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Request for Proposal No. RA18-OBA-1

AN OPERATIONAL BENEFITS ASSESSMENT OF THE
gridSMART DEPLOYMENT OF AEP OHIO

 

In accordance with the Opinion and Order in Case No. 13-1939-EL-RDR, the Commission is seeking proposals to review the Phase 1 and Phase 2 operational benefits of AEP’s gridSMART project.The consultant will evaluate and recommend an ongoing level of operational benefits to be achieved and recognized in rates as part of the annual rider filing, to the extent such operational savings are not already reflected in rates.

The auditor selected shall:

  • Review Case Nos. 08-917-EL-SSO, et al, 11-351-EL-AIR, et al., 11-346-EL-SSO, et al., 13-1939-EL-RDR, 13-2385-EL-SSO, et al., 15-1513-EL-RDR, et al., 17-1156-EL-RDR, and any other applicable cases, including all applicable testimony and work papers.
  • Evaluate and determine the operational benefits associated with the approved deployment of AMI, DACR, and VVO (including volt-amp reactive power and conservation voltage reduction technology) associated with Phase 1 and Phase 2 of AEP Ohio’s gridSMART project.  The activities should include:
    • Identify operational benefits, which fall into the following general categories:
      • Direct expense reductions;
      • Increases in revenues;
      • Operational efficiencies; and
      • Avoided costs.
  • Quantify the value of operational benefits that have already been captured.
  • Estimate the dollar value and the timing of capturing future operational benefits.
  • Where applicable, complete the review using company-specific data and information related to staffing and operational processes, instead of generalized industry standard data for the operational savings.
  • Review non-financial metrics reports associated with Phase 2 of AEP Ohio’s gridSMART project, which include:
    • AMI Metrics: number of certified meters, AMI meters installed but not certified, certified AMI meter failures, meters salvaged (quantity and monetary value), meters transferred (quantity and monetary value), manual meter reads, successful AMI meter reads, successful AMR meter reads, number of meter readers employed by AEP Ohio and by external contractor (expressed in full-time equivalents), residential bills issued, residential bills based on estimated meter read, customers eligible for disconnect due to non-payment (entire service territory and Phase 2 footprint), disconnections due to non-payment (entire service territory and Phase 2 footprint), power theft cases (quantity and monetary value), call center calls (total), call center calls (related to meter reading), and call center calls (billing complaints).
    • DACR Metrics: circuits equipped with DACR, DACR opportunities to operate, DACR successes, DACR failures, truck rolls related to an outage, avoided truck rolls related to an outage (due to DACR), customer minutes of interruption (CMI) avoided due to DACR, and customer interruptions avoided due to DACR.
    • VVO Metrics: average system voltage, megawatt (MW) and megawatt-hour (MWh) saved through the installation of VVO, and estimated reduction in greenhouse gas from the installation of VVO.
  • Examine the reliability impacts associated with the deployment of DACR. If applicable, review annual reports for System Average Interruption Frequency Index (SAIFI) performance on circuits that have DACR installed and circuits that do not.
  • Examine the energy efficiency improvements associated with the deployment of VVO, which have resulted in reduced greenhouse emissions, including energy reductions and peak demand reductions.
  • Submit a report of findings and recommendations for an ongoing level of operational benefits to be achieved and recognized in rates as part of the annual rider filing, to the extent such operational savings are not already reflected in rates, in the applicable case docket.

RFP Issued:
November 7, 2018

Proposals Due:
December 7, 2018

For further information, please see the Entry in Case No. 18-1618-EL-RDR signed on Wednesday, November 7, 2018.