) recently entered into an agreement with CPFL Energia, the largest
private group in the Brazilian energy sector that provides
electricity distribution, generation, and retail services, to
supply 20,000 Itron smart meters.
Itron will provide smart meters, meter data collection system
and support services that will form a part of CPFL's Smart Metering
System. It is a reference program for advanced metering
infrastructure in Brazil, targeted mainly toward commercial and
industrial clients. The project is expected to be implemented in
2013. After installation, the Itron meters will be integrated with
CPFL's meter data management and billing systems. The unified
metering platform will serve as the foundation for future smart
Itron's smart meters and data collection system will help CPFL
manage the meters, identify problems and collect measurement data
at periodic intervals from a remote location. Any issues can be
detected and addressed in time. These capabilities are essential
for the success of the utility's program and will help reduce
operational expenses and sustain revenue over the tenure of the
In addition to flexible data collection and communication
systems, the Itron solution includes the latest-generation SL 7000
meter. The meter equipped to support evolving technologies is
compatible with the dynamic market as well as CPFL's needs.
Earlier this month, Itron entered into an agreement to install
around 11,000 advanced residential water meters for the customers
of Floresti, Moldova, through the water utility service, Servicii
Comunale Floresti. In June, Itron partnered with Australia's
largest water utility, Sydney Water, to replace old meters with
Itron's high efficiency ones. Henceforth, the residential and
commercial customers of Sydney Water in Sydney will be served with
Itron's water meters for the next three years.
The Brazilian Electricity Regulatory Agency (Aneel) announced
earlier this month that smart meters will be mandatory only for new
customers (excluding low-income households) effective February
2014. It will be optional for any other customers who request
replacement after that date. It is estimated approximately 4.5
million new meters will be installed from 2014 through 2017 and
Brazil's utilities spend about $670 million per year between 2014
However, this is a let down from the earlier expectation that
the Brazilian government would mandate utilities to replace all 65
million of the country's current meters with smart meters by 2020.
Nevertheless, there remains opportunities for smart meter vendors
like Itron that can meet the needs of Brazil's power sector that is
plagued with high levels of energy theft and power outages.
Based in Liberty Lake, Washington, Itron Inc. is one of the
principal technology providers to the energy and water industries
worldwide. It produces electricity, gas, water, and heat meters,
data collection and utility software solutions along with various
other associated metering products for residential, commercial and
industrial and transmission and distribution customers. It has two
reportable segments: Energy and Water.
Itron faces tough competition from
Badger Meter, Inc.
General Electric Company
). The company retains a short-term Zacks #3 Rank (Hold). We have a
long-term Neutral recommendation on the stock.
BADGER METER (BMI): Free Stock Analysis Report
GENL ELECTRIC (GE): Free Stock Analysis Report
ITRON INC (ITRI): Free Stock Analysis Report
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