Port Angeles, WA Process to Purchase AMI System Know Your Business Case Have A Procurement Strategy Evaluate 1st & Ongoing Costs Have A Communications Plan Summary Outline Business Case Customer needs Rate design needs Federal/state mandates Aging meters Meter reading costs Cost saving New Time of Use Rate Design Whats Your Peak Hour? Peak HoursShoulder Hours New Rate Design Residential, general service, non-profit customer classes Winter & summer seasonal energy rates Peak, off-peak, and shoulder periods Base charge Demand response credits Demand metering & charges only for large commercial Your Procurement Strategy? Competitive negotiation or low bid Turn-key or multi-year deployment Vendor or utility installation Whats your risk tolerance? Demand response Leverage Your Assets Use utility owned infrastructure Move toward smart infrastructure Full two-way communication Co-located hardware Procurement Suggestions Stay technology neutral Hold interviews and demonstrations Check references and conduct site visits Know what you are willing to agree to Construction phases 3 rd party issues 1 st Cost Considerations Meters & disconnect meters Service repairs Demand response Installation Communications system Hardware & software Meter data management system Outage management system Integration services Ongoing Cost Considerations License fees Pole attachment fees Software maintenance fees Server and switch depreciation Customer information system fees Network services (fiber optics, GPRS) Consider life cycle costing Communications Plan AMI meters are highly accurate so everyone pays for what they use its fair The AMI system allows the City to run its utilities efficiently and at the lowest cost possible its financially responsible Customers can have more control over their bill Its future ready Smart meter installation credited with finding fire risk Port Angeles resident Donna Rowan looks at the electric meter on the side of her house after utility workers discovered that her old meter was dangerously hot Know your business case Have a procurement strategy Consider 1 st and ongoing costs Communicate throughout AMI System Acknowledgements Olympic Electric Company, Inc. SUNGARD Purchasing and installing an AMI system is like parenting Just when you get good at it YOURE DONE! Concluding Thought Larry D. Dunbar City of Port Angeles, Washington Deputy Director of Public Works & Utilities or WebsiteAMI System RFP