Electricity AMR Economic Stimulus Act of 2008 — Potential Tax Benefits for Utilities Deploying AMR/AMI Read how bonus depreciation may spur investor owned utility infrastructure investment this year, but the clock is ticking. click here for more information Nelson Hydro Finds Clear Migration Path to AMR Using Itron Technology CENTRON® meters and MC Lite help to drive organizational excellence for Canadian municipality. click here for more information It Pays to Ask the Experts: A Buyer's Guide to Mobile AMR Solutions With over 20 years experience in defining and refining mobile collection technology, Itron is providing you with these helpful shopping tips. click here for more information Special Offer: Put the Power of Itron's New 100G ERT® Module to Work for You The 100G ERT Module brings value to existing and new customers with its increased output power, benefiting mobile AMR users by collecting RF reads from a greater distance. Want to experience these benefits firsthand? Read more about our special offer. click here for more information

Economic Stimulus Act of 2008 — Potential Tax Benefits for Utilities Deploying AMR/AMI Bonus depreciation may spur IOU infrastructure investment this year, but the clock is ticking.
		When President Bush signed the Economic Stimulus Act in January most attention was focused on the individual taxpayer rebates (checks are in the mail). But the Act also included several provisions designed to spur business investment, including Section 103 — Special Allowance for Certain Property Acquired During 2008, which could offer some tax benefits for investor owned utilities (IOUs). This section is similar to a special depreciation allowance that was authorized after 9/11, often referred to as "bonus depreciation." The
Administration characterizes the impact of Section 103 as follows: "The legislation would save businesses approximately $50 billion in near-term taxes through a temporary change to the tax code that will allow American businesses that buy new equipment this year to deduct an additional 50 percent of the cost of their investment in 2008. This will encourage businesses to expand and create new jobs now because buying equipment, software, and tangible property this year will dramatically lower their taxes." Whether or not utilities will choose to take advantage of this allowance will depend on the timing of their rate cases, infrastructure expansion plans and individual tax considerations. Several of Itron's IOU customers have already made inquires about this provision. Under IRS Code Section 168, a taxpayer is allowed to recover through annual depreciation deductions the cost of certain property used in a business for the production of income. The amount of the depreciation deduction allowed with respect to tangible property for a taxable year is determined under the modified accelerated cost recovery system (MACRS). Under MACRS, different types of property are assigned applicable recovery periods and depreciation methods. The recovery periods applicable to most tangible personal property range from three to 25 years. Metering infrastructure is a 20-year asset that generally qualifies as a 20-year MACRS property. Depreciation methods generally applicable to tangible property are the 200 percent and 150 percent declining balance methods, switching to the straight-line method for the taxable year in which the taxpayer's depreciation deduction would be maximized. The new provision allows an additional first-year depreciation deduction equal to 50 percent of the adjusted basis of qualified property. In order for property to qualify for the additional first-year depreciation deduction it must meet all of the following requirements. First, the property must be (1) property to which MACRS applies with an applicable recovery period of 20 years or less, (2) water utility property, (3) certain computer software, or (4) qualified leasehold improvement property. Second, the original use of the property must commence with the taxpayer after Dec. 31, 2007. Third, the taxpayer must purchase the property and place it in service after Dec. 31, 2007, and before Jan. 1, 2009. An extension of the placed in service date of one year (i.e. 1/1/10) is provided for certain property with a recovery period of 10 years or longer, an estimated production period over one year, and a cost exceeding $1 million. Given this window of opportunity, it's reasonable to assume that some tax-paying utilities would utilize the new tax rules, depending on the timing of their general rate case filings — a point reinforced by Don Falkner, tax manager for Avista Utilities here in Spokane, Wash. "The bonus depreciation is a cash flow boost that gets deferred for regulated taxes and then is used as a rate base offset that effectively gives the time value of money savings back to customers," Falkner said. "If a particular IOU does not have any near-term plans for a general rate case, then they would be able to retain the savings associated with bonus depreciation for some period of time." Based on this feedback it would appear that the best prospects about how the new bonus depreciation could improve the NPV of capital purchases during 2008 would be those who recently received rate increases or those that didn't have any near-term plans to file a general rate case. Ultimately, every utility will need to consult with their own tax departments to fully ascertain the applicability and benefit of this new allowance. But in circumstances where the utility's business case for an infrastructure deployment is borderline, this added benefit might make the difference in securing a near-term "go" decision.

Nelson Hydro Finds Clear Migration Path to AMR Using Itron Technology CENTRON® Meters and MC Lite Help to Drive Organizational Excellence for Canadian Municipality
		Opportunity Incorporated in 1898, Nelson Hydro is unique from most municipally-owned utilities in that it is fully vertically integrated — that is, the utility operates generation, transmission, substation and distribution facilities. By contrast, the other four municipal utilities in the interior of British Columbia, Canada, are limited to operation of distribution facilities only. Nelson Hydro's operations manager, Mike Amos, draws on this uniqueness to face changing industry demands and continuous challenges exclusive to Canada.
"Aging electromechanical meters and manual meter reading were rapidly overwhelming our ability to keep pace with rising labor costs and the shifting dynamics of the Canadian energy market," says Amos. After extensive research, Amos and his team concluded that automation of its meters and data collection processes addressed each of these hurdles. On average, Canadian meter readers are paid 46 percent more than meter readers in the United States. The rate at which labor costs in Canada are rising is almost as unprecedented. These costs come in addition to the high costs associated with certifying meter accuracy as mandated by Measurement Canada, the utility's regulatory body. Specifically, Measurement Canada requires utilities to verify meter accuracy over a specified time period (seal extension) and directs they re-test sample groups of meters depending on size. Nelson Hydro's aging meters need to meet or exceed specified accuracies, otherwise the entire group of meters must be retrieved and re-tested. As the meters get older, the amount of time between tests gets shorter and the amount of testing piles up, resulting in a full-time meter mechanic whose only job is to administer and execute compliance testing. For Nelson Hydro, implementation of new, automated meters would ease some of the burden and cost of certifying its aging meters and give them more accurate data on customer consumption. The change-out would also open the door to increased revenues and ensuring end-customers are paying for services received. The meters would also enable access to mobile reading through handheld and mobile collection systems. This would not only eliminate manual data entry errors; it would also solve challenges associated with an aging workforce. In 2005, Nelson Hydro lost one full-time meter reader through attrition. Combined with the cost savings realized through replacing its outdated meters, the time was right to achieve more efficiency with a smaller workforce by implementing mobile reading. Solution Nelson Hydro embarked on a 6-year plan to replace 9,000 of its residential and 500 of its commercial and industrial (C&I) electromechanical electricity meters. Impressed with the exceptional accuracy and reliability of CENTRON meters, the utility chose Itron for the conversion. Amos says Itron CENTRON meters offered Nelson Hydro the flexible and reliable communications they needed to meet future technology standards. "Itron was the only supplier to submit a complete solution for residential, commercial and polyphase meters," says Amos. "They were also the only North American vendor granted a10-year seal extension by Measurement Canada." The 10-year initial seal period allows CENTRON meters to remain in the field for 10 years prior to sampling for accuracy. The CENTRON was the first electronic meter to be granted an extended initial seal period. Prior to granting a 10-year seal period for the CENTRON, Measurement Canada required sampling of electronic meters after six years of service. For Nelson Hydro, the additional four years translates into a $10,000 savings in re-test costs annually. In fall 2007, the new meters enabled Nelson Hydro to migrate from manually keying data into handheld computers, Itron's FC200Rs, for drive-by collection with Itron's MC Lite. The easy-to-use, portable drive-by solution utilizes FC200s with external radios to gather consumption and tamper data. Both are part of ChoiceConnect™, the automated meter reading (AMR) suite of walk-by, drive-by and fixed network technologies from Itron that work alone or together to meet customer's specific objectives. "Implementation of AMR is our ultimate goal. We needed a meter reading system that would provide a clear migration path to meeting future needs. This system needed to work with a portfolio of AMR technologies," says Amos. Benefits To date, Nelson Hydro has installed 3,000 CENTRON residential meters in rural areas where meter reading costs are highest. The utility has already realized a reduction in re-reads with an increase in read accuracy. In addition to these benefits, operational efficiency with respect to meter reading and billing operations has noticeably improved. Prior to the mobile upgrade, one rural meter route absorbed five days time to read—it's now down to one. The time required to read a billing cycle has been reduced by 90 percent. All said that's a $150,000 per year savings in labor and equipment costs. Remember the full-time meter shop employee, solely responsible for accuracy testing? He's now free to perform a variety of tasks for the utility—another cost savings. Looking to the future, the utility will soon begin deployment of CENTRON Polyphase meters to meet the demands of its low- to mid-tier C&I customers. Plans include using Itron Fixed Network to install strategically placed network collector units and repeaters for maximum coverage, effectively achieving a 100 percent systems migration. Amos is looking forward to utilizing the time-of-use and positive outage detection functionality housed inside CENTRON meters. Says Amos, "It's a relief for me that every device and product we're using is lined up with one supplier. This is especially relevant for a utility such as ours that envisions a complete conversion to AMR."

It Pays to Ask the Experts: A Buyer's Guide to Mobile AMR Solutions
		Whether you need to improve meter reading efficiencies or you're seeking a more reliable way to reduce meter reading costs, mobile automated meter reading (AMR) may be just the answer you've been looking for. The convenience, timesaving and cost saving features of this technology have arguably had one of the biggest impacts on the way utilities do business. As such, few purchases in the utility realm carry so much weight and offer so much selection. With over 20 years experience in defining and refining mobile collection technology, Itron is providing you with these helpful shopping tips.
Ease-of-use When comparing mobile AMR solutions look for technology that is portable and lightweight, making it easy to transport. Color touch screens can make units easy to read in varying light. Another feature you don't want to pass up is voice activation, which allows for faster reads and processing. Durability Look for a solution with a ruggedized design. This will ensure that your mobile collection equipment remains reliable through the harshest of environments. Flexibility If possible, your mobile AMR solution should be able to utilize multiple tones for waking up a variety of endpoints for reading. This eliminates the need to create special routes, which can be a cumbersome task to manage. Functionality Your mobile system should allow for mapping, which not only supports greater driving efficiency, but protects the safety of your readers. GPS playback is another great feature for optimizing drive routes. One additional feature to look for—out-of-route reading. It can help your utility to eliminate future move out requests while further supporting route optimization. Also, don't forget to take into account the unique features specific to your organization. If you are a smaller utility, or are just looking to pilot the operational benefits of AMR, a combination drive-by and walk-by system might be ideal. This is especially relevant in an area with mixed read methods such as needing to manually collect load profile or time-of-use (TOU) data via optical probing or water touch pads that need reading. Take into account how well your meter readers understand their mobile reading routes. High or seasonal turnover may result in drivers not understanding the service territory and may require a more comprehensive mobile AMR system. If your daily work is focused on optimized or fully-deployed AMR and advanced AMR routes, you may be in need of a more robust mobile collection system. Especially if you need to evaluate out-of-route and route reads for future routing purposes. Do you have a number of high-density areas, as well as areas with difficult-to-access meters? These are important considerations. Also, before purchasing, determine your need for mobile demand reset and utilization of mobile TOU registers. Finally, consider the impact of mobile mapping and GPS playback benefits to your operation and employees. Interested in learning more? For further information about purchase of a mobile AMR solution, click here to e-mail us.

Special Offer: Put the Power of Itron's New 100G ERT® Module to Work for You

Would you like to experience the benefits of Itron's next generation gas ERT module? The 100G ERT Module brings value to existing and new customers with its increased output power, benefiting mobile AMR users by collecting RF reads from a greater distance. This typically improves read efficiencies by 30 percent and is especially helpful in hard-to-read areas. Current or future fixed network customers are also experiencing the advantages of reduced infrastructure costs using the 100G. With its programmable output power, the 100G ERT can be optimized for handheld, mobile or fixed network reading—all without the need for an FCC license. Itron is making it easier for you to put the 100G ERT Module to work for you by offering you one free FC200SR handheld computer or three free FC200 upgrades to SRead™ radios with the purchase of 1,000 residential 100G ERT Modules. The FC200SR is required for programming the 100G. This limited offer is available for a one-time purchase order that must be received by Dec. 31, 2008, with shipments no later than March 31, 2009. The Guidelines This offer is open to all utilities and distributors This offer cannot be combined with any other offers One offer per customer. We are happy to provide pricing for additional 100G ERT Modules or FC200SRs This limited offer is valid for a one time purchase order that must be received by Dec. 31, 2008 with shipments not to exceed March 31, 2009 The following residential 100G ERT Modules are included in this offer:   - Elster American Meter - Sensus/Rockwell 11 tooth - Sensus/Rockwell 18 tooth - Actaris/Sprague - National - ERG-5000-001 - ERG-5000-002 - ERG-5000-004 - ERG-5000-005 - ERG-5000-006 100G ERT Modules are sold in box quantities of 20. Multiple part numbers can be ordered but must be full box quantities Customer can choose between   - One free programming device which includes the following:     - FC200SR with communications cables and power supply       - FC2-0005-002     - Single Desk Docking station for FC200SR with Serial/USB       - OEM-0065-004-R OR     - Three free FC200 upgrades (Valid for FC200 with and without existing Raptor radios)     - FC200 upgrade to FC200SR - UPG-0036-001 - FC200R upgrade to FC200SR - UPG-0035-001 A separate order mentioning Promotion GAS2008A is needed for this offer Programming Device 100G modules are programmed using FC200SR using Endpoint-Link® and Endpoint-Link Pro® version 5.1 or higher Approved Reading Devices FC200SR handheld with following meter reading software; MV-RS® v7.8.6 or higher; Field Collection System (FCS) v1.8.5.2 or higher G5SR handheld with following meter reading software; Premierplus4 v3.2 or higher; MV-RS v7.8.6 or higher; Integrator v6.0 or higher Mobile Collector 2.0 or higher with Mobile Interface software version 2.6 or higher and following meter reading software; MV-RS v7.7 or higher; FCS v1.6 or higher; Premierplus4 v3.2 or higher; Integrator v6.0 or higher MC3 with Mobile Interface software version 3.0 or higher with following meter reading software; MV-RS v7.7 or higher; FCS v1.6 or higher; Premierplus4 v3.2 or higher; Integrator v6.0 or higher Mobile Collector Lite with MV-RS v7.8.5 or higher Fixed Network 2.0 Cell Control Unit (CCU) 4.2 8 channel repeaters CCU Meter Reading Application software v3.6.02 or higher Fixed Network Application software v2.2.3 or higher Billing Gateway software v2.0.8 or higher For more information, please contact your Itron representative.