California approves smart meter opt-out program for PG&E with one option: the legacy analog meter February 1, 2012

The California Public Utilities Commission (CPUC) ruled unanimously today to require Pacific Gas & Electric to create a smart meter opt-out plan.

Many observers predicted earlier this week that the commission would create a program that included an option for customers to keep their legacy, analog meter, as well as the ability to choose a smart meter with its wireless capability turned off among other options. After all, that’s what the Maine Public Utility Commission did in May – required Central Maine Power to initiate an opt-out program with four options.

But what the California commission did today was initiate an opt-out program with analog as its only option.

Customers electing to retain or return to an analog meter will be assessed an initial fee of $75 and a monthly charge of $10. 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 decision ends PG&E’s smart meter installation “delay list.” Customers on that list have about 30 days to ask to participate in the opt-out program or their analog meter will be replaced with a smart meter.

Today’s decision came during a somewhat verbally quarrelsome meeting this morning which started with a public comment period of about 90 minutes, during which 60 or so smart meter opponents voiced their disapproval of the devices. The proceedings were broadcast live on the internet here.

CPUC President Michael R. Peevey then began to speak about the benefits of smart meters, including their vital role in creating a nation of “fully empowered energy consumers.” As he spoke, many in the crowd erupted with shouts such as “Lies! Lies!” Peevy repeatedly asked the attendees to show the commission the same respect they had shown by quietly allowing complainants to speak about smart meters.

Peevey spoke about the study by California Council on Science and Technology (CCST) released early last year, which reported that smart meters “result in much smaller levels of radio frequency exposure than many common household electronic devices including cell phones and microwave ovens.”

“Wrong!” came the yells. “Why are you reading it to us? It’s wrong!”

Peevey said that the CPUC is “not a public health agency” and that it must rely on the judgment of agencies such as the CCST and the FCC. The commission in July adopted privacy and security rules regarding smart meters in response to customer concerns.

“And yet after all of this, some customers called for an opt-out program,” Peevey said. He then explained the fees that the program would entail and asked his fellow commissioners to vote on the issue. After long discussion, the commission voted in favor of the opt-out program.

Afterward, there were shouts of protests against the fees.

“This is a crime against humanity!” one person yelled.

In March, PG&E proposed an initial fee of $128 and a monthly charge of $10.69 for the “non-wireless” option, but the PUC rejected those figures. In a November preliminary ruling, the commission proposed that regular customers should be charged an initial fee of $90 and a monthly charge of $15. Meanwhile, customers enrolled in CARE would pay only a $5 monthly charge, with no initial fee.

While some utilities estimate that only about 1% of customers are likely to take advantage of an opt-out program, others – such as Southern California Edison – have said that fees must be set high in order to discourage participation.

In a filing made with the commission Dec. 19, PG&E announced that it now “supports approval of an analog meter option, in addition to the non-communicating radio-off option, in response to customers’ and parties’ continued requests for an analog meter alternative.”

The apparent general consensus among California utilities in recent months has been that whatever opt-out program the PUC ultimately approved for PG&E would provide a model for other utilities, including San Diego Gas & Electric (SDG&E) and Southern California Edison (SCE).

Among the aspects of the motion approved today, the commission ordered PG&E to:

• Establish procedures to inform customers that a smart meter opt-out option is available. A customer currently on the delay list will be informed that the customer will be scheduled to receive a wireless smart meter unless the customer elects to exercise the opt-out option.
• Establish new two-way electric and gas “modified smart meter memorandum accounts” to track revenues and costs associated with providing the opt-out program until a final decision on costs and cost allocation issues associated with providing an analog meter opt-out proposal is issued.

According to the decision, “residential customers may begin signing up to participate in the opt-out option 20 days after the effective date of this decision. PG&E shall have a dedicated phone number for customers to call and sign up for the opt-out option. This number shall be staffed by customer service representatives trained to explain the opt-out option and fees.”

Because customers may “opt-out for any reason, or no reason, PG&E may not require a customer to explain or state why they wish to participate in the opt-out program,” according to the decision. The commission is expected to revisit the issue and adjust fees after the true costs of the program become apparent.