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DEMAND RESPONSE: HOW TO REACH THE OTHER SIDE

 THE OLDEST PROPHECY IN THE ENERGY INDUSTRY

 
By Jan Peeters

Automated meter reading (AMR) is a long-heralded idea, but its arrival has been equally long-awaited. What has changed? The answer lies in the fact that the AMR's prerequisites are only just coming into existence:

The first prerequisite is competition among carriers in the supply of transmission links. Seventeen years ago only the local telephone companies could offer the coverage required to link all the metered sites of a major power utility to its centralized data management center. Today, from virtually any location in North America, data can be transmitted via at least four and, more typically, eight to twelve distinct communications networks—among them, the local telephone company, two to four cellular companies, the cable company, a half-dozen paging companies, and three operators of low-level orbiting satellites. And there are more to come.

As well as stimulating carriers to negotiate prices, this competition has led to a more open attitude as to how their networks may be used. They don't want to tie up dedicated circuits or channels, except in a small number of high-density or high-value locations. In fact, the amount of data and frequency of transmission needed to monitor a typical house or commercial location would not use the billionth part of the transmission capacity of something as prosaic as a full-time dedicated telephone line. Telephone, wireless, and cable networks have similar problems. All these carriers rely on the existence of telemetry to control routing and other features of their networks. To do so they have overlaid signaling protocols that operate separately from the transmission of other content. Because of competition, carriers are starting to open these capabilities to third parties. Thus, telephone companies are gradually deploying utility telemetry service protocols. Cellular companies are offering the excess capacity on their out-of-band channels as an alternative to tying up a conventional channel. Without these developments, it would be impossible to deploy a cost-effective bi-directional network, which is necessary for AMR.

The second prerequisite is the willingness of utilities to consider outsourcing data management. In a competitive world, utilities have to re-evaluate every function and determine dispassionately who can best perform it. Often the conclusion is that specialized companies should carry out specialized functions. However, the objectives and the approach taken to outsourcing vary widely from case to case.

Of much greater significance is the third prerequisite: improvements in electronics in terms of cost, consumption, and variety.

A main component of much meter surveillance technology is the "autodialer," a device that can store information and be prompted by a specific event or the passage of time to access a network and begin communications. Fifteen years ago such devices were used extensively in the long-distance industry and cost approximately $700 each. Though largely supplanted now by other technologies, similar devices today can be acquired for under $100, making the cost of electronics no longer a barrier to automation.

Until recently the amount of power consumed by electronics was a major problem—they need to perform for prolonged periods of time in the absence of external power. Power supplies are one of the more expensive and trouble-prone of electrical components and, except under special circumstances, battery backup is economically out of the question. However, the greater power efficiency of electronics, coupled with lower costs of nonbattery energy storage devices, means that solutions are at hand. A number of AMR manufacturers use telecommunications interconnection devices—they can even draw their power, measured in micro-amps, from telephone circuits.

A decade ago most advanced AMR devices were being developed by start-up companies. But the number of manufacturers has grown, and large corporations with extensive development and field support capabilities have become involved. This does not mean that the buyer can close his eyes and pick. The development and refinement of specifications, the creation of software and hardware test beds, the use of field trial protocols, and so forth, must still take place. However, the presence of major, well-capitalized suppliers is a positive development.

Most jurisdictions are settling for some form of competitive electricity metering services. Thus the possible erosion of the electric utility's meter monopoly is one reason to act now.

The second reason is that energy deregulation is taking place against the backdrop of rapid changes in another industry, namely local telecommunications. Over the next few years the co-axial cable platform will be digitized, and high-speed data modems will be added to the cable and telephone networks. The bevy of new fixed-wireless entrants and the unbundling of the old monopolies all point toward an explosion in the number of local communication providers and a fragmentation in operating standards. Thus, with time, it becomes harder and more expensive to deploy a common provisioning platform.


Jan Peeters is chairman, president, and CEO of Olameter, Inc.


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