Smart technology change
I know one thing that will never change: the reaction to change, particularly when the change involves digitization. It always surprises me that in the age of digital everything -- from televisions to cell phones to coffeemakers -- people still get somewhat hysterical about the arrival of a new digital technology. Smart meters are certainly no exception as illustrated by the Pacific Gas and Electric "backlash in Bakersfield" and Oncor's Smart Meter Verification Plan. This mistrust, however, seems to be helpful because it is ultimately pushing people to get better acquainted with the fundamental element that enables many of the wonderful technological marvels out there: electricity.
The Pacific Gas and Electric example has been talked about a lot, so I won't bore you with the details on that one. Let's take a little bit closer look at Oncor's smart meter woes. Hundreds of customer complaints about high electricity bills raised questions about the accuracy of newly installed smart meters and caught the attention of state Sen. Troy Fraser. Responding to concerns expressed by Fraser and others, the Public Utility Commission of Texas (PUCT) and Oncor are undertaking the Smart Meter Verification Plan. The plan aims to ensure the accuracy of the utility's smart meters through actions such as the independent testing and review of smart meters and their related systems.
What's interesting about all of this is not so much the testing and review plan, but who was complaining about high bills. Of the customers who called to request meter tests, about 75 percent of them had traditional meters. Apparently, December was the second-coldest one in 20 years and February was exceptionally cold, too. Certainly, some mistakes were found in final readings made before installing the smart meter, but it was also just pretty darn cold in the area. And, as this situation reminds us, weather can significantly impact your electric bill. Working with its customers, Oncor is finding that common reasons for the recent high bills include very cold weather combined with inefficient heaters, electric resistance heat and insufficient weather stripping and insulation.
The hysteria and significant media attention surrounding smart meters has, in a strange way, provided an opportunity for people to remember (or learn) that extreme cold and heat mean that electricity bills will likely go up. And, in the future, the currently criticized smart technologies will ultimately enable electricity customers to better understand the impact of things such as weather in real time, and then be able to take action to avoid the sticker shock they are complaining about now. That is, if they actually have a smart meter.
Comments
EDUCATION IS KEY
The problem, in my estimation, is that utilities function as if consumers are either a) too smart or b) too dumb. On the "too smart" side, utilities are shoving consumers into change without much in the way of valid explanation. There seems to be a sense that consumers will adopt all this "stuff" because everyone "knows" (by osmosis?) that it's "good". Conversely, the "too dumb" case says that consumers won't understand anyway so de facto coercioin is necessary.
In either case, consumers sense that the status quo was "good enough" and many are simply exhausted with the incessent drum beat toward all things Green (as if they just aren't listening). Separately, they also sense that the cost of all the new technology will be shifted to them, later if not sooner. You think irrational screaming is bad? Wait till residential TOU rates are rolled out and the rational screaming begins.
Can you blame really consumers?
Re: Education is Key
I think you make a good point. The value proposition for the utilities is clear: reduced generation capacity, improved control of peak demand, more ability to meet renewable power standards that are being imposed on them etc etc. The value proposition for the environment is clear too and that will be enough to get a certain portion of the consumer population on board. For the rest, however, not just education, but also a clearly articulated value proposition that holds up in real world experience will be essential.
Related to this, I see a lot of discussions about V2G technologies. I think the same issue will arise here. I currently drive a hybrid and it is frustrating when I start the vehicle and find that the hybrid battery is very low on power and cannot provide the necessary assist to deliver the improved fuel economy that I was led to believe I should get from the Hybrid. This often happens early in the morning or if I have to make a number of short trips that draw down the hybrid battery. If I have a fully electric vehicle, and my utility wants me to sign up for a V2G program to allow them to use my car's battery to store energy and provide regulation, what guarantees will I have that this will a) be cost effective for me and b) that if I need to go out in the evening when demand on the grid is high, the vehicle will actually have sufficient charge to take me where I need to go. I can imagine that there will be a great deal of resistance to the concept of V2G unless and until these concerns are addressed.
V2G
Also known as DOA, for exactly the reasons you cite.
As I have said before, if there's a sequel to "Who Killed the Electric Car", this time it's going to be the utilities, not the automakers.