A Business Case for Deploying Smart Meters

Water supply in Ohio is plentiful, but the infrastructure required to produce, distribute, and generate revenue from it is costly. Meters are critical to funding the water enterprise—yet many cities are relying on inefficient legacy systems or end-of-life assets that are rapidly deteriorating. This puts both financial sustainability and economic growth at risk.

Economic development depends heavily on utility infrastructure. Along with energy availability and cost, the capacity and reliability of water systems are often deciding factors in site selection. Communities that modernize their water infrastructure not only strengthen their fiscal position but also create a foundation for new business investment, housing development, and long-term growth.

Fortunately, technology offers a clear path forward as newer smart meters are proving to be one of the most strategic and cost-effective investments available.

Four Measurable Benefits of Smart Meter Technology

1. Proactive Leak Detection to Protect Water Supply
   Older distribution and metering systems might make it hard to discover leaks or identify the source of unaccounted water. Smart meters deliver real-time data, enabling utility teams to quickly detect and address problems remotely. This reduces water loss, safeguards revenue, and supports conservation.
2. Customer-Centric Tools to Improve Accountability
   Finance and Public Works leaders need modern tools to manage consumption and customer relations. With yesterday’s technology, excessive usage is often discovered too late, which can lead to high bills, political pressure, and unpopular write-offs. Smart meters provide:
   • Usage alerts for customers and staff
   • Remote shut-off technology for delinquent accounts or high-turnover properties
   • Reduced staff confrontations and safer field operations
     
     These capabilities shift utilities from reactive to proactive, strengthening both customer service and fiscal accountability.
3. Operational Efficiency and Stronger Cash Flow
   Advanced Metering Infrastructure (AMI) delivers more accurate billing, ensuring that high-volume users pay their fair share while light users are not overcharged. Real-time usage data supports monthly data analytics, improving cash flow.
   
   Additional benefits include:
   • Elimination of manual meter reading, reducing vehicle and labor costs
   • Free-up staff capacity for higher-priority infrastructure needs
   • Accuracy guarantees and performance assurances that mitigate risk and protect long-term revenue
4. Strategic Data for Long-Term Planning
   Smart meters generate detailed consumption data that supports long-term water planning. Seasonal usage trends, peak demand periods, and neighborhood-level consumption insights allow utilities to make informed decisions about:
   • Capacity and system expansion
   • Targeted conservation programs
   • Evaluating infrastructure needs for new developments

Case Study: Aurora, Indiana – A Self-Funded $2.2M AMR Deployment

The City of Aurora improved efficiency and accuracy which translated to increase revenue by replacing its aging water meter infrastructure. Partnering with Energy Systems Group (ESG), the City implemented a $2.2M self-funded project that included:

• 2,547 water meter replacements with Badger Meters and Itron ERTs
• 1,615 gas meter retrofits/replacements with Itron ERTs
• 900 Itron leak sensors
  
  The city now enjoys a $3 million guarantee in financial benefit over the life of the project. This makes smart meters the clear choice for investment that produces new revenue without risks, providing financial certainty and operational confidence to City leaders.

Smarter Procurement and Financing Options

The biggest barrier to smart meter deployment is not technology—it is capital. Off-the-shelf purchases often result in piecemeal implementations that fail to address community-wide needs.

ESG helps communities in Ohio and beyond overcome procurement and financial barriers through:

• Energy Services Performance Contracting (ESPC): ESPC as codified in ORC 717.02 Section 717.02 – Ohio Revised Code | Ohio Laws specifically outlines a qualification based procurement for AMI projects. A design-build approach with performance guarantees that it pays for improvements over time.
• Cooperative Purchasing (e.g., Sourcewell): Streamlined procurement with accountability and speed.
• Metering as a Service (MaaS): More and more utilities are moving to service-based delivery models to make business processes more flexible, reduce technology risks, and minimize costs. A financially structured, subscription-based model where utilities access smart metering hardware, software, and support without significant upfront costs.
• Funding Strategies: Assistance in sourcing grants, rebates, and other funding opportunities.
  
  By combining procurement flexibility with multiple financing options, municipalities can modernize infrastructure today while spreading costs across future revenue streams.

The Right Partner Makes it Possible

Aging water infrastructure continues to accelerate in Ohio communities. Smart meters are more than a technology upgrade—they are comprehensive tools that enable conservation, revenue optimization, operational efficiency, and long-term growth.

Partnering with ESG gives communities the expertise, resources, and financing options needed to move forward quickly and begin reaping the rewards of modern infrastructure in your community.

Contact Keith Valiquette at [email protected] about how ESG can help your community modernize water infrastructure without straining budgets.