1. A transponder Inside each customer-owner's meter provides information about consumption, demand and billing. Each meter has a unique bar code that allows it to be identified by the system. The meter communicates with the equipment at the substation through existing power lines.

2. At the substation, equipment obtains information from the meters; that information is sent from the substation to a computer at Walton EMC's headequarters via telephone lines.

3. At Walton EMC, a computer collects readings from the substation and imports the information into the billing system.

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