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Phase Zero

SDG&E viewed the RFP responses provided by Itron as a good starting point for how the MDM project would proceed but not sufficient to finalize contract terms. SDG&E was looking for fixed priced contracts for MDM and AMI but understood it may not be that easy since the market and products are just starting to mature. As a result, Capgemini, SDG&E and Itron entered into what Rick Carusa, Smart Meter Systems Integration Project Manager at SDG&E, calls “Phase Zero” of the implementation, which turned out to be a six month process. They walked through the RFP response-by-response to establish a detailed statement of functionality of the MDM that Itron would provide, allowing all parties to fully understand what was required, the cost, and timing.

The six month Phase Zero was broken down into the following steps:

• Step A
  • Bring MDM vendor up to speed on our business case and high level process designs through review sessions with our business areas
  • Start to build list of business processes affected by AMI project
• Step B
  • Build a high level Solution Architecture to use as the basis for a fixed price contract
  • Construct the Statement of Work for the fixed price contract
• Step C
  • Project Start-Up Activities
  • Define Project Methodology and Approach
  • Develop Project Charters
  • Project Planning and Organization
  • Set Up Project Management Infrastructure

SDG&E is approaching the AMI and MDM initiative as two separate projects that will integrate tightly once all vendors have been selected. For now, SDG&E does not expect differences across AMI vendors to have a significant impact on the MDM implementation. According to Carusa, the MDM will be the conduit for information to move back and forth for both electric and gas meter data but not where the functionality will reside to support the new time-based electric tariffs that SDG&E expects to implement. The MDM will perform the following functions at SDG&E:

• Systems Management (i.e., Integrated Trouble Ticketing, Device Status Management, Exception Management and Data Collection Performance Reports)
• Data Analysis (i.e., Zero Consumption, Daily Consumption Verification, Billing Cycle Verification and Energy Diversion Detection)
• Data Repository (i.e., Online Data Storage, Register Reads, Interval Data, Event Data and Volume Requirements)
• Interval Data Maintenance (i.e., View and print interval data, maintain interval data, versioning of interval data and process multiple channels of data)
• Data Processing Management (i.e., Billing Data Preparation, Aggregation, Curtailment Signal Capabilities, Data Validation/Estimation,/Editing (VEE), Forming of Interval Data into Billable Units, Netting Meters or Channels)
• Service Order Management (i.e., Service Order Request Generation, AMI Network Equipment Services, Customer Premise Work.)

SDG&E has made some assumptions of what type of time-based rates will be rolled out and what automated support SDG&E will provide to customers (smart thermostats, for example) but the actual rate filing for those rates and programs is included in SDG&E's general rate case filing, and is being considered in an entirely separate regulatory process.

SDG&E selected Capgemini in part because of their experience at Ontario Hydro. Capgemini has been able to leverage their experience in Ontario where, similar to California, there is a strong regulatory push for advanced metering and time-based rates. Itron was selected for MDM because of the strength of their RFP response and their belief that Itron would remain a player in the utility and MDM space for the long term. SDG&E believes investing in MDM first is the best approach, and it has worked out particularly well for them because of the advances made in the AMI technologies over the past 18 months. Southern California Edison (SCE) has helped push the AMI technology vendors to provide significantly improved products at lower cost. While SDG&E has concentrated on the back office systems benefits and end-to-end functionality to support their AMI project, the AMI market underwent a transformation of sorts. However, the new functionality of the AMI endpoints will have little or no impact on the MDM that SDG&E has installed.

SDG&E is currently in the process of reviewing rules for validation, estimation and editing (VEE) of interval data within their MDM. This seems to be typical of utilities that have installed MDM in the last few years and was discussed by utilities attending the AMI MDM conference held at JEA in March 2007. Like other utilities, SDG&E is starting with VEE rules they have used in the past for their load research and C&I meters. SDG&E is considering how much editing to perform on the interval data provided by the 1.3 million endpoints.

Advice for Other Utilities

Is the approach that SDG&E took with MDM and AMI appropriate for other utilities? Carusa was cautious in suggesting that other utilities should follow their example too closely. It worked out well to stagger the implementation of MDM and AMI by 18 months because the AMI market changed so dramatically while SDG&E was in the process of further defining the MDM processes. Other utilities may be better off implementing MDM and AMI closer together. Carusa does highly recommend “Phase Zero”—spending the time discussing the details of what would be provided and building on the RFP rather than using the RFP responses “as is” as basis for a contract.

SDG&E is in the process of completing the project startup, and the current schedule calls for the first advanced meter endpoint to be installed in the fourth quarter of 2008.