San Jose, CA, May. 18, 2020, Sonasoft Corp. (OTCQB: SSFT) is pleased to announce the successful completion of their proof of concept with Delaware Electric Cooperative (DEC). The PoC leveraged NuGene, Sonasoft’s AI Bot Engine, to give accurate demand forecasts. The PoC demonstrated that NuGene can deliver annual cost savings of up to $1.3m. As a result, DEC has green-lighted a move to production starting June 1st.
“We must adapt to the wants and needs of our members,” said Bill Andrew, President and CEO of DEC. “They want quality power, minimal interruptions, competitive costs, and immediate response. I am 100% convinced that AI is key to our future success and existence. The potential for AI applications is endless. I see applications that include operations, engineering, customer service, billing, public relations, and accounting. I do not see a limit to these applications once we establish some successful applications that co-ops can fully embrace. The work we have done with Sonasoft has shown how AI can deliver an application that delivers immediate value.”
Delaware Electric Cooperative’s transmission services are provided by the region’s investor-owned utility or (IOU). One of the biggest costs to the Co-op’s business is coincident peaks. A coincident peak (CP) happens when DEC’s peak demand coincides with that of the regional transmission zone. These CP events determine DEC’s demand costs each month. To try and avoid them, DEC instigates load control (LC) and issues “Beat-the-Peak” notices to its members, encouraging them to reduce their highest-demand appliances.
DEC doesn’t want to trigger LC events unnecessarily. However, they also need to try and avoid unplanned CP events, which can cost over $1m in the peak summer season. In this PoC, Sonasoft NuGene was tasked with creating an AI bot to deliver 3 key predictions:
- Long-range (1-2 week) predictions of likely peak and non-peak days
- Short-term (24 hours) predictions of the precise peak type and timing
- A specific recommendation for when to trigger an LC event
The overall aim was to reduce unnecessary LC events while ensuring DEC never missed a CP event. In order to do this, NuGene uses accurate real-time weather variables including temperature, humidity, sunlight intensity, wind velocity, atmospheric pressure and storm paths, along with historical data of electric consumption, to accurately forecast electric consumption.
“NuGene is uniquely suitable for creating bots like this,” said Ankur Garg, Chief AI Officer at Sonasoft. “NuGene uses deep learning to understand historical data and identify patterns in it. These patterns are then used to create an AI prediction model that runs as a stand-alone bot. The power of NuGene is that it does all this autonomously, checking all its hypotheses for causation and testing thousands of AI models to find the most accurate. That’s why we refer to NuGene as our AI Bot Factory.”
NuGene trained the forecasting bot on DEC’s historical data and then validated it with the data for 2019. It was able to deliver a 12% improvement in peak predictions compared to DEC’s existing methodology. It was also able to reduce unnecessary LC events by 5%. The model was able to deliver R2 (aka R-squared) scores of between 0.921 and 0.947. R2 measures how accurately the model is predicting reality. To put this in context, many advanced AI models manage scores of less than 0.9.
Moving forward, DEC will use Sonasoft’s AI solution to accurately predict peak usage and minimize the number of load control events. This will allow the utility company to further reduce costs, increase member satisfaction, and deliver reliable power to its members.
- Sonasoft was founded in Silicon Valley in 2003. For more information about the company, please visit: https://www.sonasoft.com
- Sonasoft NuGene is a unified AI platform that can process any type of data and generate autonomous AI models. For more information about Sonasoft’s Artificial Intelligence (AI) Solutions, please visit: https://www.sonasoft.com/products/artificial-intelligence-ai/
- For investor-specific information, please visit: https://www.sonasoft.com/investors/
Mike Khanna, CEO
Phone: (408) 708-4000 X7104
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934. These outcomes may be materially impacted by various risks set forth in the Company’s filings, as well as: (i) trends affecting the Company’s financial condition, financings and capability to pursue and to use proceeds to pursue certain product opportunities; (ii) trends affecting various technological and financial sectors, including, without limitation, AI, data science, data intelligence and advanced analytics and related market results, customer and regulatory acceptance of such technology and results; (iii) the Company’s and its strategic partners’ abilities to successfully collaborate and optimize resources and focus toward successful AI, data, analytics and other technological implementations; and (iv) trends affecting the Company’s growth, operating, and technology strategy and focus. Investors are cautioned that any such forward-looking expectations are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the Company’s ability to control and that actual results may differ materially from those projected in the disclosure as a result of various factors g statements as a result of various factors.
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