The California Public Utilities Commission on Wednesday morning approved a proposal to allow Pacific Gas & Electric Co. customers around the state to opt out of having wireless SmartMeters.
The proposal will charge a one-time opt-out fee of $75 and $10 a month, or for low-income customers $10 for the one-time fee and $5 a month. There also is an unspecified “exit fee” to leave the opt-out program.
“We really welcome this analog decision from the commission,” PG&E Senior Vice President and Chief Customer Officer Helen Burt said Wednesday afternoon.
So far about 9 million of the meters have been installed statewide, with 900,000 yet to be installed, Burt said.
PG&E spokesperson Brandi Ehlers told Lake County News that the company has about 40,000 electric meters in Lake County, with 31,000 SmartMeters installed so far.
According to CPUC documents, PG&E estimates the costs to implement the opt-out program to be $113.4 million for the years 2012 and 2013 if an estimated 148,500 customers elect to take part.
Those costs are to be covered by fees required of customers who choose to have the radio transmitters turned off in the SmartMeters, according to the decision.
In December PG&E asked the CPUC to also allow customers to choose to have the older-style analog meters, which must be read manually. The CPUC subsequently revised its decision to include that option.
Critics of the opt-out plan have called it discriminatory against people who can’t have the wireless meters due to health issues.
The vote followed close to two hours of public comment, much of it dedicated to health, privacy and other concerns related to SmartMeters.
Even so, the vote was greeted with rage by some audience members, with one woman shouting, “This is a crime against humanity.”
After numerous people began to chant in opposition to the decision, Commission Chair Michael Peevey had security clear the meeting room at its San Francisco headquarters.
It was Peevey who, last March, asked PG&E to create the opt-out proposal in the face of mounting public criticism over SmartMeters, which are being deployed as a part of a “smart grid” upgrade of California’s energy system.
Not just consumers have raised issues; local governments around the state – including the county of Lake, and the cities of Lakeport and Clearlake – have passed temporary moratoriums on SmartMeter installations until more research was done on public concerns.
In December, County Counsel Anita Grant submitted a comment on the proposed decision, asking that a vote be put off until more hearings are held to allow additional public comment.
Grant raised issues with charging people whose health issues make it necessary to opt out, also pointing out that the SmartMeter deployment lacked an environmental impact report, as Lake County News has reported.
Last month, the Lake County Board of Supervisors signed a petition joining several Bay Area counties to ask the CPUC to take more time to consider the proposal before taking a vote.
In introducing the proposal Wednesday morning, Peevey said, “This is a different perspective and I hope people will carefully listen.”
Peevey said that two weeks ago the White House sent President Obama’s chief technology officer, Aneesh Chopra, to California in support of the “Green Button” initiative, meant to support the development of Internet- and mobile phone-based technologies to support reduced energy usage.
Peevey said at that time the CPUC was recognized for its SmartMeter deployment, part of a larger effort to create a smart grid.
“Frankly, we are at the beginning of implementing this national vision in this state,” said Peevey, adding that the initiative will result in a “fully empowered energy customer.”
In 2009, President Barack Obama signed the stimulus package, which Peevey said included $4.3 billion for smart technology investment. Most of that money, he said, went to states looking to deploy SmartMeters.
So far, 25 states have deployed the devices, with more planning to do so, according to Peevey.
California, Peevey said, began deploying SmartMeters in 2007, and for the first two years didn’t hear any complaints about accuracy, health or privacy.
However, he said that changed in June 2009, when PG&E began installing the meters in Bakersfield. He said the commission questioned the company’s decision to install the devices in one of the state’s hottest counties during the hot summer months.
He said consumers began to complain of inaccurate meter reads and high bills. The CPUC responded by hiring an expert who, in September 201,0 submitted a report to the commission stating that SmartMeters are more accurate than analog meters.
“Then we heard about the health concerns,” Peevey said.
The California Council on Science and Technology was commissioned to review studies on wireless technology, and in March 2011 released a final report that, in part, stated that if the meters are properly maintained they should give off less electromagnetic frequencies than many common household items, Peevey said.
SmartMeters reportedly adhere to the Federal Communications Commission’s standard on wireless technology, which Peevey said offers a high enough level of safety for consumers, a statement that was greeted with jeers from the audience at Wednesday’s meeting.
Even after studies were completed, and new privacy and data security rules were passed, consumers still wanted to opt out of having the devices, Peevey said.
The proposal Peevey took to the commission would allow that opt out opportunity, but with the associated fees.
“For those of you who want to opt out, you have the ability to do so under the terms of this decision,” said Peevey, asking for the votes of his fellow commissioners.
Commissioner Timothy Simon said he felt the proposal was a good alternative, and would allow the state to keep moving forward on its smart grid efforts.
Simon, who is assigned to the the agency’s low income oversight board, was particularly concerned about the potential impacts on low-income customers. He said the commission should look into socializing costs.
In addition, Simon proposed a separate proceeding to explore the consumer backlash against SmartMeters.
Simon said many stakeholders are benefiting from wireless technology, and noted he was disappointed that they have remained silent during the public process on the meters.
“This has largely been a one-sided public comment,” he said, urging beneficiaries to come forward and speak up.
Commissioners Catherine Sandoval and Mark Ferron also supported the proposal, with Ferron stating that it struck “a reasonable balance at this time,” subject to further deliberation.
Ferron added that he expected PG&E will thoroughly explain its program to all of its customers.
Peevey moved the proposal, which the commission approved 4-0, with Commissioner Michel Florio absent due to illness.
The CPUC wants the option implemented “without undue delay,” according to the decision document.
As such, it’s directed PG&E to file a Tier 1 Advice Letter to implement the SmartMeter opt-out option and to establish a SmartMeter opt-out tariff within 15 days.
PG&E will be required to establish procedures to inform customers about the opt-out program as well as how the program will be operated, according to the decision.
Residential customer are to be allowed to begin signing up within 20 days of the decision. The CPUC said PG&E may not require customers to explain reasons why they want to participate.
Despite the many studies PG&E has provided on SmartMeter safety, Burt said, “The simple fact is there are customers who remain genuinely uncomfortable with the program.”
Burt said PG&E is starting immediately to accept opt-out requests from its customers.
She said about 90,000 customers statewide remain on the installation delay list.
People who want to participate in the opt-out program can apply online at www.pge.com/myhome/customerservice/smartmeter/optout/, call 866-743-0263 or visit a local PG&E office.
Burt said PG&E has analog meters in stock in order to provide them to opt-out customers. She said it should only take a few weeks to fulfill the requests.
The company will continue to monitor the impact of the program on the smart grid.
“Frankly this is infrastructure that is being upgraded across the country” for the first time in 100 years, Burt said.
E-mail Elizabeth Larson at
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