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Client Name: City of Santa Ana I AMI FEASIBILITY REPORT 6 Strategic Analysis of Systems for Future Development 6.1 AMI IMPLEMENTATION OPTIONS As the City pursues a meter automation strategy, there are several options that can be evaluated in the AMI program. The City can conduct a pilot to evaluate the selected AMI technology or go in for full implementation with a phased plan to evaluate the system in the first year. There is even an option to share the network built by, SoCal Gas (Southern California Gas). SoCal Gas has already built AMI network covering the City of Santa Ana. SoCal Gas under the Water Energy Nexus program of California Public Utilities Commission (CPUC) is offering water utilities to share the AMI network and collect water meter data. Currently this program is being run as a pilot and final pricing for full implementation of AMI is still to be worked out by SoCal Gas. The value of eliminating the multiple meter technologies and meter reading processes in favor of a single metering solution should not be underestimated. The improved management of metering assets and the singularity of business and operational processes and uniformity of solution features across the customer base is strategically and economically beneficial. This reduction in complexity will only become more valuable with time as the AMI solution capabilities and options increase and City takes advantage of these capabilities. To realize full benefits of an AMI implementation, the project should be completed in a short time period. This eliminates multiple meter reading systems such as: manual, AMR etc, with a single AMI system. The resources required to maintain different systems are not required and existing staff can be trained to take over the other jobs related to AMI systems/meters. Another benefit is the elimination of field devices (handhelds and laptops) making it simple to manage day to day business. A major consideration for AMI implementation for the City is providing granular and timely data to the customers. Black & Veatch recommends AMI implementation in a period of 2-3 years to realize full benefits of the technology and have one simple homogeneous solution. 6.2 OPERATION OF BILLING SYSTEM One of the most complex aspects and highest risks with respect to an AMI program is the integration with the billing and financial systems. However, in this case, the integration will be simple as the City will continue with bi-monthly billing for most of the customers and this requires just one meter reading. Even if the City decided to switch to monthly billing, this will not require a major change other than a billing determinant request each month from the MDMS. The billing system (Enquesta) currently receives the monthly read from the existing meter reading system, in the future when AMI is implemented, the same monthly read will be provided by the AMI/MDMS. This will involve an integration of Enquesta with the AMI/MDMS to obtain data as today and will not require major change in the billing system. In distant future, there is a possibility of using Time of Use [TOU) data for billing or for energy conservation programs (to provide incentives to customers), although this would require modifications to the billing system. Black & Veatch perceives low risk in implementing AMI based billing for City due to simple requirements. The high-level impacts on the billing system associated with the AMI project are as follows: BLACK & VEATCH I Strategic Analysis of Systems for Future Development 25 25G-143