Why do we need smart meters??

I was following an interesting discussion on LinkedIn, that raises the question of whether we really need smart meters.  I've overseen operation of a meter reliability shop during rollout of Advanced Metering Infrastructure and its associated "smart meters" and network devices.  I was part of a team aggressively investigating accuracy, reliability, safety, and security of this technology, knowing that those devices would be in our own homes as well.  This utility had already been using demand-side management and RF-based automated meter reading (AMR), long before "Obama wants to spy on me" hysteria surfaced on the "interwebs."

Meter accuracy, as measured with industry standard equipment and procedures, has shown time and time again that modern digital meters are more accurate.  Meter data analytics allows us to monitor for strange deviations like sudden jumps in billing, which is not possible with classical, non-communicating meters.  The overwhelming percentage of times there is a concern about billing, it works against the utility, not the consumer: for example, a meter that intermittently does not accumulate or even a period of negative usage (which would amount to a discount).  Either way, with data-driven processes, even billing estimation, when  needed, can be more accurate and efficient.

The addition of communications does not affect accuracy: this has been demonstrated by independent experts investigations, public service commissions and other parties. It does, however, open the door to a number of applications that can give users more detailed information about their usage (customer web portals), to opt for cost-saving billing that helps address peak-time generation shortages that can compromise system stability for millions, can lead to faster service restoration (outage management), and can reduce power theft (or a nasty neighbor using your meter while you are on vacation without being noticed). Theft leads to higher rates for the remaining ratepayers.  Now, do the AMI meters need to be within the premise where they can be tempered with by the resident or others?  Not necessarily. All I need as a consumer is a way to readily access a display, which can be at the premise, or even virtual (online, accessible via their computer, tablet, or phone) - I don't need the actual meter in my house.  If that display goes bad, only the display would need to be replaced, assuming the customer even looks at it. 

AMI also makes connection and dis-connection more efficient, and one can obtain health flags, temperature and other information that can help monitor the metering system's performance. Field metering personnel is still needed, but in fewer numbers: the solution here is not holding on to the past, but re-training. It is my understanding that at FPL, for example, most of the displaced meter readers have been re-assigned to other positions.  This is not isolated to utilities.  Modernization is happening in most industries and there are a few million unfilled jobs in this country because of lack of trained personnel: this is an opportunity for employers to work with local, state, and federal government and education organizations (state colleges, vo-tech centers), and financiers.

AMI is one part of a longer term, integrated vision put forth by engineers worldwide to modernize our aging infrastructure to meet the demands of 21st century power users and to provide new services. For example, some utilities would be able to provide energy efficiency data (combining metering data with GIS, temperature, and other data), demand-side management options, integrate more distributed and renewable energy storage and generation, electric vehicle charging management, increase in distributed generation, real-time power quality monitoring, smart appliances and much more over a multi-layered secure communications infrastructure. This network infrastructure can tie-in to distribution (OG/UG) automation, substation automation, wireless municipal network (environmental, safety, mobile workforce, traffic, lighting, e-gov, e-edu, e-lit inclusion and many other applications) resulting in more efficient operation of the grid and of communities as a whole. Some utilities have found additional efficiencies by metering gas and water with AMI as well.

Security is a legitimate concern as it is in other areas like our government agencies, banks, hospitals.  This is a constant of IT.  Are there hackers breaking into intelligence agencies, banks, media, online retailers, Fortune 500 companies and utilities? Certainly. It's an awful lot of work for billing information, though, compared to other types of more lucrative hacking.  If a criminal really wants to figure out when someone's not home, they have had easier ways to do so, than hack into their meter.  Does that mean we will halt progress? Will we give up our connectivity via smart phones, tablets, computers?

What is the price of modernization? What is the price of no modernization? Frequent blackouts? Forbiddingly higher rates? More kids with asthma and other pollution-related health issues? Geopolitical effects of climate change and over-dependence on fossil fuels?

Are we going to give up our smart grid vision? Unlikely.

Heck, perhaps we will have a disruptive technology in energy, a breakthrough in distributed energy that makes the grid redundant: micro-nuclear plants everywhere, a "free energy" discovery, or we build out natural/biogas to the home and use it cleanly and efficiently with fuel cells... leaving the grid as a backup.

In the meanwhile, utilities will do what they have to do to keep up with their responsibility of providing near-perfect availability of cost-effective, high-quality, increasingly-green power for our increasingly power-hungry life laden with sensitive electronics.

Nelson Abreu, BSEE