Power meter sensor from BTE16-18 & Arduino Nano V3

I have an old fashioned power meter with the spinning disk but wanted to get my power usage into Cacti.

I fashioned this cheapo sensor and it works ike a charm.

Sensor used:
BTE16-18 IR Reflection sensor from Aliexpress (https://goo.gl/4wDt8Z $0.78)

Connections:
Sensor->Arduino
VCC -> 5V
GND -> GND
OUT -> Pin D2
RST of the arduino is bridged to GND with a 10µF capacitor to prevent the Arduino from resetting when a serial conection is established (this works on a Nano V3 but diff