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Implementing Dynamic Pricing – Meter Configuration Trade-offs

Technical and financial impacts of Smart Grid meter selection


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Utilities choosing to implement Smart Grid solutions have many business and technical options which can lead to improved operational and asset efficiencies and enablement of demand management programs. This paper explores the technical and financial impacts a utility may need to address when considering meter hardware selection to support AMI, demand management, and dynamic pricing offerings.

The technical perspectives are focused mainly on configuration at the meter level. The financial perspectives are based on high-level business case scenarios, where the impact analysis of the meter configuration options reveals that the utility's investment may significantly increase if the utility does not take the long-term perspective into consideration concerning business drivers, the regulatory horizon, cost recovery, scalability, and future performance capabilities that may require the implementation of advanced Time-of-Use (TOU) billing at a later date.

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