The Backlash Against “SmartMeters”

A "SmartMeter" mounted on a Fresno home. (Photo: Sasha Khokha)

A "SmartMeter" mounted on a Fresno home. (Photo: Sasha Khokha)

The California Public Utilities Commission says it will name a consultant sometime this week to start testing PG&E digital “SmartMeters,” which customers have blamed for spikes in their utility bills.

The announcement came after state Senator Dean Florez (D-Shafter) held a press conference in Bakersfield to question why the CPUC hadn’t taken action. Last October, the Commission agreed to quickly hire an independent contractor to test the meters.
Florez got involved in the flap last year after some of his Central Valley constituents saw their bills triple with the new meters, even if customers bought energy saving appliances, or in some cases, when no one was living at the home. “The biggest savings recognized so far has been to PG&E, who were able to lay off numerous meter readers,” said Florez in a press release.

PG&E has blamed the higher bills on rate increases and hot weather (not a new phenomenon in the Central Valley, where people coddle their air conditioners as if they were household pets).

The Bakersfield Californian reported last month that the backlash here in the Central Valley is catching the attention of industry analysts and utilities nationwide, who want to avoid a spreading backlash against the new technology.

One of the groups sounding a warning is the Division of Ratepayer Advocates, an independent consumer advocacy division of the CPUC. Last week, it advised the Commission to reject a Southern California Gas application to fund its own $1 billion smart meter program. DRA argued not that utility bills would spike with new digital meters, but that money could be better spent on energy efficiency measures and appliances. DRA says SoCalGas is overestimating how much customers will reduce their usage if they can see a digital display of how much energy they’re paying for.

Part of the concept behind smart meters is to help utilities with “demand response” strategies; providing timely feedback to customers, who can use their home computers to see exactly how and when they’re using power, customers might then alter their consumption patterns to avoid peak demand periods, and cut utility bills.

But some of that strategy has already backfired. The San Francisco Chronicle recently reported that a document PG&E filed with the CPUC says the advanced digital smart meters will let the company shut off power to more customers who fall behind on their bills, since they can do so without having to send a crew to a customer’s home. The meters may be smart but consumer advocates say it’s a dumb strategy that will make it easier for the utility giant to leave customers out in the cold.

  • Concerned Reader

    You know what scares the heck out of me? What if the exact opposite has caused utility bills to spike in SmartMeter areas, namely, that mechanical meters have been grossly under-reporting energy usage? That scares me because suppose bills spike everywhere SmartMeters are installed, they audit the meters… and discover the meters are accurate to a fault! Now does that mean PG&E can legally go back, estimate what residences were under-charged over the years, and hit residences with huge assessments, sort of like county tax assessors have charged homes erroneously under-assessed in taxes? Imagine the legal nightmare this would cause in the midst of a recession that is stressing homeowners to the max.

  • http://www.theleapfroghouse.com Charlie in Oregon

    Seems a bit alarmist at this point to use “backlash”, when I haven’t seen ANY data showing the number of offended customers, or whether any of them are getting hit (for the first time) with (poorly communicated) time-of-day charges.

    Got data??

  • Pingback: Smart meetering, not wanted by all « Energy, Technology, & Policy