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NYSEG said the program to upgrade its 1.1 million meters would use two-way communications, possibly by radio or a broadband connection over power lines, to read the meters.
National Grid upgraded most of its meters in the Buffalo Niagara region several years ago.
The upgraded meters also could be a tool to help consumers conserve energy if customers used time-based rates that charge higher prices when the demand for electricity is highest and lower prices when demand is low, such as during the early morning hours.
NYSEG, in a filing with the state Public Service Commission, has proposed paying for the $243 million meter upgrade program through a surcharge on customer bills.
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