Deploying AMI in a Down Economy

By R. Bryan Seal, P.E., Smart Grid Strategy, SmartSynch

Jackson, MS — February 13, 2009

Our industry is watching our new president’s every move very closely, particularly when it comes to the smart grid. With the energy goals of the Obama administration, a light is shining on our nation's electricity grid with the imperative to rebuild it into a green, intelligent energy delivery system helped by government support in the neighborhood of billions of dollars. The onus is on us to deliver on this promise, both a daunting task and an incredible opportunity.

However, we live in a world of complex equations. Who would have thought last September that so much would have changed financially so quickly and added magnitudes of challenge. Almost overnight we all found ourselves re-evaluating our cash positions and deciding how best to weather the current financial storm. For utilities, this means taking a hard look at capital and operational expenditure plans and moving forward only with those projects that are absolutely necessary or are mandated by law to complete. Many who were beginning or in the midst of AMI deployments are now taking a second look at their plans. The common conclusion coming out of this re-evaluation exercise is to slow deployments until the financial world becomes a little clearer.

So if the answer is slow down for a time, where are dollars best spent? My suggestion is to target high-value customers that represent the greatest percentage of system load and who also have the greatest ability to modify consumption behavior in the light of load information and innovative rates. By using smart meter technology that works with existing public wireless networks, utilities can spot-deploy meters for commercial and industrial customers who are also cash strapped and want to be more efficient, thereby reducing their electricity bills.

Over the past couple of years, and especially since the presidential election, the term “smart grid” has been percolating in the popular media. Visions of a Jetson-like, highly automated electricity delivery systems, where home appliances and utility infrastructure meet and interact in an overarching, interoperable IT system, seem to be leaping in many of our heads. President Obama’s administration has certainly turned its attention to this dream, and with good reason. But this vision of the smart grid is not yet a reality, and we find ourselves having to live “where the rubber meets the sky.” In other words, if the suggested C&I route be taken, it must be implemented by:

• Using AMI equipment available today, not tomorrow
• Using communications technology with in-place, readily available infrastructure accessible across wide geographic areas
• Using data collection engines that can readily integrate into a selected Meter Data Management (MDM) system
• Having the ability to be “over-laid” by a variety of technologies when mass residential AMI installations begin in earnest
• Basing AMI systems on industry standards

So let’s consider some of these factors. All U.S. meter manufacturers produce C&I meters that can be installed with a variety of communications media. Almost all MDM systems can accept data from a variety of different meters or communication engines. The trick is to avoid having to build out the communications infrastructure.

For many companies, public wireless (cellular) is a good data backhaul choice for strategic deployment. Cellular network providers invest billions in their networks annually. They are extremely reliable and efficient for transmitting data from smart meters. So by utilizing available meter technology and public wireless communications, targeted AMI can be easily and quickly deployed in a cost-effective manner.

AMI is a critical piece of the emerging smart grid which is being demanded by a variety of entities. Rather than discontinuing AMI installations while waiting out the financial storm, utilities should consider tactical deployments using readily available equipment and public communications infrastructure.

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Bryan Seal joined SmartSynch in May of 2005 to lead the company’s software, hardware and firmware development efforts as Vice President of Engineering. He was named Chief Knowledge Officer in January 2007 and Head of Smart Grid Strategy in November 2008.

A version of this article apeared in Transmission & Distribution World, February 2009.

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