Today’s utility industry is facing a variety of evolutionary changes that have created challenges for the existing infrastructure. Gas Distri-bution companies, in particular, are finding it necessary to respond on a variety of fronts. In each case, the solution typically includes the uti-lization of new systems and proce-dures that will enhance efficiencies while also improving the qual-ity of the operational objectives.

Areas of concern include:

Consolidation of Distribution Companies – In the five-year period from 2000-2005, the utility industry has seen more mergers and acquisitions than in the previous 15 years. Distri-bution companies are no longer limited to gas distribution, but are incorporating electrical dis-tribution and gas transmission, as well. Trends in the industry include fewer and much larger super-regional generation and

•

distribution companies, with greater fusion of upstream and downstream energy.

Competitive Pressures to Im-prove Customer Service – As utilities implement custom-er information systems, the technology requires that the gas measurement data arrive in a near “real-time” environ-ment, to both the system and to their web environment, in as seamless a manner as possible.

Sarbanes-Oxley – Utili-ties are implementing Stan-dard Operating Procedures (SOPs) for all their depart-ments, and gas measurement oversight includes procedures implemented for “validating” volumetric information. Utili-ties gas measurement groups are implementing SOPs and gas measurement systems to assure that measurement data is processed in a docu-mented, auditable system.

•

•

PUC Requirements: Pub-lic Utility Commissions (PUCs) are requiring more reporting on “lost and un-accounted for gas” (LUAF). Some states’ PUCs have set maximum “desired” LUAF guidelines; utilities are re-sponding by providing an “auditable” gas measurement database that provides a tracking and review process.

Distribution company fo-cus has been accounting and billing for volumes, rather than gas measurement da-tabases for volumes, energy and gas quality. Distribu-tion companies have typi-cally implemented “gas ac-counting applications” such as Advanced/Automated Meter Reading systems (AMR), Meter Change Programs, Domestic Me-ters, and Commercial Me-ters, but not necessarily gas

•

•

IT S

potl

igh

t

21st Century Data ManagementMeeting the challenges of today’s gas distribution companies

by Kimble Grafton, Mobile Gas, Mike Squyres, Flow-Cal and

Ardis Bartle, APEX Measurement

As published in Gas and Pipeline Technology,

March, 2007

Page 1

measurement validation ap-plications. Recent changes, however, have necessitated that distribution compa-nies shift their focus from a “regulated” business to a more “customer-oriented” business.

Central to each of these con-cerns is the need for processes that can automate data manage-ment toward increased accuracy, decreased man-hours, and ac-countability/audit trail com-pliance. Techno-savvy utility companies are increasingly rec-ognizing that investment in gas measurement data management applications can assist in address-ing many of these challenges.

Company Spotlight: Mobile Gas

HistoryOne of the oldest natural gas utilities in the country and a principal subsidiary of Energy-South Inc., Mobile Gas Service Corporation is a natural gas utility company that purchases, sells, transports, and distributes natural gas to approximately 100,000 residential, commer-cial and industrial customers in Mobile, Baldwin and Washing-ton counties in southwest Ala-bama. Energy South’s business segments include Gas Distribu-tion and Storage Operations.

Traditionally, Mobile Gas was focused on “field electronic mea-surement devices.” Their collec-tion of electronic bill data was

performed manually by entering the data, or by manipulating data within spreadsheets or other non-secure applications. Their volume data came in via 17 receipt meters and 21 commercial and industrial delivery customers, as well as from a manually entered batch volume for the residential delivery meters. The task, after gathering this data through such varied modes and points of collection, was to achieve a company-wide system balance.

Requirements & SolutionsMobile Gas’ manual process had included a rudimentary system of checks and balances: the volumes were verified using previous days’/months’ volumes, and would be assumed correct if no other prob-lems were indicated with meter input variables. However, such a system left much to be desired with regards to effective reporting, validation and audit compliance.

“Our goal was to create a means to systematically bring all electronic billing data collected into a single application, which would allow us to validate, edit, print volume statements and to provide an audit trail to these activities,” says Mo-bile Gas’ SCADA Manager Kim-ble Grafton, who also oversees Gas Control equipment and personnel.

To achieve this goal, Mobile Gas decided in 2002 to imple-ment a gas measurement sys-tem, polling data from the existing SCADA System (Tel-vent). After researching avail-able options, their choice was

•

the Flow-Cal Enterprise System, which offered tar-geted solutions to Mobile Gas’ identified objectives:

To provide volumetric data in as “near-real” time as possible from all sources.;

To provide an off-the-shelf system with accepted natural gas standards such as GPA, AGA and API;

To reduce time spent per-forming daily entries, file manipulations, verifica-tions and calculations;

To reduce “lag time” of post-ings due to the labor-inten-sive process associated with manually reading charts, col-lecting meter readings, etc.;

To validate that data quickly, efficiently and in an auditable process so that volumes could be posted accurately and quick-ly to the company website.

System ImplementationThe Flow-Cal Enterprise Sys-tem provided extensive func-tionality to address key measure-ment requirements, including:

•

•

•

•

•

Page 2

Kimble Grafton, SCADA Manager, Mobile Gas

Validations – ability to identify anomalies in both volumes and gas analysis;

Gas Analysis – ability to track gas quality components;

Reporting – provid-ing customers quick and accurate billings;

SOX – well-documented gas measurement process.

Validation EngineGas measurement validation is the process of programmatically identifying data that may con-tain measurement errors. This distribution company recognized the value of quickly review-ing volume data arriving from the field. Toward that end, they chose the user-friendly approach offered by Flow-Cal’s easy-to-understand and easy-to-config-ure validation software, which requires little or no learning curve. The application also of-fers validation capabilities that are fully and seamlessly integrat-ed into the measurement system.

The challenge for Mobile Gas’ measurement group was to validate a large amount of volume-related data with minimal resources within a limited timeframe. Imple-menting a data validation sys-tem was recognized as critical toward helping pinpoint and solve gas measurement prob-lems quickly and accurately.

•

•

•

•

“Prior to our gas measurement (sys-tem), we were spending three to four hours daily performing data entries, file manipulations, verifications, and calculations for the daily reports and billing process,” states Grafton.

Mobile Gas identified sev-eral validations they depend upon for accurate measurement:

Flowing Parameters

Analysis

Expert Systems

Missing Data

Meter Freeze

Configuration errors

In the past, the trained analyst could quickly detect problems by performing a visual review of the chart data. But reviewing data and detecting problems grew increas-ingly difficult as such data began to include flow computers and the large amount of information, such as gas quality and configura-tion data, associated with the de-vice. The use of automated vali-dations with exception processing provided a solution to the utility.

•

•

•

•

•

•

Flowing Parameters

Operators needed a window through which to view the mini-mum and maximum values for a variety of anomalies to the vol-umes, both during import or after an edit, which included:

Flow Variable (DP or Pulses)

Static Pressure

Temperature

Volume

Energy

Flow Basis (Extension, Raw Volumes)

Volume Correlation Fac-tor

Speed of Sound

The view of this data was pro-vided by way of an easy-to-use, functional Graphical User Inter-face (GUI) Flow-Cal provides called the Exception Resolver. This feature provides a quick window of out-of-range flow-ing parameters and creates an exception that can be easily re-

solved by the operator.

Analysis

As important as it is to quickly detect anoma-lies in volumes, it is also important to identify historical deviations for a variety of gas quality components, including:

•

•

•

•

•

•

•

•

Page 3

Mobile Gas Service Corporation’s Gas Measurement Control Room

“Our goal was to create a means to systematically bring all electronic billing data collected into a single application...”

Heating ValueCO2N2C1, C2 and C3N-C4I-C4N-C5I-C5Neo-C5Specific GravityC6, C7, C8, C9, C10H2S

H20

When the gas analysis is im-ported or edited, any “out-of-range” parameters are displayed in the Exception Resolver, al-lowing the operator to easily re-view and diagnose the anomaly.

Expert System

As an LDC, Mobile Gas wanted the ability to perform historical data analysis to identify uncharac-teristic changes in meter data. The Expert System validation feature provided numerous configurable set-points that allowed Mobile Gas to customize a validation to each individual meter’s profile.

••••••••••••

•

Missing Data

One of the biggest problems asso-ciated with the use of flow comput-ers and meter read cards is missing data. Flow computer failures, com-munication outages, corrupt data or “missed” meter read cards can all lead to data missing within the gas measurement system. A com-pany with as few as 100 flow com-puters logging hourly data would create 72,000 volume records each month. The process of manually reviewing thousands of records to search for missing data can be a te-dious task. Assuming that an ana-lyst could manually perform this review of the production dates in as little as one second per record, it would then take an estimated 20 hours to review 72,000 volume records. An automated missing data validation process performs a missing data check of these same 72,000 volume records in seconds.

When missing records are detected, the distribution gas measurement system writes an exception record indicating which meter has miss-ing data and the date range of the missing data. By using this type of validation, the analyst needs only to review the exception log and ad-dress the meters that have missing data, rather than review all data

for all meters. By implement-ing this validation, the distribu-tion company reduced the time required to search for miss-ing data from days to minutes.

Frozen Data (Meter Freeze)

A meter freeze is the result of an ice block forming inside the me-ter’s gauge lines. This problem usually occurs on orifice meters during the winter months, and will result in invalid differential pressure and sometimes invalid static pressure readings from the meter. When a meter freeze oc-curs, the differential values may lock at a fixed reading; or the flow pattern may change and be-gin following ambient tempera-ture changes. A knowledgeable analyst performing a manual review of electronic flow meters may not detect a meter freeze problem. A flow computer nor-mally reports hourly averages for the different flow variables. Av-erages tend to filter out sudden flow changes, making it harder to detect if a problem exists, or the exact time a problem occurred.

Conf iguration Errors

Configuration errors can result from the gas measurement sys-tem missing events from the flow

EFMChromatograph SCADA

Page 4

computer, or from a field tech-nician entering an invalid value into the flow computer, result-ing in a volume calculation error. Some common configuration er-rors are invalid atmospheric pres-sure or invalid orifice plate size set in the field flow computer.

Flow computers only store a limited number of the most re-cent alarms and operator events. If the flow computer generates excessive alarms, the result can be operator events being purged from the flow computer’s mem-ory. If this happens, the gas measurement system does not receive the event that documents the configuration change, and is now out of sync with the flow computer. An automated valida-tion process can be used to detect these configuration problems.

A Configuration Comparison validation performs a com-parison between the host and flow computer’s configurations, and can find anomalies be-tween the flow computer and gas measurement system con-figurations. Discrepancies be-tween the gas measurement system and the flow computer can then be flagged for review.

Gas QualityMobile Gas recognizes the impor-tance of tracking analysis by com-ponent. With the vast amount of variance in gas quality from one supplier to another, Mobile must monitor gas quality closely at re-ceipt points within the system.

“Our LDC has five gas chromato-graphs within our system, along with several other interfaces to our supplier’s RTUs or gas chromato-graphs to collect real-time data from them,” says Kimble. “Our gas measurement system eliminates having to manipulate data using spreadsheets or other means to apply varying gas qualities to vol-ume data. This was always a prob-lem, having to re-apply not only the heating value, but gravity and other components as well, using manual or spreadsheet methods.”

Additional Gas Measurement ToolsMobile Gas saw value in hav-ing the ability to recognize data that is missing after a “user-speci-fied” duration, and calculate es-timated data for the meter based on a number of factors including:

· Fixed Value· Historical Average· Reference Meter· Point-to-Point Gas Fill

The gas measurement software’s Auto Estimation capability allows Mobile Gas, when it receives the actual data, to exercise a choice to replace the estimated data or let the estimate stand. Mobile Gas has used Auto Estimation to fill in bal-ance data for points where no phys-ical metering has been installed.

Flow-Cal’s Master Characteris-tics tool also allows Mobile Gas, an LDC with contracts on all their city gates and commercial meters, to inspect individual me-ter data records to ensure that the data from the field device con-forms to contractual terms and base reference conditions for gas-day or month-time factors, as well as volume and energy calculation variables as applied by the user.

At first, Mobile Gas did not close their monthly data records be-cause they thought it would limit their capability to change meter information as needed if problems arose with late data or electronic devices. “Later, we discovered that

Data Analysis, Validation, Editing

Validated data for posting, billing, reports

Page 5

closing allowed us to have a target date to have the most ac-curate measurement possible at time of closing,” states Grafton.

Improved Customer ServiceMobile Gas has noted a tre-mendous response from their customers since they started furnishing Standard Volume Reports as part of their month-ly billing statement. The Stan-dard Volume Report feature allows them to detail all meter inputs and calculations, as well as other information, and to bill directly from these reports. This detailing has markedly im-proved their customer service.

According to Kimble, “In the beginning, many of the cus-tomers had questions regard-ing the information the state-ment contained, but now, the quantity of bill complaints, volume challenges, and ques-tions have practically vanished.”

Sarbanes-Oxley Com-plianceDistribution gas measurement groups have been examining procedures and processes that can improve productivity and achieve cost savings, while at the same time providing bet-ter access to timely and accu-rate volumetric billing data. In combination with this focus, utilities recognize that the so-lution they choose must be

Validation Routines

Flowing Parameters

Missing Data

Expert Systems

Analysis

Frozen Data(Meter Freeze)

ConfigurationErrors

Page 6

Sarbanes-Oxley (SOX)-compli-ant. In essence, Sarbanes-Ox-ley Section 404 mandates that each company determine its in-ternal system of checks and bal-ances, and that this information be disclosed to the public on a timely, up-to-date basis. In or-der to meet SOX compliance, the distribution company added the following requirements to their gas measurement evaluation:

System must provide sum-maries of gas measure-ment daily during the month, instead of wait-ing 5-10 days after close.

System must reflect the standard operat-ing procedures of the gas measurement mar-ket, including API, AGA and GPA standards.

The Flow-Cal System met both of these requirements for Mobile Gas. Grafton states, “Sarbanes-Oxley has been a lot easier be-cause of our gas measurement software. The audit trail, valida-tion and data reliability are built in. The measurement process was easily documented with the gas measurement system in place.”

GAS MEASUREMENT SYSTEM IMPACT ON UTILITY COMPANY

For the past four years, Energy-South has used a gas measure-ment system for their salt dome storage company and pipeline system (Bay Storage Gas Com-

•

•

pany, LTD). The gas measure-ment system maintains both the salt dome storage and pipeline system, furnishing billing and bal-ancing on a daily basis to each fa-cility. Also, Mobile Gas believes other benefits have included:

The gas measurement sys-tem can now rapidly poll volume data hourly and re-duces the hand entry time, thereby reducing costs.

Analysts can now review volumetric data quick-ly and more accurately with greater confidence.

The Validation Engine can quickly review valida-tions identifying inaccura-cies in volumes, verified, corrected, and auditable.

Volumetric data is ready for review shortly after the end of each gas day, allowing for quick resolution of problems and/or imbalance issues.

Missing data is now more easily identified, tagged and sent out for “retriev-al” in a timely manner.

System provides a “window” for Mobile Gas to view gas analysis data, and monitor the gas quality at receipt points.

LONG-TERM VISION

The gas measurement system pro-vided Mobile Gas with a valida-tion engine that allowed them to accomplish many of their goals:

1.

2.

3.

4.

5.

6.

increase productivity, decrease costs and meet Sarbanes-Ox-ley compliance with regards to their volume measurement.

As Mobile Gas continues to strive for high accuracy in mea-surement, their future intent is to totally integrate their gas mea-surement with a Customer In-formation System (CIS). “Our long-term plan,” says Kimble, “is to fully exchange data between the CIS System and gas mea-surement system to accomplish two goals: 1) To pass all customer data to the new CIS system to allow marketing and customer service representatives to access the historical data. It will also interface with the new CIS bill-ing system to create a uniform billing process for all customers; and 2) To gather all measurement data that the CIS system has col-lected from the meter-reading department, and then perform a company-wide system bal-ance for our LDC. This, along with other measurement data, will be utilized to maintain our unaccounted volumes (UAF).”

Like many of their peers, Mo-bile Gas is realizing the value of implementing a robust data man-agement system designed to meet today’s more stringent require-ments. By embracing change as an opportunity, Mobile Gas has also positioned themselves for the new challenges created by the ever-evolving and com-petitive landscape of the LDC.

Page 7

“ O u r p r i m a r y c o n c e r n a t C o n o c o i s a c c u r a c y. To e n s u re a c c u r a t e d a t a , i t i s e q u a l l y i m p o r t a n t t o se lec t the correc t s of t ware a s wel l a s the r ight eq uipment i n the f ie ld . Flow - C al s of t ware h a s b een instrumental in how we manage the flow of measurement information from field operations to users .”K y l e K e f f e r , Coo rd i n a t o r o f G a s Mea s u r emen t A c c o u n t i n gConocoPh i l l i p s , I n c .

“ T h e F l o w - C a l E n t e r p r i s e p a c k a g e h a s a l l o w e d t h e v a r i o u s B P O p e r a t i o n C e n t e r s t o s t r e a m l i n e t h e h a n d l i n g o f o u r m e a s u r e m e n t d a t a a n d e d i t i n g p r o c e d u r e s . I t i s o n e o f t h e m o s t i m p o r t a n t t o o l s a l l o w i n g B P t o m e e t t h e S a r b a n e s - O x l e y ( S O X ) C o m p l i -a n c e s t a n d a r d s . T h e c u s t o m e r s e r v i c e i s a s r e s p o n s i v e a s i t i s p e r s o n a b l e a n d h a s c r e -a t e d a r e a l t e a m s p i r i t a m o n g o u r m e a s u r e m e n t f o l k s a n d F l o w - C a l ’ s s u p p o r t s t a f f .”D a v i d B r o m l e y , Ga s Mea s u r emen t C o o rd i n a t o r , N . Ame r i c a n Ga s S t ra t e g i c Pe r f o rman c e Un i t

B P Amer i c a , I n c .

“ The Flow -Cal Enterprise System provides Enbridge the abil ity to accurately and t imely account for the volumes of g as entering and exit ing the pipel ine systems . Reconci l iat ion of physical volumes to acco unt i ng for c urrent and prev i o u s month’s rece ip t , de l iver y, comp any u s e f uel , and un acco unted for volumes (UAF ), is accomplished via the pipel ine balance modules for the various assets , and the Prior Period Adjustment Summary. Additionally, all Sarbanes-Oxley (SOX) Compliance requirements a re m e t a s a re s u l t o f t h e i n h e re n t d a t a i n t e g r i t y a u d i t t r a i l s re s i d e n t i n t h e E n t e r p r i s e sys t e m .”G a r y A n d e r s o n , Manage r , G a s Mea s u r emen t

Enb r i d g e (U . S . ) , I n c .

“ Flow-Cal’s software design in conjunction with their data model makes for a reliable application that is readily maintained and allows open access for data mining. Flow-Cal is at the top of my vendor list for superior customer support. Their user support and informative staff make them a pleasure to work with.”K e l l e y B a r n e t t , App l i c a t i o n s P ro j e c t D i r e c t o rEOG Re sou rc e s , I n c .

“ Th e F l ow - C a l E n t e r p r i s e Sys t e m h a s t re m e n d o u s ly e n h a n ce d a n d s t re a m l i n e d o u r m e a s u re m e n t o p e rat i o n s . We a re n ow abl e t o m a n age a n d va l i d at e o u r vol u m e s i n a ve r y e ff i c i e nt m a n n e r. Th e savings in both manpower and mounds of paper is just the t ip of the iceberg . The real benef it is the confidence we have in our volumes, our audit trail and the ability to research any problems that arise.”To m C h e n e y , Manage r o f Mea s u r emen t Ope ra t i o n s

P r o d u c t i o n * G a t h e r i n g * T r a n s m i s s i o n * D i s t r i b u t i o n

Data Validation Across the Energy Spectrum