Con Edison, also known as ConEd, one of the largest U.S. investor owned utilities, has provided details of its planned rollout of smart meters over the next several years. Contained in ConEd’s recent rate filing with the New York Public Service Commission, the plan reflects a comprehensive strategy to make smart metering the backbone of future customer engagement, as well as improve outage restoration, enhance operational performance, and ease the integration of distributed energy resources such as rooftop solar.
The utility envisions an advanced metering infrastructure (AMI) deployment over 8 years at a cost of about $1.5 billion—about $8 million this year, $69 million in 2016, $174 million in 2017, $317 million in 2018, and $306 million in 2019. Projected spending details beyond that have not been made available. The approximate number of meters involved is 3.4 million.
Aligned With the Vision
Con Edison’s AMI deployment plan also aligns with the state of New York’s wide-ranging Reforming the Energy Vision (REV) initiative, which was announced last year by Governor Andrew Cuomo. The REV initiative is aimed at transforming the state’s electric grid into a more customer-oriented industry, featuring “market-based, sustainable products and services,” with an emphasis on enabling clean distributed power generation. Smart metering, with its two-way communications functionality, is a key technology for facilitating this type of flexible, modern grid.
Even though smart meters have been around for a number of years, no deployment lacks naysayers, nor controversy. Con Edison is likely to face opposition from consumers who have concerns over health risks, privacy, and the accuracy of the data smart meters provide—concerns the industry says are unfounded.
Take Your Time
For smart meter manufacturers and infrastructure players like Landis+Gyr, Itron, General Electric, Elster, and Sensus among others, the ConEd deployment represents a significant potential opportunity. The utility is expected to announce the bidding process in the coming weeks. Given the large scale of this project, it is possible the utility will choose several vendors or a primary contractor and various partners.
At 8 years, the anticipated timeline for ConEd’s smart meter deployment appears prolonged. Other large U.S. utilities—such as Pacific Gas & Electric, San Diego Gas & Electric, Oncor, and CenterPoint Energy—have rolled out smart meters in 4–6 years. But ConEd may be playing it safe, giving itself enough of a time cushion to overcome the inevitable hurdles and detours.
ConEd’s smart meter plan hinges on regulatory approval, but regulators are inclined to be in favor, especially since the deployment fits in with the state’s REV initiative. And despite the considerable costs involved, smart meters provide benefits to both customers and the utility, and tend to outweigh any drawbacks.