18
An essential part of SCE’s AMI program implementation is to establish tariffs and
19
programs to enable customers to benefit from full advanced meter deployment. SCE’s business
20
case places a high priority on providing the means for customers to limit their electrical
consumption during high-cost, on-peak periods and to take full advantage of lower off-peak
1
pricing and direct load control incentives. This results not only in reduced customer energy
2
costs, but also accounts for a major element of SCE’s long-term cost reductions associated with
3
energy and capacity cost savings.
4
The Use Case process conducted in Phase I identifies the potential for new pre-payment
5
programs to be enabled as a result of the AMI capabilities of accessing on-demand meter reads
6
and remotely connecting and disconnecting electric services. The potential for implementing
7
prepayment programs will be explored further in Phase II, including the functional and
8
regulatory requirements prerequisite to providing prepayment services.
9
Phase II costs related to the Customer Tariffs, Programs and Services function are
10
estimated to be $1.2 million, as shown in Table IV-6.
11
Table IV-6
Customer Tariffs, Programs and Services Costs (Thousands of 2007 Nominal Dollars)
Cost Category Phase II Cost (Thousands of 2007
Nominal Dollars)
Load Control, Tariffs & Pre-payment 900
External Communication & Market Research
300
Total Customer Tariffs, Programs and Services Cost
1,200
1. Customer Tariffs, Programs And Services Objectives
12
The objectives of the Customer Tariffs, Programs and Services function are to
13
develop the appropriate tariffs and programs needed to meet SCE’s AMI demand response
14
program objectives and to validate that these programs are properly deployed to enable
15
customers to benefit from full deployment of AMI technology.
16
2. Customer Tariffs, Programs And Services Assumptions
17
Cost assumptions for the Customer Program Functions are broken-down into the
18
following five functional areas: (1) Load Control Programs; (2) Tariffs; (3) Prepayment
19
Programs; (4) External Communications; and (5) Market Research. A sixth area covered by this
function is the use of the AMI system to remotely collect and manage gas and water meter reads
1
for other utilities in SCE’s service territory. Since this is an on-going activity, no incremental
2
Phase II costs have been included for this function. The work concerning these Customer
3
Program Functions is described as follows:
4
a) Load Control Programs
5
The preliminary business case for AMI relies on load control programs for
6
significant peak load reductions and power procurement benefits. An essential part of the
7
approach to load control is a Programmable Communicating Thermostat compatible with the
8
anticipated Title 24 building code standard under development by the California Energy
9
Commission (CEC) for implementation in 2009. SCE will continue to work with the CEC and
10
other utilities on developing the PCT technology that is compatible with Title 24 and AMI. SCE
11
envisions leveraging the Title 24 PCT’s installed by customers as well as providing customers
12
PCTs (Title 24 compliant) to existing customers in lieu of air conditioning compressor switches.
13
SCE will work with thermostat vendors and other parties to accelerate the design and testing of
14
affordable PCTs. SCE will also examine potential tariff designs and system requirements to
15
enable pay-for-performance (such as by reduction event) rather than seasonal incentive
16
payments.
17
b) Tariffs
18
The preliminary business case relies on TOU and CPP rates to provide
19
significant peak load reductions. SCE proposes an AB 1X compatible default TOU rate and an
20
optional CPP-F rate for all residential customers, and a default TOU rate for C&I customers
21
below 100kW. SCE also proposes a mandatory TOU for customers above 100kW with an opt-
22
out option to CPP-F. In preparation for the final business case, SCE will examine other rate
23
structures, including a three-part TOU rate, CPP-Variable, a CPP rate with enabling technology,
24
a Peak Time Rebate and other rate structures. Part of this analysis will include rate and market
25
research building on the Statewide Pricing Pilot experience to determine customer preferences
26
and adoption.
c) Prepayment Programs 1
SCE’s AMI meter incorporates an integrated service connect/disconnect
2
switch for all residential customers. The device enables savings in field services related to the
3
over 1 million customer moves annually, and credit collections. The device, when combined
4
with on-demand meter reading capability, also enables the availability of prepayment programs.
5
Other utilities, such as Salt River Project, have pilot and small program experience with
6
prepayment programs for customers on credit deposit as well as those on fixed income. SCE has
7
conducted research in Phase I and will continue this work in Phase II to further develop and
8
refine the approach for AMI deployment. SCE will also analyze the IT and system requirements
9
for enabling various approaches to offering and executing prepayment programs.
10
d) External Communications and Customer Information
11
This is one of the six AMI functional criterion specified by the
12
Commission7 because it is an important enabler of demand response. Access to electricity usage
13
and cost information on a daily basis empowers customers to understand their costs by time of
14
day and by usage behaviors. It is generally accepted that customer information improves
15
response to demand response tariffs and programs and encourages energy conservation. AMI
16
tariffs and programs will be an important component of SCE’s customer web portal, where
17
customers will have access to information and have the ability to execute a wide range of
18
inquiries and transactions. In Phase II, SCE will work to develop the information content and
19
presentation to support the tariffs and programs proposed in the final business case for AMI.
20
e) Market Research
21
SCE anticipates conducting various market research activities including
22
surveys, literature research and user group participation that relates to the Customer tariffs and
23
programs. There are many rapidly changing issues relating to AMI among California utilities as
24
well as most major utilities across the globe. The uses and applications of AMI systems for
25
7 The six functional criterion specified by the Commission in R.02-06-001 are addressed in Section III.E of
increased customer value from new programs and services continues to grow based on
1
worldwide development. As such, SCE will continue to be an active participant, contributor and
2
major stakeholder in several AMI groups throughout Phase II to ensure we maximize the
3
infrastructure’s potential.
4
f) Gas and Water Utility Use of the AMI system
5
SCE has contacted gas and water utilities about AMI system requirements
6
to enable use of the AMI system to remotely collect and manage gas and water meter reads. Gas
7
and water utilities in SCE’s territory participated in discussions and contributed to the
8
development of this Use Case in Phase I. During Phase II SCE will continue to work with
9
interested gas and water utilities to keep them informed of its progress, including the meter and
10
communication vendor RFPs and selections. SCE will also work these utilities to identify and
11
develop potential business approaches to provide a win-win for gas and water utility use of the
12
AMI network.
13