Smart meters, a common form of smart grid technology, are digital meters that replace the old analog meters used in homes to record electrical usage. Digital meters can transmit energy consumption information back to the utility on a much more frequent schedule than analog meters, which require a meter reader to transmit information.

Electric energy use will be recorded every hour at your home and every 15 minutes at your business. Natural gas information will be available on a daily basis. Smart meters will enable you to monitor your consumption more precisely so you can make more informed energy choices.

When data is collected from a meter and transmitted wirelessly to the utility, the data contains specific unique identifiers associated with the customers meter number and service address.

These fields are validated numerous times to ensure accuracy before the data is used for billing. This process is similar to the cell phone technology where each cell phone has a unique number that goes with every communication which is used to identify a cell tower and connect your call to the correct location

A map of smart meter installations by state provided by the Institute for Electric Efficiency illustrates progress. As of May 2012, 36 million smart meters have been installed across the country. By 2015, approximately 65 million smart meters are expected to be installed—that’s more than half of all U.S. households.