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Meter replacement carries $200M shock

PUC: Rhode Island Energy’s advanced metering proposal ‘costs would be borne by ratepayers’

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Rhode Island Energy’s “advanced metering” proposal will cost the Ocean State nearly $200 million and require the manual replacement of approximately 525,000 electric meters.

“If approved … and this is still an ongoing docket … the costs would be borne by ratepayers,” said Thomas F. Kogut, Associate Administrator Cable TV and Legislative Liaison for the Rhode Island Division of Public Utilities and Carriers (PUC).

Following historic electric rate hikes immediately after PPL’s acquisition of the Narragansett Electric Company (forming Rhode Island Energy), the state’s new power-providing entity will be back before the PUC next week, requesting a total overhaul of the state’s electric metering system — a process known as “Advanced Metering.”

RI Energy testimony estimated the statewide meter replacement program at “$188 million on a net present value (NPV) basis over the 20-year project life.”

However, Rhode Island Energy seeks $199.6  million in additional revenues “to fund the incremental cost associated with the AMF through a separate factor outside the base distribution rates (AMF Factor) over eleven years, 2023 through 2033,” according to the PUC’s legal advertisement publicizing next week’s public hearing.

The overall price tag “includes the meters and associated IT technology and installation,” Kogut explained.

The public has the chance to comment on RI Energy’s proposal at a 6 p.m. public hearing on Tuesday, April 4, in Hearing Room A at the PUC Office, 89 Jefferson Boulevard, Warwick.

“In this docket, Rhode Island Energy filed for approval of the Company’s Advanced Metering Functionality (AMF) Business Case program proposal,” according to legal advertising for the public hearing. “The proposal includes a full-scale deployment of AMF across its electric service territory in Rhode Island intended to replace existing electric automated meter reading (AMR) meters. The proposal includes capital spending and recovery through rates for expenses associated with meters, software, communications and other operating expenses.”

Kogut explained that the cost, per ratepayer, would be less than a dime per month.

“Cost factor in the company’s transmittal, as proposed has, for illustrative purposes, a projected 7 cent/month residential bill impact with a cumulative impact of $246 in the fifth year of the cost recovery,” Kogut said.

While PUC approval is not guaranteed, the state board ultimately approved the sale of the state’s electric provider to the east coast utility powerhouse formerly known as Pennsylvania Power & Light (now PPL), and the subsequent rate hike.

Kogut warns, however, that no matter the PUC’s decision, the state’s aging meters are nearing obsolescence.

“One point to note, the AMR meters are nearing the end of their operational lives, and will need replacing,” Kogut said.

According to the PUC, “The AMF factor would recover the actual incremental capital investments placed in service and the actual incremental operation and maintenance (O&M) costs incurred on a historical basis.”

Kogut broke down the overall proposal.  Approximately $73 million will be spent on hardware. Meter install costs should run around $19 million.

“These costs include both utility and vendor labor to physically install the meters and related equipment and facility costs to enable meter deployment,” Kogut explained.

RI Energy spokesman Ted Kresse released a statement from the utility company.

“The Advanced Metering Functionality (AMF) Business Case … we submitted to the (RI PUC) is an important step in modernizing the state’s energy infrastructure for the benefit of all Rhode Islanders. Approximately 60% of our existing meters are nearing the end of their design life and need to be replaced.”

The power provider insists the new technologies included in the AMF proposal will provide their “customers with greater control, choice, and convenience in managing their energy consumption.”

“What’s more, AMF technology will also help us meet evolving customer expectations by enhancing outage management capabilities and enabling more convenient remote service connections,” RI Energy argues. “If approved, this proposal will also help deliver the clean energy network our customers and communities deserve and reflect a collaborative effort between Rhode Island Energy and key stakeholders to create a more efficient, resilient, responsive grid. And, while replacing Rhode Island’s existing electric meters with advanced meters will require investment, we have put together a thoughtful, enduring proposal that we anticipate will result in minimal bill impacts to our customers.”

Several months ago, RI Energy also filed its “Grid Modernization Plan,” which “provides an outline of how the electric distribution system can evolve to handle the growth of distributed energy resources, including renewables and energy storage, and allow greater flexibility to enable a two-way exchange of energy and information — something today’s grid was not designed to accomplish.”

“Together, the Grid Modernization Plan and AMF Business Case will enable significant customer benefits, including reduced energy use and improved reliability,” according to RI Energy. “Importantly, they provide a more holistic long-term cost containment strategy for modernizing our infrastructure. As energy supply costs are at an all-time high, it’s critically important that we look to implement smarter, more efficient technologies that can help decrease costs for our customers over time.”

Kresse said the impact on most residential electric bills should be minimal.

“If approved, (the $188 million) will be collected from RI customers with an average bill impact over the first 5 years of $1.27 a month for a residential customer using 500 kWh of electricity,” Kresse explained Tuesday. “Costs for the installment of the meters has been factored in to the $188 million. We don’t have an estimate of actual hours needed, but if approved, we anticipate full deployment of the meters to take approximately 18 months.”

Tuesday’s hearing will not be “an evidentiary hearing,” said Kogut, “but a hearing for public comment.”

The original public comment session was scheduled for Feb. 28, but canceled due to a winter storm. The hearing can be watched online, and the public can weigh in via Zoom link or in person. Details can be found at the PUC’s website (ripuc.ri.gov).

Public hearings on the RI Energy proposal are expected to continue through the summer.

PUC, meters, electricity

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  • retiredteacherofthedeaf

    RI ratepayers and all RI residents need to understand that RI Energy’s plan to saturate all homes and businesses in RI with Automated Meter Functionality infrastructure in the near future impacts not only cost and convenience, but many other crucial factors. I was one of the people who testified in person at the April 4 RI PUC Public Hearing, and there were numerous other people who testified via zoom or phone, and/or sent in lengthy written submissions to the RI PUC Commissioners. Almost all of this testimony was vehemently against the proposal, and the huge price tag was not even mentioned. Here are some reasons, backed up with scientific evidence, that the RI PUC should deny RI Energy’s AMF proposal:

    For anyone who delves beneath the surface of RI Energy’s assurances of the safety and security of these AMF meters, it should be clear that they are neither safe nor secure. There are many serious flaws with these “Smart” Meters, as those in other states who rolled out these meters a decade ago can attest. Those who have researched this topic know that we do not need and do not want the imposition of this technology that imperils health, collects intimate data from every household and business, causes household appliances to malfunction, causes electrical fires, requires excess electrical energy to run, increases atmospheric CO2, and controls and unfairly monetizes consumers’ energy use. RI should learn from the hard lessons of those in other states whose health has been seriously harmed, and who not only did not save money, but incurred even higher electricity bills when “Smart” Meters were installed on their property. The RI PUC Commissioners need to seriously consider all of the testimony that has been provided, not merely accept RI Energy’s assurances at face value. Now that 60% of RI’s AMR meters are aging out, the RI PUC should explore other safe, accurate, and secure options for measuring electric usage. RI Energy’s plan should be denied. Here is the livestream so that everyone can watch the testimony for themselves. https://video.ibm.com/channel/WqQyXw296dg

    The RI PUC is still accepting written testimony via email. The Docket Number is 22-49-EL. Submit to the Clerk: luly.massaro@puc.ri.gov (That is Luly Massaro.)

    IN RE: THE NARRAGANSETT ELECTRIC CO. d/b/a RHODE ISLAND ENERGY ADVANCED METERING FUNCTIONALITY BUSINESS CASE AND COST RECOVERY PROPOSAL

    Thursday, April 6 Report this