SmartMeter™ Case Study: Tinley Park, Illinois

A few years after the initial SmartMeters were installed, the village needed to have the remaining meters replaced.
Rather than make a snap decision, village officals decided to undertake a detailed cost benefit analysis to determine
the best solution.This consisted of two steps: a theoretical calculation of the loss of revenue from the mechanical
meters, and an analysis of the actual earning performance of SmartMeters compared with the mechanical meters.

The test
The village removed a number of old mechanical meters o test their accuracy and establish the potential effect on revenue of a variety of replacement strategies.  A weighted analysis against typical consumption, including low (20%), average (65%) and high (15%) flow rates,was undertaken on the removed meters.

The meters analyzed ranged from four to 15 years in service, with an average of approximately 12 years across a sample of 104 meters.The weighted average accuracy of the meter sample was found to be 89.3%, which equates to a revenue recovery loss of approximately $8.62 per meter per quarter, or $34.48 per year, based on an average quarterly utility bill of $71.97.

Assuming the sample is typical of the installed base, the theoretical revenue loss for the next 12 months was estimated at $474,273 across the 13,750 meters subject to replacement.

In addition to the theoretical revenue losses, the analysis of actual consumption figures highlighted the consistent performance of the SE700s in generating revenue, compared with the consistent under-registration and progressive loss of performance of the aging mechanical meters.

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