Tantalus Systems Sees TRUSense Adoption Outpace Expectations at Utilities

Key Points

• TRUSense adoption is ahead of expectations: 77 utilities had ordered and begun deploying the platform by the end of the second quarter, including 37 that completed pilots and committed to proceed.
• The platform offers a lower-cost retrofit path: Utilities can add TRUSense behind existing meters, including systems supplied by competitors, allowing them to modernize grid capabilities without replacing installed infrastructure.
• Tantalus sees expansion beyond metering: The company is targeting power-quality monitoring, outage analytics, demand response and behind-the-meter load control, while noting that 90% of trailing-12-month revenue came from existing customers.

Tantalus Systems TSE: GRID President and CEO Peter Londa said the company is seeing stronger-than-expected adoption of its TRUSense Gateway platform, as utilities seek ways to modernize grid infrastructure without replacing existing metering systems.

Speaking with ATB Cormark analyst Nicholas Boychuk at the Planet MicroCap conference, Londa addressed investor attention on the company’s second-quarter book-to-bill ratio, which fell below one. He said the metric can fluctuate materially over short periods because utility sales cycles often extend beyond 18 months and contracting approvals may cross quarter-end dates.

“I’m not as sensitive to it on a 90-day window,” Londa said. Over the past 14 quarters, Tantalus’ book-to-bill ratio has ranged from 0.4 times to 2.5 times, he said. The company also reported that eight utilities were in contracting as of June 30, compared with an average of roughly 20 new utility conversions annually.

TRUSense adoption exceeds internal expectations

Londa said 77 utilities had ordered and begun deploying the TRUSense Gateway as of the end of the second quarter, exceeding the company’s internal expectations. Of those utilities, 37 had completed pilot programs and all had committed to proceed, although three were awaiting funding, he said.

The TRUSense Gateway can support several grid-management applications. Its initial use has largely been as a collector for utility metering infrastructure, Londa said. Unlike communications equipment that may need to be installed on utility poles, the device plugs into a meter socket, potentially reducing installation and maintenance requirements.

“Every utility that has selected Tantalus since we commercialized the TRUSense Gateway is using the TRUSense Gateway as part of a broader metering infrastructure upgrade,” Londa said.

He added that the company views meter upgrades as an entry point for later sales involving power-quality monitoring, analytics and behind-the-meter load control. Tantalus has reported a 99% customer retention rate over the past 15-plus years, according to Londa.

Retrofit opportunity for existing utility systems

A central part of Tantalus’ pitch is that its equipment can be added behind meters already in service, including meters supplied by other vendors. Londa said that capability is particularly relevant as utilities face affordability pressures, higher financing costs and longer capital-spending timelines.

He cited United Illuminating in Connecticut as an example of a utility that had deployed a competitor’s metering system several years earlier. According to Londa, state regulators would not support replacing that infrastructure, but the TRUSense Gateway could provide a way to add grid visibility and capabilities while retaining the existing meters.

“The TRUSense Gateway becomes the bridge to address an increasing number of issues while extending the life of that metering infrastructure,” Londa said.

Data, power quality and load management

Londa also described how the company’s technology could help utilities monitor outages, voltage conditions and other power-quality issues. He referenced a visit to Bolivar, a utility in western Tennessee served by the Tennessee Valley Authority, where grid congestion can require utilities to reduce demand.

According to Londa, Bolivar had recorded 3.2 million aggregate outage minutes through the first nine months of the year, or about six hours per meter. He said the utility’s TRUSense deployments could help identify momentary outages and potential vegetation-management issues, while also enabling more targeted responses than shutting down broad sections of the grid.

Over time, Londa said utilities could use the platform to manage demand through assets such as water heaters, thermostats and batteries. He described a progression from metering upgrades to power-quality analytics and eventually behind-the-meter control.

“Ninety percent of our revenue over the trailing 12 months through June 30 was from our existing customer base,” Londa said, adding that the company does not have material revenue concentration.

On deployment density, Londa said a TRUSense Gateway can collect data from as many as 250 nearby meters, depending on terrain, vegetation and network conditions. For power-quality monitoring, he said utilities may begin with a smaller number of devices per feeder before expanding deployments as the business case develops. In some applications involving pole-mounted transformers or behind-the-meter assets, deployment ratios could ultimately move closer to one device per transformer or per controllable asset.

Looking further ahead, Londa said the data gathered from connected devices could support virtual-power-plant applications and participation in demand-management opportunities created by rising electricity use from data centers. He said the company sees a potential role in helping utilities shed load at the asset level rather than relying on broader grid interruptions.

About Tantalus Systems (TSE:GRID)

Tantalus is a technology company dedicated to helping utilities modernize their distribution grids by harnessing the power of data across all their devices and systems deployed throughout the entire distribution grid. The Company offers a grid modernization platform across multiple levels: intelligent connected devices, communications networks, data management, enterprise applications and analytics. Our solutions provide utilities with the flexibility they need to get the most value from existing infrastructure investments while leveraging advanced capabilities to plan for future requirements.

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