BC Hydro is promoting its business case for spending $930 million over roughly two years to replace existing energy meters used by its 1.5 million customers with smart meters.
In a 44-page report release on Tuesday, BC Hydro said the smart metering program’s benefits will exceed the cost of installation by $520 million.
Smart meters are digital-powered devices that allow two-way communication between BC Hydro and its customers.
BC Hydro expects customers to reduce energy usage by up to 15% as a result of being able to monitor their energy consumption more closely with smart meters.
The utility business case says a modernized electricity system will improve safety and reliability, reduce electricity theft and provide customers with new tools to manage their energy use and ultimately save money.
In terms of a reduction in theft, the utility’s smart meter business case states: “legitimate customers bear the cost of electricity theft, which has grown significantly from approximately 500 [gigawatt hours] in 2006 to an estimate of at least 850 GWh today – that’s enough power to supply 77,000 homes for a year and amounts to approximately $100 million a year in energy cost.”
BC Hydro says distribution system meters, which will measure electricity supplied to specific areas, and software tools that enable electricity balancing analysis, will help BC Hydro identify electricity theft more accurately and address it more quickly.
Smart meters also have a tamper detection feature that automatically notifies BC Hydro if they have been removed from the wall or otherwise manipulated.
Among the other major cost benefits in the program are voltage optimization and the ability to read meters remotely without requiring a fleet to meter-reading personnel.
Installation of smart meters will begin in 2011 and will be complete by the end of 2012. Other elements of the program will continue to be implemented through 2014.
For most customers, installation will take minutes, said BC Hydro.
In mid-2012, customers will receive information about in-home feedback options that will provide them with the ability to monitor their energy use in near-real-time and make adjustments to save money.