AMI System Procurement - Aligning Vendor Interests.

Mondaq Business BriefingNbr. 2008, March 2008

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Advanced metering infrastructure

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AMI System Procurement - Aligning Vendor Interests.

Copyright 2008, Blake, Cassels & Graydon LLP

Originally published in Blakes Bulletin on Information Technology, June 2008

Introduction

Advanced Metering Infrastructure (AMI, as defined below) is gaining ground in North America and beyond as not only a market-driven, but increasingly a government-mandated technology implementation aimed at modernizing and improving the public utilities infrastructure. And for good reason. The expected benefits of implementing an AMI system are great, and have been widely acknowledged to span the spectrum from economic advantage for consumers and retailers, to progressive and responsible government energy policy.

While the various market incentives and government mandates spurring utilities to implement AMI systems have translated into a robust market, the cost of procuring and implementing the requisite technologies are high. The U.S.-based Electric Power Research Institute (the EPRI) puts the cost at US$201 to $250 per installed meter. The capital outlay of Southern California Edison Company to implement its AMI system has been stated in the online publication Transmission & Distribution World (January 1, 2007) as approximately US$1.3-billion in cap...

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