Posted on May 11, 2012 by Linda R. Evers

Maryland PSC Considers Smart Meter Opt-Out

It may not be an epidemic but the number of states to consider smart meter opt-outs is spreading. No one doubts the importance of reliability and the need to update the electric grid. However, it is a surprise to the industry that due to a vocal minority, many utilities face having to upgrade while retaining the capability to service analog meters. Smart Grid Legal News has reported on the several states to consider or implement some form of smart meter opt-out. On May 22, 2012, the Maryland Public Service Commission will hold legislative-style hearings on whether to require utilities to offer customers an opportunity to opt out of receiving a smart meter. The Notice states the Commission has received correspondence from ratepayers expressing concern about health and privacy issues associated with smart meters.

In its comments, Commission Staff provides a nice overview and analysis of the concerns. At the end of the day, Staff empathizes with the concerns of citizens but for good factual reasons does not support an opt-out. One reason being:

An Opt-out provision makes it impossible for utilities to achieve such benefits as theft of service detection and a full understanding of grid usage (for example, voltage levels at the premises and distribution transformer loading) for those customers who opt out.
- Staff comments, page 12

I think Commissions should address concerns of citizens in their states, and hearings like this are positive. More open forums to discuss the issues related to smart meters with those outside of the industry (customers) are necessary. Utilities who have not yet deployed smart meters take heed: Communicate early and often with your customers. A bill insert after your regulatory approval is not enough. This area is crying out for more communication. Fears should be addressed with factual information. Hopefully after hearing the concerns, there will be a new wave of Commission decisions based on facts instead of the fears of a few. While I generally don’t like to hear it, it will be refreshing to hear “NO” for a change.

Posted on May 03, 2012 by Michael A. Gruin

The Smart Utility Grid as a Driver of Rural Broadband?

The FCC, state utility commissions, rural customers and others have bemoaned the slow pace of rural broadband build-out and adoption. Some studies suggest that barely 50% of rural households in the U.S. currently utilize a broadband connection. Broadband adoption is an issue, but clearly the unavailability of fast and reliable broadband networks is a major source of the problem. Telecommunications carriers and broadband providers consistently remind regulators that it is simply not cost-effective to build out broadband networks in many rural areas in the U.S. The American Recovery and Reinvestment Act of 2009 and the FCC’s new “Connect America” initiative both include multi-billion dollar funding streams to address the high cost of rural build-outs. But the results of such government sponsored initiatives have been mixed at best, and it is unclear when ubiquitous broadband will arrive for the roughly 18 million rural households currently without it. Absent a critical mass of customers, many rural areas will likely be without broadband for the foreseeable future.

Utility smart grids could provide the critical mass needed to kick start rural broadband build-outs.

A new whitepaper by the National Telecommunications Cooperative Association (“NCTA”) highlights the potential game-changing impact the smart utility grid could have on the rural broadband problem. The whitepaper, entitled “The Smart Rural Community,” argues that the smart grid can help drive the expansion of broadband to underserved rural areas. NCTA encourages partnerships between rural utility companies and broadband companies to “leverage each others' strengths and share resources.” The NCTA whitepaper highlights one of the less-talked-about positive attributes of the smart utility grid: the smart grid as a driver of broadband build-out. It may be cost prohibitive to build out expensive broadband networks in many rural areas in order to serve a handful of households, some of which may not even choose to adopt broadband. However, if broadband providers partner with existing gas, water and electric utilities on smart grid projects, the network resources constructed for the smart grid projects could be leveraged to build the ubiquitous, fast and reliable networks that policymakers are struggling to get built.

Posted on April 24, 2012 by Linda R. Evers

Southern California Edison and San Diego Gas & Electric Now Offer Smart Meter Opt-Out

The California Public Utilities Commission (“CPUC”) recently modified Southern California Edison's (SCE) and San Diego Gas & Electric's advanced metering programs to include an option for those residential customers who do not wish to have a wireless Smart Meter installed at their location. Customers participating in the opt-out option will be assessed an initial fee of $75 and a monthly charge of $10 thereafter. Customers enrolled in the CPUC’s low income program (California Alternate Rates for Energy (CARE)) electing to opt-out will be assessed an initial fee of $10 and a monthly charge of $5. The CPUC cautioned that the initial fee and monthly charge are interim to allow residential customers to begin selecting the opt-out option immediately. The costs are subject to adjustment upon conclusion of a second phase where issues concerning the actual costs associated with offering an analog opt-out option will be addressed. The opt-out option is for residential customers only; the Commission declined a request to allow commercial customers an opt-out option. The Commission explains in both decisions that the opt-out option is a service.  

This opt-out option is a service because the standard for metering has been transitioned throughout the country and for the most part the world from the older technology, analog meters, to today’s technology, smart meters. In this decision we are not reversing that transition, however, we do approve an option for those customers who, for whatever reason, would prefer to not have a wireless smart meter. …As a result, this decision further finds that customers electing the opt-option shall be responsible for costs associated with providing the option.

Posted on April 20, 2012 by Linda R. Evers

Pennsylvania PUC Supports Green Button

Green Button is an industry-led effort that allows electricity customers to download their household or building energy-use data in a consumer- and computer-friendly format. PaPUC Chairman Powelson and Commissioner Witmer recently issued a statement encouraging Pennsylvania electric utilities not already involved to take part in this important initiative that empowers customers. Green-Button-enabled web and smartphone applications promise to help consumers choose the most economical rate plan for their use patterns. With this information at their fingertips, consumers would be enabled to make more informed decisions about their energy use and, when coupled with opportunities to take action, be empowered to more actively manage their energy use. Furthermore, making this information available in standardized file format will help spur innovative new consumer applications and devices. Here are just a few ways the Green Button might be put to use today:

  • Insight: entrepreneur-created web portals to analyze usage and provide actionable tips;
  • Heating and Cooling: customizing thermostats for savings and comfort;
  • Education: community and student energy efficiency competitions;
  • Retrofits: improved decision-support tools to facilitate energy efficiency retrofits;
  • Verification: measurement of structural energy efficiency investments;
  • Real Estate: energy costs for tenants and/or new home purchasers; and
  • Solar: optimizing the size of rooftop solar panels.

Currently, the following 15 utility providers formally support Green Button:

Posted on April 13, 2012 by Linda R. Evers

PUCT Staff Recommends against Emergency Smart Meter Rulemaking

The Public Utility Commission of Texas received a joint petition filed by 119 Petitioners, requesting the PUCT initiate an emergency and ordinary rulemaking to prohibit further deployment of smart meters. The petition also wanted the PUCT to require the removal of smart meters already installed. Pleading in the alternative, Petitioners ask the Commission to formulate rules that provide for the safe implementation of smart meters and related equipment as well as provide customers the ability to decline participation in the Advanced Metering System program. Two hundred and seventy seven comments were filed regarding this petition with most of the comments expressing health and privacy concerns regarding smart meter deployment. 

Oncor and other utilities opposed the petition. Oncor highlighted the benefits of smart meters which include the ability for customers to choose time-of-day rates, enhanced demand response programs, quicker outage detection and restoration and the ability to easily change retail electric providers.   

Because the petitioners did not propose rule language that would permit the Commission to publish a rule, Staff recommends denial of the petition. However, Staff notes that the Commission has received extensive comments and concerns similar to those made by Petitioners in the PUC’s current Proceeding to Evaluate the Feasibility of Instituting a Smart Meter Opt-Out Program (Project No. 40190) and an examination of these issues will occur in that proceeding.

Posted on April 05, 2012 by Linda R. Evers

A New Social Energy App Has Landed! Facebook Helps Customers Save Money

Facebook, the Natural Resources Defense Council (NRDC) and Opower along with 16 utilities recently launched a social energy app to help customers become more energy efficient. Leveraging the Facebook platform, the app allows people to quickly and easily start benchmarking their home’s energy usage against similar homes, compare energy use with friends, enter energy-saving competitions and share tips on how to become more energy efficient. With an initial reach of 20 million households, the effort is one of the most significant to date, enabling people to take action and become more energy efficient.

Although anyone can use the app by logging in with a Facebook account, customers within the 16 participating utilities’ territories listed below will be able to take advantage of the app’s “Utility Connect” feature, allowing customers to choose to have their energy use automatically update each month. These utilities and energy providers include:

  • Austin Utilities (Minnesota)
  • Burbank Water & Power
  • ComEd
  • Connexus Energy
  • Consumers Energy
  • Direct Energy (coming soon in 2012)
  • Glendale Water & Power
  • Loveland Water and Power
  • National Grid (New York and Massachusetts)
  • New Jersey Natural Gas (coming in 2012)
  • Owatonna Public Utilities
  • Pacific Gas and Electric Company
  • City of Palo Alto Utilities
  • PPL Electric Utilities Corp.
  • Rochester Public Utilities
  • Utilities District of Western Indiana REMC

Hey, where is my utility?! Okay, I am feeling left out of the coolest thing to hit the energy scene. Hopefully the list of participating utilities will expand. With the growing need for energy efficiency and customer engagement by utilities, this product is a home run…just in time for Opening Day!

Posted on March 30, 2012 by Linda R. Evers

DOE Seeks Feedback on Methods to Lower the Cost of Solar

The U.S. Department of Energy’s (DOE) SunShot Initiative issued a request for information ("RFI") seeking feedback from installers; utilities; manufacturers; state, municipal, and local governments; financial institutions; and other stakeholders regarding methods to dramatically drive down the price of residential solar energy systems. The RFI contains a dozen questions that when answered, DOE believes will help provide it with sufficient background information to potentially design a funding opportunity, competition, challenge or race to accelerate widespread solar deployment. Comments are due April 11, 2012. Some of the questions are:

  • If you were to include incentives to reach a $2/W installed price at the residential level, what would you estimate the following incentives to provide (measured in $/W)?
    • Federal Investment Tax Credit
    • Modified Accelerated Cost Recovery System (i.e. accelerated depreciation)
    • State and Local Incentives (quantify and name)
    • Other (quantify and name)
  • Given a business as usual context (assuming all current incentives), when do you think $2/W total installed price at the residential scale will be achieved? 
  • What key players would be needed to form a team to achieve $2/W? i.e. What types of organizations would need to collaborate to ensure the target is reached?
  • What incentives – that are not tax credits, rebates or other financial incentives – could motivate solar installers, municipalities and utilities to drive down costs further? e.g. Would highly publicized, national recognition as America’s top solar installer or most solar friendly community be a strong motivator to accelerate price reductions? Why or why not?
Posted on March 23, 2012 by Linda R. Evers

SDG&E Applies Privacy by Design to Smart Grid Dynamic Pricing Project

According to SDG&E, customer choice is a critical driver of its smart grid deployment plan. Many of SDG&E customers are adopting rooftop solar and PEVs at rates that are among the highest in the nation. These customers are seeking real-time information about their energy use and rates so that they can make informed decisions. With smart meters already deployed throughout most of its service territory, SDG&E is leveraging the skills of our Canadian friends at the Ontario Information and Privacy Commission to apply Privacy by Design to its Dynamic Pricing Project.

Privacy by Design, often referred to as PbD, is a concept developed by Commissioner Ann Cavoukian to address the effects of information and communication technologies. It has seven foundational principles:

  • Embedding privacy requirements into smart grid designs and overall project framework
  • Ensuring privacy is the default stance of all programs
  • Making privacy an essential design feature in smart grid systems and practices
  • Solidifying privacy as a core objective of all smart grid projects
  • Incorporating privacy end-to-end throughout the entire life cycle of any personal information
  • Bolstering visibility and transparency for smart grid efforts with consumers
  • Focusing on consumer privacy as a core foundational requirement

To successfully achieve the objectives surrounding the Smart Pricing Program, SDG&E established a Project Management Office (PMO) dedicated to the implementation of the Smart Pricing Program as part of its Customer Service Division under the leadership of the Chief Customer Privacy Officer. At the project level, a privacy team and privacy champions were established as essential organizational components to integrate privacy best practices.

Posted on March 14, 2012 by Linda R. Evers

Georgia Senate Passes Smart Meter Opt-Out Bill

Rather than let the experts at the Georgia Public Service Commission address the issue, lawmakers in Georgia have decided to address consumer smart meter concerns with the passage of Senate Bill 459. What is most concerning about the bill is that it fails to acknowledge the financial implication of smart meter opt-outs. Well, that is not completely true. This bill goes where no state has gone before in that it recognizes there could be fiscal issues related to opting out of smart meters; it simply refuses to apportion any responsibility on those making the opt-out decision. Below is key language from the bill:

(i) Notwithstanding any other provision of this title, the commission is authorized to provide that consumers may elect not to use smart meters of any investor owned electric light and power company subject to regulation by the commission; provided, however, that the commission shall not create and regulate a surcharge for consumers who make such an election.

Posted on March 08, 2012 by Linda R. Evers

Energy Efficiency Program Funding Available

The Office of Energy Efficiency and Renewable Energy recently issued a Funding Opportunity Announcement (“FOA”) that requires the recipient to provide only twenty percent of the total budget. Funding will focus on three areas of interest: 

  1. Advancing Energy Efficiency in Public Facilities that will assist states to develop holistic, whole-building, deep retrofit programs or strategies across as broad a segment of the state’s public building portfolio as possible to achieve significant energy and cost savings.
  2. Stimulating Energy Efficiency Action that will assist states in generating the necessary policy and program frameworks to support investment in cost-effective energy efficiency and establish or increase a statewide energy savings goal by calendar year 2015.
  3. Improving or Developing A Fee-Based Self-Funded Public Facilities Energy Retrofit Program that will assist states in developing/improving and implementing a comprehensive and well-designed self-funded program which relies on a fee-for-services model that can successfully be used to retrofit public facilities statewide across many sectors (e.g., state buildings, municipal buildings, National Guard assets, school districts, water and wastewater treatment facilities, street lighting, etc.).

In accordance with 10 CFR 600.6(b), eligibility for award for Areas of Interest 1, 2 and 3 is restricted to the 50 States, the District of Columbia, American Samoa, Guam, the Northern Mariana Islands, Puerto Rico and the US Virgin Islands. Applications must be submitted by the State Energy Office (“SEO”) or other agency responsible for administering the State Energy Program pursuant to 10 CFR 420, although States may work in collaboration with non-State entities. Non-State entities interested in collaborating with their respective State Energy Office must contact their respective SEO. It is a great opportunity for states, advocates and utilities to work together.