Navigating Your Utility Metering Transition

Amid rapid change in the industry, emerging challenges, and the surge in demand for electricity, public power utilities are tasked with evaluating and planning the best approach to updating their electric meter reading equipment.

Each utility has unique visions and goals for prioritizing maintenance, upgrading equipment, or transitioning new technologies into their systems. There are many factors that can influence the decision-making process for a utility when considering AMR/AMI systems, including:

• Operations and maintenance costs
• Adding smart grid capabilities
• Improved grid data
• Compliance or mandates
• Long-term goals and business plan
• Increased customer expectations

While most utilities have moved from electromechanical meters to newer remote meter reading technologies, there are still many that cannot justify the expense of upgrading to these newer metering solutions. A common reason is low meter count that makes AMI/AMR fixed costs prohibitively high. Sometimes, no availability of older technologies forces utilities to install EM meters until a viable option is crafted. Let’s discuss viable paths to a modern AMR/AMI solution.

Automated Meter Reading Meter (AMR)

Using this meter technology allows the utility to establish a one-way connection between the meter at the customer location and a mobile reading device to automatically transfer usage consumption data back to the utility systems for billing. Many utilities utilize this method as a bridge between manual reading and committing to a more advanced and complex AMI system. Modern AMR systems are a viable and cost-effective solution for many utilities.

Advanced Metering Infrastructure (AMI)

A fully functional AMI system utilizes a communications network to collect electric, water and/or gas meter data and upload it to a “head end” software. The head end software can be cloud based or installed on premises. It is integrated into the utility CIS for billing purposes, as well as other systems. Head end software provides short term storage and performs multiple functions.

While converting to a fully functional AMI system can be costly and time-consuming, it is considered the best technology to enhance operational efficiency and reliability and send usage and outage information to customers, if provisioned. It can also provide customers with energy-saving tips and recommendations based on their personal energy usage, if a customer portal is included. An AMI system is the only way to fully benefit from modern and robust electric meters (also known as “edge devices”), which can measure and record multiple electric variables and alarms.

Some utilities that haven’t deployed AMI, or are planning to upgrade their older AMI systems, may have received grant funding to offset a portion of the project costs. In many cases though, there are utilities that cannot yet justify the expense of putting in a two-way communications network, or they are not yet ready to make the move to convert to a newer, more complex and costly meter technology. Let’s outline what options can be utilized for that segment of the industry.

Alternatives to Rip and Replace

Upgrade

AMI is a whole new world for utilities, and updating the infrastructure for a fully functional AMI system can take several years. Upgrading can be an alternative answer to the rip and replace option.

The latest generation of meters and networks often offer backwards compatibility. By upgrading specific network components, the utility will have the ability to read the older meters that are still within their lifecycle of functionality. This process utilizes the current head end upgraded to the most current version and existing integrations adjusted. It also allows a utility to target specific meters that may need an upgrade. With the cost of setup fees and integrations being a significant expense, upgrading can help add functionality to a metering system while reducing Capex. Once a new network is in place, new meters can be added to bring additional functionalities where needed.

Repurpose

If you are looking to lay a smart grid foundation that will provide an easy migration path to future technologies while also extending the current value of your existing investments, repurposing might be an alternative for you. Utilizing an enhanced network overlay solution provides an economical AMR to AMI technology bridge by replacing a small number of previously deployed meters with this new technology. Existing encoders and ERT modules can still be utilized. These new meters are strategically placed throughout the system and deliver data to the network, while simultaneously reading the legacy ERT transmitters still in use.

Phased Replacement

Based on funding availability, planning and deploying new meters in phases over a period of time can be an effective modernization solution for many utilities. Typically, the utility will strategically prioritize these phased replacements according to need, deploying Phase 1 meters in segments of their system that will result in the best overall success. Phase 1 essentially acts as a “pilot” segment for them and allows them to evaluate their deployment process, review tangible benefits, and prioritize their timeline for the next phase or phases. Some of the benefits of a phased replacement strategy include:

• Better control and optimization of ongoing costs
• Established best practices and lessons learned for ongoing phases
• Better resource allocation (workforce, equipment, etc.)
• Ability to evolve by adding value-added software modules as needed

Working with an experienced metering provider is proven to be a valuable resource to a utility as they plan a phased meter deployment project. These specialists can craft balanced contracts with the utility to deliver their metering equipment in phases based on their deployment plan and schedule.

Metering as a Service (MaaS) and Multi-Tenant

Finally, let’s talk about an innovative solution that allows a utility to fast track their transition to AMI capabilities. Metering as a service (MaaS) enables a utility to bypass the traditional upfront capital investment as well as the complexity associated with large-scale infrastructure projects. A specialized third-party service provider will offer a managed service package that includes funding the network infrastructure and IT systems, administration, installation, operational responsibility, and ongoing maintenance of the AMI systems. The utility owns the metering hardware but outsources the operational aspects to the service provider for a reoccurring fee. For the utility, there are no integrations or real-time access to the head end, just an effective meter-to-cash process. Benefits include:

• No upfront capital investment for network infrastructure
• Cost-effective solution towards modernization
• Access to a team with specialized skills and knowledge
• Access to data with proven security measures and expertise

Multi-tenant is a software application that enables third-party service providers to manage and monitor multiple utilities through the same network management systems and server resources. By using shared computing resources, this allows for cost efficiency between tenants without comprising data security and privacy for each individual customer or tenant. Benefits include:

• Cost efficiencies and resource utilization
• Data security and privacy
• Scalability
• Simplified management

Unlocking the Full Potential of Your Metering Investments

In the rapidly changing utility industry, having a trusted partner with expertise in utility metering, gives you another tool in your toolbox to help you unlock the full potential of your metering investments. Whether you are ready to rip and replace, or are looking for alternative metering system options, an experienced metering provider can be a valuable resource in your modernization journey.

Solve Complex Metering Challenges With an Expert Partner

As utilities are navigating upgrades to their metering technology and aging infrastructure, experience counts. Wesco’s team of experts can support utilities in tackling and solving complex metering challenges and making them better equipped for the future.

Whether you are thinking about upgrading a traditional metering system, or are looking at a complete AMI system solution, Wesco provides turnkey, scalable meter infrastructure upgrades across a wide spectrum of solutions, suppliers, and scopes of work. From mesh to multi-point and cellular, Wesco delivers best-in-class metering solutions and communications networks to fit your specific business objectives.