Tacoma utility AMI rollout nearing close; forecast comes in slightly under original budget, 535 customers opted out

Corey Bediens, technology manager at Utility Technology Services and acting Advanced Metering Infrastructure (AMI) lead, told the Government Performance Finance Committee and Audit Advisory Board on July 15 that the AMI program will be substantially complete by the end of the year and that the city’s forecasted final cost is below the originally authorized $81.7 million.

“The goal was to exchange nearly 300,000 meters, install an AMI communications network, base stations and antennas, to install create a meter data management system, integrate with SAP, transition to monthly billing, and enable a customer portal,” Bediens said. He told the committee the program’s original schedule (2017–2022) slipped to 2025 largely because of global chip shortages and COVID‑era supply‑chain disruptions.

Why it matters: AMI touches every Tacoma utility customer and enables monthly billing, automated outage detection for faster response, and water leak detection that utilities staff said is already prompting customer repairs and conservation. That can change operating and customer‑service costs across the utility.

Key facts and outcomes - Scope: replace about 300,000 electric and water meters, install communications infrastructure, and integrate meter data with the city’s SAP financial system and a customer portal. (Presenter: Corey Bediens.) - Schedule: original target 2017–2022; delayed by supply‑chain issues and staff/contractor turnover; presenters said the program is expected to finish by the end of the calendar year. (Presenter: Bediens.) - Budget: original baseline $81.7 million. Presenters said the forecasted final cost is roughly $80.5 million, below the original authorization after renegotiations and grant funding. “We started with a budget of 81,700,000…and our current forecast is below our original budget value,” Bediens said. - Opt‑outs: presenters reported 535 customers have formally opted out of receiving an AMI meter; a small number (12 applicants at the time of the presentation) were still in process. Staff said customers who opt out receive manual monthly reads and pay an additional fee for that service. (Presenter: Bediens.) - Grants: presenters said the city secured grants on the water side, including a $2,000,000 award that reduced net program cost pressure. (Presenter: Bediens.)

Customer benefits and operations Presenters listed customer benefits that staff said were delivered: monthly billing, outage detection for faster restoration, improved leak detection and continuous‑use notifications on water accounts. Kalyan Kakani, chief information officer and UTS section manager, said the water side has sent more than 45,000 letters to customers notifying them of continuous usage that may indicate leaks. “Water is able to detect leaks…they’ve sent out over 45,000 letters, notifying customers of continuous usage,” Kakani said.

Utility business case and monitoring Staff described a 20‑year business‑case projection for net present value (NPV) benefits. Bediens said roughly 70% of the forecasted value came from labor reductions and reduced truck rolls/outages, categories the city considers “on target”; other benefit categories remain under monitoring because longer observation is required.

Assets and replacement schedule Presenters said the electric solid‑state meters have an expected lifespan of roughly 10–15 years (electric meters installed recently were described as ~15 years), while water meters and their communications modules are expected to last about 20 years (battery‑limited lifespan). Bediens said maintenance and future replacement planning will be required as batteries and electronics age.

Public comment and council questions Public commenter Kit Burns told the committee he has followed the AMI rollout for years and said he opposed the program; he also noted he kept a standard (non‑AMI) meter at his property. “I was against the program… I did end up I still have my standard meter,” Burns said during the public comment period. A resident identified as Constance praised the leak‑detection letters: she told the committee the notification helped her household discover and repair a leak that otherwise would have appeared as a very large bill. “Before, you didn’t know you had a leak until you got your bill… now it’s been helpful to our family,” Constance said.

Council members asked how the project came in under budget despite a three‑year schedule extension; staff said their approach combined contract renegotiations, active vendor management, staff continuity where possible and targeted grant pursuit. “We were willing to take on risk in terms of renegotiating contracts and partnering with our vendors…we also pursued grants on the water side,” Bediens said.

Remaining work Presenters said a small number of final meter installations remain; staff are taking some work in‑house to complete outstanding installations and to offboard vendors. One of the final vendor meter installs was shown in photos as occurring in North Tacoma.

Next steps and follow‑up Staff said the city will continue to monitor expected benefits over the next years (the business case is a 20‑year projection), revisit the manual‑read fee for opt‑out customers to ensure it reflects ongoing service costs, and coordinate AMI meter data with the city’s SAP financial system and customer portal as those programs continue to come online.

The committee did not take any formal action on the presentation.