July 11, 2011

PNM Resources subsidiary Texas New Mexico Power (TNMP) got permission Friday from the PUC of Texas to install SmartSynch meters, using AT&T's commercial cellular network, throughout its Texas service area over the next five years, the parent firm told the press.  The approval is good news for SmartSynch as the deployment will be among the largest using its cellular technology.

          TNMP plans to begin installing the meters in the third quarter in its Gulf Coast region, with about 100,000 metered customers, finishing there by 2013.  It will then turn to northern, central and western Texas, in that order, installing all 240,000 smart meters in 2016.

          The meters to be used were first tested in a 10,000-unit pilot that marked the first large-scale residential deployment of smart meters using a cellular network for communications, TNMP said.  The pilot demonstrated “high levels of accuracy in side-by-side comparisons with the meters they replaced,” it said.  TNMP plans to use that same technology for the full deployment, it added.

          Costs will be recovered through a $3.40/monthly surcharge for residential customers which represents a reduction from the $3.76/month TNMP initially sought.  The surcharge will begin in August and continue through July 2023.  It will yield a recovery of $113.4 million/year, funding capital, operations and maintenance expenses, TNMP said.  Fees will “eventually” be reduced for disconnection and reconnection.