The Three Pillars for an Efficient

AMI Operation

by Antonio Tortolero Gordillo

Executive summary
Implementing automated metering infrastructure (AMI)
is a complex undertaking involving multiple
technologies. Utilities are best served by working with a
single service provider to coordinate the entire system
holistically. This paper discusses what to look for when
selecting such a provider. Specifically, the provider
must deliver the three pillars of efficient AMI operation:
focus on the utility’s goals, expertise in operation
routines that achieve those goals, and skilled IT
professionals and powerful software tools to integrate
the data collected by the AMI system.
998-2095-06-09-14AR1
 The Three Pillars for an Efficient AMI Operation

Introduction Successful implementation of an advanced metering infrastructure (AMI) comprises much

more than installing smart meters. AMI may be defined as “an integrated system of smart
meters, communications networks, and data management systems that enables two-way
1
communication between utilities and customers.” So, AMI is not a single technology but
rather the integration of several technologies that command and receive data from smart
meters. AMI provides utilities with real-time data about power consumption that helps improve
energy efficiency and realize other operational benefits that will reduce costs and improve
customer service. Yet the technical expertise, resources, and time needed to deploy, monitor
and manage an AMI system are complex and demanding.

Because AMI incorporates many different technologies and is integral to several Smart Grid
initiatives, most utilities find it more efficient and effective to work with a single experienced
managed services provider who coordinates all processes involved in the AMI rollout,
integration, operation, and evolution — as opposed to working with a meter provider and
communications provider and a data collection system provider, etc. When evaluating such a
managed services provider, the utility should look for one that can deliver the three pillars of
a successful and optimized AMI operation:

1. Definition: comprehensive understanding of and focus on the utility’s goals and

objectives when developing the AMI system
2. Development. deep knowledge of operational processes, and the commitment to
creating processes that best meet the utility’s needs
3. Integration: IT capabilities (powerful tools and skilled professionals) to integrate the
information collected by the AMI system

Criteria for determining whether a service provider can deliver these three pillars and
implement a successful AMI system revolve around three essential elements:

• appropriately trained and skilled people

• well-defined operation routines for everyday processes and procedures for non-
routine problem management
• software tools that help the people execute the operation routines

The utility that works with an experienced managed services provider that offers these vital
elements reduces its financial risk by transferring costs and responsibilities to the services
provider. It also gains enhanced system flexibility and optimization, made possible by the IT
expertise of the services provider.

1
U.S. Department of Energy
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 The Three Pillars for an Efficient AMI Operation

This paper discusses various actions that typically occur during AMI implementation,
objectives to consider during the definition and development, and the three essential
elements (people, operation routines, software tools) a service provider must possess to
deploy an effective AMI system.

Any AMI project consists of two well-differentiated phases: rollout and operation.
Actions in AMI
implementation Rollout refers to the actions involved in replacing all the meters included in the initial scope
of the project. Replacement might involve the complete population of meters — typically a
one-time initiative for a utility — or only some meters, in a proof of concept or pilot project.
The rollout phase also includes deploying the communication infrastructure to reach the
meters, such as concentrators, modems, antennas, and other communication system
components.

Operation refers to actions carried out on the infrastructure after the rollout, that is, after the
scheduled replacement, initial configuration of devices, and initial setup of the central system.
The operation phase of an AMI implementation might include:

• New installation, replacement, or dismantling of devices. Due to the natural growth

of the distribution network, new customers will have to be supplied. Other devices are
definitively removed from the network. Some devices are replaced due to faults.
• Configuration of any part of the system, from meters to applications. In addition to
configuring new elements of the system, any part of the existing infrastructure can be
reconfigured after initial setup. New configuration might involve meters — for time of
use, event threshold, external relay behavior, multi-utility, management of home area
network devices, or other parameters. Management of the WAN is needed for SIM and
IP address configuration, traffic monitoring, and security issues. New applications are
integrated, or older applications are retrofitted.
• Customer reconnect/disconnect. This feature, one of the most advantageous of any
AMI system, allows the utility to disconnect/reconnect customers remotely when there
are changes in the their situation: moving, delinquent payments, load control, etc.
• System upgrades. The infrastructure deployed should be useful for decades;
therefore, expect upgrades to servers, operating systems, communication
infrastructure, applications, monitoring and reporting tools, and other system
components.
• Adding features. While the AMI implementation is probably motivated by specific
reasons at the time of deployment, it is also likely that additional features will be
needed over the years. Additional features could involve modification of meter
firmware, the central system’s applications, or integration interfaces.
• Handling site incidents. Reading services, analysis of non-quality values, and
interruption of remote actions due to temporary conditions or human factors provide the
operator some insight into the cause of an incident. Most often resolving the incident
involves replacing the field device involved. Incident management conducted through
automatically issued procedures helps avoid errors and inefficiencies.

Figure 1
With AMI implementation
based on MSAs, the rollout
phase and the operation
phase will coexist during a
period of time.

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AMI
objectives
to consider
Systems that might
interface with AMI
The following systems might be
integrated with the AMI as it
evolves during operation:
• Distribution management
system (DMS) receives the
meter values, likely
aggregated by consumer
profiles, as well as power
quality events.
• Meter Data Management
(MDM) receives the meter
values for billing purposes.
• Outage management
system (OMS) receives the
power outage information
from every meter, as well as
other alarms generated by
the AMI system
These systems are in addition
to those integrated and used for
the rollout phase and during
operation, such as a customer
information system (CIS), work
order management system
(WOMS), and asset
management/GIS.
3 essential
elements for
AMI success
The Three Pillars for an Efficient AMI Operation
Ideally, the operation phase starts right after the first device is installed in the field. However,
with an installation strategy based on milestone areas (MSAs), operation will start after the
first MSA is accepted by the utility (Figure 1), so rollout and operation are underway
simultaneously.
With so many AMI solutions available today, utilities might find it difficult to know which one to
choose with confidence. They should look for a solution that is scalable, flexible, robust, and
adaptable to its future needs. A vendor-neutral platform offers greater flexibility and scalability
as the AMI grows, and allows the utility to manage both new rollouts and existing
infrastructure within the same system.
Specific benefits that utilities should bear in mind when discussing the definition and
development of an optimized AMI system with their service provider:
Make the most of the existing infrastructure. Utilities want to derive the most efficiency
possible with their existing AMI. Streamlining the addition of supplementary systems helps
extend the life of the system and lower the total cost of the ownership.
Ensure compliance with regulations. Some countries require utilities to report meter
readings within a certain period of time and/or information about the duration of power
outages affecting each customer.
Reduce labour costs. An optimized AMI system increases the number of reachable devices
and reduces field visits.
Improve capacity planning for low-voltage deployment. Greater visibility of the status of
the network allows more accurate network growth planning and asset protection.
Improve outage detection. An optimized AMI system delivers the accurate information
necessary to detect power outages — by detecting non-communicating devices, using the
‘last gasp’ message method or any other similar feature of the AMI system — and reduce the
‘Customer Minutes Lost’ index.
Detect energy theft. Energy thefts are detected by knowing the energy balance. An
optimized AMI system delivers the correct information that makes this parameter reliable.
Improve functionalities and services. A flexible system accommodates new developments
throughout the lifetime of the metering infrastructure:
• New applications added to the utility’s systems that require integration with the AMI
system (see sidebar)
• Synergy with feeder automation, including low-voltage monitoring and control
• Customer engagement in demand response programs, through control of devices at
home via the metering infrastructure.
Nearly every utility will realize a more effective implementation of an AMI system when
working with an experienced services provider that can deliver the essential people who
have been well trained, well-delineated operation routines, and powerful software tools
that integrate AMI data into everyday operations.
The interplay among these three elements may differ from one utility to another. What’s
important is that they are holistically intertwined. For example, people use the software tools
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 The Three Pillars for an Efficient AMI Operation

to perform the operation based on routines. The operation routines are defined by people to
fit the business processes of the utility. As such, they provoke a customization of the software
tool, including reports and user interface.

Or, we can look at the relationships another way: people define the operation routines to fit
the business processes of the utility, and customization of the software tool follows, allowing
people to use the tool for the daily operation described in the routines.

Both approaches to this cause-and-effect cycle are valid. The relationship depends on the
maturity of the utility’s processes for managing the metering data and infrastructure. In either
case, the purpose of the software tools is to automate processes as much as possible, avoid
human errors, provide the information necessary to monitor KPIs, and reduce operational
costs.

Whichever relationship applies, there is always one constant: the need for knowledge of the
metering operation processes, the adaptability to the customer needs, and the IT capability to
customize the software applications.

Figure 2
The 3 crucial elements of
people, operation routines,
and software are holistically
inter-related.

People
The people involved in an optimized AMI operation include:

• First-line support, who monitor the main Key Performance Indicators (KPIs) of the
system, such as exported meter values and non-reachable devices, on a daily basis
• Second-line support, who perform periodic maintenance tasks such as application
upgrades, security revisions, and backups at the data center. These personnel also
monitor and control the system when their specific skills are required.
• Development team, which improves the application according to the utility’s roadmap or
new requirements
• Operation manager, who coordinates definition of operation routines and their
adaptation to the utility’s business processes

Operation routines
The AMI operation routines include the procedures, checklists, and diagrams describing the
daily work performed by the operators directly monitoring the health of the system. These
routines also define periodic maintenance tasks and first- and second-line system support.

These routines serve to reduce operational and maintenance costs while preserving
performance quality. Compliance with operation routines also supports other specific utility

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 The Three Pillars for an Efficient AMI Operation

processes such as planned network rebuilding; customer communication; identifying causes

for meter unavailability; disconnection and reconnection; and characterizing incidents.

Software tools
AMI infrastructure software tools must be configured as much as possible for the people who
use them. First-line operation support personnel need a tool that provides powerful filtering
and reporting capabilities, to facilitate identifying problems.

Figure 3
Operational personnel can
monitor meter readings on an
hour-by-hour basis.

When a problem is identified, these support personnel need to be able to issue work orders
accurately, trace them efficiently, and receive field reports. Specifically developed software
tools for this activity minimize human involvement — and associated errors and delays — in
the transmission of information and definition of workflows. A ticketing system also helps the
first-line support personnel handle incidents.

Figure 4
When a problem is identified,
trouble tickets can be
entered and their status
checked.

With appropriate software tools, second-line support personnel can monitor the internal
workflows and integration interfaces and investigate and resolve more complex problems.

Figure 5
More complicated problems
may be escalated, and
persistent issues can be
investigated.

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 The Three Pillars for an Efficient AMI Operation

Conclusion Implementing an effective AMI system involves more than just installing smart meters. An
AMI system also includes communications, data collection, and workflow management
capabilities. As these capabilities are all integrally inter-related to one another, utilities can
more efficiently and successfully implement AMI by selecting a single service provider to
manage the entire rollout, integration, operation, and evolution of the system.

When evaluating service providers, a utility should look for one that can deliver the three
pillars that are key to an efficient and successful AMI operation:

• Deep knowledge of the operation processes

• Strong focus on the utility’s goals
• Skilled IT professionals and powerful tools

A qualified services provider helps the utility establish these pillars for successful AMI
operation through reliable meter reading services that monitor functionality; corrective service
that minimizes interruptions; efficient meter replacement; analysis and follow-up of non-
quality values; and optimization of the system (which may involve development at several
levels) made possible by the IT expertise. The utility gains a more successful AMI
implementation, reduces its financial risk by transferring costs and responsibilities to the
services provider, and controls the cost of operation.

Three specific attributes indicate a service provider capable of delivering the three pillars:

• appropriately trained and skilled people

• well-defined operation routines for everyday processes and procedures for non-
routine problem management
• software tools that help the people execute the operation routines

© 2014 Schneider Electric. All rights reserved.

About the author

With more than 15 years' experience developing electrical and metering hardware systems and
developing the Schneider Electric smart metering software platform, Antonio Tortolero
Gordillo is currently the AMI (Advanced Metering Infrastructure) Solution Architect in charge of
defining solutions for the metering environment. He has a communications engineering degree
from the Universidad de Sevilla.

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