State regulators have approved an opt-out program for Pacific Gas & Electric customers who don’t want a new digital SmartMeter installed on their property and those who want their old analog meter back.
On Feb. 1, 2012, the California Public Utilities Commission (CPUC) finalized terms to modify PG&E’s SmartMeter Program to provide an opt-out option, and at what cost.
Under the plan, opt-out customers will be charged a one-time fee of $75 and a monthly charge of $10. Customers enrolled in the CPUC’s low-income program who opt-out will be on the hook for an initial $10 fee and a monthly charge of $5.
The new fee schedule charges roughly half of what PG&E originally sought for opt-out customers in a proposal to the CPUC in March 2011.
PG&E’s SmartMeter Program integrates energy metering into a modern digital infrastructure. However, public outcry over the new system—including complaints and concerns over perceived invasions of privacy and health risks—forced the company and its regulators to take a closer look at alternatives, including the opt-out program.
CPUC Commissioner Timothy Alan Simon said in a press release that the finalized opt-out policy is a “great example of how public initiative and participation can result in better regulatory policy.”
“We believe in individual choice when comes to meters in our customers’ homes and we support the [CPUC’s] decision,” PG&E Spokesman Greg Snapper told the Sun.
According to Snapper, the additional cost for opting out of the digital meters allows the utility to compensate itself for essentially creating an infrastructure capable of reading both digital and analog components.
He added that allowing a percentage of its customers to keep analog meters could inevitably lead to rate increases for all PG&E customers, though the utility has yet to request such a rate hike from the CPUC.
According to PG&E, the new fees will be used to cover the costs of installing analog meters on homes that already have smart meters. These fees will also cover the labor costs of meter readers who must read the analog meters each month. Customers who already have an analog meter and don’t want to switch to a SmartMeter aren’t exempt from the fees and will essentially have to pay for meters they already have.
PG&E revealed that about 90,000 customers signed up on the “delayed installation” list to avoid having a SmartMeter installed. This delay list was established after millions of SmartMeters had been put in place, and it doesn’t include customers who have a SmartMeter but want to switch back—an indicator that Smart Meters are not exactly a hit among Californians.
PG&E and CPUC maintain SmartMeters are supposed to help the environment because they reduce the need to build new power plants; they allow for faster outage detection and restoration of service; and they increase privacy for customers because no on-site visits are required to read the meters.
Some Californians, however, disagree, claiming that SmartMeters have significant health risks, allow PG&E to monitor household energy use remotely, and cost way too much for inaccurate readings.
Customers who elected to delay the installation of the new meters will have their new meters installed unless they notify PG&E they want to participate in the opt-out option. Customers can opt-out by calling (866) 743-0263, or filling out the online form at pge.com.
As of press time, roughly 130,000 meters have been installed in San Luis Obispo County since the program began in 2006.
This article appears in Feb 9-16, 2012.