Commonwealth Edison Company (ComEd), a unit of Chicago-based Exelon, will begin to install first wave of the 131,000 smart meters being deployed for its advanced metering infrastructure (AMI) pilot.

The one-year AMI, or ‘smart meter’ project is expected to assess how technology can improve service, help customers make informed decisions about energy use, and contribute to lower energy costs and reduced carbon emissions, the company said.

Anne Pramaggiore, president and chief operating officer of ComEd, said: “This is the first step toward a more advanced electricity system that will provide customers with more information, more quickly. By providing daily usage information, ComEd is moving from an electricity delivery business model to a 21st century delivery and service model.”

A smart meter is a digital electric meter that collects usage information in every 30 minutes and sends that information to ComEd through a network. When the pilot is fully implemented in early summer 2010, this new technology will provide customers with daily usage information, accessible through internet, to help monitor their energy use and manage energy costs; enable ComEd to access account information on demand; and allow ComEd to begin assessing the operational, environmental and other benefits of smart meters for all ComEd customers.

From November 2009 and May 2010, residents and businesses in nine towns served by ComEd’s Maywood operating center including Bellwood, Berwyn, Broadview, Forest Park, Hillside, Maywood, Melrose Park, Oak Park, River Forest and the Humboldt Park area in Chicago will receive the new meters.

Some customers in the pilot will be selected to test energy management features and technologies including alternative pricing plans, web interfaces, in-home displays, home area networks and programmable thermostats. This will allow ComEd to examine the new meters’ operational benefits for customers as well as how they respond and use the technology and track any changes in their consumption habits.

The cost of the pilot is approximately $69m and costs will be shared by all ComEd customers. During 2010, this would increase the average residential customer’s bill by less than $5 a year.