Itron Inc. (ITRI) has been chosen by British Columbia Hydro (BC Hydro) to supply two million new electric meters over the next two years as part of its Smart Metering Program. With this announcement British Columbia has moved a step closer to modernization.
Under the terms of agreement, Itron will provide its OpenWay smart meters, which are run over a multi-application communication network powered by Cisco. Also included in the agreement are associated system software and meter data management system, which provide a cost-effective solution. The value of the contract is approximately worth $270 million.
The Smart Metering Program will help in chipping rates from prior levels, leading to savings of about $70 million, for customers, in the first three years of implementation. Net benefits accrued from the program would be over $500 million in the long term.
Besides savings and keeping the rates low, the Smart Metering Program will also assist in making BC Hydro’s grid more reliable, increase public and employee safety and cut down on energy theft.
Itron’s meter has a distinct edge over other meters in the industry due to the following characteristics: the customer is well informed when the power is cut and restored; meter provides automated readings, which keep the consumption and billing information updated; facilitation of two-way communications between the smart meter and BC Hydro for improved efficiencies; and it also raises alarm to identify operational problems and any sort of theft.
Apart from BC Hydro, other large companies in North America are implementing Itron’s OpenWay system. These companies include Edison International (EIX), CenterPoint Energy (CNP) and DTE Energy Co. (DTE). Itron now has over 16 million OpenWay units under contract.
We currently have a Zacks #3 Rank (short-term Hold recommendation) on the stock.
Itron is a leading technology provider to the global energy and water industries. It is the world’s leading provider of intelligent metering, data collection and utility software solutions, with nearly 8,000 utilities worldwide relying on its technology to optimize the delivery and use of energy and water. Itron competes with General Electric Co. (GE), Roper Industries Inc. (ROP) and Schneider Electric SA.
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