In the past, Utility Authorities have suffered significant losses due to outdated equipment and technologies, and inefficient collection and recording methods. These losses have resulted in rising maintenance costs. With the advancement of technology, there was a need for a more reliable and accurate method of collecting meter readings. The automated method, or automated meter reading (AMR), achieved this goal while improving efficiency and effectiveness, thus achieving the dual goals of lowering overhead costs while increasing revenue.

In the 1990s, general advances in technology began to be applied to metering, more significantly in the area of communications. Technology has advanced to collect and read the meter without a visual inspection, through the use of radio, power line, and wireless-based communications – collectively known as Advanced Metering Infrastructure (AMI). AMI produces cost savings for utilities due to reduction in labor costs and increased meter reading accuracy, making it easier for utilities to provide customers with billing data and to advise customers, particularly regarding outages. In addition, the system seamlessly integrates into any existing billing system. Thus, additional investments are not necessary, although billing systems can be updated at any time as the need arises.

Meters are available that allow measurement in smaller intervals and allow “time of use pricing” and “critical peak pricing”; however, these meters do not have widespread communications capabilities. AMR technology has allowed utilities in recent years to reduce costs. However, while these cost reductions presumably have been passed on to customers as a benefit, there is no other direct benefit to the customer from AMR deployment. With the more advanced meter or smart meter, utilities are able to provide customers with price signals and more detailed usage data, giving customers the ability to manage their usage in response to such information. With features such as outage reporting and restoration verification, advanced metering also provides utilities with more capabilities to manage their distribution systems and operations more efficiently and reliably.

The current AMR market revenues in North America are estimated at more than US$1 billion, and they are expected to double within the next six years. Recent thrust in AMR deployment has been a result of the Energy Policy Act (EPAct) 2005, which strongly encourages the need for smart metering and utilities to reduce costs and improve efficiencies. The future of advanced metering, however, will depend heavily on the policy and decisiveness of the governmental bodies involved. Energy savings and an increased security of supply will be the main drivers, and belief in advanced metering as a means to reach these goals is indispensable.

Executive Summary 4
Introduction 5
What is Advanced Metering? 5
Need for Advanced Metering 5
Advantages of Advanced Metering 6
Improvements in Billing 6
Better Customer Care 6
Outage Management 7
Reliability 7
Basics of Advanced Metering Infrastructure 8
Metering 8
Data Collection 9
Broadband over Power Line (BPL) 9
Power Line Carrier (PLC) Communications 10
Fixed Radio Frequency (RF) Systems 10
Systems Using Public Networks 10
Meter Data Management (MDM) Systems 11
Advanced Metering Infrastructure Market 12
History 12
Current Market 12
Future Market Potential 14
Market Drivers 15
Energy Policy Act (EPAct) of 2005 15
Reduction in Costs 15
Refocus on Efficient Growth 16
User-friendliness of the AMR Systems 16
Leak Detection 16
Issues and Challenges 17
Loss in Revenues 17
Lack of Communication Standards 17
Regulatory Uncertainty 17
Lack of Coordination among Providers 18
Apprehensions over Wireless Network 18
Economics of Advanced Metering Infrastructure 19
Capital Costs 19
Operation and Maintenance (O&M) Costs 20
Role of the Government 21
AMI and EPAct 2005 21
Time-of-use (TOU) Rates 21
Smart Meters 21
Government Initiatives 21
AMI Implementation in California 21
Smart Metering Initiative 22
AMI Standards 22
Profiles of Major Players 24
Badger Meter 24
Cannon 25
Cellnet 25
Comverge 26
Distribution Control Systems 27
Echelon 27
Elster 28
eMeter 29
Hexagram 30
Hunt Technologies 31
Itron 32
Landis+Gyr 33
Sensus Metering 33
Silver Spring Networks 34
SmartSynch 35
Tantalus 36
TransData 37
Trilliant Networks 37
Case Studies 39
Las Vegas Valley Water District 39
TXU Electric Delivery (TXUED) 40
District of Columbia Water and Sewer Authority 42
Appendix 43
Glossary 46

List of Figures and Tables

Figure 1: Diagram of Advanced Metering Infrastructure (AMI) 8
Figure 2: Diagram of Broadband over Power Line (BPL) 9
Figure 3: Current AMR Market (2002-2006) 13
Figure 4: Forecast of the AMR Market (2006-2012) 14
Figure 5: AMI Capital Costs 19
Figure 6: Breakdown of AMI System Costs 20
Figure 7: Typical AMI Network Architecture 43
Figure 8: Single Meter Data Collection 43
Figure 9: Advanced RF Network System 44
Figure 10: Recommended Development Process for a Metering System 45
Table 1: AMI Installation in the United States 44