04/13/23 1
Broadband over PowerlineAn Emerging Market Opportunity
Doug McMurrayManager – Business [email protected]
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Presentation AgendaI. IDACOMM OverviewII. Introduction to BPLIII. Regulatory StatusIV. BPL Market
ApplicationsIV. BPL BenefitsV. Conclusion
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IDACOMM Background• IDACOMM is the non-regulated
subsidiary of IDACORP (NYSE: IDA)
• Operates and Manages Multiple Networks
– Fiber/Fixed Wireless– 30 DSL Markets– Existing BPL Deployments
• Scalable Centralized Operations– Marketing and customer support– Technical Support & Network
Operations
• Experienced Senior Management Team
– Fortune 500 – Entrepreneurial/ IPO/ M&A– Emerging Technology Deployment– Fiber Network Design and Management– Call Center Operations– Utility Financial Management– Regulatory/ PUC/ FCC/ FERC Experience– Complex System Integration
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IDACOMM Business Organization
Regulatory Expertise – FCC, PUC, FERC, NARUC, EEI, WEILicensed Facility Based CLEC (Multiple States)
OSS/BSS – Back office Integration – Branded Customer Support, Unified Billing, Technical Support, Network Operations Center
• Fiber Optic CLEC
• Metro Area Fiber Networks
• 36 Customers– Fortune 1000, Carrier &
Govt
• Existing Product Lines– Fiber to Anchor Tenant
• New Product Lines– Business Voice – Voice over IP– QOS, LNP, E911, 411– Integrated Voice & Data
• Operating Since 1985
• Broadband ISP – Retail Channel
• 35,000 Customers– Residential & Enterprise
• Product Lines– DSL / ATM / Frame Relay– Wireless & Dial up– Hosting– Wholesale (Back Office)– Billing, Customer Care– ISP Marketing & Operations
• Operating Since 1993
• BPL Services LLC• Technical & Market Trials
– Idaho Power Company– Center Point Energy– TXU Electric Delivery
• Vendor Relationships– Ambient | Amperion– Mitsubishi | Motorola
• Professional Services– Network Design & Deployment– BPL & IP Integration
• Strategic Partnerships
– IBM | EarthLink
– Broadsoft | Cisco
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Broadband Over Powerline (BPL)• It’s Broadband Technology that uses “Existing Utility Electric
Wires” born in the 1950’s as PLC (Power Line Carrier)
• Most Utilities can leverage their networks to create new services and revenues
• The FCC and PUC’s are fully supporting BPL as a Direct Competitor to Cable and DSL – FCC Report and Order, October 14, 2004– FERC Supports FCC, encouraging regulated & non-
regulated solutions– Proposed UPLC Managing National BPL Data Base– NARUC BPL Task Force issued White Paper, February 15,
2005
• IDACOMM is an Emerging BPL Technology & Market launch leader focused on a select few Utility Partners in North America
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Utility Interest in BPL (Source UPLC)
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IDACOMM Service Delivery Architecture
Voice Data Bundle $30-$40 mo. Video in 2005.200 mbps Medium Voltage 25 mbps Low Voltage
IDACOMM
OC-48 SONET Core
IDACOMM Network Operations CenterNetwork Element Management | Network Security Management | Outage Response
Video & VODVoice (Local & Long Distance)Data & Internet
ISP Backoffice
Authentication
Email Systems
Web Systems
Billing & Credit
Voice Gateway
Soft Switch
Feature Server
911 / 411 Services
Long Distance Carrier
VOD Server
Video Encoder
Application Server
Digital Rights Management
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Broadband Over Powerline
IDACOMMMetro Fiber Ring
Architecture
Internet Data Video
Each site supports multiple customers
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IDACOMM is diligently working within the industry to educate, inform, develop standards, and lead the successful creation of a new industry and market.
Creating a New Industry
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BPL Regulatory Status • FCC
– New rules for BPL operations promote deployment while protecting radio licensees from interference
• BPL is an unlicensed operation• Low probability of interference from BPL
operating at existing emission limits• Safeguards established to mitigate
interference, if it occurs.• Measurement guidelines: consistent and
repeatable – FERC and NTIA strongly support FCC rules– FCC deliberately avoids regulation of BPL
services and infrastructure.– Petitions for Reconsideration pending
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BPL Regulatory Status• States
– NARUC BPL Task Force Report identifies regulatory issues; advocates light-handed regulation
• Cost & Revenue Allocation– Incremental v. Fully Allocated Costs
• Affiliate Transactions– Structural or functional separation
• Easement & Rights of Way– Studying possible best practices
• Pole Attachments– Assessing access/rents
• Open Access– Negotiated access for nascent industry
• USF and other Telephone Regulations– Supports technology neutral regulations, if they
apply at all.– Some states introduce pro-BPL legislation,
clarifying utility regulations– Anti-muni broadband bills could restrict BPL
• PA, FL, CO, IA, NE, TX
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Broadband Policy Trends• Regulatory Classification
– Supreme Court: Is cable modem a telecom or information service?
– FCC: Are all wireline broadband internet access platforms information services?
• Jurisdiction– FCC: Should states have jurisdiction over broadband, VoIP?– Congress: Should states/municipalities have jurisdiction
over broadband/IPTV• IP Enabled Services
– FCC: Broad proceeding examines all issues for everything IP.
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BPL Opportunity
• High speed data• VoIP & VoD• Home energy
management• Home Security &
Networking• Smart appliance • Smart Home Networks• Video conferencing
Retail Applications
• Intelligent grid• Homeland Security &
Monitoring• Automatic meter reading• Capacitor control• Demand prediction• Distribution transformer
overload analysis• Proactive Customer
Notification
Utility Applications
BPL, Fiber,Wireless, etc.Infrastructure
Utility Service TerritoryAn All IP Network
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Consumer Value
BPL Access vs. DSL• BPL – Up to 4x faster
– Current Platform (3 – 6 MB)– Next Generation (16 – 22 MB)
• Price Differential – Up to 40% less expensive on
Data– 1 MB for $24.95– ISP is included in base price!
• Bundle Services (Data & VoIP)– BPL = $34.95 - $44.95– DSL = $54.95 - $64.95
BPL Access vs. Cable• Bandwidth Scalability
– 1 to 10 Mbps solutions (2x Cable)
• Price Differential– $24.95 vs. $39.95 to $54.95– ISP Services already in base
price!
• Bundled Services– Carrier Class Voice Services– Quadruple Play vs. Triple Play
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BPL Internal ApplicationsOverview
On the Grid• Asset Management
– Power outage notification
– Predictive maintenance• Systems Optimization
– Enhanced SCADA
At the Premises• Advanced Metering
– AMR– Remote
Connect/Disconnect
• Load Management– Energy management
• Automatic meter reading• Capacitor control• Copper wire system replacement• Demand prediction• Detection and diagnosis of events at
capacitors and regulators• Distribution transformer overload
analysis• Line testing• Outage localization and fault
characterization• Phase loss detection• Power quality monitoring• Safety check for isolated circuits• SCADA delivery• Substation monitoring• URD outage diagnosis
Utility Applications
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At the Premises ApplicationsKey Drivers
• AMR– Improved demand side information and consumer feedback– Regulators desire more reliability and better demand
management• Load Mgmt
– Energy costs spiking– LM technology maturing and equipment costs decreasing – Environmental issues (e.g., green power) – Good business and good PR with the communities that
utilities serve.
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On the Grid ApplicationsKey Drivers cont’d
• Asset Management– Northeast Blackout
• Reliability, maintenance– Stray voltage
• Systems Optimization– Visionary smart grid efforts by EPRI and CEA– Enormous potential cost-savings opportunity from
these applications
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The Value of AMR
Revenue Enhancement
Val
ue
in
Do
llar
s
Uses of Common Information
Tradition AMR
Intelligent Grid w/BPL
Cost Reduction
AndImprovedCustomer
Satisfaction
Traditionally, the business case for AMR was too narrowly focused. • Largely revenue cycle services oriented• Predominately focused on meter reading cost reduction• Remote connect/disconnect
• Demand Forecasting• Load Shedding• Time of use billing• Theft detection
• Load profiling• Outage detection• Detection/diagnosis of events at capacitors and regulators• SCADA delivery• Microwave replacement
• Revenue generating services (e.g. Security, etc.)• Deploy demand monitoring/control within home• Support for distributed generation
Several New Forces are Impacting AMR Business Value:
Energy and Home Control Solutions
Distribution Asset Optimization
Demand Response Mgt.
RevenueCycleServices
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Key Drivers Going Forward
• Internal Applications– Increasingly important for the business case– Gating factor for utilities
• Standards– Competing considerations:
• Speed to market • Certainty• Safety• Future-proofing technology
– Efforts underway• IEEE• HomePlug• Universal Powerline Alliance• CE Powerline Alliance
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Industry Business Models for Utility’s
Utility Net Income Share
Capital Contribution Scale
Landlord
Model
$ - M $MM $ + M
8%
15%
25%
• 10 Yr Exclusive Agreements (Renewable)
• IDACOMM is managing partner
• IDACOMM will build and finance
Developer
Model
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Utility ApplicationsUtility Applications
Operational Efficiencies
Reduced Expenses
Improved SAIDI/SAIFI
Improved Outage Management
Maintenance Savings
Pervasive IP Network
Shareholder BenefitShareholder Benefit
Share of Net Income
Community Stewards
Consumer BenefitConsumer Benefit
Additional Choices/Competition
More Flexibility
Rate Payer ReliefRate Payer Relief
Access Fees
Pole Attachment Fees
Installation Fees
Electrical Usage Fees
Community Stewardship
Benefits to the Utility and Consumer are Benefits to the Utility and Consumer are provided across various stakeholder groupsprovided across various stakeholder groups
BPL Benefits
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Conclusions
• BPL in the U.S. continues to grow with support from public policy makers.
• Internal applications are in development and will be critical to utility adoption and widespread deployment of BPL
• Standards efforts coalescing under IEEE• BPL is a viable and affordable technology• Emerging Technology – Regulate with a delicate
hand• Win/Win situation
– All parties involved benefit…Rate Payer, Utility and Regulatory
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