Published on October 27, 2020
An important new report authored by Michael Kagan for the R Street Institute indicates that leveraging the use of Advanced Metering Infrastructure (AMI) in competitive markets could potentially save $250 million per year for residential consumers currently on competitive supply while also reducing energy consumption, improving grid resiliency and supporting new products and services for consumers. To achieve these goals, regulatory commissions must require that both new and existing AMI implementations provide retail suppliers revenue-grade customer usage data on at least a daily basis.
AMI has the potential to empower consumers to better manage their electricity usage and select competitive rate plans that best meet their needs. In developing the report’s conclusions, recent research and various market trends were considered. This research included a survey conducted by the American Council for an Energy-Efficient Economy (ACEEE) of the energy savings achieved in existing time varying rate programs. Recent trends considered include new competitive supply products and advances in the use of real-time AMI data.
“Achieving this level of savings will require regulatory commission actions that ensure competitive market participants have greater access to new and existing AMI investments so that they are able to create additional benefits for consumers and advance specific policy objectives,” stated Mr. Kagan, Senior Vice President, Concentric Energy Advisors. “As we approach full AMI deployment in the United States, we have a unique opportunity to foster a series of innovations that will generate significant cost savings and environmental benefits for consumers. These direct savings in the competitive markets alone could top $250 million per year for residential consumers and we could realize far greater savings from deferred utility investment and the environmental benefits of reductions in demand peaks.”
The report was produced for the R Street Institute. Mr. Kagan extends his gratitude to R Street Senior Fellow Michael Haugh for his contributions to the report.