METROPOLITAN EDISON COMPANY - Pennsylvania Public Utility ...

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In 2009, the residential customer cost per meter read for Met-Ed, Penelec, andPenn Power was $0.70, $0.94, and $0.63, respectively, as shown on Exhibit XI-8,compared with $0.74, $0.82, and $0.75, respectively, in 2005. The FE-PA Companiesrerouted a total of 977,797 meters in 2008 and 2009, 671,560 meters in 2008 and306,237 meters in 2009, utilizing the rerouting capabilities of the FieldNet system (seeExhibit XI-9 for EDC breakdown). Reportedly, the rerouting project and adjustments tothe FE-PA Companies routes caused the residential customer cost per meter read toincrease from $0.81 in 2007 to $0.84 in 2008. FirstEnergy indicated that the reroutingat first caused inefficiencies (i.e., productivity decreases) until the meter readersbecame familiar with the new routes. However, as shown in Exhibit XI-8, the residentialcustomer cost per meter read decreased as intended to $0.79 in 2009.Exhibit XI-8FE-PA CompaniesResidential Customer Cost Per Meter Read2007-2009Operating Company 2007 2008 2009Met-Ed $0.72 $0.75 $0.70Penelec $0.98 $1.03 $0.94Penn Power $0.59 $0.62 $0.63Totals $0.81 $0.84 $0.79Source: Data Request Response CS-9, Attachment BExhibit XI-9FE-PA CompaniesNumber of Residential Customer Meter Reading Routes Rerouted2008-2009Operating Company 2008 2009Met-Ed 103,048 176,253Penelec 568,512 57,451Penn Power 0 72,533Totals 671,560 306,237Source: Data Request Response CS-9, Attachment AOn August 14, 2009, the FE-PA Companies filed a Joint Petition with theCommission requesting approval of FirstEnergy’s Smart Meter TechnologyProcurement and Installation Plan. The Plan outlines the FE-PA Companies’ strategiesand programs in order to implement and deploy smart meters in accordance with Act129. The FE-PA Companies submitted a single comprehensive plan that applies to allthree EDCs. The FE-PA Companies’ long-term plan anticipates a 15-year full scaledeployment of smart metering across their service territories. The FE-PA Companies’plan to utilize the first 24 months (“Assessment Period”) of the 30-month grace periodauthorized by the Commission to create a business plan resulting in the submission of adeployment plan to the Commission. At the end of the Assessment Period, the FE-PA- 84 -
Companies would submit a supplement to the Plan (“Deployment Plan”) to theCommission that sets forth in detail the FE-PA Companies’ plan for full scaledeployment of smart meters. The FE-PA Companies’ anticipated that the AMI vendorand technology selection process would start in September 2010 and continue foralmost 10 months. The FE-PA Companies indicated that they would conduct anevaluation of the current legacy systems to assess network design. The network designtask was expected to be commenced in January 2011, and be completed before theend of 2013.In summary, the FE-PA Companies should continue to reduce the cost of readingmeters through rerouting and the implementation of smart meter technology. From2007 to 2009, FirstEnergy has rerouted many of its residential customer meters in theFE-PA Companies’ service areas and continued rerouting is planned for 2010. Suchrerouting, along with the implementation of smart meter technology, should help bringthe FE-PA Companies’ costs more in line with those of other EDCs. From 2005 to2009, the residential customer cost per meter read decreased by $0.04 for Met-Ed and$0.12 for Penn Power, but increased by $0.12 for Penelec. Therefore, based on485,668, 505,564, and 139,979 residential meters in use at December 31, 2009,respectively, for Met-Ed, Penelec and Penn Power, changes in annual meter readingcosts experienced from 2005 to 2009 was a $223,121 decrease for Met-Ed, a $728,012increase for Penelec, and a $201,570 decrease for Penn Power. Further improvementefforts should be under taken at Penelec to achieve a similar realized reduction in costper read as experienced at Met-Ed from 2005 to 2009 (a decrease of $0.04 per read). IfPenelec were to experience a realized improvement of a $0.04 decrease per read fromits 2005 performance level (i.e., $0.82 per read), Penelec would realize a performanceof $0.78 per read, which compared to Penelec’s 2009 performance of $0.94 per readwould be a potential improvement of $0.16 per read from the 2009 level orapproximately $971,000 annually ($0.16 x 505,564 meters x 12 months). In addition, asdiscussed in Follow-up Finding and Conclusion No. XI-4, implementation of AMItechnology would also enhance the revenue protection strategy of the FE-PACompanies.Staff’s Follow-up Recommendation – Complete the rerouting of the FE-PACompanies’ meter reading routes and explore the benefits of expediting largescale deployment of smart meter technology.- 85 -
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METROPOLITAN EDISON COMPANYPENNSYLV
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• Support Services• Human Resou
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• Developed and implemented forma
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FIRSTENERGY PENNSYLVANIA COMPANIESM
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III. AFFILIATE INTERESTSBackground
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In addition, subsidiary or related
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BWG recommended that a detailed, wr
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management. Other potential uses of
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IV. CORPORATE GOVERNANCEBackground
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V. FINANCIAL MANAGEMENTBackground -
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the internal audit was to determine
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Committee citing the internal contr
Page 40 and 41: VI. ELECTRIC RELIABILITYBackground
Page 42: Exhibit VI-1Metropolitan Edison Com
Page 45 and 46: provide additional details to the C
Page 47 and 48: Exhibit VI-6FirstEnergy Pennsylvani
Page 49 and 50: All three FE-PA Companies have had
Page 51 and 52: FirstEnergy is following the right
Page 53 and 54: Company, and The Toledo Edison Comp
Page 55 and 56: technicians. These strategies are u
Page 57 and 58: VIII. EMERGENCY PREPAREDNESSBackgro
Page 59 and 60: Routine periodic updating of the em
Page 61 and 62: Follow-up Finding and Conclusion No
Page 63 and 64: old excess inventory. Spare invento
Page 65 and 66: controls were automated. Moreover,
Page 67 and 68: Exhibit IX-6FE-PA CompaniesPercenta
Page 69 and 70: FE-PA Companies were unable to iden
Page 71 and 72: Staff’s Follow-up Recommendation
Page 73 and 74: Exhibit X-6Metropolitan Edison Comp
Page 75 and 76: Prior Recommendation - Develop a co
Page 77 and 78: Therefore, BWG suggested that First
Page 79 and 80: XI. CUSTOMER SERVICEBackground - Th
Page 81 and 82: Exhibit XI-2FE-PA CompaniesPercenta
Page 83 and 84: Exhibit XI-5FE-PA Companies Compare
Page 85 and 86: Exhibit XI-7FE-PA Companies Compare
Page 87 and 88: Follow-up Finding and Conclusion No
Page 89: uilding, in an effort to protect re
Page 93 and 94: 3. The "four-fifths" rule (underuti
Page 95 and 96: Met-Ed has female underutilization
Page 97 and 98: Exhibit XII-4Page 1 of 2FirstEnergy
Page 99 and 100: The number of years that FirstEnerg
Page 101 and 102: FE-PA Companies do track purchases
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