Advanced metering infrastructure is commonly cited today as the most important component of the smart grid even though the smart grid is much more exhaustive than smart metering technology.  A recent survey from Chartwell Publishing indicated that utilities assign the greatest importance to advanced metering, among several smart grid technologies.  The survey noted utilities believe that advanced metering is the greatest smart grid investment they will make.  Traditional metering applications have only been utilized for billing purposes for both electric and water. Advanced metering infrastructure offers a more holistic approach. The Smart Energy Source partnership provides an effective approach to implementing AMI both from an economic position and a business model.  Advanced meters are accurate and contain more “intelligence” than older, electromechanical devices. Research indicates that organizations are “reaping the benefits” of AMI systems in “multidimensional ways” through “added efficiencies and cost savings.”

As emphasized in the graphic below, in order to optimize the overall benefits of AMI, each segment must be considered in the overall business case. This feasibility document provides consideration for the utility, customer and community value propositions. This analysis demonstrates how the City of Stillwater, Central Rural Electric Cooperative and Oklahoma State University can optimize such a deployment jointly and increase the overall AMI value proposition.

The driving force behind AMI technology is enabling utilities and consumers with timely access to information, expanded product options and rate plans, improved service reliability, reduced costs and service fees, expanded consumer control with energy consumption interfaces at the user level. 
The applications driving this value include:

• Electricity theft detection
• Remote disconnect and reconnect
• Distribution automation
• Outage management and restoration
• Time-of-use (TOU) pricing and critical peak pricing
• Transforming loading assessments
• Voltage monitoring
• “Blink” monitoring
• Distributed generation and net metering
• Power quality investigations
• Energy management and demand response programs

Evaluating and deploying an effective AMI system may be one of the greatest challenges and opportunities facing the electric industry. AMI presents a very compelling business model for meeting many current challenges and addressing a number of our future challenges.

Business Process Challenges and Requirements
Technology is known for being disruptive to an organization and to many of the embedded processes throughout the organization. New technology means new process mapping and procedures to effectively reach a new desired efficiency. 

Business Organization Challenges and Requirements
Many of the challenges facing utilities today can be addressed through an effective AMI plan. As stated in a recent survey, the most significant of these is that of leadership. With new demands, new technologies, new legislation, new regulations, etc., individuals (Leadership) will be required to address and confront these challenges. Unlike the past, when many challenges were confronted over a long period of time and with minimal impact, today’s utility will be held to a higher level of accountability as costs increase on all fronts and consumers begin to have additional options through energy management tools and technologies.

Business Customer Challenges and Requirements
Today’s utility customer will not be content with limits on information, service, power quality, reliability, safety, security or economics. With the increased use and dependency on electricity for new innovative electronics within the home, consumers are demanding higher quality of service. With the evolution of the Internet, the current generation is accustomed to doing business at anytime from anywhere. As power cost increases begin to eat into more and more of consumers living expenses, they will demand options from their utility to manage these costs.

Business Data Challenges and Requirements
Managing data is not a discipline or business process that many utilities have extensive experience with. Nor do they understand the level of planning and execution necessary to ensure that data is accurate, accessible, secure and able to be integrated with other data sources. Smart grid will cause the amount of data to soar as meters and intelligent electronic devices collect critical information in real time.

Business Application Challenges and Requirements
The application of any technology is imperative to receiving a return on investment through increased efficiencies and productivity.  AMI presents varying benefits to both the utility and the consumer with the greatest challenge to the utility to optimize benefits.  With multiple technologies (vendors) in the market, assuring the technology is aligned with the overriding objectives of the AMI project will require significant planning from design, deployment and execution of each independent strategy.

Business Technology Challenges and Requirements