Metering and Communications Committee "C"

(These draft position statements are preliminary and are meant for discussion purposes only; they do not necessarily represent the views of a metering firm. The statements are meant to build on the position papers already developed on "Who owns the meter?" and "Who controls the meter?")

California utilities are currently responsible for specifying revenue meters, installing meters, and reading meters. Under direct access it is assumed that UDC's will continue to be involved in some manner with revenue metering and customer energy information.

A direct access scenario could include:

* The UDC is responsible for connecting and disconnecting customers from the distribution system.

* Within certain parameters to be defined, any customer or firm may own revenue metering equipment installed at a customer's premise.

* Customer consumption information will be supplied to a number of entities, including the Power Supplier/Retailer, customer, and the UDC.

* Certain metering infrastructure costs, incurred by the UDC, cannot be clearly assigned to individual customers and may need to be allocated over customer classes by the UDC, possibly through T&D charges. (see "Who Owns the Meter")

* UDC's will continue to provide customer service, but at a to-be-determined level.

The resolution of certain revenue metering issues could have an impact on installation options.

These issues include:

* Who is responsible for obtaining and supplying customer usage information to the power supplier, UDC, and Scheduling Coordinator?

* Meter ownership - will meters be "owned" by the UDC, the customer, third parties or the power supplier?

* Who is responsible for ensuring that all customer loads are metered correctly?

* There is potential for a utility to reduce system wide expenses, improve operating efficiency, and improve customer services through advanced two-way communication with customers through AMR solutions. How will revenue meters integrate with these strategies?

* Will customers or power suppliers be required to: purchase the existing utility meter at the customer's premise or supply replacement meters?

The positions that follow assume the above issues are satisfactorily resolved.

Issue: Who installs the meter

Position:

Subject to certain limitations, such as the qualifications of a firm to install meters, the customer will ultimately decide who installs revenue meters. Those firms whose facilities are used to transmit electricity or who bill for energy transmitted and energy consumed also have a stake in insuring that meters are installed correctly, safely and that meter reads are accurate. In addition, these stake holders will need to have the flexibility to install their information systems to obtain energy information that is directly or not directly used for revenue purposes.

Revenue meter installations include Potential Transformers (PT's), Current Transformers (CT's), metering cabinets, test switching systems and ancillary equipment. Installation of revenue meters can be done by prequalified firms including: meter installation firms, electrical contractors, power suppliers (retailers), third party metering firms, as well the UDC. Firms will be prequalified based on their technical skills, training, and ability to safely and reliably install metering equipment according to set standards.

This approach is not meant to preclude the UDC from installing AMR solutions throughout its system. AMR strategies would be used for system-wide customer service benefits, for obtaining energy information needed by the UDC, and to provide real time information to the system coordinator or other entities that require information from the UDC.

Pro:

* Competition in meter installations may result in lower costs to the customer.

* Meter installation costs can be shifted to the energy supplier or to the individual customer.

* Within specified standards and connection requirements of the UDC, the customer and the energy supplier can employ customized installation procedures and meter applications tailored to the customer's needs.

* The local utility may have under-utilized meter installation assets, whose costs may need to recovered. Some of these costs could be recovered by non-utility meter installation firms purchasing surplus assets from the utility.

Con:

* Accuracy, safety standards and certification for direct access revenue meters and qualifications for meter installers will need to be developed and regulated. Development of these systems may result in additional costs.

* There is an existing utility investment in meter inventories, equipment for meter installation, and facilities for testing and repair of meters. Recovery of investment costs for these assets will need to be resolved.

Related Issue:

If in the future, all customers are required to own their meter, what happens to the existing utility meter installed at the customer's premise?

Position:

If the meter is suitable for supplying revenue information for a DA or non-DA customer, then that meter can be treated as the "installed" meter and purchased by the customer.

Pro:

* Reduced meter installation costs for the customer.

* If the customer elects to purchase the existing utility installed meter, then there could be fewer quality control and energy security problems for the UDC. Also, some costs of meter related facilities could be recovered.

* Since part of the cost of the meter may already be written-off by the utility, the used meter might cost less than a comparable new meter.

Con:

* Standards for resolving issues that arise from defective meters will need to be developed and regulated.

* Utilities have a significant population of meters in inventory, these cost will need to be recovered if the customer do not purchase