BC Hdyro Smart Meters - FNL - RPT

Smart Metering & Infrastructure Program
Program Completion and Evaluation Report
December 21, 2016

December 21, 2016
Table of Contents
1
2
3
4
6
7
8
Executive Summary ........................................................................................... 1

The SMI Program ............................................................................................... 3
2.1 Legislative Context .................................................................................... 3
2.2 Regulatory Context ................................................................................... 4
2.3 Scope ........................................................................................................ 6
2.4 Program Requirements and Timelines ...................................................... 9
2.5 Organization ............................................................................................ 10
2.6 Communications ..................................................................................... 13
2.7 First Nations Engagement ....................................................................... 14
2.8 Security and Privacy ............................................................................... 16
2.9 Safety ...................................................................................................... 19
2.10 Procurement ........................................................................................... 20
Program Risk Management .............................................................................. 22
Program Status and Variance .......................................................................... 28
4.1 Scope Variance ....................................................................................... 29
4.2 Cost Variance ......................................................................................... 31
4.3 Schedule Variance .................................................................................. 33
Project Evaluation - Benefits Realization .......................................................... 36
5.1 Business Case ........................................................................................ 36
5.2 Benefits Realization Framework ............................................................. 38
5.3 Benefits Realized to March 2016 ............................................................ 38
Lessons Learned and Recommendations ........................................................ 45
Financial Closure.............................................................................................. 48
Program Completion ........................................................................................ 49
List of Figures
Figure 1
SMI Program Framework ................................................................. 12
List of Tables
Table 1
Meter Choices Program Participation Breakdown As of

March 31, 2016 .................................................................................. 9
Page i

December 21, 2016
Table 2
Table 3
Table 4
Table 5
Table 6
Table 7
Table 8
Table 9
SMI Program Key Risks ................................................................... 23

SMI Program Unanticipated Risks.................................................... 28
SMI Program Budget and Cost at Completion ................................. 32
SMI Program Schedule .................................................................... 34
SMI Program Benefit Realization to Fiscal 2016 .............................. 39
Theft Detection Benefit, Inception to Fiscal 2016 ............................. 42
Overall SMI Program Business Case NPV Outlook (Fiscal 2016) .... 45
Incremental Operating Costs and Operating Costs Savings to
Fiscal 2019 ....................................................................................... 49
Appendices
Appendix A
Appendix B
Appendix C
Appendix D
Appendix E
Appendix F
Appendix G
Appendix H
Appendix I
Appendix J
Program Document List

Program Budget
Program Operating and Capital Expenditures
Program EAR Revisions
Contract Values Spent Greater than $3 million
Reasons for Commitment of Contingency and Reserve Funds
Program Asset Classes
Program Quarterly Reports Summary
SMI Program Operating and Capital Expenditures by SMI Program,
with Energy Related Benefits (GWh) and Revenues
Glossary

Page ii

December 21, 2016
Executive Summary
The Smart Metering & Infrastructure (SMI) Program was an important, necessary
investment that helped modernize B.C.s aging electricity system. Since 2011,
BC Hydro has installed 1.93 million smart meters more than 99 per cent of
BC Hydro customers have a new meter.
The program delivered the components required under British Columbias Clean
Energy Act (CEA) on-time at the end of 2015 and about $150 million under budget.
Smart meters have delivered $235 million in benefits to BC Hydro customers in the
first five years.
10
The program is a foundational first step in modernizing our electricity system. Some
11
of BC Hydros metering equipment had been in place for more than 50 years
12
providing only basic consumption information. The program allowed BC Hydro to
13
replace existing customer meters with smart meters as well as upgrade the
14
technology and telecommunications infrastructure.
15
The new infrastructure is intelligent and responsive, and provides many benefits.
16
80 per cent;
17
18
Reduced theft: Smart meters have reduced electricity theft by more than
Accurate bills: Ninety-eight per cent of customers with smart meters are
19
receiving automated bills thanks to remote meter reading. This has made
20
customer bills more accurate due to reduced manual meter reads and bill
21
estimates;
22
23
New conservation tools: With smart meters, customers can view their hourly
and daily energy use through their free online MyHydro account;

Page 1

December 21, 2016
Safer system: More than 3,000 pre-existing unsafe meter socket conditions
were repaired during meter exchanges by a certified electrician at no cost to
homeowners;
Enabled distributed generation: Smart meters have laid the foundation for
more widespread use of small scale electricity generation including solar and
wind power; and
Faster outage restoration: Smart meters help crews restore outages faster
after major storm events. BC Hydro can now remotely check meters in an area
to ensure power has been restored, allowing crews to move to the next outage
10
sooner.
11
The Smart Metering Program more than pays for itself through reduced theft of
12
electricity, energy savings and operating efficiencies.
13
The Program was completed at a cost of $779.2 million, approximately $150 million
14
under the original budget of $930 million. The expected cost savings of the program
15
have been embedded into BC Hydro's rate applications since 2012, which means
16
that BC Hydro customers have already received lower rates as a result of the
17
success of this program.
18
At the completion of the program, the business case was updated to reflect the
19
actual implementation costs, benefits realized to date, as well as current
20
expectations and assumptions. The program is now projected to deliver $1.1 billion
21
in benefits by fiscal 2033.
22
Smart meters help customers conserve energy and reduce energy theft. As a result,
23
a significant portion of the project benefits are based on the avoided cost of
24
acquiring new sources of energy supply. This cost has decreased since 2011 as
25
advancements in technology have reduced energy supply costs and as commodity
26
prices have decreased, which has led to a lower rate of forecast load growth.

Page 2

December 21, 2016
The SMI Program
2.1
Legislative Context
In the spring of 2008, amendments to the Utilities Commission Act (UCA) were
made to require BC Hydro to install and put into operation smart meters by the end
of 2012. Subsequently the UCA requirements with regard to smart meters were
repealed and replaced by section 17 of the CEA.
BC Hydro was required under section 17 of the CEA to install and put into operation
smart meters in accordance with, and to the extent required by the ministerial
regulations. The Smart Meters and Smart Grid Regulation was issued by the
10
Minister on December 15, 2010. It was amended on December 21, 2012 so that
11
BC Hydro was not required to install smart meters where it was impractical due to
12
factors such as distance, electromagnetic interference or physical obstructions. As of
13
December 2015, the SMI Program completed the requirements of the Smart Meters
14
and Smart Grid Regulation under the CEA, Section 17 by putting in place a program
15
for theft detection using more than 9,000 measurement points from system devices,
16
implementing energy analytics software to perform energy balancing and
17
implementing a network of WiMAX base station sites and Subscriber Units which are
18
successfully transporting data from nearly one million smart meters throughout
19
BC Hydros service territory.
20
On September 25, 2013, the Lieutenant Governor in Council issued Direction No. 4
21
(B.C. Reg. 203/2013), which provides direction to the British Columbia Utilities
22
Commission (Commission) with respect to implementing the Governments policy
23
that BC Hydro will offer new meter options and related services to eligible customers
24
who choose not to have a smart meter at their premises, and that eligible customers
25
choosing an alternative meter option will have to pay additional charges designed to
26
recover the costs attributable to their chosen option. This offer is referred to as the
27
Meter Choices Program.

Page 3

December 21, 2016
On March 6, 2014, the Lieutenant Governor in Council issued Direction No. 6
(B.C. Reg. 29/2014), which authorized BC Hydro to defer the net operating costs
incurred in fiscal 2015 and fiscal 2016 arising from the SMI Program and net
operating costs arising from Commission Order No. G-166-13 (refer section 2.2).
On March 6, 2014, the Lieutenant Governor in Council issued Direction No. 7
(B.C. Reg. 28/2014), directing that when setting rates for BC Hydro under the UCA,
the Commission must not disallow the recovery in rates of the costs with respect to
the SMI Regulatory Account.
2.2
Regulatory Context
10
The following Commission Orders pertaining to the SMI Program were made:
11
Order No. G-64-09, dated June 11, 2009, authorizing BC Hydro to establish an
12
SMI Regulatory Account regarding actual fiscal 2009 and forecast fiscal 2010
13
SMI Program Operating Costs and authorizing BC Hydro to carry forward the
14
SMI Regulatory Account;
15
Order No. G-67-10, dated April 8, 2010, authorizing BC Hydro to include in the
16
SMI Regulatory Account the actual fiscal 2010 Smart Metering Program and
17
Smart Grid Program operating costs and authorizing BC Hydro to carry forward
18
the SMI Regulatory Account. BC Hydro was also directed to file with the
19
Commission a schedule detailing all deferred fiscal 2009 and fiscal 2010 SMI
20
costs and a revised forecast of SMI costs for fiscal 2011.1 This Order set out the
21
requirements for quarterly updates on all SMI activities2 and required BC Hydro
22
to file with the Commission an application in relation to its Smart Metering
23
Program and Smart Grid Program/Business Plan for the SMI program;3
BC Hydro filed its SMI Regulatory Account - Fiscal 2010 Expenditures Application with Commission on
May 31, 2010.
Twenty-three Quarterly Program Update Reports were filed with Commission. Appendix H indicates the filing
dates of the Quarterly Update Reports.
BC Hydro filed its SMI Program - SMI Program Business Plan with the Commission on December 23, 2010.

Page 4

December 21, 2016
Order No. G-115-11, dated June 30, 2011, authorizing BC Hydro to include in
the SMI Regulatory Account the actual fiscal 2011 Smart Metering Program and
Smart Grid Program operating costs and authorizing BC Hydro to carry forward
the SMI Regulatory Account. BC Hydro was also authorized to accelerate the
rate of depreciation on its existing meters and also to include the increased
amortization incurred in fiscal 2011 in the SMI Regulatory Account. BC Hydro
was instructed to file a schedule detailing all deferred costs in the SMI
Regulatory Account4 and further refined the reporting requirements for the
quarterly updates on all SMI Program activities;
10
Order No. G-77-12A, dated June 20, 2012, to BC Hydros Fiscal 2012 to
11
Fiscal 2014 Amended Revenue Requirements Application approved the
12
deferral to the SMI Regulatory Account of the following: the amount of actual
13
net operating costs, amortization on capital assets, finance charges, and return
14
on equity in relation to the SMI Program from fiscal 2012 to fiscal 2014; and
15
Order No. G-48-14, dated March 24, 2014, issued in compliance with Direction
16
No. 6 authorized BC Hydro to defer to the SMI Regulatory Account its
17
fiscal 2015 and fiscal 2016 net operating costs from the SMI Program. In
18
addition, BC Hydro was directed to amortize specific amounts from the SMI
19
Regulatory Account.
20
Meter Choices Program
21
Order Nos. G-166-13, G-167-13, and G-186-13 dated October 9, 2013,
22
October 11, 2013, and November 18, 2013 respectively, approving the charges
23
related to the Meter Choices Program on an interim and refundable basis and
24
authorizing BC Hydro to include in its existing SMI Regulatory Account certain
25
program costs incurred during the period January 1, 2013 to March 31, 2014.
26
Order Nos. G-167-13 and G-186-13 also set out a regulatory process for the
4
BC Hydro filed its schedule of all additions to the SMI Regulatory Account with the Commission on
March 30, 2012.

Page 5

December 21, 2016
review of BC Hydros Application for Approval of Changes Related to the Meter
Choices Program, filed on October 7, 2013;
Application of Commission Order Nos. G-167-13 and G-186-13;
4
5
Order No. G-50-14, dated March 28, 2014, disallowing a Reconsideration
Order No. G-97-14, dated July 17, 2014, disallowing the Reconsideration
Application of the Commission decision on an application for approval of
charges related to the Meter Choices Program to proceed to Phase 2; and
Order No. G-59-14, dated April 25, 2014, setting the charges related to the
Meter Choices Program on a permanent basis.
10
2.3
Scope
11
BC Hydros SMI Program has been an important foundational step in the
12
modernization of BC Hydros electricity system. To achieve effective program
13
execution and successful implementation, the Program was organized into
14
Releases 0 through 6. The scope of the releases was executed as follows:
15
Release 0 - Architecture and Execution Framework
16
Release 0 established the Program Solution Architecture Governance,
17
Execution Framework, Information Management Strategy, Security and Privacy
18
Strategy, Test Strategy and Telecommunications. An Architecture and Design
19
Council was created, as an authority to oversee the implementation of SMI
20
technical architecture and verify compliance to standards and regulations.
21
Release 1 - Mass Meter Deployment
22
Release 1 enabled mass meter deployment processes by provisioning field
23
personnel with deployment tools integrated with BC Hydro corporate systems
24
and establishing the Deployment Control Centre. Smart meters were deployed
25
at residential and commercial customer premises. Metering telecommunications
26
systems were implemented and deployed. The Automated Data Collection

Page 6

December 21, 2016
System (ADCS) was implemented. A Smart Metering and Network Operations
team was established to support, maintain and troubleshoot meters, collectors
and associated telecommunications network equipment.
Release 2 Billing from Register Reads
Release 2 activities enabled implementation of the Meter Data Management
System (MDMS), along with processes necessary to facilitate customer billing
via automated meter reads. The MDMS supports the use of data (meter reads)
obtained over the air. In addition, Release 2 created technology and processes
to support the local download of data from meters that are not connected via
10
the Field Area Network. The data obtained from the meters, either over the air
11
or locally is used to support customer billing, the energy visualization portal and
12
electricity theft detection.
13
Release 3 In-home Feedback
14
Release 3 delivered a customer portal application, providing timely In-home
15
Feedback on energy consumption, and enabling the infrastructure to support
16
In-Home Display (IHD) such as home energy monitors. The concept of smart
17
meter connected IHD devices being registered and managed through the smart
18
meter telecommunications and IT infrastructure was validated. IHD devices
19
communicate with smart meters to display energy feedback to customers in
20
near real-time. The energy visualization portal (Customer Portal) displays next
21
day and historical energy consumption information with the goal to change
22
customers behavior to conserve energy and save money.
23
Release 4 Capability of Billing from Interval Data
24
Release 4 initiated an interval billing proof of concept without requiring updates
25
to the production environment and or changes to the existing rate structure.
26
This proof of concept was successfully delivered to validate that the MDMS
27
acquired by BC Hydro included the capability for interval billing.

Page 7

December 21, 2016
Release 5 Advanced Telecom and Operational Support
Release 5 implemented advanced telecommunications infrastructure, as well as
operational functionalities in support of meter configuration and firmware
management. Release 5 also enabled on-demand meter reads (interactive
communications), remote meter disconnect and reconnect capability, outage
management system integration, and built an infrastructure to enable migration
of smart meters and the network to an advanced networking protocol, Internet
Protocol version 6 (IPv6).
Release 6 Advanced Theft Detection
10
Release 6 developed the advanced theft detection solution, including
11
distribution system metering devices (SCADA and Check Meters), and their
12
associated applications. Release 6 also implemented the Energy Analytics
13
Solution that combines theft analytics and energy balancing with business
14
processes to automate timely identification of potential revenue losses.
15
Additional supporting applications were implemented, including the Field
16
Investigation Tool, Connectivity Manager (to support GIS connectivity model
17
data quality improvement), and Investigation Case Management software.
18
In addition, the SMI Program implemented Disaster Recovery Capabilities that
19
established duplicates of core SMI components to reduce the impact from a potential
20
future disaster affecting any location that hosts the production instances of SMI
21
infrastructure used to receive and/or process revenue meter reads for customer
22
billing. Impacted applications included MDMS, Open Way Collection Engine, Outage
23
Reporting System and the Network Management System.
24
Meter Choices Program
25
Following an announcement from the Minister of Energy and Mines on
26
July 18, 2013, BC Hydro implemented the Meter Choices Program to offer new
27
options for customers who had delayed their smart meter installation. On

Page 8

December 21, 2016
September 25, 2013, the Government of British Columbia issued Direction No. 4
providing direction to the Commission with respect to implementing Government
policy. On October 7, 2013 BC Hydro filed its Application for approval of charges
related to the Meter Choices Program, offering eligible customers an installation of a
standard smart meter at no cost, or an installation of a radio-off meter, or the existing
legacy meter at the premises for a fee approved by the Commission. On
April 25, 2014, the Commission issued Order No. G-59-14 and set the charges
related to the Meter Choices Program on a permanent basis.
The composition of Meter Choices Program participants as of March 31, 2016 is
10
identified in Table 1 below.

Table 1
11
12
Meter Choices Program Participation

Breakdown As of March 31, 2016
Option
Number of Accounts
Legacy Meter
12,001
Radio-off
771
Total
12,772
13
2.4
14
The elements of the SMI Program that were required by the end of calendar
15
year 2012 as described in the Smart Meters and Smart Grid Regulation, were
16
delivered in Releases 0, 1, 2, 3 and 4 as follows:
17
Replacement of approximately 1.9 million legacy meters with smart meters;
18
Deployment of telecommunication systems required to transmit metering data;
19
Implementation of infrastructure to support in-home feedback options including:
20
21
22
Program Requirements and Timelines
A web portal which displays previous day consumption data to customers

via computer and mobile phone browsers;
Support of an in-home display feedback device; and

Page 9

December 21, 2016
Infrastructure for billing based on interval data as described above in

Release 4.
Additional SMI Program work required under the Smart Meters and Smart Grid
Regulation to be completed by the end of calendar year 2015, was delivered in
Release 5 and Release 6 including:
Deployment of field devices and information technology in support of energy

theft detection;
7
8
Establishment of advanced telecommunications networks; and
Integration of the operation of the smart grid with other BC Hydro operations.
10
2.5
Organization
11
The SMI Program was delivered using resources from BC Hydro along with a
12
number of partners and vendors, such as Capgemini, Itron, Accenture Business
13
Services for Utilities, EMC Corporation and others providing deployment services or
14
technical expertise.
15
The Program was implemented using an integrated (multi-vendor) Project
16
Management Office (PMO) and Program Controls Office.
17
To ensure successful execution of the SMI Program, and to follow best practices for
18
project management processes and procedures, a Program Governance Plan,
19
Program Execution Plan and Program Quality Management Plan were developed
20
and followed.
21
The SMI Program adopted BC Hydros IT Development Standard Process (ITDSP)
22
so that its IT projects were executed following the appropriate System Development
23
Life Cycle practices and were validated by sign-off of deliverables and milestone
24
gates.

Page 10

December 21, 2016
The scope of the SMI Program was defined and delivered in six releases as well as
a foundational Release 0. Each business release was comprised of multiple projects
and delivered by a Release Manager and various assigned Project Managers.
Management of each business release (1 through 6) included:
Detailed project schedules and plans;
Regular status meetings and reporting;
A deliverables tracking process that included a Deliverable Approval Matrix (a
log of defined project deliverables specific for each release) and participation in
BC Hydros ITDSP Program;
10
Work Package Agreements to manage budget and scope;
11
Issues, Risks and Assumptions Registers; and
12
Go-live planning and execution as well as working with stakeholders on

transition to sustainment.
13
14
In addition to delivery of Releases 0 to 6, other Program Elements included:
15
Program Management;
16
Public Relations, Stakeholder Engagement and Corporate Communications;
17
Finance and Regulatory;
18
Security, Privacy and Safety;
19
as well as Support Services:
20
Infrastructure/Environment Management;
21
Contract Management; and
22
Program Reporting.
23
SMI Program Framework, high-level scope and timeline are illustrated below.
Page 11

December 21, 2016
Figure 1
SMI Program Framework
In support of validating compliance to information technology standards, the SMI
Program established a Technology Governance Council.
BC Hydro also put in place an executive level governance structure consisting of:
BC Hydro Board of Directors - accountable for approving any significant
changes to budget, scope and schedule, approving contract awards over
$50 million, and approving any potential draws on the Board reserve;
8
9
10
Executive Project Board - to provide guidance and oversight to project staff and
to the Chief Executive Officer on project strategy as well as other issues such
as regulatory and procurement, as required. The Audit and Finance Committee

Page 12

December 21, 2016
of the Board of Directors assumed the responsibilities of the Executive Project
Board in January 2013; and
Executive Operating Committee to provide direction on operational strategy
and integration and business policies and to recommended contract awards for
approval as appropriate. In the spring of 2011, the full Executive Team
assumed the responsibilities of the Steering Committee.
2.6
Communications
BC Hydro recognized that visiting the homes and business of all customers
throughout the province, to exchange approximately 1.9 million electricity meters,
10
would require a thorough and proactive communications and engagement program.
11
Accordingly, we provided customers, stakeholders and First Nations with information
12
throughout the Smart Metering Program. This included information about how smart
13
meters will help modernize the electricity grid; how customers will benefit from the
14
new metering system; what customers should expect during the meter exchange
15
process; and where they could find more information.
16
BC Hydro communicated broadly about the Smart Metering Program through its own
17
channels and media. BC Hydro channels included BCHydro.com, bill inserts, and
18
customer newsletters. Media channels included information in local newspapers
19
before and during meter installation, public service announcements, radio spots and
20
interviews, and online banners.
21
Engaging with communities, in advance of smart meter installations, was a priority.
22
Engagement efforts included open houses, and meetings with provincial and
23
municipal government representatives, first responders, business associations, and
24
other community groups. In addition, BC Hydros outreach representatives offered
25
face-to-face engagement at the community level.
26
Although the vast majority of customers accepted a new meter, a small organized
27
group opposed the installations. Their main concerns were related to health, privacy
Page 13

December 21, 2016
and safety. Significant effort was required to combat the misinformation spread by
the opponents and to share the facts about the program.
Our commitment to building awareness of the Smart Metering Program and
addressing our customers questions and concerns resulted in the majority
99.9 per cent of customers accepting smart meters as a necessary and beneficial
upgrade.
2.7
The SMI Program deployed smart meters to First Nations On-Reserve residential
and commercial account customers in B.C. First Nations smart meter deployment
First Nations Engagement
10
activities were completed with a high level of successful meter installation and
11
positive engagement results from First Nations Bands. Early in the project
12
implementation, BC Hydro recognized the potential for resistance to smart metering
13
change and developed a distinct First Nations Strategy. The detailed approach
14
addressed challenges through customer engagement tactics and proactive
15
information sharing. The SMI Deployment team developed appropriate First Nations
16
deployment targets as well as detailed plan and reporting requirements to monitor
17
First Nations deployment progress.
18
The SMI First Nations Deployment teams identified, proactively communicated and
19
engaged with First Nations regional and provincial leadership and on-reserve
20
customers. The team set separate First Nations deployment targets that took into
21
consideration their unique environment and requirements. In addition, the team
22
implemented an on-reserve First Nations Ambassador program, dedicated First
23
Nations installation teams and cultural trainers.
24
The following steps were taken to engage, strengthen relationships and successfully
25
deploy smart meters on First Nations premises:

Page 14

December 21, 2016
Chief and council meetings, as well as community open houses were
undertaken to promote, inform and respond to field enquiries from First Nations
provincial and regional leadership and on-reserve First Nations customers,
including explaining the benefits of the smart meter technology and the timing
of the deployment activities;
deployment;
7
8
Nine per cent of Corix meter deployment employees were aboriginal versus a
target of 5 per cent; and
15
16
First Nations customers were informed in a timely manner on upcoming

deployment activities related to their meter exchange;
13
14
Employees and contractors were educated on BC Hydros First Nations

engagement strategy and cultural sensitivities;
11
12
Meter deployment customer feedback was obtained from First Nations

provincial and regional leadership and on-reserve customers;
10
Employment and training of Band members as Ambassadors during
Corix formed an all aboriginal deployment team that specialized in First Nations
smart meter installations;
17
18
Results (as of March 31, 2016) were as follows:
19
The program engaged with 173 First Nations Bands, serviced by

31,955 meters;
20
21
Of these, 97 per cent have had a smart meter installed;
22
Two per cent remain as legacy meters under the Meter Choices Program; and
23
Six First Nations bands are currently refusing smart meters and efforts to gain
24
access to install smart meters are ongoing.

Page 15

December 21, 2016
2.8
Security and Privacy
The SMI Program established a dedicated safety, security and privacy office at the
onset of the project following active and ongoing involvement with industry standards
and policy groups. As a public body, BC Hydro is bound by provincial Freedom of
Information and Protection of Privacy Act to protect customers personal information.
Privacy, security and safety features were key criteria in all developments related to
the SMI Program, including procurement processes. Privacy-by-Design and
Security-by-Design processes were used for all design, development and
implementation activities, and were validated during solution acceptance testing.
10
Privacy-by-design and Security-by-design were also established as key project
11
execution components when the Project Execution Plan was developed.
12
The Security, Privacy and Safety office of the SMI Program developed a Security &
13
Privacy Framework document to guide all development work for the project. This
14
framework was the result of work by a team of security experts who assembled legal
15
requirements, policies, standards and best practices for the end-to-end architecture
16
that SMI was to develop and deploy. This document became the foundational
17
reference for all security architecture and privacy oversight as standards were
18
applied to the SMI Program.
19
The SMI Program established a baseline for Privacy Impact Assessments at a
20
minimum of one assessment for each application, interface, network and device
21
where information used within the SMI Program was in flight or at rest. In addition,
22
Privacy Impact Assessments were completed for all work performed within the SMI
23
scope by contractors, vendors and other entities who would have access to
24
BC Hydro data and become part of the development, test and operating groups that
25
formed SMI. Over 120 Privacy Impact Assessments were completed between 2010
26
and 2015; a body of work that far exceeds the assessment efforts of any other
27
project in British Columbia. Privacy Assessments were completed through a close
28
relationship with the Office of the Information Privacy Commissioner of British

Page 16

December 21, 2016
Columbia who was consulted on numerous occasions and offered advice and
direction about privacy concerns related to SMI work.
To reassure customers of the protection of their information, BC Hydro
commissioned independent white hat hackers to perform system penetration tests.
Details of their efforts were not shared publically, and while some vulnerabilities
were found during various testing efforts, each vulnerability was appropriately
indexed, categorized, prioritized and resolved prior to deployment. The SMI Security
Delivery Team also employed a number of contractors who were experienced in
penetration testing (hacking) and vulnerability scanning. SMI deployed many of its
10
own scanning tools and conducted vulnerability assessments for all of the
11
applications and IT based tools used in the overall solution. In addition, the SMI
12
Program managed security risk through two baseline Governance-Risk-Compliance
13
(GRC) surveys that were completed across the entire SMI interface landscape.
14
These GRC assessments were used to identify and resolve risk indicators over any
15
part of the BC Hydro IT environment, where existing or emerging governance and
16
compliance risks might negatively impact the architecture that SMI was introducing.
17
Itron architecture was submitted to GRC assessments and all risks were catalogued
18
for mitigation management. No High or Critical risks were identified through the GRC
19
assessments.
20
The security delivery team also completed Security Assessment Reports in order to
21
review new technology against the SMI Security & Privacy Framework. The purpose
22
of the Security Assessment Reports was to identify gaps in standards so that SMI
23
Program vendors and suppliers (as well as BC Hydro IT enterprise) could mitigate
24
risks associated with these gaps prior to deployment.
25
The culmination of each type of security assessment was a risk indicator that was
26
used to assess readiness to deploy all systems prior to the go-live date. Security risk
27
indicators taken with all other deployment factors determined whether new systems
28
could be deployed or if they required additional development time.

Page 17

December 21, 2016
In each case, where assessment revealed a defect or gap in standards that
needed to be addressed (separate from any operational or performance defects),
defects were entered into a tracking system where a team of BC Hydro employees,
contractors and vendors addressed deficiencies until each was managed. No
system was permitted to be deployed with a critical defect. All high defects required
mitigation over a short time duration; medium and low priority defects were managed
over longer time frames with an expectation that no security defect would be left
unmitigated.
As a backstop to all deployment work, Privacy approval for each phase of the project
10
was required. No deployment was permitted to proceed without full privacy approval.
11
Privacy gaps were treated with zero tolerance throughout the project.
12
Overall, the Security, Privacy & Safety office of the SMI Program employed a
13
seven-layered approach to managing security and privacy risk as defined, above.
14
These included:
15
1.
Security Architecture Reviews and approval process;
16
2.
Security Assessment Reports;
17
3.
Security Vulnerability Scanning;
18
4.
Security Penetration testing (white hat hacking);
19
5.
GRC Assessments;
20
6.
Privacy Impact Assessments (which also review security controls); and
21
7.
Defects management.
22
The end result of this risk management work has been a leading edge application of
23
security policies, standards and best practices for BC Hydros smart metering
24
deployment with a fully functioning privacy management environment integrated into
25
the solution, by design.

Page 18

December 21, 2016
2.9
Safety
Electrical Safety
Smart meters used by BC Hydro are fully compliant with electrical safety standards
established by the American National Standards Institute (ANSI), Institute of
Electrical and Electronics Engineers (IEEE) and International Electrotechnical
Commission (IEC). BC Hydro's smart meters underwent quality assurance testing
both by Itron, the meter manufacturer, and by BC Hydro.
To alleviate possibility of fires due to old and aged meter sockets, BC Hydro
included meter socket checks during meter deployment. If an installer discovered a
10
problem, BC Hydro offered to fix the problem on behalf of the home owner. Over
11
3,000 customer meter sockets were found to have pre-existing damage including
12
eroded wiring, improper meter socket installations and electrical bypasses and were
13
fixed or replaced by BC Hydro.
14
Radio Frequency Safety
15
Smart meters use radio frequency to communicate data to and from BC Hydro. The
16
radio frequency levels must be compliant with Health Canadas Limits of Human
17
Exposure to Radiofrequency Electromagnetic Energy in the Frequency Range from
18
3 kHz to 300 GHz, as documented in Safety Code 6. As part of the SMI Program,
19
BC Hydro commissioned an independent telecommunications engineering firm to
20
prepare three Safety Code 6 compliance reports. These reports confirmed that
21
BC Hydros smart meters are safe and communicate at a radio frequency level far
22
below the thresholds established in Safety Code 6.
23
Legal Challenges Related to Smart Meter Safety
24
On July 25, 2013, a Notice of Civil Claim was filed against BC Hydro related to the
25
installation of residential smart meters. The plaintiff sought to have the Claim
26
certified as a class proceeding, supported by Citizens for Safe Technology. The
27
Claim was later amended twice to expand the action to include commercial

Page 19

December 21, 2016
customers as well as focus the Claim on the installation of smart meters being a
breach of Sections 7 and 8 of the Charter of Rights.
On July 12, 2016, the B.C. Supreme Court dismissed the application to certify the
suit as class action. This decision follows other decisions by the B.C. Court of
Appeal and the BC Human Rights Tribunal to dismiss legal challenges related to
smart meters.
2.10
Beginning in fiscal 2008 and following the identification of user requirements across
business units, BC Hydro commenced a Joint Solution Design procurement process
Procurement
10
by issuing a Request for Qualifications to assess proponents capability to both
11
provide an end-to-end smart metering solution and assume meaningful operating
12
accountability. Three proponents were selected to participate in the Joint Solution
13
Design stage of the procurement process and offers (solution, pricing, and
14
commercial terms) were submitted by each. Ultimately, it was found that an
15
end-to-end turnkey approach to implementing SMI was not in the ratepayers interest
16
as none of the submitted offers provided BC Hydro with a satisfactory allocation of
17
risks given underlying solution costs. The level of retained risk was reviewed through
18
an independent risk assessment completed by PricewaterhouseCoopers, LLP.
19
The Joint Solution Design approach was subsequently abandoned in favour of a
20
disaggregated procurement framework, wherein each key component of the smart
21
meter system was procured under separate processes, and BC Hydro would
22
contract directly with meter and metering system vendors, software suppliers, and
23
deployment services companies.
24
During fiscal 2011, BC Hydro launched competitive procurement processes for the
25
following key SMI supply and service streams:

Page 20

December 21, 2016
Smart Metering System (RFP 4401): a single vendor to provide the full
end-to-end metering system including smart meters, collectors to consolidate
meter reading data, and the ADCS software application. Itron Canada was
selected as the vendor to supply smart metering supply and services;
Meter Deployment Services (RFP 463): A single services provider to
complete in-field mass deployment of meters. Corix Utilities was selected as the
deployment services vendor;
Meter Data Management System (RFP 546): A packaged software application

that stores the large volumes of meter reading data and ensures that data is
9
10
accurate, complete, and useable before sending the data into BC Hydros
11
corporate systems. Itron Canada was selected as the MDMS vendor; and
12
Professional Services Solution Integrator (RFP 371): A Solution Integrator
13
services company to support the Project Management, IT and integration, and
14
custom software development tasks for the SMI Program. Capgemini Canada
15
was selected as the Solution Integrator.
16
To assist with the above, Partnerships BC was retained to leverage their experience
17
in the design and execution of competitive procurement processes related to large,
18
complex projects. In addition, Mr. John Singleton, Q.C. was appointed by the SMI
19
Executive Project Board to monitor and report on the fairness of these procurement
20
processes. In each case, Mr. Singletons findings were that the procurement
21
processes in their entirety were fair, transparent and concluded without bias.
22
On September 16, 2010 the BC Hydro Board of Directors approved an expenditure
23
authorization request in the amount of $930 million (inclusive of contingency and
24
board reserve) allowing the SMI Program to proceed to the Implementation Phase.
25
SMI Procurement activities continued in fiscal 2012 and fiscal 2013, and focused on
26
the development of the theft detection solution components and theft analytics
27
software including:
Page 21

December 21, 2016
Distribution System and Metering Devices (RFP 906 and RFP 907):
RFP 907 - Transformer Meters and RFP 906 - Distribution System Meter
Devices (DSMD) Feeder Meters. QinetiQ North America was selected for the
provision of meters and software tools as well as training and support for the
installation, operation, maintenance and repair of transformer meters and
feeder meters;
Energy Analytics Solution (RFP 1180): EMC Corporation (and partners SAS
Institute Inc., Bridge Energy Group and Space-Time Insight Corporation) and
Informatica Corporation were selected to license, procure and provide software,
10
hardware and other technologies as needed to meet the requirements for an
11
energy analytics system and provide services required for the implementation
12
and sustainment of that system; and
13
Check Meter Device (RFP1850): Awesense was selected to supply Portable
14
check meters and the provision of software and services including True Grid
15
Insight API Software Licencing and Maintenance, hot stick adapters, USB
16
gateways, and training.
17
A list of major contracts, greater than $3 million, is presented in Appendix E.
18
19
The SMI Program implemented a Risk Management process to identify, assess, and
20
mitigate risks. The risks were managed, monitored, mitigated and transitioned to
21
sustainment. Managing risks was an essential responsibility of the Project
22
Managers, Release Managers and the SMI Program Leadership team. The Program
23
Controls Office validated risks, and monitored timely mitigation and treatment in the
24
SMI Issue and Risk Register.
25
High impact and priority risks were reported to the Executive Project Board, the
26
BC Hydro Executive Team, and the BC Hydro Board of Directors.
Program Risk Management

Page 22

December 21, 2016
Table 2 below presents key risks identified in the SMI Program Business Case and
during SMI Program Implementation. In the majority of cases, the actual
implemented mitigation strategies were consistent with the program plan. In some
cases, additional strategies were deployed as detailed below.
Table 2
SMI Program Key Risks
Risk and Description
Planned Mitigation Strategy
Meter Supply Chain

Risk of markets inability to meet meter
supply chain requirements, and
interdependencies with other vendors.
Emerging Technology
Risk of technology continuing to evolve
resulting in stranded assets.
Actual Mitigation
Procurement evaluation criteria

considered the vendors ability to
meet the timeline.
Incentive mechanisms in place to
align the related suppliers to
deliver on time and on budget.
Significant liquidated damages
included in final contracts to
ensure vendors meet their
commitments.
As planned.
In addition, the Program
implemented robust procurement
processes to select proven
technologies. Studied and
consulted with other utilities.
Engaged with industry standards
groups. Critical path items and
dependencies were reviewed
weekly at all Program levels.
All meter vendors under

consideration in the procurement
process have met minimum
mandatory criteria which included
having sizable deployments in
other North American and
European utilities, and based on
proven technologies.
Technology selection criteria were
designed to meet current and
expected future business needs.
included technology future
proofing to ensure future
business, technical and
operational requirements were
considered.
Where technology risks could still
exist, the successful vendor was
contractually committed to
meeting BC Hydros requirements
by an agreed date. In addition,
they were required to provide full
backward compatibility for
selected products.
As planned.
In addition, the SMI Program
gated functionality releases going
into production environments.
Extensive field trials were
conducted where technology was
emergent. Engagement with other
utilities and industry standards
groups on best practices. Use of
lab testing to make informed
choices.

Page 23

December 21, 2016
BC Hydro Resource Constraints

Significant resource constraints
internally for telecommunications, field
crews, and technology personnel
skills and head count could impact
the schedule.
Meter Deployment
Unable to complete meter deployment
by the end of 2012.
The Smart Metering Program was

a top corporate priority with broad
executive oversight and
commitment.
Leverage meter and field contract
labour market for peak resource
requirementsincluding
incentives for vendors to grow
and create jobs in British
Columbia.
As planned.
Contract incentives were in place

for solution integrator, meter
system and meter deployment
vendors to meet 2012 timeline.
Various strategies were used to
deploy meters in multiple regions
concurrently, including distributed
warehouses.
As planned.
Procurement approach designed

to achieve cost certainty for at
least 50 per cent of the project
budget, including mechanisms
like:
Affordability ceilings;
Fixed price contracts; and
Incentive mechanism shared
with all vendors.
Rigorous control over scope
elements implemented including:
Formal change control
process for any change in
scope, timeline, or
deliverables; and
Project controls office in place
to manage issues, risks,
assumptions and changes.
Rigorous financial controls were
implemented including:
Budget assigned to
accountable managers and
measured; and
Financial performance
tracking and forecasting tools.
As planned.
Budget
Risk of exceeding project budget due
to unforeseen costs or changes in
scope.
Actual Mitigation

Page 24

December 21, 2016
Safety/Security/Customer Privacy
Risk of security or privacy breach
impacting customers or system
operations.
Customer Experience
Risk of limited customer awareness
and public support of Smart Metering,
and/or negative customer experience
during meter deployment.
Actual Mitigation
Safety, security and privacy were

built into all procurement
processes.
Safety, security and privacy were
built into end-to-end solution
architecture and all business
processes, which were validated
during solution acceptance
testing.
BC Hydro is an active participant
in external standards setting
groups, including committees
focused on safety, security, and
privacy.
A dedicated smart metering
safety, security and privacy office
was established.
Formal penetration test plan
including hiring external agencies
to attempt to break into the
system.
Customer research to discover

baseline level of public awareness
and to identify specific issues and
concerns regarding meter
deployment.
Comprehensive Smart Metering
Program communications plan
developed and implemented;
including specific customer
contact plans pre-, during, and
post- meter deployment.
Incorporating lessons learned
from other utilities with respect to
customer engagement.
As planned.
In addition, ongoing monitoring
and dialogue in cooperation with
BC Office of the Information and
Privacy Commissioner.
IT security built into sustainment
model.
Managing threats and violence in
the work place through safety
programs; working with police as
required.
As planned.
In addition, development of Meter
Choices customer experience
after Directive 4 was issued.

Page 25

December 21, 2016
Regulatory Deadline
Risk of not meeting the
December 2012 Regulation deadline
due to internal, external or product
delays. Risk of exceeding
December 2015 Smart Grid Regulation
deadline for Advanced Telecom and
Energy Loss/Theft Detection
(installation and operation of at least
9,000 system devices).
Benefits Realization
Risk of not being able to achieve
benefits or lower benefits realized due
to higher costs, project schedule
delays or external factors such as
impact of legacy meters on benefits.
Actual Mitigation

considered the vendors ability to
meet the timeline.
Development of a robust
deployment strategy.
Incentive mechanisms in place to
align the related suppliers to
deliver on time.
SMI Leadership Team closely
monitoring work for scope
containment and swift issue
resolution.
Review critical path items and
milestones weekly at all levels to
meet the deadline.
Regular Issues and Priorities
Meeting to discuss and approve
mitigation strategies and take
corrective action as soon as
impacts are identified (additional
resources, schedule changes,
scope changes).
Cost certainty, fixed fee terms of

contract built into core solution
services and program delivery.
Build statements of work to
leverage fixed fee model where
appropriate.
Contractual incentive mechanism
for coming in under budget.
Strong financial controls in place:
Identifying manager
accountability by Work
Breakdown Structure,
forecasting of costs to
completion; and
Formal change control
process where Finance
approval is required.
Built-in contingency on delivery
costs.
Board reserve that requires board
approval.
Business groups have signed-off
on the benefits of business case.
As planned.
As planned.
In addition, cost reduction:
SMI continuing to push
equipment delivery schedules;
and
Government support for Meter
Choices.
Keeping benefits intact:
In-depth workshops with
relevant business units; and
Organizational commitment
and executive support for
business case benefits.
Seeking additional benefits:
Organizational commitment
and executive support in
pursuing additional benefits.

Page 26

December 21, 2016
Theft Solution Based on Emerging

Technologies
Risk of substantial SMI benefits being
dependent on energy/ theft analytics
and DSMDs.
Complexity of implementing the energy
balancing functionality
Dependency on Distribution System
Metering Devices deployment.
Alignment of the solution with
performance of the devices.
Network Completion and

optimization
Risk of more than planned
non-communicating smart meters
needing to be manually read and
lacking ability for other remote benefits
Actual Mitigation
Careful testing of technology

capabilities, in lab tests as well as
field trials in different
environments.
Contract terms in DSMD supply
contract negotiated to manage
risk.
Managing budget risk by
optimizing quantities of feeder
and transformer meters, check
meters and network devices.
Leveraging vendor expertise in
problem solving.
Soft deployment strategy to
minimize impact of early issues.
Ongoing scope management for
analytics solution.
As planned.
In addition, reduced reliance on
emerging technology (devices) by
increasing reliance on software
and existing SCADA devices.
Vendor contractual obligations

Escalation to BC Hydro and
vendor executives
Proposed by vendor alternate
technology solutions in the longer
term to maximize long-term
network performance
Weekly Issues and Priorities
Meeting to keep focus on delivery
and scope
As planned
In addition, formal discussions
with vendor regarding network
and system acceptance

Page 27

December 21, 2016
Table 3
SMI Program Unanticipated Risks
Mitigation Strategy
Risk of program wide

decisions being made
without considering all
affected groups and teams
Risk of disputes amongst

internal and external
stakeholders
Risk of disagreements between
project stakeholders due to
lack of process to resolve
conflicts, lack of role clarity and
accountability
Actual Mitigation
Ensure all affected teams are

engaged in assessment of
alternative strategies prior to
decisions being made
Develop a project
communication plan
Ensure stakeholders are

appropriately embedded in
process development
Obtain stakeholder input on
design and deployment,
planning and implementation
Organized issues and

priorities meetings,
lessons learned sessions
Assignment of an issue/
risk management role
Project communication
plan developed and
implemented
Embedded stakeholders
in process creation and
obtained their input on
design and deployment
planning and
implementation
Engaged BC Hydro
partners early in
discussion of
requirements and impacts
Program Status and Variance
The SMI Program delivered the required scope components adhering to the CEA
and Smart Meters and Smart Grid Regulation.
On March 31, 2016, there were 1,943,833 smart meters on the BC Hydro grid
serving residential and commercial customers of British Columbia. The smart meters
capture power consumption and provide two-way communication. Metering
telecommunications and an ADCS along with the MDMS are in place to support
customer billing.
10
The SMI Program implemented an infrastructure to collect meter reading data and
11
manage smart meters, as well as the interfaces and transformed business
12
processes to support the organizations adoption of the new technologies and
13
systems.
14
BC Hydro residential and commercial customers with smart meters have access to
15
conservation feedback tools like in-home display devices and a secure energy

Page 28

December 21, 2016
visualization website (Customer Portal) to monitor and visualize their energy
consumption. An advanced theft detection solution has been implemented to detect
energy theft and prevent potential revenue losses.
Through the SMI Program, BC Hydro has upgraded and modernized grid
infrastructure. The SMI Program deployed advanced telecommunications
infrastructure to support future advanced electricity grid functions and emerging
customer applications, and implemented advanced operational application to
support real-time monitoring and operations of the metering system.
All new technologies, tools and processes have been successfully transitioned to
10
operations.
11
The SMI Program managed scope, budget and schedule changes through the PMO
12
and the Program Controls Office following the Change Management process defined
13
in the SMI Program Governance Plan.
14
Identified SMI Program changes were reviewed, evaluated and logged into a
15
Change Request Log. Review and approval of the proposed changes was
16
conducted by the SMI Change Control Board at the weekly Change Review Meeting.
17
There were 280 approved change requests and five change request addendums.
18
4.1
19
Main components of the SMI Program scope changes include:
20
Scope Variance
Voluntary Time-of-Use Rates and Critical Peak Pricing The program
21
implemented the infrastructure necessary to bill customers using rates that
22
encourage the shift of the use of electricity from periods of higher demand to
23
periods of lower demand. The program also included a proof of concept that
24
billing according to time intervals was possible. In accordance with government
25
policy direction, Time-of-Use Rates were not implemented. The cost of these

Page 29

December 21, 2016
activities was treated as a reduction of project benefits and not as a project
cost;
Customer refusals during mass deployment resulted in meter deployment
inefficiencies and higher manual meter reading costs on an interim basis. This
increased the SMI Program implementation cost by $18.5 million, requiring a
draw on Project Reserve held by the Board of Directors;
Scaled down Home Area Network (HAN)/In-Home Display Program and Mass
Rebate when the SMI Business Case was completed in 2010, the vision for
the HAN Program involved a large rebate program and subsidy to assist over
10
500,000 customers in purchasing in-home display devices. A Government
11
review in June 2011 recommended reassessment of the program. Following
12
re-evaluation, the program was scaled down, decreasing program related
13
expenditures by $37.4 million, while complying with the CEA and meeting
14
BC Hydro customers needs; and
15
Commercial Energy Visualization Portal - Through consultation with business
16
customers and key stakeholders, it was determined that the original intent of
17
utilizing the same Energy Visualization Portal for both commercial and
18
residential customers would not provide meaningful information to businesses.
19
With the BC Hydro tariff, residential customers are charged mainly through their
20
consumption in terms of electricity used (i.e., kWh) whereas business
21
customers are charged by their consumption of electricity, demand and power
22
factor and therefore, information in the form of KWh alone does not provide
23
meaningful impact or insights.
24
Regulatory Amendments:
25
On December 27, 2012 the Ministry of Energy and Mines announced a plan to
26
extend the deadline under the CEA from December 31, 2012 to December 31, 2013,
27
largely due to customer requests to defer meter installation as well as equipment

Page 30

December 21, 2016
and labour shortages. Other exceptions included meters that require an equipment
upgrade prior to smart meter installation due to concerns over potential for
interference with community-based Internet Service Providers.
4.2
The SMI Program was approved by the BC Hydro Board of Directors in
September 2010 with an authorized amount of $930 million. The budget was broken
down into an expected amount of $840 million (including $60 million contingency
managed by the SMI Program team) and a $90 million Board reserve.
The SMI Program Costs are shown in Table 4 below.
Cost Variance

Page 31

December 21, 2016
Table 4
1
2
SMI Program Budget and Cost at

Completion
Program Expenditures
($ million)
Original
Estimate
Cost at
Completion
Variance
Favourable/
(Unfavourable)
Initiation Phase (Completed Fiscal 2007)
1.4
1.4
0.0
Identification Phase (Completed Fiscal 2008)
8.9
8.9
0.0
38.8
37.8
1.0
391.1
398.5
(7.4)
60.9
87.5
(26.6)
110.5
86.5
24.0
Conservation Feedback Tools
62.8
19.2
43.6
Grid Modernization Infrastructure Upgrades
54.2
76.7
(22.5)
Program Delivery Activities
37.0
50.9
(13.9)
765.6
767.4
(1.8)
14.4
11.8
2.6
Contingency
60.0
60.0
Reserve Subject to Board Control
90.0
90.0
930.0
779.2
150.8
Definition Phase (Completed Fiscal 2011)

Implementation Phase (Fiscal 2011 to Fiscal 2016):
Smart Metering System
Solution Integration
(Information Technology)
Theft Detection
Total: Program Costs before IDC and

Contingency
Interest During Construction
5
Total: Program Authorized Amount

3
Overall, there is a total favourable variance (Program Authorized Amount including
interest-during-construction, contingency and reserve) of $150.8 million, reducing
the cost of the program from $930 million to $779.2 million.
The favourable variance in Theft Detection implementation costs is due to the
change in the distribution system meter devices strategy executed in October 2014.
The favourable variance in Conservation Feedback Tools reflects the removal of a
mass market in home feedback display rebate program from the project scope. The
10
higher solution integration costs are due to an increase in the number of applications
11
implemented, compared to the original business case. An example is the
12
introduction of applications required to support Internet Protocol Version 6.

5
Refer to Appendix E for Contingency Usage. Actual Contingency and Reserve Subject to Board Control used
in the implementation of the Program is presented with the applicable program expenditures that required a
draw of contingency or reserve.

Page 32

December 21, 2016
The higher grid modernization infrastructure upgrades costs are due to increased
smart grid telecommunication costs. An example is additional network devices that
were required to connect meters in challenging radio environments such as rural
communities and underground concrete meter rooms.
Higher than budgeted Program Delivery costs are due to a 21-month extension of
the implementation timeframe to provide more time to address customer concerns
and allow for the implementation of the Meter Choices Program.
4.3
The SMI Program adopted an Integrated Program Schedule using Microsoft Project.
Schedule Variance
10
The schedule was managed by a designated Program Scheduler, a member of the
11
PMO, and followed a rolling-wave planning approach. The Integrated Program
12
Schedule covered the entire breadth of the project and contained a level of detail
13
sufficient to manage key milestones and cross-teams dependencies. The following
14
table presents a comparison of major Baseline Schedule milestone target dates by
15
release, and the actual achieved completion dates.
16
To assist with the execution and implementation of the SMI Program componenets,
17
and after discussion and review with Program Management, SMI Program schedule
18
and target dates were baselined on April 27, 2011 when the implementation
19
activities had commenced following establishment of an architecture and execution
20
framework as well as detailed schedules provided by program teams.

Page 33

December 21, 2016
Table 5
Release Descript
ion
SMI Program Schedule
Target Dates
Baseline
Schedule
April 27, 2011
Actual
Completion
Date
Release 0
Architecture and
Execution
Framework
April 2011
May 2011
Release 1
Mass deployment
of meters
complete
(1,754,789)
December 2012
December 2012
Release 1
Deployment of
deferral list
meters and other
limited exceptions
N/A
December 2015
Release 2
Billing from
automated
register reads
March 2012
March 2012
Release 3
Residential and
commercial web
portals (with
register reads and
interval data)
Residential:
April 2012
Residential:
November 2012
Commercial:
N/A
Commercial:
December 2012
Release 3
Home Area
Network (In-Home
Feedback)
Program
March 2013
Soft Launch:
March 2015
Schedule Variance
Reason
CEA Smart
Meter and
Smart Grid
Regulation
3 (1) (a)
3 (2)
3 (4)
Ongoing Meter
Choices Program.
3 (1) (b) (ii) (A)

3 (1) (b) (ii) (B)
3 (3)
3 (4)
Longer than
anticipated
development work.
Longer than planned
testing and user
acceptance test.
Commercial web
portal required
separate
deployment (after
residential portal).
2 (g)
3 (1) (b) (ii) (C)
Reduction in scope
and costs while
adjusting technology
to fully functioning
and scalable
system.
Review and
reassessment of the
Program resulted in
an extension of the
implementation
timeline.
3 (1) (b) (ii) (D)

Page 34

December 21, 2016
Release Descript
ion
Target Dates
Baseline
Schedule
April 27, 2011
Actual
Completion
Date
Schedule Variance
Reason
CEA Smart
Meter and
Smart Grid
Regulation
Release 4
Time-of-Use
Rates and billing
from interval data
July 2012
December 2012
Resource
constraints and
schedule delays.
3 (1) (b) (ii) (E)
Release 5
Advanced
Telecom and
Operational
Support
Interactive
Communication:
November 2012
Interactive
Communication:
December 2012
4 (1) (c)
4 (2)
Remote Connect/
Disconnect:
November 2012
Remote
Connect/
Disconnect:
February 2013
Interactive
Communication:
schedule
dependency.
Remote
Connect/Disconnect:
additional testing
and defect
resolution time.
Outage
Management: after
storm season
additional
enhancement and
deployments were
implemented
Advanced Telecom:
additional time for
defects resolution
and schedule
dependency on IPv6
network protocol
implementation
Outage
Management:
November 2012
Advanced
Telecom:
March 2014
Outage
Management:
Phase 1
December 2012
Phase
2 - August 2014
Advanced
Telecom:
December 2015

Page 35

December 21, 2016
Release Descript
ion
Release 6
Advanced Theft
Detection
Program
Target Dates
Baseline
Schedule
April 27, 2011
May 2014
Actual
Completion
Date
Schedule Variance
Reason
December 2015
During 2014,
BC Hydro
reassessed the
DSMD strategy and
decided to
discontinue the
development of
DSMDs and their
associated
applications. In
October 2014,
BC Hydro
commenced
integrating SCADA
and check meter
devices into the theft
solution.
Development of the
associated
applications started
in January 2015.
CEA Smart
Meter and
Smart Grid
Regulation
4 (1) (a)
4 (1) (b)
4 (2)
Project Evaluation - Benefits Realization
5.1
Business Case
In January 2011, BC Hydro released the SMI Business Case reflecting program
benefits to be realized over 20 years.
The SMI Program delivered the following benefits:
Improved reliability and safety Real-time outage notification provided by smart
meters avoids the need for field crews to search for the location and cause of an
outage, often in adverse weather conditions, thereby accelerating the outage
restoration process. In addition, reduced energy theft will result in reduced safety
10
risks and reduced customer outages caused by premature transformer failures.
11
Enhanced customer service Smart meters provide improved accuracy of meter
12
reads, the elimination of estimated billing (for customers with network coverage),

Page 36

December 21, 2016
streamlined moving procedures, and better informed customer service
representatives who now have substantially more information available when
responding to customer calls.
Reduced electricity theft Prior to the implementation of the SMI Program,
BC Hydro estimated that approximately 850 Gigawatt Hours (GWh) per year was
lost to electricity theft. Revenue Assurance investigation results show that of the
marijuana grow-ops that were identified, the proportion with electricity theft present
increased from 41 per cent in fiscal 2006 to 62 per cent in fiscal 2011 (i.e., the last
fiscal year prior to the commencement of smart meter deployment). In fiscal 2013,
10
the proportion of identified grow-ops with theft present declined to 22 per cent, with a
11
further reduction in fiscal 2014 to 7 per cent, to 3 per cent in fiscal 2015 and to
12
2 per cent in fiscal 2016. This suggests that a significant proportion of energy theft
13
has already been eliminated due in part to a combination of media coverage of the
14
SMI Program, proactive communications around the meter change out process, and
15
BC Hydros visible expanded revenue assurance field inspection program supported
16
by interim technology solutions.
17
Operational Efficiencies Aside from reduced operating costs resulting from
18
automated meter reads, remote connect and disconnect, improved outage
19
management, and the suspension of the meter sampling program, voltage
20
information from smart meters can be used to reduce system losses. In the absence
21
of voltage information, more energy is transmitted than needed to maintain an
22
acceptable level of power quality. With available voltage information from smart
23
meters, adjustments can be made to reduce the amount of energy transmitted while
24
maintaining power quality levels.
25
Customer Choice and Control Smart meters provide specific and timely energy
26
usage information, which makes it easier for customers to understand and actively
27
manage their electricity consumption patterns. Increased energy awareness is
28
facilitated through:
Page 37

December 21, 2016
in-home displays and energy management gateways;
2
3
Optional in-home feedback tools Including in-home feedback devices such as
Customer Web Portal - Customers are able to access their hourly consumption
(typically by the next day) using BC Hydros customer web portal.
Modernized British Columbia Electricity System The Program replaced
obsolete legacy meters with smart meters, implemented in-home feedback tools and
advanced telecommunications infrastructure including new networking protocol
(IPv6), created advanced systems and infrastructure to reduce electricity theft and
created the foundation to support new uses of electricity such as electric vehicles,
10
customer generation and microgrids.
11
5.2
12
To maintain the ongoing achievement of SMI Program benefits, BC Hydro
13
developed a benefits realization framework which identified each benefit included in
14
the SMI Business Case and grouped these into benefit work-streams based on the
15
nature of the benefit and the business group accountable for delivery. The quantified
16
benefit for each work-stream was formalized in a benefit acceptance document,
17
which was signed by the accountable business group manager accountable for the
18
realization of SMI Program benefits. Benefit realization was tracked and reported on
19
a periodic basis, where benefits realized were compared to forecast per the SMI
20
Program Business Case.
21
5.3
22
The SMI business case includes benefits to be realized through the end of
23
fiscal 2033. Table 6 below presents the cumulative benefits realized through to the
24
end of fiscal 2016.
Benefits Realization Framework
Benefits Realized to March 2016

Page 38

December 21, 2016
Table 6
SMI Program Benefit Realization to Fiscal 2016
$ million (Nominal, unless otherwise noted)

Type of Benefit
Operational Efficiencies,
Avoided Capital
Description
Meter Reading Automation
Actual
(to Fiscal 2016)
Business Case
(to Fiscal 2016)
Variance
Favourable/
(Unfavourable)
29
73
(44)
Meter Sampling
61
36
25
11
Remote Reconnect Automation
47
15
(7)
Distribution Asset Optimization
15
(3)
Outage Management Efficiencies
10
(4)
(1)
Call Centre & Billing
Revenue Protection
Lifecycle
Business Case
to Fiscal 2033
(Present Value)
222
Continuous Optimization and Load Research
Energy Savings
Inception to Fiscal 2016
(2)
(5)
(4)
(1)
359
74
123
(49)
Voltage Optimization Commercial Customer Sites
108
(10)
10
Voltage Optimization Distribution System
100
26
(25)
208
16
(15)
732
154
156
(2)
1,299
229
294
(65)
Theft Detection
Derived from BC Hydro Operational Efficiencies

Capacity Savings
Voluntary Time-of-Use Rates
110
(59)
59
Energy Savings
Conservation Tools (In-Home feedback tools)
220
147
(141)
330
88
(82)
1,629
235
382
(146)
Increased Customer Conservation

Total Quantified Benefits
Refer to Appendix I for SMI Program Energy Related Benefits (GWh) to fiscal 2016 with impact on SMI Operating and Capital Expenditures and
Revenues.

Page 39

December 21, 2016
Meter Reading Automation:
The business case assumed that manual meter reading routes would be
decommissioned approximately six months after the installation of a smart meter.
However, actual project execution focused on minimizing deployment costs, rather
than maximizing avoided meter reading costs.
In mid-fiscal 2012, BC Hydro decided to manage the termination of the Accenture
Meter Reading contract by letting it expire on March 31, 2013 instead of terminating
the contract at an earlier date. This avoided significant early termination penalties
but required the continued payment for meter reading services.
10
In addition, meter installations for the 75,000 customers who refused smart meters
11
were put on hold until the announcement of the Meter Choices Program in
12
July 2013. Meter installations for the Meter Choices Program customers who
13
ultimately selected a smart meter commenced in January 2014. As a result of the
14
delays in smart meter installations related to customer installations put on hold, and
15
the resulting delays in optimizing the telecommunications network, actual cumulative
16
manual meter reading costs (including related vehicle operating costs) to fiscal 2016
17
were higher than estimated in the business case by $13 million.
18
The SMI Program has delivered $29 million in meter reading automation benefits
19
to-date. This is $44 million less than assumed by the original business case due to
20
the factors outlined above. The business case assumed that 95 per cent of customer
21
meters would have billing information captured by automated reads. As of
22
March 2016, 98 per cent of customer meters are read automatically over the air.
23
Theft Detection:
24
Revenue Assurance investigation results show that of the grow-ops that were
25
identified in the field each year, the proportion with electricity theft present increased
26
from 41 per cent in fiscal 2006 to 62 per cent in fiscal 2011 which was the last fiscal
27
year prior to the commencement of smart meter deployment. In fiscal 2013, the
Page 40

December 21, 2016
proportion of identified grow-ops with theft present declined to 22 per cent, with a
further reduction in fiscal 2014 to 7 per cent, to 3 per cent in fiscal 2015 and to
2 per cent in fiscal 2016. This suggests that a significant proportion of energy theft
has been eliminated due to a combination of media coverage of the SMI Program,
proactive communications around the meter change out process, and BC Hydros
visible expanded revenue assurance field inspection program supported by interim
technology solutions. It is estimated that by fiscal 2015 reduced theft had resulted in
increased revenue of approximately 300 GWh per year and reduced load of
approximately 300 GWh per year relative to 2010. This represents a significant
10
benefit to BC Hydro ratepayers.
11
Theft reduction costs, which include costs associated with investigation, security,
12
and collections, have been less than planned in each of the years from fiscal 2012
13
through fiscal 2016, resulting in a cumulative favourable variance of $22.4 million
14
comparing to the SMI Business Case.
15
The SMI Program has exceeded the theft reduction targets in the original business
16
case which expected theft reduction to peak in fiscal 2016 at 75 per cent. To-date,
17
the Program has reduced theft by more than 80 per cent.
18
While theft reduction targets have been exceeded, the overall Theft Detection
19
benefit to end of fiscal 2016 has been $2 million less than assumed in the SMI
20
Business Case. This is because the business case assumed that all electricity theft
21
detected prior to fiscal 2018 would be converted to paying customer revenue. While
22
some theft has been converted to paying customer revenue, other theft activity has
23
stopped all together, which has reduced BC Hydros future energy supply costs. The
24
short-term value of energy supply is less than the value of increased customer
25
revenue. As a result, while BC Hydro has exceeded its theft detection targets, the
26
value of theft reduction to-date is less than assumed in the original business case.
27
Over the life of the program, theft reduction is expected to deliver approximately

Page 41

December 21, 2016
$715 million (net present value) in benefits. Table 7 below presents Theft Detection
benefit realization to fiscal 2016 based on an estimated theft reduction impact.

Table 7
3
4
Theft Detection Benefit, Inception to

Fiscal 2016
$ million
Benefit Component Description
Actual
Business Case
Variance
Favourable/
(Unfavourable)
148
198
(50)
29
25
Diversion Reduction Costs
(23)
(46)
23
Total
154
156
(2)
Increased Revenue from Diversion

Reduction
Energy and Capacity Savings
Voltage Optimization Program
Voltage Optimization is the management of voltages and reactive power flows in the
distribution network to enable energy conservation, peak reduction, loss
minimization and power factor improvement. The value of these benefits is based on
the avoided cost of acquiring new sources of energy supply. This cost has
10
decreased since 2011 as advancements in technology have reduced energy supply
11
costs and as commodity prices have decreased, which has led to a lower rate of
12
forecast load growth. In fiscal 2016 the Voltage Optimization Program realized
13
10.8 GWh of energy savings. Voltage Optimization capabilities will be improved
14
following the planned implementation of a metering system firmware upgrade in
15
fiscal 2017 that will introduce bellwether metering and the ability to collect near-real
16
time data from a small sample of customer meters located in areas of significance to
17
the distribution grid structure.
18
In-Home Display:
19
The IHD Rebate Program was significantly reduced in scope compared to the SMI
20
Business Case and was implemented in late fiscal 2015. Measurement of the energy
21
savings resulting from the Energy Visualization Web Portal have been estimated at

Page 42

December 21, 2016
8.46 GWh for fiscal 2016 (refer to page 33 for a discussion of the change in scope
related to the In-Home Display Program).
Outage Management:
Smart meters played an important role in BC Hydro restoration efforts following the
major storm in September 2015. The new metering system helped BC Hydros field
crews in their efforts to restore power to customers more efficiently.
For example, once crews completed a work order, the Restoration Centre did a
remote check or ping of meters in the neighbourhood to confirm power was indeed
restored as expected. If restoration was confirmed, the crews could move on to the
10
next work order rather than waiting on-site while Restoration Centre employees
11
called customers to check if they had power.
12
Smart meter outage notifications are best used for individual or smaller scale
13
customer outages. For large storms like August 2015, the Restoration Centre is
14
more likely to use critical infrastructure status such as station and feeder outage
15
information as a primary driver, and use the smart meter data as supplemental
16
information to help predict how widespread an outage is.
17
Time of Use Rates:
18
In fiscal 2012, policy direction was received from the shareholder indicating that
19
voluntary Time-of-Use and other Time Based Rates should neither be developed nor
20
implemented. All activities in this regard ceased immediately. However, the
21
functionality required to collect and process hourly interval data was implemented in
22
order to support presentation of this data on the web as a customer conservation
23
tool, as required by the Smart Meters and Smart Grid Regulation under the CEA.
24
To the end of fiscal 2016, the business case assumed $61 million of time
25
differentiated rate design costs would be incurred, none of which has been spent.

Page 43

December 21, 2016
Benefits Impaired by Lower Energy Price
The Energy Reference Price used in the SMI Business Case was based on the
prices in the 2009 Clean Call for Energy, inflated over time. This was a proxy for the
avoided cost of acquiring future energy under long-term contracts, and was the
approach used to assess all BC Hydro Demand Side Management programs.
Since that time, the cost of acquiring new sources of energy supply has decreased
as advancements in technology have reduced energy supply costs and as
commodity prices have decreased, which has led to a lower rate of forecast load
growth.
10
The reduction in the cost of new energy supply accounts for $128 million of the
11
$146 million variance in benefits realized to-date. .
12
Table 8 below presents an overall outlook of the SMI Business Case NPV estimated
13
in fiscal 2016, covering benefits and costs for the period from the start of the
14
Program through to fiscal 2033, assuming the energy price remains at current levels.
15
However, the energy price will continue to fluctuate over the remaining 16-year
16
lifetime of the business case.

Page 44

December 21, 2016
Table 8
1
2
Overall SMI Program Business Case NPV

Outlook (Fiscal 2016)
$ million NPV
1.
Published SMI Business Case (Fiscal 2011)
520
2.
Less:
3.
De-scoping of Time-of-Use Rates (reduction in capacity benefit)
(110)
4.
Reduction in Energy Price (impact on all energy benefits)
(375)
5.
De-scoping IHD Rebate (reduction in energy benefit, offset by reduction in

implementation costs)
(115)
6.
Impairment of Meter Reading Benefit
(62)
7.
VVO (reduction in benefit)
(84)
8.
Other Benefits
9.
Add:
10.
Increase in Theft Detection and Meter Sampling benefits compared to plan

(excluding energy price impacts described above)
11.
Lower sustainment operating and capital costs
12.
Reduction in Overall SMI Program Costs (incl. IHD, DSMD)
100
13.
Business Case Long Term Outlook (Fiscal 2016)
138
(9)
264
9
Lessons Learned and Recommendations
The SMI Program was a complex, multi-year initiative that included delivery of
significant information technology, telecommunications technology, and deployment
of assets. As a result, there were a number of lessons learned throughout the
Program that could be applied to projects of a similar nature.
SMI Program lessons learned were discussed and disseminated within Program
teams including vendors as well as BC Hydro sustainment groups as applicable.
10
A number of approaches used on the SMI Program contributed to a successful
11
implementation of smart metering technologies and delivery of new functionality into
12
the business groups. The Program successes included:
13
Defined Program Business Releases and Work-stream (team) structure
14
15
Business Releases defined the work that was accomplished and grouped
business functionality into manageable pieces of scope.

Page 45

December 21, 2016
and managed cross-work-stream interactions.
2
3
Dedicated Release Managers coordinated delivery across the work-streams
Release Managers had visibility across the whole Release to identify and
manage risks, issues and changes. Delivery of each Release typically involved
team members from most or all of the work-streams.
Structuring the Program team into a matrix of work-streams and business
releases allowed an efficient use of work-stream resources and contributed
greatly to efficient delivery. Resourcing was smoothed through the natural
delivery lifecycle and staggered release dates.
10
Decision Making Process
11
Structured and formal Change Control processes and a technical Change
12
Advisory Board, included from the beginning of the Program, helped manage
13
Program budget, scope and schedule while ensuring that changes were verified
14
and well understood by involved program stakeholders.
15
Program risks, critical issues and key assumptions were logged and updated
16
regularly by the PMO team following the recurring Program Leadership Issues
17
and Priorities meetings.
18
which allowed them to make timely and efficient decisions.
19
20
Release Managers and Project Managers were allocated full time to projects
A single page high level Critical Path Diagram showing key interdependencies
21
between Program releases complemented a detailed Gantt Chart of the
22
Program Schedule and helped to facilitate Program Leadership decision
23
making.
24
Go/no-Go meetings, supported by a detailed checklist, were required before
25
releasing technology applications to a production environment or deploying
26
technology into the field. The presence of representatives at the Program and

Page 46

December 21, 2016
Release level (i.e., Release manager, technical project manager, relevant
work-stream representative and sustainment organization business lead)
ensured that the appropriate managers were present to make decisions.
Centralized End-to-End Testing
The SMI Program had a centralized testing team assigned to perform
end-to-end tests across the entire solution, which allowed for objectivity and a
focus on efficiency.
End-to-End Testing assessed functionality across an entire business process in

which multiple systems connected through multiple integrations from system to
system.
10
11
Release 0
12
The purpose of Release 0 was to refine the preliminary SMI Technical
13
Reference Architecture and the related architectural guidelines, strategies,
14
business use cases and architectural principles. It served as a technical
15
foundation for all subsequent Program releases improving implementation
16
efficiency.
17
Multi-vendor Environment
18
The Program paired a BC Hydro lead with a System Integrator lead (a Box
19
buddy concept) for key work-streams. This approach matched utility
20
experience with smart metering/project expertise and ensured informed
21
decision making.
22
Lessons Learned and Recommendations:
23
24
Reliance on Vendor Testing

The project team performed some tests that vendors had already conducted.

Page 47

December 21, 2016
Lesson/ Recommendation: Leverage vendor expertise and align testing
strategies so that the project team can focus its testing efforts on areas not
covered by the vendors.
Research and Development (R&D) project nature
Release 6 had projects of a research and development nature (i.e., considered
an emerging technology) that required extensive testing and field trials.
Frequently the results of testing and field trials required product changes,
resulting in schedule delays.
Lesson/ Recommendation: Consider alternate delivery methodologies or project
10
management practices to allow for adequate schedule durations, costs and
11
product iterations.
12
Reliance on Contractors
13
The project team was supported by contractors to implement new and complex
14
technology.
15
Lesson/ Recommendation: Consider leveraging more BC Hydro technology
16
staff for better retention of knowledge and continuity.
17
Financial Closure
18
Assets detailing was completed in fiscal 2016 and SAP charge codes have been
19
closed. A total of $696.6 million assets were capitalized. A list of the SMI Program
20
Asset Classes and their corresponding value is presented in Appendix F.
21
As of March 31, 2016, all sustainment activities related to the implemented Smart
22
Metering and Infrastructure technologies were successfully transitioned and
23
integrated into BC Hydro operations. Total Incremental Operating Costs (including
24
both sustainment and benefit-related operating costs) in fiscal 2017 are expected to
25
be $44.3 million before Operating Cost Savings of $22.2 million. The projected

Page 48

December 21, 2016
Incremental Operating Cost and Operating Cost Savings for fiscal 2017 to
fiscal 2019 fiscal are presented in Table 9 below.

Table 9
3
4
Incremental Operating Costs and

Operating Costs Savings to Fiscal 2019
$ million
Fiscal 2017
Fiscal 2018
Fiscal 2019
44.3
43.1
43.2
Savings
(22.2)
(22.4)
(22.6)
Net Total
22.1
20.7
20.6
Operating Costs
The planned incremental and operating costs for fiscal 2017 to fiscal 2019 were
presented in BC Hydro Revenue Requirements Application filed with the British
Columbia Utilities Commission on July 28, 2016.
As discussed throughout this report, the SMI Program also creates significant
energy cost reductions and increased revenues that are not captured in operating
10
costs, resulting in an overall net positive benefit to ratepayers.
11
12
The SMI Program was successfully completed in accordance with the Project
13
Management Procedures of BC Hydro. This report has been completed in
14
compliance with BC Hydros Management and Accounting Policies and Procedures.
15
The Program delivered business functionality and new technologies as outlined in
16
section 2 of this document.
Program Completion

Page 49
Appendix A
Program Document List

December 21, 2016
Appendix A
Document
Date
The British Columbias Clean Energy Act, Section 17 and Smart Meters and
Smart Grid Regulation
June 2010
SMI Program Business Plan
December 2010
SMI Program Governance Plan
December 2010
SMI Program Execution Plan
December 2010
SMI Program Baseline Budget
December 2010
SMI Program Business Case
January 2011
SMI Program Baseline Schedule
April 2011
SMI Program Quality Management Plan
July 2011
The British Columbias Clean Energy Act Ministerial Order No. M294
December 2012

Page 1 of 1
Appendix B
Program Budget

December 21, 2016
Appendix B
BC Hydro Board Approved Amount and Authorized Amount September 2010.

Amount ($ million)
Initiation Phase (Completed Fiscal 2007)
1.4
Identification Phase (Completed Fiscal 2008)
8.9
Definition Phase (Completed Fiscal 2011)
38.8
Implementation Phase (Fiscal 2011 to Fiscal 2016):

Smart Metering System
391.1
Solution Integration (Information Technology)

Theft Detection
60.9
110.5
Conservation Feedback Tools
62.8
Grid Modernization Infrastructure Upgrades
54.2
Program Delivery Activities
37.0
Total: Implementation Phase
716.5
14.4
Contingency
60.0
Sub-Total: Program Expected Amount

Reserve Subject to Board Control
Total: Program Authorized Amount
840.0
90.0
930.0

Page 1 of 1
Appendix C
Program Operating and Capital Expenditures

December 21, 2016
Appendix C
Operating and capital expenditures related to the SMI Program incurred by

BC Hydro for the SMI Program to date are shown in Table C-1.
Table C-1
($ million)
SMI Program Operating and Capital

Expenditures SMI Program to Date
Operating
Expenditures
Capital
Expenditures
Total
Expenditures
Labour
31.8
49.5
81.3
Consultants and Contractors
58.2
338.4
396.6
Materials/Other
(7.4)
296.9
289.5
11.8
11.8
779.2
Interest
n/a
Sub-total SMI Program
82.6
696.6
7.5
n/a
90.1
696.6
Interest on Deferral
Total
7.5
786.7
Operating and capital expenditures by program component1 for SMI Program at

completion are presented in Table C-2.
Table C-2
SMI Program Operating and Capital

Expenditures by SMI Program
Component SMI Program to Date and
Actual Expenditures at Completion
Actual Expenditures
Program to Date
($ million)
Operating
Expenditures
Capital
Expenditures
Total Expenditures
11.9
359.2
371.1
Telecommunications Systems
0.4
39.5
39.9
Meter Data Management

System
0.2
8.1
8.3
Solution Integration
0.0
53.9
53.9
In-Home Display/In-Home
Feedback
7.3
19.3
26.6
Conservation Based Rates
0.0
3.9
3.9
22.3
140.1
162.4
Smart Meters
Smart Grid
1,5
Other
1
In Directive No. 4 of Commission Order No. G-67-10, BC Hydro was directed to report SMI Program costs
broken down by the components specified therein.

Page 1 of 2

December 21, 2016
Appendix C
Actual Expenditures
Program to Date
Program Management
4.7
20.1
24.8
Facilities
2.2
5.0
7.2
2.7
5.1
7.8
Regulatory
1.3
0.0
1.3
Procurement
0.1
20.3
20.4
Contract Management
0.0
2.3
2.3
Customer
2.6
0.0
2.6
Business Transformation
2.0
0.0
2.0
Engineering, IT, Telecom,

Security & Field Trials
3.4
0.0
3.4
Utility Operations
1.3
0.0
1.3
Human Resources
0.9
0.5
1.4
11.3
0.0
11.3
Transition to Operations
0.7
0.0
0.7
Leasehold Improvements
0.0
0.4
0.4
Field Trial Equipment
0.0
0.0
0.0
Security
0.0
2.0
2.0
0.0
16.9
16.9
7.3
0.0
7.3
0.0
0.0
0.0
Total Other
40.5
72.6
113.1
Contingency
0.0
0.0
0.0
82.6
696.2
779.2
Finance
4
Communication & Stakeholder

Engagement
Infrastructure (IT)
Program Development
Total
1
2
4
5
Smart Grid includes theft detection and other advanced telecom infrastructure related expenditures.
Program Initiation and Identification includes expenditures of $7.3 million incurred during fiscal 2006 and
fiscal 2008 (inclusive). These amounts were expensed in the year in which they were incurred, although only
$0.6 million was recovered in rates (i.e., $6.7 million was incurred ex-plan).
Interest during construction is included in actual expenditures for each expenditure category, but not included
in planned expenditures by category. Therefore, a separate line item is included in Other.
Itron credit of $10 million previously reported under deferred regulatory reclassified to Smart Grid.
DSMD write off of $19.1 million reclassified from capital to operating.

Page 2 of 2
Appendix D
Program EAR Revisions

December 21, 2016
Appendix D
EAR Revision
Number
Date
Nature of Change
Amount
($ thousands)
EAR No. 1
Prior to 2008
Initiation Phase Funding
1,512
EAR No. 2
February 29, 2008
Identification Phase
Funding
8,283
EAR No. 3
April 17, 2008
To fund April - May 2008
4,278
EAR No. 4
April 17, 2008
To fund June
December 2008
30,347
EAR No. 5
August 29, 2010
Extension of SMI to
December 2010
20,000
EAR No. 6
March 15, 2011
Implementation Phase
Funding
Total
865,580
(775,580+90,000)
930,000

Page 1 of 1
Appendix E
Contract Values Spent Greater than $3 million

December 21, 2016
Appendix E
Contract Number
Vendor
Description
Total Value
($ million)
CO 60950
CO 61015
Multiple
Itron Canada Inc.
Metering Systems and

Metering Data Services
231.7
CO 60135
Corix Utilities Inc.
Meter Deployment
Services
83.4
CO 55836
Multiple
Capgemini Canada Inc.
System Integrator and

Consulting Services
86.8
CO 73727
CO 73729
CO 79207
CO 87280
EMC Corporation of
Canada
Energy Analytics
Solution and Services
21.0
CO 69350
CO 86427
Awesense Wireless Inc.
Portable Check Meters
11.6
Multiple
Teksystems Canada Inc.
IT Consulting Services
14.3
CO 51068
Multiple
Compugen Inc.
IT Software and
Hardware Purchases
22.6
Multiple
West Pacific Consulting

Group
7.9
CO 64130
Multiple
Telus
Telecom Infrastructure
Services
7.6
Multiple
JTS Consulting Inc.
7.2
CO 62115
A.T. Maintenance Plus

Contracting
Meter Technician
Services
5.2
Multiple
DDB Canada
SMI communications
campaigns
5.0
CO 31955
Everest Outsourcing
Canada
Consulting Services
4.9
Multiple
QinetiQ North America
Distribution System
Metering Devices
5.5
Multiple
Annex Consulting Group
4.8
CO 33456
McKinsey & Company

Canada
Consulting Services
4.3
CO 64863
Karma Midnight
Ventures Ltd.
Meter Technician
Services
3.5

Page 1 of 1
Appendix F
Reasons for Commitment of Contingency and
Reserve Funds

December 21, 2016
Appendix F
In May 2013, the BC Hydro Board approved the release of $18.5 million of the
reserve funds to implement Meter Choices Program.
Reserve Funds
($ million)
Increased project costs resulting from the refusal of a smart meter
installation by some customers, including incremental meter
installation costs, additional network components and increased call
centre resources.
18.5
Unused Reserve
71.5
Total Reserve Subject to Board Control
90.0
The main drivers for the commitment of the contingency funds were as follows:
Contingency Funds
($ million)
Budget Re-baseline (June 2011)
10.9
Testing (All Releases)
10.8
R6 IT
8.6
R3 Portal
6.2
Vendor Incentives
4.8
R6 EAS
4.4
R5 IPv6
4.3
DRC
4.2
IDC
4.1
Staffing
3.9
R5 Advanced Telecom
(4.6)
Foreign Exchange
(6.2)
Meter Reading Contract Termination
(9.4)
Other
8.1
Total Funds Allocated
50.1
Unused Program Contingency

Total Value
9.9
60.0

Page 1 of 1
Appendix G
Program Asset Classes

December 21, 2016
Appendix G
Asset Class
Asset Class Description
Total Value
($ million)
Meters
C59403
Automated Meters, Distribution
420.6
Software
C80302
Software Enterprise Systems
C80318
Software 5-Year Life Internally Developed
14.9
C80319
Software 10-Year Life Internally Developed
8.4
C80303
Software, Mid-range Systems
7.0
Subtotal Software
128.2
158.5
Control Systems
C68201
Control Centre (Master Equipment)
45.3
C68204
Distributed Control System
7.4
Subtotal Control Systems
52.7
Tools
C82550
Tools/ Work Equipment, Miscellaneous
16.6
Computer Hardware
C80504
Servers
12.4
C80502
Routers
10.8
Subtotal Computer Hardware
23.2
Assets Classes below $5 million, including but

not limited to: telecom network equipment,
transformers, poles
25.0
Other
Total: SMI Capital Assets
696.6

Page 1 of 1
Appendix H
Program Quarterly Reports Summary

December 21, 2016
Appendix H
Report
Period Cover
Date Filed
April 2010 to June 2010
September 15, 2010
July 2010 to September 2010
November 17, 2010
October 2010 to December 2010
February 9, 2011
January 2011 to March 2011
June 8, 2011
August 30, 2011
November 29, 2011
March 30, 2012
May 21, 2012
August 17, 2012
10
December 7, 2012
11
February 28, 2013
12
May 15, 2013
13
August 14, 2014
14
November 14, 2013
15
February 14, 2014
16
May 15, 2014
17
August 14, 2014
18
November 13, 2014
19
February 13, 2015
20
May 12, 2015
21
August 14, 2015
22
November 10, 2015
23
February 11, 2016

Page 1 of 1
Appendix I
SMI Program Operating and Capital Expenditures by
SMI Program, with Energy Related Benefits (GWh)
and Revenues

December 21, 2016
Appendix I
Actual
F2012
Plan V a ria nc e
Actual
F2013
Plan V a ria nc e
Actual
F2014
Plan V a ria nc e
Actual
F2015
Plan V a ria nc e
Actual
F2016
Plan
V a ria nc e
Cum ulative
(F2012 to F2016)
Actual
Plan
V a ria nc e
A. SMI Operating Costs ($ m illions)

KBU Operating Costs - SMI Implementation
Call Centre
Diversion Reduction
Meter reading - Manual reads
0.0
2.6
0.0
1.7
6.9
0.0
1.7
4.2
0.0
0.0
0.0
0.0
Total - KBU Operating Costs - SMI Implementation 2.6
8.6
5.9
(4.9)
(4.1)
(0.8)
0.0
0.0
0.0
(0.8)
(4.1)
(4.1)
0.0
(0.2)
0.0
0.0
(0.2)
0.8
0.0
0.8
(0.2)
0.0
0.0
0.6
(4.9)
(3.2)
(1.7)
0.0
0.0
0.0
(1.7)
0.0
50.0
0.0
50.0
0.9
4.0
25.5
30.4
(0.9)
46.0
(25.5)
19.6
200.0
1.0
199.0
Other
KBU Operating Costs - SMI Benefit Related

Reduction in Meter Sampling Costs Realized
Less: Meter Sampling Benefit Included
Net Meter Sampling Benefit
Meter Reading
Remote Disconnect / Reconnect
Other
Net Benefit
4.5
6.0
0.0
2.5
9.3
1.9
(2.0)
3.3
1.9
0.0
3.0
3.0
10.5
16.7
6.2
(4.9)
(4.9)
0.0
(14.4)
(1.9)
(1.5)
(17.8)
(0.0)
(1.7)
1.7
(14.4)
(1.9)
(1.5)
(16.1)
0.0
100.0
0.0
100.0
198.0
6.0
34.0
238.0
300.0
51.0
0.4
6.0
10.3
0.5
10.5
3.4
0.1
4.5
(6.9)
0.0
3.6
3.6
16.7
18.0
1.3
(6.0)
(6.0)
0.0
(22.3)
(2.1)
0.0
(24.4)
(6.0)
(6.0)
0.0
(26.4)
(4.5)
(1.8)
(32.7)
0.0
0.0
0.0
(4.1)
(2.4)
(1.8)
(8.3)
(198.0)
94.0
(34.0)
(138.0)
10.3
161.0
0.2
171.5
249.6
1.0
47.0
297.6
249.0
339.0
287.0
0.0
4.8
7.6
0.0
7.1
6.0
0.0
2.3
(1.6)
0.0
0.0
0.0
12.4
13.1
0.7
(5.5)
(5.5)
0.0
(20.4)
(1.1)
(0.3)
(21.8)
(5.5)
(5.5)
0.0
(20.4)
(1.4)
(0.4)
(22.2)
0.0
0.0
0.0
(0.0)
(0.3)
(0.1)
(0.4)
(239.3)
160.0
(46.8)
(126.1)
12.4
300.0
7.0
319.4
7.8
0.0
6.1
13.9
52.0
300.0
510.0
0.0
3.9
7.9
0.0
6.6
5.5
0.0
2.7
(2.4)
4.9
23.3
25.8
4.7
40.4
16.8
(0.2)
17.1
(9.0)
0.0
0.0
0.0
0.0
6.6
6.6
11.8
12.1
0.3
54.0
68.5
14.4
(4.5)
(4.5)
0.0
(20.4)
(0.8)
(0.3)
(21.5)
(4.5)
(4.5)
0.0
(20.4)
(1.4)
(0.3)
(22.1)
0.0
0.0
0.0
0.0
(0.6)
0.0
(0.6)
(25.8)
(23.3)
(2.5)
(63.0)
(4.0)
(0.6)
(70.2)
(25.0)
(25.0)
0.0
(81.7)
(9.2)
(4.0)
(94.9)
0.7
(1.7)
2.5
(18.7)
(5.2)
(3.4)
(24.8)
4.6
300.0
0.9
305.5
36.6
315.8
12.0
364.4
285.3
3.8
10.5
299.6
(248.7)
312.0
1.5
64.8
59.3
926.8
19.2
1005.3
741.6
14.8
123.1
879.5
(682.3)
912.0
(103.9)
125.8
(210.0)
359.0
637.5
(278.5)
1498.0
1486.5
11.5
B. SMI Energy Related Benefits (GWh)

Energy Savings
DSM Conservation *
Diversion Program Conservation **
Voltage Optimization
Total Energy Savings
Theft Reduction - Increased Energy Sales**
C. SMI Im pact on Capital Costs ($ m illions)

Meter Sampling - Failed Meter Samples
Load Research - Avoided capital replacement
Net Benefit
(3.5)
0.0
(3.5)
(0.4)
0.0
(0.4)
3.1
0.0
3.1
(1.7)
0.0
(1.7)
(1.7)
0.0
(1.7)
0.0
0.0
0.0
(2.4)
(1.4)
(3.8)
(2.4)
(2.2)
(4.6)
0.0
(0.8)
(0.8)
(1.4)
(0.4)
(1.8)
(1.4)
0.0
(1.4)
0.0
0.4
0.4
(1.0)
(1.3)
(2.3)
(1.0)
(1.3)
(2.3)
0.0
0.0
0.0
(10.0)
(3.1)
(13.1)
(5.9)
(2.2)
(8.1)
4.1
0.9
5.0
* DSM Conservation F2016 target based on Energy Visualization Portal Benefit only
** Theft Reduction - Increased Energy Sales and Diversion Program Conservation estimated based on analyses performed in F2016

Page 1 of 1
Appendix J
Glossary

December 21, 2016
Appendix J
Automated Data Collection System (ADCS)

Software that manages the metering network and processes high volume of interval-based meter
reads.
Clean Energy Act (CEA)
This Act guides government, BC Hydro and the British Columbia Utilities Commission in advancing
the Provinces sustainable energy vision.
Check Meters
Individual, self-contained, line-powered devices installed directly on distribution conductors that are
used to measure and record Amps and Power Factor on the BC Hydro distribution network.
Deployment Control Centre (DCC)
An operations centre established by SMI Program Deployment team in order to provide centralized
support and effectively manage the multitude of activities involved in the meter deployment.
Disaster Recovery Capability (DRC)
Established duplicates of core SMI components to reduce the impact from a potential future disaster
impacting any location that hosts the production instances of SMI infrastructure used to receive
and/or process revenue meter reads for customer billing.
Distribution System Metering Devices (DSMD)
Devices that are used to measure and record a range of energy load flow and are necessary to
accurately maintain an inventory of energy across the BC Hydro grid. Examples include SCADA and
Check Meter devices used in support of advanced theft detection and Energy Analytics Solution.
Energy Analytics Solution (EAS)
Solution that combines theft analytics and energy balancing with business processes by using
information from different systems to automate timely identification of potential energy losses.
The EAS technology performed advanced analytics and modeling, and visualizes the results.
Energy Visualization Portlet (EVP)
BC Hydro customer portlet application that provides timely feedback on energy consumption and
encourages conservation behavior to achieve savings under the BC Hydro Power Smart program for
residential and commercial customers.
Home Area Network (HAN)
A data communication network contained within a premise that allows customers to use devices,
such as in-home-display (IHD) and home energy monitors (HEM) devices, to track a real time energy
use at home. These devises communicate with smart meters to display energy feedback in real-time
to the users.
In-home Display (IHD) or Home Energy Monitor (HEM)
An energy monitoring device that can help BC Hydro customers to save energy and money by
enabling them to see an electricity use in real-time, in kilowatts, and dollars and cents.
Internet Protocol Version 6 (IPv6)
Advanced networking protocol for smart meters and the metering network. It increases
communication responsiveness between BC Hydros systems and the smart meters.
Meter Data Management System (MDMS)
Software that supports the use of meter reads data obtained over the air by ensuring that data is
accurate, complete, and useable before sending the data into BC Hydros corporate systems

Page 1 of 2

December 21, 2016
Appendix J
Multi-Protocol Label Switching (MPLS)

The SMI Program deployed MPLS technology that provides a shared infrastructure for telecom
connectivity on a province-wide scale. The MPLS Wide Area Network (WAN) carries BC Hydro
Corporate Services traffic (email, phone and data) between offices, stations and data centres.
Supervisory Control and Data Acquisition (SCADA)
System primarily used to acquire data and perform supervisory control to operate the electrical grid.
For the purpose of advanced theft detection the system is also configured to acquire additional
measurement data to support Energy Balancing capabilities across distribution feeders using
distribution equipment (e.g. distribution and substation reclosers, substation relays, bus voltage,
underground switch gear, voltage regulators, capacitor banks).
WiMAX
BC Hydros own WiMAX network service used for smart meter collectors to transport data from nearly
one million smart meters throughout BC Hydro service territory. This service is occurring primarily in
areas where BC Hydro has established WiMAX networks that can be leveraged to reduce cellular
service costs.

Page 2 of 2

BC Hdyro Smart Meters - FNL - RPT

Hochgeladen von

Dokumentinformationen

Originaltitel

Copyright

Verfügbare Formate

Dieses Dokument teilen

Dokument teilen oder einbetten

Freigabeoptionen

Stufen Sie dieses Dokument als nützlich ein?

Sind diese Inhalte unangemessen?

Copyright:

Verfügbare Formate

BC Hdyro Smart Meters - FNL - RPT

Hochgeladen von

Copyright:

Verfügbare Formate

Smart Metering & Infrastructure Program

Program Completion and Evaluation Report

December 21, 2016

Program Completion and Evaluation Report

Executive Summary ........................................................................................... 1

SMI Program Framework ................................................................. 12

Meter Choices Program Participation Breakdown As of

Program Completion and Evaluation Report

SMI Program Key Risks ................................................................... 23

Program Document List

Smart Metering & Infrastructure Program

Program Completion and Evaluation Report

BC Hydro customers have a new meter.

first five years.

providing only basic consumption information. The program allowed BC Hydro to

technology and telecommunications infrastructure.

Smart Metering & Infrastructure Program

Program Completion and Evaluation Report

were repaired during meter exchanges by a certified electrician at no cost to

wind power; and

electricity, energy savings and operating efficiencies.

success of this program.

actual implementation costs, benefits realized to date, as well as current

in benefits by fiscal 2033.

advancements in technology have reduced energy supply costs and as commodity

Smart Metering & Infrastructure Program

Program Completion and Evaluation Report

The SMI Program

repealed and replaced by section 17 of the CEA.

factors such as distance, electromagnetic interference or physical obstructions. As of

implementing energy analytics software to perform energy balancing and

BC Hydros service territory.

Commission (Commission) with respect to implementing the Governments policy

Meter Choices Program.

Smart Metering & Infrastructure Program

Program Completion and Evaluation Report

On March 6, 2014, the Lieutenant Governor in Council issued Direction No. 6

On March 6, 2014, the Lieutenant Governor in Council issued Direction No. 7

the SMI Regulatory Account.

SMI Regulatory Account;

to file with the Commission an application in relation to its Smart Metering

Smart Metering & Infrastructure Program

Program Completion and Evaluation Report

amortization incurred in fiscal 2011 in the SMI Regulatory Account. BC Hydro

quarterly updates on all SMI Program activities;

Fiscal 2014 Amended Revenue Requirements Application approved the

No. 6 authorized BC Hydro to defer to the SMI Regulatory Account its

Meter Choices Program

Order Nos. G-166-13, G-167-13, and G-186-13 dated October 9, 2013,

authorizing BC Hydro to include in its existing SMI Regulatory Account certain

Smart Metering & Infrastructure Program

Program Completion and Evaluation Report

review of BC Hydros Application for Approval of Changes Related to the Meter

Choices Program, filed on October 7, 2013;

Application of Commission Order Nos. G-167-13 and G-186-13;

Order No. G-50-14, dated March 28, 2014, disallowing a Reconsideration

Application of the Commission decision on an application for approval of

charges related to the Meter Choices Program to proceed to Phase 2; and

BC Hydros SMI Program has been an important foundational step in the

modernization of BC Hydros electricity system. To achieve effective program

execution and successful implementation, the Program was organized into

Releases 0 through 6. The scope of the releases was executed as follows:

Release 0 - Architecture and Execution Framework