Clark Public Utilities to Deploy Itron Automatic Meter Reading Technology; Project Will Automate Data Collection From 150,000 Electric Meters For Public Utility In Washington State.

Business Editors

SPOKANE, Wash.--(BUSINESS WIRE)--May 31, 2001

Itron, Inc. (Nasdaq:ITRI), announced today that it has signed a contract with Clark Public Utilities, electricity supplier to more than 150,000 customers in southwest Washington State, to provide the utility with technology to automate meter data collection throughout its service territory.

Installation of the $10 million meter reading system, the largest AMR deployment to date by a consumer-owned electric utility in the U.S., will begin this summer and be completed by the fall of 2002. Once the system is installed, Clark Public Utilities will use vehicles equipped with on-board Itron computers and RF transceivers to automatically collect data from all of the utility's 150,000 electric meters simply by driving down the street.

Because Itron's AMR meter modules can be read by any of Itron's wireless data collection systems, the system also enables the Vancouver, Wash.-based utility to "migrate" to advanced fixed network technology in the future without having to replace installed meter modules should Clark's data collection needs change.

"At Clark Public Utilities we're committed to continually improve our operational efficiency so that we can keep our rates as low as possible, and we're committed to achieving the highest level of satisfaction among our customer-owners," said Wayne Nelson, CEO and general manager of Clark Public Utilities. "Implementation of automatic meter reading technology from Itron will be a key step in fulfilling both of these vital commitments in the years to come."

Clark's decision to deploy automatic meter reading technology, which was approved by the utility's board of commissioners last month, comes at a time when the utility faces considerable budgetary pressure due to dramatic increases in wholesale electricity prices in recent months, said Richard Dyer, director of finance and treasurer at Clark. However, the efficiency gains, the relatively quick projected payback schedule, and the strategic value of AMR technology made it a very sound investment for the utility and its customer-owners at this time.

"Like many other utilities, we've faced sky-high wholesale energy prices over the past year, but we believe the capabilities and data this technology provide will prove critical to minimizing risk in today's highly volatile energy market," said Dyer. "Now is not the time to shy away from innovation and technologies that reduce our costs and improve the way we operate as a business."

Clark's three-member board of commissioners echoed that opinion when it unanimously approved the AMR project. "It's easy when you are in a crisis to hunker down and miss opportunities," Clark Public Utilities Commissioner Nancy Barnes commented before casting her vote in support of the project.

"When you consider the financial pressures utilities are facing today due to increasing energy prices, it would have been very easy for Clark to put this investment on the shelf until energy prices stabilize," said John Hengesh, vice president and general manager of Itron's Water and Public Power business unit. "But Clark Public Utilities sees AMR technology as a strategic investment that reduces costs, increases operational efficiency and delivers reliable, accurate knowledge about its customers' energy consumption. In today's volatile market environment, these benefits and capabilities are more critical to utilities than ever before."

Itron Inc. is a leading technology provider and source of knowledge to the energy and water industry for collecting, analyzing and applying critical data about electric, gas and water usage. Itron technology touches more than $200 billion in energy and water transactions annually in North America. Today, Itron systems are installed at approximately 2,000 utilities in over 45 countries around the world and are being used to collect data from 275 million electric, gas and water meters. Of those, more than 650 customers use Itron's radio and telephone-based technology to automatically collect information from 18 million meters. Itron technology has also recently been chosen by wholesale energy markets in the U.S. and Canada to provide critical billing and settlement systems for those deregulating markets.

Clark Public Utilities is a customer-owned public utility district that provides electric service to more than 150,000 customers throughout Clark County in Southwest Washington State. The utility also provides water and wastewater service.