Today, more than half of all states have smart metering legislation or policies in place, and utility companies across the U.S. are updating their legacy systems to adhere to mandates that are either already in place or soon to take effect. However, utilities oftentimes underestimate the complexity of AMI deployment; that is, recognizing the importance of quickly, efficiently and accurately carrying out deployment as the key to a successful project overall.

The Alabama Power Company (APCo) business case indicated that by completing the project early, the utility would be able to drop all manual meter reading efforts earlier than originally planned, saving significantly on the associated labor costs. Completing the project early also allowed APCo to redirect management and other project resources to focus on other aspects of their business also in need of such support.

The main objective was to replace the meters, but the task was actually more than just a meter exchange; successful deployment is also about building sustainable practices and long-term relationships. Moreover, APCo had several objectives that went well beyond simple meter installation, which included cost reduction; having more accurate load and outage data; cleaning up bad connections in the meter bases; finding overloaded transformers, and more. Thus, the project also involved working out logistics, testing, warehousing, IT management and billing.

Overall, the most common reasons among utilities for pursuing AMI deployment include cost reduction, more accurate load and usage data, improved outage response and peak demand management. In order to achieve a successful full deployment, several key factors must be considered, two of the most important of which are strategy and planning.

Strategy and Planning

APCo made the decision to upgrade its metering systems to AMI in 2008, the first phase of which was to createan AMI deployment plan. Deploying a large-scale meter implementation involving well over a million meters, required a detailed and comprehensive blueprint before any physical deployments could begin. Having worked previously with multimillion meter projects, best practices derived from lessons learned were transformed into an AMI deployment playbook developed specifically for Alabama Power.

Moreover, as utility companies across the nation upgrade customer meters, it is important to keep in mind that projects at their core, smart meter deployment initiatives are fundamentally technology deployment projects. Among other things, this means that databases and a wide range of digital parts and accesssories must often deploy concurrently with physical meter installations. As a result, there is a huge amount information to absorb, making this type of detailed planning and guidance a key ingredient in any successful project.

This excerpt from the “Project Playbook” shows various process relationships for a typical AMI project.
(click to enlarge)

Nearly eight months before APCo’s installation began, the Metadigm team began working closely with various departments within the utility. These included operations, customer service, billing and IT. Over time, a full AMI deployment touches nearly every department within the utility organization. During this process, key contacts at Alabama Power were provided with a job-specific procedure list for each event that would occur before any work started.

The value of precise planning cannot be overstated: In the initial planning phase, Metadigm led a process to verify smart meter functionality in the field. Then, working with the APCo staff, conduct a field test was conducted to verify that the measurement on the internal micro-transceiver matched the measurement displayed on the outside of the meter. This type of assessment obviated the need for revisiting a site to confirm the accuracy of the new meter, and more importantly, prevented any inaccurate and/or inconsistent meter readings.

Warehousing and Inventory Management Keep Project On Track

Warehousing and inventory management are more than just receiving, storing and deploying meters from a centralized location. Proper management represents the foundation for a successful AMI deployment. As the project progressed, each of the following factors had to be carefully considered as part of a close working relationship formed at the outset of the project:

• Supply chain management
• Shipping and receiving planning and coordination
• Offering available rack space in a dry and fully secured environment
• Tracking inventory from receipt of new meter to installation of new meter
• Reporting inventory on a daily basis
• Distribution of new meters for forward deployment
• Collection of used meters and security of used meters
• Salvaging of used meters

The first three regions were completed from one centralized warehouse, subsequently moving the operations according to the schedule. Notably, being able to operate several satellite warehouse operations helped to complete the project much faster than expected. And by moving the warehouse locations, technicians working in a centralized area could maximize the field installation and testing efforts. For example, when the schedules changed on short notice – often due to regional needs – temporary warehousing was set up to allow the installation crews to be dispatched out of a localized area.

Maintaining warehousing kept the project on-track without any interruption to forward deployment. This operating method provided quick problem resolution and saved money, in part by eliminating the need to ship meters back to the manufacturer before being redirected.

Full Deployment Requires Full Communication

Alabama Power and Metadigm worked together closely to develop a robust internal communication plan to educate Alabama Power’s employees about the project. Moreover, Metadigm trained each field technician on how to properly respond to customer questions and concerns regarding the work being done on their property and to keep the language and conversation positive, informative and pertinent.

Metadigm field technicians represented Alabama Power on each customer’s doorstep, making it vital that they abide by strict safety requirements; are dressed and groomed appropriately; are equipped with the proper tools for installation and safety; can communicate their duties effectively; and can field any questions customers might have.

Being trained in what NOT to say can be as important as what TO say, so when customers needed to direct their complaints, questions or concerns to APCo, the contractor fielded those with a 24/7 virtual support team – much like having a “Fix It” button at their disposal.

Data Management Expertise

As most utilities are well aware, accurate billing depends on accurate data collection and management. If the last bill was incorrect, revenue may be lost forever. Accurate data is what AMI is all about.

Alabama Power provided historical billing data for each customer well in advance of meter deployment, which was used to compute an expected meter read for each work site. By using discrete data points like this, multiple verification steps were able to be performed as an integral part of the meter change-out process.

Network operations center where data analysts
run automated daily audits for all completed work.

All data collected must then pass through the contractor’s network operations center where automated analytics perform multiple verification checks for all completed work records. This analysis provided a 100% audit that resulted in quality billing data being delivered to Alabama Power each work day.

A True Partnership

Metadigm’s development team worked closely with Alabama Power pre-deployment and worked side-by-side with Sensus Metering Systems – APCo’s smart meter provider – to integrate Metadigm’s handheld units with the Sensus meter verification unit. For both companies, being flexible was a must. Several situations arose causing the teams to work a creative solution in a short time. Being flexible and able to ramp up the necessary field forces quickly, Alabama Power Company’s needs were met on short notice, but without sacrificing quality, workmanship and attention to detail throughout the project.

This close working relationship – built and strengthened throughout the course of the project – created a firm foundation that also helped lead to a successful deployment. Moreover, the importance and value of having a partner that will work to correct any problems or challenges that arise; quickly and effectively respond to complaints; and can work effectively with Alabama Power’s customers to form a true and lasting partnership was clearly a critical ingredient in the overall success of the APCo project.

About the Authors

Reginald Murchison is Manager of Metering Services for Alabama Power Company, a subsidiary of the Southern Company. Reggie has responsibilities for the design, development and application of revenue meters and meter systems, including residential, commercial, industrial, substation/transmission metering, and AMI systems. He is currently the 1st Vice President of the EEI Metering Committee and the past Chairman of the AEIC Meter and Service Committee.

Reggie has over 31 years experience in the utility industry at Alabama Power Company in the areas of power generation, marketing, power quality, distribution support, human resources and for the past ten years in metering. He holds a BSEE from Tuskegee University, MSEE from the University of Alabama in Birmingham, and a MBA from Samford University (Birmingham, Alabama) and is a registered Professional Engineer in the State of Alabama.

Robert Shively is President and CEO of Metadigm Services. He envisions an aligned energy infrastructure – one that links power generation to power consumption in real-time. According to information from the EIA, over half of the electric energy produced today is lost. Shively is leading a charge to better manage utility assets in order to more fully utilize this country’s energy supply in real-time through intelligent metering, monitoring, and proactive maintenance.

Before forming Metadigm Services, Shively was president of SM&P Utility Resources, a division of Laclede Group that specialized in underground facilities. Under Shively’s leadership, the company increased revenue from $85 million to $170 million, which also raised shareholder value $155 million.

Shively earned his M.B.A. from Duke University’s Fuqua School of Business and a Bachelor of Arts in economics from Furman University. He serves as a board member for Area Wide Protective, a utility services company owned by Blue Point Capital Partners and is a frequent presenter and educator on the topic of intelligent asset management for utilities, municipalities, and co-operatives.