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MDM Market Continuing to Heat Up - By Patti Harper-Slaboszewicz
Daily IssueAlert
5/7/2007

Free
Last fall, UtiliPoint received a request from a large utility asking us to host a series of webinars on the planning, implementation, and advanced functionality of meter data management (MDM). Since the MDM market is so new, the utility wanted to learn from other utilities how to evaluate the responses from their RFP, how to develop a contract that provided for good service from the MDM vendor over the long-term, and how to plan the implementation. UtiliPoint contacted utilities that were farther along on planning or had implemented MDM, and developed the following series of webinars:


  • Duke Energy and Pacific Gas and Electric Company: Planning MDM
  • TXU Electric Delivery: Implementing MDM
  • JEA: Advanced Functionality
  • Idaho Power: Implementing MDM to support Dynamic Rates


“Utility Perspectives on Meter Data Management,” a new report now available, is based on these webinars and is available on the UtiliPoint website at http://www.utilipoint.com/rci/details.asp?ProductID=1147. The report provides insight into the emerging market of MDM. It is based on over five hours of discussion among utilities during the four webinars where speakers fielded questions from the more than fifty other utilities attending the webinars. Because the webinars were limited to utilities only, the questions and answers were frank and to the point.


UtiliPoint is aware of 22 utilities that have installed or are piloting an MDM system provided by a vendor. There are 88 other utilities in the market for MDM that we expect to implement sometime over the next four years. Utilities have implemented MDM in phases, starting with installing the interface to their various meter data collection systems and developing the interface to CIS. Utilities experience with MDM vendors has been favorable, with vendors providing the services expected and working closely with utilities to configure the products to meet their needs. Because it is a young market, the MDM products offer a wide range or functionality, but the functionality may be based on what was provided to one or two other utilities.


Question topics following the presentations included:


  • AMI rollouts
  • Interface to AMI
  • MV-90
  • Interface to CIS
  • Evaluation of MDM responses
  • Outsourcing of MDM
  • Architecture and functionality of MDM
  • Benefits of MDM
  • Data storage
  • MDM resources
  • MDM hardware
  • MDM installation
  • MDM politics
  • Regulatory reaction to MDM proposals
  • Interface to utility customers
  • Time-based rate considerations
  • Outage management
  • Lessons learned


From UtiliPoint's perspective, we were very surprised by the number of utilities represented (over 50) and by the number of attendees (a minimum of 87). Some utilities had three or four people attend all four of the webinars. We were aware of activity in the MDM market but we were still surprised at the intensity of the interest. This intensity was further revealed during the Q&A sessions following the presentations. The questions continued for 60 to 90 minutes in each webinar and we could clearly see utilities asking penetrating questions to assess the cost of installing and operating MDM and the benefits they could really expect to achieve.


Of particular interest was the number of utility resources required during the installation of MDM and for the operations of the MDM. Scalability was also discussed, as more than a few utilities have plans for expansion beyond their current service territories, most likely via acquisition and merger. Key drivers for MDM remains to be the rollout of AMI, driven by an interest in dynamic rates to support price responsive demand response, improvements in revenue assurance and outage management, and for some utilities, to extend the life of their CIS system.


UtiliPoint will continue to follow this market as it expands and matures. Any AMI vendor would be well advised to develop interfaces with the leading MDM providers. The same advise is provided for CIS and outage management providers.



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UtiliPoint's IssueAlerts are compiled based on the independent analysis of UtiliPoint consultants. The opinions expressed in UtiliPoint's IssueAlerts are not intended to predict financial performance of companies discussed, or to be the basis for investment decisions of any kind. UtiliPoint's sole purpose in publishing its IssueAlerts is to offer an independent perspective regarding the key events occurring in the energy industry, based on its long-standing reputation as an expert on energy issues. Copyright 2007. UtiliPoint International, Inc. All rights reserved.