SPS seeks the Commission’s authorization to acquire and implement grid modernization components that include Advanced Metering Infrastructure (“AMI”), Fault Location Isolation System Restoration (“FLISR”), and the Field Area Network (“FAN”) that allows AMI and FLISR to operate. As part of that authorization, SPS seeks approval of its proposed ratemaking treatment, which includes recovery of the costs associated with AMI, FAN, and FLISR through SPS’s proposed Grid Modernization Rider (“GMR”) and recovery of SPS’s remaining investment in its legacy meters. SPS plans to implement over $30 million in capital investment to implement AMI, FAN, and FLISR between 2022 and 2025.
SPS will provide Residential and Small Commercial customers the opportunity to opt-out of receiving an AMI meter. For customers who opt-out prior to receiving an AMI meter, the proposed one-time fee is approximately $200. For customers who opt-out after receiving an AMI meter, an additional trip charge will be included and the total one-time fee will be approximately $250. In addition, the opt-out costs include a recurring monthly fee for manual reading services that will be needed to support billing for opt-out meters. The proposed recurring monthly fee for customers that opt-out is $12.
SPS only seeks to recover costs through the GMR from customers who take service at a level below 69 kV, as at this time, SPS expects that AMI, FAN, and FLISR will primarily benefit those customers. However, the final terms of the GMR that may be approved by the Commission may differ from SPS’s proposal. In particular, costs recovered through the GMR may be charged to customer classes other than those included in SPS’s proposal.
|Meter roll-out 2022-2023|
|FAN||Deployment 2022-2023 with optimization and support of FLISR in 2024 and 2025|
|FLISR||Deployment, integration, and testing 2023-2025|
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