Advanced meters prepare Anaheim for smart grid future

In the energy future of educated consumers who know what peak demand is and how it affects their energy bills, advanced meters will be a common tool for reducing energy use and costs. For 1,700 customers of Anaheim Public Utilities, that future has arrived, and more will join them as the city's advanced metering initiative moves forward.

Currently, close to 1,000 residential customers have the "smart" meters, as do all of the city's large commercial and industrial (C&I) customers, about 700.Technology Development Manager Stephen Nees estimates that all of Anaheim's 160,000 meters will be advanced units within 15 to 20 years. 

Pilot program 'Spares the Power'

The California energy crisis spurred the initiative, pushing Anaheim to seek demand-side management (DSM) tools that would give consumers more information about their energy use habits. DSM programs were already in place for C&I customers, so the utility turned its attention to the residential sector. "We were already testing advanced meters, and knew that the technology could play a role in reducing customers' consumption," said Nees.

In 2004, the "Spare the Power" pilot program began to put advanced meters to the test in a real-world residential setting.  The city invited 150 randomly chosen customers to participate and equipped their homes with meters that recorded energy consumption data in 15-minute intervals. Participants received a refrigerator magnet to remind them when their advanced meters would be installed. Brochures and newsletters were used to explain the program, and the department set up a phone line where participants could talk to a customer service representative trained to answer questions about the pilot project.

Based on weather forecasts, the department designated 'Spare the Power' days and contacted participants by phone the day before.  On the selected days, between noon and 6:00 p.m., customers who lowered their electricity use received a credit of 35 cents per kWh below their baseline consumption for comparable days. The standard rate is $0.11 per kWh. Those who did not use less electricity received no credit.

The customer response was very positive, with about 70 percent of the participants reducing their energy use. In the first year of the two-year pilot, preliminary data indicated load reductions in the range of 20 percent during critical peak events. This program earned the Most Innovative Demand Response Initiative from the Energy Planning Network, a utility membership-based peer group. 

Wider deployment, more benefits

Even before "Spare the Power," the department was outfitting large customers with advanced meters. As Anaheim's biggest power consumers, they stand to benefit the most from scaling back their use. Nees noted that about 30 customers in this category already take advantage of Web access to interval data.

In addition to giving customers the data to control their own loads, advanced metering allows the city another tool for controlling loads during critical peaks. Selected commercial customers receive incentives for participating in an air conditioning control program.  Anaheim may extend that incentive with a "Smart Thermostat" program for small and medium businesses this summer. Residential customers with high energy use may be able to participate in the program, too.  "The plan is to install an advanced meter for any customer who gets a 'smart thermostat'," said Nees.

There are other advantages to advanced meters besides load control. The technology cuts down on field trips by enabling utilities to read meters and connect and disconnect power remotely.  Advanced meter systems speed up the response time for discovering outages and restoring power, and make it easier to set up specialized rate schedules, such as time-of-use. As deployment moves forward, Nees anticipates that the utility will offer more time-based rates to reward customers for keeping their consumption low, and to incentivize higher consumers to use less.

Right system for today, future

Finding a system that delivers results now, and can adapt to future requirements and capabilities makes choosing advanced metering equipment a big challenge.

Anaheim selected eMeter software for its meter data management system (MDMS), because it can be readily integrated with current and projected applications, said Nees. "What we like about their system architecture is that it is specifically designed to mitigate future integration costs by using 'adapters' that communicate with other applications such as billing and asset management," he explained.

The system architecture for eMeter's EnergyIP product also allows configuration, rather than customization, Nees added. "That gives us the flexibility to adapt to changing requirements and to switch to another product's application, if ever needed."

Comprehensive sustainability push

Anaheim's advanced metering initiative is one of many investments the municipal utility has made in sustainability. According to the city's recently released Top 10 Sustainability Accomplishments, energy efficiency has just as great a role to play in protecting the environment as renewable energy does. 

And the results of the utility's commitment to conservation and efficiency are impressive. Through a combination of education, rebates and other incentives, Anaheim's customers have reduced energy use by 698 million kWh over the past 10 years.

The advanced metering initiative helped to achieve those savings, and will create more opportunities for the utility and its customers in the future. "We will continue to look for technologies that enlist our customers as partners in preserving our natural resources," Nees stated.

Resources

Anaheim Public Utilities

Energy Planning Network

eMeter software

EnergyIP product

People

Stephen Nees

Related articles

Energy Services Bulletin, July 2007
Utilities manage loads, build relationships with TOU rates

< PREVIOUS — NEXT >