A successful transition to a 21st Century Electricity System requires consideration of a range of issues that will ultimately redefine the regulatory framework and utility business model while creating new opportunities for third-party providers and customers to contribute to the operation of the electricity system. In this fifth in a series published by Utility Dive based on AEE's regulatory issue briefs, AEE explores data access to enable customers to make choices about their energy use with the help of non-utility companies.
Data is the lifeblood of today’s economy, driving change and stimulating innovation in every industry from banking to healthcare. Although the electricity industry has lagged behind in taking advantage of the many benefits that a data-rich environment can provide, the growing deployment of smart meters is changing that. Smart meters — technically, advanced metering infrastructure — provide granular customer and electricity system data that support innovation and creativity that utilities and advanced energy companies can use to bring the electricity industry into the information age.
Timely and convenient access to granular energy usage data can help customers track and manage their energy use; equip utilities and competitive suppliers with the information necessary to develop new and innovative customer offerings; empower third-party (non-utility) companies to animate the market for distributed energy resources (DERs); and enable utilities to transition to a more customer-focused culture and business model. While the amount of available data has increased, it remains largely in the hands of utilities, so the question becomes: How can utilities best utilize all this data and make it available – and useful – to customers and third parties?
Data access takes three basic forms: customer-specific usage data; aggregated, anonymized customer data; and utility system data. Each has its place in a modern electricity system.
| What is it? | Why is it important? | Examples | |
|---|---|---|---|
| Customer-specific usage data | Data commonly found on a utility bill, such as account numbers, meter numbers, rate class, location on the grid and retail providers used. Depending on metering capability, can include daily, hourly, sub-hourly and/or near real-time energy usage data. | It allows customers to track and manage their energy usage, but the real value will come from enabling utilities and third-party DER and energy service companies, with customer consent, to process the data, providing customized and actionable insights to customers. | A retail supplier can offer pricing based on individual usage profiles to optimize the energy market for the consumer; a solar photovoltaic installer can better pinpoint which customers would benefit most from a rooftop array. |
| Aggregated, anonymized customer data | Customer-specific usage data that is aggregated and anonymized to ensure privacy. | Gaining access to this data through the utility would provide a cost-effective means for third parties to enhance their DER products and services, and in turn provide more value to their customers and to the grid. | A behavioral energy efficiency company could develop new and innovative products and services that apply broadly to targeted customer classes or locations. |
| Utility system data | Information on circuit-level distributed generation (DG) hosting capacity or locations of the grid with capacity constraints or power quality problems. | Can help providers determine the best places to locate DER and respond to system needs with cost-effective DER solutions. Also enables utilities to develop targeted solicitations. | An energy storage company could use the data to propose a project in a highly congested area that would be cheaper than building new traditional “poles and wires” infrastructure in that area. |
While the benefits of increased data access are clear and numerous, there are several key questions to consider to ensure smooth implementation of data access policies and regulations:
Many states have already or are currently grappling with these questions.
Over the past few years, the Public Utility Commission of Texas has been investigating changes to Smart Meter Texas (SMT) — a web portal that provides data access to customers and authorized competitive service providers — through several dockets (42786, 46204 and 46206). Most recently, commission staff filed a formal petition on August 16, 2017, to open a new docket 47472 to determine what changes, if any, should be made to the existing SMT requirements (AEE state partner the Texas Advanced Energy Business Alliance has been involved and a final decision on a proposed settlement is expected in early May).
In July 2017, the Illinois Commerce Commission issued an order encouraging utilities to consider adopting an Open Data Access Framework to enable a marketplace for new products and services and utilize investments made in advanced metering infrastructure. In an August Resolution (E-4868), the California Public Utilities Commission approved a new click-through authorization process that streamlines, simplifies and automates the process for customers to authorize their utility to share their energy-related data with third-party demand response providers.
Experience from early adopting states suggests that the following steps can help regulators, policymakers and utilities design and implement a process that best fits their specific needs and circumstances:
Timely and convenient access to utility and customer data is a necessary and vital component of moving the electric utility industry into the digital age, unlocking value and engaging customers in new ways. The sooner that all participants in the electric industry can access, analyze and act upon this data, the faster it will be able to stimulate innovation and drive toward a modern, high-performing grid — and the sooner electric utilities, advanced energy companies and customers will benefit.