Agenda
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• Overview o “The Grid” and EPE’s place in the Grid
• System Operations o Operating and modeling the system
• System Planning – T&D o T&D System Expansion Plan
• Metering & Metering Systems o Automated Meter Reading (AMR) System – EPE’s System o Advanced Metering Infrastructure / Advanced Metering Systems o AMI/AMS vs. AMR functionality /cost/benefits
Overview EPE – Who We Are, How We’re Connected
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• El Paso Electric (EPE) is a member of the Western Electricity Coordinating Council (WECC)
• WECC Interconnections (Dynamic) o Public Service of New Mexico (PNM) – 345 kV & 115 kV o Tri-State Generation and Transmission - 115 kV o Tucson Electric Power (TEP)- 345 kV
• Southwest Power Pool (SPP) – (Non Dynamic) o Excel Energy (SPS) – 345 kV
• EPE Native System Peak load reached 1,766 MW on June 4, 2014, a 0.91% increase over the 2013 system peak of 1750 MW.
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• Order No. 888 (1996) Requires open access to transmission facilities to address undue discrimination and to bring more efficient, lower cost power to the Nation's electricity consumers
• Order No. 890 (2007) Requires coordinated, open and transparent regional
transmission planning processes to address undue discrimination • Order No. 1000 (2011) Requires transmission planning at the regional level
to consider and evaluate possible transmission alternatives and produce a regional transmission plan requires the cost of transmission solutions chosen to meet regional transmission needs to be allocated fairly to beneficiaries
System Operations FERC Requirements
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FERC Order 890 (2007)
• EPE modified its Open Access Transmission Tariff (OATT) in 2008 to reflect the principals in Order 890: • coordination, openness, transparency, information exchange,
comparability, dispute resolution, and economic planning
• EPE holds Stakeholder meetings to: • Discuss upcoming Plans • Discuss results of Plans • Obtain input from Stakeholders
System Operations FERC Requirements
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FERC Order 1000 • FERC issued Order in 2011
• Requires EPE to participate in regional planning
• Requires a methodology for cost allocation be developed for regional projects that request and meet the standards for cost allocation
• EPE plans to amend its OATT in November 2014 to incorporate FERC Order 1000 requirements
System Operations FERC Requirements
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Cost Allocation Principals (FERC Order 1000)
• Costs allocated “roughly commensurate” with estimated benefits
• Those who do not benefit from transmission do not have to pay for it
• Benefit-to-cost thresholds must not exclude projects with significant net benefits
• Cost allocation methods and identification of beneficiaries must be transparent
• Different allocation methods could apply to different types of transmission facilities
System Operations FERC Requirements
System Operations Operational Requirements
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WECC • Largest Single Hazard • Spinning Reserve & Reserve Margin
FERC & NERC • Import & Export Constraints
o System Operating Limits o El Paso Import Capability (EPIC) / Southern New Mexico
Import Capability (SNMIC) Constraints o ACE
• Reliability
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System Planning EMS, Power Flow Modeling, Contingencies EMS Data - Electronic, Power Flow Model
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System Planning EMS, Power Flow Modeling, Contingencies
EMS Data - Electronic, Power Flow Model
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System Planning EMS, Power Flow Modeling, Contingencies EMS Data - Electronic, Power Flow Model
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System Planning EMS, Power Flow Modeling, Contingencies EMS Data - Electronic, Power Flow Model
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• Updated annually
• Complies with requirements of, and supports, FERC Orders
• Defines immediate and future system changes
o Accommodate new generation interconnections o Meet future load growth o Meet/maintain/improve operational capabilities o Meet/maintain/improve reliability requirements
System Planning EPE’s 10yr T&D System Expansion Plan
Future New Substations – Las Cruces Area
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• 2015 – Add “Organ” Substation • 2016 – Add Afton North Sub (345/115 kV) • 2016 – Add “NMSU” Sub (in Las Cruces to Salopek 115 kV line) • 2017 – Add “Verde” Sub (in Diablo to Santa Teresa 115 kV line) • 2017 – Add “Leasburg” Sub (in Hatch to Jornada 115 kV line)
• 2015 - Build Arroyo Sub to Organ Sub 115 kV line • 2016 - Build Afton to Afton North Sub 345 kV line • 2016 - Build Afton North Sub to Airport Sub 115 kV line • 2016 - Build Airport Sub to Leasburg Sub 115 kV line
Future New Transmission – Las Cruces Area
System Planning EPE’s 10yr System Expansion – T&D
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System Planning EPE’s 10yr System Expansion – T&D
Las Cruces Area Expansion Plan (Transmission & Substation)
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Sun Zia Project • Phase 3 WECC • North Central NM to Arizona via Luna (Does not Interconnect
with EPE)
• Two 500 kV AC transmission lines
Southline Project • Phase 2B WECC • Afton to Arizona • Two 345 kV AC transmission lines • Now at WECC Phase 2B
System Planning 3rd Party Interconnecting Projects
Commercial & Industrial Metering Itron Cell Meters About 500 Cell Meters presently deployed Two way communication Data includes kWh, TOU kWh (3 registers), kW Demand, kVAR, Power
factor. 30 minute interval data EPE uses MV-90 data translation system to collect and process data Improved accuracy Improved read efficiency (personnel, vehicles, etc.) Improved safety Remote data access
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Metering & Metering Systems
Metering – EPE’s C&I Metering System
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Commercial & Industrial Metering (continued) Costs
o Typical small commercial meters is about $250, including labor.
o A Current Transformer (CT) rated meter replacement is about $400, including labor.
o A “CT rated-load profile” new customer, results in about $3,500 in labor and material costs, and additional back-office labor for processing.
o Meters with Load Profile, for Rate Cases or Billing data cost between $800 and $5,000 (meter only).
Metering & Metering Systems
Metering – EPE’s C&I Metering System
Automated Meter Reading - AMR Residential
Itron – Automated Meter Reading system (AMR) AMR Deployment 85-90% complete Meters are one way radio frequency (RF) communication close
proximity reading One reading, kWh residential, per month, up to three register values
with polyphase (maximum). Costs
o Meter cost $36.5/meter, approximately $75/meter installed Benefits
o Improved accuracy o Improved read efficiency (personnel, vehicles, etc.) o Improved safety
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Metering & Metering Systems
Metering – EPE’s AMR Metering System
Metering & Metering Systems
Advanced Metering Systems
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AMI - Advanced Metering Infrastructure AMS – Advanced Metering System
AMI/AMS 3 Basic Components:
o Advanced (Smart) Meters
o Remote, on demand communications mechanism(s)
o Meter Data Management System (MDMS)
Metering & Metering Systems
AMI/AMS Smart Meters
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Public Utility Commission of Texas (PUCT) 2007
AMI/AMS Requirements: o Automated or Remote Meter Reading o Two-Way Communications o Remote Disconnection & Connection for meters o Capability to Time-Stamp Meter Data o Real-Time Access to Customer Usage Data o Means for Providing Price Signals to Customers o Interval Data – 15 Minutes or Shorter o On-Board Storage of Meter Data o Communication Capability Beyond Meter (load control) o Must Comply with Open Standards and ANSI C12.22
Metering & Metering Systems
AMI/AMS - Communications
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Radio Frequency (RF) Systems
Power Line Carrier (PLC) Systems
Broadband over Power Line (BPL) Systems
Cellnet Sensus
Elster Itron
Cannon TWACS Turtle
Current Ambient Itron/IBM
Metering & Metering Systems
AMI/AMS – Data Management
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MDMS (back office stuff) Requirements:
o Data Security
o Data Validation & Storage
o Data Communication - Customer/Web Access
o Pricing Translation/Signals
o Billing Interface
o Customer Service Interface
o Data Volume Capability
Metering & Metering Systems
AMI/AMS – Deployment Cost/Benefits
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AMI/AMS Costs
o Metering: $110/meter, $150/meter installed
o Comm., It, Interface, MDMS cost allocation per meter $100 -$200
o 390,000 meters
o Expected Cost Range Estimate
($150 + 100) /meter x 390,000 meters = $97.5 MM
($150 + 200) /meter x 390,000 meters = $136.5 MM
AMI/AMS Benefits (Cost Mitigation)
o Service Order Reductions (Disconnects & Reconnects)
o Energy Diversion (Theft) Reduction
o Outage Management
o Demand Control
o Other
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Metering & Metering Systems
AMI/AMS vs. AMR - FAQ’s
Q. How much has it cost to replace the old meters with AMR, compared to the $98 MM in costs for AMI? A. The conversion from Electro-Mechanical meters to ERT Meters started
in 2001 and EPE is now about 85%-90% converted. When complete, EPE will have invested approximately $21.8 MM, over 15 years on the conversion.
Q. Does an AMR meter do anything more than standard meters other than allow for drive-by readings? A. No, not as far as meter data is concerned. The conversion to ERT meters
has, however, improved efficiencies, accuracy, and safety.
Q. Are the AMI/AMS costs primarily meter costs, or is it more program installation costs and secondary equipment costs?
A. There are three major cost components to an AMI/AMS system: Metering, Communications, and the Meter Data Management System.
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Metering & Metering Systems
AMI/AMS vs. AMR - FAQ’s Q. If the meter costs are not that different and provide the same basic functions why not install the AMI meters even if you can’t use all features at this time? A. AMR and AMI do not cost the same and do not provide the same functionality. An AMI meter can not function as an AMR meter to provide simple one-way, drive-by, reading until the day it becomes a part of an AMI/AMS system.
Q. Why is it not cost-effective to install AMI (just because it is expensive doesn’t explain why the benefits don’t make it worthwhile)? A. At this point in the evolution of AMI/AMS system technology the cost still exceeds the benefit by a significant margin. Furthermore, the industry is starting to see customer acceptance issues around data security and privacy concerns.
Q. Has EPE decided that it will never deploy an AMI/AMS system? A. Absolutely not. EPE will continue to monitor and assess the progress in the technology, the cost, and the benefits of an AMI/AMS system.