Advanced metering infrastructure (AMI) has traditionally been associated with accurate billing and cost-effective meter reading. Billing customers accurately and cost effectively will remain the primary use case for AMI. However, AMI's potential is far greater than this foundational use case.
The AMI-enabled smart meter is a distribution device, and utilities could benefit from making better use of the data they produce. By harnessing the wealth of data provided by smart meters, utilities can transform their grid operations, inform grid investment and enhance customer service. In this way, the meter can become more than just a metering or billing device. Instead, it can become a powerful device that produces data representing customers’ relationships with the service utilities provide. In addition, AMI-connected meters could function as distribution sensors, with every meter also serving as a power quality meter.
The Evolution of Smart Meters
Just as smartphones have evolved from basic communication devices to indispensable tools in our daily lives, smart meters must also evolve. The next generation of meters will need to do more than communicate readings; they will serve as critical sensors that live at the edge of the distribution network, collecting granular data that can be leveraged for a variety of data science applications.
Alabama Power’s AMI Adoption
For a company Alabama Power’s size with the number of meters it has — roughly 1.5 million electric meters for Alabama Power and 4.4 million including all of Southern Co.’s operating companies — the utility was a relatively early adopter of smart metering technology and AMI. At the time, around 2010, the primary advantage was seen in efficiency gains, for example not having to send meter readers out into the field. The utility quickly realized there was a lot more that could be accomplished with these smart devices capable of two-way communication.
An important lesson came April 27, 2011 in the form of a violent outbreak of tornadoes. In a so-called “super outbreak,” Alabama saw more than 62 tornadoes. The damage was catastrophic, but as the outage restoration efforts progressed, Alabama Power grid operators found that the two-way communication capacity of the smart meter could help with tasks such as verifying that work crews had arrived at a site, verifying power restoration and even confirming the paths taken by the tornadoes themselves. Subsequent severe weather events such as ice storms and lightning strikes confirmed that AMI data could be more valuable in a pinch than data provided by a SCADA system.
Data Volume and Resolution
The usefulness of the smart meter is in the sheer amount of data they are capable of transmitting. The amount of data generated by AMI is immense. For example, at Southern Co., we have transitioned from millions of readings annually in the pre-AMI era to billions of readings annually post-AMI. This data, captured at varying intervals (from 15-minute to 1-hour resolutions), provides a view of usage patterns and distribution system performance.
Applications of AMI Data
Load Disaggregation — By analyzing high-resolution data, utilities can plan for how customers are using electricity. This enables more accurate load forecasting and demand response strategies.
Rate Design and Customer Insights — AMI data accelerates the development of innovative rate designs by providing aggregation of customer behavior and analyzing different rate options. Additionally, AMI data can aid before and after enrollment analysis to ensure the new rate is having the desired customer benefit. Understanding how customers use energy enables utilities to design rates, including those that promote off-peak usage, helping to shift load and reduce system stress.
Demand Response (DR) — DR programs are significantly enhanced by the capabilities of AMI meters. These advanced meters provide real-time data on energy consumption, allowing utilities to quickly identify periods of high demand and implement strategies to reduce load.
Into the Technology Future
Grid Edge Computing — Much of the current value from AMI data comes from centralized analysis of the data. In the future, AMI meters will need to run data science models at the edge, using inference to deliver insights instead of just raw data.
Fault Detection, Classification, & Location — FLISR and similar systems usually use distribution lines to find and classify faults, however a deployment of AMI meters could perform this task even better. Using data to quickly identify and locate faults within the distribution network can improve reliability and response times. This type of FLISR analysis is currently performed using distribution line devices’ data with a modern ADMS system. However, due to the magnitude of endpoints and where they’re positioned in the distribution network, AMI data can detect the fault type, and locate faults with better precision.
Service Quality Analysis — Predictive analytics using AMI data can anticipate service quality issues before they become an issue for the customer, enabling the utility to provide proactive maintenance and reducing downtime.
Distributed Energy Resource (DER) Management — Managing and integrating DERs like solar panels and battery storage to optimize grid performance and enhance resiliency.
Electric Vehicle Integration — Many utilities are concerned about the impact of EVs on the grid. According to a 2023 Edison Electric Institute report, EVs could account for nearly 30% of the US passenger vehicle sales market by 2030. One impact of this could be a shift in the demand curve utilities are used to seeing. Utilities may not have a clear idea of which customers are charging their vehicles, or when or where. Not without using AMI data, that is.
AMI data could tell utilities when customers are charging their EVs, assist with load forecasting, help shift usage off peak, provide savings incentives to customers who charge during off-peak times, and overall help utilities feel more confident about their ability to manage widespread EV adoption.
The meter represents the point of sale of the product utilities sell – that product being energy. Looking at the world’s largest businesses, from Amazon to Apple, these companies have achieved great success by understanding their customers’ needs, and utilities should too. Utilities want to keep a strong relationship with their customers, understand their customers’ experience with their product, and the quality of the product being delivered.
AMI is a fundamental part of modern electric utility operations, providing far more than just accurate and efficient billing. By leveraging AMI data, utilities can unlock new efficiencies, enhance customer satisfaction, and support grid investment. At Southern Co., we are committed to challenging our vendor partners to expand these capabilities, ensuring that our smart meters truly provide grid-edge intelligence—more than billing.
