Why would anyone write about the status of water AMR in an electric utility trade magazine? Due to the recent flurry of AMR business case and deployment activity occurring in the electric utility industry------in particular those in California and Ontario, the subject matter is actually very relevant when considering all aspects of AMR cost justification.
The consideration of AMR and fixed networks continues to gain high levels of interest as well as accelerated deployment growth for both electric and water utilities.There are, however, many preconceived ideas about which utility sector actually requires the high level of data collection functionality that can only be delivered with the implementation of fixed AMR networks.
Fixed networks are selected by utilities that require--and can justify--that they need more than simply a monthly meter read.That being said, the actual data collection and functionality requirements beyond the basics vary significantly depending on what a particular utility is trying to achieve.Utilities may prove that increased data will optimize their day to day operations.Others, with a close tie to their customers, want to increase their level of customer service program options, and in turn improve their overall customer satisfaction and loyalty levels.Still others, see AMR as a means to improving cash flow, providing new rates and incentives that enable resource monitoring and in turn result in deferral or even negating the need for increased capital for new capacity and/or supporting resource infrastructure.
Much press is devoted to the electric utility markets in California and Ontario.Both regions are attempting to justify advanced AMR systems that are able to collect profile data, and in addition are able to offer customers Time of Use(TOU) as well as Critical Peak Pricing (CPP).Mitigation of a utility’s overall load from a peak demand perspective is the expected result and accrues significant savings in capital that would have been used for building new generation.Deployment of AMR can take place over a one to three year period (much faster than lead time needed for a cogeneration or peaking plant) and is in effect, much like building a virtual power plant, only with far more positive affects on the environment.
While many in the electric utility sector, appreciate the potential financial payback achieved with the implementation of advanced AMR, an equal number of people still wonder who will ultimately pay for the installation and management of these automated systems.Customers are perceived as the most obvious option.However, commissions and regulators are hoping new revenue streams including that of reading city and municipal water meters may be a way of enhancing the payback on most electric utility AMR cost justification spreadsheets.
The theory is that if electric utilities select and install leading edge AMR networks (with possibly a two way communication link) that this same system infrastructure can then be easily configured or adapted to connect to water utilities and hence provide municipal and cities with an automated meter read.
For those in the electric business, the ability to provide this service to water utilities is a very common line item on the business case cost justification spreadsheets.Most electric utilities believe that being able to offer water utilities a monthly meter read, when up until now these utilities have read quarterly, is akin to offering these cities and municipalities the ability to leap into the 21st century of meter reading and billing.
Electric utilities are not alone in this long standing assumption that water utilities would be happy, in almost cases, with a monthly meter read.Many of the electric AMR system vendors that sold only to the electric utility sector have incorporated only a minimalist data collection attitude when building the "add-on" water AMR functionality.Electric AMR marketing and engineering gurus have used water’s past history of infrequent meter reads to determine a very basic level of read functionality, even though the data is retrieved and transmitted over a fixed network system.In the past, it was perceived that water was a cheap commodity, that actual billing for most water utilities is bi-monthly, and that at best, water meter reading would only migrate to monthly reads and bills, at any point in the foreseeable future.
The result based on these past hypotheses has now left some AMR vendors, particularly those that dominated the electric AMR sector, with a less than robust option for water data collection and management software.
Water – Not A Cheap Commodity Anymore
More than two years ago AWWA indicated that water utility costs, and hence rates, would increase by 18% - 20% over the next five years.For just about everyone who pays for city water and sewer services, this increase has not only already occurred, but is now slated to keep reoccurring every year for the next three to five years!That means water and wastewater rates are increasing at a faster pace than any electric utility’s rates in North America today!
Backflow water prevention, decaying infrastructure, exponential customer growth, lack of capacity, and unaccounted for water are just some of the major reasons why water utilities need to adopt a customer usage and conservation mentality.This cannot be achieved with a monthly meter read generously provided to them on a monthly basis by their good friends in the electric business.
If just the water that is lost could be identified, and then used instead of wasted, most water utilities would be able to harness and control some of their escalating operational costs.Sadly, for the electric utilities that have included water utility meter reading on their business case spreadsheets, this means providing near real time data to identify "no flow" that in turn can be converted into leak detection alarm and notification reporting.Bandwidth, high/low data analysis in near real time, along with robust "water-centric" data archiving and management software are big selling features for water utilities who are now dealing with capital intensive and resource constriction issues.
Should Electric and Water AMR systems converge?
The answer from a prudent taxpayer perspective is "yes."The answer based on current AMR technology deliverables as well as overall utility understanding and skill sets in managing a multi-utility AMR system with extensive data collection and management functions is most certainly "no."
ACL Inc. is well known for its landmark work in multi-utility AMR systems.In 1993 the Region of Peel with Brampton Hydro, Hydro Mississauga and Consumers Gas proved that utilities could read meters using a jointly owned AMR system in both a centralized and de- centralized data collection configuration.What was never explored, at that time, was intensive data collection requirements and the resulting software management and trending capabilities that would be needed to address a high frequency of reads and differential rates for both water and gas.This data requirement has basically evolved over the past 5 years.
Most electric utilities have not yet even put in mobile meter reading much less an AMR system that is connected to a standalone telecommunications infrastructure which is responsible for collecting and managing hourly data collection tasks on a daily basis from every meter in their service territory. In fact, most utilities’ total experience in this area revolves around commercial and industrial daily profiling data collection primarily connected to dial up and dedicated phone lines. The AMR systems needed to collect hourly data and manage communication networks connected to all residential customers must operate at a much higher level of sophistication whereautomated programs provide daily or more frequent reporting of network status, meter read anomalies, trending of meter reading and network anomalies, and generation of trouble tickets for visual checks, etc.
Couple the above network management reporting requirements with the integration of work-order management that is necessary to install and track both the meters and the AMR device at each customer site, perform nightly updates to the CIS, maintain meter and AMR device inventory, perform device upgrades, change AMR device parameters in conformance with ad hoc pricing for CPP and TOU, perform first and last reads, track soft connect/ disconnects, etc. and it is undoubtably wise for most electric utilities to get their own houses in order prior to offering the same level of intensive data collection to address water utility issues.
Utility personnel and inter-departmental organizational structures are in for significant changes with the implementation of a fixed network AMR system--especially if they are to use the customer information to its true value potential.Most importantly, electric utility staff must become adept at using the information to address all facets of their core business.With this achieved they now have the proven expertise to show they are capable in providing data collection and network management on their AMR systems and can confidently provide the same level of service to their water utility counterparts.
Will Water Be Waiting?
Maybe not too surprisingly, water utilities have purchased more fixed network systems than electric utilities in the past year.It is also not so surprising that water utilities are progressing more quickly into building in-house reporting capabilities using the customer usage information to identify leaks in addition to building and offering time of day and water conservation monitoring programs.Water AMR vendors specializing in water utility metering applications, offer the data collection capability lacking in some "electric-first" AMR systems.Escalating water/wastewater rates make many city utilities act now even if they would be happy with an outsourced AMR system.
Is there a Business Case Line Item? Yes and No.
Core business requirements and new business mandates for peak load management must come first.Ancillary services devoted to new revenue can follow.Most AMR adjunct or enhanced businesses will be better defined as utility staff gain the experience necessary to run their own AMR systems and networks.With AMR lifecycle and change-out policies averaging between 10 – 15 years, it is anticipated that convergence of water and electric AMR networks will occur as the second iteration of these systems is implemented.Right now it is just a question of can all utilities get their feet wet with AMR.After that it is only a matter of determining whose feet are wetter!
About Carolyn Kinsman
Carolyn Kinsman, President of Automated Communication Links Inc., has been consulting to the utility industry for over 15 years.She is well known for developing successful and innovative AMR system analysis, building business cases and deployment strategies for electric, gas, and water utilities in North America.Comments and discussions regarding this article can be directed to aclinc@aol.com
The consideration of AMR and fixed networks continues to gain high levels of interest as well as accelerated deployment growth for both electric and water utilities.There are, however, many preconceived ideas about which utility sector actually requires the high level of data collection functionality that can only be delivered with the implementation of fixed AMR networks.
Fixed networks are selected by utilities that require--and can justify--that they need more than simply a monthly meter read.That being said, the actual data collection and functionality requirements beyond the basics vary significantly depending on what a particular utility is trying to achieve.Utilities may prove that increased data will optimize their day to day operations.Others, with a close tie to their customers, want to increase their level of customer service program options, and in turn improve their overall customer satisfaction and loyalty levels.Still others, see AMR as a means to improving cash flow, providing new rates and incentives that enable resource monitoring and in turn result in deferral or even negating the need for increased capital for new capacity and/or supporting resource infrastructure.
Much press is devoted to the electric utility markets in California and Ontario.Both regions are attempting to justify advanced AMR systems that are able to collect profile data, and in addition are able to offer customers Time of Use(TOU) as well as Critical Peak Pricing (CPP).Mitigation of a utility’s overall load from a peak demand perspective is the expected result and accrues significant savings in capital that would have been used for building new generation.Deployment of AMR can take place over a one to three year period (much faster than lead time needed for a cogeneration or peaking plant) and is in effect, much like building a virtual power plant, only with far more positive affects on the environment.
While many in the electric utility sector, appreciate the potential financial payback achieved with the implementation of advanced AMR, an equal number of people still wonder who will ultimately pay for the installation and management of these automated systems.Customers are perceived as the most obvious option.However, commissions and regulators are hoping new revenue streams including that of reading city and municipal water meters may be a way of enhancing the payback on most electric utility AMR cost justification spreadsheets.
The theory is that if electric utilities select and install leading edge AMR networks (with possibly a two way communication link) that this same system infrastructure can then be easily configured or adapted to connect to water utilities and hence provide municipal and cities with an automated meter read.
For those in the electric business, the ability to provide this service to water utilities is a very common line item on the business case cost justification spreadsheets.Most electric utilities believe that being able to offer water utilities a monthly meter read, when up until now these utilities have read quarterly, is akin to offering these cities and municipalities the ability to leap into the 21st century of meter reading and billing.
Electric utilities are not alone in this long standing assumption that water utilities would be happy, in almost cases, with a monthly meter read.Many of the electric AMR system vendors that sold only to the electric utility sector have incorporated only a minimalist data collection attitude when building the "add-on" water AMR functionality.Electric AMR marketing and engineering gurus have used water’s past history of infrequent meter reads to determine a very basic level of read functionality, even though the data is retrieved and transmitted over a fixed network system.In the past, it was perceived that water was a cheap commodity, that actual billing for most water utilities is bi-monthly, and that at best, water meter reading would only migrate to monthly reads and bills, at any point in the foreseeable future.
The result based on these past hypotheses has now left some AMR vendors, particularly those that dominated the electric AMR sector, with a less than robust option for water data collection and management software.
Water – Not A Cheap Commodity Anymore
More than two years ago AWWA indicated that water utility costs, and hence rates, would increase by 18% - 20% over the next five years.For just about everyone who pays for city water and sewer services, this increase has not only already occurred, but is now slated to keep reoccurring every year for the next three to five years!That means water and wastewater rates are increasing at a faster pace than any electric utility’s rates in North America today!
Backflow water prevention, decaying infrastructure, exponential customer growth, lack of capacity, and unaccounted for water are just some of the major reasons why water utilities need to adopt a customer usage and conservation mentality.This cannot be achieved with a monthly meter read generously provided to them on a monthly basis by their good friends in the electric business.
If just the water that is lost could be identified, and then used instead of wasted, most water utilities would be able to harness and control some of their escalating operational costs.Sadly, for the electric utilities that have included water utility meter reading on their business case spreadsheets, this means providing near real time data to identify "no flow" that in turn can be converted into leak detection alarm and notification reporting.Bandwidth, high/low data analysis in near real time, along with robust "water-centric" data archiving and management software are big selling features for water utilities who are now dealing with capital intensive and resource constriction issues.
Should Electric and Water AMR systems converge?
The answer from a prudent taxpayer perspective is "yes."The answer based on current AMR technology deliverables as well as overall utility understanding and skill sets in managing a multi-utility AMR system with extensive data collection and management functions is most certainly "no."
ACL Inc. is well known for its landmark work in multi-utility AMR systems.In 1993 the Region of Peel with Brampton Hydro, Hydro Mississauga and Consumers Gas proved that utilities could read meters using a jointly owned AMR system in both a centralized and de- centralized data collection configuration.What was never explored, at that time, was intensive data collection requirements and the resulting software management and trending capabilities that would be needed to address a high frequency of reads and differential rates for both water and gas.This data requirement has basically evolved over the past 5 years.
Most electric utilities have not yet even put in mobile meter reading much less an AMR system that is connected to a standalone telecommunications infrastructure which is responsible for collecting and managing hourly data collection tasks on a daily basis from every meter in their service territory. In fact, most utilities’ total experience in this area revolves around commercial and industrial daily profiling data collection primarily connected to dial up and dedicated phone lines. The AMR systems needed to collect hourly data and manage communication networks connected to all residential customers must operate at a much higher level of sophistication whereautomated programs provide daily or more frequent reporting of network status, meter read anomalies, trending of meter reading and network anomalies, and generation of trouble tickets for visual checks, etc.
Couple the above network management reporting requirements with the integration of work-order management that is necessary to install and track both the meters and the AMR device at each customer site, perform nightly updates to the CIS, maintain meter and AMR device inventory, perform device upgrades, change AMR device parameters in conformance with ad hoc pricing for CPP and TOU, perform first and last reads, track soft connect/ disconnects, etc. and it is undoubtably wise for most electric utilities to get their own houses in order prior to offering the same level of intensive data collection to address water utility issues.
Utility personnel and inter-departmental organizational structures are in for significant changes with the implementation of a fixed network AMR system--especially if they are to use the customer information to its true value potential.Most importantly, electric utility staff must become adept at using the information to address all facets of their core business.With this achieved they now have the proven expertise to show they are capable in providing data collection and network management on their AMR systems and can confidently provide the same level of service to their water utility counterparts.
Will Water Be Waiting?
Maybe not too surprisingly, water utilities have purchased more fixed network systems than electric utilities in the past year.It is also not so surprising that water utilities are progressing more quickly into building in-house reporting capabilities using the customer usage information to identify leaks in addition to building and offering time of day and water conservation monitoring programs.Water AMR vendors specializing in water utility metering applications, offer the data collection capability lacking in some "electric-first" AMR systems.Escalating water/wastewater rates make many city utilities act now even if they would be happy with an outsourced AMR system.
Is there a Business Case Line Item? Yes and No.
Core business requirements and new business mandates for peak load management must come first.Ancillary services devoted to new revenue can follow.Most AMR adjunct or enhanced businesses will be better defined as utility staff gain the experience necessary to run their own AMR systems and networks.With AMR lifecycle and change-out policies averaging between 10 – 15 years, it is anticipated that convergence of water and electric AMR networks will occur as the second iteration of these systems is implemented.Right now it is just a question of can all utilities get their feet wet with AMR.After that it is only a matter of determining whose feet are wetter!
About Carolyn Kinsman
Carolyn Kinsman, President of Automated Communication Links Inc., has been consulting to the utility industry for over 15 years.She is well known for developing successful and innovative AMR system analysis, building business cases and deployment strategies for electric, gas, and water utilities in North America.Comments and discussions regarding this article can be directed to aclinc@aol.com
