Chapter 15B. Advanced Metering Infrastructure.
§ 34–1561. Definitions.
For purposes of this chapter, the term:
(1) “Advanced Metering Infrastructure” or “AMI” means a system capable of providing 2-way communication with metering equipment to gather at least hourly energy consumption data on a daily basis for all customers.
(2) “ARRA” means the American Recovery and Reinvestment Act of 2009, approved February 17, 2009 (123 Stat. 115; 26 U.S.C. § 1, note).
(3) “Commission” means the Public Service Commission.
(4) “Customer” shall have the same meaning as set forth in § 34-1501(12).
(5) “Electric company” shall have the same meaning as set forth in § 34-207.
(6) “Meter Data Management System” means a system that provides a single data repository which can gather data from multiple metering systems and then supply that data to multiple applications such as billing, forecasting, customer service, system operation and maintenance.
(7) “Regulatory asset” means specific costs that a public utility may defer to its balance sheet and accrue earnings thereon at its authorized rate of return.
(8) “Smart Grid” means the installation of advanced technology to enhance the operation of the electric distribution and transmission system.
§ 34–1562. Authorization of Advanced Metering Infrastructure implementation (Smart Grid) and cost recovery.
(a) The electric company may implement an Advanced Metering Infrastructure for all consumers, provided, that the electric company obtains a sufficient amount of federal funds for AMI implementation under the ARRA. The sufficiency of the amount of the federal funds obtained shall be determined by the Commission. The Commission shall make a determination of the sufficiency of federal funds obtained within no more than 60 days after the receipt of notice from the electric company of the amount of federal funds awarded.
(b) The electric company may establish a regulatory asset for the costs, net of the amount of the ARRA funds received, including depreciation and amortization expense, incurred by the electric company between base rate cases for the implementation of Advanced Metering Infrastructure, including the amortization expense of the Meter Data Management System, the depreciation expense on the AMI meters, and the undepreciated net book costs of the meters replaced by the AMI meters. The regulatory asset shall accrue a return at the electric company’s authorized rate of return on the balance in the regulatory asset.
(c) The creation of a regulatory asset for Advanced Metering Infrastructure shall not affect the authority of the Commission to review the prudence of costs associated with implementation of AMI. In any Commission proceeding reviewing the costs, the electric company shall have the burden to prove that all of the costs have been prudently incurred.
(d) The electric company shall net any utility cost savings resulting from AMI deployment from the regulatory asset.
