Automated metering for WM Utility in the near future?

Automated metering for WM Utility in the near future?

City officials hear presentation pros, cons on possible switch for water, electric customers

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The study complete, West Memphis Utilities invited its commissioners and City Council to a workshop about prospects for Automated Metering infrastructure (AMI) in the city. The results presented automated electric meters as benefits both the utility company and provides more payment options for residential customers. City Council got the preview because policies concerning deposits and payments would be necessary should AMI get the green light.

“This really helps customers on a cash budget,” said Greg Johnson President of Katama Technologies Inc. to the group.

His company presented a feasibility evaluation to the group. The results were mixed showing favorable outcomes for automated electric meters but for now recommended no changes on water meters.

West Memphis enjoys some of the lowest water rates in the country according to the consultants. For now this negates any pay back on the cost of converting to automated digital water meters.

“Quite frankly, your water revenues are pretty low and do not justify by itself doing anything new on the water meter side,” said KTI Consultant Pat Corrigan.

Assistant Utility Manager Todd Pedersen said eventually billing changes would be more cost effective than either sending meter readers to every customer or putting in new meters. Existing customers would see new electric meters but not need to adjust their preferred bill paying option.

Pedersen pulled up short of proposing a change to commissioners and councilors and just introduced the concept during the meeting.

“We’d have to consider levelized water billing and read water meters on every house on four or six months cycle,” said Pedersen. “Our water rates are so low they don’t even justify us going to the meters and reading them.”

Councilwoman Helen Harris and Utility Commissioner Dana Parker wanted to know how customers would be impacted by a change to automated electric meters. It turns out AMI would make substantial savings and prevent rate increases for operation costs.

“Right now you spend about $975,000 annually to support electricity and me- tering in the city,” said Corrigan. “Cost to the utilities will go down in the future by $800,000 per year to $160,000.”

Projected cost to convert meters to AMI ranged from $3.1 million dollars to $3.7 million dollars.

The other customer benefits come through lower utility bills because customers would be more aware of their consumption. Just like people with pre-paid phones knowing how many minutes are left and budgeting phone time until more time can be purchased so it would go with customers on pre-paid utilities if city leaders green light infrastructure changes. “These are like mini-cash registers,” said Johnson.

“People with pre-pay drop consumption 10-15 percent basically because they are watching it themselves.

They’ll get more conservative toward the end of the week as the reservoir of money goes away. They spend less money on electricity.”

“Smart phones are showing up everywhere, people like to use them,” said Corrigan. “People within the community expect to use them. These expectations are going to be put upon you. This gives opportunity for people to access their energy consumption on their smart phone.”

To avoid running out of the electric juice customers can set up proactive messaging. When balances dip to a certain level that consumers chooses a reminder text is sent to the phone.

Finally, the new infrastructure points utility workers to exact spots causing power outages and shortens down time.

Consultants listed the benefits for the city utility to the leadership group. The play back for installing the new metering infrastructure is five years. It improves customer contact outcomes. The new meters allow a pre-pay option utility for those who cannot afford initial deposits for service.

But the biggest boon for the utilities is to take a bite out of the charge off expenses from customers choosing to walk away from unpaid balances. The utility has charged off huge uncollected debt in recent years.

“It’s more than half-a-million a year,” said Johnson.

“People gamed the system.

They move around, use different names then leave with months worth of bills.

It’s not just the electricity, its the garbage service, too.”

Pedersen pointed councilors and commissioners with questions to look to other communities a little further along in the AMI experience. Conway and Hope, and North Little Rock have all started down road to AMI. Jonesboro has begun an AMI electric pilot project.

“Hope is the furthest along and will be your best comparison,” said Pedersen.

By John Rech