PGE has begun a three-year project introducing two-way automated meters throughout its service area. Smart metering is a proven technology that is increasingly being adopted by utilities for its cost savings and many other benefits.

Smart meters are digital meters that are read remotely over a private, secure wireless network, much like a cell phone network. The system will enable PGE to read all electric meters remotely every day and also send special commands to the meter. This two-way communication capability will allow PGE to more efficiently serve customers, such as providing special meter reads, turning power on for new customers without having to send out a technician and sensing when electric service is out.

Smart meters will help us to improve customer service, operate more efficiently and keep our rates as low as possible. There are several advantages:

• Saves money. We anticipate savings of $18 million per year with the installation of smart meters. Controlling costs helps keep electric rates as low as possible.
• Saves the environment. Reducing the number of meter-reading vehicles will cut 1.2 million miles of driving, save 80,000 gallons of gasoline and reduce carbon dioxide emissions by 1.5 million pounds every year.
• Helps you save energy. When the entire system is up and running, you'll be able to access detailed information about your power consumption. Together, we can help you plan energy-saving strategies.
• Speeds power restoration. Further down the road, the new meters will be able to tell PGE if you're experiencing a power outage. That can help us dispatch repair crews more efficiently and speed the restoration of your service.

The cost of the new system will be covered in customers' rates. The Oregon Public Utility Commission has authorized PGE to capture the costs, less operational benefits, of the new system with a tariff that took effect on June 1, 2008, and expires on December 31, 2010. Below are the authorized increases by customer group:

• Small commercial (Schedule 32): 1.5 percent
• Commercial and industrial (Schedule 83): 0.2 percent
• Large industrial (Schedule 89): 0.04 percent

After that period, the ongoing costs and benefits of smart meters will be factored into PGE's rates through the usual regulatory process. Because the economic benefits of the new system are expected to exceed the costs over time, the new system will have a downward influence on customer rates once the system is fully deployed at the end of 2010.

Installation schedule
During summer and fall 2008, PGE will install the new meters in selected areas, including portions of downtown Portland, inner southeast Portland neighborhoods and a rural area near Banks and Gales Creek. Starting in January 2009, PGE will implement the upgrade throughout the entire service area, with completion scheduled for September 2010. Your PGE customer manager will contact you prior to your scheduled installation.

For more information, see our news release.