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Preliminary Analysis of AMI Business Case
Southern California Edison

The document (filed Oct 22, 2004) is the filing of the Southern California Edison (SCE)'s Advanced Metering Infrastructure (AMI) Business Case Preliminary Analysis before the Public Utilities Commission of the State of California. It comprises the following 4 volumes.

Volume 1 – Vision Statement, Summary of Preliminary Analysis, and Policy Considerations (28pp)
Volume 2 – Approach and Business as Usual Case Analysis, General (78pp)
Volume 3 – Analysis of Full Deployment Business Case Scenarios (178pp)
Volume 4 – Preliminary Analysis of Partial Deployment Scenarios (140pp)

Purpose of Volume 1 is to describe our underlying management philosophy and business vision, plus overarching policy considerations that will guide any deployment of Advanced Metering Infrastructure (AMI), as required by the Administrative Law Judge and Assigned Commissioner’s Ruling Adopting a Business Case Framework for Advanced Metering Infrastructure issued on July 21, 2004 (Ruling). In Section II of this volume, we describe the business vision that helped shape our analysis of the costs and benefits associated with a full or partial deployment of AMI. Consistent with the Ruling, we also address our view of expected regulatory decisions and expectations of the future business and financial environment, as well as the potential large scale deployment risks that will have a fundamental bearing on the costs and benefits of AMI. Equally important as those items identified in the Ruling, we discuss in our business vision the expected operational and financial impacts that a wide-scale deployment of AMI will have on our customers during the Ruling’s sixteen-year analysis period. In Section III, we set forth the preliminary results of our analysis to date. In this section, we summarize the total costs, total benefits, and net present value of each of the twenty-three unique business case scenarios that we have preliminarily analyzed and described in detail in Volumes 3 (full deployment) and 4 (partial deployment). This section also provides our observations on the results of the cost-benefit analysis as related to the potential for the deployment of AMI. Section IV of this volume sets forth our overarching policy considerations regarding the deployment of AMI. Specifically, this section discusses what events need to occur for AMI to be successful, including necessary policies to ensure that reliable demand response benefits materialize and that significant constraints and uncertainties are resolved.

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