SMART METERS RECOMMENDED FOR CITY UTILITIES
For Release: Thursday, June 12, 2014
In a report to the June 17 meeting of Planning and Operations Committee (P&O), City Administration is recommending the development and implementation of an Advanced Metering Infrastructure (AMI) system for Saskatoon Light & Power (SL&P) and Saskatoon Water. The recommendation comes after a study, which began last fall, was conducted to determine the feasibility and cost of an AMI system in Saskatoon.
An AMI system uses “smart” electricity and water meters that measure and record actual power and water usage by time intervals throughout the day. The information is then transmitted wirelessly over a secure network to a central database, which allows for remote meter reading.
"Our investigation has confirmed an AMI system offers many benefits for our customers and the City,” says Trevor Bell, Director of Saskatoon Light & Power. “Customers would receive monthly bills based on the actual amount of electricity and water they use. This would eliminate reliance on estimated usage between meter readings, and help residents manage their electricity and water use and detect unusual consumption patterns which could impact their bill.”
An AMI system means the City will benefit from more precise metering and reduced revenue losses caused by meter failure. Greenhouse gas emissions and labour costs tied to manual meter reading would also be reduced. It is estimated that 35 tonnes of CO2e tied to vehicle use would be reduced each year, and reductions from decreased water use are estimated at 3,300 tonnes CO2e - the equivalent of removing over 685 vehicles from Saskatoon roads each year.
A Business Case has been prepared to measure the project costs and savings over a 20-year period. Total capital costs are estimated at $24.31 million and system operation costs are estimated at $22.1 million. Over a 20-year period, the total projected savings are estimated to be $76.1 million. The project is expected to pay for itself within 11.43 years with an internal rate of return of 11 per cent.
If the recommendations are approved, customers who have already received their new smart meters will have their meters read electronically and will begin receiving monthly bills based on actual, not estimate, usage by the end of 2015. As the deployment of smart meters continues, the balance of customers will be converted to the AMI system.
SaskPower and SaskEnergy have already begun the process of replacing over 500,000 electricity meters and the upgrading of 370,000 natural gas meters in Saskatchewan with new metering technology as part of a Joint AMI program.