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Advanced Meters Reach Critical Mass

FERC logoAdvanced meters reached a penetration rate of nearly 25 percent in 2012, a quadrupling of what existed in 2009. One private estimate from 2013 puts the number even higher, at about 30 percent.

That’s according to the latest Federal Energy Regulatory Commission annual report on demand response and advanced metering, the eighth in the series mandated by the Energy Policy Act of 2005. FERC compiles its own report every other year and relies on publicly reported information in the opposite years, which is the case for 2013.

The Energy Information Administration (EIA) reported that in 2011, approximately 37.3 million advanced meters were in use out of 151.7 million meters nationwide, indicating a 24.6 percent penetration rate. The most recent FERC Survey of advanced meters, conducted in 2012 and reported in the 2012 Demand Response and Advanced Metering Report, showed a penetration rate of 22.9 percent.

Innovation Electricity Efficiency released an August 2013 report indicating that as of July 2013 almost 46 million smart meters have been installed in the US, or an implied penetration rate of about 30 percent.


Other highlights in the report include:

• Since 2009, demand response potential in organized markets operated by the Regional Transmission Organizations (RTOs), Independent System Operators (ISOs), and Electric Reliability Council of Texas (ERCOT) increased by more than 4.1 percent; and,

• Demand response resources made significant contributions to balancing supply and demand during system emergencies for several RTOs and ISOs in the summer of 2013.

In March 2013, NERC released initial Demand Response Availability Data System data results through the 2011-2012 winter. NERC states that 80 entities reported demand response program data for the 2011 summer reporting period and 74 entities reported for the 2011-2012 winter reporting period. NERC believes the number of reporting entities may grow to over 200 with the completion of subsequent phases of Demand Response Availability Data Systems (DADS) that are designed to include reliability programs and data on economic demand response and time-based pricing programs.

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