AMR financial analysis: How to ensure the process works for you

Conference · Sat Dec 31 04:00:00 EST 1994

OSTI ID:192144

Levesque, W

When analyzing the cost benefits of automatic meter reading (AMR) systems, two things are fundamental. Executive commitment is critical and the process of conducting financial analysis must be kept as simple as possible. Installing an AMR system is a strategic decision. Consequently, its impact on overall company performance is very difficult to quantify. And we don`t have to look far to find out why this is so. Virtually all utilities will agree that handheld electronic meter reading systems have dramatically improved productivity and accuracy, lowered overall operations costs, reduced paper flow and significantly narrowed the read-to-bill window. But many may have forgotten that these systems were once extremely difficult to cost-justify. Back in 1985 or 1986, when many handheld systems were first installed, utilities were not thinking about cost savings in the way they do now. Few considered the full implications of quick information turnaround or time-stamped data. The revenue gains of these innovations are now taken for granted, but that is only because handheld systems dramatically changed the cost structure of meter reading operations. With hindsight, cost-justifying handheld systems is now obvious. Unfortunately, we do not have the luxury of hindsight when considering many of today`s AMR solutions. But at the same time, we can be certain that these systems are going to change meter reading cost-structures once again. And experience has shown that the technology is likely to have significant hidden cost benefits that will become evident later on.

• OSTI ID: 192144
• Report Number(s): CONF-940129--
• Country of Publication: United States
• Language: English

Related Subjects

03 NATURAL GAS
AUTOMATION
COST BENEFIT ANALYSIS
METERING
NATURAL GAS