The Sm art Meter I nitiative in Ontario Michael Angem eer, Chair, - - PowerPoint PPT Presentation

Michael Angem eer, Chair, Electricity Distributors Association ( EDA)

The Sm art Meter I nitiative in Ontario

I ncorporating

• Voice of Ontario’s local electricity

distributors, the publicly and privately

• w ned com panies that safely and reliably

deliver electricity to over 4 m illion Ontario hom es, business and public institutions.

• Leads government/ regulatory representation &

advocacy

• Facilitates industry networking
• Provides information and “industry intelligence” to

members

Electricity Distributors Association ( EDA)

I ncorporating

Onta rio ’ s Distrib utio n I

ndustry

Sma rt Me te ring I

nitia tive

Ro le o f Distrib uto rs in Sma rt Me te rs E

na b ling L e g isla tio n

Mo ving fo rwa rd

Outline of Rem arks

I ncorporating

Ontario’s Electricity Distribution I ndustry

• Employs almost 10,000 Ontarians
• Stimulates economy - $.5 billion payroll
• $1 billion infrastructure investment
• $250 million to shareholders
• $150 million in proxy taxes to government

I ncorporating

Ontario’s Electricity I ndustry

• Ontario (government) responsibilities:
• generation facilities
• regulates consumer electricity prices
• regulates generation, transmission and distribution.
• Ontario Energy Board (province’s regulator)
• independently from government
• OEB regulates all market participants

I ncorporating

Ontario’s Electricity I ndustry

• Local distribution companies (LDC)

legislated in 1998 to operate as for- profit, business corporations

• LDCs owned primarily by municipal

governments (some privately and

provincially owned)

• “Change” is operative word
• Smart meters part of larger industry

reform effort

I ncorporating

Ontario’s Electricity I ndustry

• 90 LDC’s in Ontario
• Estimated gap of 24,000 MGW by 2025
• Equivalent to 80% of current capacity
• Price caps had negative impact
• Inability to bring new generation on line

I ncorporating

Creating a Culture of Conservation in Ontario

• New pricing regimes – residential/ small

business

• Critical role of Electricity distributors
• Smart meters one piece of conservation

pie

• Need to create culture of conservation
• $160 million investment by Distributors
• LDC’s driving force behind conservation &

demand management

I ncorporating

Ontario’s Sm art Meter I nitiative

• Government target: 4.5 million meters

( 2010)

• 800,000 installed by 2007
• Consumers able to respond to price

signals and manage costs

• Price plan adjusted bi-annually by the

regulator

I ncorporating

Ontario’s Sm art Meter I nitiative

Distributors responsible for:

• Purchasing
• Owning
• Installing
• Operating
• Maintaining
• Playing central role in implementation

I ncorporating

Ontario’s Sm art Meter I nitiative: Pilot Projects

• Preparedness key to success
• Distributors working closely on solutions
• Allows for greater efficiencies/ best practices
• Test technologies
• Apply vigorous performance measures

I ncorporating

Ontario’s Sm art Meter I nitiative: Pilot Projects

• Pilot projects to examine community, climate &

geographical influences

• Communication systems, meter functionalities,

data standards scrutinized

• Results with government
• Leverage ‘lessons learned’ for implementation

I ncorporating

Ontario’s Sm art Meter I nitiative: Success Factors

1. Distributor expertise/ experience critical 2. Cooperation & timely action of key players

• (government, regulators and distributors)

3. Clear and consistent understanding of responsibilities

I ncorporating

Ontario’s Sm art Meter I nitiative: Legislation

• Electricity Conservation Responsibility Act
• Empowers government on options for

governance, ownership and regulatory structure

• Many details remain to be formulated
• Additional legislation to follow

I ncorporating

Ontario’s Sm art Meter I nitiative: Cost Recovery

• Estimated capital cost = Approx. $1 billion
• Cost recovery central consideration
• Legislation will enable cost recovery

I ncorporating

Ontario’s Sm art Meter I nitiative: Cost Recovery

• More regulatory certainty critical for

distributors

• Cost recovery will reduce credit risk
• Reduced credit burden could lower

borrowing costs

I ncorporating

Sm art Meter I nitiative: Sm art Meter Entity ( SME)

• Specs. released but critical decisions
• utstanding
• Legislation authorizes the Smart Meter

Entity (SME) to collect information and manage data

• Real time access for distributors an issue
• SME role, structure, and boundaries need

clarification

I ncorporating

Sm art Meter I nitiative: Key I ssues Needing Clarification

1. Basic design of a smart meter system/ data pathway 2. Who controls/ own communication assets and functions 3. Responsibilities of the SME

I ncorporating

Ontario’s Sm art Meter I nitiative – Moving Forw ard

• Ontario’s distributors ready to implement
• Legislation is a step forward
• 2010 target ambitious but achievable
• Best results via partnership amongst

distributors, government & regulators

• Success will position Ontario as leader in

SM and conservation