A collaboration of:

The Smart Grid Journey

At OGE Energy Corp

Kevin Jackson

OGE Energy Corp

• About OG&E

• Our History with SAP

• Smart Grid Program Objectives and Goals

• Meter Deployment and Billing

• Demand Response

• Remote Reconnect/Disconnect

Questions

Our Journey

3

Enogex and Centerpoint Midstream Partnership

• 8.3k miles of pipeline

• 6 processing plants

• 23B cubic feet of natural gas storage

3

OGE Energy Corporation

Electric Utility

• 9 power plants: 6.8 GW

• 778 MW - wind

• 765k customers in OK & AK

• 30k square mile service area

• 23k miles of overhead distribution lines

• 500 substations

• 1100 distribution circuits

Slide 4

• Went live with R/3 January 1, 1997

o SD, PM, MM, FICO, HR, PS (2008)

• Spring 1996 delivered business requirements to SAP to develop utility specific CIS

• Spring 1997 delivery of IS-U Beta v0

o One of 6 Beta companies world wide

• Live with IS-U-CCS June 14, 1999

o IS-U v1.1B, R/3 3.0F

o 3 Month Roll Out

• Currently running ECC 6.0 EHP6

o We do not use CRM, EDM, SAP’s AMI

@

Slide 5

CEO Goal Defer building more fossil fuel

generation until 2020 or beyond

Slide 6

Slide 7

(CC) SublimeDharma on Flickr (CC) Valard LP

Additional wind generation Build transmission to deliver wind energy Increased focus on energy efficiency Deploy SmartGrid technology

• Meter Operational Savings

o Meter Reading $15M/Yr

o 300,000 reconnect/disconnect orders/yr – reduced truck rolls

o 200,000 move-in/out orders/yr – reduced truck rolls

• Net Headcount Reduction: 135

• Customer Participation Goals

o 20% penetration

o 1.3kW per customer

• Avoided Generation Cost: $287M (15 Yr NPV)

• Energy Reduction (VVO): 75 MW

• Reliability: 30% SAIDI reduction

o DA Societal Benefits $300 M/Yr

OGE Smart Grid Program Goals

Slide 8

Slide 9

• Advanced Metering Infrastructure (AMI)

Digital meters for all customers 15 min interval reads

Remote reconnect and disconnect

2-way communications

• Demand Response (DR) Programs

Dynamic pricing

In-home technology

Customer engagement

• Distribution Automation (DA) Technologies

• Automated switching

• Volt–VAr Optimization

• Centralized control - DMS

• All enabled through integrated wide area communications

network, IT systems and supporting business processes

OG&E Smart Grid Includes

DA

DR

AMI

• February 15, 2010 –

First meter set in Norman, OK

• 200 per day at first

• Ramped up to around 2000+ per

day over a 3 year period

• Meter Deployment officially

ended in December of 2012

Meter Deployment

By the Numbers

Slide 10

2010 184,000 meters

2011 314,000 meters

Meter Deployment+

2012 299,000 meters

• Weekly Meter Deployment population file

o Population file used by meter installation vendor to plan and schedule meter deployment

• Black Out Window (Dunning disconnects and billing)

• SAP Serialization program to consume meter vendor data

• Automated meter installation program written to install meter in SAP

• Sync program to MDMS system

• Based upon what meters were installed per day, SAP generated Location

Information File which would sync with AMI system

SAP Development to Support Deployment

Slide 12

• Once smart meter installed, no meter reader used

• Custom programs created to satisfy meter reading document for billing

• Normal register reads

• Demand response using daily register reads

• Calling MDMS using interval data for demand response

• Interval meter data used for complex tariffs

• Goal - no estimation to generate electric bill

• Meter Deployment plan allowed us to read and bill customers with no

interruption to billing schedule

Billing with Smart Meters

Slide 13

Demand Response Background

Slide 14

Quail Creek

• 25 Customers

• Acceptance

• Energy Awareness

2010 Study

• 3,000 Customers

• Reduced Peak

• Segment Results

• Acceptance

• Technology

• Dynamic Pricing

2011 Study

• 6,000 Customers

• Commercial Results

• Critical Price Results

2012

Roll-Out

• ~40 K Customers

• 70 MW

• ROI Marketing

• Penetration Testing

2012 and beyond

• 20% Penetration

• 210 MW

• New Pricing Products

• Value Added Products

New Dynamic Pricing Options Offered

Slide 15

• Hours: 2 – 7pm, Monday - Friday

• Summer Season (June – September)

• Customers receive day-ahead price via

in-home display, web, text, email, voice

message

• Tariff is optional

• Customer decides how to respond &

manage consumption

Residential Variable Peak Price Tariff

Pri

ce

Time of Day

$0.46

$0.113

$0.045

12:00 a.m. 3:00 a.m. 6:00 a.m. 9:00 a.m. 2:00 p.m. 7:00 p.m. 12:00 a.m.

Customer

Demand

Line

$0.23

• Enrollment

o 3rd party portal makes web service call to SAP to verify last 4 of SSN

o Rate changed in SAP

o PCT Installation

• Daily Price Signals

o Pricing from fuels department

o SAP jobs run to store daily price

o Price signals for voice, SMS, email

72,000 sent in 1.5 hours

o AMI vendor calls SAP web service to get price

o OGE.com calls SAP via web service to get price

DR Enrollment and Dynamic Pricing

Slide 16

Price Signals

Slide 17

Voice Message

Home Energy Report

Slide 18

MyOGEPower.com

Slide 19

Smart Grid Screens in SAP

Slide 20

Existing Custom Screens Modified

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VPP and Technology Impact

• Leave existing disconnect processes in place

o Existing processes included Business Workflows and programs to generate PM

orders to reconnect/disconnect service

o Programs running to look at device category to determine if the order should be

sent to the field or queued in SAP to provision remotely

• Additional considerations for Dunning

• Additional considerations for Vacancy Reconnect/Disconnect

Remote Reconnect/Disconnect

Slide 23

• Ratchet volume up or down

depending on need

o Critical Operations Protector

Disconnect/Reconnect

Capabilities

Slide 24

• SAP will attempt to remotely provision service

• After 2 failed attempts to provision meter, order is sent to mobile

dispatch system

o 99.3% successfully provision from SAP

• Emergency reconnect process

Successful Provisioning

Slide 25

Trap Orders in

SAP Table

Slide 26

• Don’t disconnect rail road crossings

o Eyes on accounts before disconnects start

• OK to start disconnects

o Table entry made when it’s okay to start letting dunning disconnects fly

• Moratorium

o Company wide, by state, by service district

• Additional requirements before disconnecting Arkansas service

Considerations for Dunning

Slide 27

• Disconnect all Move-Outs that do not have a corresponding Move-In

• If existing disconnect document exists at the time of move-in

• Move-in/out reads satisfied by daily register read

Considerations for Move-In/Out

Slide 28

• Nearly 800,000 meters deployed in 3 years time

• All customers billed “on-time” during meter deployment

• Demand Response growing to 120,000 planned by end of 2014

• 350,000 Remote disconnects

• 343,000 Remote reconnects

• 1 Million Move-in/Out Reads

At a glance

Slide 29

A collaboration of:

Kevin Jackson OGE Energy Corp

jacksokm@oge.com