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The Costs and Benefits of Smart Meters for Residential Customers
Ahmad Faruqui, Doug Mitarotonda - The Brattle Group, Lisa Wood, Adam Cooper - Institute for Electric Efficiency, Judith Schwartz - To the Point

This paper presents a framework for utilities and regulators to evaluate investments in smart meters and associated enabling technologies from a benefit and cost perspective. Even with conservative assumptions regarding consumer engagement in technology, programs, and rate plans, the results show positive net benefits are possible for all four utility types. Assuming a service territory of one million households, the total costs of investing in AMI and associated technologies for home energy management varies across the four utility prototypes based on the utility and customer characteristics from a low of $198 million for the Pioneer utility to a high of $272 million for the Committed utility. Likewise the benefits vary across the four utility prototypes based on both utility and customer characteristics.

Document Type:
White paper