In the latest installment in the saga over customer engagement failures and smart-meter backlash, the following statement from California Public Utilities Commission (CPUC) President Michael Peevey arrived in Fortnightly’s inbox last night , along with a link to a video recording of Peevey’s statement:

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Commissioners and members of the public, I recognize that we once again have a large number of speakers who want to address the Commission on the subject of smart meters and their concerns about wireless radio frequency emissions from these devices.

Before hearing from this morning’s speakers, I would like to say a word about the subject.  I think what I have to say might calm some of the emotion around this issue.

First, I want to make an observation:  Virtually every speaker who has addressed this subject has been a PG&E customer.  We have not had complaints about radio frequency emissions or other concerns about smart meters from customers of other utilities in California.  For example, PG&E’s neighboring utility in Sacramento - the Sacramento Municipal Utility District - has not had any sort of customer complaints of the kind we’ve been hearing from PG&E customers.  Nor have the southern California utilities.

Nonetheless, given the continued strong interest in this issue in parts of Northern California, I have spoken directly with PG&E’s president and asked him to bring to this Commission a proposal or a series of proposals that will allow customers with an aversion to wireless devices the option of being metered without the use of wireless technology.

In other words, I am directing PG&E to prepare a proposal for our consideration that will allow some form of opt-out for customers who object to these devices at reasonable cost, to be paid by the customers who choose to opt-out. I’ve asked to have it within two weeks.

Obviously, I cannot prejudge how this Commission will evaluate any such proposal by PG&E, nor can I predict what PG&E itself will propose.  But I think it’s clear the time has come for some kind of movement in the direction of customer opt-outs.

Thank you.

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Posted: March 11th, 2011 under Current News, Smart metering, customer engagement, dynamic pricing, regulation, smart grid.
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Stops short of approving permanent smart grid plan.

Courtesy of Utility Regulatory News #3997: In a general rate case proceeding in which it authorized Consumers Energy Co. to increase its electric rates by $145.7 million, the Michigan Public Service Commission deemed it reasonable for the utility to continue with those smart grid and advanced metering infrastructure (AMI) projects presently permitted under the utility’s AMI/smart grid pilot program. However, the commission refused to transform the pilot into a permanent program, finding that cost/benefit data from the trial run are not yet sufficient to support permanent deployment.

The commission said that although it has a “generally favorable” view of AMI and smart grid initiatives, it is concerned about the “staggering costs” imposed on ratepayers under such plans. The commission commented that it feared that AMI vendors ultimately will benefit more from the programs than will customers. The commission also remarked that it was aware of instances where the utility had forgone opportunities to collaborate with other companies in customizing AMI software, which efforts could have greatly reduced program costs. The commission stated that while its decision on whether to go forward with full deployment is not dependent on a formal cost/benefit analysis, Consumers Energy must provide documentation of the reasonableness of its pilot program costs.

Citing the questions it already has about the company’s efforts to minimize certain costs, the commission cautioned that there are no guarantees of full cost recovery. For the full story, subscribe to URN.

Posted: December 23rd, 2010 under Smart metering, dynamic pricing, efficiency, regulation, smart grid.
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In report to CPUC, Structure Group deems meters OK, but criticizes utility for poor communication

Weekly Update Courtesy of Utility Regulatory News #3988: Reviewing the results of a report it had commissioned after fielding more than 1,300 customer complaints about smart meters and associated high bills, the California Public Utilities Commission has concluded that the meters, as well as their related software and billing systems, were operating within industry norms and were accurate within approved standards.

The subject meters had been deployed by Pacific Gas & Electric Co. (PG&E) in the San Joaquin Valley area, with complaints about high bills ensuing  almost immediately upon their installation. In response to such inquiries, the commission had enlisted the services of The Structure Group (TSG) to evaluate and analyze the new advanced metering devices. After conducting laboratory tests, field tests, and end-to-end system tests, TSG found no problems with the meters and their connected systems. According to the TSG report, the metering devices were working properly and customer billings reflected the data collected from the meters. However, the audit team faulted PG&E for its initial response to consumer complaints, finding that its action in cancelling numerous bills, then rebilling customers without explanation, caused unnecessary confusion.

The utility also was criticized for failing to adequately communicate with and educate its customers about the new meters prior to rolling them out. A lack of appropriate communication protocols was also cited as being behind customer complaints of unsatisfactory service and delayed responses to their complaints. The audit disclosed that it took PG&E an average of 4.5 months to resolve smart meter-related billing disputes. For the full story, subscribe to URN.

Posted: October 8th, 2010 under Current News, Smart metering, Uncategorized, customer engagement, dynamic pricing, smart grid.
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Mass. DPU delays decision on investments

 Weekly Update courtesy of Utility Regulatory News #3981: Pending receipt of more information about the marketing and evaluation elements of an electric utility’s plan for a smart grid pilot project, the Massachusetts Department of Public Utilities has postponed a decision on approving the plan. The plan was submitted jointly by Massachusetts Electric Co. and Nantucket Electric Co., both doing business as National Grid. The filing was made pursuant to a state law, the Green Communities Act, which requires every electric utility to develop a smart grid pilot program.

The project outline sponsored by National Grid was far more expansive than required by law, however. Whereas the statute called for a minimum of 0.25% of an electric utility’s customers to participate in any smart grid pilot, National Grid’s proposed program would include almost five times as many customers as necessary to meet the statutory threshold. Its smart grid plan also incorporated installation of more automation on its own distribution end of the grid than required.

Several parties took issue with the size, scope, and scale of the utility’s plan, arguing that the purpose of the pilots is to gather test data, for which such a large number of participants was not statistically necessary. The department, however, said that it saw no need to reduce the size, scope, or scale of National Grid’s pilot, averring that a larger-scale deployment of smart grid technologies could produce more accurate cost/benefit analyses of the technologies. Nevertheless, the department declined to approve the pilot as filed, finding that the project proposal was incomplete as to how the utility expected to carry out its associated marketing, education, and outreach functions and how it planned to evaluate the effectiveness of the program.

National Grid was given 90 days to provide the department with details on those two aspects of the project. Subscribe to URN for the full story.

Posted: August 13th, 2010 under Smart metering, dynamic pricing, efficiency, regulation, smart grid.
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Nissan to collaborate with SDG&E

Weekly Update courtesy of Utility Regulatory News #3979: Continuing its practice of promoting energy policies that contribute to environmental improvements, the California Public Utilities Commission has authorized an electric utility, San Diego Gas & Electric Co. (SDG&E), to establish temporary experimental rates for plug-in electric vehicles. The rates are part of the utility’s ongoing Pricing and Technology Study, which is being conducted in cooperation with Nissan and ECOtality, Inc., a renewable energy company that specializes in commercial applications of advanced clean energy technologies. Under the associated new rate program, the first 1,000 consumers in San Diego who purchase a new Nissan LEAF electric vehicle will receive free home charging equipment and will be eligible for special time-variable plug-in rates. The utility said that the main hypothesis behind its study was that time-of-use rates for electric vehicle owners would induce them to shift their recharging activities to off-peak periods. The commission agreed that finding out how consumers respond to price signals could be key to successful reintroduction of electric vehicles in the state. The commission added that the study also should help identify any potential safety problems related to recharging as well as any incompatibilities between charging equipment and SDG&E’s infrastructure. The commission noted that the electric vehicle project will be funded in part by a stimulus grant from the U.S. Department of Energy to ECOtality. That grant, totaling $99.8 million, will be matched by private investments. The stimulus funds are expected to be sufficient to cover the costs of the charging equipment for those first 1,000 LEAF purchasers. For the full story Subscribe to URN.

Posted: August 13th, 2010 under Smart metering, dynamic pricing, electric vehicles, energy policy, green energy, regulation, renewables, smart charging, smart grid.
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