Big Data Applications and Privacy Issues in Customer Service, Distribution Planning, and Rate Design

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1 Big Data Applicatins and Privacy Issues in Custmer Service, Distributin Planning, and Rate Design EEI Fall Rates & Regulatry Affairs Cmmittee Meeting Pricing Design & Research - SCE September 17, 2013 Regulatry Operatins Pricing Design & Research

2 Overview What is Big Data? Big Data Case Studies at SCE Regulatry Activities Surrunding Privacy Cncerns The Rad Ahead Regulatry Operatins Pricing Design & Research Page 1

3 What is meant by Big Data? Use increased time and gegraphical granularity f: Interval data Custmer interactins Develp infrmatin by cmbining custmer billing data (usage, lcatin, rate, etc.) with ther data files which include: Transmissin and Distributin equipment data Incme and ther husehld characteristics Appliance hldings Weather data Leverage increasing cmputing pwer fr analysis Gain insights and predictive capability fr decisin making Regulatry Operatins Pricing Design & Research Page 2

4 Advanced Metering Status FERC 2012 Assessment f Demand Respnse and Advanced Metering: 2010 Advanced Meters 2012 Advanced Meters Advanced Meter Increase Advanced Metering Penetratin Entity Name NERC Regin State Suthern Califrnia Edisn WECC CA 147,645 3,740,640 3,592, % Flrida Pwer & Light Cmpany FRCC FL 202,510 2,675,479 2,472, % Pacific Gas and Electric Cmpany WECC CA 2,085,712 4,508,036 2,422, % Oncr Electric Delivery Cmpany TRE TX 662,774 2,664,462 2,001, % Puget Sund Energy, Inc. WECC WA 7,432 1,900,306 1,892, % Institute fr Electric Efficiency: 45M electric smart meters by July-2013, rughly 40% f all meters Currently, SCE has deplyed abut 5M advanced meters and 90% f them have at least 12 mnths f interval data Custmer accessibility f Advanced Metering data 2.2M SCE custmers currently enrlled in My Accunt : 2M residential, 200K nn-residential Regulatry Operatins Pricing Design & Research Page 3

5 Case Study at SCE Impact f Electric Vehicles n Distributin System EV acquisitin and wnership data frm third parties Interval data frm smart meters f EV s wners EV prfiles determined either thrugh direct measurement r estimated frm lad prfile differencing f lads befre and after EV acquisitin EV prfile and gegraphical saturatin will enable estimatin f impact n transfrmers and distributin circuits Regulatry Operatins Pricing Design & Research Page 4

6 Case Study at SCE Impact f Distributed Generatin n Generatin/Distributin Systems Distributin circuit interval lad data Slar custmer gegraphical distributin and prductin data Cmparisn with system and circuit peaks gives insight n whether slar prductin will result in avided csts Regulatry Operatins Pricing Design & Research Page 5

7 Case Study at SCE Plicy Cnsideratins cncerning Slar Subsidies Incme data Gegraphical lcatin f NEM/slar custmers Assess desirability f subsidizing rich custmers Regulatry Operatins Pricing Design & Research Page 6

8 Case Study at SCE Alternative Residential Rate Assessments Custmer interval lad data TOU and demand rate structures Other Billing file data - demgraphics Incme data Integratin f data allws: Cnstructin f alternate residential rate designs with bill impacts by baseline znes and incme ranges Supprt targeted audits f lw-incme qualifying prgrams Examine crrelatins between usage and incme Regulatry Operatins Pricing Design & Research Page 7

9 Case Study at SCE Custmer Service Activities On-line Rate Cmparisn Analysis Tl (ORCAT) TOU rate marketing Cllectin f un-paid Clsing Bills (aka skip-tracing ) In the 1990 s, SCE purchased a subset f ne f the three majr credit bureau s entire CA file $50K. Data included custmer name, scial security number, current address, and last 3 knwn addresses. Crss referenced with bad debt file Reduced bad debt by ver $1M thrugh transferred clsing bills int active accunts call lgs crss reference Effectiveness f Market Research Identify high cst custmers Regulatry Operatins Pricing Design & Research Page 8

10 Privacy Issues: Public Cncerns Public has increasing awareness that many activities are tracked and resulting data is traded Purchases and financial transactins (e.g. grcery club cards) TV viewing and nline activities ( Smart DVRs) Daily physical mvements with GPS ( Smart phnes) Similarly, energy usage data cllected by smart meters may disclse: Custmer's presence in r absence frm the hme Daily patterns f activities Hydrpnic Facilities Health issues Regulatry Operatins Pricing Design & Research Page 9

11 Privacy Issues: Recent Activities Cncerns abut privacy have been amplified after recent disclsures f secret mnitring by the Federal gvernment The real rules are a wrk in prgress. Regulatry Operatins Pricing Design & Research Page 10

12 Privacy Issues: Electric Utilities in Califrnia Privacy issues are nt new sme rules develped ut f market restructuring As early as 1997, P.U. Cde Sec (a) stated: Custmer infrmatin shall be cnfidential unless custmer cnsents in writing 15/15 rule D Utilities may prvide aggregated data: > 15 custmers any single custmer s lad <15 % f categry Regulatry Operatins Pricing Design & Research Page 11

13 Smart Grid Privacy Rulings in Califrnia after Deplyment f Smart Meters 9/29/2010 CA Senate Bill (SB) 1476 Prhibits disclsure f custmer s usage infrmatin t third parties Requires utilities t have a prgram in place t prtect infrmatin 7/29/2011 CPUC Decisin D Mdeled after the Fair Infrmatin Practice Principles N access t custmer energy usage data withut custmer cnsent Upn cnsent, infrm custmers f effects f sharing their data with nn-utility entities Hwever, n requirement t mnitr the privacy plicies f nn-utility cmpanies SCE s Implementatin: Prpsed Rule 25 includes elements assciated with: Definitins that identify which parties are cvered and authrized t btain infrmatin and what infrmatin is cvered Nticing - prvides ntice f accessing, cllecting, string, using and disclsing energy usage infrmatin t custmers upn initiatin f new accunt as well as annually t all custmers. Custmer Access and Inquiries: including disclsure t 3rd parties Use and Disclsure Limitatins: includes a prvisin n aggregated data; describes terms and cnditins fr disclsures t gvernment rganizatins upn custmer cnsent Data Security: specifies when SCE is required t ntify the Cmmissin f a privacy breach Data Quality and Integrity Accuntability and Auditing: describes requirements pertaining t privacy ntices, custmer cmplaint prcedures, emplyee training, audits f data privacy and security practices, annual reprting, and limitatin f liability. Regulatry Operatins Pricing Design & Research Page 12

14 Privacy Issues: Recent Activities Open prceeding: Applicatin A March 5, 2012 SCE s prpsal t enable autmated access f custmer usage data t authrized third parties and apprval f cst recvery mechanism Issues include: Cst f prgram implementatin, and cnsequent recvery Pricing including Cmmunity Chice Aggregatrs and Electric Service Prviders Timing synchrnizatin f prceeding schedule amng utilities Crdinatin with ther Prceedings and/r Precedent Third Parties plicies applicable t third parties receiving the data and privacy safeguards Regulatry Operatins Pricing Design & Research Page 13

15 Privacy Issues: Recent Activities Prpsal by CPUC Energy Divisin f an Energy Data Center (September-2012) Facilitate transfer f aggregated and annymus custmer data t rganizatins fr research purpse with Nn Disclsure Agreement Prvide and publish independent analyses and results in a frm that prtects privacy Current legislative activities Prpsed CA Assembly Bill (AB) 1274: Privacy f custmer electrical r natural gas usage data Authrizes a custmer t bring a civil actin fr actual damages nt t exceed $500 fr each willful vilatin f these prvisins Regulatry Operatins Pricing Design & Research Page 14

16 Big Data The Rad Ahead Many mre pprtunities by utilities t use their wn data Better utage management Better frecasts f lads and pwer requirements with grwth f NEM/EVs/etc. Mre fcused marketing f energy efficiency and rate prgrams Hwever, sme ideas may be mre difficult t realize Revenue prtectin Energy Theft Scanning fr EV acquisitin Retail and finance sectrs are ahead in Big Data analysis due t differences in the prfit structure f ur relative business mdels Are we prepared? Oracle survey: nly 17% f utilities say they are "fully prepared" fr the nslaught f high-vlume smart-meter data 62% f surveyed senir level executives said their firms have big data skills gaps Mre data mre (meaningful) infrmatin Mre data = mre pssibilities t answer gd questins Regulatry Operatins Pricing Design & Research Page 15

17 Questins? Regulatry Operatins Pricing Design & Research Page 16

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