Smart metering at the residential level, an important component of a smart grid system, is often limited by the staggering cost of meter replacement, the required system that enables two-way communication between the utility and the customer and complete reconfiguration of billing systems. This paper illustrates an economically innovative approach for smart metering that takes advantage of existing infrastructure by installing new, relatively inexpensive “gateway” devices in the customer's home, allowing two-way communication between the gateway and the existing AMR (automatic meter reading) meters, and between the gateway and the utility via the customer's broadband internet service. The system design was developed by Tendril Networks, Inc, and will be implemented by NSTAR as part of its smart grid pilot program, The format of the pilot and expected goals and outcomes are detailed, as are the technical advantages and disadvantages of this customer gateway-based method versus traditional smart metering systems.