June 18, 2026

Guest Editorial | The Smart Meter Paradox: Scaling Simple Technology While Mastering Complexity

by Jessica Lyman, Black & Veatch

Utilities have spent more than a decade deploying smart meters across their service territories. In many regions, those rollouts are now largely complete.

Once deployments settle into a steady cadence, the work becomes familiar. Crews are scheduled, routes are optimized and productivity is tracked. Utilities know how to execute field operations — this is work the industry has done successfully done for generations.

The harder challenge begins after the meters are installed.

A utility that once received a single meter read per customer each month is suddenly managing 96 readings per day, along with alarms and event notifications generated by the device itself. At that point, the problem is no longer installation. It is deciding what to do with the flood of information now arriving from the grid — and how to turn that data into measurable operational and customer value.

Metering itself is not new. Utilities have always needed to measure electricity consumption to bill customers. Advanced metering infrastructure (AMI) did not change that fundamental requirement. What changed was the scale and granularity of the available data, opening the door to new use cases that extend far beyond billing. Unlocking that value, however, requires a deliberate approach — one that aligns data capabilities to a utility’s specific operational priorities rather than treating AMI data as an abstract analytics problem.

A data revolution

Monthly meter reads offered only a narrow snapshot of customer energy use. With smart meters in place, utilities can now see how electricity consumption changes throughout the day. Customers gain insight into when their usage rises and falls, while utilities begin to observe patterns across neighborhoods, feeders and circuits that were previously invisible.

The scale of this data grows quickly.

In a system with two million meters, hundreds of millions of readings may be generated each day. On most days, roughly 99% of those devices are operating normally. The challenge is identifying the small fraction that are not, and doing so quickly enough to act.

Within that stream of data may be early signs of a voltage problem, degrading equipment or the conditions that precede an outage. The utilities that succeed are often those that take a use-case-driven approach to AMI data — starting with the operational questions they want to answer, then configuring systems and analytics to surface the signals that matter most. This approach helps organizations move from data accumulation to actionable insight, rather than being overwhelmed by volume.

This shift also changes how utilities organize work internally. Historically, responsibilities were clearly divided. Field crews managed poles, wires and meters, while customer service and IT teams ran billing systems and customer databases. Smart meters blurred that boundary. Devices in the field now produce continuous operational data that ultimately informs grid operations.

Utilities with experience supporting large-scale AMI deployments have learned that technology transitions are rarely isolated events. Meters, head-end systems, MDMS platforms, analytics tools and operational systems must evolve together. Organizations that plan for this transition — leveraging lessons learned across multiple deployments — tend to experience smoother integration across platforms and fewer disruptions in day-to-day operations.

Customers felt the change as well. The monthly bill was no longer the only window into energy use. Many utilities introduced tools that allow customers to track consumption throughout the day, compare usage with similar households or understand when demand peaks. These early customer-facing use cases often serve as an entry point, demonstrating value quickly while laying the groundwork for more advanced applications.

The data also began revealing conditions on the grid itself. In one instance, meter data signaled abnormal activity associated with a transformer. When crews inspected the site, they found visible arcing and char marks on the transformer terminals. The equipment was still operating, but failure was inevitable.

Because the issue first surfaced in the meter data, the utility was able to repair the equipment before it failed and caused an outage. Examples like this highlight how AMI data, when tied to clearly defined operational use cases, can support proactive maintenance and improved reliability.

From collection to insight

The systems surrounding smart meters are evolving as well.

Early AMI deployments followed a centralized model: meters transmitted data back to the utility, where systems and analysts sorted through it. Newer architectures allow some evaluation to occur closer to the source, with devices monitoring specific conditions and generating alerts when thresholds are crossed.

This shift reduces the volume of data operators must sift through and accelerates response times. More importantly, it allows utilities to prioritize and release AMI use cases incrementally, enabling value to be realized sooner rather than waiting for a fully mature analytics ecosystem.

Utilities that leverage a structured catalog of AMI use cases and deploy them through phased release cycles are often able to move into optimization sooner. Early releases may focus on outage detection, voltage monitoring or customer engagement, while later phases expand into asset health, DER integration and advanced grid analytics. This staged approach supports continuous improvement while maintaining organizational momentum.

Meters are also increasingly integrated with other grid systems. Utilities combine AMI data with information from distribution management systems, distributed energy resource platforms and additional sensors across the network. Together, these systems provide a more complete and dynamic view of the distribution grid.

Where specific functions reside varies by utility. Some capabilities are housed within the AMI platform, while others sit in distribution management systems or related operational software. Utilities with experience navigating multiple AMI and grid technology transitions often focus less on where a function “should” live and more on how data flows across platforms to support timely decision-making.

No longer just a cash register

The industry has already demonstrated that it can deploy smart meters at scale. What takes longer is determining how the surrounding systems — and the organizations that operate them — should work together once the devices are in the field.

Utilities that adopt a value-focused, use-case-driven approach — supported by experienced AMI deployment partners — are better positioned to move from installation to optimization. They can detect equipment issues earlier, address them before they escalate into outages and maintain power quality as the grid incorporates renewable generation, distributed energy resources and electric vehicles.

In that environment, the meter is no longer just a cash register. It is a foundational operational device — one that, when paired with the right use cases and delivery strategy, helps utilities manage a more complex grid while realizing value from AMI data sooner and more sustainably.

Jessica Lyman is Black & Veatch’s Advanced Metering Infrastructure (AMI) solution leader, focused on assisting utility clients to select and implement enterprise technology solutions that provide operational value and positively impact utility customer engagement. Over the last 10 years with Black & Veatch, she has delivered enterprise-impacting solutions for electric, gas and water utilities. Before joining Black & Veatch, she worked in the resource efficiency policy sector, crafting policy on behalf of states, the U.S. Environmental Protection Agency and the U.S. Department of Energy to support consumer education and awareness of energy and water utilization and behavioral impacts.