Public Power - November/December 2007 - (Page 25)

fueled growing interest in AMI. These factors, coupled with advances in technology and computational power, finally allow some of the promises of advanced systems to be realized. AMI is fundamentally comprised of three pieces: an advanced meter capable of communicating remotely, a communications network, and a system capable of managing information—often known as “meter data management.” This is the fundamental distinction between AMI and its simpler cousin, automated meter reading (AMR) systems, whose sole purpose is to read meters and yield bills. While much of the action has been in the electric side of the business, public power utilities, many offering the multiple services of electric, gas and water, have an advantage in being able to spread the costs and pick up the benefits across their offerings. Utilities can also choose various new solutions that provide more capability and potential savings at higher cost and risk. The shift to more automation and technology to provide a range of customer services and tariffs and the “grid of the future” is beginning. AMI can be a backbone for information and control/command to and from customers and for distribution operations. Nevertheless, the timing of utility adoption of new metering technology will likely remain varied because of many business factors. AMI trends—Technology is advancing rapidly with increasing functionality. In the past decade, many utilities have and continue to implement AMR solely to reduce the cost of meter reading, either throughout their territory or surgically. In that timeframe, many other utilities studied AMR and found it not to be cost effective. Technology in utility metering is following a familiar S-curve maturity pattern. The standard electromechanical residential meter is being displaced by more accurate solid state electronic units. The electronic meters can readily incorporate remoteread transmitters, enabling drive-by or fixed network AMR which, when coupled with meter data management, build toward an AMI solution. Major meter solution providers have enhanced their basic products to an optimal www.APPAnet.org point. Some new entrants have introduced two-way communicating advanced systems and the major incumbents are making significant investments in the next generation to compete. The new systems are more expensive, but have more functionality than the previous generation. Communications and network capabilities are increasing in bandwidth, reach and speed. Power line carrier and wireless solu- der a federal mandate to examine the use of “intelligent” metering. The Energy Policy Act of 2005 contains specific provisions promoting automated metering and the provision of time-based rates. The law required each state to investigate advanced metering and time-based rates and to report back to Congress by Aug. 6, 2007. How public power and states are reacting to this mandate and what pressure they With broadband, AMI systems could offer information, measurement and control of components and systems inside the home and on the distribution network, on a real-time basis. tions offer both one-way and two-way communications at increasing speeds. As the capability of the networks increase, the other dimension of AMI system functionality in the meter and control systems also increases. Solid state meters are incorporating more functionality, increased memory, more efficient utilization of power and other functions, such as a disconnect switch, all integrated under glass. The functionality available from AMI systems will continue to expand with the capability of the network. With broadband, AMI systems could offer information, measurement and control of components and systems inside the home and on the distribution network, on a real-time basis. Now, increased capability and lower costs have opened the door for revisiting the business case for AMR/AMI and many companies are performing new analyses. Utilities that read meters at higher costs, due to population density, geography, climate or other factors—and lack regulatory pressure to pursue new tariffs and programs enabled by interval metering—are viable candidates for immediate deployment of AMI technology. Evaluating the drivers—1. Regulatory environment—All utilities covered by the Public Utility Regulatory Policies Act are statutorily required to examine advanced metering and time-differentiated rates. Virtually every state with IOUs is now unwill bring to bear on the entities within their jurisdictions will determine much of the AMR/AMI activity in the next year. Language in Section 1252 of EPAct deems that such programs “shall enable the consumer to manage energy use” and “shall provide time-based metering” and speaks to price-responsive demand-response. The deadline for much of the activity has already passed, leaving some utilities out of step with the EPAct requirements. The pressure on utility performance and the desire to improve customer service also has had an impact on the decision-making process. Utilities in low-cost electric service areas are particularly sensitive to investments that drive the prices up for customers, creating a challenge for utilities that would like to install advanced systems but for whom the revenue impacts will be significant. Demand-response has also garnered renewed interest across the nation. The challenge in adding capacity for public power and IOUs results in demand-response taking a higher profile and becoming critically important. 2. Utility strategy—Public power’s orientation to customer service plays a significant role in the decision to implement an AMR/AMI strategy and in the technology chosen. Very often this is driven by the vision of senior leadership. A utility’s culture of risk also plays a role NOVEMBER-DECEMBER 2007 25 http://www.APPAnet.org

Table of Contents Feed for the Digital Edition of Public Power - November/December 2007

Public Power - November/December 2007 Contents Washington Focus 10 Questions Connecting with the Customer Through Automation AMR or AMI? The High Court’s Antitrust Thunderbolts California’s Push for Demand-Response Plug-In Partners Get Plugged In Wiring Up for Double-Digit Growth For Engineers Safety Community Broadband For Governing Boards DEED Customer Service Hometown Connections Index to Advertisers Parting shot

Public Power - November/December 2007

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