1

Rural Utilities Service

 Serving Rural America Since 1935

RUS Engineering Seminar

 March 2000

 Charles M. Philpott

 Chief, Northern Engineering Branch

 Northern Regional Division

“Review Of AMR Systems”
2

 2000 AMRA Report Of

 AMR Installations 

 AMR Association Releases Report Of 

Record Plans For AMR Installations

u Electric/GAS/Water Utilities Report Of

 15 M Units For 1999-2000, Worldwide

u Electric Utilities Report Majority Of

 Units Installed Or Planned

 Pressures Influencing

Decisions To Install AMR

u State Public Utility Commissions

u Electric Utility Deregulation

u Utility’s Desire To Improve Services

 To Its Consumers
3

RUS Finances AMR -

May 28, 1999 Letter To Borrowers

SUBJECT: Automated Meter Reading (AMR) Systems

 TO: All RUS Electric Borrowers

 FROM: Blaine D. Stockton, Jr.

 Assistant Administrator

 Electric Program

“The Rural Utilities Service (RUS) is pleased to announce that it will

now finance the costs associated with the

purchase and installation of AMR systems. In

developing a request for financing, either as part of a loan application or

the use of general funds subject to future reimbursement with RUS

financing, you should work with the RUS General Field Representative

(GFR) in providing the following support documentation:..................”

RUS Finances AMR -

May 28, 1999 Letter To Borrowers

SUBJECT: Automated Meter Reading (AMR) Systems

 TO: All RUS Electric Borrowers

 FROM: Blaine D. Stockton, Jr.

 Assistant Administrator

 Electric Program

“The Rural Utilities Service (RUS) is pleased to announce that it will now

finance the costs associated with the purchase and installation of AMR

systems. In developing a request for financing, either as part of a loan

application or the use of general funds subject to future reimbursement

with RUS financing, you should work with the RUS General Field

Representative (GFR) in providing the following

support documentation:........”
4

 Support Documentation For

RUS Financing Of AMR Projects

u Cost/Benefit Analysis

u Technical Description Of AMR System,

 Including Communication Medium

u Breakdown Of Cost Estimates Of

 Major AMR Components

 AMR Equipment In RUS’s

 “List of Materials”

u Some AMR Capable Watt-hour Meters

 Are Presently Included Under “ga”

u RUS Is Proposing A Separate

 Listing For AMR Capable Watt-hour

 Meters

u RUS Is Sending Out A “Requirements

 Sheet” To Meter Manufacturers
5

 AMR Projects

 Submitted To RUS

u Since May ‘99, Approx. 20 AMR

 Projects Have Been Sent To RUS

u Majority Of AMR Projects Are Of

 One Type/One Way Communication

 Summary Of AMR Projects

 Submitted to RUS

Review Of 10 AMR Projects

u Smallest (2,100 units), 5 Substations

 5 -Year Project Cost Est. - $249,000

u Largest (12,805 units), 12 Substations

 5 -Year Project Cost Est. - $1,852,000
6

Review of 10 AMR projects

$-

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000

$1,600,000

$1,800,000

$2,000,000

0 2,000 4,000 6,000 8,000 10,000 12,000 14,000

Number of AMR Units

Total 5-Yr. AMR Costs Total 5-Yr. AMR Savings

 Cost Evaluation Of

 AMR Systems Is Critical

u Investment In AMR Is Significant

u Should Cost Out All Items Affected

 By The Installation Of AMR

u Develop An Annual Budget Of Costs
7

 Reported Intangible Benefits

 Of AMR Systems

u Improves Member Relations - No longer

 Requires Member’s Dogs To Be Tied Up

u Eliminates Ruts In Member’s Yard

 Made By Meter Reader

u Reduces High Bill Complaints Due To

 Incorrect Meter Readings

 Reported Intangible Benefits

 Of AMR Systems (continued)

u Reduces Member Complaints When

 Meter Was Not Read (Estimate Bill)

u Relieves Member Of Reading Own

 Meter

u Relieves Member Of Phoning In Power

 Outages
8

 Conclusions

u AMR Offers Opportunities To The Electric

 Utility And Its Consumers, But At A Cost

u Installation Of AMR Systems Will

 Accelerate, As Deregulation Is Implemented

u The Trend In AMR Systems Will Be Toward

 2-Way Communications, As Costs Come

 Down And Technology Advances

Is AMR For Your Electric System ?