81 c per customer for Ontario’s meter data management/ repository


Toronto, ON, Canada — (METERING.COM) — March 26, 2012 – Ontario’s Independent Electricity System Operator (IESO) has filed an application with the Ontario Energy Board for a Smart Metering Charge (SMC) for customers of $0.81 per month to recover the costs of developing and implementing the province’s Meter Data Management and Repository (MDM/R).

The charge would be recovered from the local distribution companies (LDCs), effective July 1 and continue to the end of 2017 to cover costs to that time, which corresponds to the end of the asset service life of the MDM/R.

The MDM/R is a data repository that acts as a central hub, providing a common platform for storing, processing and managing hourly electricity consumption information in a reliable and secure manner. The data is translated into three consumption buckets – off-peak, mid-peak and on-peak – enabling the LDCs to bill customers on time-of-use. The system works in conjunction with the LDCs’ metering and billing systems to provide customers with detailed, accurate and timely information about their electricity use

According to the IESO in its application the MDM/R has reached critical mass, collecting and processing electricity consumption data from the majority of smart meters in the province. To date, 70 LDCs and more than 4.3 million meters have been enrolled with the MDM/R.

The MDM/R has been in-service and supporting LDC billing for four years and is operating reliably and within budget. The filing seeks to cover the costs of the development and implementation of the system, the integration of the LDCs and their smart meters onto the system, and for its ongoing maintenance and operation until the end of December 2017.

The MDM/R was developed by IBM Canada and is being operated by the company for an initial period of four years up to the end of March 2102, which has now been extended for a further two years up to the end of March 2014.

The IESO is the Smart Metering Entity, with responsibility for implementing and overseeing the provinces smart metering initiative.

In the filing the IESO also states that the SME role will be transitioned to the province’s LDCs under a plan developed with the Electricity Distributors Association (EDA). To this end a non-profit corporation named The Organization for Smart Meter Services in Ontario (MDM/R Co) has been established with the intention to be designated the SME, independent of the IESO.

The revenue requirement of the SME from inception (July 2006) to the end of 2017 is estimated at $251.5 million (including financing costs), the majority made up of the MDM/R development, delivery and operation costs.