Abstract: An optical encoder is retrofitted on an existing electric kilowatt utility meter for providing a host of data collection and processing functions performed at the meter site. The encoder permits local observation of the meter dials, and enables remote reading of the dials by use of microprocessor control circuitry as well as providing remote programming of encoder inputs and outputs, demand metering, and period metering. The outputs of successive decades of a polydecade meter are read into the microprocessor and the output data is transmitted via a serial communications link to the remote facility.