WCPSC - IDACOMM BPL Status Presentation


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  • How can we re-start the animation of the IDACOMM logo if the title slide is already one the screen?
  • Please create a clean table format for the TOC.
  • Sorry, I changed some text and screwed up the animation here.
  • The network operations center text at the bottom should move to the top above the three boxes indicating it crosses or is available for all the applications running on the network. Just like the “regulatory expertise” box at the bottom of the business organization slide.
  • IDACOMM’s vice president, BPL deployment is a member of the executive committee and our CEO is joining the board of directors of UPLC in the second quarter of 2005
  • Trying to show execs that there are many retail services like broadband and voice that make money and there are utility applications that save them money. The icons at the top represent the customer groups these products can be sold to.
  • Just create two nice tables.
  • WCPSC - IDACOMM BPL Status Presentation

    1. 1. Broadband over Powerline An Emerging Market Opportunity Doug McMurray Manager – Business Development [email_address]
    2. 2. Presentation Agenda <ul><li>IDACOMM Overview </li></ul><ul><li>Introduction to BPL </li></ul><ul><li>Regulatory Status </li></ul><ul><li>BPL Market Applications </li></ul><ul><li>BPL Benefits </li></ul><ul><li>Conclusion </li></ul>
    3. 3. IDACOMM Background <ul><li>IDACOMM is the non-regulated subsidiary of IDACORP (NYSE: IDA) </li></ul><ul><li>Operates and Manages Multiple Networks </li></ul><ul><ul><li>Fiber/Fixed Wireless </li></ul></ul><ul><ul><li>30 DSL Markets </li></ul></ul><ul><ul><li>Existing BPL Deployments </li></ul></ul><ul><li>Scalable Centralized Operations </li></ul><ul><ul><li>Marketing and customer support </li></ul></ul><ul><ul><li>Technical Support & Network Operations </li></ul></ul><ul><li>Experienced Senior Management Team </li></ul><ul><ul><li>Fortune 500 </li></ul></ul><ul><ul><li>Entrepreneurial/ IPO/ M&A </li></ul></ul><ul><ul><li>Emerging Technology Deployment </li></ul></ul><ul><ul><li>Fiber Network Design and Management </li></ul></ul><ul><ul><li>Call Center Operations </li></ul></ul><ul><ul><li>Utility Financial Management </li></ul></ul><ul><ul><li>Regulatory/ PUC/ FCC/ FERC Experience </li></ul></ul><ul><ul><li>Complex System Integration </li></ul></ul>
    4. 4. IDACOMM Business Organization <ul><li>Fiber Optic CLEC </li></ul><ul><li>Metro Area Fiber Networks </li></ul><ul><li>36 Customers </li></ul><ul><ul><li>Fortune 1000, Carrier & Govt </li></ul></ul><ul><li>Existing Product Lines </li></ul><ul><ul><li>Fiber to Anchor Tenant </li></ul></ul><ul><li>New Product Lines </li></ul><ul><ul><li>Business Voice </li></ul></ul><ul><ul><li>Voice over IP </li></ul></ul><ul><ul><li>QOS, LNP, E911, 411 </li></ul></ul><ul><ul><li>Integrated Voice & Data </li></ul></ul><ul><li>Operating Since 1985 </li></ul>Regulatory Expertise – FCC, PUC, FERC, NARUC, EEI, WEI Licensed Facility Based CLEC (Multiple States) OSS/BSS – Back office Integration – Branded Customer Support, Unified Billing, Technical Support, Network Operations Center <ul><li>Broadband ISP – Retail Channel </li></ul><ul><li>35,000 Customers </li></ul><ul><ul><li>Residential & Enterprise </li></ul></ul><ul><li>Product Lines </li></ul><ul><ul><li>DSL / ATM / Frame Relay </li></ul></ul><ul><ul><li>Wireless & Dial up </li></ul></ul><ul><ul><li>Hosting </li></ul></ul><ul><ul><li>Wholesale (Back Office) </li></ul></ul><ul><ul><li>Billing, Customer Care </li></ul></ul><ul><ul><li>ISP Marketing & Operations </li></ul></ul><ul><li>Operating Since 1993 </li></ul><ul><li>BPL Services LLC </li></ul><ul><li>Technical & Market Trials </li></ul><ul><ul><li>Idaho Power Company </li></ul></ul><ul><ul><li>Center Point Energy </li></ul></ul><ul><ul><li>TXU Electric Delivery </li></ul></ul><ul><li>Vendor Relationships </li></ul><ul><ul><li>Ambient | Amperion </li></ul></ul><ul><ul><li>Mitsubishi | Motorola </li></ul></ul><ul><li>Professional Services </li></ul><ul><ul><li>Network Design & Deployment </li></ul></ul><ul><ul><li>BPL & IP Integration </li></ul></ul><ul><li>Strategic Partnerships </li></ul><ul><ul><li>IBM | EarthLink </li></ul></ul><ul><ul><li>Broadsoft | Cisco </li></ul></ul>
    5. 5. Broadband Over Powerline (BPL) <ul><li>It’s Broadband Technology that uses “Existing Utility Electric Wires” born in the 1950’s as PLC (Power Line Carrier) </li></ul><ul><li>Most Utilities can leverage their networks to create new services and revenues </li></ul><ul><li>The FCC and PUC’s are fully supporting BPL as a Direct Competitor to Cable and DSL </li></ul><ul><ul><li>FCC Report and Order, October 14, 2004 </li></ul></ul><ul><ul><li>FERC Supports FCC, encouraging regulated & non-regulated solutions </li></ul></ul><ul><ul><li>Proposed UPLC Managing National BPL Data Base </li></ul></ul><ul><ul><li>NARUC BPL Task Force issued White Paper, February 15, 2005 </li></ul></ul><ul><li>IDACOMM is an Emerging BPL Technology & Market launch leader focused on a select few Utility Partners in North America </li></ul>
    6. 6. Utility Interest in BPL (Source UPLC)
    7. 7. IDACOMM Service Delivery Architecture Voice Data Bundle $30-$40 mo. Video in 2005. 200 mbps Medium Voltage 25 mbps Low Voltage IDACOMM OC-48 SONET Core IDACOMM Network Operations Center Network Element Management | Network Security Management | Outage Response Video & VOD Voice (Local & Long Distance) Data & Internet ISP Backoffice Authentication Email Systems Web Systems Billing & Credit Voice Gateway Soft Switch Feature Server 911 / 411 Services Long Distance Carrier VOD Server Video Encoder Application Server Digital Rights Management
    8. 8. Broadband Over Powerline IDACOMM Metro Fiber Ring Architecture Internet Data Video Each site supports multiple customers
    9. 9. Creating a New Industry IDACOMM is diligently working within the industry to educate, inform, develop standards, and lead the successful creation of a new industry and market.
    10. 10. BPL Regulatory Status <ul><li>FCC </li></ul><ul><ul><li>New rules for BPL operations promote deployment while protecting radio licensees from interference </li></ul></ul><ul><ul><ul><li>BPL is an unlicensed operation </li></ul></ul></ul><ul><ul><ul><li>Low probability of interference from BPL operating at existing emission limits </li></ul></ul></ul><ul><ul><ul><li>Safeguards established to mitigate interference, if it occurs. </li></ul></ul></ul><ul><ul><ul><li>Measurement guidelines: consistent and repeatable </li></ul></ul></ul><ul><ul><li>FERC and NTIA strongly support FCC rules </li></ul></ul><ul><ul><li>FCC deliberately avoids regulation of BPL services and infrastructure. </li></ul></ul><ul><ul><li>Petitions for Reconsideration pending </li></ul></ul>
    11. 11. BPL Regulatory Status <ul><li>States </li></ul><ul><ul><li>NARUC BPL Task Force Report identifies regulatory issues; advocates light-handed regulation </li></ul></ul><ul><ul><ul><li>Cost & Revenue Allocation </li></ul></ul></ul><ul><ul><ul><ul><li>Incremental v. Fully Allocated Costs </li></ul></ul></ul></ul><ul><ul><ul><li>Affiliate Transactions </li></ul></ul></ul><ul><ul><ul><ul><li>Structural or functional separation </li></ul></ul></ul></ul><ul><ul><ul><li>Easement & Rights of Way </li></ul></ul></ul><ul><ul><ul><ul><li>Studying possible best practices </li></ul></ul></ul></ul><ul><ul><ul><li>Pole Attachments </li></ul></ul></ul><ul><ul><ul><ul><li>Assessing access/rents </li></ul></ul></ul></ul><ul><ul><ul><li>Open Access </li></ul></ul></ul><ul><ul><ul><ul><li>Negotiated access for nascent industry </li></ul></ul></ul></ul><ul><ul><ul><li>USF and other Telephone Regulations </li></ul></ul></ul><ul><ul><ul><ul><li>Supports technology neutral regulations, if they apply at all. </li></ul></ul></ul></ul><ul><ul><li>Some states introduce pro-BPL legislation, clarifying utility regulations </li></ul></ul><ul><ul><li>Anti-muni broadband bills could restrict BPL </li></ul></ul><ul><ul><ul><li>PA, FL, CO, IA, NE, TX </li></ul></ul></ul>
    12. 12. Broadband Policy Trends <ul><li>Regulatory Classification </li></ul><ul><ul><li>Supreme Court: Is cable modem a telecom or information service? </li></ul></ul><ul><ul><li>FCC: Are all wireline broadband internet access platforms information services? </li></ul></ul><ul><li>Jurisdiction </li></ul><ul><ul><li>FCC: Should states have jurisdiction over broadband, VoIP? </li></ul></ul><ul><ul><li>Congress: Should states/municipalities have jurisdiction over broadband/IPTV </li></ul></ul><ul><li>IP Enabled Services </li></ul><ul><ul><li>FCC: Broad proceeding examines all issues for everything IP. </li></ul></ul>
    13. 13. BPL Opportunity <ul><li>High speed data </li></ul><ul><li>VoIP & VoD </li></ul><ul><li>Home energy management </li></ul><ul><li>Home Security & Networking </li></ul><ul><li>Smart appliance </li></ul><ul><li>Smart Home Networks </li></ul><ul><li>Video conferencing </li></ul>Retail Applications <ul><li>Intelligent grid </li></ul><ul><li>Homeland Security & Monitoring </li></ul><ul><li>Automatic meter reading </li></ul><ul><li>Capacitor control </li></ul><ul><li>Demand prediction </li></ul><ul><li>Distribution transformer overload analysis </li></ul><ul><li>Proactive Customer Notification </li></ul>Utility Applications BPL, Fiber, Wireless, etc. Infrastructure Utility Service Territory An All IP Network
    14. 14. Consumer Value <ul><li>BPL Access vs. DSL </li></ul><ul><li>BPL – Up to 4x faster </li></ul><ul><ul><li>Current Platform (3 – 6 MB) </li></ul></ul><ul><ul><li>Next Generation (16 – 22 MB) </li></ul></ul><ul><li>Price Differential </li></ul><ul><ul><li>Up to 40% less expensive on Data </li></ul></ul><ul><ul><li>1 MB for $24.95 </li></ul></ul><ul><ul><li>ISP is included in base price! </li></ul></ul><ul><li>Bundle Services (Data & VoIP) </li></ul><ul><ul><li>BPL = $34.95 - $44.95 </li></ul></ul><ul><ul><li>DSL = $54.95 - $64.95 </li></ul></ul><ul><li>BPL Access vs. Cable </li></ul><ul><li>Bandwidth Scalability </li></ul><ul><ul><li>1 to 10 Mbps solutions (2x Cable) </li></ul></ul><ul><li>Price Differential </li></ul><ul><ul><li>$24.95 vs. $39.95 to $54.95 </li></ul></ul><ul><ul><li>ISP Services already in base price! </li></ul></ul><ul><li>Bundled Services </li></ul><ul><ul><li>Carrier Class Voice Services </li></ul></ul><ul><ul><li>Quadruple Play vs. Triple Play </li></ul></ul>
    15. 15. BPL Internal Applications Overview <ul><li>On the Grid </li></ul><ul><li>Asset Management </li></ul><ul><ul><li>Power outage notification </li></ul></ul><ul><ul><li>Predictive maintenance </li></ul></ul><ul><li>Systems Optimization </li></ul><ul><ul><li>Enhanced SCADA </li></ul></ul><ul><li>At the Premises </li></ul><ul><li>Advanced Metering </li></ul><ul><ul><li>AMR </li></ul></ul><ul><ul><li>Remote Connect/Disconnect </li></ul></ul><ul><li>Load Management </li></ul><ul><ul><li>Energy management </li></ul></ul><ul><li>Automatic meter reading </li></ul><ul><li>Capacitor control </li></ul><ul><li>Copper wire system replacement </li></ul><ul><li>Demand prediction </li></ul><ul><li>Detection and diagnosis of events at capacitors and regulators </li></ul><ul><li>Distribution transformer overload analysis </li></ul><ul><li>Line testing </li></ul><ul><li>Outage localization and fault characterization </li></ul><ul><li>Phase loss detection </li></ul><ul><li>Power quality monitoring </li></ul><ul><li>Safety check for isolated circuits </li></ul><ul><li>SCADA delivery </li></ul><ul><li>Substation monitoring </li></ul><ul><li>URD outage diagnosis </li></ul>Utility Applications
    16. 16. At the Premises Applications Key Drivers <ul><li>AMR </li></ul><ul><ul><li>Improved demand side information and consumer feedback </li></ul></ul><ul><ul><li>Regulators desire more reliability and better demand management </li></ul></ul><ul><li>Load Mgmt </li></ul><ul><ul><li>Energy costs spiking </li></ul></ul><ul><ul><li>LM technology maturing and equipment costs decreasing </li></ul></ul><ul><ul><li>Environmental issues (e.g., green power) </li></ul></ul><ul><ul><li>Good business and good PR with the communities that utilities serve. </li></ul></ul>
    17. 17. On the Grid Applications Key Drivers cont’d <ul><li>Asset Management </li></ul><ul><ul><li>Northeast Blackout </li></ul></ul><ul><ul><ul><li>Reliability, maintenance </li></ul></ul></ul><ul><ul><li>Stray voltage </li></ul></ul><ul><li>Systems Optimization </li></ul><ul><ul><li>Visionary smart grid efforts by EPRI and CEA </li></ul></ul><ul><ul><li>Enormous potential cost-savings opportunity from these applications </li></ul></ul>
    18. 18. The Value of AMR Revenue Enhancement Value in Dollars Uses of Common Information Tradition AMR Intelligent Grid w/BPL Cost Reduction And Improved Customer Satisfaction <ul><li>Traditionally, the business case for AMR was too narrowly focused. </li></ul><ul><ul><li>Largely revenue cycle services oriented </li></ul></ul><ul><ul><li>Predominately focused on meter reading cost reduction </li></ul></ul><ul><ul><li>Remote connect/disconnect </li></ul></ul><ul><li>Demand Forecasting </li></ul><ul><li>Load Shedding </li></ul><ul><li>Time of use billing </li></ul><ul><li>Theft detection </li></ul><ul><li>Load profiling </li></ul><ul><li>Outage detection </li></ul><ul><li>Detection/diagnosis of events at capacitors and regulators </li></ul><ul><li>SCADA delivery </li></ul><ul><li>Microwave replacement </li></ul><ul><li>Revenue generating services (e.g. Security, etc.) </li></ul><ul><li>Deploy demand monitoring/control within home </li></ul><ul><li>Support for distributed generation </li></ul>Several New Forces are Impacting AMR Business Value: Energy and Home Control Solutions Distribution Asset Optimization Demand Response Mgt. Revenue Cycle Services
    19. 19. Key Drivers Going Forward <ul><li>Internal Applications </li></ul><ul><ul><li>Increasingly important for the business case </li></ul></ul><ul><ul><li>Gating factor for utilities </li></ul></ul><ul><li>Standards </li></ul><ul><ul><li>Competing considerations: </li></ul></ul><ul><ul><ul><li>Speed to market </li></ul></ul></ul><ul><ul><ul><li>Certainty </li></ul></ul></ul><ul><ul><ul><li>Safety </li></ul></ul></ul><ul><ul><ul><li>Future-proofing technology </li></ul></ul></ul><ul><ul><li>Efforts underway </li></ul></ul><ul><ul><ul><li>IEEE </li></ul></ul></ul><ul><ul><ul><li>HomePlug </li></ul></ul></ul><ul><ul><ul><li>Universal Powerline Alliance </li></ul></ul></ul><ul><ul><ul><li>CE Powerline Alliance </li></ul></ul></ul>
    20. 20. Industry Business Models for Utility’s Utility Net Income Share Capital Contribution Scale Landlord Model $ - M $MM $ + M 8% 15% 25% <ul><li>10 Yr Exclusive Agreements (Renewable) </li></ul><ul><li>IDACOMM is managing partner </li></ul><ul><li>IDACOMM will build and finance </li></ul>Developer Model
    21. 21. BPL Benefits Utility Applications Operational Efficiencies Reduced Expenses Improved SAIDI/SAIFI Improved Outage Management Maintenance Savings Pervasive IP Network Shareholder Benefit Share of Net Income Community Stewards Consumer Benefit Additional Choices/Competition More Flexibility Rate Payer Relief Access Fees Pole Attachment Fees Installation Fees Electrical Usage Fees Community Stewardship Benefits to the Utility and Consumer are provided across various stakeholder groups
    22. 22. Conclusions <ul><li>BPL in the U.S. continues to grow with support from public policy makers. </li></ul><ul><li>Internal applications are in development and will be critical to utility adoption and widespread deployment of BPL </li></ul><ul><li>Standards efforts coalescing under IEEE </li></ul><ul><li>BPL is a viable and affordable technology </li></ul><ul><li>Emerging Technology – Regulate with a delicate hand </li></ul><ul><li>Win/Win situation </li></ul><ul><ul><li>All parties involved benefit…Rate Payer, Utility and Regulatory </li></ul></ul>
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