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ORDER NO. PSC -2018 -0435 -TRF -EI <br />DOCKET NO. 20180088 -EI <br />PAGE 5 <br />In response to Commission staff's data request, DEF clarified that if an opt -out customer <br />already has a non-communicating meter installed at the premises, the customer would not be <br />required to pay the $96.34 one-time set up fee as DEF would not incur the cost for the non- <br />standard meter installation. This provision was not reflected in the original opt -out tariff fled by <br />DEF; therefore, DEF filed a revised tariff to clearly state when the one-time fee would not be <br />assessed. <br />Monthly Surcharge <br />The monthly surcharge to take service under the opt -out tariff is $15.60, which reflects a <br />combination of upfront IT related and ongoing meter reading related service costs. DEF states <br />that its upfront IT costs are predicted to be $374,014. This is the estimated cost to update the <br />customer system and change business processes to accommodate the opt -out tariff program. DEF <br />used a 5 -year recovery period for its IT costs to derive monthly IT related costs of $4.58 per <br />customer, which -is the same recovery period we approved for FPL's opt -out tariff. <br />After installation of a non-standard meter, the only ongoing costs to the Utility will be the <br />monthly meter readings, which the Utility estimates to be $11.02 per customer. These costs <br />reflect the meter reading position rates and the vehicle rates, both for an estimated 20 minutes <br />per meter reading. In response to Commission staff's data request, DEF stated that assuming that <br />opt -out customers are spread across the Utility's service territory, it is estimated to take 20 <br />minutes to travel to the customer premises, get out of the vehicle, read the meter, log the read, <br />and return to the vehicle to continue on the route. <br />Customer Notice and Deployment <br />The Utility states that AMI deployment is set to begin November 2018; therefore, DEF is <br />requesting that the opt -out tariff be available the first billing cycle of December 2018. Two <br />weeks prior to a customer receiving a smart meter, DEF shall mail a postcard to the customer <br />informing them of the meter exchange and providing more information on smart meters. The <br />postcard shall include a toll-free number to call for questions regarding smart meters and the <br />option to opt out. Information regarding smart meter deployment and the opt -out tariff shall also <br />be on the Utility's website. <br />Reporting <br />Within three months after the AMI smart meter deployment is completed, December <br />2021, DEF shall report to this Commission on the costs of the program, revenues, and actual <br />participation. We find that three months is a reasonable time to allow DEF to prepare and file a <br />report in this docket, which shall happen no later than March 31, 2022. If AMI smart meter <br />deployment is significantly delayed beyond the Utility's anticipated completion date, the Utility <br />shall notify this Commission with a filing in this docket. <br />It is noted that FPL is required to file annual smart meter progress reports; however, <br />DEF, in response to Commission staff's data request, stated that it does not believe a formal <br />N,5 <br />