Utilities seek to gain customer allegiance and become low cost suppliers in preparation for deregulation. The appropriate application of metering and communication technologies can enable them to reduce operating costs while at the same time offer an array of new products and service options which can help differentiate their products and retain customers. At the same time a utility can lower its capital expenditures through better planning information and subsequent deferment of capital investment. Use of time critical data will allow utilities to sell their energy product at higher margins.

Automated Meter Infrastructure
Automate Meter Infrastructure (AMI) is a specialized subset of Automatic Meter Reading (AMR) that involves transfer of meter data over a communication network designed for efficient handling of small discrete packets of meter information. Time critical data presentation is the major differentiator between AMI and other forms of AMR such as: Offsite Meter Reading (OMR) and drive by/Mobile AMR.

In order to have a successful implementation of an AMI system, six requirements must be met:

• The system must meet or exceed all technical requirements and expectations
• The system must meet the strategic goals of the utility
• The system must be flexible to support unforeseen business and operating requirements
• The system must be able to store enough historical read data at the meter so that a temporary loss of communications will not result in a loss of data
• Allow for remote configuration of the meter
• Finally, the installation and operation of the system must be economical and provide both quantifiable and unquantifiable benefits to the customer.

Utilities must focus on AMI economics. The approach one should take, identifies true cost and obtainable benefits. In cases where benefits are hard to quantify, a conservative estimate was used in order to not overstate the value. Benefits that are not immediately realized by the utility, have been characterized as unquantified benefits with their potential value being solely that of the utility.

The following is a detailed description and justification of both quantifiable and unquantifiable benefits an AMI system brings to the utility The benefits are divided into three main groups:

Cost Reductions/Savings. Areas where an AMI system directly reduces or eliminates operating costs.

Smart Grid. AMI serves as the foundation of the Smart Utility Grid.

System Optimization. AMI  data can be used to identify distribution network problems and for remaining life analysis.

New Revenues. Added utility income not generally realized without an AMR system or resulting from the implementation of an AMR system

Risk Reduction. An AMI System provides significant flexibility when it comes to rate design, demand response capabilities and options for dealing with future energy crisis

Unquantified Benefits. Customer or operational benefits that are substantial and probable. They also improve service levels, but are difficult to develop or estimate a solid numeric benefit.