March 30, 2004
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Transcript of March 30, 2004
PPL Electric Utilities
presentation
AMR Lessons Learned Anthony M. Osmanski
March 30, 2004
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AMR at PPL Electric Utilities
Anthony Osmanski,Technical Support Manager- AMR, PPL Electric Utilities Reports to the Director of AMR - PPL EU 30 years electric utility experience in metering operations led technical implementation led the AMR Technology investigation stages led the DCSI proof of concept tests
How significant is an AMR project to a utility?
AMR is the 3rd largest contract a utility will ever undertake, only buying a utility or building a production facility have a larger scope and impact on customers, employees and others!
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PPL Electric Utilities Service Area
Harrisburg
Williamsport
Lancaster
Scranton
Williamsport
Hazleton
Wilkes-Barre
Allentown
Bethlehem
50 0 50 100 Miles
N
EW
S
Meters per Square Mile> 225 > 75 and < 225 <75
PPL Corp. Facts
1. $5.2 billion revenue
2. $11.8 billion assets
3. 10,000 sq. mi.
4. 1.3 M electric meters
5. 6 major cities- 50% of customers
6. Diverse environment
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How was the metering automation proposal justified?
1. What’s the corporate strategy- how can automating meter reading best meet the corporate strategy
2. Four phases: plan, business case, buy, implement3 Focus on primary benefits 4. ‘Strategic Value’ perception5. Adjusting attitude on ‘Risk Management’
- does 1,000,000 x 1 = 1 x 1,000,000?
A successful business case: 1. 45% business case2. 45% ‘managing’ 3. 10% technology
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PPL Project overview
Customers: 1.3 million meters Financial - NPV, EPS, ~5 year payback Meters: single phase and 3 phase with 66% meter reuse
DCSI: all 1 and 3 phase meters except VT/PT connected meters Comverge for VT/PT connected meters
Uses: billing, call center, special reads, etc. Schedule: 36 months Data:
hourly interval data delivered every 8 hours 15-minute interval delivered every 2 hours daily consumption and demand
Roles: PPL: customer, field installation, IT integration, 3 phase meter retrofit DCSI: All residential and commercial customers, deployment,retrofits Comverge: major revenue customers
PPL’s strategy is knowledge centric100% of the customers - no 2nd class customers
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The TWACS system will provide hourly data for 1 and 3 phase meters every day and support other services.
CSS
Client Workstations
(PC)
SCADA, EMS, OMS
Others
Communications Server
DistributionSubstation
Telecommunications Link
PowerLines
Substation Control Equipment
ServiceDrop
PPL Net
Meter Retrofitted with Module
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Allentown
Oxford
PPL Electric UtilitiesPPL Gas Utilities
The Comverge system will provide 15 minute Load Profile data for 3 phase VT meters every day and support other services.
To PPL Data Center
CDMA -Verizon Wireless
MainGateTM C&I
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PPL Business Case Model
3 Major Business Case Parts• Finance: NPV, EPS, ROI …• AMR deployment plan geo-map• Risk Management Plan
Financial Model Analyzed:• 48 customer groups by OpCenter• 15 primary benefit groups• 40+ cost groups• concurrent AMR strategy review• up to 3 technologies/strategy• sensitivity to assumption changes
Benefits• reduced risk, cost and time• proven model accepted by finance• supports benefit tracking
Customer SegmentationCustomer
Segmentation
Vendor PricesVendor Prices
Utility AMR Performance Needs
Utility AMR Performance Needs
Benefit Model:Cost and Benefit
Assumptions
Benefit Model:Cost and Benefit
Assumptions
Financial Model Financial Model
Deployment Issues
Deployment Issues
Non-Vendor PricesNon-Vendor Prices
Corporate AssumptionsCorporate
Assumptions
Business Case Report Finance, Deployment,
Risk Management
Business Case Report Finance, Deployment,
Risk Management
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PPL selected a joint program committee strategy to ensure that its vendor-partners were aware of and committed to creating the benefits in a timely manner.
Co-ChairProgram Managers
NetworkDeployTeam
MeterShopTeam
ITIntegration
Team..….
Project ManagersDeployment,Change Mgmt,
Operations, Technology
ExecutiveManagement
PROGRAM MANAGERS Total program responsibility Goal setting Motivation Track program status Reporting Communication Settle major conflicts Manage budget
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PPL’s team manages 100s of program activities to ensure effective, timely deployment consistent with maximizing benefits.
Process planning Change management plan Responsibility matrix Schedule IBEW work plan FAT, SAT and CAT processes e.g. Comverge CDMA units Technology processes Deployment processes Hard to access Regulatory Training Legacy interface etc
Do not underestimate the uncertainty of change or its differing impacts on people!
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PPL’s overall deployment is going successfully.
~1.25 Million operational AMR meters as of March 1st >99% of all operational meters read every day deploying 4,000 meters per day averaging over 60 meters per exchanger deployment will be completed by Sept. 2004
Eliminated major meter reading issues hard to access meters of every type no problem reading meters in underground distribution areas works well in Network Meter settings
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PPL’s Lessons Learned
Technology Selection Match utility needs with technology infrastructure and operation Define parameters necessary for cost effective selection Don’t forget obsolescence i.e. retrofitting D2/3 or I-50 meters for example.
– Vectron vs. S4 decision at PPL
Understand the Technology Beware of market pressures to sell. Don’t be oversold by marketing hype, understand the limits of the technology Make sure the vendor understands what you are asking for before its too
late. Expect surprises. “Oh you wanted it to work THAT WAY?”
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PPL’s Lessons Learned
Information Technology (IT) Create a dedicated team early Make them a part of the decision and selection Get a jump on processes. Don’t wait until after contract signing to begin IT
process review Change Management
Manage Change Identify all the processes that will be touched. Understand and define today’s processes and how will it change with AMR Expect “Push Back” from most on Change management. “no time for this
stuff, I have an AMR System to install”
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PPL’s Lessons Learned
Sound Processes Understand your processes and eliminate confusion Confusion stops or delays efficient work Confusion creates excuses for delays Never stop work, start-up inertia is deadly in AMR Projects
Human Nature Factor Human Nature will breed negative criticism Employees promote negative rumors Kill negative comments with positive news alerts or information updates. Rumor Control is important to keeping a positive spin on AMR deployment Problems occurs with every new system, keep them under control
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PPL’s Lessons Learned
Apathy The initial work and process may go well because it has attention Be careful as you progress into the project to maintain focus Excitement wears off and apathy sets it down the road Have controls and monitor, monitor, monitor. (statistics, performance)
Do-Over factor Problems tend to be overshadowed by schedule Don’t rush to conclusions on problems or concerns Fixing the symptom rather than the cause will require do overs. And over and over and over
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PPL’s Lessons Learned
80/20 rule reaches AMR easily Problems at particular sites can overshadow the overall process Keep focused on the big picture One meter not communicating is a limited concern 10,000 meters not communicating may have a similar failure mode that
needs to be addressed. Don’t spend 80% of your time on a few concerns. Monitor the total
environment 1 million process done once is not equal to 1 process done 1 million
times over. Installing 1 million AMR meters should be the same process done right over
and over. Have a simple error free process that covers all contingencies.
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PPL’s Lessons Learned
Deployment Process Rule #1 KNOW WHERE YOUR METERS ARE AT ALL TIMES Automate the meter exchanges, handheld processors etc downloaded daily Update the population file nightly
Maintain adequate inventory Have enough meters to maintain the deployment schedule Make sure you have every type required Filling in the missed holes is costly Seasons of the year is a major factor, Bad weather slows you down but don’t forget good weather speeds things
up. Don’t run out of meters in good weather times.
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PPL’s Lessons Learned
Small Scale Start-up Do a slow start Exercise your processes Do test billing Check technology Make adjustments before proceeding PAUSE
Large Scale Shut -down Have a plan for the end of deployment Turn-over to the business- are they ready All new processes signed off and accepted Operational plans in order
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PPL’s Lessons Learned
Devil is in the Detail Ralph Amato- among others
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How does PPL’s experience match up to expectations?
Item Match UP
Business case
Implementation Plan
IT plan
Communication plan
New internal benefits - had no goal
New revenue opportunities - had no goal
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For more information: Anthony Osmanski
– PPL Electric Utilities– 484.634.3024– [email protected]
AMR
Project
Plan