Common Ground on Industy Terms-An Extended Glossary

Common Ground on Common Industry Terms An Extended Glossary

Common Ground on Common Industry Terms

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Preface This document seeks to define, for the marketplace and for Itron as a market leader, the meaning of certain technology terms. Our purposes in doing so are:

• Reducing confusion for those in the marketplace who are less educated about these terms (including Itron employees).

• Supporting standardization of these terms. • Reinforcing Itron’s position as a knowledge leader and the source to contact when a technology term is

unclear. By defining these terms in a credible, consistent, and authoritative manner, we hope to have several positive impacts:

• All Itron employees use the same definition for these terms. • Consultants use these definitions. • Customers and prospective customers use the definitions. • Itron has credibility in these areas, even if our products are not the best fit for a particular customer or

situation. Audiences for this document include

• Itron employees • Utility customers and prospective customers • Regulators / legislators • Consultants • Partners • Competitors

If you’d like to propose changes or additions to this document, please contact Matt Spaur at 509.891.3992 or [email protected].


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Table of Contents Metering and Data Creation Terms................................................................................................. 5

Data Logging .............................................................................................................................. 6 Net Metering ............................................................................................................................... 7 Pre-Paid Metering ....................................................................................................................... 8 Smart Metering ........................................................................................................................... 9 Solid-State Meters..................................................................................................................... 10

Meter Data Acquisition Terms...................................................................................................... 11 Advanced Metering Infrastructure (AMI) ................................................................................ 12 Advanced Network ................................................................................................................... 13 Broadband Over Power Line (BPL) ......................................................................................... 14 Fixed Network .......................................................................................................................... 15 Head-End System...................................................................................................................... 16 Interval Data Collection............................................................................................................ 17 Mesh Network........................................................................................................................... 18 Power Line Carrier (PLC)......................................................................................................... 19 Real-Time Data......................................................................................................................... 20 Remote Disconnect / Connect Virtual Disconnect / Connect................................................... 21 Two-Way Networks; Two-Way Systems; Two-Way Communications ................................. 22 Unlicensed Spectrum ................................................................................................................ 23

Mobile Workforce Management Terms........................................................................................ 24 Mobile Workforce Management............................................................................................... 25

Meter Data Management Terms ................................................................................................... 26 Meter Data Management........................................................................................................... 27

Meter Data Applications Terms.................................................................................................... 28 Leak Detection .......................................................................................................................... 29 Load Forecasting....................................................................................................................... 30 Load Profiling ........................................................................................................................... 31 Outage Detection and Restoration ............................................................................................ 32

Demand Response and Load Management Terms........................................................................ 33 Demand Response..................................................................................................................... 34 Load Control ............................................................................................................................. 35 Price Response .......................................................................................................................... 36 Time-Of-Use (TOU) Pricing / Critical Peak Pricing / Real-Time Pricing ............................... 37

Delivery System Management Terms........................................................................................... 38 Compatible Units ...................................................................................................................... 39 Design Optimization ................................................................................................................. 40 Distributed Generation / Distributed Resources ....................................................................... 41 Distribution Asset Optimization (DAO)................................................................................... 42 Gateway .................................................................................................................................... 43 LMP (Locational Marginal Pricing) ......................................................................................... 44 Performance Based Rates (PBR) .............................................................................................. 45 Smart Grid................................................................................................................................. 46 Zonal Forecasting...................................................................................................................... 47


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Trans-Product Terms .................................................................................................................... 48 Open Standards ......................................................................................................................... 49 Open Systems............................................................................................................................ 50 Revenue Assurance................................................................................................................... 51


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Metering and Data Creation Terms


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Data Logging Definition Collecting water meter data at frequent time intervals in order to provide feedback on usage for billing disputes, water conservation efforts and leak detection. Most water utilities do not currently collect consumption data more frequently than monthly.

Relevance As water becomes a scarcer resource and utilities strive for operational efficiencies, utilities are looking for features such as data logging to provide more detailed data about water consumption.

Best Fit Data logging works best in situations where water utilities have the need to record frequent data in support of expanded customer service efforts or water conservation programs.

Real World Increasingly, utilities are inquiring about data logging as leak detection becomes more important.

Itron Solutions Itron’s 1430 MHz water endpoints do support data logging and allow for 840 intervals of scalable data. 200W and 200WP water endpoints support data logging and can be configured for 15 minute, 30 minute, 1 hour or standard bubble up interval of 4 hours. Itron’s 900 MHz water ERT modules do not support data logging.

Related Terms Interval Data Collection, Meter Data Management


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Net Metering Definition Net metering applies to energy customers, such as commercial and industrial users, who both generate and purchase power. Utilities need to meter the power generated by customers to determine the credit the customer should receive. A net register calculates energy to be billed by subtracting power received from the customer from the power delivered to the customer. Net metering provides the technology to calculate this amount as a net amount within the meter. This saves the utility from needing to record multiple billing values during the data collection process and performing calculations to determine the net value.

Relevance C&I customers out of necessity, and residential customers out of environmental interest, are exploring the option of generating some of their own power through distributed generation. Technologies for distributed generation include solar, fuel cell, and bio-mass generation. To support distributed generation, utilities are required to meter the credit for customer-generated power, as well as the debit for customer-consumed utility power.

Best Fit Net metering has been used for years at transmission interconnection points, large customer interconnection points, and large generation stations, to name three uses. It is also commonly used with a utility’s largest five to ten percent of customers. Net metering also applies to distributed generation, for those customers who have the ability, resources, and economic incentive to generate power on their own.

Real World Distributed generation, and thus net metering, has yet to achieve a significant level of penetration in the marketplace.

Itron Solutions Itron electricity meters – including the SENTINEL meter and the CENTRON (kWh only) – support net metering. These products offer flexibility in the calculation of the billing data to include calculation of the net value.

Related Terms Distributed Generation


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Pre-Paid Metering Definition The ability to credit a customer’s account or meter for pre-payment for energy. A fairly common approach is to have customers pre-purchase energy cards or vouchers, much like they would a pre-paid phone card, and their “Pre-paid–enabled” meter would provide the interface and communications technology that enables them to redeem the card for energy on a pay-as-you-go basis.

Relevance Utilities exploring revenue assurance options are increasingly examining pre-paid metering. Pre-pay can help improve cash flows. Pre-payment could also be required of customers with a history of late payment or missed payment.

Best Fit Barring a utility’s ability to offer significant discounts for pre-payment, the best fit for pre-paid meter remains accounts that have a history of late payment, no payment, or credit issues.

Real World Pre-payment fits best in areas of high customer turnover, historic revenue loss through nonpayment, and cultures where the theft of service is ingrained. Several deployments are in place in the US, but this application is not yet a significant growth area in North America. Pre-payment is common in Africa and South America, and to a lesser extent in Europe.

Itron Solutions Itron does not have a pre-paid metering application, but can provide tools to facilitate such an application.

Related Terms Remote Disconnect / Connect, Revenue Assurance


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Smart Metering Definition A foundational technology including meters, communications systems, and computer processing that automatically collects meter data frequently to support various applications beyond monthly billing.

Relevance As markets such as California and Ontario adopt programs known colloquially as “Advanced Metering Initiatives,” it becomes important to understand what is meant by “smart metering.” This is particularly true as some metering and AMR manufacturers have labeled their products as “smart meters.”

Best Fit Itron believes that smart metering encompasses more than a meter’s communications ability. Smart metering also includes systems that automate meter reading and provide a frequency and complexity of data that supports applications beyond monthly customer billing. Some of those applications include forecasting, load management, outage detection and restoration, and variable rate structures. By enabling these types of applications, smart metering provides benefits to both the provider and the consumer. This form of smart metering has existed in the marketplace since at least 1994. It has been most successful in serving the electrical needs of customers in urban and suburban areas, where the number and density of customers justifies the additional investment required to implement smart metering. However, to a lesser extent smart metering has also benefited water and natural gas providers and consumers, such as collecting gas day take information.

Real World Many utilities large and small are using various automated meter reading (AMR) technologies to generate, gather and apply the type of frequent meter data promised by smart metering.

Itron Solutions Itron’s ERT, electricity metering, automated meter reading products, and meter data management software all support smart metering.

Related Terms Advanced Metering Infrastructure, Fixed Networks, Mesh Networks, Solid-State Meters, Two-Way Networks


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Solid-State Meters Definition Utility meters that rely on solid-state circuitry, rather than mechanical and electromechanical technology, to measure energy usage and generate metering data more accurately and reliably.

Relevance The mechanical and electromechanical technology underlying today’s utility metering is essentially 19th century technology. As meter populations age and utilities examine their ever-changing business environment, the financial and customer benefits of applying solid-state circuitry technology to metering become more appealing.

Best Fit Solid-state metering currently fits best with electricity metering. In metering gas, solid-state technology appears in equipment to compute temperature and pressure variances in reading gas volumes. For water providers, solid-state technology remains a newer development. Solid-state metering fits well with both new meter purchases and replacing aged meter populations for increased accuracy.

Real World Solid-state metering for electricity is used around the world in a variety of settings with a variety of customers. The electricity marketplace has already transitioned from electromechanical to solid-state meters for more complex applications such as metering for commercial and industrial customers and transmission and distribution metering. Solid-state electricity metering at the residential level is gaining significant penetration. In 2003, the domestic solid-state meter market totaled $379 million. It’s projected to grow at an annual rate of 3.5% through 2010.

Itron Solutions Itron is a market leader in solid state single-phase electricity metering, having shipped over 13 million units for a variety of different AMR and non-AMR metering applications. Itron CENTRON® and SENTINEL® solid-state meters lead the electricity metering market thanks to the advantages of solid-state architecture, reliability and low-cost manufacturing. These meters read more accurately, record lower levels of energy consumption, resist tampering, and communicate with various automatic meter reading technologies.

Related Terms Net Metering, Smart Meters


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Meter Data Acquisition Terms


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Advanced Metering Infrastructure (AMI) Definition A comprehensive utility metering and communications system built on bi-directional communications and open standards, and offering functionality beyond AMR such as demand response and integrated turn on/off. AMI consists of four main components:

• A smart meter able to collect and store electricity interval data for its own service type plus interface with and collect and store data from other devices such as other meters and home gateways. It can also initiate and respond to two-way communications with the utility.

• A home gateway device able to collect data from, communicate with and control various energy-using appliances throughout the home such as air conditioners and hot water heaters. A home gateway also has two-way communications with the utility.

• A data collection network that provides bi-directional communication of data and commands between the home and the utility. The collection network can be publicly or privately owned and can operate using open and proprietary standards.

• An enterprise meter data management (MDM) system that provides a single, scaleable repository for metering-based data along with standard interfaces to other utility systems such as CIS, OMS, GIS, and workforce management.

AMI systems also support advanced capabilities such as load control, Time-of-Use and Critical Peak Pricing, and outage and restoration reporting.

Relevance Energy markets such as Ontario and California have begun programs known colloquially as AMI, without a clear definition for AMI. Additionally, regulatory bodies in these markets and others are applying pressure to evaluate and adopt AMI systems as ways to reduce demand and increase reliability and customer service. Many metering, AMR, and utility software companies label their current products as AMI without a clear definition of what this means.

Best Fit Several factors need to align to make AMI a best fit for a utility. The utility must serve a market sufficiently large enough to bear the cost of implementation. The regulatory climate in the market needs to support recovery of the costs required to implement AMI. Most markets promoting investment in AMI are experiencing energy supply and/or delivery system constraints that warrant implementation of AMI capabilities such as load control and outage reporting. As with many things, what is considered advanced today will become more standard as time progresses.

Real World Utilities such as Pacific Gas & Electric, Portland General Electric and San Diego Gas & Electric have already released requests for quotation on AMI systems. Utilities in Ontario are also exploring AMI initiatives. With every request for quotation or proposal, the definition and perception of AMI shifts.

Itron Solutions Itron already offers fixed networks built on open standards that communicate with a wide variety of public access networks. Itron will be enhancing its line of solid-state electricity meters and network architecture to support the bi-directional communications required of AMI systems. Itron also already offers the advanced software that enables many of the benefits offered by AMI.

Related Terms Advanced Network, Critical Peak Pricing, Demand Response, Fixed Network, Interval Data Collection; Load Control, Meter Data Management, Open Standards, Smart Metering, Two-Way Networks


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Advanced Network Definition Advanced networks possess the flexibility to communicate using multiple protocols and communications networks. These networks have standardizations of technologies to expand the capabilities of emerging communications standards.

Relevance Utility deployments of various networks continue to grow, as does the definition and deployment of network communication technologies. It becomes inevitable and desirable to make various networks work with various communication technologies.

Best Fit Advanced networks work best in places where choices exist for communication methods. This tends to be more developed urban and suburban areas.

Real World Large utilities that have a variety of needs within their service areas and a variety of communication technologies available to meet those needs tend to be the users of advanced networks.

Itron Solutions The Fixed Network collection system communicates between the collector unit and the FN Collection Engine using a wide area network. This can be a public network, such as an IP-based cellular network, or a private network operated by the utility. Multiple network communication paths can be configured as one system. The Fixed Network supports multiple IP-based WAN communication options such as:

• GPRS • PSTN (Public Switched Telephone Network) • Ethernet • Fiber optics • iDEN • PCS • BPL • Private

Itron products and solutions such as ServiceLink, C&I Network, Gas C&I Network, MV-90 xi, Residential Energy Management and load control/curtailment all make extensive use of numerous advanced networks.

Related Terms Fixed Network, Mesh Network


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Broadband Over Power Line (BPL) Definition Broadband is a type of data transmission in which a single wire can carry several channels at once. Cable TV, for example, uses broadband transmission. Electricity providers can use BPL technology to transmit data over the power lines that they already have in place, by using a system of signal injectors, repeaters, and extractors that avoid interference at the distribution transformer. The frequency of BPL signals is much higher than that of traditional Power Line Carrier systems.

Relevance Utilities are looking to maximize the return on investments in infrastructure. Regulators are looking to provide more services to consumers. Consumers continue to demand and use increasing levels of power and data services. These two forces are driving increased interest in broadband over power line (BPL) solutions.

Best Fit BPL provides utilities with an opportunity to leverage their existing investment in power lines. By partnering with an Internet service provider, they can offer broadband Internet access to customers through a separate device on the customer’s premise. (Providing broadband communications through the electricity meter is not currently economical.) Regulators are hopeful that BPL can also help bring broadband Internet access to rural customers who are currently underserved or ignored by more traditional broadband Internet providers such as telephone and cable companies.

Real World Many IOU’s are considering what BPL can do for their utility and are interested in leveraging this technology. Duke Power is one of many utilities that are engaged in BPL pilots. Cinergy provides commercial BPL to end use customers. With the Cinergy system, customers can receive high-speed Internet access by plugging a small modem into nearly any electrical outlet in their home. However, commercial viability for BPL has not yet been proven.

Itron Solutions Itron’s fixed network is a flexible, scalable solution designed to meet utility needs, including the ability to utilize BPL to return or “backhaul” meter data from the network to the utility head-end system. Itron meters do not have BPL capability at this time.

Related Terms Power Line Carrier, Two-Way

http://www.webopedia.com/TERM/b/channel.html


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Fixed Network Definition A permanent, non–mobile system typical composed of meters, transmitters/receivers, communication systems, and host system. Fixed networks can be used for automatic meter reading (AMR) plus other relevant applications. Data is collected from a given population of meters without dispatching meter readers or vehicles. Network communications technology varies between networks and network manufacturers.

Relevance Through regulatory and competitive pressures, utilities are being pushed to provide more services, more savings, and more efficiency in the delivery and use of energy and water. Fixed network technology can generate, gather, and deliver the granular, more frequent data necessary to support these new efforts.

Best Fit Fixed network technology excels in a number of areas and situations for residential, C&I, and sub-metering data collection. It’s fair to say that most, but not all, fixed network technologies are harder to cost-justify in sparsely populated areas. (Fixed networks that transport electricity metering data over existing power lines are the cost-effective exception in sparsely populated areas.) Fixed Network deployments are also driven by market and regulatory changes enabling retail competition, customer choice among energy providers, time-sensitive pricing, demand response, etc.

Real World Fixed network technology currently serves primarily electricity and water utilities, and large electricity, gas and water consumers. Different kinds of networks are appropriate for different business needs including degree of meter access, frequency of data, data collection requirements, level of customer service, and dynamic or time-sensitive pricing. Different customer types and densities are best served by different network technologies. Radio frequency (RF) networks, including mesh networks, work best with dense customer populations. Areas with few electricity customers can be served with PLC fixed networks. C&I customers, low in number but high in consumption and value, justify the higher cost for full two-way communication.

Itron Solutions Business drivers should determine if a fixed network is necessary. One size does not fit all. Frequently, a hybrid solution is most appropriate. Itron provides several fixed network solutions: Fixed Network 2.0, Water Fixed Network, C&I Network, and Gas C&I Network. In addition, MV-90 xi gathers data over a variety of communication systems. For some organizations, mobile AMR will often be the right solution for a given set of business drivers. Mobile collection also provides a low-cost starting point for eventual migration to a fixed network.

Related Terms Advanced Metering Infrastructure, Advanced Network, Mesh Network, Power Line Carrier, Two-Way Networks


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Head-End System Definition The head-end system receives the stream of meter data brought back to the utility by an AMR system. Head-end systems may perform a limited amount of data validation before either making the data available for other systems to request or pushing the data out to other systems. Head-end systems may also perform a limited set of data management functions for such activities as route management, outage detection, and on-demand reads.

Relevance As utilities acquire or expand AMR capabilities, they need systems to accept the increased stream of meter data coming in. Many AMR vendors say that they offer a head-end system, but not all vendors or systems are equally proficient.

Best Fit A head-end system works best as part of an AMR data chain, especially if it passes received data on to a full-fledged meter data management system.

Real World The numerous utility customers using mobile or fixed network AMR solutions have a head-end system for receiving meter data.

Itron Solutions Itron’s Network Collection Engine is one example of a head-end system for AMR solutions. Itron’s handheld and mobile meter reading systems including MV-RS, Premierplus4, and Integrator are other examples of head-end systems.



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Interval Data Collection Definition For purposes including load research, demand response and on-demand reads, meter data is frequently collected in hourly or even 15-minute intervals. Short-term storage of this interval data takes place before the system communicates the data to the utility. In general, interval data can be collected at the meter, or at an intermediary spot such as the fixed network collector unit that reads the meter’s output. Finer resolution of data in smaller time increments requires communications systems that can transmit the data without bogging down.

Relevance Interval data – that is, data collected in frequent time intervals – can pile up quickly enough to make its collection and storage a major requirement of AMR systems, and a major decision point for AMR technology producers and consumers alike. This is especially true where data from multiple collections systems need to be brought together for a single utility or activity.

Best Fit Interval data collection fits best in systems where customers are collecting frequent data to support additional services and functions such as outage detection, load control, forecasting, distribution system optimization, various time-differentiated rates, and customer choice or retail competition.

Real World Myriad solutions exist for collecting interval data, especially for C&I electricity customers. Communications systems servicing interval data collection must be robust enough to transmit large quantities of data.

Itron Solutions Itron solutions use several methods of collecting interval data. Itron fixed network solutions collect interval data from Itron standard single phase or polyphase solid-state meters through the use of our interval data message (IDM) protocol and passes this data to the collector unit. Itron electric and gas C&I network solutions store the interval data at the meter before delivering it to the head-end system. MV-90 xi collects interval data directly from commercial and industrial metering points.

Related Terms Head-End System, Meter Data Management


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Mesh Network Definition Full mesh topology occurs when every node has a circuit connecting it to every other node in a network. Full mesh is very expensive to implement but yields the greatest amount of redundancy, so in the event that one of those nodes fails, network traffic can be redirected to any of the other nodes.

Relevance As utilities become more interested in AMR and fixed network technologies, they are becoming educated in matters of network topology. One topology used with fixed network AMR, the mesh network, is receiving attention because of some inherent benefits including redundancy. It’s useful to utilities and regulators to understand the mesh topology and its characteristics, as well as those who seek a “plug and play” solution. Mesh networks deliver a high level of redundancy, but with increased redundancy also comes increased signal latency, data management, and required bandwidth. Partial mesh topology is less expensive to implement and yields less redundancy than full mesh topology. With partial mesh, some nodes are organized in a full mesh scheme but others are only connected to one or two nodes in the network.

Best Fit Full mesh is usually reserved for backbone networks, or networks with fewer nodes. Partial mesh topology is commonly found in peripheral networks connected to a full meshed backbone. For residential metering of electricity, mesh technology works best in areas with dense meter populations.

Real World CellNet (Utilinet MESH), Elster (EnergyAxis) and Tantalus sell mesh network AMR collection systems to a few electric utilities with fairly dense service areas.

Itron Solutions Itron has many years of experience with Mesh Network Technology. Itron’s Electric C&I Network is a mesh network.

Related Terms Advanced Network, Fixed Network

http://www.webopedia.com/TERM/m/backbone.htm


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Power Line Carrier (PLC) Definition Communication of meter data and other utility system data through power lines. PLC technology can be part of two-way systems.

Relevance PLC systems offer electricity and, to a limited extent, combination utilities a way to collect data and communicate using their existing infrastructure. Using existing infrastructure can reduce overall data and communication costs and potentially simplify implementation of fixed network AMR. In some cases, data communications are slower and don’t support some advanced functionality. Understanding the strengths and limitations of PLC technology is crucial in designing utility information systems. PLC is not the same as Broadband Over Power Line (BPL).

Best Fit PLC systems excel in areas with a lower density of electricity customers, particularly rural areas and areas where wireless communications are unavailable or prohibitively expensive to install. It can also be suitable for a backhaul channel. While technically feasible, PLC systems for water and natural gas metering have no significant deployments. PLC systems are not as useful in cases where utilities frequently need high volumes of data.

Real World Hundreds of rural electric cooperatives use PLC systems for meter reading. Investor-owned utilities often use PLC systems to read meters in rural portions of their service areas. In Europe, the number of customers per transformer is much greater than in the U.S. Thus, PLC systems can be less expensive, per customer, than deployments in the U.S.

Itron Solutions Itron believes PLC is a proven AMR technology that serves the niche of low-density, predominantly electric AMR and load control applications. PLC technology can be combined successfully with other AMR technologies to provide a full AMR solution for those utilities serving a range of customer densities within their service area.

Related Terms Broadband Over Power Line, Two–Way


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Real-Time Data Definition Real-time or near-real-time data collection is the ability to collect data automatically on demand, and have the data delivered and analyzed quickly enough to effect monitoring and control decisions. This can be data directly collected from the meter (real-time) or logically derived from data in the database (near-real-time). Real-time or near-real-time data collection would likely be a key component of so-called “Smart Grid Technology.”

Relevance Electricity cannot be stored in the same way that water or natural gas can be. It must be produced, transmitted and consumed in real time. Therefore, it can make sense to monitor and measure electricity consumption in real time or nearly real time.

Best Fit Real-time and near-real-time data is used for advanced functionality such as end user energy management, demand response and load control, wholesale and power exchange transactions, real-time price and index price products in deregulated markets, T&D system monitoring, demand rates, time of use analysis, and forecasting functions.

Real World Some fixed network technologies meter data collection systems can provide real-time or near real-time data electricity consumption. Near-real-time data includes SCADA and weather data that may be updated daily, hourly, or even by the minute. Curtailment programs for C&I customers are an ideal application of near real-time data, as are real-time price rate and time of use rate structures.

Itron Solutions Itron solid-state meters and ERT modules, in conjunction with fixed network AMR, can provide near real-time data. Itron meter data management tools such as Enterprise Edition and MV-90 manage the volume of data generated in near-real time. C&I Network, Gas C&I Network, MV-90 xi, and Curtailment Manager all deliver near real-time data.



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Remote Disconnect / Connect Virtual Disconnect / Connect Definition Disconnecting and reconnecting a customer’s electrical service without accessing the customer’s premises or sending a service vehicle into the field. A hard disconnect — that is, cutting off power to a premise by throwing a physical switch — can be performed remotely, but requires additional specialized equipment at the meter. A virtual disconnect — that is, obtaining an on-demand meter read at the time a premise is vacated or occupied — can be performed remotely through fixed network AMR systems. Virtual disconnect can also include monitoring of any consumption that should not be occurring after disconnect. In addition, some utilities are effectively utilizing mobile AMR systems to perform off-cycle, final reads associated with move-ins and move-outs.

Relevance Interest in performing remote and virtual disconnects is generally driven by the desire of utilities to manage revenue assurance issues in a cost-effective manner. Also, this capability would keep utility employees safer from hazards on a customer’s premise.

Best Fit Areas of high account turnover, such as apartment complexes, areas around college campuses, and premises are frequently delinquent in paying for services. Also, utilities with many areas where on-site collection is considered dangerous may seek remote disconnect capability. Remote disconnect and connect can also present an alternative to pre-paid metering.

Real World Few utilities have deployed or are using hard disconnect equipment. Regulatory and consumer protection/safety issues limit the implementation of remote hard disconnects. In addition, the necessary equipment represents a significant cost. On the other hand, virtual disconnects cannot solve the problems associated with unpaid bills.

Itron Solutions Hard disconnect is needed only for a very small percentage of the population, and carries with it significant risk to the utility due to consumer safety and regulatory concerns. Virtual disconnect can be done via fixed networks that can perform off-cycle reads. Mobile AMR also provides a viable solution for virtual disconnect, by virtue of off-cycle read routes. Itron solid-state electricity meters do not support hard disconnect at this time.

Related Terms Pre-Paid Metering, Two-Way


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Two-Way Networks; Two-Way Systems; Two-Way Communications Definition The ability to send and receive signals in both directions between the head end and the endpoint of an automated meter-reading system. In particular, the ability for either end of an automated meter-reading system to respond to an unscheduled communication initiated from the other end.

Relevance Getting on-demand reads and sending load-control signals constitutes the bulk of many utility’s two-way requirements. These applications are not generally widespread. Having two-way communication to all premises can add a significant economic burden to a network’s overall costs. For networks with fewer, higher-value nodes (such as C&I networks), two-way communications can make economic sense. As energy policy influencers such as California and Ontario adopt programs known, at least colloquially as “Advanced Metering Initiatives” or “Advanced Metering Infrastructure,” it becomes important to understand what type of network communications are possible, desirable, and cost-effective.

Best Fit Two-way networks provide the most benefit to electricity users regardless of meter or customer density. Two-way communications can provide more value for fixed networks serving C&I customers, since typically a utility has a much smaller number of C&I customers compared to residential, and C&I customers provide a sizeable portion of utility load and revenues.

Real World Examples of two-way communications include requesting and receiving on-demand meter reads, issuing remote disconnect commands from the head end, programming the meter’s TOU rates and/or resetting the demand on demand meters, and meters sending outage and power restoration. Polling or wake-up signals sent from the head end to individual meters do not represent strong examples of two-way communications.

Itron Solutions Our C&I networks do have true two-way communications between the head end of the network and C&I meters. On the other hand, our current residential fixed network products feature bi-directional communications across the wide-area network (WAN) between the head end and the network collector units. These are tradeoffs made according to cost-benefit analysis. Not every device needs to communicate to other devices for a network to be effective. This can increase the communication expense tremendously, making a network too expensive to operate. At present, two-way communications between the head end and collector units provides most of the desired features of a true two-way network without the extra cost of enabling two-way communications with individual residential meters. In evaluating fixed-network AMR solutions that include two-way communications, utilities should compare their concrete needs for two-way communications to the added cost.

Related Terms Advanced Metering Infrastructure, Fixed Network, Load Control, Power Line Carrier, Remote Disconnect, Smart Metering


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Unlicensed Spectrum Definition An unlicensed spectrum is a frequency block that does not require a license from the FCC or equivalent governmental agency. The agency monitors wireless communication transmissions and provides permission via licensing for each frequency used. Different frequency levels are divided into spectrum blocks. The agency determines which spectrum blocks it requires a license for and which it does not.

Relevance AMR systems that use radio frequency (RF) communications must comply with Federal Communications Commission rules regarding radio frequency spectrum use. Using unlicensed spectrum for RF AMR systems reduces costs, but has the potential downside of conflicting with other applications using the unlicensed spectrum. On the other hand, using licensed spectrum for RF AMR systems increases the total system cost due to licensing fees.

Best Fit Use of unlicensed spectrum works best for applications where either the chances or consequences of radio signal conflict are minimal.

Real World In the real world, products like baby monitors and remote garage door openers use unlicensed radio spectrum. These devices may or may not be in the same unlicensed band as AMR devices. Usage regulations limit interference.

Itron Solutions Itron RF AMR systems use unlicensed radio spectrum. They are designed to greatly reduce the chances of radio signal collision. Itron’s fixed network technology in “bubble-up” mode uses 900 MHz ISM unlicensed spectrum to communicate between the meter module and the collector unit. The ISM band is an unlicensed, publicly owned portion of the radio spectrum in the 900MHz, 2.4GHz and 5GHz ranges. If a utility uses Itron AMR technology in the “wakeup” mode, the collector unit transmits wake-up tones to AMR endpoints in the licensed band between 952 MHz and 956 MHz. A license is required to broadcast wake-up tones to meter modules operating in the wake-up mode.

Related Terms Fixed Network


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Mobile Workforce Management Terms


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Mobile Workforce Management Definition Mobile workforce management is a business function that covers the creation, dispatch, and tracking of work (scheduled or not) assigned to field technicians. Mobile workforce management systems typically communicate over wireless networks (either public or private), often combined with mapping and GPS technology for real-time status and location tracking. Mobile workforce management automates scheduling of tasks; assignment of personnel based on skill set, location, and availability; and optimized routing of field technicians. Mobile workforce management also provides the ability to integrate regular activity such as meter reading with field service tasks.

Relevance Field service work can be an expensive endeavor for a utility, especially with rising personnel costs such as health insurance premiums. Ensuring that field work is done correctly and efficiently, the first time, saves money. Advancements in communication and computing technologies can be applied to make the field workforce more efficient and effective, thus saving money and providing better quality service. As the utility workforce ages, finding experienced workers will become more difficult. Automating field service tools and management can help ensure deliver of quality service.

Best Fit Mobile workforce management works best with utilities that have at least 20 field workers and operate in areas where communication infrastructure exists to support the communication necessary for staying in touch with the field.

Real World BC Hydro, Xcel Energy and Kootenai Electric Cooperative are three examples of utilities that take advantage of mobile workforce management. However, mobile workforce management from multiple vendors spans a spectrum from installing a single electricity meter to constructing a nuclear power plant.

Itron Solutions Itron’s Service-Link mobile workforce management solution provides the tools to optimize performance of dispatchers and field technicians. Endpoint-Link Pro helps manage the installation of meters and meter modules.

Related Terms Performance-Based Rates


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Meter Data Management Terms


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Meter Data Management Definition Meter data management (MDM) is the ability to ensure the reliability of, and optimize the use of, available data. A full-function MDM solution seamlessly combines data from multiple sources that use a variety of formats and collection schedules.

• It supports incorporation of new data sources through creation of interfaces without requiring changes to the existing MDM application or data structure.

• It provides for safe and efficient storage and security-controlled retrieval of data. • It includes validation, editing, estimation, aggregation, and unit and interval conversion tools to ensure the

reliability and manage the usability of data. • It reports and tracks data sources and versions. • It provides advanced calculation capabilities to support functions such as time-of-use and critical peak

billing determinants. • It enables interface to other utility systems such as customer information, outage management, work

management, and geographical information. It provides flexible and comprehensive reporting.

Relevance Meter data is the life blood of a utility’s revenue stream. However, utilities are finding that meter data can also be applied to transform nearly all aspects of their operations, from forecasting and system design to asset management and regulatory compliance. As the amount and importance of meter data grows, developing tools and methods for leveraging the value of that data becomes critical.

Best Fit MDM finds its best fit in utilities that are collecting meter data frequently and are seeking to apply that data widely throughout their operations. However, all utilities need some form of management approach for meter data.

Real World MDM spans all sizes and types of utilities.

Itron Solutions Itron provides a range of MDM solutions. Itron Enterprise Edition offers an enterprise-wide meter data management solution for interval, register, and event data, while Itron MV-90 xi manages interval data from complex metering devices.

Related Terms Advanced Metering Infrastructure, Head-End System, Interval Data Collection


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Meter Data Applications Terms


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Leak Detection Definition Leak detection combines data from meters installed at the customer’s premise and on the water distribution system with software that analyzes the data from the meters.

Relevance Water utilities can lose three, four, five percent of their water — or more — to leaks in their distribution system. Water lost to leakage is money lost, as well as a waste of a precious resource. Aside from the lost revenue of water that goes unbilled, there’s also the cost of purifying and pumping water that is never delivered to a customer. But with so much of a utility’s distribution network out of sight underground, finding leaks can be difficult and expensive.

Best Fit Leak detection provides the best return on investment for water utilities operating large and/or aging distribution systems.

Real World There are many active and passive devices on the market to help end-users detect water leaks. Utilities have some tools, such as geophones, to help detect leaks. However, there are few system-wide leak detection tools currently available to utilities that draw on metering-based consumption data to detect leaks.

Itron Solutions Itron’s water meter endpoints for Water Fixed Network include the ability to check for periods of minimal flow. Flow levels and time frames for checking are programmable. If water flow never drops, that indicates constant flow and a possible leak. Itron also provides a Leak Analysis software solution to water providers. This software compares the water flow at distribution nodes to the water metered at premises served by the distribution node, and identified discrepancies in the amounts.

Related Terms Outage Detection and Restoration, Revenue Assurance


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Load Forecasting Definition Load forecasting is the estimation of electricity or natural gas consumption at some future time. Forecasts can predict demand minutes ahead to years into the future.

Relevance Forecasting future need for electricity or natural gas is a cornerstone to reliable and affordable energy supplies. Forecasting helps ensure resources are fully available and utilized. This is especially important for electricity, which cannot be stored the way natural gas can be. Forecasting helps utilities avoid purchasing extra energy on spot markets, and building additional generation capacity to meet peak demand situations. It can also help utilities reduce or eliminate penalties associated with the settlement process. With forecasting, utilities can schedule maintenance of infrastructure based on forecasted load. Large energy consumers can use forecasting to manage their energy costs in situations where wholesale prices are passed along.

Best Fit It’s hard to think of a utility or other energy-related entity that can’t, or doesn’t, benefit from some aspect of forecasting. Perhaps the only barrier is having enough resources, staff, and customers to manage the complexity of forecasting solutions and derive the value from them.

Real World Forecasting plays myriad roles in the real world: capital expenditure planning, system design, peak load management, revenue planning, regulatory compliance, system and market operation, customer demand management, seasonal forecasting, and more.

Itron Solutions Itron is the industry leader in forecasting solutions and expertise. Itron forecasting solutions are built on the MetrixND® forecasting engine. Itron’s solutions include short-term forecasting, long-term forecasting, retail forecasting, delivery point forecasting and financial forecasting. Itron also provides complete forecasting consulting services.

Related Terms Load Profiling, Revenue Forecasting


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Load Profiling Definition Charting the hourly or sub-hourly pattern of energy use for a customer or class or customers. The resulting chart is also called a load shape. Load profiling is also known as load research.

Relevance In a deregulated energy market, the public utility commission may require utilities to perform load profile reads on a certain number of customers in each customer class. This load profiling data is needed to determine rates and usage for other customers in the same customer class. Information from this research can also support other activities such as forecasting and distribution asset optimization.

Best Fit Load profiling makes the most sense for utilities that are looking for statistical insight into their operations and customers.

Real World A large number of energy providers of various sizes purchase or perform load profiling to help them run their business.

Itron Solutions Itron provides the eShapes load profile package for industrial and large commercial customers. Itron can customize load shapes to meet utility’s needs. Fixed network data can supplement or replace traditional load profiling meters. MV-90 xi also performs load profiling.

Related Terms Load Forecasting, Revenue Forecasting


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Outage Detection and Restoration Definition Outages can be detected directly with equipment that supports a “last gasp” messaging capability to notify the utility that the meter or network collector has lost power. Outages can also be inferred by software analyzing data received from fixed networks. Inferred outage detection, on the other hand, is the ability to receive and analyze data returned from meter reading systems to determine that a power outage has occurred. Using software to logically infer the occurrence of an outage can provide a significant savings compared with installing equipment that can physically identify that an outage has occurred. Outage restoration can be signaled two different ways. The meter can send a specific signal stating that the power has been restored, or the utility head-end can infer that the power has returned when it again receives a signal from the meter.

Relevance Electric utilities are under increasing pressure from consumers and regulators to provide reliable service. Ironically, many utilities don’t learn about a service outage until a customer calls them with the news. Detecting outages automatically would speed outage restoration, increasing customer service and revenues. Customers also lose productive and inventory when they lose power. Many utilities have reliability standards that they must comply with and must report on. For some, their reliability performance can be rewarded or penalized.

Best Fit Outage detection is paramount for utilities with severe weather that disrupts power, compliance standards and performance-based rates, or a high cost for outages due to equipment failures. Also, utilities with high field service costs to investigate possible outages can save money with outage detection. Outage detection by inference works best with electric utilities that have the systems to collect frequent meter data.

Real World Xcel Energy uses outage detection solutions to speed detection and restoration. Kansas City Power and Light uses last-gasp from meters for outage detection. Dominion uses mobile AMR collection as an aid to detect power restoration after an outage.

Itron Solutions Itron Fixed Network 2.0 includes the ability to infer power outage from loss of meter signal. The Itron CENTRON and SENTINEL meters and network collectors support a “last gasp” message informing the head-end system that the meter has lost power.

Related Terms Fixed Network, Leak Detection


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Demand Response and Load Management Terms


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Demand Response Definition Utility customers limiting or cutting energy demand based upon an agreement with the utility. Demand response can take several forms. Curtailment programs and distributed generation with large C&I energy users are some forms of demand response; critical peak pricing and time-of-use rates for residential customers are others.

Relevance Utilities are finding that reducing demand can be an easier and more affordable way to balance energy supply and demand than building generating plants, thereby saving money while continuing to supply reliable power.

Best Fit Demand response programs work for utilities with peak load issues seeking economical ways to balance supply with peak demand, and increase system reliability. Utilities undertaking demand response programs should have the advanced metering ability needed to frequently measure changes in energy use.

Real World MidAmerican Energy operates an award-winning curtailment program with many of its C&I customers. Its demand response program can deliver more than 100 MW of demand relief. California State University at Long Beach operates a successful demand response as a way to control energy costs.

Itron Solutions Itron’s Curtailment Management solution provides the tools for one type of demand response. Itron forecasting and complex billing solutions support time-of-use rates, another form of demand response.

Related Terms Advanced Metering Infrastructure, Critical Peak Pricing, Distributed Generation, Load Control, Load Forecasting, Price Response


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Load Control Definition Having and exercising direct control over appliances or equipment at a customer’s premise for the purpose of lowering peak demand. When a utility has control over equipment, it typically does not receive a signal confirming that its load control command has been received and executed. C&I customers can also have controls in their buildings to help control load.

Relevance Lots of little changes can add up to a big shift. Utilities seeking to balance supply with peak demand, and improve system reliability, can make small changes to lots of power-consuming devices in order to lower demand. Adjusting everyone’s thermostat by two degrees for two hours can improve system reliability much more quickly and cost-effectively than building a new power plant.

Best Fit Load control works best for utilities whose service area includes many devices equipped to receive and respond to load control signals.

Real World Dakota Electric is just one example of a utility using direct control of customer’s air conditioning to control load during peak demand periods. Many utilities have installed load control systems over the past 20 years. However, since most of these systems are only one way, it can be difficult to tell which nodes are responding and which are not and what the aggregate effect of the load control initiative might be.

Itron Solutions Itron’s energy forecasting solutions can help pinpoint times when load control can help balance supply and demand.

Related Terms Advanced Metering Infrastructure, Critical Peak Pricing, Demand Response, Load Forecasting, Price Response


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Price Response Definition Using pricing structures that vary more frequently than the standard, single-price or block rate tariff to influence energy consumption. Examples include TOU rates, critical peak pricing and real-time pricing.

Relevance Price can be a motivating factor in changing a customer’s energy consumption habits. Utilities are finding that charging higher rates for energy during periods of peak demand can help lower demand. This helps with both system reliability and cost recovery.

Best Fit Price response works best for utilities that have the means to frequently communicate with, and measure the energy consumption of, their customers.

Real World Georgia Power runs a very successful real-time pricing program for C&I customers. California has recently concluded pricing experiments that have validated the efficiency of price response programs for both commercial and residential customers. A number of utilities use Itron’s Customer Care product to provide their large C&I customers access to price indexes such as PJM and NYISO.

Itron Solutions Itron’s energy forecasting solutions can help pinpoint times when load control can help balance supply and demand. Price response programs require interval meter data and an ability to manage that data, including algorithms to match meter data to specific time periods for billing.

Related Terms Advanced Metering Infrastructure, Critical Peak Pricing, Demand Response, Load Control, Load Forecasting, Price Response


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Time-Of-Use (TOU) Pricing / Critical Peak Pricing / Real-Time Pricing Definition These three terms refer to different ways of varying the price of electricity according to the time when it is consumed.

• Time-of-use pricing involves having a set schedule of electricity prices tied to the time of day or the day of the week (weekday versus weekend and holiday).

• Critical peak pricing involves utilities forecasting a period of peak demand and announcing a short-term price increase to coincide with energy used during that peak period.

• Real-time pricing involves varying the price of electricity in near-real time according to the balance of supply and demand.

Relevance Electricity cannot be stored the way water and natural gas can. Therefore, the time that electricity is used can be important. When demand rises beyond a certain point, there may not be reserves to draw on to meet demand. Utilities can raise prices during high demand times to recover costs and to help lower demand. These pricing mechanisms provide an incentive to use energy when costs are low and demand for energy can be met. They are also a way to postpone or avoid investing in additional power generation.

Best Fit Varying price by time of energy use works best for utilities seeking to lower peak demand. For real-time pricing and critical peak pricing, utilities need a way to frequently communicate with and measure the power consumption of electricity customers. Thus, these pricing arrangements usually focus on C&I customers.

Real World In 2003, Southern California Edison and Pacific Gas and Electric were required by the CPUC to implement a critical peak pricing program for all customers with greater than a 200 KW demand. Niagara Mohawk in New York uses real time pricing with their large C&I customers.

Itron Solutions Itron’s fixed network solutions provide the frequent data collection necessary to support these pricing structures. Itron Customer Care and MV-PBS handle the complex billing requirements of varying rates. Itron forecasting tools and load research can help set times and prices for varying electricity rates.

Related Terms Advanced Metering Infrastructure, Demand Response, Load Control, Load Forecasting, Price Response


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Delivery System Management Terms


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Compatible Units Definition In the world of designing delivery systems, a compatible unit arrangement organizes a utility’s standard components in a hierarchical tree structure to group commonly used components and associated attributes in a logical and usable way. For example, parts and labor information can be combined to create material units; material units and associated properties (e.g., component strength, electrical properties, etc.) can be combined to form assemblies; assemblies and dimensions (e.g., x, y, z relative to pole top) can be combined into construction units; construction units can form structures. In a well-defined compatible unit arrangement, the designer spots or selects high-level units or structures, and the underlying components are automatically incorporated in the design. Elements in the compatible unit structure can be associated with engineering, component, and labor cost properties to automatically determine design costs and create parts lists, construction packages, and crew requirements. With engineering properties associated with compatible units, the system automatically identifies factors such as the voltage, strength, framing geometry, and class of the unit.

Relevance Distribution design can involve specifying hundreds of different parts. Transforming lists of parts into real-life structures that function optimally in all field conditions requires as much organization as art.

Best Fit Utilities looking to standardize, replicate, and optimize designs.

Real World CenterPoint Energy is one of many customers who benefit from using compatible units in distribution design.

Itron Solutions Itron offers a full line of distribution design tools that offer compatible unit capabilities.

Related Terms Design Optimization


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Design Optimization Definition Design optimization is the ability to apply the power of an engineering calculation engine to every distribution design project to determine the best-cost combination of components. Through design optimization, designers can compare alternative design options and select the best-cost option that meets reliability requirements.

Relevance Distribution design can be a distributed process for utilities. Individual distribution designers can have their own idiosyncratic approach to solving problems. Standardization can help with reliability, regulatory compliance, costs, and more.

Best Fit Design optimization works best with utilities that have multiple distribution designers who could benefit from standardization, automation and optimization.

Real World CenterPoint Energy is among many utilities using design optimization for distribution.

Itron Solutions Itron offers a full time of distribution design solutions from the full-featured LD-PRO to the new and nimble Distribution Staker.

Related Terms Compatible Units


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Distributed Generation / Distributed Resources Definition The ability to generate energy at dispersed points within an energy grid or energy transmission system.

Relevance Technology is allowing more users of energy to become producers of energy as well. Utilities, as the operators of the energy distribution system, need to understand where these distributed generation resources are located and how they affect power distribution and consumption. Technology is also allowing for small, cost-effective power generation operations located closer to the point of consumption. Utilities also need to know what generation capacity exists is case additional capacity needs to be online.

Best Fit Distributed generation works well for those commercial and industrial operations that can turn waste or by-products into energy. It also works for areas with peak load issues where customers can be given economic incentives to take load off the system during peak times.

Real World Many dairy and hog farm operations generate power using animal waste as a fuel source.

Itron Solutions Itron’s EEM Suite provides tools for managing distributed generation.

Related Terms Net Metering, Smart Grid


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Distribution Asset Optimization (DAO) Definition Applying data analysis to optimize the deployment, maintenance and reliability of electricity distribution assets such as transformers.

Relevance Distribution costs rank near the top in utility budgets. Failures in the distribution system can disrupt service to many customers simultaneously. It makes sense to optimize distribution assets to get peak performance for the lowest possible cost. Without DAO, utilities often spend extra money to maintain overly-conservative capacity margins in their distribution system. DAO can also help utilities identify and fix reliability risks before they turn into outages.

Best Fit DAO fits best with utilities that need improvements in their distribution system and have already made investments in meter data collection, design systems, GIS systems, and outage management systems. This is especially true for utilities that are experiencing a high percentage of equipment failures.

Real World Xcel Energy and Oklahoma Gas & Electric are two utilities that have benefited from DAO. In their first year of DAO implementation, Xcel Energy saw a 25% reduction in the occurrence of outages due to equipment failures and an accompanying 5% reduction in customer calls.

Itron Solutions Itron Distribution Asset Analysis (DAA Suite) is a decision support system that adds strategic value to investments a utility has already made in meter data collection, design systems, GIS systems, outage management, and SCADA data systems. DAA Suite combines existing data from these arenas into a precise, comprehensive, and predicative system that can increase asset utilization and reliability while reducing capital spending.

Related Terms Design Optimization


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Gateway Definition A device that handles communications between the utility and devices on the customer premise such as thermostats, water heaters, and pool pumps. Gateways offer two-way communications, and often the ability for customer to override the utility’s load control signal. Gateways overcome the limitations of one-way load control by sending confirmation signals back to the utility. Web-based software allows customers to see the status and effects of load control actions.

Relevance As utilities investigate exercising direct control over devices in their service area as a way to manage consumption, they are finding that the communication burden can be more than even the smartest meter can or should control on its own. A separate device to handle these communications could be advantageous.

Best Fit Deploying gateways makes the most sense for utilities serving fairly large populations and seeking to temporarily control consumption as an alternative to increasing generating capacity.

Real World Many vendors and utilities offer gateway products to help educate consumers about use and to help control devices. However, gateways can be expensive, costing $450 - $600 per premise.

Itron Solutions Itron does not provide gateway appliances. However, Itron solutions interface with gateways, and can provide the data needed to drive gateways and the decisions to restrict consumption.

Related Terms Demand Response, Load Control, Smart Metering, Two-Way


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LMP (Locational Marginal Pricing) Definition Locational marginal pricing (“LMP”) is a market-pricing approach used to manage the efficient use of the electric transmission system. Specifically, the Federal Energy Regulatory Commission (FERC) and others recommend LMP as a way to efficiently price electricity in areas where transmission is “congested,” or constrained due to restrictions on the transmission system that prevents the least expensive supply of energy from flowing to that area. As a result, in those areas electricity costs more than it should. Marginal pricing postulates that the market price of any commodity should be the cost of bringing the last unit of that commodity - the one that balances supply and demand - to market. In electricity, LMP recognizes that this marginal price may vary at different times and locations based on transmission congestion. With LMP, market participants will know the price at hundreds of locations on the system. LMP provides market participants an accurate signal of the price of electricity at every location on the grid. These prices, in turn, reveal the value of locating new generation, upgrading transmission, or reducing electricity consumption through demand response programs.

Relevance As regionally-based entities such as Regional Transmission Organizations (RTOs) and Independent System Operators (ISOs) come to manage more and more of the U.S. electricity transmission grid, the question of how to decide where to invest in that grid becomes paramount. In areas of the country that already have developed an RTO or ISO, LMP serves as a means of delivering price signals to areas of transmission constraint so that investment decisions may be made that relieve that constraint. However, LMP is not without controversy as consumers and politicians in transmission-constrained areas will see higher electricity prices.

Best Fit Although LMP has been instituted in most of the existing RTOs and ISOs, other regions of the country are not convinced that pricing by individual “nodes” is the right process for them. For instance, in the West outside of California, where population can be sparse and radial systems are the rule, LMP may not be the best solution. The Southeast also is not convinced that this structure makes sense for them.

Real World LMP is a reality the PJM RTO, ISO New England, New York ISO, and the Mid West ISO (MISO). The California ISO is evolving LMP structures. Texas is considering LMP.

Itron Solutions Itron is not directly concerned with LMP. However, Itron’s IEE meter data management system and MV-STAR systems manage meter data for wholesale market operations.

Related Terms Zonal Forecasting


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Performance Based Rates (PBR) Definition A rate-setting mechanism, typically negotiated between utilities and PUCs, which links incentive rewards or penalties to desired performance results or targets. PBR is a form of rate regulation that provides utilities with better incentives to reduce their costs and improve service than cost-of-service regulation. Typical PBR performance measures include customer satisfaction, number and duration of power outages, cost reductions, investment in conservation technology and demand side management measures.

Relevance Utilities are often rightly concerned with the return on their dollars invested in generation, transmission and distribution. Increasingly, customers want to know that they are getting a return on their investment as ratepayers for publicly or cooperatively funded utilities. Measuring utility performance helps regulators and customers gauge return on their investment.

Best Fit Regulators who want to improve performance in a way that falls outside of the rate base. Areas with reliability issues, low customer satisfaction or numerous complaint calls to regulatory bodies.

Real World Southern California Edison, Bangor Hydro-Electric, and Mississippi Power are just three utilities that are currently participating in performance-based rates.

Itron Solutions Reliability and customer service are two common measurements used with performance-based rates. Itron’s Distribution Asset Manager and Service-Link help improve measurable performance of service delivery and customer service, Several Itron products help increase reliability:

• Fixed Network automatic meter reading, coupled with outage detection, can help utilities detect outages more quickly and thus respond to them more quickly.

• Distribution Asset Optimization helps utilities optimize distribution equipment and predict distribution system performance under various conditions, which can increase system reliability as measured in SAIFI, SAIDI, and CAIDI scores.

• Forecasting helps ensure an adequate power supply under anticipated conditions. • Curtailment Management helps utilities and large energy users manage peak load, which can reduce strain

on the electrical system and increase reliability. Several Itron products help increase customer service and satisfaction:

• Automatic meter reading increases the accuracy and timeliness of billing while eliminating the need for meter readers to access a customer’s premise.

• Customer Care increases customer service by giving energy users information, analytics, and notification regarding their energy use.

• Service-Link makes field service workers more efficient and responsive, helping them resolve customer problems more quickly.

Related Terms Customer Care, Distribution Asset Optimization


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Smart Grid Definition Smart Grid has come to encompass a number of desired characteristics and technologies for an enhanced power grid in North America. Mainly, it would mean a grid that has the ability to be predictive and self-healing, so that problems are automatically avoided. Providing the data generation and analysis necessary to build a smart grid currently looms as a large but possibly necessary endeavor.

Relevance The power blackouts throughout the Great Lakes region in August 2003 highlighted the increasing vulnerability of the North American power grid. Significant investment in grid upgrades and expansion has lagged behind the rapid growth of electricity demand. Applying available and new technologies could make the power grid more efficient and more reliable.

Best Fit Initially Smart Grid will find its best fit in the regional transmission arena. Heavily populated regions such as southern California or New England will most likely see the start of limited Smart Grid functionality in the next 10 years.

Real World Smart Grid is still largely an experimental notion, although some developments in the transmission industry presage the coming of predictive and self-healing capabilities.

Itron Solutions Many of Itron’s data creation, collection, management, and application technology can be applicable to implementing Smart Grid technology, especially at the local distribution level.

Related Terms Advanced Metering Infrastructure, Distributed Generation, Net Metering


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Zonal Forecasting Relevance In the absence of transmission constraints or zone-level settlement calculations, forecasting at a high level (service territory or control area) is sufficient for scheduling energy generation facilities. When constraints are present or when energy deliveries are tracked and settled at a finer level, then it is necessary to forecast at a more detailed level.

Definition Forecasting energy deliveries for a transmission zone or a delivery point (substation or city gate).

Best Fit Operational forecasters who support generation scheduling or energy trading operations need to provide forecasts by zone or delivery point. Transmission system planners need to understand the non-coincident peaks at substation and feeder levels to support investment planning. Retail energy suppliers with a geographically dispersed customer portfolio need to forecast energy deliveries by market scheduling zone.

Real World Independent System Operators typically forecast hourly or sub-hourly loads at the transmission zone level. Cooperatives that are not covered by full requirements contracts forecast hourly loads at the delivery point. Transmission (and delivery system) planners who need to understand the long-term loads at the facility level forecast monthly peaks at the substation and feeder level.

Itron Solutions Itron MetrixIDR Retail forecasting solution supports forecasting by zone, delivery point, market segment, or individual customer.

Related Terms Distributed Generation


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Trans-Product Terms


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Open Standards Definition An agreed-upon method or implementation defining how part of a process, product, or solution should operate. An open standard is made available so that any interested party or organization may provide part of an open system.

Relevance Larger utilities often need several different AMR solutions to address different needs within their service areas. However, all the data from those differing AMR systems still need to be used throughout utility operations. This dichotomy leads utilities to request open systems when evaluating or specifying systems. Open systems often are considered open by virtue of complying with one or more open standards for how the products, pieces, or technologies within the solution will interoperate. Open systems also often have documented and accessible means, such as programming interfaces, for modifying or extending the solution. Note that a product, piece, or technology can be compatible with another product, piece, or technology without being considered open. Something can be compatible without complying with an open standard or providing a means for modification or extension.

Best Fit Open standards fit best within complex industries or markets where multiple products or services from multiple vendors must work together to meet customer needs. Often, a cross-industry steering committee oversees the maintenance of and compliance with an open standard or set of standards.

Real World Itron benefits from writing software applications that utilize the XML open standard for data transfer.

Itron Solutions Itron does not share its standards openly with the industry at this time.

Related Terms Advanced Metering Infrastructure, Open Systems


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Open Systems Definition Technological solutions that consist of several products, pieces, or technologies that can be supplied by more than one vendor. Open systems often are considered open by virtue of complying with one or more open standards for how the products, pieces, or technologies within the solution will “interoperate.” Open systems also often have documented and accessible means, such as programming interfaces, for modifying or extending the solution.

Relevance Larger utilities often need several different solutions to address different needs within their service areas. Examples could be various AMR systems to match different urban and rural customer densities or different billing systems for residential or industrial customers. These various systems might be supplied by different vendors. However, all the data from those differing AMR systems still need to be used throughout utility operations. This dichotomy leads utilities to request open systems when evaluating or specifying systems. Note that a product, piece, or technology can be compatible with another product, piece, or technology without being considered open. Something can be compatible without complying with an open standard or providing a means for modification or extension.

Best Fit Open systems fit with utilities that have large enough service areas or diverse enough service needs that they require different systems that still can work together.

Real World Large, investor-owned utilities such as Southern Company accept that working with multiple solutions from multiple vendors is the only way for them to service all their customers. They look for vendors and systems that can cooperate with others and be easily modified or extended.

Itron Solutions Itron CENTRON® and SENTINEL® meters are open systems in that they accept personality modules designed to a published and available specification. Itron Enterprise Edition is an open system in that it has both a number of Itron product-specific interfaces as well as published APIs for both importing and exporting data. Many other Itron software products also have standard interfaces and published API’s.

Related Terms Open Standards


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Revenue Assurance Definition Assuring that revenue generation and retention is maximized at every possible point along the utility value chain. In other words, making sure that a utility can account for, bill for, and collect on every last bit of service that they provide. Avenues of revenue assurance include

• Efficiently distributing service, making sure that energy and water are not stolen during transmission or lost to leakage or technical line loss.

• Securely providing service, so that users cannot steal services. • Accurately metering delivered energy and water. • Correctly and completely billing for services provided. • Preventing and quickly responding to outages, thereby limiting the amount of consumption lost to outage. • Correctly collecting and accounting for revenues from services. • Fully complying with regulatory requirements, so as to avoid fines and penalties. • Accurately forecasting future demand and revenues, so as to plan for the most efficient delivery of and

collection for services.

Relevance Utilities are increasingly focused on excellent execution of the basics of providing energy and water. Doing so can increase both top-line sales and bottom-line earnings. Industry estimates place domestic administrative loss at <2% of revenues, technical loss at 1-3% of revenues, and commercial loss at 1-3% of revenues. In total, these sources of loss can approach 7% of utility revenues. For any utility, and especially for utilities with revenues in the billions of dollars, this is a large percentage and large amount of money.

Best Fit Everyone can benefit from wringing more revenue out of their existing operations. Utilities today are very concerned about revenue assurance as a way to ensure that they met revenue and earnings targets.

Real World Florida Power and Light realizes millions in revenues each year by investigating stolen and unbilled services. Their investigation of one person helping people tamper with meters uncovered up to $2.4 million of stolen energy over a four year period. Philadelphia Water reports that they have realized $13 million in recovered revenues over four years due to revenue assurance activities.

Itron Solutions Nearly all Itron solutions have a revenue assurance component or contribute to assuring revenue for utilities. Examples include:

• Solid-State Metering: more accurate measurement, plus measurement of lower voltages, means more energy billed to the consumer.

• AMR: improved cash flow from regular collection of actual meter readings, reduced costs from eliminating estimated reads, reduced labor costs for meter reading.

• Tamper / Leak Analysis: increased ability to collect revenue for energy and water that is generated and delivered.

• Forecasting: increased financial performance through accurate sales forecasts, avoiding imbalance penalties, improved regulatory compliance, and more.

Related Terms Leak Detection, Load Forecasting, Solid-State Metering


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About Itron: Itron is a leading technology provider and critical source of knowledge to the global energy and water industries. More than 3,000 utilities worldwide rely on Itron technology to deliver the knowledge they require to optimize the delivery and use of energy and water. Itron delivers value to its clients by providing industry-leading solutions for electricity metering; meter data collection; energy information management; demand response; load forecasting, analysis and consulting services; distribution system design and optimization; web-based workforce automation; and enterprise and residential energy management.

To know more, start here: www.itron.com

Itron Inc. Corporate Headquarters 2111 North Molter Road Liberty Lake, Washington, 99019 U.S.A. Phone: 1.800.635.5461 Fax: 1.509.891.3355

Due to continuous research, product improvement and enhancements, Itron reserves the right to change product or system specifications without notice. Itron is a registered trademark of Itron Inc. All other trademarks belong to their respective owners. © Itron, Inc. 2006

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Common Ground on Industy Terms-An Extended Glossary

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Transcript of Common Ground on Industy Terms-An Extended Glossary