Ontario Smart Metering System Implementation Program (SMSIP) Bill Limbrick Vice President, IT&I Independent Electricity System Operator (IESO)

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1 Ontario Smart Metering System Implementation Program (SMSIP) Bill Limbrick Vice President, IT&I Independent Electricity System Operator (IESO)

2 The Smart Metering System Implementation Program The Smart Metering Initiative (SMI) is the Government of Ontario s initiative to create a conservation culture and a toolset for demand management based upon the province wide deployment of smart meters The Smart Metering System Implementation Program (SMSIP) is the framework by which this will be brought about

3 Ontario Context Major Regulatory Developments ONTARIO Bill 100 Electricity Restructuring Act, 2004 Minister s Directive to the OEB OEB Report of the Board to the Minister Bill 21 Energy Conservation Responsibility Act, 2006 Regulations: AMI cost recovery IESO as the Program Coordinator OPA established Conservation Bureau Established IMO becomes IESO July 16, 2004 OEB directed to come up with smart meter implementation plan January 26, 2005 Initial implementation plan Cost/benefit analysis Discussion of possible time of use rate structures March 28, 2006 Contemplates the establishment of a Smart Metering Entity (SME) Drafts IESO regulation posted for public comment in July Final Regulations approved Sept. Cost recovery regulations for AMI Infrastructure

4 The IESO Role July 26, 2006: the Ministry of Energy announced the IESO as the Smart Metering System Implementation Program Coordinator This role was formalized through regulations made on September 22 This role includes: Direct responsibility for the procurement of the Meter Data Management/Repository (MDM/R) function Coordination and reporting of the various program activities between affected parties Surrogate Smart Metering Entity (SME) at go live

5 Program Responsibilities System contract management (IESO) Commercial Arrangements (Ministry) Design Authority (IESO) LDC Liaison (IESO) Program Coordination ordination (IESO) Communication (Ministry) Initial Operation (IESO SME) Product Development (OPA & IESO Line) Rate Design and Setting (OEB)

6 Efforts to Date MDM/R Focus Finalize MDM/R specification Development of RFP for turnkey MDM/R contract RFP response evaluation Negotiation of MDM/R contract December 8, 2006: IESO announces the selection of a consortium lead by IBM Canada to build the MDM/R and operate it over the course of the next 4 years Development of MDM/R Detailed Design

7 The Smart Metering System Ontario Government s Conceptual Model Smart Metering System Advanced Metering Infrastructure (AMI) Communications Device ( ) Meters Local Area Network Regional Collector Wide Area Network Control Computer Wide Area Network Monitors And Displays Customer Information & Billing Systems Retailers, Energy Service Companies Meter Data Management & Meter Data Repository Functions (MDM/R) Meter Data Management Third Parties Wide Area Network Meter Data Repository Source: Ontario Ministry of Energy

8 MDM/R Scope The Meter Data Management/Repository (MDM/R) Function The direct responsibility of the IESO to oversee its procurement and delivery Includes: Repository Functions Support for Validation, Editing and Estimation (VEE) process for all metering data Assembly of meter reads into Time of Use (TOU) and Critical Peak Pricing (CPP) rate buckets Facilitation of access to authorized parties such as Local Distribution Companies (LDCs) and retailers

9 MDM/R Structure

10 Downstream from the MDM/R TOU and CPP billing quantities from the MDM/R may reach consumers through a variety of presentment methods Roles, authorities and data access privileges for MDM/R users are a significant work task for the SMSIP Presentment Retail Bills CIS systems (LDC s and Retailers) TOU and CPP Rate Buckets IVR Systems MDM/R??? Web Access?

11 Processing timetable

12 Technical Challenges 93 Local Distribution Companies: Vastly different sizes Different business processes (billing, metering, customer maintenance, etc) Several different types of Customer Information Systems (CIS) with varying capabilities and configurations Several different types of Advanced Metering Infrastructure (AMI) technologies already employed with varying technical interfaces and capabilities Two different time zones An open access market for retailers with an existing LDC/Retailer communications network

13 Regulatory Challenges Rate Structures: The Ontario Energy Board is currently in the process of developing Time of Use (TOU) and Critical Peak Pricing (CPP) rates which can be enabled by smart metering technology Draft TOU rates are already being tested The OEB is conducting a pilot study with Hydro Ottawa to test the effectiveness of CPP and TOU rates Other: Impact of smart meters on various retail settlement rules Cost recovery of various components of the Smart Metering System

14 MDM/R Schedule January February March April SMSIP Timeline May June 2007 Joint AMI/CIS Working Group Activities AMI Working Group CIS Working Group AMI/CIS Interfaces Provisional Technical Interfaces Technical Interfaces under change control MDM/R User Manuals Commissioning MDM/R Trials Plan MDM/R Trials Test Scripts MDM/R Tools Regression Testing and golive set up

15 SMSIP First Footers Summer 2007: First five LDCs scheduled to begin registering meters with the Ontario Smart Metering System and having their data processed through the MDM/R: 1. Chatham Kent Hydro Inc. 2. Horizon Utilities Corporation 3. Hydro Ottawa Limited 4. Milton Hydro Distribution Inc. 5. Newmarket Hydro Ltd.

16 SMSIP The Task Ahead Smart Metering System Implementation Program will initially only apply to consumers that are not demand metered Includes virtually all individual residential dwellings (status of multi unit dwellings may vary) Inclusion of commercial and industrial consumers with demand meter requirements at a later phase still needs to be determined 800,000 smart meters installed by the end of 2007 Entire province converted by 2010

17 Future possibilities Potential future functionality accommodated by the current MDM/R specification: Calculate loss factors Support of sub metering Support of Distributed Generation Support of Net Metering Addition of gas, water and other electrical (i.e. volts, vars) meters

18 For Further Information Visit SMSIP website at: ieso.ca