Avoid Missing Out on Sophisticated Metering Systems Due to Short-Sighted Perspectives

The electric grid is on the brink of a significant transformation, as the proliferation of grid-connected devices such as smart thermostats, electric vehicles, battery storage, heat pumps, and solar panels is expected to nearly quadruple in the coming years. This revolution presents both a risk and an opportunity, and it's crucial for regulators and utilities to undertake proper planning to maximise customer benefits.

In Michigan, the Michigan Public Service Commission (MPSC) has ordered a technical conference on the future of AMI implementation, which is set to take place soon. This conference aims to inform the utilities' long-term AMI strategy and address questions like how to unlock more distributed energy resource (DER) deployments, enable virtual power plants, and improve grid reliability.

Consumers Energy and DTE, Michigan's major utilities, have submitted comments to the MPSC, stating that it is premature to consider an AMI-related performance incentive mechanism for DER integration. Regulators can help utilities answer these questions before they procure new, costly technology, ensuring that investments are prudent and serve the best interests of customers.

The Department of Energy has also recommended that significant investments in advanced metering infrastructure should involve a long-term technology and functionality roadmap. Next-generation AMI can serve as the backbone of the modern decentralized grid, mitigating risk and taking advantage of opportunities.

Laura Sherman, the president of the Michigan Energy Innovation Business Council, emphasises the importance of clear, comprehensive standards for utilities to adopt a holistic and transparent approach when planning AMI investments. This includes mandatory stakeholder engagement, detailed impact assessments on grid complexity, and requirements for adaptive, future-proof technologies.

Utilities failing to properly manage these resources could lead to significant capital expenditures and increased electricity prices. On the contrary, a well-planned AMI strategy can make the grid work better for customers by allowing device owners to coordinate their electricity usage to reduce stress on the grid and earn savings on their monthly bills. AMI with capabilities like edge computing allows utilities and customers to see in real-time how grid-connected devices impact the grid.

State regulators in Michigan and elsewhere should encourage utilities to take a holistic and transparent approach to AMI, recognising the opportunity for utilities to make prudent investments that will allow them to intelligently tap into these resources and provide clean, low-cost power and other grid services. As the electric grid grows increasingly complex, it is essential that regulators and utilities work together to ensure a smooth transition to a more decentralised, efficient, and sustainable grid.