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MARQUETTE --Smart meters could provide several positive impacts on electrical service for Upper Peninsula Power Company customers across the region starting in the spring.
The company announced the launch of its Smart Energy advanced metering system in a press release on Monday, which will allow for "quick and accurate meter reads and the ability to start and stop service without having to send a truck to the customer's premises," the release states.
The new system, which will be made up of individual devices capable of two-way communication that utility companies use to measure the amount of electricity, natural gas or water consumed at a customer's home or business.
The devices, termed smart meters, will record the date, time and the amount of energy consumed as well as the overall peak energy demand for that location, then send the information over UPPCO's secure private network back to the company's billing system.
UPPCO currently reads its meters on a bimonthly basis and estimates usage on the off months.
"By implementing the advanced metering solution, we will be able to read meters every month, greatly reducing our reliance on estimated values," UPPCO Vice President of Business Development and Communications Brett French said.
UPPCO was the subject of a 90-day Michigan Public Service Commission billing assessment completed in January to assess its estimated billing practices.
The inquiry was launched in October after the company filed for a two-year extension of existing waivers of the monthly meter reading requirements under the MPSC's billing rules applicable to residential and non-residential electric and gas companies. A number of UPPCO customers lodged complaints about wildly fluctuating bills associated with the practice.
According to a January Mining Journal article, as a result of the probe the company was able to improve its estimation procedures.
In addition to eliminating potential problems with bill estimates, the new meters are expected to improve efficiency and response time related to unexpected power outages, French said during a Friday phone interview.
"The new meters will detect and send a signal to the system control operator," French said. "Our OMS (outage management system) knows where our field resources and assets are located and actually dispatches them with the right equipment and the right supplies. (This) will improve upon the system dramatically improving call-out time and the timeframe to restore service."
Because UPPCO is creating its own private network, French said public internet availability should not be a factor in the operation of the new smart meters.
"We will be creating our own secure network where the meters will communicate with each other and other points on our system and then communicate back to our computer systems at our offices," French said. "And as a result we are able to ensure that customers' information is protected and secure. We take their privacy very seriously."
The company has not set a date or location that it will start smart meter installation, French said, but communication with UPPCO customers will be a key part of the process.
"We are in the early stages of the project. We have a lot of back-office work to set up the computers and servers to get the computer architecture up and running," French said. "(Customers) will know well in advance. We will be communicating with them through a variety of means; the UPPCO website, mailing, door hangers and they will also receive information in their monthly bills."
According to a fact sheet on the UPPCO website, customers will initially see a "nominal" increase in their monthly bills as a result of the program.
"Over time, the full benefits of the program will offset the initial increases," the fact sheet states.
The project is expected to take more than a year to complete, French said.
An opt-out option will be offered for customers who don't want to participate in the UPPCO Smart Energy Program.
Customers can find more information about smart meters and updates on the project by visiting www.uppco.com/smartenergy.
Lisa Bowers can be reached at 906-228-2500, ext. 242. Her email address is lbowers@miningjournal.net.