BPL Might Help Utilities Save on Monitoring

Reading ABI Research's release today, "BPL May Boost Utilities' Bottom Line, says ABI Research," I was reminded of one of the possible benefits of Broadband over Power Lines, that is, from the point of view of the electric utility providing the service.

Naturally, power companies like the idea of offering broadband over existing grids, just as a way of making money by offering a new service. But ABI's report highlights another benefit of the technology, in that it increases the utility's ability to monitor the status of its grid and read meters.

Here's an excerpt from today's release with some good explanation:

"'Innovation in powerline technologies may or may not add to power utilities' revenues immediately,' [says ABI analyst Vamsi Sistla], 'but the cost savings they enable will certainly help their bottom lines.'

"Take the ability to remotely monitor electric meters. Traditionally, a human 'meter reader' would visit every customer's household to log power use manually. Even with the later development of 'drive-by' meter reading, a driver, a truck and some specialized equipment were required. All of those cost money and time, and ultimately drive up prices.

"Grafting a broadband network onto the power grid, on the other hand, means completely remote, automated meter reading, as well as instant reporting of outages and system failures. 'ABI Research believes the utility industry should focus on these low hanging fruits, even more than building BPL capabilities to generate additional revenue,' notes Sistla."

AB -- 11/29/05