"We are taking another giant step forward," said Administrative Services Director Ken Gieringer.
The data flow increases substantially and gives reports for every fifteen minutes. In order to set rates that reflect costs, especially now with demand being such a big factor, MMU needs to be able to track electric usage throughout the day rather than once a month.
"This will allow me to set up rates to encourage usage-shaving and the only way to do that is hit them in the pocket book," he said.
Customers using less electricity will be rewarded for turning the air conditioning up when they leave the house and no one is at home, which helps conserve energy.
With information the readers will offer, Gieringer said he could "recover the cost from that individual instead of everyone." Currently the system only allows Gieringer to raise rates for everyone, so people conserving energy are still paying for those who don't.
The system also improves access problems because MMU currently has a number of places where getting a reading is difficult or impossible due to fences, dogs and other constraints. In some of the locations, MMU has remote displays, but they are getting harder to acquire and MMU's has seen recently what happens when they fail.
The control of the system is very helpful and provides an infrastructure MMU can use. It includes devices that can turn off high load devices, such as air conditioners, during peak usage periods.
Gieringer said that with the permission of the customer an optional electronic piece could be added to the air conditioning unit that would turn it off for 15 minutes of every hour. If the customer chose this option, in return, MMU would offer lower rates.
Emergency response is another plus. The system would allow MMU to pinpoint outages and manage their response more efficiently.
The pilot project Gieringer is proposing is to automate 500 electric meters and 50 water meters this year, while adding some ancillary devices like "smart thermostats" and load shedding controls.
"It is our intention for now to only do the water meters where we have access problems, but we included them in order to provide a better idea of the overall system cost if our needs change," he said.
The "full rollout," or exchange of all meters, would automate an additional 5,500 electric meters and 5,000 water meters.
"The full rollout would begin after about a year, if the pilot was successful," he said.
MMU received two proposals. The board accepted the proposal from Trilliant Networks for the pilot test at the cost of $98,325. The full rollout would cost $1,350,425. The other proposal received did not meet the bid specifications and was declined.
The proposal includes new electric meters with communication modules already installed.
"We have the option to purchase just the module and install them in our existing meters, but we feel that because most of our meters are the old mechanical style, it would be good to replace them," he said.
Board Secretary Mike Mills said, "This is just a win-win thing."
"I have no doubt it will work," Gieringer said.
Both General Manager Kyle Gibbs and Electric Distribution Director Jeff Bergstrom expressed their feelings about the system in a positive manner.
Board member Jim Heinzler said he was still reluctant on the decision. He stressed concerns about spending $100,000 on something that may not work out the way MMU hopes.
"I am from Missouri, you have to show me," Heinzler said.
The board approved the pilot system.
Gieringer and Bergstrom will get together to decide what area will get the pilot system.
Contact Rachel Harper at marshallcity@socket.net
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