Modern AMI for utilities: Maximizing value from smart metering

The number of smart meters deployed across the United States has grown steadily from just over 5 million meters in 2007 to more than 100 million across electric, water, and natural gas utilities today. Deployments have accelerated over the last decade, with 2013 marking the first year when electric advanced metering infrastructure (AMI) meters outnumbered automated meter reading (AMR) devices.

AMI meters currently make up more than 60% of the electric meters, with several more major electric utilities looking to deploy AMI in the coming years. Beyond electric, an increasing number of water and gas meters across the country have also transitioned to AMI technology. The business case for cross-commodity AMI has become stronger than ever through technology improvements and a growing list of potential customer and operational benefits.

As utilities and regulators increase the emphasis on modernizing America’s infrastructure to help create jobs, increase energy and water resiliency, and reduce our environmental impact, AMI has become a critical component for building greater transparency in customer usage and utility operations.

Despite these trends and the increasing capabilities of AMI, recent industry commentary has suggested that this technology is seldom leveraged to its fullest potential. It’s also argued that many utilities that have deployed AMI are not realizing the full value of the investment, particularly as it relates to the financial and operational benefits of advanced rates, operational analytics, and customer programming.

While some utilities may limit the scope of their AMI functionality due to budget targets, specific state policies and regulatory decisions, or technology availability at the time of deployment, modest strategic targets have also contributed to a potential shortfall in benefit realization.

Utilities can be categorized into four main stages in their AMI journey:

• Stage 1: Strategic and Regulatory Planning
• Stage 2: Approved and Currently in Deployment
• Stage 3: Fully Deployed
• Stage 4: Deployed and Mature

While circumstances for every utility are unique, utilities undertaking each of these four stages share many common challenges and value opportunities related to their AMI investments. By recognizing that there is room to better utilize AMI, utilities across all stages have an opportunity to leverage best practices and successfully execute against their AMI program objectives. 

Conclusion

Regardless of where a utility stands with their AMI and broader grid modernization journey, thoughtful planning and execution are key to maximizing the benefits delivered by this transformational technology. The pressure to deliver and articulate these benefits to internal, customer, and regulatory stakeholders is also increasing, raising the bar on how utilities define and reach success.