FERC 2020 staff report on advanced metering and demand response

Advanced meters for electric service are now the most prevalent type of metering deployed throughout the United States, according to a recent federal report, and 2018 was the first year when estimated nationwide advanced meter penetration rates were greater than or equal to 50% of each of the residential, commercial, and industrial customer classes.

Since the enactment of the federal Energy Policy Act of 2005, each year the Federal Energy Regulatory Commission's staff has published a report as required by Section 1252(e)(3) of that act, addressing the following:

• saturation and penetration rate of advanced meters and communications technologies, devices and systems;
• existing demand response programs and time-based rate programs;
• the annual resource contribution of demand resources;
• the potential for demand response as a quantifiable, reliable resource for regional planning purposes;
• steps taken to ensure that, in regional transmission planning and operations, demand resources are provided equitable treatment as a quantifiable, reliable resource relative to the resource obligations of any load-serving entity, transmission provider, or transmitting party; and
• regulatory barriers to improved customer participation in demand response, peak reduction and critical period pricing programs.

The Commission staff's 2020 Assessment of Demand Response and Advanced Metering presents information based on the latest publicly available data -- 2018 for retail data and 2019 for wholesale data -- as well as "findings of Commission staff using non-public data to evaluate demand response performance in California during summer 2020 events."

The U.S. Energy Information Administration defines advanced metering infrastructure (AMI) meters or “advanced meters” as “[m]eters that measure and record usage data[,] at a minimum, in hourly intervals and provide usage data at least daily to energy companies and may also provide data to consumers. Data are used for billing and other purposes. Advanced meters include basic hourly interval meters and extend to real-time meters with built-in two-way communication capable of recording and transmitting instantaneous data.”

2018 represents the first year when the Commission staff report found 50% or greater advanced meter penetration for each of residential, commercial, and industrial customer classes. According to staff's most recent prior report, "In 2017, the estimated advanced meter penetration rates for residential and commercial customer classes were greater than or equal to 50 percent for the first time, while the penetration rate for the industrial customer class increased to 44.5 percent." 

By contrast, now, "While the advanced meter penetration rate varies by customer class, in 2018 the estimated nationwide advanced meter penetration rates for each of the residential, commercial, and industrial customer classes were greater than or equal to 50% for the first time." According to the report, "In 2018, according to EIA data, there were 86.8 million advanced meters installed and operational out of the 154.1 million meters installed and operational nationwide, representing a 56.4% penetration rate and a total increase of 7.9 million advanced meters from 2017 to 2018". The report highlights EIA data showing growth over time, from 6.7 million advanced meters in operation in 2007.