Positive change for the energy consumer (and the utility) will not be realized unless:

• Consumers believe that the smart metering systems and tools work as promised
   
• Consumers adopt the technologies provided for them
   
• Consumers believe that the utilities implementing smart meters are competent, trustworthy, and focused on customer benefits

An effective consumer confidence plan will, over time, confer the capabilities of smart meters and the confidence in utilities implementing them.

NVEnergize
NV Energy is implementing NVEnergize, a strategic Smart Grid project incorporating smart metering and various systems needed to realize benefits to Nevada customers and to NV Energy. Early in its planning phases, the NVEnergize team recognized the need for a well formulated plan to instill confidence in consumers about the new program and NV Energy’s ability to implement such technology to the benefit of consumers. The Department of Energy agreed with this approach and awarded NV Energy additional matching Smart Grid Investment Grant (SGIG) funds beyond their initial SGIG funding to implement a comprehensive Consumer Confidence Plan.

NV Energy’s Consumer Confidence Plan consists of six key steps that, when executed, demonstrate the key elements necessary to instill customer confidence. These steps have been implemented at NV Energy in sequential order as each provides the foundation for the next. Together, they provide a framework that all utilities might execute when implementing transformative smart grid programs.

Step 1 – Security/Safety
As with all information technology systems, the implementation of smart metering creates new opportunities for nefarious individuals to try to breach utility security and compromise utility grid management systems. Utilities are keenly aware that these new security risks should be fully addressed in a comprehensive risk management strategy. To address this, utilities embarking on smart metering deployments are implementing wide-ranging security plans and updating security policies to address identifiable risks. These plans and policies must be flexible enough to monitor and understand both known and unknown risks.

Utilities receiving investment grants through the DOE have created cyber security plans as a part of their SGIG programs. These dynamic and flexible plans provide the outline for security-related activities throughout the utility and are intended to evolve throughout the lifecycle of the smart grid deployment and operations project.

NV Energy’s Cyber Security Plan incorporates existing NV Energy security practices and includes a number of incremental investments in security measures, including third-party assessments, to protect and monitor the smart grid network.

The Cyber Security Plan also addresses security associated with other components of the NVEnergize solution including the Meter Data Management System (MDMS), the Demand Response Management System (DRMS), Home Area Network (HAN) devices and the Customer Portal.

As smart meter deployments have proceeded, public concern about possible public health impacts has increased. Chief among these concerns is the perception that RF emissions from wireless smart meter implementations may somehow be harmful to human health. While this concern is scientifically unfounded and has been addressed by independent analyses and publications, utilities still must respond to the concerns expressed by their customers.

Utilities should use the full breadth of their communications media to reach concerned constituents and provide well founded and supported facts to reduce consumers concerns about these issues. Several states and regulatory bodies have studied smart metering health claims in depth. Many of these study results are available to support the education of concerned utility stakeholders. As part of its efforts, NV Energy employed an independent third-party to validate that the potential RF exposure of their smart meter system is well within allowable FCC standards. Copies of these independent studies and resource materials are available to consumers via email, web or through public outreach events.

Step 2 – Privacy
The protection of customer sensitive data (i.e., personally identifiable information) is also a significant concern to consumers. During the course of typical utility operations, customers provide the utility with private customer information for purposes of delivering and billing for their energy commodity. The customer usage data captured by the smart meter systems should be afforded the same privacy considerations. Private customer information is typically stored in a secure corporate data center that is both physically and logically protected.

This broadened need for privacy demands that utilities have strict privacy policies in place, either implemented proactively or at the behest of a regulatory body that ensures the protection of customer-sensitive data. This must include that personal/private information is not broadcast over the AMI network.

NV Energy takes the privacy concerns expressed by consumers regarding smart grid implementations very seriously. NV Energy is evaluating the type of data collected and how it is secured at every stage of its use in supporting both the utilities internal operations and the enablement of customer programs. In many cases, NV Energy is adding security protections beyond those required by law. This often includes securing some data, whether or not it contains sensitive information, to ensure the most prudent protection of customer privacy.

Step 3 – System Accuracy
Accuracy of energy measurement in North America is governed by American National Standards Institute (ANSI) standards. These standards apply to all meters, including both conventional and smart meters, and were implemented long before smart meters existed. The standards have evolved to increasingly tighter tolerances with the advent of more granular measurement afforded by smart meters.

During meter manufacturing, every electric meter produced is tested to ensure compliance with ANSI standards for accuracy. Prior to accepting a new meter for use on their system, utilities will traditionally conduct first article testing – an industry-standard set of tests that verify compliance with ANSI meter accuracy standards and conformity with the functionality claimed by the meter manufacturer. First article testing is more rigorous than subsequent testing of shipments of meters.

A sample of each meter shipment is re-tested for continuing compliance with ANSI standards for accuracy. NV Energy sample tests a random five percent of all delivered meters to assure confidence in the accuracy of meters deployed. Subsequently, throughout the life of an installed electric meter, ANSI standard accuracy testing is conducted on a periodic basis on a sampling of the installed meters. Selected meters are removed from the customer premise and tested in the utility meter shop to verify accuracy.

Recognizing the potential for increased scrutiny of their new smart meters, NV Energy implemented additional steps to validate the accuracy of these new devices. NV Energy contracted with the University of Nevada at Reno (UNR) to independently test the accuracy of meters. UNR used the National Institute of Standards and Technology’s (NIST) certified WECO¹ test board to test NV Energy’s smart meters against ANSI standards C12.20 class 0.2². UNR tested both smart meters and legacy meters removed during smart meter installation and established an independent reporting process for both new and legacy meter accuracy reporting. Published results have validated that the accuracy of both smart meters and legacy meters satisfies the ANSI standards.

Step 4 – Deployment
Utilities recognize the importance of regular communication with customers in advance of the installation of new AMI enabled electric meters and gas modules. NV Energy utilizes multiple methods of communications, as depicted in the following diagram.

NV Energy introduced the NVEnergize project to the public via a multi-media event. Media and civic leaders from throughout the NV Energy service territory were invited to learn first-hand about the project and were encouraged to share what they had learned in their communities.

NV Energy conducts targeted consumer communications prior to meter installations. Approximately 60 days prior to meter installation, NV Energy presents the concept of NVEnergize and its benefits to consumers scheduled for installation via community events and gatherings. Within 30 days of meter installation, NV Energy provides information to customers about the planned meter installation.

Approximately one week prior to meter installation, NV Energy calls each customer to inform them of the upcoming installation. Immediately prior to the actual meter installation, NV Energy’s installers will knock on the door to notify customers that their meter is about to be exchanged. Finally, upon the completion of each meter installation, a door hanger is left with NVEnergize Resolution Center contact information. NV Energy developed specific processes to address installation issues, including how to handle installation rejections, field installation complications and consumer claims.

Following installation of a meter and/or module, NV Energy conducts a post installation survey to measure the satisfaction of customers with the meter installation process. A portion of all installations are field audited in accordance with preapproved installation specifications to ensure the quality of the installation and to identify any areas of needed improvement.

Step 5 – System Verification
To ensure confidence in the capabilities of the new AMI system, NV Energy employs a system verification process to demonstrate and document NVEnergize system performance. This system verification includes multiple steps and efforts.

Field acceptance testing verifies that the technical, functional, performance, informational, and commercial specifications of the AMI system proposed can be realized as expected. Additional field acceptance testing occurs as new elements of a system are introduced. Included in field acceptance testing is the verification of meter accuracy and of the accurate transmission of usage information via the AMI solution. Tests of functionality are conducted in lab facilities and at customer premises. Automated tests validate system performance metrics over time and include the comparison of manual meter reads with AMI obtained reads for all meters. NV Energy initially conducted field acceptance testing on a population of about 10,000 meters and has since expanded the automated testing of AMI system performance to a larger population to ensure scalability.

NV Energy continues reading AMI-enabled meters manually while comparing pre-AMI readings with AMI-enabled meter readings. Variances in usage between the two types of readings have been investigated and, to date, no smart meter accuracy problems have been identified.

Once NV Energy is satisfied that the NVEnergize solution accurately measures and communicates energy usage, NV Energy transitions meters from billing via manually-obtained meter readings to billing via meter readings obtained via AMI.

Step 6 – Customer Ownership
Once the customer is confident that the NVEnergize system is secure, private, accurate, and deployed properly, the customer is empowered to take on ownership of their energy consumption. Energy ownership is the sixth and final kind of performance required to achieve customer confidence.

Customer ownership is very different from the earlier steps as it requires the customer to take action. The utility must provide a set of tools that facilitate customer action and customers must be motivated to use those tools. The active use of these tools and the resulting energy ownership by consumers develops at varying paces over time.

NV Energy customers have access to the MyAccount customer portal which provides opportunities for energy education and enables various customer actions. To date, more than 50 percent of NVEnergize customers are active MyAccount customers.

This means that they are already experienced at using the tools that NV Energy has made available to them. NVEnergize provides the ability to view load profile information, be alerted when various consumption activity occurs, and gain a better understanding as to how consumers’ actions influence their energy usage. In the future, NVEnergize will introduce various demand response programs and Time Of Use (TOU) rates that test the tolerance for and effectiveness of various pricing signals on energy ownership.

Ultimately, NV Energy plans to verify the achievement of customer energy ownership via surveys and on-premises interviews.

Concerns
As demonstrated in California, Nevada and the City of Naperville, Illinois, a very small percentage of the consumer population can negatively influence the majority and force regulators to implement highly inefficient, “opt-out” provisions. To address this, utilities deploying smart metering systems should be prepared to adapt their consumer confidence planning to deal with potential “opt out” alternatives. This should include frank communications on the cost and benefit impacts of providing “opt out” alternatives for the select few consumers who might request it.

The communications plans should also include a focused educational process that proactively addresses the concerns of those requesting an “opt out” solution. Using such programs, utilities have shown that they are often able to assuage the concerns of some of these consumers.

Conclusion
As part of its open docket regarding opt-out in the state of Nevada, the PUCN investigated the privacy, security, and accuracy of the NVEnergize solution. The PUCN found that “information gathered in this proceeding supports that smart meters are safe, secure, accurate, and reliable”³. NV Energy has successfully deployed more than 700,000 smart meters to consumers and is realizing operational and customer benefits today. NV Energy’s consumer confidence plan plays a key role in this achievement.

About the Author

Jeff Evans is an Executive Consultant at Black & Veatch. He has 20 years of experience in the utility industry with a primary focus on Smart Grid and AMI solutions. He holds a BS in Mechanical Engineering and an MBA in Marketing and Management & Strategy. Reach him at EvansJ2@BV.com

¹ Watthour Engineering Co., Inc.

² Refer to ANSI standard C12.20 for the specific accuracy standards required of each class of electric meter.

³ “Report on NV Energy’s Advance Service Delivery Meter Program”, PUCN Docket 11-10007, February 29, 2012