SMART METER TAMPERING

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1 TPPA 2014 ANNUAL MEETING E&O COMMITTEE MEETING SMART METER TAMPERING JULY 21, 2014 FERNANDO SÁENZ, P.E. ASST. GENERAL MANAGER & COO 1

2 PRESENTATION AGENDA Overview Prevention Tampering Fees Reporting Tampering Proactive Steps Signs of Tampering Questions 2

3 Full Service Utility OVERVIEW Electric single and multiply certificated areas Water/Wastewater Natural Gas 560 employees $167 million in operating revenue 3

4 OVERVIEW (CONT.) Electrical Customer Mix Residential 41,619 Commercial 4, AMI Meters 9,566 Mechanical Type Meter 36,231 Solid State Meters 4

5 PREVENTION Electric Industry Information City Ordinance Tampering Fees Looking for Signs of Tampering Reporting Tampering Reports Campaigns Meter Tampering Photos Resistors Back Billing and other related fees 5

6 PREVENTION (CONT.) Theft of service losses can erode anywhere from 0.5% to 3.0% of gross revenue (Edison Electric Industry Study, 1990) This would equate to approximately $500,000 to $3 million in lost revenue for BPUB A utility s competitive advantage is enhanced by ensuring that all revenue is accounted for and collected, since we can not depend on rate increases to offset losses Source: (Metering International Magazine Archive 1999 Issue 1 6

7 PREVENTION (CONT.) According to Metering International, 80% of positive theft cases are found in the residential segment and 20% in the commercial and industrial segment. However, 80% of revenue lost to theft is from the commercial and industrial segments Source: (Metering International Magazine Archive 2001 Issue 2, Energy Theft With A Spin On Change, hhtp:// 7

8 CITY ORDINANCE PREVENTION (CONT.) Sec Injuring, tampering with meters It shall be unlawful for any person other than a duly authorized employee of the city to alter, change, deface, remove, interfere with, open or in any other way molest any meter situated or being in the City and used in or for the supplying of any utility service to any consumer thereof in the city. (code 1971, 34-29) 8

9 FEE DESCRIPTION FEES Reconnection Fee $ Reconnect at pole $ Reconnect underground $ Unauthorized Access Fee $ Meter security lock removal $ Damaged Meter $ $ $ $ $ $ Installation/Replace Meter $ $ Seal Cut, Damaged/Removed $ Back Billing Up to 4 years TAMPERING FEES 9

10 REPORTING TAMPERING Employees Hi/Low reports Meter Readers (front line) Meter Servicemen Electric/Water Meter Shop Customers Hotline Website Account audits Employee random checks Investigate family account (tampered account relatives) 10

11 Reports PROACTIVE STEPS Cut-off for non-pay that have not re-connected service within 5 business days Low & zero consumption Trouble reports AMI Meter Information Voltage reported by meter Instantaneous Amps and Watts Voltage x Amps = Watts Internal temperature 11

12 PROACTIVE STEPS (CONT.) Presentation to employees Meter detection training for Meter Readers/Servicemen Association with neighboring utilities Routinely test meters Revisit previous meter tampering locations and review accounts Review both electric & water accounts Collateral Investigation Identification and investigation of related accounts 12

13 PROACTIVE STEPS (CONT.) Campaigns Fliers with bills Advertisements Refrigerator magnets Presentation to Key Accounts Presentation to Schools KGBT TV Channel 4 News KBSD TV Channel 17 City of Brownsville 13

14 SIGNS OF TAMPERING Broken seal on the socket cover Holes through a meter seal Meter upside down Straight connection at the weather head Bypass of meter by jumpers in meter socket Damaged parts visible in meter Meter exchange want their old meter back Bypass (upright position) Hole on lexan cover Resistors 14

15 SIGNS OF TAMPERING (CONT.) A resistor is installed to alter voltage used to calculate usage Small Inexpensive 15

16 SIGNS OF TAMPERING (CONT.) Resistor covered with tape or heat shrink cover same color as insulation Installed while meter is energized w/o detection Use battery to self- connect Sample Meters 16

17 THANK YOU! 17

18 QUESTIONS? 18

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