particular vendor, ™™ Best-fit product and extended services critical which can affect interoperability as requirements grow and standards change. ™™ Utility owns standards, integration and architecture An “integrated solutions vendors” offering involves ™™ Flexibility to replace products or vendors a set of vendors jointly offering a packaged AMI solution that has previously been implemented at ™™ Better standards compliance and interoperability 74  Survey of International Experience in Advanced Metering Infrastructure and its Implementation   The utilities surveyed under this study have adopted 5.4 Cost Recovery a mix of the above approaches for addressing integration issues among various subcomponents of A variety of cost recovery models are in use across their AMI systems. Table 29 shows how the surveyed utilities and geographies. These are driven by the utilities approached procuring the core components localized regulatory models by country, state or of their AMI system which included the meters, province. The cost recovery models can be classified HES/MDAS and MDMS. into the following main groups: ™™ Regulated rate increases: The charges and the Utilities encounter interoperability and scaling rate of return for the AMI implementation are issues as they implement their AMI systems. negotiated by the DSO9 with the regulators. This Interoperability can be thought of as the ability of is the North American model. systems, or components within systems, to exchange services or information with each other, and to ™™ Market-based rate increases: The charges are operate effectively in an anticipated way without passed on to rate payers based on market significant user intervention. Thus interoperability principles and regulatory guidance on cost- issues relate to the definition and use of common benefit analysis to be performed at either the standards, protocols and Application Programming utility or DSO level. This is the EU model. Interfaces (APIs). The unique issues in AMI are ™™ Rate-of-return model: In this model, the regulators encountered because the system architecture has develop specific definitions of costs, interest rates to address standards, protocols and APIs across and other key parameters to establish a rate of multiple industry domains – telecommunications, return with an inflation adjustment. This model is utilities and software – in a coordinated manner. used in Australia. Specifically defining a scalable architecture for ™™ Cost-per-meter benchmark: The regulators assess such an integrated solution for large data volumes the nominal cost of deploying AMI in terms requires broad expertise across industries and of a “per meter” benchmark for cost recovery technologies. purposes. This was used initially in Australia but For utilities that take the best-in-class approach, is no longer in use there. The Australian Energy the ultimate burden of interoperability and scaling Regulator (AER) set out a “revised Order” that resides with them. They build or retain experts became the primary instrument to guide the to build a highly scalable architecture with a clear determination of prices for metering services. The revised Order provided for a fundamentally definition of the types and levels of interoperability different approach to establishing prices: a needed to meet the architectural specifications. cost pass-through model under which budgets They contractually bind the individual vendors for the roll-out are established up front and to meet the interoperability definition within the then annual charges are determined based architecture. SCE’s original selection of a meter data on actual expenditure. AER’s final report,10 management system did not meet the performance which included a calculation of the Weighted and scalability requirement, leading them to select the same vendor they had retained for the meters 9 The term DSO is generally used in Europe to refer to “distribution and the head-end system. Consumers Energy worked systems operator.” A DSO in the U.S. context, as noted here, is with the meter vendor to integrate cellular network the distribution side of a transmission and distribution operating company. interface cards, which required a few pilot projects 10 AER, Final Decision: Framework and approach paper – Advanced metering infrastructure review 2009-11 (Melbourne: AER, January to iron out communications issues before a full roll- 2009). See https://www.aer.gov.au/system/files/ac16909-AMI%20 out could take place. Framework%20and%20Approach%20Final%20decision.pdf.    CHAPTER 5: Procurement  75 Average Cost of Capital (WACC), outlined a ™™ Proportional or annual penalty levies: Penalties return for costs specifically related to AMI roll- are assessed if the DSO does not deploy AMI and out while establishing minimum standards for smart meter in a certain mutually agreed time performance. frame. This type of penalty is used in several EU ™™ One-time incentives with a time window: The countries, including Germany. DSO uses a one-time incentive (tax write-offs An optimal model that balances costs while ensuring or grants) to pay for the deployment of AMI. a high certainty in performance and future flexibility These tend to be used in conjunction with other is critical in the development of a business case by models to improve the business case and as a a utility. Table 30 gives examples of cost recovery stand-alone cost recovery model. models used by utilities in various regions. Table 30: Cost Recovery Models by Region Utility, State of AMI Organization Cost Recovery Method Comments Region deployment Responsible ENEL, Italy Completed Distribution Price increases are discounted for The ENEL model represents 32-million- systems efficiency gains from increased how DSOs have approached meter operator reliability, automated controls, EU regulations and directives. deployment and organizational efficiency as Some of the Member States have required by EU’s cost-benefit enacted incentives to help turn analysis. the cost-benefit analysis positive. Oncor, Completed Transmission Involves Smart Grid Investment Unlike in other U.S. states, the Texas, USA 3.4-million- and Grant (SGIG) incentives coupled deregulation in Texas created a meter Distribution with rate increases through a robust retail electricity market. deployment (T&D) traditional regulated rate-case The justification process tends organization model based on cost-benefit to be complicated as distribution (distribution analysis. operators do not have direct operations) access to customers; in such cases, the process focuses on benefits accruing from operational improvements. Southern Completed T&D SGIG incentives coupled with Simultaneous directives for smart California 5-million- organization rate increases through traditional metering, demand response, Edison, meter (distribution regulated rate-case model based renewables and energy efficiency California, deployment operations) on Cost-benefit analysis. were enacted in 2006 by USA California Energy Commission and California Public Utility Commission. State of Completed Distribution An initial cost recovery model The powers and function of Victoria, 2.6-million- systems was established using a per- Essential Services Commission, Australia meter operator meter recovery benchmark; this Victoria (ESCV), were transferred deployment was replaced by a measure of rate to AER on January 1, 2009, of return (WACC) and minimum providing a broader framework technical standards based on for cost recovery. AER’s new model. 76  Survey of International Experience in Advanced Metering Infrastructure and its Implementation   References and Links Please note: This list shows key sources of ™™ Consumers Energy. “Electric Operation information cited in Section 4.3, “Case Studies.” Statistics.” (8,23,000 smart meters deployed.) ™™ AusNet Services Holdings Pty (AusNet). 2018. Retrieved from: https://www.consumersenergy. “Who We Are.” (7,00,000 AusNet customers.) com/company/what-we-do/electric-generation/ Retrieved from: https://www.ausnetservices.com. electric-operations-statistics au/Misc-Pages/Links/About-Us/Who-we-are ™™ District of Columbia Public Service Commission. ™™ AusNet. 2018. AusNet Services – Smart Metering “Rates and Number of Customers.” Capabilities and Benefits. (6,80,000 smart meters (PEPCO – 2,90,000 customers in Washington, installed.) PDF retrieved from: https://www. D.C.) Retrieved from: https://www.dcpsc.org/ ausnetservices.com.au/-/media/Files/AusNet/ Utility-Information/Electric/Historical-and- About-Us/Determining-Revenues/Distribution- Analytical-Information-for-Electric/Rates-and- Network/Customer-Forum/Week-2/Smart- Number-of-Customers.aspx Meter-Overview-and-Benefits.ashx ™™ Electrobras. 2018.Interview with Paulo Lucena, ™™ BG&E. 2016. “Local Utility Companies Offer Credit Electrobras program manager on 5/9/2018. Tips.” (Details regarding Itron Centron meter.) (55,000 meters installed.) WTOP News. Retrieved from: https://wtop.com/ ™™ ENEL. 2016. ENEL Press Release, June 27, 2016. (32 local/2016/07/local-utility-companies-offer- million meters in Italy.) Retrieved from: https:// credit-tips-saving-energy/ www.enel.com/media/press/d/2016/06/enel- ™™ CMS Energy. “Consumers Energy.” (Consumers presents-enel-open-meter-the-new-electronic-meter Energy provides electric service to 1.8 million ™™ Oncor Electric Delivery Company. 2017. “Tariff for customers.) Retrieved from: https://www. Retail Delivery Service.” Retrieved from: http:// cmsenergy.com/about-cms-energy/consumers- www.oncor.com/en/Documents/About%20 energy/default.aspx Oncor/Billing%20Rate%20Schedules/Tariff%20 ™™ ComEd. 2018. “About Us.” (Total number of for%20Retail%20Delivery%20Service.pdf ComEd customers.) Retrieved from: https:// ™™ Oncor. 2017. “Oncor Electric Delivery [Company]: www.comed.com/AboutUs/Pages/default.aspx Future Communications Needs.” (3.5 million    References and Links  77 smart meters.) Retrieved from: https://www. ™™ Trump, A., and K. Sarver, for the Commonwealth energy.gov/sites/prod/files/gcprod/documents/ Edison Company. 2011. Advanced Metering Oncor_Comments_FutureComms.pdf Infrastructure (AMI) Evaluation Final Report. ™™ PECO.2018. “Company Information.” (1.6 Retrieved from: https://www.smartgrid.gov/ million electrical customers.) Retrieved from: files/Advanced_Metering_Infrastructure_AMI_ h t t p s : // w w w . p e co . com /Ab o u t U s / Page s / Evaluation_Final_Report_201103.pdf CompanyInformation.aspx ™™ UCA International Users Group, AMI SEC Task Force. ™™ Maykuth, Andrew. 2015. “Peco smart-meter 2008. AMI System Security Requirements V1.01. installation close to done.” (Peco: 1.6 million Retrieved from: https://www.energy.gov/sites/ smart meters deployed.) Philadelphia Business. prod/files/oeprod/DocumentsandMedia/14- Retrieved from: http://www.philly.com/philly/ AMI_System_Security_Requirements_updated. b u s i ne s s / 2 0 1 5 1 2 0 6 _ Peco _ s ma r t - me te r _ pdf installation_close_to_done.html ™™ United States Department of Commerce, ™™ SCE (Southern California Edison). 2018. “SCE – National Institute of Standards and Technology About Us.” Retrieved from: https://www.sce.com/ (NIST). 2014. NIST Framework and Roadmap for about-us Smart Grid Interoperability Standards, Release 3.0. Smart Grid and Cyber-Physical Systems Program ™™ SCE. 2016. 2018 General Rate Case: Customer Office and Energy and Environment Division, Service. (SCE – 5.1 million customers.) Retrieved Engineering Laboratory. NIST Special Publication from: http://www3.sce.com/sscc/law/dis/ 1108r3. Retrieved from: https://www.nist.gov/ dbattach5e.nsf/0/6E67536650C43C52882580 sites/default/files/documents/smartgrid/NIST- 29000AE191/$FILE/SCE03.pdf SP-1108r3.pdf ™™ SCE. 2014. SCE Smart Meter Deployment: A Case ™™ United States Department of Energy, Office of Study of Thematic Implementation. (SCE – 5.1 Electricity Delivery and Energy Reliability.2015. million smart meters.) Retrieved from: http:// (2,77,000 smart meters installed in Washington, www.academia.edu/8872228/SCE_Smart_ D.C.) Retrieved from: https://www.smartgrid. Meter_Deployment_A_Case_Study_of_ gov/files/Pepco-District-Columbia-Smart-Grid- Thematic_Implementation Project-2015.pdf ™™ SCE. 2007. Edison Smart Connect™ Deployment ™™ United States Department of Energy, Energy Funding and Cost Recovery, Volume 2: Deployment Information Agency. 2018. (Number of AMI Plan. Application 07-07, Exhibit No. SCE-2. installations by sector, 2016.) “How many smart Retrieved from: http://www3.sce.com/sscc/law/ meters are installed in the United States, and who dis/dbattach1e.nsf/0/84E5E7119E71E95088257 has them?” Retrieved from: https://www.eia.gov/ 32A00672558/%24FILE/A.07-07-XXX%2BSCE% tools/faqs/faq.php?id=108&t=3 2BAMI%2BPhase%2BIII%2BSCE-2.pdf ™™ United States Department of Energy, Office ™™ Statista. 2018. “Average number of customers of Electricity Delivery and Energy Reliability. of the leading electricity provider Enel in Italy 2016. Smart Grid Investment Grant Program from 2015 to 2017.” (Total number of ENEL Final Report. Retrieved from: customers.) Retrieved from: https://www.statista. https://www.smartgrid.gov/files/Final_SGIG_ com/statistics/794545/enel-customers-in-italy/ Report_20161220.pdf 78  Survey of International Experience in Advanced Metering Infrastructure and its Implementation   Appendix A Security Domains and Strategies As discussed in Section 3.1, although AMI technology often based on financial, business, technology, or brings many benefits for utilities in terms of schedule drivers. power distribution and customer engagement, it also introduces substantial IT and process risk. Regardless of the specific AMI solution design, Securely enabling systems, monitoring operations, however, utilities can follow a similar process to and responding to threats associated with AMI manage AMI security risks. Defining those risks, technology can be a daunting task. and then structuring appropriate safeguards that are secure, vigilant, and resilient, should yield a Planning a balanced approach that appropriately comprehensive, robust strategy for cyber security. matches investment in safeguards with the risk Table A-1 breaks down each of these three concepts, profile of the various components of the AMI system or “domains,” by capability, then suggests various can help maximize the ROI for cyber-risk protection. safeguards utilities can employ as part of their Utilities have used a variety of approaches to do this, security strategies. Table A-1: Developing a Cyber Security Strategy for Utilities Deploying AMI Domain Capability Security Strategy Secure Access ™™ Enable access-control mechanisms that cryptographically verify the identity and Control enforce the authorization of both machines and system operators/support personnel. In both cases, establish trust at the lowest possible level of the communication chain. ™™ Where appropriate, deploy multi-factor authentication or mutual authentication. ™™ Require applications to integrate with centralized identity stores for all service and user accounts. ™™ Require purchased and developed applications to follow secure development methodologies which structure application sub-processes to execute with the least amount of privileges necessary to complete the defined function. ™™ Broadly restrict user access to source code, AMI systems, and data using the principle of least privilege.    Appendix A: Security Domains and Strategies  79 Domain Capability Security Strategy ™™ Establish domain separation across business and operational system environments; limit trust to protect operational assets. ™™ Deploy privileged access management tools and processes to protect and restrict use of accounts with elevated access privileges. Secure ™™ Establish logical segmentation between enterprise systems, restricting traffic flow Architecture policy to only the defined services as necessary. ™™ Require session termination and proxying to broker all connections to higher-risk systems and/or security zones. Break cryptographic sessions to facilitate threat inspection. ™™ Utilize cryptographic mechanisms for data in motion between enterprise systems and data at rest where appropriate. ™™ Establish centrally managed cryptographic trust throughout the AMI system, with the ability to manage the life cycle of cryptographic keys. ™™ Establish log data aggregation infrastructure that is sized appropriately for the scale of the AMI system. Require appropriate logging to be streamed and parsed as needed across all AMI system components. System ™™ Follow secure hardening configuration guidelines for all infrastructure, applications, Hardening and workstations. ™™ Require all AMI system components to be assessed via vulnerability management platforms, and remediate any medium- or high-risk findings as appropriate. ™™ Facilitate penetration testing for all critical or web-facing system components, remediating any findings as appropriate. Third-Party ™™ Establish secure delivery mechanisms and handling procedures for AMI system Risk executables, source code, and associated configuration documentation. ™™ Require third-party vendors to cryptographically sign all AMI system components and sub-components. Establish processes to validate signatures of all components through the software delivery process. ™™ Invoke source code escrow services as appropriate for third-party vendors providing important AMI system components. ™™ Independently assess the cyber security of third-party vendor organizations and require vendors to address any findings as appropriate. Physical ™™ Require remote field assets to enable physical tamper alarms. Security ™™ Stream log events in real time to Security Operations Centers (SOCs). Vigilant Threat ™™ Subscribe to industry-recognized threat intelligence feeds. Intelligence/ ™™ Disseminate threat intelligence to security personnel and establish processes to Information proactively harden technology platforms, tailor monitoring capabilities, and update Sharing incident response playbooks as necessary. ™™ Incorporate threat intelligence feeds directly into security platforms to automate the digestion of new threat signatures and attack patterns. ™™ Participate in industry threat information-sharing groups to identify potential targeted industry attacks and support broader threat awareness in the industry. 80  Survey of International Experience in Advanced Metering Infrastructure and its Implementation   Domain Capability Security Strategy Threat ™™ Develop tailored use cases and indicators of compromise across AMI system Monitoring/ components. Develop automated alerting capabilities to detect potential advanced Anomalous threats against the AMI system. Detection ™™ Continually evaluate alerts and refine correlation logic to reduce false positives. ™™ Establish baseline network flows and application process functions across the AMI system – then establish alerts based on standard deviation variances from normal behaviors. Resilient Incident ™™ Establish and communicate defined roles and responsibilities for responding to Response incidents. ™™ Develop and regularly review a robust incident-response playbook. ™™ Adopt as appropriate cyber forensic tools to support incidence response. Establish retainers or support partnerships as needed. ™™ Establish malware analysis environments to support incident-response processes as appropriate.    Appendix A: Security Domains and Strategies  81 Appendix B Glossary and Abbreviations Term Definition Alerts and ™™ Outage notification: Smart meters can transmit to utilities real-time outage alerts (the so-called notifications “last gasp”). Sometime this notifies utilities about outages sooner than customers can call in — a considerable benefit to both utilities and customers. ™™ Closer monitoring of high-priority energy uses: With the right kind of back-end software, smart meters can specify certain meters as “bellwether” meters. Typically, these are installed at high- priority sites such as hospitals, fire stations, and traffic signals. The software sends outage alerts from these locations to the utility’s outage management system for priority restoration. ™™ Is the power back on?: Smart meters can verify whether power has been restored to all meters. Storms often cause “nested” outages in which there may be two breaks in the power lines to an area: one below (or “nested” within) the other. A utility may fix the break closer to the substation, but not even know about the second. Smart meter software can “ping” all meters on the circuit to verify restoration – and also notify the utility if some of the smart meters are still out of power. ™™ Communicating with customers: Utilities can use smart meter data to help keep the public informed. In the U.S. state of Florida, for instance, the Jacksonville Electric Authority uses Google Maps to show consumers whether power is on at schools after a storm. ADR Automated Demand Response (TPDDL project) AES Advanced Encryption Standard AMI Advanced Metering Infrastructure (AMI) is a metering system that records customer consumption hourly (or more frequently) and provides for daily (or more frequent) transmittal of measurements over a communication network to a central collection point. It enables two-way communication between utilities and customers. AMR Automatic Meter Reading (AMR) is a one-way communication system where data on aggregated usage (in kWh), and in some cases demand, is retrieved via an automatic means such as a drive-by vehicle or walk-by handheld system. API Application programming interface 82  Survey of International Experience in Advanced Metering Infrastructure and its Implementation   Term Definition ARRA The American Recovery and Reinvestment Act of 2009 (United States) AT&C losses Aggregate technical and commercial losses Audit trail A security-relevant chronological record, set of records, and/or destination and source of records logging documenting the sequence of events that have affected a specific operation, procedure, or event. Bi-directional Depending on which solar incentive programs are available, a utility may either add a second support for solar meter or upgrade a current meter to one of the three main types of “solar meter”: a net meter, energy a bi-directional meter, or a dual meter. Billing system The primary new capability driving AMI investments is the ability to generate automated, timely, support and accurate bills – regardless of weather conditions or property access limitations, which traditionally hamper collection of meter information. Once properly configured, AMI and billing systems automatically generate bills that are more consistent and accurate, with fewer recording errors and customer complaints. BOOT Build-own-operate-transfer BPL Broadband over power line BQCs Billing quality checks CAPEX Capital expenditure CBA Cost-benefit analysis CEDAR Chronological Energy and Demand Activity Repository Cellular 3G 3G, short for “third generation”, is the third generation of wireless mobile telecommunications technology. The successor to 2G and 2.5G GPRS networks, it supplies faster internet speeds. 3G is based on a set of standards used for mobile devices and networks that comply with the International Mobile Telecommunications 2000 (IMT-2000) specifications promulgated by the International Telecommunication Union (ITU). Cellular 4G/LTE 4G is the fourth generation of broadband cellular network technology, succeeding 3G. A 4G system must provide capabilities defined by the ITU in its IMT Advanced requirements. Potential and current applications include amended mobile web access, IP telephony, gaming services, high-definition mobile TV, video conferencing, and 3D television. Cellular 5G Fifth-generation (5G) wireless systems are improved wireless network technologies intended for deployment in 2018 and later. The primary technologies include: ™™ Millimeter wave bands (26, 28, 38, and 60 GHz) offering performance as high as 20 gigabits per second (Gbit/s); ™™ Massive Multiple-Input/Multiple-Output (MIMO), 64-to-256 element antennas offering performance "up to 10 times that of current 4G networks”; and ™™ "Low-band 5G" and "mid-band 5G" using frequencies from 600 MHz to 6 GHz, especially 3.5-4.2 GHz. CIMS Customer information and management system CIS Consumer information system Configurable Meter-reading intervals that can be configured by the utility to show variation of electrical load interval over time    Appendix B: Glossary and Abbreviations  83 Term Definition CRM Customer relationship management DA Distribution automation Data analytics Applying Data Analytics (DA) to the vast amounts of useful data utilities collect allows them to (DA) uncover new customer usage patterns, better forecast demand, manage energy constraints more effectively, improve compliance with regulatory requests, prevent fraud and reduce loss, and enhance customer service. The ability to measure and analyze data about electricity distribution and consumption in near-real time can unearth previously unavailable information on customers’ consumption patterns, preferences, and decisions. With this information, utilities can better segment their customers on the basis of their decisions to conserve or consume electricity. Primary and secondary consumer research through interactive tools and surveys can supplement raw consumption data to enable utilities to better understand their customers and, in turn, educate and motivate them to conserve power. DCU A Data Collection Unit (DCU) – sometimes referred to as a data capture or concentrator unit – is a software or hardware solution that connects a number of data channels with one destination. Data concentrators are found within substations to help manage many different data sources at one main source. DER Distributed energy resource DISCOM Distribution company (also Disco) DMS Distribution management system DSO Distribution systems operator DTR Distribution transformer EESL Energy Efficiency Services Limited (India) EISA Energy Independence and Security Act of 2007 (United States) ERP Enterprise resource planning ESCO Energy service company ETL tool Extract transform and load tool FAN Field area network – sometimes referred to as a Neighborhood Area Network (NAN) or Local Area Network (LAN) FLISR Fault Location, Isolation, and Service Restoration (distribution automation application) GHG Greenhouse gas GHz Gigahertz GIS A Geographical Information System (GIS) is a system designed to capture, store, manipulate, analyze, manage, and present all types of geographical data. It will define and maintain more accurate, complete network models and be an integral part of new Outage Management Systems (OMSs) and Advanced Distribution Management Systems (ADMSs). GIS will provide the geographical organizational aspects of Business Intelligence (BI) and Data Analytics (DA) capabilities. GPRS General Packet Radio Services (GPRS) are a packet-oriented mobile data standard for the 2G and 3G cellular communication network's global system for mobile communications (GSM). 84  Survey of International Experience in Advanced Metering Infrastructure and its Implementation   Term Definition GW Gigawatt HAN The Home Area Network (HAN) is sometimes referred to as the Premise-Area Network (PAN) or Building-Area Network (BAN). HDFS Hadoop Distributed File System HES A Head-End System (HES) refers to hardware or software that receives the stream of meter data brought back to the utility through the AMI. Head-end systems may perform a limited amount of data validation before either making the data available for other systems to request or pushing the data out to other systems. IoT Internet of Things IOU Investor-owned utility IPv4, IPv6 Internet Protocol version 4 and version 6 IT Information technology ITU International Telecommunication Union JDBC Java Database Connectivity kHz kilohertz kV kilovolts Last-gasp and Functions that send notifications when a meter endpoint loses connection (last gasp) and returns first-breath to the network (first breath). LAN Local area network LDAP/AD Light weight directory access protocol/active directory Load frequency Intervals showing variation of electrical load versus time profile Load profile A graph of the variation in the electrical load versus time Local data The collection of data over a period of time within a smart meter logging LV Low-voltage MBC Metering, billing and collection MDAS and The three key steps in using metering data most effectively are acquisition, management and MDMS analytics. For this a utility will use a Meter Data Acquisition System (MDAS), a Meter Data Management System (MDMS) and meter data analytics. They have a number of overlapping areas and it is perhaps best to think of them as part of an overall meter data acquisition and analytics system. MDI Maximum demand indicator MDMS See under “MDAS and MDMS” Meter memory Built-in component that logs and stores data, dependent on battery or not Meter time Current state-of-the-art synchronization of clocks across a network down to 1 µs. Useful for synchronization system-wide monitoring, control, and safety.    Appendix B: Glossary and Abbreviations  85 Term Definition MHz Megahertz MIS Management information system Monitoring The basic elements of a smart meter monitoring program include the smart meters, a means of program communication, a power quality data warehouse, and a data mining/reporting tool. The means of communication could include fixed telephone lines, mobile phones, power line carrier, radio, fiber optic, or a combination of these. MPE Maximum permissible exposure MRD Meter reading device NIC A Network Interface Controller (NIC) – also known as a network interface card, network adapter, LAN adapter, or physical network interface – is a computer hardware component that connects a computer to a computer network. NOC Network operations center O&M Operations and maintenance Observed failure The frequency with which a smart meter or smart-meter component fails rate OEM Original equipment manufacturer OGC The Open Geospatial Consortium (OGC) is an international not-for-profit organization that develops publicly available interface standards for the global geospatial community. OMS An Outage Management System (OMS) is a computer system used by operators of electric distribution systems when restoring power. OPEX Operational expenditure OT Operational technology OTA/remote Over-the-Air (OTA) patch management is done by pushing system upgrades over the network. firmware upgrade Pinging Requesting meter data outside specified time interval and checking device status PLC Power Line Communication (PLC) is a communication technology that allows data to be sent over existing power cables. It is also known as power-line carrier, Power-Line Digital Subscriber Line (PDSL), mains communication, power-line telecommunications, or Power-Line Networking (PLN). PMO Project management office Polyphase meter See under “Single-phase, three-phase, polyphase meter” below Power factor Monitoring how efficiently electrical power is consumed monitoring Power quality Monitoring the quality of power being delivered monitoring Rate case A rate case is the formal process public utilities must use to set the rate at which they are allowed to charge consumers for their service. Rate cases are an important instrument of government regulation of such industries. 86  Survey of International Experience in Advanced Metering Infrastructure and its Implementation   Term Definition RDBMS Relational database management system Remote Remote disabling of a meter disconnect Remote firmware The ability to update the smart meter firmware over the communications network upgrade Remote reading Receiving data outside specified time interval and checking device status Replacement Lifecycle management, servicing and replacements vary meter to meter. Different components cycle can malfunction at any given time. Meter upgrades are usually rolled out in batches. RF mesh A communications network made up of Radio Frequency (RF) nodes. A mesh refers to a rich (i.e., dense) interconnection among smart meters. RFI Request for information RFP Request for proposals ROI Return on investment RQC Reading quality checks SaaS Software as a service SAP BO SAP Business Object SAP BW SAP Business Warehouse SCADA Supervisory Control And Data Acquisition SGIG Smart Grid Investment Grant (United States) SI System integrator Single-phase, Single-Phase systems are used for residential applications, whereas Three-Phase systems are used three-phase, for commercial and industrial applications. Single-phase is sufficient to handle lower-voltage items, polyphase meter and three-phase is used for higher-voltage items typically used in commercial appliances. Polyphase systems have three or more energized electrical conductors. Three-phase is a type of polyphase system. In a three-phase system, three circuit conductors carry three alternating currents. SLA Service-level agreement (for meter performance, network performance, or vendor support) Smart city A smart city is a designation given to a city that incorporates information and communication technologies (such as AMI) to enhance the quality and performance of urban services such as energy supply. Smart meter A smart meter is an electronic device that records consumption of electric energy and communicates the information to the electricity supplier for monitoring and billing. It enables two- way communication between the meter and the central system. SOA Service-Oriented Architecture (SOA) is a type of software design wherein services are provided to the other components by application components, through a communication protocol over a network. SOC Security operations center SONET Synchronous optical networking    Appendix B: Glossary and Abbreviations  87 Term Definition SQL Structured Query Language SSH Secure Socket Shell, also known as secure shell, is a network protocol that gives users, particularly system administrators, a secure way to access a computer over an unsecured network. Sub-metering Saving potentials of 15-30% on energy and costs make sub-metering the most efficient measure to save energy in buildings – by installing zone meters in different locations of a large commercial/ industrial facility. T&D Transmission and distribution Theft and The emergence of smart meters has created additional opportunities for theft, but has also tamper alerts enabled a broader set of sophisticated tamper-detection mechanisms. Specialized energy- metering System-on-Chip (SoC) devices such as the Analog Devices ADE7763, Maxim Integrated 71M654xT, and STMicroelectronics STPM01/10 integrate energy measurement and metrology functionality with additional capabilities on a single chip. Time-based A pricing strategy in which the utility sets flexible prices for usage based on the current market pricing demand. TOD/TOU billing The Time-of-Day (TOD) rate charges a premium for electricity used during periods of high demand on the electrical system, and offers a discount rate during off-peak hours. Time of Use (TOU) refers to the segregation of energy rates based on the time in which the energy is being consumed. TOU is a way in which utility providers attempt to alleviate demand during peak periods by enforcing a tariff structure that charges an increased rate within the typical peak consumption time periods. VEE Validation, editing and estimation VRE Variable renewable energy WACC Weighted average cost of capital WAN The Wide Area Network (WAN) is often referred to as the backhaul Weather Ensuring that a component can withstand exposure to weather without damage or loss of proofing function. WiMAX Worldwide Interoperability for Microwave Access (family of wireless communication standards) 88  Survey of International Experience in Advanced Metering Infrastructure and its Implementation