March 27th, 2014 Seamus Mulligan Engineering Manager The Energy Cooperative

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1 March 27th, 2014 Seamus Mulligan Engineering Manager The Energy Cooperative

2 Background The Energy Cooperative Newark Ohio about 35 miles East of Columbus Approximately 35,000 Members in 10 Ohio Counties About 55% of our members are located in Licking County Estimated just under $500K per year in Meter Reading Costs

3 Meter Reading Solution Increased efficiency (read more meters per day) Greater accuracy (fewer rereads) All inaccessible meters read monthly Inside Meters Fenced in Yards Dogs Remote Main Line Tap Meters Reduced Personnel Costs Safety Concerns Dangerous Hidden Drives ingress/egress

4 Things to Consider When Selecting AMI/AMR Automatic Meter Reading (AMR) Walk by monthly reads Drive by monthly reads Advanced Metering Infrastructure (AMI) Fixed base daily reads

5 The Fixed Base system quickly became the best choice Traditional AMR benefits of Greater accuracy Increased efficiency Monthly inaccessible meter reads

6 Advanced Metering Infrastructure Benefits Daily Reads Move-in/move-out reads Uniform billing periods Not affected by weather GPS location of meters Minimal personnel costs 20 year battery life

7 2 nd Generation FlexNet System 2-way communication w/meters Remote gas shutoff Pressure sensor alarm & shutoff Temperature sensor alarm & shutoff Tilt/Tamper sensor alarm & shutoff Vibration Sensor alarm & shutoff Event log w/ time stamp

8 Transmitters are installed on gas meters 2 watt highest signal range in industry FCC licensed spectrum Tower Gateway Base (TGB) stations Receive reading from meter Forwards reading to office Regional Network Interface (RNI) Receives data from TGB Supplies data to billing system

9 Handheld Programmer

10 AMI Equipped Meters

11 Transmitters are installed on gas meters 2 watt highest signal range in industry FCC licensed spectrum Tower Gateway Base (TGB) stations Receive reading from meter Forwards reading to office Regional Network Interface (RNI) Receives data from TGB Supplies data to billing system

12 Endpoints Endpoints Remote Gas Shutoff Electric Water Gas

13 Transmitters are installed on gas meters 2 watt highest signal range in industry FCC licensed spectrum Tower Gateway Base (TGB) stations Receive reading from meter Forwards reading to office Regional Network Interface (RNI) Receives data from TGB Supplies data to billing system

14 Network Base Stations T50/T100 D50/D100 WAN S50/S100 METRO

15 SMART GAS Today GRID Provides Hourly Reads Customer Service Tools Remote Off/On System Balancing End User Web Portal

16

17 Remote Gas Shutoff An intelligent solution based at the meter, that monitors and stops gas flow for unsafe conditions or on command.

18 Can t Get In Remote Gas Shutoff

19 RGS Features 5 PSI Bubble Tight Gas Disconnect Downstream (House Line) Pressure Monitoring/Shutoff Temperature Monitor/Shutoff Theft Alarms Tilt, Pressure, and Magnetic Event Log with Time Stamps Compact Device Cast Iron Body Durable Battery life good for 480 cycles Handheld Drive By Fixed Network

20 SMART GAS Future GRID Over-the-Air Flags Meter with internal remote shut-off Accuracy and alarms Differential readings Pressure C&I Transport Pre Corrosion

21 Started October, 2009 Installed 100 units first year Many problems were encountered AMI/IVUE communication software Bad handheld programming unit 2 units replaced

22 Successfully billed from AMI in October 2010 Installed 700 units by end of 2010 Continued to have minor software issues Installed 800 units by end of 2011 Installed 2000 units by end of 2012 Completed all shared members by end of 2012 Currently have 10,000 units installed Remaining 25,000 by end of 2016

23 Completed pilot at the end of 2012 and began full conversion program of all meters to AMI in years left at 8,500 meters per year Install/rotate 1000 meters w/transmitters Install 7,450 commercial transmitters Install 50 large volume transmitters Install 2 TGB s or equivalent per year All new meter installs w/transmitters

24 Service Department Revised service areas Rotate through all areas On call schedule east and west All meter reading 3 rd party Completed 10,117 Service Orders YTD Leak Inspection inside meters

25 Total Project Cost $3,800,000 Projected cost per year $ 190,000 - Rotate 1000 meters w/transmitters $ 560,000 - Install 7,450 transmitters $ 25,000 - Install 50 large volume transmitters $ 100,000 - Install 2 additional TGB s or equiv. $ 875,000 Annual cost/year for the next 3 years

26 Simple Economics Savings $480,000 in recognized meter reading savings $35,000 Read-in/Read-out (estimated 2%) $25,000 high bill investigation/customer inquires $540,000 total estimated Savings

27 Simple Economics Yearly Costs $130,000 to replace 2000 AMI s/year (18 year cycle) $25,000 in software upgrades $380,000 cost per year ($3.8M/10 years) $535,000 total estimated Expense

28 Smart Meters versus Other Common Items Device Relative Power Density in microwatts per square centimeter (mw/cm2): X 100 X 100 X 90,000 X 50,000 28

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