Utility companies in US are implementing AI/ML solutions to tackle operational challenges in power and energy utilities. With vast streams of data coming from AMI smart meters, SCADA systems, and IoT sensors, utilities are building ML pipelines to continuously develop, deploy, and refine machine learning models. Below, we delve into four practical use cases – outage prediction, smart meter OCR, anomaly detection, and dynamic voltage control – highlighting how they work and why they matter.
Throughout, integration with existing systems like OMS (Outage Management Systems), MDMS (Meter Data Management Systems), and control systems ensures these AI applications deliver real-world value while meeting regulatory expectations for reliability and safety.

Use Case: Predicting power outages before they happen, so that utilities can mitigate impacts.
Context: Severe weather events (storms, wildfires) and equipment failures are major causes of outages. Regulators often penalize utilities for prolonged outages, and customers expect rapid restoration. Traditional outage response is reactive, but AI allows a proactive stance.
Solution: Utilities are deploying machine learning models that analyze a combination of weather forecasts, historical outage data, real-time sensor readings from the grid, and even satellite imagery to predict where outages are likely to occur.
These models are integrated via an ML pipeline – continuously retrained with new data and automatically updated in production as accuracy improves. Advanced MLOps practices ensure the pipeline handles data ingestion from weather services and GIS, model retraining (e.g., before storm seasons), and live inference within the utility’s OMS.
By using cloud-native tools, models can scale to analyze thousands of line sensors and weather points in near real-time.
Impact: This AI-driven approach enables predictive outage management. For example, one utility’s outage prediction model identified high-risk areas ahead of a major storm, allowing crews to be pre-positioned and spare equipment to be staged, significantly shortening actual restoration times. In practice, such models can pinpoint vulnerable grid segments based on conditions (e.g., an at-risk tree line under heavy winds). Once a storm hits, the utility already has a map of likely faults and can dispatch repair teams more efficiently (Crew Optimization).
The result is faster restoration, which not only improves customer satisfaction but also minimizes regulatory fines for outage duration metrics. A cited example is Énergie NB Power in Canada, which used a machine-learning outage predictor to restore 90% of customers within 24 hours of an event, saving millions annually in outage costs.
Through robust MLOps workflows, these predictive models are kept accurate and reliable over time, continuously learning from each event to get better at preventing outages.

Use Case: Automating meter reading and data capture using computer vision (OCR), especially for legacy or analog meters and field images.
Context: Even as advanced metering infrastructure grows, many utilities still manage a mix of meter types (digital, analog) and need to collect readings from the field.
Manual meter reading or data entry can be error-prone and labor-intensive. Additionally, in customer-facing apps, allowing users to scan their meter or bill can improve engagement.
Solution: Optical Character Recognition (OCR) combined with AI object detection provides a solution to read meters automatically. Engineers have developed mobile and edge AI applications where a smartphone camera or a drone captures an image of a meter; the AI model then detects the meter display and extracts the numeric reading.
For instance, using CriticalRiver’s Insight Studio, one can read both digital meter displays and analog dial meters with high accuracy. The system employs computer vision to locate the meter in the image, apply OCR on digital readouts, or apply image segmentation for analog meters. This is accelerated by on-device or cloud-based ML models that can process images in milliseconds, enabling near real-time results.
The MLOps pipeline for this use case involves training the OCR models on diverse meter images (to handle different meter makes, lighting conditions, handwritten notes, etc.) and deploying updates as meter hardware or formats change.
Impact: Smart meter OCR drastically reduces human error and effort in meter reading. Utilities have reported improved billing accuracy by eliminating transcription mistakes – the image-based readings ensure the number on the bill matches the meter exactly.
Field technicians use these apps to document new meter installations: a quick photo, and the system captures the initial reading and meter ID via OCR, automatically populating the database. This also provides a visual proof for audit trails.
In regions where customers submit self-readings, OCR lets them simply take a photo of the meter via a mobile app; the AI reads the value and updates their account, making the process convenient and contactless. Beyond reading numbers, such applications can flag anomalies – for example, if a meter’s LCD is malfunctioning or a dial hasn’t moved (which might indicate meter failure or tampering).
By embedding these OCR models in a cloud-native analytics platform, the utility can process millions of meter images swiftly (e.g., through batch jobs or real-time APIs for field devices).
In summary, OCR and AI-driven meter reading form a practical bridge between legacy infrastructure and modern data-driven operations, ensuring no meter data is left behind in the digital transformation.

Use Case: Detecting anomalies in utility data to identify faults, energy theft, or inefficiencies in near real-time.
Context: Utilities collect enormous data from smart meters (usage data), sensors (voltage, current, temperature), and operational systems. Hidden in this data are early warnings of problems: a transformer might show subtle signs of failing, or a customer’s consumption pattern might suggest meter bypass (theft).
Manually monitoring for such issues is impractical, so anomaly detection algorithms are employed.
Solution: AI-based anomaly detection involves machine learning models (often unsupervised or semi-supervised) that learn normal patterns of usage and grid behavior, then alert when something deviates significantly.
On the grid asset side, utilities use ML models on SCADA timeseries data to catch equipment issues – for example, a sudden spike in a transformer’s operating temperature or unusual harmonic fluctuations could signal an incipient fault. These models are trained on historical normal operation data and known fault conditions to improve their sensitivity and specificity.
When an anomaly is detected, an alert can be sent to maintenance crews or fed into the asset management system to schedule an inspection.
This approach complements traditional preventive maintenance with a data-driven focus on condition-based maintenance. In one case, a utility combined infrared sensor data, vibration data, and load measurements in a cloud analytics platform to score the health of substation transformers; anomalies in those scores triggered targeted replacements before failures occurred.
On the revenue protection side, anomaly detection algorithms analyze smart meter consumption data to uncover patterns indicative of non-technical losses (NTL) like energy theft. By correlating each consumer’s usage history with weather, neighborhood trends, and technical parameters (voltage, phase balance), the AI can identify irregularities that humans often miss.
For instance, if a household’s consumption flatlines during a heatwave while neighbors’ usage rises, it could indicate meter tampering or bypassing. AI solutions have been developed to perform “home-by-home” analysis of AMI data – rather than just checking feeder-level energy balance – making it possible to isolate likely theft at the household or appliance level.
These models detect telltale anomalies: sudden drops in recorded usage, zero-consumption periods that defy weather effects, or load signatures inconsistent with the customer’s profile. Modern systems even use energy disaggregation (breaking down usage by appliance) via ML to catch subtle forms of tariff misuse (like a commercial load masquerading on a residential tariff).
Impact: The implementation of anomaly detection yields both operational and financial benefits. Grid asset anomalies caught early mean fewer equipment blowouts and unplanned outages – improving reliability indices (SAIDI/SAIFI) which are closely watched by regulators.
For example, predictive analytics on asset health has allowed National Grid to avoid around 1,000 outages annually by intervening ahead of failures, saving $7.8 million in outage costs.
In terms of revenue protection, AI-driven theft detection programs have shown remarkable results. Utilities can prioritize high-probability theft cases and dispatch inspectors with data-backed evidence, rather than random site checks.
One AI pilot in India (with similar challenges) revealed that classifying and targeting the top suspicious cases can significantly increase recovery of lost revenue.
U.S. utilities similarly benefit by reducing unaccounted energy losses, which directly improves their financial performance and reduces the burden of these losses on honest customers. Importantly, the use of anomaly detection models is a vendor-neutral practice – it relies on the utility’s own meter and sensor data, and the models can be built with open-source libraries or custom algorithms tailored to the utility’s network characteristics.
MLOps pipelines ensure these models remain effective, retraining them as consumption patterns evolve (for instance, as more EVs or solar panels come online, which change “normal” usage profiles). Over time, anomaly detection becomes an automated watchdog that fortifies both the grid’s health and the utility’s revenue stream.

Use Case: Dynamic voltage and VAR control to optimize distribution grid performance in real time using AI.
Context: Maintaining proper voltage levels across the distribution network is critical for power quality. Traditionally, utilities use devices like load tap changers, capacitor banks, and voltage regulators with preset rules or schedule-based adjustments (e.g., daytime versus nighttime settings). However, with the influx of solar PV (causing backfeed and voltage rise) and changing load patterns (EV charging clusters, etc.), static control schemes are suboptimal.
Dynamic voltage control refers to actively managing these devices based on real-time conditions to reduce losses and ensure voltages stay within limits. It’s also key to Conservation Voltage Reduction (CVR) programs, where slightly lowering voltage can save energy without affecting customers.
Solution: AI enhances dynamic voltage control by making it predictive and adaptive. Modern Distribution Management Systems (ADMS) already include Volt/VAR control modules; incorporating machine learning takes it further by continuously learning from grid data and forecasting imminent changes.
One approach is using AI models to forecast load and generation on each feeder a few minutes or hours ahead. Inputs can include weather (for solar PV output and temperature-driven load), historical demand patterns, and real-time sensor data from smart inverters or voltage sensors.
By predicting, for example, that a certain solar-heavy feeder will experience a voltage spike at noon, the system can proactively adjust capacitor banks or inverter set-points before the spike occurs. Similarly, if an evening EV charging surge is expected, the AI can preemptively raise tap changer settings to keep voltage within range. These ML models are deployed in the utility’s control center software or cloud platform, and through MLOps they are regularly refined with the latest data to improve forecasting accuracy.
Another AI technique is reinforcement learning which can be used to train control agents that learn the optimal switching of capacitors and regulators to minimize voltage deviation and line losses. The utility sets up a simulator of its network, and the AI agent learns control policies that can then be applied in the live system within safety bounds.
Impact: Dynamic AI-driven voltage control leads to a more efficient and stable distribution grid. By optimizing reactive power flow and voltage profiles, utilities can reduce energy losses (line losses drop when voltage and VARs are optimized) and enable CVR to save energy during peak times.
Customers experience better power quality (fewer voltage sags/swells), and the grid can accommodate more distributed generation without voltage violations. A real-world example involves cloud-hosted AI predicting solar PV output on a high-penetration feeder; armed with a 15-minute-ahead forecast, operators were able to schedule switching devices and energy storage to prevent a voltage excursion, avoiding potential customer complaints or inverter trips.
Over a broader scale, studies have shown that intelligent Volt/VAR optimization can yield substantial energy savings and peak reduction, which is why many state regulators encourage or even require utilities to implement CVR programs.
AI makes those programs more effective by adjusting to conditions in real time rather than relying on seasonal settings. Additionally, dynamic voltage control aids in integrating renewables and electric vehicles – essentially acting as an automated grid-balancing mechanism that maintains stability despite the variability introduced by these new resources.
This capability will grow in importance as renewable portfolio standards rise and more DERs come online. By using AI in volt/VAR control, utilities ensure they meet regulatory voltage standards and reliability metrics while also operating the grid closer to optimal efficiency, which translates to cost savings and deferred infrastructure upgrades. In summary, dynamic voltage control exemplifies how cloud-native AI tools and traditional grid controls merge, enabling a smarter grid that adjusts itself continuously for optimal performance.

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