AMI Reluctance and the Risk of Doing Nothing
AMI Reluctance and the Risk of Doing Nothing
Advanced meter infrastructure (AMI) systems bring cutting-edge technology to the water industry. AMI delivers advanced capabilities, namely the power to collect frequent, accurate water usage data. This data, in turn, helps automate billing and leak detection. As utilities learn to use data as an asset, the advantages compound. Utilities that have transitioned to AMI benefit from increased revenue, reduced risk, improved customer relations, and widespread efficiencies across operations.
Despite the overwhelming evidence and positive perception of AMI, there remains a large chunk of utilities across the U.S. that have yet to initiate the transition. Over and over, in conversations with utilities, we find that AMI reluctance stems from the following issues: financial apprehension, operational apprehension, disinformation, and disinterest. It’s not surprising that these concerns exist, given that AMI is still a relatively new solution in a traditional industry. However, considering the overwhelming evidence in favor of it, AMI reluctance, itself, is a risk. Considering all that water systems have to gain by transitioning to AMI, we think it's time to lay out the truth about AMI.
The Truth About AMI Costs: ROI Is Real And Rapid
One of the biggest obstacles to AMI transition is cost. For many utilities, the transition to AMI requires the purchase of all new meters that may not be in the budget for another decade at least. But that is no reason to put off discussions or to disengage altogether. The cost is real, but the ROI is also. In fact, the rate of return may surprise you. When properly installed and maintained, AMI meters are proven to generate a quick and positive return on investment. The reasons are simple: AMI systems enable utilities to regain lost water revenue and minimize repair costs.
If you consider the cost of water loss due to leaks, revenue loss due to meter failure or sensitivity, along with the costs to repair and replace damaged pipes and property, the cost of AMI seems less like an investment and more like a no-brainer. Keep in mind that some utilities may see ROI even faster, especially those switching from mechanical to ultrasonic or ALD meters. This acceleration is due to the added benefit of ultra-low flow detection. Furthermore, for utilities that are plagued by leaks, AMI systems help minimize loss, which can further boost ROI.
The Truth About Non-Revenue Water Loss: It’s Unacceptable, Expensive, And Risky
Drips and leaks are a constant reality in the water industry, and there are plenty who wonder if they are worth all the fuss. Yes, they are. Over time and left undetected, simple drips can add up to hundreds of gallons of lost water. And though many leaks start small, they grow quickly.
Non-water revenue is not only a financial issue, it’s also a symptom of systemic infrastructure failure. As older model meters age, they are less likely to pick up the small leaks that lead to major problems. While technology continues to advance, water infrastructure ages, as do meters. As pipes age, they lose more water, opening the possibility of health concerns or catastrophic damage. When it comes to meter technology, today’s hesitation is tomorrow’s leak, break, or loss. Investing in upgrades now can save you money and time later.
Today’s customers expect water companies to maintain the civic infrastructure to avoid breaks and shutdowns. They also expect water companies to make decisions to conserve water. By investing in AMI systems, utilities are securing a vital community resource and activating a warning system. Because AMI systems continuously and automatically detect small drips and leaks and report them in real time, this allows companies to react quickly to problems and prioritize repairs to prevent breaks.
The Truth About Data Management And The AMI Learning Curve: It’s Smaller Than You Think
Adopting any new technology comes with a learning curve. This much is true. But compared to the transition from traditional meters to AMR, the shift to AMI is far less disruptive. Those who have converted to AMR know that it requires learning how to operate new devices, software, and systems. It changes day-to-day operations. AMI systems are simpler and more intuitive. For those who have sworn off any new technology for the foreseeable future, we have good news. The hard part is behind you.
Many utilities are reluctant to consider AMI because they fear resistance from their employees. The good news here is that teams that have adapted to AMR technology will easily transition to AMI. Because AMI systems can be used with most devices, including computers and smartphones, employees can use a device they’re already comfortable with to track and manage data. Also, automated data reporting frees employees’ time and allows them to be more involved in water conservation and system repair. And employees who see themselves as protectors rather than damage control are generally more engaged and productive. Likewise, AMI helps with recruiting, as it appeals to applicants who want to use technology to conserve natural resources, such as software engineers and data specialists.
Some utilities are apprehensive about AMI because the idea of all that data is simply overwhelming. The good news here is that more data doesn’t mean more effort; it means more evidence. As you accumulate data, you eliminate guess work. You and your team can act more efficiently, conclusively, and confidently. With the right partner and the right solution, your team will not be overwhelmed with information. Rather, the solution will do the work for you, processing the data for you, allowing you and your team to act.
The Truth About AMI Vendors: The Right Partner Makes All The Difference
It’s never too soon to start discussions with AMI partners. When making an investment of this size, it’s critical to choose a vendor that sets you up for success. Find a partner that listens to your needs, one that delivers planning and training suited to your system and your team. The right vendor can ease you into the new system using the same billing routes, cycles, and zones you use today. A good partner is committed to building your ability to capitalize on AMI with ongoing support, so after your employees have gotten used to the new system, they can begin diving into the data beyond hourly reads and customer reports to fully utilize the programs available.
Kamstrup’s READy Network AMI system makes it easy to transition to AMI. Its patented acoustic leak detection is built inside the meter, eliminating the need for extra hardware, and our dedicated software is easy to use and provides advanced analytics to help you recover lost water revenue and detect leaks. We partner with water companies to upgrade their systems and protect their investment by focusing on customer-first initiatives and designing systems and solutions that simplify the transition to AMI.
About The Author
Andrew Dudley is the Senior Solution Manager for Kamstrup, a leading company in the field of water management and metering solutions. With a strong background in the smart grid and utility industries, Andrew plays a pivotal role in supporting Kamstrup’s Sales and Distribution teams across North America. In his position, Andrew excels at providing pre-sales support, leveraging his extensive product and solution expertise to assist customers in finding the ideal solutions for their needs.