Tutorial
Benefits of a well-thought-out
system usually outweigh costs,
especially over the long term.
must be developed for reading
system comparisons. Figure 1
shows a sample comparison
of some elements of manual
functionality compared to AMI
functionality. Often, 50 to
100 separate assumptions are
developed and used in a linked
MS Excel workbook to calculate
present-worth cost of various
meter reading alternatives.
Figure 2: Meter reading system cost comparison
Example Cost Comparison
For Business Case
Following the development
of assumptions for different
meter-reading scenarios and
technologies, best estimated
costs for a specific AMI (or
AMR) system are calculated.
Figure 2 provides an example
tabulation of comparative
present worth costs for manual
and AMI reading systems for
a large utility having 200,000
metered customers. Capital and
annually recurring operational
costs are tabulated and
compared to determine total
present worth. This information
also helps calculate the years
for capital cost payback.
The comparative economic
differentiator is generally the
savings in annual operating costs of AMI over manual
read systems.
case and analyzing the ROI and implementation
timeframe helps all involved understand the details
that put utility management in a good position to
optimize these systems for the future.
Contemplating Outside The Meter Box
The cost savings of AMI systems are typically
understated, so deferring a decision on at least piloting
the technology only renders a utility behind the
industry in collecting and mining information critical to
future operational efficiency, water conservation, and
superior customer service. Benefits of a well-thoughtout system usually outweigh costs, especially over the
long term. The effort spent developing a good business
wateronline.com
Stephen Davis is a technical expert for ARCADIS with more than
four decades of experience in potable water system evaluation,
planning, modeling, design, and research. Prior to becoming a
consultant, Mr. Davis spent 10 years with the City of Tucson Water
and Sewer Utility. He is chairman of the AWWA Customer Metering
Practices Committee (currently rewriting M22) and a member of
the Water Loss Control Committee (currently re-writing M36).
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