Task Force on Metering and Communications
Direct Access Working Group - Sub-Team C

CellNet Data Systems
July 18, 1996

POTENTIAL ECONOMIC BENEFITS OF NETWORK METER READING

CellNet has identified and defined a number of categories of potential
cost savings and benefits.   This analysis is based on input from AMR
studies and analyses performed by utilities around the country over
the last eighteen months. This list of benefits does not imply that
savings in all categories will be identified nor does it make
predictions about the outcome of a cost-benefit analysis.

DESCRIPTION OF BENEFITS
The following is a listing of activities and cost/savings categories
which may be impacted by a successful deployment of Network Meter
Reading (NMR).

METER READING
Monthly Billing Reads
Network reading automates the physical process of meter reading to
provide data for monthly billing.

Appointment Reads
Network reading automates the unscheduled meter reads performed at the
request of the customer or customer service department.

Connect/Disconnect Orders
Network reading a meter when adding or removing meter service.

Increased Safety
Automating various reading functions reduces medical and insurance
costs due to meter readers and other field personnel no longer being
exposed to high crime areas, dogs, fences, and other sources of
potential injury.
   

CUSTOMER SERVICE
                                          

Reduced Bill Complaints
NMR results in higher customer confidence, fewer missed reads, and
fewer inaccurate reads leading to a reduction in phone calls to the
customer service call center.

Reduced Operator Call Times
NMR systems with "on-demand meter reading"  capability enable
operators to answer meter related questions without having to dispatch
field personnel.

Fewer Meter Investigations
Meter investigations resulting from missed reads, inaccurate reads,
unusual usage, or other reasons can be avoided with network reading.

ACCOUNTING REALTED BENEFITS
                                  

Lower Accounting Costs
Accounting expenses associated with special processing (e.g. meter
rereads, estimated bills) are avoided.

Improved Cash Flow
By shortening the meter read to collection time, accounts receivable
associated interest expenses are reduced.
a) Cash flow improvements include shortening the meter read to bill
issuance time through automation of data delivery.
b) Indirect improvements of the bill issuance to collection time are
possible by offering convenience services such as summary billing and
selectable bill date.  Flexible billing options may translate into
prompter payment performance since customers can choose bill receipt
times that coincide with paycheck receipt and bill payment cycles.

Lower Uncollectible Write-offs
Continuous monitoring of customer energy usage enables detection of
usage on inactive accounts and improved ability to monitor customers
with recurring payment problems.
   

DISTRIBUTION OPERATIONS
                  

TOU Metering
Some NMR systems provide the flexibility to provide different levels
of metering service to any customer without installation of expensive
meters. This includes Time-of-Use, Demand, and Real Time Pricing.
Because these networks deliver this level of service through the
network itself, the cost of purchasing expensive, stand-alone
time-of-use meters is avoided.

Fewer Service Calls
With on-line checks, the utility can determine remotely whether a
power problem is on the line or load side of the meter, thus avoiding
the unnecessary dispatch of field personnel.

Reduced Energy Theft
Some NMR systems provide immediate alarms of meter tampering.

Eliminate Meter Lock Ring Purchases
Automated alarming obviates the need for lock rings used to prevent
meter tampering.

Shorter Outage Times
By delivering positive real-time outage alarms and restoration
notification for each meter, the distribution entity can rapidly
identify the location and extent of the outage and better manage and
monitor the power restoration process.

Reduced Meter Testing Expenses
During project installation, all meters  can be fully tested thereby
fulfilling meter testing obligation to the CPUC.

Lower Line Losses
Automation identifies sources and enables solutions to reduce line
losses.

Improved Meter Accuracy
During the network installation process, all electric meters  can be
recalibrated, thus improving accuracy in measuring energy consumption.



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