Utilities Consider Outsourcing AMR

More than ever, utility companies are under pressure to reduce operating costs and maintain or improve customer service levels. With that in mind, utilities are making decisions whether to own their own automatic meter reading (AMR) systems or outsource them, 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 percent 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 percent of utilities that outsource or will likely outsource their systems. Outsourcing has become a factor, as many vendors-learning from past mistakes-are offering more contract options that include outsourcing.

The “Outsourcing of Metering Services” report includes an analysis of AMR outsourcing issues and the ways in which utilities are using outside parties for AMR services.

“Outsourcing of Metering Services” is part of The Chartwell AMR Report Research Series. For more information, contact Juli Collins at Chartwell at (404) 237-9099, or visit www.chartwellinc.com.

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