Since its inception, electrical production has driven new technologies, and entire industries have sprung from our nation’s abundant supply of reliable and relatively inexpensive power.It’s no surprise that electric utilities continue to embrace technology to systematically improve their efficiency, especially as fuel costs vary day-to-day.
Today, automated meter reading (AMR) solutions promise to revolutionize the industry with downloadable, automated meter data that reduces costs and strengthens customer’s service for those in inaccessible locations.Energy providers are revamping their business practices to download meter data automatically rather than by manually reading meters, thus reducing costs and customer service challenges that arise from estimating data from remote locations.These factors result in enormous industry impact.
At the same time, AMR manufacturers have added system features in recent years and utilities are getting even more value for their investment.Utilities can now meter and monitor substations, gather data, and gauge electricity supply and demand for an array of core business applications.Advanced AMR features include outage notification, brownout warnings, load research, energy management and more.The options along the evolutionary migration path of AMR continue to grow.Satellites, which began in the early 1970s to send communications networks into orbit, now provide remote meter reading to electric utilities and service companies as diverse as Caterpillar, GE and the U.S. Coast Guard.
Management, who is responsible for making AMR technology decisions at electric utilities, must attempt to balance the downstream interests of the company against an abundant supply of elegantly engineered products promising to make work faster, cheaper and easier.For some, analysis paralysis can set in.
Go Straight to the Source
Many investor-owned utilities, municipalities and cooperatives have explored a variety of AMR technologies in their efforts to optimize processes with a best-fit solution.Existing deployments have occurred across a wide chasm contingent on a variety of factors.According to industry research, some companies register as little as one half of one percent AMR coverage, and more aggressive companies can reach as much as 85 percent of the customer base with the technology.Accuracy, reliability and data security always rank highly on the list of criteria for choosing AMR technology and rightfully so.By listening attentively, you can also hear a deeper-rooted skepticism.
Open-ended dialogue with decision makers shows a common theme of frustration with AMR’s rapid advancement and impending obsolescence.For some, it seems that every quarter bestows some new technology that could reshape the future value of AMR.Satellites have a lifespan of more than 10 years, but not all technologies hold up the same.Energy providers that are accustomed to choosing technology with an ROI over a 10- or 15-year lifespan are exploring uncharted territory in much of the rapidly changing AMR world.
Choosing a solution becomes the corporate equivalent of investing personally in a quality digital camera or a new cell phone.With prices dropping and features rising, you don’t know where or when it’s best to jump in.Common sense says that if you wait until you find a technology that’s not going to be obsolete, you’re in for a long wait.AMR purchasers are no different.They want a reasonably affordable, easy-to-grow-with technology that will not need to be replaced anytime soon.
Another emerging trend is that more buyers are asking about greater interoperability or common standards across today’s discordant metering systems and communication devices.As productivity and the growing use of information and communication technology are further emphasized, it is clear that electric utilities desire more open architecture and compatibility over time.
Technological Myopia
For utilities considering AMR solutions today, there seems to be an inverse relationship between a wealth of available technology features and the level of certainty experienced in choosing an AMR solution.Ironically, AMR solution providers publicizing every incremental advance and product evolution only make it more difficult for the market of energy providers to decisively launch an AMR deployment plan.
The evolution of AMR can cause decision makers to become myopic and narrowly focused as new technologies and features are constantly introduced.Utilities, which tend to err on the side of caution, choose familiar solutions that other utilities have implemented or ones with proven technology history.Inevitably, the convergence of technology rewards those who wait, with the next state-of-the art solution and state-of-the-art implementation headache.That may be why an estimated 85 percent of the market is still awaiting conversion to AMR.While they do, a large segment of commercial and industrial customers are left unattended to look elsewhere for valuable energy management information.
In reality, choosing an AMR technology is more about measuring your options against the unique needs you are fulfilling and the unique customers you are serving today.Utilities should remain flexible in trying new solutions.As a trend, most AMR deployments will include a mixture of viable technologies to support residential and C&I customers, from RF to power line carrier to satellite service.
AMR in the Field
The unique needs of one investor-owned electric utility (IOU), serving the northern plains of the U.S., result from substations located in hard-to-reach and very remote locations.Despite this challenge, the IOU desired a timely and efficient way to provide daily load data from the substation’s meters.The data, used for system optimization, load forecasting and determining system load, was in some instances taking up to six weeks to be delivered.This was also problematic because the IOU’s independent system operator required daily system reports to forecast the next day’s total load.
This IOU narrowed down the field of solutions based on the remote nature of its substations.Plain Old Telephone Service (POTS) was dismissed due to high monthly service charges and the fact that it was prone to lightning damage.The local cellular providers, anticipating the obsolescence of the service, discouraged the utility from pursuing analog cellular communication.Digital cellular service that might have been a good option normally was not, as its network footprint in the company’s service area was very small.
The IOU ultimately chose satellite, the newest technology for AMR, and initially installed satellite kits at 165 substations to remotely collect interval data from its meters.Remote installation of a satellite kit is similar to a digital cellular phone installation.Only a whip or similar antenna needs to be mounted outside, and there is no cumbersome satellite dish involved.With installations complete, the utility began receiving data from its distribution substation metering sites back to the central MV-90 system.Using an FTP link right to the system, the data push was automatic.
The overall results have been positive, with a noticeable impact on efficiency and productivity, especially with the elimination of the six-week delay in determining system load data.With reliable 15-minute interval data being delivered daily, the IOU is now able to analyze its system load efficiently and accurately, and deliver timely data to the region’s independent system operator (ISO).An added benefit discovered by the utility was that its engineers could use the satellite data to monitor their substation transformers.This allows the utility to ensure transformers are properly loaded, thus reducing costly repairs and keeping customers out of the dark.
With 96, 15-minute data packets being delivered daily, the utility does not need to communicate with its recorders directly or on-demand.They feel the increased AMR reliability offered through the satellite service continues to help the IOU focus on its core business and become a more efficient power company.
Conclusion
AMR manufacturers are certain to continue innovating and bringing new business value to the table and satellite technology is just one example of that.While the future of AMR technology may be difficult to predict, it continues to hold great promise for higher productivity, reduced costs, increased performance, and enhanced profits.
An underlying benefit sure to be identified quickly is an enhanced utility-customer relationship.Through energy measurement, analysis and control, AMR manufacturers’ solutions improve that relationship.These quantifiable economic results at or near the point of energy consumption allow customers to satisfy regulatory, corporate and institutional requirements.It’s also a feasible option to help utilities and customers identify and solve energy usage problems; update utility demand response programs to make them more responsive to customer requests; and validating and marketing customer-facing energy conservation programs. In the final outcome, AMR technology will help electric utilities continue to kindle American industry with reliable electricity and a better way to manage it more efficiently than ever.
Avoiding Myopia: Technology & Communications Options For AMR
Dedicated Phone Line
Cellular Phones
Satellite Communications
Power Line Carrier
Additional resources on AMR:
About the Author
Steve Metcalf, Business Development Manager for Hunt Power, works with utilities to provide comprehensive demand-response programs and energy efficiency solutions.For 26 years, he has worked with numerous utilities throughout the U.S.Mr. Metcalf received a master’s degree in administration from the University of Northern Colorado.
Today, automated meter reading (AMR) solutions promise to revolutionize the industry with downloadable, automated meter data that reduces costs and strengthens customer’s service for those in inaccessible locations.Energy providers are revamping their business practices to download meter data automatically rather than by manually reading meters, thus reducing costs and customer service challenges that arise from estimating data from remote locations.These factors result in enormous industry impact.
At the same time, AMR manufacturers have added system features in recent years and utilities are getting even more value for their investment.Utilities can now meter and monitor substations, gather data, and gauge electricity supply and demand for an array of core business applications.Advanced AMR features include outage notification, brownout warnings, load research, energy management and more.The options along the evolutionary migration path of AMR continue to grow.Satellites, which began in the early 1970s to send communications networks into orbit, now provide remote meter reading to electric utilities and service companies as diverse as Caterpillar, GE and the U.S. Coast Guard.
Management, who is responsible for making AMR technology decisions at electric utilities, must attempt to balance the downstream interests of the company against an abundant supply of elegantly engineered products promising to make work faster, cheaper and easier.For some, analysis paralysis can set in.
Go Straight to the Source
Many investor-owned utilities, municipalities and cooperatives have explored a variety of AMR technologies in their efforts to optimize processes with a best-fit solution.Existing deployments have occurred across a wide chasm contingent on a variety of factors.According to industry research, some companies register as little as one half of one percent AMR coverage, and more aggressive companies can reach as much as 85 percent of the customer base with the technology.Accuracy, reliability and data security always rank highly on the list of criteria for choosing AMR technology and rightfully so.By listening attentively, you can also hear a deeper-rooted skepticism.
Open-ended dialogue with decision makers shows a common theme of frustration with AMR’s rapid advancement and impending obsolescence.For some, it seems that every quarter bestows some new technology that could reshape the future value of AMR.Satellites have a lifespan of more than 10 years, but not all technologies hold up the same.Energy providers that are accustomed to choosing technology with an ROI over a 10- or 15-year lifespan are exploring uncharted territory in much of the rapidly changing AMR world.
Choosing a solution becomes the corporate equivalent of investing personally in a quality digital camera or a new cell phone.With prices dropping and features rising, you don’t know where or when it’s best to jump in.Common sense says that if you wait until you find a technology that’s not going to be obsolete, you’re in for a long wait.AMR purchasers are no different.They want a reasonably affordable, easy-to-grow-with technology that will not need to be replaced anytime soon.
Another emerging trend is that more buyers are asking about greater interoperability or common standards across today’s discordant metering systems and communication devices.As productivity and the growing use of information and communication technology are further emphasized, it is clear that electric utilities desire more open architecture and compatibility over time.
Technological Myopia
For utilities considering AMR solutions today, there seems to be an inverse relationship between a wealth of available technology features and the level of certainty experienced in choosing an AMR solution.Ironically, AMR solution providers publicizing every incremental advance and product evolution only make it more difficult for the market of energy providers to decisively launch an AMR deployment plan.
The evolution of AMR can cause decision makers to become myopic and narrowly focused as new technologies and features are constantly introduced.Utilities, which tend to err on the side of caution, choose familiar solutions that other utilities have implemented or ones with proven technology history.Inevitably, the convergence of technology rewards those who wait, with the next state-of-the art solution and state-of-the-art implementation headache.That may be why an estimated 85 percent of the market is still awaiting conversion to AMR.While they do, a large segment of commercial and industrial customers are left unattended to look elsewhere for valuable energy management information.
In reality, choosing an AMR technology is more about measuring your options against the unique needs you are fulfilling and the unique customers you are serving today.Utilities should remain flexible in trying new solutions.As a trend, most AMR deployments will include a mixture of viable technologies to support residential and C&I customers, from RF to power line carrier to satellite service.
AMR in the Field
The unique needs of one investor-owned electric utility (IOU), serving the northern plains of the U.S., result from substations located in hard-to-reach and very remote locations.Despite this challenge, the IOU desired a timely and efficient way to provide daily load data from the substation’s meters.The data, used for system optimization, load forecasting and determining system load, was in some instances taking up to six weeks to be delivered.This was also problematic because the IOU’s independent system operator required daily system reports to forecast the next day’s total load.
This IOU narrowed down the field of solutions based on the remote nature of its substations.Plain Old Telephone Service (POTS) was dismissed due to high monthly service charges and the fact that it was prone to lightning damage.The local cellular providers, anticipating the obsolescence of the service, discouraged the utility from pursuing analog cellular communication.Digital cellular service that might have been a good option normally was not, as its network footprint in the company’s service area was very small.
The IOU ultimately chose satellite, the newest technology for AMR, and initially installed satellite kits at 165 substations to remotely collect interval data from its meters.Remote installation of a satellite kit is similar to a digital cellular phone installation.Only a whip or similar antenna needs to be mounted outside, and there is no cumbersome satellite dish involved.With installations complete, the utility began receiving data from its distribution substation metering sites back to the central MV-90 system.Using an FTP link right to the system, the data push was automatic.
The overall results have been positive, with a noticeable impact on efficiency and productivity, especially with the elimination of the six-week delay in determining system load data.With reliable 15-minute interval data being delivered daily, the IOU is now able to analyze its system load efficiently and accurately, and deliver timely data to the region’s independent system operator (ISO).An added benefit discovered by the utility was that its engineers could use the satellite data to monitor their substation transformers.This allows the utility to ensure transformers are properly loaded, thus reducing costly repairs and keeping customers out of the dark.
With 96, 15-minute data packets being delivered daily, the utility does not need to communicate with its recorders directly or on-demand.They feel the increased AMR reliability offered through the satellite service continues to help the IOU focus on its core business and become a more efficient power company.
Conclusion
AMR manufacturers are certain to continue innovating and bringing new business value to the table and satellite technology is just one example of that.While the future of AMR technology may be difficult to predict, it continues to hold great promise for higher productivity, reduced costs, increased performance, and enhanced profits.
An underlying benefit sure to be identified quickly is an enhanced utility-customer relationship.Through energy measurement, analysis and control, AMR manufacturers’ solutions improve that relationship.These quantifiable economic results at or near the point of energy consumption allow customers to satisfy regulatory, corporate and institutional requirements.It’s also a feasible option to help utilities and customers identify and solve energy usage problems; update utility demand response programs to make them more responsive to customer requests; and validating and marketing customer-facing energy conservation programs. In the final outcome, AMR technology will help electric utilities continue to kindle American industry with reliable electricity and a better way to manage it more efficiently than ever.
Avoiding Myopia: Technology & Communications Options For AMR
Dedicated Phone Line
- Can be costly on a monthly basis
- Requires costly installation
- May not be practical, especially when conduit or trenching is required
- Can be a location challenge for utilities in remote or rural locations, where installing a traditional phone line can be both expensive and a tumultuous event
- Can be rendered useless in an emergency, natural disaster or terrorist attack
Cellular Phones
- Can have intermittent issues with dependability - meters are stationary, so not every meter location will be able to receive a strong cellular signal, which can also change from day to day
- Are not always available in rural areas – digital services, for example
- Have systems that are constantly being upgraded, which goes against utilities’ capital investment strategies – analog cellular networks, for example, are now being phased out
- Work off of towers - in many cases must be located a few miles apart
- Towers continue to be upgraded causing new dead zones that can leave some meters without a communications line; stranded meters must be read manually
Satellite Communications
- Remain in constant contact with the meters’ radio modules, making them more reliable
- Worldwide coverage, can communicate with remote and hard-to-reach locations
- Are now affordable, but were cost prohibitive in the past
- Designed to transmit data seamlessly
- Installed similarly to an industrial cell phone, which is lower in cost and faster
- Can make a huge difference for utilities in their own transmission and distribution (T&D) operations such as substation monitoring
- Reliable daily communication allows some utilities to capture never before available energy usage information
Power Line Carrier
- Two-way, utility-owned fixed network for meter data collection
- Must use repeaters to communicate with very hard-to-reach locations
- Different communications media is required to get data from the substation to the host computer
- Higher bandwidth needed to prevent congestion as operational elements are added
- Prone to power line noise that can interfere with communications
- Advanced AMR capabilities are very limited because the communications is very slow, and the cost of substation equipment to support this type of network is quite high
Additional resources on AMR:
- AMRA
http://www.amra-intl.org - American Public Power Association
http://www.appanet.org/ - US Department of Energy Office of Energy Efficiency and Renewable Energy
http://www.eere.energy.gov/ - Federal Energy Regulatory Commission
http://www.ferc.gov/ - Institute of Electrical and Electronics Engineers
http://www.ieee.org/portal/site - National Rural Electric Cooperative Association
http://www.nreca.org/
About the Author
Steve Metcalf, Business Development Manager for Hunt Power, works with utilities to provide comprehensive demand-response programs and energy efficiency solutions.For 26 years, he has worked with numerous utilities throughout the U.S.Mr. Metcalf received a master’s degree in administration from the University of Northern Colorado.
