Advanced Metering

Infrastructure

1
1. What is AMI?
2. Why should
AMI be
implemented?
3. What issues
face AMI?

2
Background: What is the Smart
Grid?
• Monitors supply and
demand of electricity for
users
• Permits users to use
more energy when it
costs less and to use
less energy when it
costs more

3
 Smart Grid Background
Continued
• Two different
concepts
– Transmission level grid
that allows utilities to
operate more
efficiently
– The interface between
the utility and the
customer

4
 Technologies to Implement the
Smart Grid
• There are many • Most important two
– Visualizing Energy here:
Resources 1. Smart Metering
Dynamically on 2. Advanced Metering
Earth (“VERDE”) Infrastructure
– Distributed (“AMI”)
generation

5
 1. Smart Metering
• A very broad concept • What are complex
– Combo of metering- rates?
related technologies – Any rate that goes
systematically beyond a simple total
configured to support monthly billing for total
complex rates electricity consumption

6
 Examples of Complex Rates
• Time of use (TOU) rates
• Demand rates
• Dynamic or peak-
sensitive rates

7
 More on Smart Metering
• Traditional meters are manually read on a
monthly basis; smart meters are interval
meters
– Allow measurement of usage over much
shorter intervals
– More precise measurement provides greater
flexibility and efficiency

• Proliferation almost tripled from 2006 to

2008, to 19M smart meters
8
 2. Advanced Metering
Infrastructure (“AMI”)
• What is it?
– Smart meters at the consumer’s location
– Fixed communication networks between consumers
and service providers
– Data reception and management systems that make
the info available to the service provider (meter data
management system or “MDMS”)
• MDMS: software applications that receive and
store meter data and perform other functions

9
 AMI Definition
• Two characteristics
– Fixed network systems
– Capable of supporting complex rates

10
 What does AMI do?
• Enables a two-way flow of information between
consumers and utilities

• Enables proliferation of demand response

• Allows service provider to control consumers’

electricity usage (load control)

• Facilitates Smart Grid deployment and

distributed generation

11
12
13
 Gathering Meter Data for
Complex Rates
• There are several types of advanced
metering, but not all qualify as AMI
– Standalone meter read locally
– Standalone meter read remotely over public
infrastructure
– Meter with short-distance communication
upgraded to fixed network
– Private fixed network AMI system

14
 Implementing AMI Fixed
Networks
• Options • Choice dictated by
– Fixed Radio – Benefit to utility
Frequency (RF) – Number of customers
– Power Line that will take
Communication (PLC) advantage of dynamic
– Broadband Over pricing
Power Line (BPL) • First three are the most
– Public Networks popular
• E.g., landline, cellular,
paging, etc.

15
 Data Rate Classes
• Low bandwidth • More bandwidth
• Mesh networks equals higher cost
– Communications from • But also more
each meter flow capability
through several others • Allows for unforeseen
on the way to the
MDMS value sources
• Full broadband
network connections

16
 Why implement AMI?
• Public Utilities Regulatory Policies Act
section 111(d) mandate
– As amended by § 1252 of the Energy Policy
Act of 2005
• Each utility must offer each class of
customers a time-based rate schedule
• And must provide these rates and meter
them for those who request

17
 Why implement AMI?
• Public Utilities Regulatory Policies Act
section 111(d) mandate
– Regulators of regulated utilities and
unregulated utilities required to “consider and
determine” whether smart metering is
appropriate
– If so, these entities must set smart metering
standards for the utilities

18
 Determining If Smart Metering
Is Appropriate
• Cost-benefit • Two considerations
analysis – Metering
• Must consider – Programs that
benefits for allow customers to
– Customers lessen electricity
use
– AND utilities

19
 Benefit: Demand Response
• EPAct of 2005: US’s • Allows for peak shaving:
policy is to encourage reducing electrical
demand response demand at times when
electricity is most costly
• AMI allows consumers to to produce
easily take advantage of
dynamic pricing programs • AMI provides info that
incentivizes customers to
• Utility provides info on reduce usage and
electricity price changes automates that process,
to consumers so they requiring minimal
may modify their usage consumer effort
20
 Conventional Methods of
Providing Price Info
• Examples
– Newspaper
– Audio broadcast radio
– TV
– Fax
– Telephone
– Email
• A fixed network AMI solution would provide
this info to many consumers with
comparatively less difficulty 21
 Another Benefit: Load Control
• Home Area Networks
• Homes can respond
to electricity supply in
order to maximize
efficiency through
user-set profiles
• Utilities can alter
supply of electricity to
homes when demand
is expected to spike
22
 AMI Proliferation
• AMI accounts for • Which electricity
4.7% or 6.7M of all generating entities
US electricity users have done the most?

– Electric
cooperatives have
highest rate at 13%
• Number of installed
meters projected to
– Investor-owned
grow to 52M by 2012
utilities: close to 6%
23
24
 EPRI’s Stated AMI Issues
1. Cost-benefit assessment
2. Security
3. Interoperability and standard interfaces
4. AMI specifications
5. AMI and demand response networks

25
 Cost
• Itemization
– Hardware and
software
– Installation costs
– Meter data
management
– Project
management
– IT integration
26
Cost Estimates

27
 Cost Estimates
• Hardware and software costs have decreased over time
– Over the last 10 years, they are 80% of what they
were

• 2005-2006: hardware costs were $76/meter on average

• Capital costs for communications infrastructure

– About $125-$150/meter

• Adding demand response capability increases costs by

another $100-$350/site
28
 Security Issues
• Privacy
– Can determine if
someone is home
– Can determine
usage patterns
• Exposure to cyber
terrorism

29
 U of I Security Lab Threat
Taxonomy
• Curious
eavesdroppers
• Motivated
eavesdroppers
• Unethical customers
• Overly intrusive meter
data management
agency
• Active attackers
• Publicity seekers

30
 Standardization
• How do you ensure
that everything can
communicate in an
AMI system?

• Communication
protocols amongst
– Load control
devices in HANs
– Fixed networks
31
32
 Conclusion
• AMI faces many
challenges but has
the potential to
greatly increase
energy efficiency

33