A new white paper from the Institute for Electric Efficiency says the benefits of smart meters and related energy management technologies for both utilities and their customers will outweigh the costs.
“Although specific results will vary by utility, our study found that even with conservative assumptions regarding consumer engagement in technology, programs, and rate plans, utilities and their customers can expect positive net benefits from their AMI investment over the next 20 years,” said Lisa Wood, IEE executive director.
The white paper, The Costs and Benefits of Smart Meters for Residential Customers, includes three categories of benefits from smart meters: operational, customer and societal. To arrive at its cost assumptions, IEE used AMI business cases and equipment manufacturers’ prices as well as projections and other sources.
In assuming a service area of one million customers, IEE determined that the total cost of utility investments in AMI and related home energy management technologies will range from $198 million to $272 million.
On the benefit side, the study found that AMI investment will produce operational savings in the form of avoided metering costs, automated outage detection and remote connections. Customer-driven savings will come from energy pricing programs, in-home energy management technologies and energy information. Net benefits from investments ranged from $21 million and $64 million for the four types of utilities studied.
