The total cost of the project is $5.56 million dollars . The project would result in a reduction in utility operating costs of over $251,000 per year and utility savings of $128,000 per year– as a public utility, such savings will ultimately benefit ratepayers. Operational savings are gained from work flow changes such as reduced truck rolls to read meters and disconnect and reconnect services. These are dollars that can be spent on value-added services such as vegetation management, line upgrades, etc. Utility savings are those related to replacing old inaccurate meters. The annual project savings will pay for the project cost over a 14 year period. Any future rate increase would be unaffected by the AMI project as it is a rate neutral project, meaning the initial and ongoing project costs would be offset by annual cost savings. The project would be funded out of normal operating budgets. As the PUD realizes financial benefits, those savings will also be used to fund this project.