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Welcome to AEP Texas’ 2005 Competitive Retailer Workshop Jeff Stracener

Welcome to AEP Texas’ 2005 Competitive Retailer Workshop Jeff Stracener Manager of Competitive Retailer Relations. State Leadership. Charles Patton, President & COO. Service Area. 850,000 end-use customers spread out over 97,000 square miles. Competitive Retailer Relations.

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Welcome to AEP Texas’ 2005 Competitive Retailer Workshop Jeff Stracener

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  1. Welcome to AEP Texas’ 2005 Competitive Retailer Workshop Jeff Stracener Manager of Competitive Retailer Relations

  2. State Leadership Charles Patton, President & COO

  3. Service Area 850,000 end-use customers spread out over 97,000 square miles

  4. Competitive Retailer Relations

  5. Competitive Retailer Survey • Areas in which we improved upon last year’s performance: • Easier to reach • Promptness of responses • Dispute resolution • Customer Service Call Center Effectiveness

  6. Competitive Retailer Survey • Areas in which improvement is still needed: • Unexecutable order inquiries • CRR Hotline availability

  7. Question? How big is AEP Texas’ service area? 97,000 square miles

  8. Advanced Metering Installation Request Process Ruben Olvera, P. E. October 18-19, 2005

  9. Definitions

  10. An Existing or New Billing Meter Standard Metering

  11. Advanced metering is an interval data recorder (IDR). An IDR measures and records usage in discrete time intervals throughout the month. Advanced Metering

  12. Meter data output can be either pulse metering or K-Y-Z outputs. Pulse metering is not used for billing purposes. Customers generally choose to install pulse metering for energy management purposes and to monitor energy usage. Meter Data Output

  13. Meter Data Outputs • The following pulses can be made available. • Standard K-Y-Z pulses or kWh pulses. • Var-hour pulses or reactive pulses. • End of Interval pulses (EOI) or Time pulses.

  14. An internal modem is installed allowing the customer or customer’s agent to use software capable of interrogating General Electric KV or KV2 meters to remotely read their meter and download interval data. Remote Meter Reading Access

  15. STEP 1 All requests for Pulse Metering Equipment shall be in writing and must include the following information: (a)  Customer name; (b) Letter of authorization if Customer is other than an Electric Power and Energy end-user; (c) Customer’s authorized representative contact name, if applicable; Request Process

  16. (d) Customer’s authorized representative contact phone number, if applicable; (e) ESI ID; (f) Service address (including City and zip code); (g) Pulse data request e. g., watt-hour, time, var- hour; Request Process

  17. (h) Billing/invoice Information, including: Responsible Party Billing Address (i) If customer is not the owner of the premises which Pulse Metering Equipment will be located, Customer shall represent that company is fully authorized to enter the premises and to perform any reasonable effort necessary to install, repair, replace,or remove Pulse Metering equipment. Request Process

  18. STEP 2 AEP Customer Service Engineer/Account Manager provides ESID number(s) and requests from local Meter Services Supervisor a review of existing metering capabilities at customer’s site. Request Process

  19. STEP 3 AEP Account Manager determines installation costs from tariff filings. Customer may incur additional costs for: Multiple channels Isolation relay is required Installation is non-typical Request Process

  20. STEP 4 Agreement is prepared. Customer signature is obtained. Check made out to AEP is included with the agreement. Meter services orders and installs equipment. Request Process

  21. TARIFF Request for Advanced Metering for a Typical Installation: Fixed Price if existing billing Meter is a standard Meter: $173 Fixed Price if new installation with no existing billing Meter: $ 100

  22. TARIFF Request for K-Y-Z Outputs Only for a Typical Installation: Fixed Price if existing billing Meter is a standard meter: $312 Fixed Price if existing billing Meter is already advanced metering or for a new installation where no billing Meter currently exists: $234

  23. TARIFF Request for Remote Meter Reading Access Only for a Typical Installation: Fixed Price if existing billing Meter is a standard Meter: $488 Fixed Price if existing billing meter is already advanced Metering or for a new installation where no billing Meter currently exists: $410

  24. TARIFF Request for Both K-Y-Z Outputs and Remote Meter Reading Access for a Typical Installation: Fixed Price if existing billing Meter is a standard Meter: $564 Fixed Price if existing billing Meter is already advanced Metering or for a new installation where no billing Meter currently exists: $486

  25. TARIFF Non-Typical Installations of Solid-State Advanced Metering, Providing K-Y-Z Outputs, Remote Meter Reading, or Any Combination of These Services: Cost to be calculated by Meter Services.

  26. Questions?

  27. Quality of Service Credits • As a part of the merger of CSW and AEP, certain Service • Quality Guarantees were established in the Integrated • Stipulation and Agreement (ISA). • AEP will return 3 system performance Credits on the TDSP • to CR Invoice (810_02) beginning December 2005: • Circuit Performance Credit • System Performance Credit • Connect Service Performance Credit • Credits paid in December 2005, in conjunction with implementation of • TX Set V2.1, will be for Service Quality Guarantees on performance for the calendar years 2001-2004.

  28. Quality of Service Credits • Credits due to connect service performance (if any) for Calendar years 2005 through 2006 will be presented at the end of each quarter beginning with the first quarter of 2006 (any credits due for 2005 performance will be paid first quarter of 2006). • Credits due to circuit and system performance for the calendar year 2005 will be presented in first quarter of 2006. • Credits due to circuit and system performance for the calendar year 2006 will be presented first quarter of 2007.

  29. Quality of Service Credits • Quality of Service Credits have no relationship to the regulated tariffs for AEP Texas Companies • Will not be made unless company fails to meet service standards it has voluntarily agreed to meet. • Credits are not based on the amount or type of electric service a customer consumes. • Credits have no relationship with and do not affect companies’ nonbypassable charges to Retail Electric Providers. • Commission has requested a letter of agreement between company and retailers ensuring end-use customer receives the credit.

  30. Circuit Performance Credit Each Utility shall maintain and operate its distribution system so that no Distribution feeder with more than ten customers sustains a SAIDI Or SAIFI value for a reporting year that is among the worst 10% or more than 300% greater than the system average of utility’s feeders for any two consecutive reporting years. SAIFI- System Average Interruption Frequency index SAIDI-System Average Duration Index Credits ranging from $20 for the feeders performing below the 10% standard to $140 dollars for the worst performing feeders. Quality of Service Credits

  31. Quality of Service Credits • System Performance Credit • TCC annual system SAIDI shall be less than 91.94. • TCC annual system SAIFI shall be less than 1.26. • TNC annual system SAIDI shall be less than 52.01. • TNC annual system SAIFI shall be less than 0.80.

  32. System Performance Credit Credits will be paid to all end-use customers for SAIDI and SAIFI performance greater than these targets. It is has been determined that the total credit per customer for SAIDI and SAIFI performance by TCC for the 2001-2004 period will be approximately $ 0.35. It is has been determined that the total credit per customer for SAIDI and SAIFI performance by TNC for the 2001-2004 period will be approximately $ 0.66. Quality of Service Credits

  33. Quality of Service Credits • Connect Service Performance Credit: • 95% of all new service connections completed by the end of the next business day. • -AEP has met this standard each quarter since 2001. • 90% of all standard new construction connections • Completed within 10 business days of all requirements • being met. • -AEP failed to meet this standard in quarters 3 and 4 of 2002 and quarters 1 and 3 in 2003. • -Resulting in 3,921 customers receiving $40 each

  34. Connect Service Performance Credit (continued): 90% of all non-standard (over 1320 feet away from existing service) new construction connections completed within 90 business days of all requirements being met. -AEP failed to meet this standard in quarter 1 of 2003 -resulting in 1 customer will receive $40 Quality of Service Credits

  35. REP agrees to pass through the SQC to the end use customer who is occupying the premise the day the SQC is issued. If a premise has no ROR at the time the SQC owing for the 2005 and 2006 calendar years are calculated, TCC shall incorporate that premise into the pool of SQC accruing to be distributed at the next distribution period. Quality of Service Credits PUC Project No. 30716 Requires AEP to obtain a signed Agreement to Pass Through Service Quality Credits between TCC/TNC and the Retail Electric Provider.

  36. NOW THEREFORE, TCC and [XYZ REP], a REP providing or planning to provide electric service to customers within TCC’s service territory, agree as follows: As set forth in TCC’s Compliance Plan, TCC agrees to issue Service Quality Credits owed to customers under the ISA, as modified by order of the Commission in Docket No. 25157, by utilizing the appropriate Texas Standard Electronic Transaction Codes. Quality of Service Credits Excerpts from the AEP/CR agreement:

  37. Nothing in this paragraph is meant to impose an obligation on [XYZ REP] or TCC to execute a separate agreement for each Service Quality Credit distribution period as long as this Agreement remains in effect. [XYZ REP] agrees to pass through the Service Quality Credits to the end-use customer who is occupying the premise on the day the Service Quality Credit is issued. Quality of Service Credits

  38. Failure to execute this Agreement means that the non-signatory REP foregoes receipt of any Service Quality Credit to which a customer of such REP may otherwise be entitled, and TCC shall incorporate such Service Quality Credit(s) into the pool of Service Quality Credits accruing under the ISA’s system-wide reliability standards to be distributed at the next distribution period. Quality of Service Credits

  39. If a premise with respect to which a Service Quality Credit is attributable has no REP of record at the time the Service Quality Credits owing for the 2005 and 2006 calendar years are issues, and if that premise had a REP of record sometime during the calendar year being measured for purposes of calculating Service Quality Credits, then TCC shall incorporate any Service Quality Credit attributable to that premise into the pool of Service Quality Credits accruing under the ISA’s system-wide reliability standards to be distributed at the next distribution period. Quality of Service Credits

  40. The term of this Agreement shall commence upon the Effective Date and continue until the termination of the ISA, until [XYZ REP] becomes ineligible to serve in TCC’s service territory, or until [XYZ REP] terminates this Agreement, such termination to take effect upon thirty (30) days notice to TCC. Quality of Service Credits

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