Common Ground on Common Industry Terms
An Extended Glossary
Common Ground on Common Industry Terms
Preface
This document seeks to define, for the marketplace and for Itron as a market leader, the meaning of certain
technology terms. Our purposes in doing so are:
 Reducing confusion for those in the marketplace who are less educated about these terms (including Itron
employees).
 Supporting standardization of these terms.
 Reinforcing Itron’s position as a knowledge leader and the source to contact when a technology term is
unclear.
By defining these terms in a credible, consistent, and authoritative manner, we hope to have several positive
impacts:
 All Itron employees use the same definition for these terms.
 Consultants use these definitions.
 Customers and prospective customers use the definitions.
 Itron has credibility in these areas, even if our products are not the best fit for a particular customer or
situation.
Audiences for this document include
 Itron employees
 Utility customers and prospective customers
 Regulators / legislators
 Consultants
 Partners
 Competitors
If you’d like to propose changes or additions to this document, please contact Matt Spaur at 509.891.3992 or
matt.spaur@itron.com.
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Common Ground on Common Industry Terms
Table of Contents
Metering and Data Creation Terms................................................................................................. 5
Data Logging .............................................................................................................................. 6
Net Metering ............................................................................................................................... 7
Pre-Paid Metering ....................................................................................................................... 8
Smart Metering ........................................................................................................................... 9
Solid-State Meters ..................................................................................................................... 10
Meter Data Acquisition Terms...................................................................................................... 11
Advanced Metering Infrastructure (AMI) ................................................................................ 12
Advanced Network ................................................................................................................... 13
Broadband Over Power Line (BPL) ......................................................................................... 14
Fixed Network .......................................................................................................................... 15
Head-End System...................................................................................................................... 16
Interval Data Collection ............................................................................................................ 17
Mesh Network ........................................................................................................................... 18
Power Line Carrier (PLC) ......................................................................................................... 19
Real-Time Data ......................................................................................................................... 20
Remote Disconnect / Connect Virtual Disconnect / Connect ................................................... 21
Two-Way Networks; Two-Way Systems; Two-Way Communications ................................. 22
Unlicensed Spectrum ................................................................................................................ 23
Mobile Workforce Management Terms........................................................................................ 24
Mobile Workforce Management ............................................................................................... 25
Meter Data Management Terms ................................................................................................... 26
Meter Data Management........................................................................................................... 27
Meter Data Applications Terms .................................................................................................... 28
Leak Detection .......................................................................................................................... 29
Load Forecasting ....................................................................................................................... 30
Load Profiling ........................................................................................................................... 31
Outage Detection and Restoration ............................................................................................ 32
Demand Response and Load Management Terms........................................................................ 33
Demand Response ..................................................................................................................... 34
Load Control ............................................................................................................................. 35
Price Response .......................................................................................................................... 36
Time-Of-Use (TOU) Pricing / Critical Peak Pricing / Real-Time Pricing ............................... 37
Delivery System Management Terms ........................................................................................... 38
Compatible Units ...................................................................................................................... 39
Design Optimization ................................................................................................................. 40
Distributed Generation / Distributed Resources ....................................................................... 41
Distribution Asset Optimization (DAO) ................................................................................... 42
Gateway .................................................................................................................................... 43
LMP (Locational Marginal Pricing) ......................................................................................... 44
Performance Based Rates (PBR) .............................................................................................. 45
Smart Grid................................................................................................................................. 46
Zonal Forecasting...................................................................................................................... 47
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Common Ground on Common Industry Terms
Trans-Product Terms .................................................................................................................... 48
Open Standards ......................................................................................................................... 49
Open Systems............................................................................................................................ 50
Revenue Assurance ................................................................................................................... 51
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Common Ground on Common Industry Terms
Metering and Data Creation Terms
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Common Ground on Common Industry Terms
Data Logging
Definition
Collecting water meter data at frequent time intervals in order to provide feedback on usage for billing disputes,
water conservation efforts and leak detection. Most water utilities do not currently collect consumption data more
frequently than monthly.
Relevance
As water becomes a scarcer resource and utilities strive for operational efficiencies, utilities are looking for features
such as data logging to provide more detailed data about water consumption.
Best Fit
Data logging works best in situations where water utilities have the need to record frequent data in support of
expanded customer service efforts or water conservation programs.
Real World
Increasingly, utilities are inquiring about data logging as leak detection becomes more important.
Itron Solutions
Itron’s 1430 MHz water endpoints do support data logging and allow for 840 intervals of scalable data. 200W and
200WP water endpoints support data logging and can be configured for 15 minute, 30 minute, 1 hour or standard
bubble up interval of 4 hours. Itron’s 900 MHz water ERT modules do not support data logging.
Related Terms
Interval Data Collection, Meter Data Management
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Common Ground on Common Industry Terms
Net Metering
Definition
Net metering applies to energy customers, such as commercial and industrial users, who both generate and purchase
power. Utilities need to meter the power generated by customers to determine the credit the customer should receive.
A net register calculates energy to be billed by subtracting power received from the customer from the power
delivered to the customer. Net metering provides the technology to calculate this amount as a net amount within the
meter. This saves the utility from needing to record multiple billing values during the data collection process and
performing calculations to determine the net value.
Relevance
C&I customers out of necessity, and residential customers out of environmental interest, are exploring the option of
generating some of their own power through distributed generation. Technologies for distributed generation include
solar, fuel cell, and bio-mass generation. To support distributed generation, utilities are required to meter the credit
for customer-generated power, as well as the debit for customer-consumed utility power.
Best Fit
Net metering has been used for years at transmission interconnection points, large customer interconnection points,
and large generation stations, to name three uses. It is also commonly used with a utility’s largest five to ten percent
of customers. Net metering also applies to distributed generation, for those customers who have the ability,
resources, and economic incentive to generate power on their own.
Real World
Distributed generation, and thus net metering, has yet to achieve a significant level of penetration in the
marketplace.
Itron Solutions
Itron electricity meters – including the SENTINEL meter and the CENTRON (kWh only) – support net metering.
These products offer flexibility in the calculation of the billing data to include calculation of the net value.
Related Terms
Distributed Generation
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Common Ground on Common Industry Terms
Pre-Paid Metering
Definition
The ability to credit a customer’s account or meter for pre-payment for energy. A fairly common approach is to have
customers pre-purchase energy cards or vouchers, much like they would a pre-paid phone card, and their “Pre-paid–
enabled” meter would provide the interface and communications technology that enables them to redeem the card
for energy on a pay-as-you-go basis.
Relevance
Utilities exploring revenue assurance options are increasingly examining pre-paid metering. Pre-pay can help
improve cash flows. Pre-payment could also be required of customers with a history of late payment or missed
payment.
Best Fit
Barring a utility’s ability to offer significant discounts for pre-payment, the best fit for pre-paid meter remains
accounts that have a history of late payment, no payment, or credit issues.
Real World
Pre-payment fits best in areas of high customer turnover, historic revenue loss through nonpayment, and cultures
where the theft of service is ingrained. Several deployments are in place in the US, but this application is not yet a
significant growth area in North America. Pre-payment is common in Africa and South America, and to a lesser
extent in Europe.
Itron Solutions
Itron does not have a pre-paid metering application, but can provide tools to facilitate such an application.
Related Terms
Remote Disconnect / Connect, Revenue Assurance
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Common Ground on Common Industry Terms
Smart Metering
Definition
A foundational technology including meters, communications systems, and computer processing that automatically
collects meter data frequently to support various applications beyond monthly billing.
Relevance
As markets such as California and Ontario adopt programs known colloquially as “Advanced Metering Initiatives,”
it becomes important to understand what is meant by “smart metering.” This is particularly true as some metering
and AMR manufacturers have labeled their products as “smart meters.”
Best Fit
Itron believes that smart metering encompasses more than a meter’s communications ability. Smart metering also
includes systems that automate meter reading and provide a frequency and complexity of data that supports
applications beyond monthly customer billing. Some of those applications include forecasting, load management,
outage detection and restoration, and variable rate structures. By enabling these types of applications, smart
metering provides benefits to both the provider and the consumer. This form of smart metering has existed in the
marketplace since at least 1994.
It has been most successful in serving the electrical needs of customers in urban and suburban areas, where the
number and density of customers justifies the additional investment required to implement smart metering.
However, to a lesser extent smart metering has also benefited water and natural gas providers and consumers, such
as collecting gas day take information.
Real World
Many utilities large and small are using various automated meter reading (AMR) technologies to generate, gather
and apply the type of frequent meter data promised by smart metering.
Itron Solutions
Itron’s ERT, electricity metering, automated meter reading products, and meter data management software all
support smart metering.
Related Terms
Advanced Metering Infrastructure, Fixed Networks, Mesh Networks, Solid-State Meters, Two-Way Networks
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Common Ground on Common Industry Terms
Solid-State Meters
Definition
Utility meters that rely on solid-state circuitry, rather than mechanical and electromechanical technology, to measure
energy usage and generate metering data more accurately and reliably.
Relevance
The mechanical and electromechanical technology underlying today’s utility metering is essentially 19 th century
technology. As meter populations age and utilities examine their ever-changing business environment, the financial
and customer benefits of applying solid-state circuitry technology to metering become more appealing.
Best Fit
Solid-state metering currently fits best with electricity metering. In metering gas, solid-state technology appears in
equipment to compute temperature and pressure variances in reading gas volumes. For water providers, solid-state
technology remains a newer development. Solid-state metering fits well with both new meter purchases and
replacing aged meter populations for increased accuracy.
Real World
Solid-state metering for electricity is used around the world in a variety of settings with a variety of customers. The
electricity marketplace has already transitioned from electromechanical to solid-state meters for more complex
applications such as metering for commercial and industrial customers and transmission and distribution metering.
Solid-state electricity metering at the residential level is gaining significant penetration. In 2003, the domestic solidstate meter market totaled $379 million. It’s projected to grow at an annual rate of 3.5% through 2010.
Itron Solutions
Itron is a market leader in solid state single-phase electricity metering, having shipped over 13 million units for a
variety of different AMR and non-AMR metering applications. Itron CENTRON® and SENTINEL® solid-state
meters lead the electricity metering market thanks to the advantages of solid-state architecture, reliability and lowcost manufacturing. These meters read more accurately, record lower levels of energy consumption, resist
tampering, and communicate with various automatic meter reading technologies.
Related Terms
Net Metering, Smart Meters
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Common Ground on Common Industry Terms
Meter Data Acquisition Terms
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Common Ground on Common Industry Terms
Advanced Metering Infrastructure (AMI)
Definition
A comprehensive utility metering and communications system built on bi-directional communications and open
standards, and offering functionality beyond AMR such as demand response and integrated turn on/off.
AMI consists of four main components:
 A smart meter able to collect and store electricity interval data for its own service type plus interface with
and collect and store data from other devices such as other meters and home gateways. It can also initiate
and respond to two-way communications with the utility.
 A home gateway device able to collect data from, communicate with and control various energy-using
appliances throughout the home such as air conditioners and hot water heaters. A home gateway also has
two-way communications with the utility.
 A data collection network that provides bi-directional communication of data and commands between the
home and the utility. The collection network can be publicly or privately owned and can operate using open
and proprietary standards.
 An enterprise meter data management (MDM) system that provides a single, scaleable repository for
metering-based data along with standard interfaces to other utility systems such as CIS, OMS, GIS, and
workforce management.
AMI systems also support advanced capabilities such as load control, Time-of-Use and Critical Peak Pricing, and
outage and restoration reporting.
Relevance
Energy markets such as Ontario and California have begun programs known colloquially as AMI, without a clear
definition for AMI. Additionally, regulatory bodies in these markets and others are applying pressure to evaluate and
adopt AMI systems as ways to reduce demand and increase reliability and customer service. Many metering, AMR,
and utility software companies label their current products as AMI without a clear definition of what this means.
Best Fit
Several factors need to align to make AMI a best fit for a utility. The utility must serve a market sufficiently large
enough to bear the cost of implementation. The regulatory climate in the market needs to support recovery of the
costs required to implement AMI. Most markets promoting investment in AMI are experiencing energy supply
and/or delivery system constraints that warrant implementation of AMI capabilities such as load control and outage
reporting. As with many things, what is considered advanced today will become more standard as time progresses.
Real World
Utilities such as Pacific Gas & Electric, Portland General Electric and San Diego Gas & Electric have already
released requests for quotation on AMI systems. Utilities in Ontario are also exploring AMI initiatives. With every
request for quotation or proposal, the definition and perception of AMI shifts.
Itron Solutions
Itron already offers fixed networks built on open standards that communicate with a wide variety of public access
networks. Itron will be enhancing its line of solid-state electricity meters and network architecture to support the bidirectional communications required of AMI systems. Itron also already offers the advanced software that enables
many of the benefits offered by AMI.
Related Terms
Advanced Network, Critical Peak Pricing, Demand Response, Fixed Network, Interval Data Collection;
Load Control, Meter Data Management, Open Standards, Smart Metering, Two-Way Networks
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Common Ground on Common Industry Terms
Advanced Network
Definition
Advanced networks possess the flexibility to communicate using multiple protocols and communications networks.
These networks have standardizations of technologies to expand the capabilities of emerging communications
standards.
Relevance
Utility deployments of various networks continue to grow, as does the definition and deployment of network
communication technologies. It becomes inevitable and desirable to make various networks work with various
communication technologies.
Best Fit
Advanced networks work best in places where choices exist for communication methods. This tends to be more
developed urban and suburban areas.
Real World
Large utilities that have a variety of needs within their service areas and a variety of communication technologies
available to meet those needs tend to be the users of advanced networks.
Itron Solutions
The Fixed Network collection system communicates between the collector unit and the FN Collection Engine using
a wide area network. This can be a public network, such as an IP-based cellular network, or a private network
operated by the utility. Multiple network communication paths can be configured as one system.
The Fixed Network supports multiple IP-based WAN communication options such as:
 GPRS
 PSTN (Public Switched Telephone Network)
 Ethernet
 Fiber optics
 iDEN
 PCS
 BPL
 Private
Itron products and solutions such as ServiceLink, C&I Network, Gas C&I Network, MV-90 xi, Residential Energy
Management and load control/curtailment all make extensive use of numerous advanced networks.
Related Terms
Fixed Network, Mesh Network
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Common Ground on Common Industry Terms
Broadband Over Power Line (BPL)
Definition
Broadband is a type of data transmission in which a single wire can carry several channels at once. Cable TV, for
example, uses broadband transmission. Electricity providers can use BPL technology to transmit data over the power
lines that they already have in place, by using a system of signal injectors, repeaters, and extractors that avoid
interference at the distribution transformer. The frequency of BPL signals is much higher than that of traditional
Power Line Carrier systems.
Relevance
Utilities are looking to maximize the return on investments in infrastructure. Regulators are looking to provide more
services to consumers. Consumers continue to demand and use increasing levels of power and data services. These
two forces are driving increased interest in broadband over power line (BPL) solutions.
Best Fit
BPL provides utilities with an opportunity to leverage their existing investment in power lines. By partnering with
an Internet service provider, they can offer broadband Internet access to customers through a separate device on the
customer’s premise. (Providing broadband communications through the electricity meter is not currently
economical.) Regulators are hopeful that BPL can also help bring broadband Internet access to rural customers who
are currently underserved or ignored by more traditional broadband Internet providers such as telephone and cable
companies.
Real World
Many IOU’s are considering what BPL can do for their utility and are interested in leveraging this technology. Duke
Power is one of many utilities that are engaged in BPL pilots. Cinergy provides commercial BPL to end use
customers. With the Cinergy system, customers can receive high-speed Internet access by plugging a small modem
into nearly any electrical outlet in their home. However, commercial viability for BPL has not yet been proven.
Itron Solutions
Itron’s fixed network is a flexible, scalable solution designed to meet utility needs, including the ability to utilize
BPL to return or “backhaul” meter data from the network to the utility head-end system. Itron meters do not have
BPL capability at this time.
Related Terms
Power Line Carrier, Two-Way
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Common Ground on Common Industry Terms
Fixed Network
Definition
A permanent, non–mobile system typical composed of meters, transmitters/receivers, communication systems, and
host system. Fixed networks can be used for automatic meter reading (AMR) plus other relevant applications. Data
is collected from a given population of meters without dispatching meter readers or vehicles. Network
communications technology varies between networks and network manufacturers.
Relevance
Through regulatory and competitive pressures, utilities are being pushed to provide more services, more savings,
and more efficiency in the delivery and use of energy and water. Fixed network technology can generate, gather,
and deliver the granular, more frequent data necessary to support these new efforts.
Best Fit
Fixed network technology excels in a number of areas and situations for residential, C&I, and sub-metering data
collection. It’s fair to say that most, but not all, fixed network technologies are harder to cost-justify in sparsely
populated areas. (Fixed networks that transport electricity metering data over existing power lines are the costeffective exception in sparsely populated areas.) Fixed Network deployments are also driven by market and
regulatory changes enabling retail competition, customer choice among energy providers, time-sensitive pricing,
demand response, etc.
Real World
Fixed network technology currently serves primarily electricity and water utilities, and large electricity, gas and
water consumers. Different kinds of networks are appropriate for different business needs including degree of meter
access, frequency of data, data collection requirements, level of customer service, and dynamic or time-sensitive
pricing. Different customer types and densities are best served by different network technologies. Radio frequency
(RF) networks, including mesh networks, work best with dense customer populations. Areas with few electricity
customers can be served with PLC fixed networks. C&I customers, low in number but high in consumption and
value, justify the higher cost for full two-way communication.
Itron Solutions
Business drivers should determine if a fixed network is necessary. One size does not fit all. Frequently, a hybrid
solution is most appropriate. Itron provides several fixed network solutions: Fixed Network 2.0, Water Fixed
Network, C&I Network, and Gas C&I Network. In addition, MV-90 xi gathers data over a variety of communication
systems.
For some organizations, mobile AMR will often be the right solution for a given set of business drivers. Mobile
collection also provides a low-cost starting point for eventual migration to a fixed network.
Related Terms
Advanced Metering Infrastructure, Advanced Network, Mesh Network, Power Line Carrier, Two-Way Networks
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Common Ground on Common Industry Terms
Head-End System
Definition
The head-end system receives the stream of meter data brought back to the utility by an AMR system. Head-end
systems may perform a limited amount of data validation before either making the data available for other systems
to request or pushing the data out to other systems. Head-end systems may also perform a limited set of data
management functions for such activities as route management, outage detection, and on-demand reads.
Relevance
As utilities acquire or expand AMR capabilities, they need systems to accept the increased stream of meter data
coming in. Many AMR vendors say that they offer a head-end system, but not all vendors or systems are equally
proficient.
Best Fit
A head-end system works best as part of an AMR data chain, especially if it passes received data on to a full-fledged
meter data management system.
Real World
The numerous utility customers using mobile or fixed network AMR solutions have a head-end system for receiving
meter data.
Itron Solutions
Itron’s Network Collection Engine is one example of a head-end system for AMR solutions. Itron’s handheld and
mobile meter reading systems including MV-RS, Premierplus4, and Integrator are other examples of head-end
systems.
Related Terms
Interval Data Collection, Meter Data Management
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Common Ground on Common Industry Terms
Interval Data Collection
Definition
For purposes including load research, demand response and on-demand reads, meter data is frequently collected in
hourly or even 15-minute intervals. Short-term storage of this interval data takes place before the system
communicates the data to the utility. In general, interval data can be collected at the meter, or at an intermediary spot
such as the fixed network collector unit that reads the meter’s output. Finer resolution of data in smaller time
increments requires communications systems that can transmit the data without bogging down.
Relevance
Interval data – that is, data collected in frequent time intervals – can pile up quickly enough to make its collection
and storage a major requirement of AMR systems, and a major decision point for AMR technology producers and
consumers alike. This is especially true where data from multiple collections systems need to be brought together for
a single utility or activity.
Best Fit
Interval data collection fits best in systems where customers are collecting frequent data to support additional
services and functions such as outage detection, load control, forecasting, distribution system optimization, various
time-differentiated rates, and customer choice or retail competition.
Real World
Myriad solutions exist for collecting interval data, especially for C&I electricity customers. Communications
systems servicing interval data collection must be robust enough to transmit large quantities of data.
Itron Solutions
Itron solutions use several methods of collecting interval data. Itron fixed network solutions collect interval data
from Itron standard single phase or polyphase solid-state meters through the use of our interval data message (IDM)
protocol and passes this data to the collector unit. Itron electric and gas C&I network solutions store the interval data
at the meter before delivering it to the head-end system. MV-90 xi collects interval data directly from commercial
and industrial metering points.
Related Terms
Head-End System, Meter Data Management
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Common Ground on Common Industry Terms
Mesh Network
Definition
Full mesh topology occurs when every node has a circuit connecting it to every other node in a network. Full mesh
is very expensive to implement but yields the greatest amount of redundancy, so in the event that one of those nodes
fails, network traffic can be redirected to any of the other nodes.
Relevance
As utilities become more interested in AMR and fixed network technologies, they are becoming educated in matters
of network topology. One topology used with fixed network AMR, the mesh network, is receiving attention because
of some inherent benefits including redundancy. It’s useful to utilities and regulators to understand the mesh
topology and its characteristics, as well as those who seek a “plug and play” solution. Mesh networks deliver a high
level of redundancy, but with increased redundancy also comes increased signal latency, data management, and
required bandwidth.
Partial mesh topology is less expensive to implement and yields less redundancy than full mesh topology. With
partial mesh, some nodes are organized in a full mesh scheme but others are only connected to one or two nodes in
the network.
Best Fit
Full mesh is usually reserved for backbone networks, or networks with fewer nodes. Partial mesh topology is
commonly found in peripheral networks connected to a full meshed backbone.
For residential metering of electricity, mesh technology works best in areas with dense meter populations.
Real World
CellNet (Utilinet MESH), Elster (EnergyAxis) and Tantalus sell mesh network AMR collection systems to a few
electric utilities with fairly dense service areas.
Itron Solutions
Itron has many years of experience with Mesh Network Technology. Itron’s Electric C&I Network is a mesh
network.
Related Terms
Advanced Network, Fixed Network
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Common Ground on Common Industry Terms
Power Line Carrier (PLC)
Definition
Communication of meter data and other utility system data through power lines. PLC technology can be part of twoway systems.
Relevance
PLC systems offer electricity and, to a limited extent, combination utilities a way to collect data and communicate
using their existing infrastructure. Using existing infrastructure can reduce overall data and communication costs
and potentially simplify implementation of fixed network AMR. In some cases, data communications are slower and
don’t support some advanced functionality. Understanding the strengths and limitations of PLC technology is crucial
in designing utility information systems. PLC is not the same as Broadband Over Power Line (BPL).
Best Fit
PLC systems excel in areas with a lower density of electricity customers, particularly rural areas and areas where
wireless communications are unavailable or prohibitively expensive to install. It can also be suitable for a backhaul
channel. While technically feasible, PLC systems for water and natural gas metering have no significant
deployments. PLC systems are not as useful in cases where utilities frequently need high volumes of data.
Real World
Hundreds of rural electric cooperatives use PLC systems for meter reading. Investor-owned utilities often use PLC
systems to read meters in rural portions of their service areas. In Europe, the number of customers per transformer is
much greater than in the U.S. Thus, PLC systems can be less expensive, per customer, than deployments in the U.S.
Itron Solutions
Itron believes PLC is a proven AMR technology that serves the niche of low-density, predominantly electric AMR
and load control applications. PLC technology can be combined successfully with other AMR technologies to
provide a full AMR solution for those utilities serving a range of customer densities within their service area.
Related Terms
Broadband Over Power Line, Two–Way
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Common Ground on Common Industry Terms
Real-Time Data
Definition
Real-time or near-real-time data collection is the ability to collect data automatically on demand, and have the data
delivered and analyzed quickly enough to effect monitoring and control decisions. This can be data directly
collected from the meter (real-time) or logically derived from data in the database (near-real-time). Real-time or
near-real-time data collection would likely be a key component of so-called “Smart Grid Technology.”
Relevance
Electricity cannot be stored in the same way that water or natural gas can be. It must be produced, transmitted and
consumed in real time. Therefore, it can make sense to monitor and measure electricity consumption in real time or
nearly real time.
Best Fit
Real-time and near-real-time data is used for advanced functionality such as end user energy management, demand
response and load control, wholesale and power exchange transactions, real-time price and index price products in
deregulated markets, T&D system monitoring, demand rates, time of use analysis, and forecasting functions.
Real World
Some fixed network technologies meter data collection systems can provide real-time or near real-time data
electricity consumption. Near-real-time data includes SCADA and weather data that may be updated daily, hourly, or
even by the minute. Curtailment programs for C&I customers are an ideal application of near real-time data, as are
real-time price rate and time of use rate structures.
Itron Solutions
Itron solid-state meters and ERT modules, in conjunction with fixed network AMR, can provide near real-time data.
Itron meter data management tools such as Enterprise Edition and MV-90 manage the volume of data generated in
near-real time. C&I Network, Gas C&I Network, MV-90 xi, and Curtailment Manager all deliver near real-time
data.
Related Terms
Interval Data Collection, Meter Data Management
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Remote Disconnect / Connect
Virtual Disconnect / Connect
Definition
Disconnecting and reconnecting a customer’s electrical service without accessing the customer’s premises or
sending a service vehicle into the field. A hard disconnect — that is, cutting off power to a premise by throwing a
physical switch — can be performed remotely, but requires additional specialized equipment at the meter. A virtual
disconnect — that is, obtaining an on-demand meter read at the time a premise is vacated or occupied — can be
performed remotely through fixed network AMR systems. Virtual disconnect can also include monitoring of any
consumption that should not be occurring after disconnect. In addition, some utilities are effectively utilizing mobile
AMR systems to perform off-cycle, final reads associated with move-ins and move-outs.
Relevance
Interest in performing remote and virtual disconnects is generally driven by the desire of utilities to manage revenue
assurance issues in a cost-effective manner. Also, this capability would keep utility employees safer from hazards on
a customer’s premise.
Best Fit
Areas of high account turnover, such as apartment complexes, areas around college campuses, and premises are
frequently delinquent in paying for services. Also, utilities with many areas where on-site collection is considered
dangerous may seek remote disconnect capability. Remote disconnect and connect can also present an alternative to
pre-paid metering.
Real World
Few utilities have deployed or are using hard disconnect equipment. Regulatory and consumer protection/safety
issues limit the implementation of remote hard disconnects. In addition, the necessary equipment represents a
significant cost. On the other hand, virtual disconnects cannot solve the problems associated with unpaid bills.
Itron Solutions
Hard disconnect is needed only for a very small percentage of the population, and carries with it significant risk to
the utility due to consumer safety and regulatory concerns.
Virtual disconnect can be done via fixed networks that can perform off-cycle reads. Mobile AMR also provides a
viable solution for virtual disconnect, by virtue of off-cycle read routes.
Itron solid-state electricity meters do not support hard disconnect at this time.
Related Terms
Pre-Paid Metering, Two-Way
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Two-Way Networks; Two-Way Systems;
Two-Way Communications
Definition
The ability to send and receive signals in both directions between the head end and the endpoint of an automated
meter-reading system. In particular, the ability for either end of an automated meter-reading system to respond to an
unscheduled communication initiated from the other end.
Relevance
Getting on-demand reads and sending load-control signals constitutes the bulk of many utility’s two-way
requirements. These applications are not generally widespread. Having two-way communication to all premises can
add a significant economic burden to a network’s overall costs. For networks with fewer, higher-value nodes (such
as C&I networks), two-way communications can make economic sense. As energy policy influencers such as
California and Ontario adopt programs known, at least colloquially as “Advanced Metering Initiatives” or
“Advanced Metering Infrastructure,” it becomes important to understand what type of network communications are
possible, desirable, and cost-effective.
Best Fit
Two-way networks provide the most benefit to electricity users regardless of meter or customer density. Two-way
communications can provide more value for fixed networks serving C&I customers, since typically a utility has a
much smaller number of C&I customers compared to residential, and C&I customers provide a sizeable portion of
utility load and revenues.
Real World
Examples of two-way communications include requesting and receiving on-demand meter reads, issuing remote
disconnect commands from the head end, programming the meter’s TOU rates and/or resetting the demand on
demand meters, and meters sending outage and power restoration. Polling or wake-up signals sent from the head end
to individual meters do not represent strong examples of two-way communications.
Itron Solutions
Our C&I networks do have true two-way communications between the head end of the network and C&I meters. On
the other hand, our current residential fixed network products feature bi-directional communications across the
wide-area network (WAN) between the head end and the network collector units. These are tradeoffs made
according to cost-benefit analysis. Not every device needs to communicate to other devices for a network to be
effective. This can increase the communication expense tremendously, making a network too expensive to operate.
At present, two-way communications between the head end and collector units provides most of the desired features
of a true two-way network without the extra cost of enabling two-way communications with individual residential
meters. In evaluating fixed-network AMR solutions that include two-way communications, utilities should compare
their concrete needs for two-way communications to the added cost.
Related Terms
Advanced Metering Infrastructure, Fixed Network, Load Control, Power Line Carrier, Remote Disconnect, Smart
Metering
22
Common Ground on Common Industry Terms
Unlicensed Spectrum
Definition
An unlicensed spectrum is a frequency block that does not require a license from the FCC or equivalent
governmental agency. The agency monitors wireless communication transmissions and provides permission via
licensing for each frequency used. Different frequency levels are divided into spectrum blocks. The agency
determines which spectrum blocks it requires a license for and which it does not.
Relevance
AMR systems that use radio frequency (RF) communications must comply with Federal Communications
Commission rules regarding radio frequency spectrum use. Using unlicensed spectrum for RF AMR systems reduces
costs, but has the potential downside of conflicting with other applications using the unlicensed spectrum. On the
other hand, using licensed spectrum for RF AMR systems increases the total system cost due to licensing fees.
Best Fit
Use of unlicensed spectrum works best for applications where either the chances or consequences of radio signal
conflict are minimal.
Real World
In the real world, products like baby monitors and remote garage door openers use unlicensed radio spectrum. These
devices may or may not be in the same unlicensed band as AMR devices. Usage regulations limit interference.
Itron Solutions
Itron RF AMR systems use unlicensed radio spectrum. They are designed to greatly reduce the chances of radio
signal collision.
Itron’s fixed network technology in “bubble-up” mode uses 900 MHz ISM unlicensed spectrum to communicate
between the meter module and the collector unit. The ISM band is an unlicensed, publicly owned portion of the
radio spectrum in the 900MHz, 2.4GHz and 5GHz ranges. If a utility uses Itron AMR technology in the “wakeup”
mode, the collector unit transmits wake-up tones to AMR endpoints in the licensed band between 952 MHz and 956
MHz. A license is required to broadcast wake-up tones to meter modules operating in the wake-up mode.
Related Terms
Fixed Network
23
Common Ground on Common Industry Terms
Mobile Workforce Management Terms
24
Common Ground on Common Industry Terms
Mobile Workforce Management
Definition
Mobile workforce management is a business function that covers the creation, dispatch, and tracking of work
(scheduled or not) assigned to field technicians. Mobile workforce management systems typically communicate over
wireless networks (either public or private), often combined with mapping and GPS technology for real-time status
and location tracking. Mobile workforce management automates scheduling of tasks; assignment of personnel based
on skill set, location, and availability; and optimized routing of field technicians. Mobile workforce management
also provides the ability to integrate regular activity such as meter reading with field service tasks.
Relevance
Field service work can be an expensive endeavor for a utility, especially with rising personnel costs such as health
insurance premiums. Ensuring that field work is done correctly and efficiently, the first time, saves money.
Advancements in communication and computing technologies can be applied to make the field workforce more
efficient and effective, thus saving money and providing better quality service. As the utility workforce ages, finding
experienced workers will become more difficult. Automating field service tools and management can help ensure
deliver of quality service.
Best Fit
Mobile workforce management works best with utilities that have at least 20 field workers and operate in areas
where communication infrastructure exists to support the communication necessary for staying in touch with the
field.
Real World
BC Hydro, Xcel Energy and Kootenai Electric Cooperative are three examples of utilities that take advantage of
mobile workforce management. However, mobile workforce management from multiple vendors spans a spectrum
from installing a single electricity meter to constructing a nuclear power plant.
Itron Solutions
Itron’s Service-Link mobile workforce management solution provides the tools to optimize performance of
dispatchers and field technicians. Endpoint-Link Pro helps manage the installation of meters and meter modules.
Related Terms
Performance-Based Rates
25
Common Ground on Common Industry Terms
Meter Data Management Terms
26
Common Ground on Common Industry Terms
Meter Data Management
Definition
Meter data management (MDM) is the ability to ensure the reliability of, and optimize the use of, available data. A
full-function MDM solution seamlessly combines data from multiple sources that use a variety of formats and
collection schedules.
 It supports incorporation of new data sources through creation of interfaces without requiring changes to
the existing MDM application or data structure.
 It provides for safe and efficient storage and security-controlled retrieval of data.
 It includes validation, editing, estimation, aggregation, and unit and interval conversion tools to ensure the
reliability and manage the usability of data.
 It reports and tracks data sources and versions.
 It provides advanced calculation capabilities to support functions such as time-of-use and critical peak
billing determinants.
 It enables interface to other utility systems such as customer information, outage management, work
management, and geographical information. It provides flexible and comprehensive reporting.
Relevance
Meter data is the life blood of a utility’s revenue stream. However, utilities are finding that meter data can also be
applied to transform nearly all aspects of their operations, from forecasting and system design to asset management
and regulatory compliance. As the amount and importance of meter data grows, developing tools and methods for
leveraging the value of that data becomes critical.
Best Fit
MDM finds its best fit in utilities that are collecting meter data frequently and are seeking to apply that data widely
throughout their operations. However, all utilities need some form of management approach for meter data.
Real World
MDM spans all sizes and types of utilities.
Itron Solutions
Itron provides a range of MDM solutions. Itron Enterprise Edition offers an enterprise-wide meter data management
solution for interval, register, and event data, while Itron MV-90 xi manages interval data from complex metering
devices.
Related Terms
Advanced Metering Infrastructure, Head-End System, Interval Data Collection
27
Common Ground on Common Industry Terms
Meter Data Applications Terms
28
Common Ground on Common Industry Terms
Leak Detection
Definition
Leak detection combines data from meters installed at the customer’s premise and on the water distribution system
with software that analyzes the data from the meters.
Relevance
Water utilities can lose three, four, five percent of their water — or more — to leaks in their distribution system.
Water lost to leakage is money lost, as well as a waste of a precious resource. Aside from the lost revenue of water
that goes unbilled, there’s also the cost of purifying and pumping water that is never delivered to a customer. But
with so much of a utility’s distribution network out of sight underground, finding leaks can be difficult and
expensive.
Best Fit
Leak detection provides the best return on investment for water utilities operating large and/or aging distribution
systems.
Real World
There are many active and passive devices on the market to help end-users detect water leaks. Utilities have some
tools, such as geophones, to help detect leaks. However, there are few system-wide leak detection tools currently
available to utilities that draw on metering-based consumption data to detect leaks.
Itron Solutions
Itron’s water meter endpoints for Water Fixed Network include the ability to check for periods of minimal flow.
Flow levels and time frames for checking are programmable. If water flow never drops, that indicates constant flow
and a possible leak.
Itron also provides a Leak Analysis software solution to water providers. This software compares the water flow at
distribution nodes to the water metered at premises served by the distribution node, and identified discrepancies in
the amounts.
Related Terms
Outage Detection and Restoration, Revenue Assurance
29
Common Ground on Common Industry Terms
Load Forecasting
Definition
Load forecasting is the estimation of electricity or natural gas consumption at some future time. Forecasts can
predict demand minutes ahead to years into the future.
Relevance
Forecasting future need for electricity or natural gas is a cornerstone to reliable and affordable energy supplies.
Forecasting helps ensure resources are fully available and utilized. This is especially important for electricity, which
cannot be stored the way natural gas can be. Forecasting helps utilities avoid purchasing extra energy on spot
markets, and building additional generation capacity to meet peak demand situations. It can also help utilities reduce
or eliminate penalties associated with the settlement process. With forecasting, utilities can schedule maintenance of
infrastructure based on forecasted load.
Large energy consumers can use forecasting to manage their energy costs in situations where wholesale prices are
passed along.
Best Fit
It’s hard to think of a utility or other energy-related entity that can’t, or doesn’t, benefit from some aspect of
forecasting. Perhaps the only barrier is having enough resources, staff, and customers to manage the complexity of
forecasting solutions and derive the value from them.
Real World
Forecasting plays myriad roles in the real world: capital expenditure planning, system design, peak load
management, revenue planning, regulatory compliance, system and market operation, customer demand
management, seasonal forecasting, and more.
Itron Solutions
Itron is the industry leader in forecasting solutions and expertise. Itron forecasting solutions are built on the
MetrixND® forecasting engine. Itron’s solutions include short-term forecasting, long-term forecasting, retail
forecasting, delivery point forecasting and financial forecasting. Itron also provides complete forecasting consulting
services.
Related Terms
Load Profiling, Revenue Forecasting
30
Common Ground on Common Industry Terms
Load Profiling
Definition
Charting the hourly or sub-hourly pattern of energy use for a customer or class or customers. The resulting chart is
also called a load shape. Load profiling is also known as load research.
Relevance
In a deregulated energy market, the public utility commission may require utilities to perform load profile reads on a
certain number of customers in each customer class. This load profiling data is needed to determine rates and usage
for other customers in the same customer class. Information from this research can also support other activities such
as forecasting and distribution asset optimization.
Best Fit
Load profiling makes the most sense for utilities that are looking for statistical insight into their operations and
customers.
Real World
A large number of energy providers of various sizes purchase or perform load profiling to help them run their
business.
Itron Solutions
Itron provides the eShapes load profile package for industrial and large commercial customers. Itron can customize
load shapes to meet utility’s needs. Fixed network data can supplement or replace traditional load profiling meters.
MV-90 xi also performs load profiling.
Related Terms
Load Forecasting, Revenue Forecasting
31
Common Ground on Common Industry Terms
Outage Detection and Restoration
Definition
Outages can be detected directly with equipment that supports a “last gasp” messaging capability to notify the utility
that the meter or network collector has lost power. Outages can also be inferred by software analyzing data received
from fixed networks.
Inferred outage detection, on the other hand, is the ability to receive and analyze data returned from meter reading
systems to determine that a power outage has occurred. Using software to logically infer the occurrence of an
outage can provide a significant savings compared with installing equipment that can physically identify that an
outage has occurred.
Outage restoration can be signaled two different ways. The meter can send a specific signal stating that the power
has been restored, or the utility head-end can infer that the power has returned when it again receives a signal from
the meter.
Relevance
Electric utilities are under increasing pressure from consumers and regulators to provide reliable service. Ironically,
many utilities don’t learn about a service outage until a customer calls them with the news. Detecting outages
automatically would speed outage restoration, increasing customer service and revenues. Customers also lose
productive and inventory when they lose power. Many utilities have reliability standards that they must comply with
and must report on. For some, their reliability performance can be rewarded or penalized.
Best Fit
Outage detection is paramount for utilities with severe weather that disrupts power, compliance standards and
performance-based rates, or a high cost for outages due to equipment failures. Also, utilities with high field service
costs to investigate possible outages can save money with outage detection. Outage detection by inference works
best with electric utilities that have the systems to collect frequent meter data.
Real World
Xcel Energy uses outage detection solutions to speed detection and restoration. Kansas City Power and Light uses
last-gasp from meters for outage detection. Dominion uses mobile AMR collection as an aid to detect power
restoration after an outage.
Itron Solutions
Itron Fixed Network 2.0 includes the ability to infer power outage from loss of meter signal. The Itron CENTRON
and SENTINEL meters and network collectors support a “last gasp” message informing the head-end system that the
meter has lost power.
Related Terms
Fixed Network, Leak Detection
32
Common Ground on Common Industry Terms
Demand Response and Load Management Terms
33
Common Ground on Common Industry Terms
Demand Response
Definition
Utility customers limiting or cutting energy demand based upon an agreement with the utility. Demand response can
take several forms. Curtailment programs and distributed generation with large C&I energy users are some forms of
demand response; critical peak pricing and time-of-use rates for residential customers are others.
Relevance
Utilities are finding that reducing demand can be an easier and more affordable way to balance energy supply and
demand than building generating plants, thereby saving money while continuing to supply reliable power.
Best Fit
Demand response programs work for utilities with peak load issues seeking economical ways to balance supply with
peak demand, and increase system reliability. Utilities undertaking demand response programs should have the
advanced metering ability needed to frequently measure changes in energy use.
Real World
MidAmerican Energy operates an award-winning curtailment program with many of its C&I customers. Its demand
response program can deliver more than 100 MW of demand relief. California State University at Long Beach
operates a successful demand response as a way to control energy costs.
Itron Solutions
Itron’s Curtailment Management solution provides the tools for one type of demand response. Itron forecasting and
complex billing solutions support time-of-use rates, another form of demand response.
Related Terms
Advanced Metering Infrastructure, Critical Peak Pricing, Distributed Generation, Load Control, Load Forecasting,
Price Response
34
Common Ground on Common Industry Terms
Load Control
Definition
Having and exercising direct control over appliances or equipment at a customer’s premise for the purpose of
lowering peak demand. When a utility has control over equipment, it typically does not receive a signal confirming
that its load control command has been received and executed. C&I customers can also have controls in their
buildings to help control load.
Relevance
Lots of little changes can add up to a big shift. Utilities seeking to balance supply with peak demand, and improve
system reliability, can make small changes to lots of power-consuming devices in order to lower demand. Adjusting
everyone’s thermostat by two degrees for two hours can improve system reliability much more quickly and costeffectively than building a new power plant.
Best Fit
Load control works best for utilities whose service area includes many devices equipped to receive and respond to
load control signals.
Real World
Dakota Electric is just one example of a utility using direct control of customer’s air conditioning to control load
during peak demand periods. Many utilities have installed load control systems over the past 20 years. However,
since most of these systems are only one way, it can be difficult to tell which nodes are responding and which are
not and what the aggregate effect of the load control initiative might be.
Itron Solutions
Itron’s energy forecasting solutions can help pinpoint times when load control can help balance supply and demand.
Related Terms
Advanced Metering Infrastructure, Critical Peak Pricing, Demand Response, Load Forecasting, Price Response
35
Common Ground on Common Industry Terms
Price Response
Definition
Using pricing structures that vary more frequently than the standard, single-price or block rate tariff to influence
energy consumption. Examples include TOU rates, critical peak pricing and real-time pricing.
Relevance
Price can be a motivating factor in changing a customer’s energy consumption habits. Utilities are finding that
charging higher rates for energy during periods of peak demand can help lower demand. This helps with both system
reliability and cost recovery.
Best Fit
Price response works best for utilities that have the means to frequently communicate with, and measure the energy
consumption of, their customers.
Real World
Georgia Power runs a very successful real-time pricing program for C&I customers. California has recently
concluded pricing experiments that have validated the efficiency of price response programs for both commercial
and residential customers. A number of utilities use Itron’s Customer Care product to provide their large C&I
customers access to price indexes such as PJM and NYISO.
Itron Solutions
Itron’s energy forecasting solutions can help pinpoint times when load control can help balance supply and demand.
Price response programs require interval meter data and an ability to manage that data, including algorithms to
match meter data to specific time periods for billing.
Related Terms
Advanced Metering Infrastructure, Critical Peak Pricing, Demand Response, Load Control, Load Forecasting, Price
Response
36
Common Ground on Common Industry Terms
Time-Of-Use (TOU) Pricing / Critical Peak Pricing / Real-Time Pricing
Definition
These three terms refer to different ways of varying the price of electricity according to the time when it is
consumed.
 Time-of-use pricing involves having a set schedule of electricity prices tied to the time of day or the day of
the week (weekday versus weekend and holiday).
 Critical peak pricing involves utilities forecasting a period of peak demand and announcing a short-term
price increase to coincide with energy used during that peak period.
 Real-time pricing involves varying the price of electricity in near-real time according to the balance of
supply and demand.
Relevance
Electricity cannot be stored the way water and natural gas can. Therefore, the time that electricity is used can be
important. When demand rises beyond a certain point, there may not be reserves to draw on to meet demand.
Utilities can raise prices during high demand times to recover costs and to help lower demand. These pricing
mechanisms provide an incentive to use energy when costs are low and demand for energy can be met. They are also
a way to postpone or avoid investing in additional power generation.
Best Fit
Varying price by time of energy use works best for utilities seeking to lower peak demand. For real-time pricing and
critical peak pricing, utilities need a way to frequently communicate with and measure the power consumption of
electricity customers. Thus, these pricing arrangements usually focus on C&I customers.
Real World
In 2003, Southern California Edison and Pacific Gas and Electric were required by the CPUC to implement a critical
peak pricing program for all customers with greater than a 200 KW demand. Niagara Mohawk in New York uses
real time pricing with their large C&I customers.
Itron Solutions
Itron’s fixed network solutions provide the frequent data collection necessary to support these pricing structures.
Itron Customer Care and MV-PBS handle the complex billing requirements of varying rates. Itron forecasting tools
and load research can help set times and prices for varying electricity rates.
Related Terms
Advanced Metering Infrastructure, Demand Response, Load Control, Load Forecasting, Price Response
37
Common Ground on Common Industry Terms
Delivery System Management Terms
38
Common Ground on Common Industry Terms
Compatible Units
Definition
In the world of designing delivery systems, a compatible unit arrangement organizes a utility’s standard components
in a hierarchical tree structure to group commonly used components and associated attributes in a logical and usable
way. For example, parts and labor information can be combined to create material units; material units and
associated properties (e.g., component strength, electrical properties, etc.) can be combined to form assemblies;
assemblies and dimensions (e.g., x, y, z relative to pole top) can be combined into construction units; construction
units can form structures.
In a well-defined compatible unit arrangement, the designer spots or selects high-level units or structures, and the
underlying components are automatically incorporated in the design. Elements in the compatible unit structure can
be associated with engineering, component, and labor cost properties to automatically determine design costs and
create parts lists, construction packages, and crew requirements. With engineering properties associated with
compatible units, the system automatically identifies factors such as the voltage, strength, framing geometry, and
class of the unit.
Relevance
Distribution design can involve specifying hundreds of different parts. Transforming lists of parts into real-life
structures that function optimally in all field conditions requires as much organization as art.
Best Fit
Utilities looking to standardize, replicate, and optimize designs.
Real World
CenterPoint Energy is one of many customers who benefit from using compatible units in distribution design.
Itron Solutions
Itron offers a full line of distribution design tools that offer compatible unit capabilities.
Related Terms
Design Optimization
39
Common Ground on Common Industry Terms
Design Optimization
Definition
Design optimization is the ability to apply the power of an engineering calculation engine to every distribution
design project to determine the best-cost combination of components. Through design optimization, designers can
compare alternative design options and select the best-cost option that meets reliability requirements.
Relevance
Distribution design can be a distributed process for utilities. Individual distribution designers can have their own
idiosyncratic approach to solving problems. Standardization can help with reliability, regulatory compliance, costs,
and more.
Best Fit
Design optimization works best with utilities that have multiple distribution designers who could benefit from
standardization, automation and optimization.
Real World
CenterPoint Energy is among many utilities using design optimization for distribution.
Itron Solutions
Itron offers a full time of distribution design solutions from the full-featured LD-PRO to the new and nimble
Distribution Staker.
Related Terms
Compatible Units
40
Common Ground on Common Industry Terms
Distributed Generation / Distributed Resources
Definition
The ability to generate energy at dispersed points within an energy grid or energy transmission system.
Relevance
Technology is allowing more users of energy to become producers of energy as well. Utilities, as the operators of the
energy distribution system, need to understand where these distributed generation resources are located and how
they affect power distribution and consumption. Technology is also allowing for small, cost-effective power
generation operations located closer to the point of consumption. Utilities also need to know what generation
capacity exists is case additional capacity needs to be online.
Best Fit
Distributed generation works well for those commercial and industrial operations that can turn waste or by-products
into energy. It also works for areas with peak load issues where customers can be given economic incentives to take
load off the system during peak times.
Real World
Many dairy and hog farm operations generate power using animal waste as a fuel source.
Itron Solutions
Itron’s EEM Suite provides tools for managing distributed generation.
Related Terms
Net Metering, Smart Grid
41
Common Ground on Common Industry Terms
Distribution Asset Optimization (DAO)
Definition
Applying data analysis to optimize the deployment, maintenance and reliability of electricity distribution assets such
as transformers.
Relevance
Distribution costs rank near the top in utility budgets. Failures in the distribution system can disrupt service to many
customers simultaneously. It makes sense to optimize distribution assets to get peak performance for the lowest
possible cost. Without DAO, utilities often spend extra money to maintain overly-conservative capacity margins in
their distribution system. DAO can also help utilities identify and fix reliability risks before they turn into outages.
Best Fit
DAO fits best with utilities that need improvements in their distribution system and have already made investments
in meter data collection, design systems, GIS systems, and outage management systems. This is especially true for
utilities that are experiencing a high percentage of equipment failures.
Real World
Xcel Energy and Oklahoma Gas & Electric are two utilities that have benefited from DAO. In their first year of
DAO implementation, Xcel Energy saw a 25% reduction in the occurrence of outages due to equipment failures and
an accompanying 5% reduction in customer calls.
Itron Solutions
Itron Distribution Asset Analysis (DAA Suite) is a decision support system that adds strategic value to investments a
utility has already made in meter data collection, design systems, GIS systems, outage management, and SCADA
data systems. DAA Suite combines existing data from these arenas into a precise, comprehensive, and predicative
system that can increase asset utilization and reliability while reducing capital spending.
Related Terms
Design Optimization
42
Common Ground on Common Industry Terms
Gateway
Definition
A device that handles communications between the utility and devices on the customer premise such as thermostats,
water heaters, and pool pumps. Gateways offer two-way communications, and often the ability for customer to
override the utility’s load control signal. Gateways overcome the limitations of one-way load control by sending
confirmation signals back to the utility. Web-based software allows customers to see the status and effects of load
control actions.
Relevance
As utilities investigate exercising direct control over devices in their service area as a way to manage consumption,
they are finding that the communication burden can be more than even the smartest meter can or should control on
its own. A separate device to handle these communications could be advantageous.
Best Fit
Deploying gateways makes the most sense for utilities serving fairly large populations and seeking to temporarily
control consumption as an alternative to increasing generating capacity.
Real World
Many vendors and utilities offer gateway products to help educate consumers about use and to help control devices.
However, gateways can be expensive, costing $450 - $600 per premise.
Itron Solutions
Itron does not provide gateway appliances. However, Itron solutions interface with gateways, and can provide the
data needed to drive gateways and the decisions to restrict consumption.
Related Terms
Demand Response, Load Control, Smart Metering, Two-Way
43
Common Ground on Common Industry Terms
LMP (Locational Marginal Pricing)
Definition
Locational marginal pricing (“LMP”) is a market-pricing approach used to manage the efficient use of the electric
transmission system. Specifically, the Federal Energy Regulatory Commission (FERC) and others recommend LMP
as a way to efficiently price electricity in areas where transmission is “congested,” or constrained due to restrictions
on the transmission system that prevents the least expensive supply of energy from flowing to that area. As a result,
in those areas electricity costs more than it should.
Marginal pricing postulates that the market price of any commodity should be the cost of bringing the last unit of
that commodity - the one that balances supply and demand - to market. In electricity, LMP recognizes that this
marginal price may vary at different times and locations based on transmission congestion. With LMP, market
participants will know the price at hundreds of locations on the system.
LMP provides market participants an accurate signal of the price of electricity at every location on the grid. These
prices, in turn, reveal the value of locating new generation, upgrading transmission, or reducing electricity
consumption through demand response programs.
Relevance
As regionally-based entities such as Regional Transmission Organizations (RTOs) and Independent System
Operators (ISOs) come to manage more and more of the U.S. electricity transmission grid, the question of how to
decide where to invest in that grid becomes paramount. In areas of the country that already have developed an RTO
or ISO, LMP serves as a means of delivering price signals to areas of transmission constraint so that investment
decisions may be made that relieve that constraint. However, LMP is not without controversy as consumers and
politicians in transmission-constrained areas will see higher electricity prices.
Best Fit
Although LMP has been instituted in most of the existing RTOs and ISOs, other regions of the country are not
convinced that pricing by individual “nodes” is the right process for them. For instance, in the West outside of
California, where population can be sparse and radial systems are the rule, LMP may not be the best solution. The
Southeast also is not convinced that this structure makes sense for them.
Real World
LMP is a reality the PJM RTO, ISO New England, New York ISO, and the Mid West ISO (MISO). The California
ISO is evolving LMP structures. Texas is considering LMP.
Itron Solutions
Itron is not directly concerned with LMP. However, Itron’s IEE meter data management system and MV-STAR
systems manage meter data for wholesale market operations.
Related Terms
Zonal Forecasting
44
Common Ground on Common Industry Terms
Performance Based Rates (PBR)
Definition
A rate-setting mechanism, typically negotiated between utilities and PUCs, which links incentive rewards or
penalties to desired performance results or targets. PBR is a form of rate regulation that provides utilities with better
incentives to reduce their costs and improve service than cost-of-service regulation. Typical PBR performance
measures include customer satisfaction, number and duration of power outages, cost reductions, investment in
conservation technology and demand side management measures.
Relevance
Utilities are often rightly concerned with the return on their dollars invested in generation, transmission and
distribution. Increasingly, customers want to know that they are getting a return on their investment as ratepayers for
publicly or cooperatively funded utilities. Measuring utility performance helps regulators and customers gauge
return on their investment.
Best Fit
Regulators who want to improve performance in a way that falls outside of the rate base. Areas with reliability
issues, low customer satisfaction or numerous complaint calls to regulatory bodies.
Real World
Southern California Edison, Bangor Hydro-Electric, and Mississippi Power are just three utilities that are currently
participating in performance-based rates.
Itron Solutions
Reliability and customer service are two common measurements used with performance-based rates. Itron’s
Distribution Asset Manager and Service-Link help improve measurable performance of service delivery and
customer service,
Several Itron products help increase reliability:
 Fixed Network automatic meter reading, coupled with outage detection, can help utilities detect outages
more quickly and thus respond to them more quickly.
 Distribution Asset Optimization helps utilities optimize distribution equipment and predict distribution
system performance under various conditions, which can increase system reliability as measured in SAIFI,
SAIDI, and CAIDI scores.
 Forecasting helps ensure an adequate power supply under anticipated conditions.
 Curtailment Management helps utilities and large energy users manage peak load, which can reduce strain
on the electrical system and increase reliability.
Several Itron products help increase customer service and satisfaction:
 Automatic meter reading increases the accuracy and timeliness of billing while eliminating the need for
meter readers to access a customer’s premise.
 Customer Care increases customer service by giving energy users information, analytics, and notification
regarding their energy use.
 Service-Link makes field service workers more efficient and responsive, helping them resolve customer
problems more quickly.
Related Terms
Customer Care, Distribution Asset Optimization
45
Common Ground on Common Industry Terms
Smart Grid
Definition
Smart Grid has come to encompass a number of desired characteristics and technologies for an enhanced power grid
in North America. Mainly, it would mean a grid that has the ability to be predictive and self-healing, so that
problems are automatically avoided. Providing the data generation and analysis necessary to build a smart grid
currently looms as a large but possibly necessary endeavor.
Relevance
The power blackouts throughout the Great Lakes region in August 2003 highlighted the increasing vulnerability of
the North American power grid. Significant investment in grid upgrades and expansion has lagged behind the rapid
growth of electricity demand. Applying available and new technologies could make the power grid more efficient
and more reliable.
Best Fit
Initially Smart Grid will find its best fit in the regional transmission arena. Heavily populated regions such as
southern California or New England will most likely see the start of limited Smart Grid functionality in the next 10
years.
Real World
Smart Grid is still largely an experimental notion, although some developments in the transmission industry presage
the coming of predictive and self-healing capabilities.
Itron Solutions
Many of Itron’s data creation, collection, management, and application technology can be applicable to
implementing Smart Grid technology, especially at the local distribution level.
Related Terms
Advanced Metering Infrastructure, Distributed Generation, Net Metering
46
Common Ground on Common Industry Terms
Zonal Forecasting
Relevance
In the absence of transmission constraints or zone-level settlement calculations, forecasting at a high level (service
territory or control area) is sufficient for scheduling energy generation facilities. When constraints are present or
when energy deliveries are tracked and settled at a finer level, then it is necessary to forecast at a more detailed
level.
Definition
Forecasting energy deliveries for a transmission zone or a delivery point (substation or city gate).
Best Fit
Operational forecasters who support generation scheduling or energy trading operations need to provide forecasts by
zone or delivery point. Transmission system planners need to understand the non-coincident peaks at substation and
feeder levels to support investment planning. Retail energy suppliers with a geographically dispersed customer
portfolio need to forecast energy deliveries by market scheduling zone.
Real World
Independent System Operators typically forecast hourly or sub-hourly loads at the transmission zone level.
Cooperatives that are not covered by full requirements contracts forecast hourly loads at the delivery point.
Transmission (and delivery system) planners who need to understand the long-term loads at the facility level
forecast monthly peaks at the substation and feeder level.
Itron Solutions
Itron MetrixIDR Retail forecasting solution supports forecasting by zone, delivery point, market segment, or
individual customer.
Related Terms
Distributed Generation
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Common Ground on Common Industry Terms
Trans-Product Terms
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Common Ground on Common Industry Terms
Open Standards
Definition
An agreed-upon method or implementation defining how part of a process, product, or solution should operate. An
open standard is made available so that any interested party or organization may provide part of an open system.
Relevance
Larger utilities often need several different AMR solutions to address different needs within their service areas.
However, all the data from those differing AMR systems still need to be used throughout utility operations. This
dichotomy leads utilities to request open systems when evaluating or specifying systems. Open systems often are
considered open by virtue of complying with one or more open standards for how the products, pieces, or
technologies within the solution will interoperate. Open systems also often have documented and accessible means,
such as programming interfaces, for modifying or extending the solution.
Note that a product, piece, or technology can be compatible with another product, piece, or technology without
being considered open. Something can be compatible without complying with an open standard or providing a
means for modification or extension.
Best Fit
Open standards fit best within complex industries or markets where multiple products or services from multiple
vendors must work together to meet customer needs. Often, a cross-industry steering committee oversees the
maintenance of and compliance with an open standard or set of standards.
Real World
Itron benefits from writing software applications that utilize the XML open standard for data transfer.
Itron Solutions
Itron does not share its standards openly with the industry at this time.
Related Terms
Advanced Metering Infrastructure, Open Systems
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Common Ground on Common Industry Terms
Open Systems
Definition
Technological solutions that consist of several products, pieces, or technologies that can be supplied by more than
one vendor. Open systems often are considered open by virtue of complying with one or more open standards for
how the products, pieces, or technologies within the solution will “interoperate.” Open systems also often have
documented and accessible means, such as programming interfaces, for modifying or extending the solution.
Relevance
Larger utilities often need several different solutions to address different needs within their service areas. Examples
could be various AMR systems to match different urban and rural customer densities or different billing systems for
residential or industrial customers. These various systems might be supplied by different vendors. However, all the
data from those differing AMR systems still need to be used throughout utility operations. This dichotomy leads
utilities to request open systems when evaluating or specifying systems.
Note that a product, piece, or technology can be compatible with another product, piece, or technology without
being considered open. Something can be compatible without complying with an open standard or providing a
means for modification or extension.
Best Fit
Open systems fit with utilities that have large enough service areas or diverse enough service needs that they require
different systems that still can work together.
Real World
Large, investor-owned utilities such as Southern Company accept that working with multiple solutions from
multiple vendors is the only way for them to service all their customers. They look for vendors and systems that can
cooperate with others and be easily modified or extended.
Itron Solutions
Itron CENTRON® and SENTINEL® meters are open systems in that they accept personality modules designed to a
published and available specification. Itron Enterprise Edition is an open system in that it has both a number of Itron
product-specific interfaces as well as published APIs for both importing and exporting data.
Many other Itron software products also have standard interfaces and published API’s.
Related Terms
Open Standards
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Common Ground on Common Industry Terms
Revenue Assurance
Definition
Assuring that revenue generation and retention is maximized at every possible point along the utility value chain. In
other words, making sure that a utility can account for, bill for, and collect on every last bit of service that they
provide. Avenues of revenue assurance include
 Efficiently distributing service, making sure that energy and water are not stolen during transmission or lost
to leakage or technical line loss.
 Securely providing service, so that users cannot steal services.
 Accurately metering delivered energy and water.
 Correctly and completely billing for services provided.
 Preventing and quickly responding to outages, thereby limiting the amount of consumption lost to outage.
 Correctly collecting and accounting for revenues from services.
 Fully complying with regulatory requirements, so as to avoid fines and penalties.
 Accurately forecasting future demand and revenues, so as to plan for the most efficient delivery of and
collection for services.
Relevance
Utilities are increasingly focused on excellent execution of the basics of providing energy and water. Doing so can
increase both top-line sales and bottom-line earnings. Industry estimates place domestic administrative loss at <2%
of revenues, technical loss at 1-3% of revenues, and commercial loss at 1-3% of revenues. In total, these sources of
loss can approach 7% of utility revenues. For any utility, and especially for utilities with revenues in the billions of
dollars, this is a large percentage and large amount of money.
Best Fit
Everyone can benefit from wringing more revenue out of their existing operations. Utilities today are very
concerned about revenue assurance as a way to ensure that they met revenue and earnings targets.
Real World
Florida Power and Light realizes millions in revenues each year by investigating stolen and unbilled services. Their
investigation of one person helping people tamper with meters uncovered up to $2.4 million of stolen energy over a
four year period. Philadelphia Water reports that they have realized $13 million in recovered revenues over four
years due to revenue assurance activities.
Itron Solutions
Nearly all Itron solutions have a revenue assurance component or contribute to assuring revenue for utilities.
Examples include:
 Solid-State Metering: more accurate measurement, plus measurement of lower voltages, means more
energy billed to the consumer.
 AMR: improved cash flow from regular collection of actual meter readings, reduced costs from eliminating
estimated reads, reduced labor costs for meter reading.
 Tamper / Leak Analysis: increased ability to collect revenue for energy and water that is generated and
delivered.
 Forecasting: increased financial performance through accurate sales forecasts, avoiding imbalance
penalties, improved regulatory compliance, and more.
Related Terms
Leak Detection, Load Forecasting, Solid-State Metering
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Common Ground on Common Industry Terms
About Itron:
Itron is a leading technology provider and critical source of knowledge to the global energy and water
industries. More than 3,000 utilities worldwide rely on Itron technology to deliver the knowledge they
require to optimize the delivery and use of energy and water. Itron delivers value to its clients by providing
industry-leading solutions for electricity metering; meter data collection; energy information management;
demand response; load forecasting, analysis and consulting services; distribution system design and
optimization; web-based workforce automation; and enterprise and residential energy management.
To know more, start here: www.itron.com
Itron Inc.
Corporate Headquarters
2111 North Molter Road
Liberty Lake, Washington, 99019
U.S.A.
Phone: 1.800.635.5461
Fax: 1.509.891.3355
Due to continuous research, product improvement and enhancements, Itron reserves the right to change product or system
specifications without notice.
Itron is a registered trademark of Itron Inc. All other trademarks belong to their respective owners. © Itron, Inc. 2006
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