I’m in the midst of assisting several customers with the migration to an automated meter reading system. All of these customers are moving to AMI systems and, in so doing, are changing out all of their meters.
One topic that seems to come up with every meter replacement project, whether it’s done by outside contractors or the utility’s own staff, is how to manage the process so it doesn’t interfere with billing.
I’ve written about this previously as part of a post about several things to consider when transitioning to an automated meter reading system. However, it’s an important enough topic to dedicate an entire issue to it.
When to start
The ideal time to start
changing meters in a route is as soon as that route has been read and any
re-reads have been completed. The goal is to have the entire route (or as many meters
as possible) changed out before it’s time to read the route for the next
If all the meters in a
route haven’t been replaced before reading again, this means having to read parts
of the route two ways – the replaced meters with the new technology and the
existing meters with the old process. From an operational efficiency
perspective, this is clearly not an efficient use of your meter readers’ time.
Move new meters to a new route
Even if you expect to
replace all the meters in a route before reading that route again, I still
recommend moving the meters to a new route as they are replaced. For example,
if you have routes 1 through 20, consider adding 100 to the route number as the
meters are replaced. This way, you can always tell meters in route 120 were
originally in route 20.
By doing so, it’s as simple
as running a report of the original route number to determine which meters still
need to be changed out. And, if you do have to read the route using both old and
new technology, the meters are easily identified for each reading process.
Once all of your meters
have been replaced, you can change the route numbers back to the original route
Is it time for an automated meter reading system?
Are you trying to determine
if an automated meter reading system will be cost effective for your utility?
Or have you made the decision to move forward and need assistance managing the
project? Either way, please give me a call at 919-232-2320 or e-mail me at firstname.lastname@example.org to learn how a business review could help.
© 2019 Gary Sanders
Over the course of the past few weeks, I’ve been involved with several customers moving to automated meter reading systems. One customer is migrating to an AMI system and currently reads in thousands of gallons and applies a multiplier to their readings to bill in gallons. Another is implementing an AMR system and reads and bills in hundreds of gallons.
Both are using a contractor to replace their meters, so I asked if either would be changing to reading and billing in gallons and explained this is the ideal time to make the switch.
Why read and bill in gallons?
I’ve written before about a compelling reason for changing to reading and billing in gallons, but with an AMI system, there is an even better reason. If you plan to offer an online portal so your customers can access their daily usage, as the customer moving to AMI does, do you want them to be able to reconcile their daily usage to their billed usage? If you do, then you will have to read and bill in gallons.
What does it take to make the change?
If, like the AMI customer, you are already billing in gallons, just reading in larger units, all you need to do is drop the multiplier on your readings and start reading meters to the gallon.
On the other hand, if you are like the AMR customer and reading and billing in the larger units, you will have to make some changes to your data. These data fields would need to be changed for each account in the system:
- Previous reading
- Current reading (if readings have been updated)
- Usage (if readings have been updated)
- Any usage history used to calculate the moving average
- Moving average
- Number of dials
What’s it going to be…?
If you’re making the change to an automated meter reading system and you’re not already reading and billing in gallons, you have two options – make the change or fall victim to the TTWWADI syndrome. What’s it going to be…?
Holiday spending money
If you missed it in a previous issue, I’m offering two $50.00 Visa gift cards, one to a new subscriber and one to a current subscriber who refers a new subscriber.If you refer a new subscriber between now and 11:59 pm on Thursday, November 15, you will be entered once for each referral. For referrals from outside your organization, you will be entered twice for each new subscriber. Be sure to remind the people you refer to enter your name on the Referred By line when they complete the subscription form.
Are you moving to automated meter reading?
Are you considering moving to an automated meter reading system and wondering how to get started? To find out, please give me a call at 919-232-2320 or e-mail me at email@example.com to learn how you could benefit from a business review.
© 2018 Gary Sanders
The last Utility Information Pipeline dealt with factors to consider when conducting a Return on Investment (ROI) analysis for implementing an automated meter reading system. In that article, I asked readers who have implemented AMR or AMI systems to share their experiences.
The general manager of a rural water utility, a long-time newsletter subscriber, emailed me and relayed some of the issues his utility has faced in implementing a drive-by automated meter reading system. This issue highlights some of the points he raised, along with issues I’ve heard from other utilities that could be considered potential weaknesses of an automated meter reading system.
Here are some of the potential downsides to implementing an automated meter reading system…
Damage to meters
The utility manager I mentioned above reports that, on average, between .7% and 1.0% of their meters are damaged each month. Damaged meters means incurring repair or replacement costs (which, for some utilities, may be charged to the customer if the customer’s negligence caused the damage). Damaged or malfunctioning meters won’t communicate with the radio receiver, requiring them to be read manually. Of course, this negates any labor savings achieved by automating the process for reading these meters.
A frequent complaint of utilities using radio read meters is these meters can become overgrown by grass, weeds, or nearby bushes and shrubs. This poses a problem when the meter must be visited, either for a routine turn-on or turn-off or for disconnection for non-payment.
Many utilities report receiving defective meters from the meter manufacturer. If this is a manufacturing defect, it can affect many meters received in a single shipment. Defective meters require troubleshooting and, once it has been determined the meter is at fault, replacement. This requires additional time from the utility’s field service personnel, mitigating some of the labor cost savings of not reading manually.
Not “lifting the lid” each month
One of the misgivings I hear most often from utilities about moving to either an AMR or AMI system is each meter is no longer visited each billing period. When reading meters manually or with handhelds, the meter reader must visit every meter (and lift the lid for water meters) each month. This allows the meter reader to visually inspect each meter on the route and note any issues or possible damage to the meter. To mitigate this impact, I know of utilities with a policy of reading a portion of their meters manually each billing period to insure each meter is visited once a year.
Resistance from customers
Some utilities have experienced pushback from customers who consider a meter that measures their usage at frequent intervals to be an invasion of privacy. Others have concerns about the potential health impact of being subjected to additional radio waves. Even though these concerns may be easily dismissed by those who are knowledgeable about radio read systems, they can be very real to your customers. So real that some states require utilities to allow reluctant customers to opt out of having a radio read meter installed at their home.
I’d love to hear your experience
If you’ve upgraded to an automated meter reading system, whether AMR or AMI, I’d love to hear your version of the pros and cons of implementing the system. Please give me a call at 919-232-2320 or email me at firstname.lastname@example.org. I’d like to schedule a time to talk with you about your experience.
Is an AMR or AMI system for you?
Are you trying to determine if moving to an automated meter reading system is the right decision for your utility? If so, please give me a call at 919-232-2320 or e-mail me at email@example.com to learn how a customized ROI analysis or business review could help.
© 2018 Gary Sanders
Recently, a new newsletter subscriber emailed me and asked “We are searching for any information that would support (or not) investing in radio read meters. Our Board has already voiced the opinion they won’t pay for themselves. Can you offer any advice on various areas of savings/cost you have seen after purchasing and installing such a system?”
Having completed a business review and Return on Investment (ROI) analysis for a municipal water system, this reader’s question made me realize this is a great topic for a newsletter.
If you’ve already upgraded to an AMI or AMR system, please don’t stop reading. You can do me a favor as you’ll see below.
What is an ROI analysis?
An ROI analysis compares the expenses of implementing something new, in this case an automated meter reading system, to the increased revenue and cost savings achieved and derives a pay-back period for the system. Both one-time and recurring expenses and revenues are included in the analysis.
Costs of implementing an AMR/AMI system
The costs associated with implementing an automated meter reading system include:
Purchasing new radio read meters
The single largest cost associated with implementing a radio read metering system is, of course, the new radio read meters. Be sure to take a census of the meter sizes and types currently installed and ensure that you are using the proper cost associated with each size or type of meter.
Purchasing new meter boxes or meter box lids, if required
When dealing with water meters, existing meter boxes may be too small or, in some cases, metal meter boxes or lids may interfere with the radio signal.
Labor cost to install the new meters
The second-largest cost incurred with implementing radio read meters is the installation of the meters. Will you use an outside contractor or will your field service staff install them?
Purchasing the meter reading software
Don’t forget to include the cost of the new meter reading software. In addition, be sure to include the ongoing annual maintenance for the software as a recurring cost in your ROI analysis.
Upgrading your billing software upgrade, if necessary
Finally, if your billing software isn’t compatible with radio reading, or if you need to purchase an additional module, be sure to include that cost. As with the meter reading software, be sure to include any increase in annual maintenance as a recurring cost.
Increased revenues and cost savings
Increased revenues and cost savings associated with implementing an automated meter reading system include:
Sale of scrap meters
The only one-time revenue source from implementing a radio read system is the sale of the old meters (and meter boxes, if applicable) as scrap.
Revenue gain from new meters
The area most utilities rely on to cost-justify a radio read meter system is the increased revenue from installing new meters. Especially with water meters, meters are known to register less usage as they get older. Remember, meters are like people – they slow down with age.
The revenue gain from new meters is also the area where your ROI analysis can be the most deceiving, if you assume revenue increases that don’t materialize. Two areas where your analysis can go wrong are:
- unreasonable assumptions about how much your existing meters have slowed down
- rate elasticity – as the price increases, usage decreases
One way to try to ensure your assumptions about the inefficiency of your current meters is to conduct a pilot meter replacement policy. This would involve replacing a sampling of meters of different ages and sizes and observing the increase in usage over several billing periods.
If you’ve upgraded to an automated meter reading system and tracked the increased usage from new meters, please give me a call at 919-232-2320 or email me at firstname.lastname@example.org. I’d like to schedule a time to talk with you about your experience.
Staff time savings from no longer reading meters
The biggest cost savings associated with implementing a radio read meter system is the reduced time involved in reading meters each month. If you are moving to an AMI system, you will save 100% of the current time, vehicle use, and gas. If you are moving to an AMR system, you will still incur some time and expense for meter readers to drive the routes, but it will be much less than walking the same routes.
Reducing time for re-reads
In theory, a radio read system will provide accurate readings, without the element of human error which is present when using handhelds or reading on paper. In reality, there will always be some meters that aren’t transmitting properly, which will require follow-up from your field service staff. Hopefully, the time to check these non-transmitting meters should be less than what is currently being spent re-reading meters with questionable readings.
Savings from not offering of leak adjustments
If you’re implementing an AMI system and plan to do proactive leak detection, I recommend adopting a policy of not offering leak adjustments. In this case, you will save the lost revenue associated with leak adjustments.
Completing the ROI analysis
Once you’ve arrived at all of your one-time and recurring costs, increased revenues and cost savings, you are ready to complete the ROI analysis. This involves calculating the net up-front cost (one-time expense less one-time revenues) and dividing it by the annual increased revenue and cost savings. The final number will be the payback period in years.
Are you contemplating implementing an AMI system?
Are you wrestling with trying to decide if you can justify moving to an automated meter reading system? If so, please give me a call at 919-232-2320 or e-mail me at email@example.com to learn how a customized ROI analysis or business review could help.
© 2018 Gary Sanders
I know of utilities with AMI (Automated Metering Infrastructure) systems who aren’t doing proactive leak detection. My question is why wouldn’t they?
Certainly, an AMI system is the most convenient way to read meters. Unlike using handhelds, or even an AMR system, AMI systems require no labor to collect meter readings for billing. But to view an AMI system as simply a labor-saving meter reading tool is a huge mistake.
Review of AMI technology
AMI systems are preprogrammed to read each meter at set intervals – sometimes only once each day, other times as frequently as several times per hour. These frequent meter readings calculate incremental usages, which can be compared to historic usage patterns for the account. When a large increase in usage is detected and does not return to normal, this generally indicates a leak or other situation requiring the customer’s attention, such as a hung toilet.
What is proactive leak detection?
Using proactive leak detection, a utility with an AMI system monitors the system outputs each day and immediately contacts the customer to alert them to the prolonged excessive usage. This places the responsibility for finding and fixing a leak on the customer. Logically, it only follows, if the utility has immediately notified the customer of a potential leak, the utility now shoulders no responsibility for providing leak adjustments of any sort.
Advantages of proactive leak detection
When potential leaks are being monitored on a daily basis, and the customer rectifies the problem promptly, water is conserved. This is especially important in times of drought or if your utility purchases water for resale from another utility.
Another advantage of proactive leak detection is not having to deal with leak adjustments. For many utilities, leak adjustments can be a time consuming process, involving contacting the customer to provide documentation the leak has been fixed, researching normal usage patterns, performing the calculation to determine the amount of the leak adjustment, and, finally, applying the leak adjustment to the customer’s account. Imagine never having to do another leak adjustment!
Is your leak adjustment policy up-to-date?
Have you implemented an AMI system but still offer leak adjustments? Or has it been a while since you’ve reviewed your leak adjustment policy? If your utility falls into either of these cases, please give me a call at 919-232-2320 or e-mail me at firstname.lastname@example.org to learn how a business review could help.
© 2018 Gary Sanders
I’m originally from upstate New York, where water meters are located in basements or cellars to keep them from freezing. The small town where I grew up operated a water system and, with limited staff, frequently estimated meter readings. My mother was aware of this and, after several billing periods without her meter being read, was convinced they were overestimating her usage. So she called and made arrangements for the meter reader to come and read her meter. Much to her chagrin, they had been underestimating her reading all those months and her next water bill was much higher than the bills she thought were already excessive!
An inquiry from a colleague
Last year, I had a professional colleague contact me with the following questions:
“Do you by chance know if there is an industry standard for estimated meter reads? I know you would want this number to be as low as possible but is there an industry target that would indicate a utility’s meter reading capabilities?”
My response was:
“I’m not aware of any industry standard for estimated meter readings. Off the top of my head, I would think anything greater than about 2% would be excessive unless there were extenuating circumstances (such as snow in an area like ours in North Carolina where utilities aren’t prepared to read in that kind of weather).”
This is where you get to help…
Previous Utility Information Pipelines have addressed meter reading best practices and alternating actual readings and estimates as a way of reducing costs, but none have addressed routine estimates.
In order to better answer my colleague’s question, I’ve put together a short survey asking how your utility handles estimated meter readings. Please take a few minutes to complete the survey by clicking here.
The results of the survey will be published in the next Utility Information Pipeline.
Do you need to review your meter reading practices?
If your meter reading could be improved upon, please give me a call at 919-232-2320, or email me at email@example.com for more information about how a business review could help.
© 2017 Gary Sanders