SmartMeter Program

1
SmartMeter Program

• July 2007
• NARUC Summer Meeting
• Tom Bottorff, Sr. VP Regulatory Relations

2
Key Messages

• PGEs SmartMeter program leverages proven
  technologies
• PGEs SmartMeter program is cost effective
• Customers will benefit through improved service
  and bill savings opportunities
• Rates will rise about 1 during the first five
  years, but decline thereafter
• Low income customers are exempt from any rate
  increase

3
The SmartMeter Program Leverages Proven
Technologies the Dual Network Architecture
DCSI Electric powerline carrier network
CONSUMER
Web
Server
PG

E
Substation
Meter Data Management Storage
PUBLIC
WIRELESS
NETWORK
TWACS
Substation
PLC
Communication
System
Equipment
Controller

BEA / EAI
Hexagram
MDMS
Fixed Wireless Network System
PUBLIC
WIRELESS
STAR
NETWORK
RF Network
Data
System
Collector
Controller
Unit
WELLINGTON POWER CORPORATION Meter network
installation / supply chain management
MBC Data Warehouse
CCB

Interval billing upgrade
IT Systems Integration Project Management
4
Smartmeter Program Will Pay For Itself
Costs
Benefits
Demand Response
OM
Operations
ISTS Deployment 189M
Meters Networks Installations IT Systems
System Integration Project Management
ISTS OM 191M
Field Deployment 1,299M
Meter Reading
20 year Present Value of Revenue Requirement
5
Customer Benefits

• Access to better pricing information
• Fewer estimated or inaccurate bills
• Faster outage detection and restoration
• Remote turn-on / turn-off
• No inconvenience due to manual meter reads (e.g.,
  no need to unlock gate or tie up dogs)
• Opportunity to lower bills by taking advantage of
  new tariff options

6
SmartRate

• SmartRate is voluntary and will be offered to all
  customers
• A premium charge (0.60 per kwh for residential
  customers) will be added to current rates during
  peak hours on designated SmartDays
• SmartDays will be called during summer months
  only (June 1 - September 30), a maximum of 15
  times each summer
• A SmartRate credit is given for usage all other
  hours of the month
• Bill will be capped during the first year at
  otherwise applicable charges

7
Customer Rate Impacts

• Average residential rates will increase by about
  1 percent during the first five years
• After five years, cost savings will kick in and
  result in bill decreases
• Low income customers are exempt from paying the
  increase

8
Future Capabilities

• Appliance control and monitoring
• Smart thermostat
• Enhanced grid monitoring / switching
• More tariff options
• Pre-paid metering