Smart meter update: The PG&E opt-out plan

In what may likely be seen as a precedent-setting decision, the California Public Utilities Commission last week issued a ruling on Pacific Gas & Electric’s smart meter opt-out plan.

In a nut shell, PG&E customers who don’t want a wireless meter will have two options. If they already have a new meter installed, they will be able to request that wireless functions be turned off. If they have delayed smart meter installation, they will now have to have a new meter installed, also with no wireless functions.

The PUC chose the wireless-off option because it is the least expensive of the alternatives available for customers who didn’t want the wireless meters.  According to a rundown of the decision on GreenTech Media, turning off the wireless will only cost PG&E about $402 per meter versus $613 per meter for meters that are hardwired.

The other key provisions of the ruling come on cost to customers and the new pricing plans and consumer information that were billed as the main benefits of the wireless meters.

Going wireless will cost customers $90 upfront plus $15 per month. That’s considerably less than the fees PG&E originally proposed — either $270 upfront and $14 per month or $135 upfront and $20 per month.

Low-income or elderly customers who are on special rate plans would have the upfront fee waived and pay only $5 per month for a wireless-off meter.

Without the wireless functions, PG&E won’t be able to track hourly electric use of some customers, which in turn means it may not be able to charge them time-of-use rates and other pricing options aimed at reducing power use at peak times. 

To provide the utility with some flexibility here, the ruling says by Jan. 1, 2014, PG&E will have to have meters that allow it to collect at least some of that hourly use data manually — so it looks like some meter readers will have to stay on the job.

PG&E has estimated that 148,500 customers will ask for the opt-out. But the GreenTech Media report noted that an opt-out plan in Maine, with upfront fees of $20-$40 and monthly charges of $10-$12.50, drew 10 percent fewer customers than had been expected. 

The PUC has yet to rule on opt-out plans for Southern California Edison or San Diego Gas & Electric, but this ruling might be a template for them.

The PG&E ruling still has to go through a public comment period, ending Dec. 12.  To submit a comment, you can contact the Public Advisor’s office.

A final vote on the opt-out plan is tentatively scheduled for the commission’s Jan. 12 meeting.