Perspectives

Case Study

Developing a Comprehensive AMI SmartGrid Business Case for a Northeast Utility

Client Situation

In response to a regulatory edict to conduct an AMI Metering Study and a Rate Pilot, our client undertook a 10,000 meter AMI pilot to:

  • Evaluate available AMI and customer energy management technology and communication alternatives
  • Assess the technology readiness of available solutions
  • Assess the willingness of customers to actively manage energy usage
  • Understand the elasticity of energy demand under different rate structures and utilizing different customer end-use technologies
  • Develop a comprehensive business case of a fully deployed AMI SmartGrid solution
  • Bridge was engaged to develop the AMI SmartGrid business case under multiple deployment, technology, and participation scenarios to help our client fully understand potential AMI costs, benefits, and impact

Approach

  • Leveraged Bridge’s Smart Grid Business Case model and our database of cost, benefit, and economic factor values to create “going in” model
  • Worked with SMEs to tailor costs and benefits based on client-specific decisions and factors (e.g., meter costs, telecommunication costs, IT costs, forward energy market prices, consumption and demand elasticity assumptions, operating cost savings)
  • Developed alternative scenarios based on likely variations in key assumptions (e.g., meter cost, meter life, forward energy market price, discount rate, operational savings, demand response program(s) participation rates)
  • Used management/SME working sessions to evolve scenarios and factor-specific assumptions
  • Developed a regulatory model to estimate incremental impacts on capital, O&M, and customer rates

Results

The AMI SmartGrid business case development effort brought stakeholders together from across the organization which increased the awareness and understanding of where and how the AMI SmartGrid solution can impact both the company as well as its customers.

A comprehensive business case of multiple scenarios highlighting the potential for the AMI solution to add value as well as the key business case drivers that drive model sensitivities.