Under Lock & Key: Theft Protection in Today’s Utility

Marketplace

Scott Zajkowski - N.A. Business DevelopmentKevin Mays - Technical Sales Engineer

Agenda

I. Global Energy TheftI. Worldwide

II. Canada

III. United States

II. Grow Houses

III. Types

IV. Problems Caused

V. Dangers

VI. Solutions

Energy Theft

• Electricity theft stems from… • Illegal connections

• Unbilled consumption

• Non payment

• Electricity theft occurs on all levels: Residential, small business, commercial and industrial customers

• Electricity theft is independent of an economical class

Energy Theft

• Major Global Concern

• Electricity theft has no boundaries

• Globally, an estimated $200 billion is lost each year due to equipment failure and theft

Electricity Theft Worldwide

Global Electricity Theft

• India experiences some of the most significant theft, where 1/3 of the power generated is lost

• Losses can reach 50% in certain areas within South Asian, Sub-Saharan Africa and the former Soviet Union

• Brazil energy losses reach as high as 25% in some areas

• The UK reports around 25,000 cases of electricity theft each year, costing customers over $300M

Energy Theft: Canada

• Calgary utilities estimate that 60% of power outages are the result of some form of electrical equipment tampering

• BC Hydro (British Columbia)• Estimates loss around 3% of total revenue

• Identified 2,600 thefts over the past 5 years

Electricity Theft in U.S.

• Energy theft in the U.S equates to $6 billion in losses annually, costing utilities 1-3% of their revenue

Marijuana Grow House

• Utilize sophisticated measures and methods to steal power

• A growing problem for many utilities across North America

• A small grow house operation can result in a $5000/yr loss for the electric utility.

G

Grow houses cost customers ~ $100 million each year according to BC Hydro

Energy Theft: Illegal Grow Houses

In the U.S, indoor cannabis growing uses about $5 billion annually to power lighting and irrigation systems. Most are illegal operations where they steal some or all their power

Economy Related Energy Theft

• PECO, a Philadelphia utility, stated that approximately 30% of the 14,000 customers whose service was disconnect in 2008 were using electricity illegally

• In 2008, Pennsylvania Power & Light (PPL) reported a 16% rise in energy theft, most related to service terminations

• AEP, one of the largest utilities in the U.S., investigated 3196 cases of theft in Jan – Feb 2008, a 27% increase from the previous year

Types of Electricity Theft

• Meter Tampering

Types of Electricity Theft

• Rewiring

Types of Electricity Theft

• Transformers:

• Unpaid Bills

Problems Caused by Energy Theft

• Safety

•Grid Damage

• Increased Costs

•Environmental Concerns

The Dangers of Energy Theft

• Fire hazards to property of perpetrators and neighbors

• Compromised safety of residents and utility workers

• Power outages

• Equipment Failure

The Dangers of Energy Theft

•Electrocution

•Death

Technical Solutions to Power Theft

• Smart Meters (AMI/AMR)

• Pre-pay meters

Technical Solutions to Power Theft

• Encasing meters

• Anti-theft cable

• Software (Analytics)

• End of line monitoring

Non-Technical Solutions for Energy Theft

• Public Outreach by offering financial rewards to consumers who report electricity theft

• Legal Measures • Stricter fines and jail time for offenders

• Management • Implementing inspection after a meter was

disconnected and not reconnected

Stricter Regulations on Energy Theft

• 70,000 energy thefts

occur each year in

Michigan

• New Michigan Utility

Theft Law

• Increased

penalties

• Now a Felony

Limitations of AMI/AMR Meters

• AMI/AMR or smart meters work very well for identifying usage on inactive meters and preventing meter tampering

• False tamper alarms are common occurrence with smart meters and many utilities ignore them

• Smart Meters can also be hacked which cost a Puerto Rico utility hundreds of millions dollars in losses.

• Many commercial customers have much larger transformers which may result in illegal connection away form the meter

End Line Monitoring + AMI/AMR

• In conjunction with smart sensors, AMI/AMR meters data can effectively leverage to detect and prevent energy theft

AMI/AMR Meter

VS1000

(End of Line

Monitoring)

X

TD1000

(Theft Detection) X

XX

X

Energy Theft Detection TD1000 & TD2000

• Remote smart sensor to monitor power usage to compare with AMI/AMR data to pinpoint illegal or unauthorized power usage

• Compact, economical and comprehensive solution for revenue recovery and loss prevention

Energy Theft Detection TD1000 & TD2000

TD1000/2000

• Single & Three Phase Monitoring

• Superior Accuracy

• Customizable KWh monitoring

• DNP3 Complaint

• Unsolicited Messaging & Alerts

• Magnetic Attachment

• Quick Connect CT’s

• Integrated Wireless Communication

Conclusion

• Energy theft will continue to be a major concern for all utilities unless certain measures are taken

• Implementing Smart Sensors to work in conjunction with AMI/AMR Systems to detect and prevent further losses

Thank you for your time

• For further questions about today’s webinar please contact

• Scott Zajkowski

• Email: szajkowski@ius-tech.com

• Phone: 470-514-2627

• Kevin Mays

• Email: kmays@ius-tech.com

• Phone: 470-514-2620

www.ius-tech.com