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Home My WebLink AboutPACKET Light and Power 1998-01-086- TOWN OF ESTES PARK Light and Power Committee AGENDA January 8, 1998 8:00 a.m., Board Room 1. Automatic Meter Reading Team Recommendations Â° Purchase Hand Held Meter Reading System Â° Purchase Water and Electric Radio Frequency Meters Â° Purchase Power Line Carrier Meters Â° Meter Policy for New Customers 2. Light and Porver Department Connect Fee Â° Update Connect Fee and Include AMR Costs 3. Reports A. Platte River Poiver Authority-No Report B. Financial Report C. Project Updates NOTE: The Light and Power Committee reserves the right to consider other appropriate items not available at the time the agenda was prepared. REM Prepared 12/6/97 Revised 1/7/98 I , 1 1. TOWN OF ESTES PARK Office Memorandum To: Light and Power Committee From: Richard E. Matzke -72.. Z Â·P,v Date: January 7, 1998 Re: Automatic Meter Reading Team Recommendations Attached is the report prepared by the Town's Automatic Meter Reading Quality Improvement Team which will be presented at the January 8, 1998 Light and Power Committee Meeting. Following are the Team's recommendations: Purchase Hand Held Meter Reading Svstem The Light and Power Department requested $25,000 in the 1998 budget for replacement ofthe existing hand held meter reading system. The team recommends purchasing the Itron system with radio frequency remote reading capability from Mountain States Pipe and Supply at a cost of $24,798. Purchase Water and Electric Radio Frequency Meters The Light and Power Department requested $17,400 in the 1998 budget for purchase of electric meters with radio frequency Encoder Receiver Transmitter (ERT) modules and the Water Department requested $15,300 for purchase ofwater meters with ERT modules. The team recommends purchase of 192 electric meters from Hamilton Associates for $14,956 and 100 water meters and one additional Itron Read One field programming device from Mountain States Pipe and Supply for $15,593. Purchase Power Line Carrier Electric Meters The Light and Power Department requested $42,000 in the 1998 budget for purchase of 222 Power Line Carrier (PLC) electric meters to complete the installation of automated electric meters in the Glenhaven area. The Team recommends purchase of 222 Emetcom PLC electric meters from Cannon Technologies at a cost of $41,070. Meter Policy for New Customers The Team recommends that all new customers be provided with remote metering capability where the Town has the technology available for that type of service and that the cost ofthe automated metering be added to electric connect fees and water meter fees. This would increase the $99.80 electric connect fee by approximately $50 for ERT meters and $155 for PLC meters. The water meter fee would increase by approximately $100 from $105 to $205. 1-lA : .1 2 + Future Meter Replacements The cost/benefit study indicates an economic pay back for installation ofERT electric meters in areas where existing meters can be read at a rate of45 meters per hour or less. The Light and Power Department has approximately 3500 existing meters in such areas. The Team recommends that 800 meters per year be replaced during the period 1999 to 2002 beginning with the most expensive routes. The cost of this program would be approximately $70,000 annually. The Team also recommends that in locations where the electric meter is upgraded with remote reading capability that the water meter also be upgraded. The 3500 electric meters located in routes proposed to be upgraded are associated with very few water services. Although the cost/benefit study does not indicate an economic pay back for upgrade ofwater meters by route, hard to access meters can replaced individually with economic benefit. The annual cost ofreplacing 50 meters per year would equal approximately $7,200. REM 1-1B / I METERS READ PER HOUR 66 TO 80 PER HOUR 4% ... 4-.6,/: 56 TO 65 PER HOUR / *r + . 23% t. ~ 20 TO 45 PER HOU 35% A .,6 ... \ 44 0:VT: .?&&....9....1. I fa.. 1, / i @@AL; 1 .' 2 '--'I . i 110$ ..'*21, Rf.7 = - 46 TO 55 PER HOUR 38% 1-2 'T AMR IMPLEMENTATION BOOK METER COUNT METERS PAH 1. SOUTH I 132 20 2. Y I 161 23 3. F.C. I 162 27 4. G.II. I 222 28 5. LV 393 28 6. A.P. II 222 28 7. A.P. I 181 30 8. 7 I 216 32 9. SOUTH II 133 33 10. BIG THOMPSON I 132 33 11. SOUTH III 136 34 12. H.D. II 174 34 13. Y II 244 36 14. BIG THOMPSON II 159 39 15. H.D. I 194 39 16. F.C II 235 39 17. M.L. II 255 42 18. P. I 305 43 19. M.L.I 309 44 20. B.P. II 240 48 21. C.H. II 345 49 22. F.R. I 297 49 23. 7 II 357 51 24. C.H. I 412 51 25. B.P. I 261 52 26. SV I 374 53 27.34 II 374 53 28.34 III 318 53 29.PII 380 54 30.34 I 328 54 31. R III 270 54 32. SV II 445 55 33. BR I 231 57 34. R II 173 57 35. DT IV 115 57 36. R I 234 58 37. FR II 413 59 38. P III 299 59 39. C.H. III 303 60 40. DT II 244 61 41. DT III 185 61 42. BR II 436 61 43. SV III 270 67 44. DT I 240 80 1-3 1 / AMR IMPLEMENTATION (FOUR YEAR PLAN 1998-2001) BOOK METER COUNT Â¥EAR & TOTAL ELECTRIC WATER 1. G.H. I PLC 222 1998 2. HARD TO READ ERT 200 100 1998 522 3. SOUTH I ERT 132 1999 4. SOUTH II ERT 133 1999 5. SOUTH III ERT 136 1999 6. A.P. I ERT 181 1999 7. A.P. II ERT 222 1999 804 8. Y I ERT 161 2000 9. F. C. I ERT 162 2000 10. LV ERT 296 97 2000 716 11. 7 I ERT 165 51 2001 12. BIG THOMPSON I ERT 132 2001 13. BIG THOMPSON II ERT 159 2001 14. H.D. II ERT 128 46 2001 15. H.D. I ERT 145 49 2001 875 PLC= POWER LINE CARRIER ERT= RADIO FREQUENCY VIA ITRON HANDHELDS 1-4 Boudreaux & Jackson, CPA's A Professional Corporation First National Bank Building Certified Public Accountants Estes Park, Colorado P.O. Box 2777 Registered Investment Advisors . Estes Park, CO 80517 Jem, Thorson-Boudreaux Phone: (970) 586-5394 Steve Jackson Fax: (970) 586-0470 December 19,1997 AMR Committee Members Town of Estes Park P.O. Box 1200 Estes Park, Colorado 80517 Dear AMR Committee Members: Attached please find my report on the costs and benefits of automated meter reading. 1 have analyzed the payback time to the Town of various situations. My analysis is based on the number of meters that can be read in one hour under the current manual system. I calculated the costs of the current system and the automated system, arriving at the expected cost savings. Then the payback time to the Town of investing in the new meters for the automated system was calculated. A summary of the results of my analysis is listed on page 1 of the report. A key question to be answered is the length of the payback period that is reasonable. In my estimation, the proper payback period for a strictly financial analysis is 10 years. However, in the analysis I have not valued any of the intangible factors such as customer privacy, accuracy, timeliness of billing, and stress reduction for meter readers. I suggest that when these factors are added to the analysis, the reasonable payback period should be extended to 20 years. The analysis is presented using rates of return on invested funds of the Town of 5%, 6%, 7%, and 8%. Currently, I would estimate the proper rate of return that should be looked at is between 5% and 6%. This is in line with the Town's current return on its investment portfolio. Using a 20 year payback with a 6% return, the radio transmission technology with electric meters only appears to be the best investment. This is especially true for areas where only 45 meters or less can be read per hour. The other technologies do not appear feasible at this time. This is because of the higher cost of the meters. The electric meter only radio technology costs $63 per meter. All of the other meters are $159 or more which results in excessively long payback periods. However, should the price of these fneters come down, then they might be more cost effective. This is especially true for the water/electric meters for the radio technology. If you believe the intangible benefits to the Town and the customers are important, then one approach to a system wide conversion would be as follows. An annual amount would be budgeted for Town investment into AMR technology such that the entire system would be converted over a 10-15 year period. The areas with the slowest manual reading times would be converted first. This approach would have the advantage of allowing you to purchase the meters at hopefully declining prices as the technology becomes more widely used. 1-5 Professional Memberships: American Institute ofCPA's and Colorado Society ofCP.rs AMR Committee Members Town of Estes Park December 19,1997 Page 2 Thank you for the opportunity to be of service to you. I would be pleased to discuss this matter with you further at your convenience. Sincerely, Steve Jâ‚¬Kson, CPA SJ:ie 1-5a . Town of Estes Park Automated Meter Reading Cost-Benefit Analysis Summary of Resul ts December 19, 1997 Pavback in Years Rate of Meters Read Per Hout Return 15 25 35 45 Power Line Carrier Electric Only 5% 10 19 29 none 6t 11 21 35 none 7% 11 24 none none 8t 12 28 none none Electric & Water 5% 16 30 none none 6 %- 17 37 none none 7t 19 none none none 8% 22 none none none Radio Transmission Electric Only 5% 4 7 11 15 69 4 8 12 16 7% 4 8 12 17 8% 4 8 13 20 Electric & Water 5t 12 22 35 none 6% 13 26 none none 7t 14 31 none none 8% 15 none none none 1-6 A.M.R. TEAM SYSTEM UPGRADE COMPARISON STUDY The current Radix Meter Reading System was purchased in 1991 and is in need of an upgrade. Some of those reasons are that the Radix System is not 2000 compatible, the company being from England makes the service of equipment and the replacement ofparts very difficult. Also, Radix is moving its main focus into other areas such as vehicle ticketing. In researching comparable systems we found that Radix and the Itron S)'stem were the two which closely met the Meter Reading Departments needs. The comparison of these two systems is as follows: Radix System Upgrade: $17.623 Upgrade of existing software and hand held hardware 2000 compatible Itron System: $24,388 Off site capabilities: A radio equipped hand held computer. where the meter reader can receive the meter reading from the Street A vehicle based data command unit: a Van in which jou could drive the streets and receive the meter information through a radio signal. A Genesis fixed network, which through pole top repeater transmitters could transmit the meter readings to a central Computer at the Utility billing. Off-site capabilities can create: Reduction in meter reading time of up to 40% Safer work environment for employees from dog attacks, icy roads and walkways, etc. Reading accuracy Timeliness of billing Customer privacy 2000 compatible Leader in the market RECOMMENDATION The AMR Team has determined that the Itron system would most suit current and future demands for the Meter Reading Department. The Radix system upgrade is $6,765 less than the change to the Itron system, but we feel the benefits gained from making this change would more than offset the cost difference between the systems. 1-7 PHASE IN RECOMMENDATIONS 1. Follow the'98 budget - complete Glen Haven area with power line carrier. 2. Work on changing out areas that fall within Steve Jackson's threshold of under 45 meters per hour with ITRON meters. 1999, 2000, 2001, 2002 budget for 800 meters per year. Team to revisit next phase of implementation (approximately $72K per year). 3. All new customers will receive AMR meters (type of meter will be dependent on location). 4. Change out any meters that are requested by customer 5. If any water/electric meters are equipped with an ERT module, change out the other meter when the conversion occurs so that both meters are equipped with the ERT module. 6. By the end of 2002, following this plan, approximately 53% of system will be converted. 1-8 I LD 10 * N N ..... 32 32 32 32 32 32 A com A M 4- O N <D 91-00 5- 4 4 4 Â¢9 4- 1.0 000 000 000000 000000 NC\INNNAI ~CO W r- 1- h < M g g! 9 00<00<00 00)10)10) N~Â·Lohoo 0 00 1 N 4- 0 0 $ 000000 UOUÂ·)1.01.0,0 NooOO NOOCO 1 00 00 00 00 h,-r- 000 ODOM 0 00 w w manbyyr.xls SUMMARY 1/6/98 ELECTRIC WATER REPLACEMENTS AMR MANUAL MANUAL NEW ELECT NEW WATER %MTRS %MTRS 1999 8607 4014 1948 6659 3568 100 22. 1111% 2000 4114 2948 5859 3518 14 49% YEAR CUSTOMERS CUSTOMERS ELECTR~C| WATER ELECTRIC| WATER ELECTRIC W CUSTOMERS CUSTOMERS AMR (E) 2001 4214 3948 5059 3468 17 70% 2002 4314 3418 20.77% 1997 8207 3814 7881 100 3. 1998 8407 3914 1 7459 3618 100 11 TOTAL ANNUALAMR CUMULATIVE TOTAL manbyyr.xls E% 1/6/98 AMR METERS AS PER CENT OF ELECTRIC TOTAL 53.74% 43.83% 1001 Locz OOoz 666L 866L L66L 33.47% %Â£9.Zz 5691' L L 01.-L 60.00% 50.00% 40.00% %00.02 %00*OL 196L6~ - %00.08 1 I r-%00.0 . 0 I ........... 1 1 - -hÂ» 0 1 lit manbyyr.xls MANUAL 1/6/98 Zooz ,001 666L 966t L66L 000* TOTAL MANUAL ELECTRIC METERS .-IL 8000 -- 788~ 7000 - 6000 - 5000 -- - -000â‚¬ 0002 - - -- 000 L I. CA y Â¢ r k:Eâ‚¬'iN:.:EiEktiEE:ALÂ·,:M.&~ E,-1**f:.: I W. 1=%*2* 1 (V t.*39*BE 11 - -- - --- - 0 byyr.xls 1/5/96 20.77% ' %1.1/14 ZOOZ OODE 666L 966L L66k AMR METERS AS PERCENT OF WATER TOTAL 17.70% 25.00% - 20.00% - 15.00% - %00 0 L ~%99*L~ - %00.9 %00-0 /*dit<:/:31 11 1 .. ..... .,,..............Â·Â·Â· Â·)Â·Â·Â·- Â·Â·: Â·r Â·y=& u: .'~U,'Â·~ 1: ., 1.-: .,, Â·.'U' ~~ ~fl~172Â·'C 92 y.~' t~E*-IZC'igi:JGSÂ¥*Â·i r :p--7-7- r .2â‚¬L:: 4/ <20'--â€¢ -1-â‚¬ 2:2 - - *9 â‚¬36 r-,E SE-ttFfyi-R;;; 3*~ â‚¬'12-2&#f'Â¥ > -- :VI-i--- -Â°. 4- - d:721:Uff&197Â· IUM-j=-21*c-Stl.Navo'*-71*.&-%A**1-kj,-eaek ~ Â·-r' 124 6 -â‚¬-2 - .- 9 1,=- ,-'30Â»::::ErÂ®,s My=c : Â·Â·i- -=-94= 62'C:*up:g. 4Â®c.-42,2.-~*'20033 t: :-:-f~'--4-~ t.'*8:443~=:t*--:pk-.tÂ·::.24?' --~2%>.-'1Â·1%~-Q-%44'03gn-Â·Â· .esn:;*U: IT-1-: --Â· Lm_1 1 1.- 6: i ... 1- CD 1 r- 1 0) 0 MANWTR 3500 -- . r .- ~ ZOOZ LOOZ 00oz 666K 966K - -- 0001 -- 009 L TOTAL MANUAL WATER METERS Â£1.-1. 4000 3000 -- 2500 -- - -- 000L 009 .. CONNECT FEE / METER PURCHASES Connect Fee - The team recommends increasing the electrical connect fees and water tap fees to include the cost for AMR meters. The electric connect fee is currently $99.80, it should be increased by approximately $50-$150 (depending on technology used); The water meter fee (3/4") is currently $105, it should be increased by approximately $100. Meter Purchases - Once the decision is made to change the connect fees, begin purchasing AMR meters. 1-14 . TOWN OF ESTES PARK Office Memorandum To: Light and Power Committee From: Richard E. Matzke--72-Z<Â» Date: January 7, 1998 Re: Light and Power Department Connect Fee Update Connect Fee and Include AMR Costs The electric connect fee for new Light and Power services has been $99.80 since the mid-1980's. This fee was intended to include the cost for an average length (125') overhead service drop, standard electric meter and socket, installation cost, and administrative cost to set up the new account. The current costs associated with a typical overhead service are $240 ($75-service drop, labor & equipment-$75, administrative-$15, meter socket-$45, meter-$30) and the costs of a typical underground service are $140 (labor & equipment-$50, administrative-$15, meter socket- $45, meter-$30). The cost ofthe electric ERT meter is approximately $80 and the cost ofthe PLC meter is $185. The Light and Power Department recommends a menu of connect fees depending on the service provided: Overhead Service ERT Meter $290 PLC Meter 395 Underground Service ERT Meter $190 PLC Meter 295 REM 2-1 .. MM IN31SAS 1/6/98 TOWN OF ESTES PARK PURCHASE POWER-DEMAND -0-1995 966 L -0- 000'gL L66 k -1,- 000 AON 100 deS Bnv inf unr Xev\1 Jdv jelAI qe=1 uer 28Â£39Â¥d Loadhist.xls 22,000 - 21,000 20,000 19,000 000'LK 000'9L 000'gl 6 - 000'* L . ..U .. - 1:;0'L;'711 841*li,1 111:wili,14661 ,!11111!1Â®11[4@11,11!ii:"IC; .'i'liliti :44':411 UE*#itilill,il,Tlit##N*Rf#11'1'ilillti'pili!24â€ž.Â®Ijill'0'!11|11{1!00%1~hielli'PI!'41,,l,)1,1,!ili.,~ 11,i.'~.".,'jf k*2231?22*43*~3~*':~4,Â«o.*; g ~ ~ ~ Pr? ~' ' ~ 61 hi~~ | ~Ilit~ !.i~!1Â®~~ 11 ' 1, ~!li rw~,1;?4?2:1!1#,C f F i ,'~1 ilr " ii~11:1:' 'leilihi**WiN#i~?Â¥1~"ilill;, 11111~! 11,1,1.1,i:i:~i~~:~i'1111:'wiwma .:;12 1*fÂ«Â«-*ES#Â£<arry4*EFAFbdwAFFAFY~1~~.~f M.-.----I,%--Idfet,AZZZ*9Rm>RkÂ»ak>kÂ»Â»Â»RÂ»*RNÂ»tatal- .~ E.teÂ»Â»Â°*>~4~ i ~Â·':Â· '~' ' ,~:6AÂ·Â· ,~: i Aâ€ž l;I~ 11'IJ;liT!'?6./'~.'1#~11%4441#184!1:ililliflil"illill,1,11 I ill'I r' dit: Â·~1'(iÂ· !'4111 1.44;11,11:14!:i 41, 1 :.1.; :~1;~4;14.1 : I 1~429.t:lt?.?%**11**Â»92*2:27*~*Â»*Â·1% 4 1 --- 1 - li'*tr:'ir!' 1 !in!-! 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A lilli 0 ~tk.9.4.",<,3 3":1*.3--** ?..t 3.1.~i'.tiÂ»alieÂ«uÂ«â‚¬~ 2; 1 1 . 1,1,1.1 1.,1 9,11. 4 al- > er...9.>.2. r. ~i>~*yoe" -r~1312*42'23~ 2 111 I. ... titÂ·iÂ·-ijacbsumÂ· Â·.tzrbi.371:it~444Â» 0 6 0 l .#. . "" Â·Â·.Â·*tt'Â· 4%*'16Â·'*'7'NWâ€ž*FÂ·'Nt b'Â¥97'<RyÂ·Â·~ 14*Â·veâ‚¬qÂ»Â·h~ 0 Z< < U) l 0 Ul 1 J UJ , Â·Â·1Â· r,1.1 - __Â·Wr .im. - ~ ~ pjÂ·14.12%.Â»f.;%429<* ~~.43'~:~~*3â‚¬~Â·~~~JJ~~f~,I ~ 11 1 0/*wArY*Mmmfiw~Kiw/#pv#:*.:1.Â·r*:~.:i:.10*4.g~ g <C * M lili a. 1 1 1 1 1 C g ($) S31VS AlH.1.NOW Salehist.xi /6/98 01995 966 L 0 L66 L M PO onv inr XeIAI qe=1 ESTES PARK LIG POWER DEPARTMENT LES BY MONTH 9-8â‚¬39Vd 750,000 - 700,000 650,000 -- 000'009 600,000 - -- 000'094 '4 -- 000'004 4 -- 000'09Â£ 550,000 -- 1 1 1- 1 1 1 - . 1 J - ~~. '---E'.4:"~'-.19: "#. '= Ill*#IL[26*Fril,IP,:1: ,--1 -F *EEE-----.~i---12;2*84*-14@~**0*!il#EE~~#-EdÂ·; .Iifk- -mitt ,-i itf ' "Â·Ii 11 -=ilii'111.F. 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IXâ€¢~Â·X*Xâ€¢Â»Xâ€¢Xâ€¢~0Xâ€¢~' 2%93EmmTkS--- C co 0 ($) 93-Ivs 3190 01 XJVEA Salehist.xls 1/6/98 01995 966 L 0 L66 L M oea Bnv unr Xevy idÂ¥ JelAI | 8.13~littYTD| ESTES PARK LIGH POWER DEPARTMENT ELECTRIC SALES 9-82 39Â¥d 7,000,000 6,000,000 5,000,000 4,000,000 000'000'Â£ 000'000'Z - 000'0002 R â€¢ 0. i 966 L 966 L t 'Â·M,11'Ji:''imi'I"'i~''ll, Id''i PÂ©611111**i' 11"1 1. 11'111 fibl-'IPu'lob r.i'14 '*Â·'filli t,66 L 1 5.liN@'#*fat .:7*4 066 L *4{0*2*?:r'M;' ~~~r *4~ 686 L 9 2 - 11.1 L86L *%8' Â·tkkmF'%22*'ME:<:m?33% Z.......0....<*sa':s:**&12*3 986 L t.i~...Il.$831*..MM1M.M#%.W#*>30%~*I~I 986 L t~~*)3%~E~ *86 L b#&1*** 90*%32#26â€ž,<*T *&4~Wa#3.Famagparsvâ€žFi*wA,wei#AME Â£86 L Z86L L86L < 1 086L u . ..... ,>:1; -,3.1.1.1..8;~.>mmie#imphp/,222*2*?#*,4k: O 0 LO ShIBINO1SnO M3N CUSTGROW.xls 1/6/98 ESTES PARK LIGHT A POWER DEPARTMENT ANNUAL CUS MER GROWTH 2-88 39Â¥d 300 250 R 200 -