posted on September 15, 2011
Today, 25 states have smart metering legislation or policies, and utility companies across the U.S. are updating their infrastructure to adhere by the mandates already in place, or inevitably on the way. There are roughly 150 million electric meters in the U.S. and the total installed base of AMR units in the U.S. is estimated between 75M-80M units, or more than 50 percent of all approximate 150M electric meters. However, only a small fraction are replaced with smart meters.
The investments utilities are making in smart grid services are substantial --$50B in the U.S. alone according to authors Marcy Lowe, Hua Fan and Gery Gereffi’s 2011 report, U.S. Smart Grid.
As utilities upgrade the technology, they seek out masters in advanced metering infrastructure (AMI) deployment. Quite a few firms specialize in meter installation. Some install the meters and move on to other projects while others remain involved after installation to ensure the systems work accurately, safely and successfully—and that’s a big issue.
Working with the right smart asset solutions company makes the critical difference in post-installation, continuing support for your customers, and cost-efficiency. In choosing asset management partners for smart grid upgrade projects, keep in mind that each time you change companies—for example, installers vs. maintenance—you can open the door to data errors, billing errors and transactional costs.
For example, just last month Alabama Power, a Southern Company subsidiary, updated 1.4 million meters over a three-year period throughout the state. Southern Company started deploying meters in 2008 and completed deployment in 2010. The utility planned on a 36-month project, but completed it in 33 months, three months ahead of schedule. That’s a story most utilities would like to repeat. In order to achieve successful full deployment, there are three critical factors to keep in mind as you plan AMI deployment and post-AMI operations.
Critical Factor #1—Tell end users what to expect up front
Communication may not be visible in the “utility belt,” but all utilities agree it is of the utmost importance in customer satisfaction. Smart meter installation is a hot-button issue across the U.S., and utility companies are conscious of the responsibility to ensure customers understand why their bill might seem to be adjusted after the deployment.
A glance at headlines in local papers proves that people can be confused that digital meters are causing their bills to increase because they read the electricity usage incorrectly. Often, what’s really causing the rise is the fact that mechanical meters are so incorrect and newer technologies are far more accurate in measuring consumption. Unfortunately, many utilities have also discovered that wiring technicalities and switching a smart meter from one address to another without proper procedures can also create a billing nightmare. Expelling rumors about what happens with smart meter technology upfront is a good practice before the installation begins.
“People want to blame the utility company,” says Angela Taylor with Metadigm Services. “But what we’ve seen in our work with Cobb EMC, Georgia Power, and others is that a proactive customer communications campaign can help the end user see the benefits from better monitoring.”
But the communication efforts shouldn’t stop with pre-installation outreach. End users have questions or concerns during and after the installation process, too.
“Making yourself available before, during and after the deployment makes a big difference in customer service,” says Steve Hallock, senior vice president of product innovation at Metadigm. He suggests live person assistance to the utility company’s customers during business hours, and 24/7 assistance via web.
Critical Factor #2—Be rigorous about post-AMI expertise
Installation is more than just a meter-for-meter exchange-it involves pre-planning to post-AMI deployment. For most utilities, a meter upgrade project is a completely new undertaking. Look for service companies to support you with a lot of experience not just in installation, but in post-deployment. Going from a labor-intensive manual meter reading system to a high-tech two-way communicating system involves more than just a shift in technology for utilities—it’s a culture shift as well.
Utilities are challenged with how to respond to meters that now convey a stream of information. How to respond to all this data is beyond the role of data analysts and IT operators. The right firm with a focus on proactive asset management can help make the transition from traditional metering to the new paradigm a smooth transition. Post-AMI deployment represents a critical phase that involves careful consideration of many variables including compliance to safety, reaction to meter alarms and verification of accuracy to name a few.
Critical Factor #3—Plan for data collection and management
When an installation company is not involved following deployment, the utility often has to figure out how to respond to the stream of data from every meter. Ted Masters, VP of sales for Metadigm suggests selecting a company that is willing to work with you as a long-term partner rather than one that finishes your project and moves on to the next one.
As utilities are aware, preventative strategies must be in place to address safety during a storm, vegetation and other intrusive factors. Utility companies are flooded with customer demands when disaster strikes. And beyond blackouts and severe storms, day-to-day meter readings take manpower and expertise. The new technologies provide real-time interval data that needs to be monitored and managed properly.
“Now that we have deployed smart meters, we’re better able to take care of our customers and manage our power grid, and that’s what it’s all about,” said Reginald Murchison, Manager-Metering Services at Alabama Power.