San Francisco, CA, U.S.A. --- (METERING.COM) --- June 19, 2007 - The California Public Utilities Commission (CPUC) has authorized San Diego Gas & Electric (SDG&E) to proceed with contracts with Capgemini and Itron to implement Phase I of its Advanced Metering Infrastructure (AMI) project.

In Energy Division Resolution E-4094, approval of the contracts with the two vendors was recommended, because these meet the minimum functional requirements set by the Commission to establish utility AMI systems capable of supporting demand response.

SDG&E has selected Capgemini as its main strategic partner on the project and it will be involved in all aspects of the AMI installation, including program management and system integration functions through completion of the meter installation in the second quarter of 2011. During Phase I, Capgemini will run the program management office, which oversees all aspects of management, governance and tracking for the project from start to finish. Capgemini will also be responsible for system integration, including design, development, testing and implementation of new programs and interfaces to support the AMI program.

Itron, Inc. has been contracted to license Meter Data Management System (MDMS) software and maintenance support. The main component of this agreement is the MDMS software (Itron’s Enterprise Edition™), which will retrieve, validate and store interval consumption data from electric meters and daily reads from gas meters. Included in this agreement is Revenue Protection Suite software that will “mine” the data to help SDG&E identify potential instances of energy theft, as well as an option to license Mass Market Customer Care Residential Rate Analysis Module software, which could be deployed in SDG&E’s customer portal, allowing customers to view details of their daily consumption on a “day after” basis.

The CPUC stated in its Resolution that although a technology for the meters themselves has not yet been selected, the contracts submitted by SDG&E would establish a system capable of collecting and storing data from the meters on an hourly basis, thereby laying the foundation for the implementation of time-varying rates, including time-of-use and critical peak pricing.

In addition the contracts submitted by SDG&E will further facilitate demand response by laying the foundation for direct load control of customer energy use through Programmable Communicating Thermostats. The contracts also include software that will help SDG&E save money by detecting energy theft, and they contain the option to license software designed to help customers manage their bills and lower energy costs.

The CPUC also noted that while SDG&E's contracts do not specify that MDMS will notify customers of the CPP events – a function that is required in the minimum AMI functionality, it believes customer notification to be outside the scope of the MDMS, which has the primary function of storing and organizing data from the meters, rather than transmitting information to customers.

Phase I of SDG&E’s AMI project consists of developing a new information technology system, integrating that system into the utility’s existing information and billing systems, preparing for AMI meter installation and physically installing the meters in customer premises.