Demand to reduce costs leads more utilities to consider outsourcing of AMR systems, study finds

ATLANTA, June 12, 2002 — More than ever, utility companies are under pressure to reduce operating costs and maintain or improve customer service levels.

With that in mind, more utilities are making decisions whether to own their own automated meter reading system or outsource it, both now and in the future, according to Outsourcing of Metering Services, a new industry report from Chartwell Inc.

Eighty-eight percent of utilities in a late 2001 poll told Chartwell they would own their own AMR system, while 6% of respondents said they would outsource it. This latter number, though still a small percentage, was an increase over previous Chartwell surveys on the subject. Other utilities still have not made a decision on this issue.

The percentages of AMR meters that are both outsourced and planned for outsourcing are also on the rise, and the report finds that the potential market for AMR outsourcing is greater than the 6% of utilities that outsource or will likely outsource their systems. Outsourcing has indeed become a factor, as many vendors — learning from past mistakes — are offering more contract options that include outsourcing.

This Chartwell industry report, Outsourcing of Metering Services, includes an analysis focusing on the issues surrounding outsourcing and AMR, the ways in which utilities are utilizing outside parties for AMR services. In addition to in-depth analysis, Outsourcing of Metering Services includes three case studies focusing on the decisions that utilities made in regards to meter outsourcing. These three case studies, told in Chartwell’s unique style, include exclusive interviews with utility management.

Outsourcing of Metering Services is available from Chartwell and is part of The Chartwell AMR Report Research Series. For more information, call Juli Collins at 800.432.5879 or 404.237.9099, or visit .


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