Glossary

Advanced metering infrastructure (AMI)

Smart meters and the communication network that lets utilities collect near real-time usage data from them.

Also called: AMI, smart metering

Advanced metering infrastructure (AMI) is the combination of smart meters, communication networks, and data-management systems that lets a utility collect electricity, gas, or water usage data automatically and near real time, typically at intervals of an hour or less, rather than relying on a monthly manual meter read.

AMI differs from earlier automated meter reading (AMR) systems in that it supports two-way communication: the utility can not only read usage but also send signals back to the meter, for example to support remote connect or disconnect, or time-of-use pricing signals. The interval-level data AMI produces is far more granular than the single monthly total a traditional meter gives, which makes it possible to see usage patterns by hour and even detect individual appliance signatures in some deployments.

AMI data underpins accurate load forecasting, real-time grid analytics, and outage detection, since a sudden drop in meter pings across an area can flag an outage before a customer calls in. It also enables usage-based products such as time-of-use and demand-response programs, and supports capacity factor and distribution-planning analysis by revealing actual local load patterns rather than modeled estimates. Common pitfalls include data volume overwhelming legacy IT systems not built for interval-level ingestion, and privacy concerns, since granular usage data can reveal occupancy patterns and daily routines inside a home.

Last reviewed September 22, 2026

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