Next-Generation Metering

Smart metering not only enables a utility to better react to grid events through intelligent grid capabilities; it also enables companies to better serve customer needs and adds significant operational efficiency. Next Generation Power & Energy talks to Sensus’ George Uram to find out more.

NGPE. Where is the electric utility industry in adoption of smart metering technology right now?

GU. Well, I think in North America the electric utility industry is at the start of a wave of smart meter technology adoption. Many of the larger utilities in North America have either just recently gone through a selection process to choose a smart metering system, or are heavily into the process of evaluating the installation of smart metering technology. This is a material change from where the industry was five years ago, where they were largely in an evaluation phase. So I think we’re on the cusp of being in an implementation phase for smart metering almost across the entire continent.

NGPE. I guess this is largely in response to the Energy Policy Act of 2005?

GU. There are a number of drivers: the Energy Policy Act is certainly one, while the realization that loads keep increasing and smart metering provides a way to reduce the need for additional generation is another. Finally, I think utilities have moved beyond the model of just displacing cost through reduction of meter reading expenses, and have come to the realization that the application of smart metering can give them a new level of cost savings and a better way of addressing customer needs.

NGPE. And so what do you envision as your company’s role in the future of AMI?

GU. We provide both electric meters and communication systems. Our systems are two-way and provide for smart metering applications, and they have a number of benefits over previous systems in terms of the robustness of the application. And so we’re a system supplier and a software supplier to the industry.

NGPE. Obviously there are numerous AMI solutions on the market. So how does the Sensus FlexNet System differ from others?

GU. Our system is differentiated from the others in a couple of ways. There are really two flavors of smart metering system; one uses power lines as a communication medium, the other one uses radio as a communication medium. Ours is a radio-based system. In contrast to a number of the other radio-based systems, we use a tower-based system that provides for longer range and reduced infrastructure costs. That’s one differentiation.

The second differentiation is that we use a licensed frequency band, whereas most of the other systems operate on unlicensed radio bands. This gives us a more robust system in terms of the ability to communicate, because we’re on a radio band that is free of interference; it also ensures that the infrastructure will not have to be added to at a later date. Our system is two-way, and it provides a wealth of applications for customers.

NGPE. How will the combination of FlexNet and the smart meter positively impact upon utilities?

GU. Smart meters provide the ability to measure a lot of different functions that utilities had previously not been able to either measure or have access to. When you combine that with a communication system that allows the utility to get information (for example, on how loads are being used) on a vary rapid basis, and to take action on that information ñ whether that is changing pricing, providing information to customers, or in some cases being able to connect or disconnect loads – then that is a significant advantage.

NGPE. You are a relatively new player in the electricity industry; what approach have you taken to successfully grow the business?

GU. Well, we’ve taken two approaches. Our first move into the electric utility industry was the development of our iCon line of meters specifically designed for AMI applications. Our second step was the development of a system that allowed for integration of two-way communication into the meters and building up a smart metering system. Because they are relatively new, we’ve conducted extensive testing programs and extensive field trials with the system.

NGPE. So I guess the fact that you are relatively new has allowed you to come in higher on the technology curve?

GU. That’s exactly right. Although Sensus as a company has been in the meter production and meter reading business for a number of years, we’ve entered the electric part of the industry at a higher level of technology. We don’t have legacy systems that we have responsibility for, so we’ve been able to implement new generation technologies almost immediately.

NGPE. There’s also been a lot in the press recently about a number of large electricity contracts being awarded to Sensus. So what are some of the core system features that behind FlexNet being cited for those particular contracts?

GU. We recently announced two major contracts in North America. Those selections were based upon the capabilities of the system to cover a large geographic area, particularly where the terrain is rather rugged, and to do so at a cost-effective manner and to provide advanced features to the utility.

One was with Portland General Electric, an electric utility in the northwestern part of the United States that has roughly 800,000 electric customers. Over the next several years we will be providing a complete system, including the communication system and meters for their system.

The second contract that was announced was with Alliance Energy. Alliance is a combined gas and electric utility with a total of about 1.4 million customers when you combine the gas and the electric systems. One of the features of the FlexNet system is the ability to handle water, gas and electric metering on either a standalone or a combined basis; and one of the reasons that I think Alliance chose Sensus was just that ability to handle both gas and electric metering applications and to provide communications to those meters over a diverse and extended geography.

NGPE. What major developments do you see shaping the electric utility industry over the next 18 months in terms of the growth of the smart metering industry and the rise of areas such as demand-side management?

GU. Well, the Energy Policy Act has spurred utilities to move more quickly in looking at smart metering as one way of providing demand-side management. As I indicated earlier, we know from activity in the marketplace that many utilities have either made selections, are in the process of making selections, or are in the later stages of evaluation of technologies. And in terms of the amount of activity, there are a large number of utilities that will make selections and start projects within the next 18-24 months. So there will be a very high degree of activity over that period of time as utilities start down the road of selecting and rolling these systems out across their territories.

NGPE. How do you think Sensus is placed to capitalize on that growth?

GU. We believe we are very well placed indeed. We think we’ve got the best technology in the marketplace and that we’re well positioned to respond to that demand with exactly the kinds of technology that utilities need.

BIO:
George Uram was appointed head of Sensus’ AMI Division in July 2006 after seven years in gas metering and senior positions in sales, marketing and business development. Before joining Sensus he spent 31 years with Westinghouse in the power and environmental business. Sensus is a leading provider of high-value metering, automatic meter reading and advanced metering infrastructure system solutions for water, gas, electric and heat utilities.