Smart meter reflux continues

Kate Rowland | Aug 16, 2010

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The town of Fairfax, California, sure has it out for Pacific Gas & Electric (PG&E) these days. Last week, I wrote about concerns in the larger Marin County (in which Fairfax is contained) that Federal Communications Commission (FCC) standards for smart meters may not be sufficient to protect public health.

Late last week, as part of a California Public Utilities Commission thought leaders event, Peter Darbee, CEO and president of PG&E Corporation, spoke to that issue in San Francisco, quoting my Intelligent Utility Daily coverage in his presentation.

Comparing emissions created by cell phones to those created by smart meters, with the understanding that the smart meter is only transmitting 45 seconds per day, and the assumption that a person is talking on his or her cell phone for 10 minutes a day, Darbee said: "If you have a home with a smart meter, you have to live in that home for 13,000 years before it compares with your use of a cell phone for one year."

But in the meantime, the town of Fairfax (current population approximately 7,500) has upped the ante even further. On August 4, the Fairfax town council unanimously passed an urgency ordinance that places a temporary moratorium on the deployment of smart meters and related equipment within the town, citing concerns about accuracy, data security, health questions and more.

Any violations of the moratorium may be charged as infractions or misdemeanors as set forth in the town code, and will also be "deemed public nuisances, with enforcement by injunction or any other remedy authorized by law."

PG&E representatives present at the meeting agreed voluntarily to immediately halt the deployment of the meters, and promised to set up a series of community meetings to hear and to respond to the questions and concerns of Fairfax residents and businesses.

Darbee echoed this in his CPUC presentation on Aug. 12, saying, "What I've asked people to do is look at the whole question of RF, identify the different issues that can be raised, and to undertake our best efforts to respond to what are the questions, and then to evaluate what channels should we use to get that information out.

"We believe that by anticipating these questions, which I admit we haven't done as well as we should have, analyzing them, understanding them, responding to them and getting out to people as quickly as possible is the best way to stay ahead of this. If we don't, then what happens is there gets to be kind of a snowball coming at us, and at that point, people don't have their ears open to listen to the answers, and therefore it's more difficult to have a dialogue. So that's what our intent is; that's what we'd like to work through."

(It is worth noting that, as early as the beginning of June, 2010, according to a blog written by the Fairfax town manager, PG&E had not yet begun SmartMeter installation within the town, and by July 13, residents had only just begun to receive information letters from the utility noting their meters would be installed within the next few weeks. So, the town-imposed moratorium has effectively stopped PG&E in its tracks within Fairfax, some say for as long as a year.)

For its part, the California Public Utilities Commission has no such moratorium in place while it undertakes its study of PG&E's SmartMeters accuracy, according to Terrie Prosper, the CPUC's news and public information office director. "The CPUC has not put a moratorium on the installation of SmartMeters, so they are still scheduled to be installed based on PG&E's schedule," Prosper told me.

There have been some questions raised about the legal ability of the Fairfax town council to pass its ordinance banning, even temporarily, PG&E's SmartMeters. Decisions about utility equipment fall under the jurisdiction of the CPUC, while Fairfax's ordinance calls upon police powers and public utility franchise-granting powers granted by the California Constitution, as well as sections of the Public Utilities Code. Sorting through the legalese on all levels starts to resemble a game of "Rock Paper Scissors."

And in the end, if PG&E is able to repair its communications efforts with its utility customers in Fairfax, then sorting through the legalese may not end up being a necessary (or useful) exercise. As PG&E's Darbee told the CPUC's thought leadership series audience late last week:

"I think there are areas where we could have communicated better, we could have educated better. I think a mistake we made was that we thought we were rolling out infrastructure and technology, and we underestimated the interest that customers would take in a meter on the side of their house.

"So, I think we could have communicated that better, and we're looking now at how we can communicate more effectively, given where we are.

"As we go forward, I think the stakes are very great because once again, California is in the position to serve as the model for the rest of the United States when the United States has said it's not ready to move forward. And the challenge that we have is, are we going to be a good model, or a bad model, or an indifferent model?"

That challenge is about to be put to the test in Fairfax.

Let's discuss this here, or you're welcome to e-mail me at krowland@energycentral.com  You can also follow me on Twitter: @katerowland2

 

Comments

The New California Capitalist Model...

This is a copy of the EWPC post The New California Capitalist Model to Initiate the Transformation of the Global Power Industry

Kate Rowland has set a challenge in her Intelligent Utility article Smart meter reflux continues of August 16, 2010, which I respond to below. The challenge is based on a quote made by Peter Darbee, CEO and president of PG&E Corporation, which says: 

As we go forward, I think the stakes are very great because once again, California is in the position to serve as the model for the rest of the United States when the United States has said it's not ready to move forward. And the challenge that we have is, are we going to be a good model, or a bad model, or an indifferent model

Hi Kate,

Thanks you for the challenge. 

PG&E and Its Discontents is an article written by Michael Kanellos, on August 12. At this moment it is the most popular discussion in greentechgrid 2010, to which I have added several comments. Next is a comment on two paragraphs:

“PG&E and Its Discontents,” signals a very old backward looking discontent with utilities all over the place. As customers have been unable to articulate their discontent, they follow a leader who gives then something to fight the utility, when the opportunity presents itself, with data that may seem to be convincing, such as the health issues ...

In that line of though, I respond the article Avoiding an Epic Smart Grid Failure, by Christopher Perdue, with the EWPC post An Epic Smart Grid Failure is in the Making, starting with the forward looking sentence “The smart grid is a transformation process of the global power industry. A transformation is not a trivial change. It is a big and complex change process that will satisfy ongoing customer needs, which they are not able to articulate yet.”

 

Using the same evidence of the above post, I added a comment with the title “A GIANT STOP SIGN! Let's Initiate the Transformation,” under Jesse Berts’ SmartGridCity Meltdown: How Bad Is It?, that says, “I am very sorry to respectfully tell you, and all the other intelligent and important persons, that this is not just the result of skipping the business case. This is A GIANT STOP SIGN, which Jesse saw as one of the alternatives.”

This is also under the article “PG&E and Its Discontents.  My general prediction is that the emergent smart grid is intended to be a shift away from a regulated Investor Owned Utilities Architecture Framework (IOUs-AF) based socialistic AMI monopolistic system, in place now for the retail market, to a capitalist AMI competitive system, which without any loss of generality can be defined under the minimalist, emergent, holistic Electricity Without Price Controls Architecture Framework (EWPC-AF).
 
The above prediction is based on the text Creative Destruction written by W. Michael Cox y Richard Alm. I like to know if the intention of the California government is to not allow once again the emerging creative destruction of the power industry to preserve the preexisting order. To make the meaning absolutely clear, I select a quote from that text:
 
“Over time, societies that allow creative destruction to operate grow more productive and richer; their citizens see the benefits of new and better products, shorter work weeks, better jobs, and higher living standards.”
 
“Herein lies the paradox of progress. A society cannot reap the rewards of creative destruction without accepting that some individuals might be worse off, not just in the short term, but perhaps forever. At the same time, attempts to soften the harsher aspects of creative destruction by trying to preserve jobs or protect industries will lead to stagnation and decline, short-circuiting the march of progress. Schumpeter’s enduring term reminds us that capitalism’s pain and gain are inextricably linked. The process of creating new industries does not go forward without sweeping away the preexisting order.”

Reflux Indeed

It seems to me Fairfax is using other issues as a smokescreen to get PG&E to address customer concerns, but even so, I hope Mr. Darbee and his colleagues are learning the right lessons from this whole debacle over smart meters. 

My sense is that like most utilities, the five political appointees who occupy prime offices on the fifth floor of 505 Van Ness Avenue in San Francisco are PG&E's customers.  That's a consequence of utility regulation - however unintended by the folks who established today's regulatory framework  back in the early part of the last century.  So long as their lights stay on, bills are relatively stable and nothing else bad happens, the people use buy and use electricity distributed  by PG&E are content.

PG&E (and all other utilities) either need to bring in some folks who have worked at consumer products companies to run the portions of their operations that directly touch the people who buy their product, or they need competition.  The fact that PG&E felt compelled to sponsor Proposition 16 tells us a lot about their attitude towards the people who buy their product and the margin by which it was defeated in their service territory tells us even more.

The next legs of PG&E's Smart Meter project include dynamic pricing and activating the home gateway functionality.  I predict they are not going to be handled very well, but I also hope PG&E will prove me very wrong.  If they mess up on the home gateway piece, which takes PG&E to a place they've never really been before, what's happened with the meters is going to seem like a little dustup by comparison.

Jack Ellis, Tahoe City, CA

Proposition 16

Jack,

At the CPUC forum last week, Mr. Darbee also addressed, generally, PG&E's reasons for supporting Proposition 16. What surprised me, as a California resident, is that I didn't hear or read these reasons expressed, with this degree of clarity, in advance of the vote. Full-page advertisements in the newspapers full of words, for the most part, turn readers away, rather than draw them in. I saw a lot of those.

I think customer communications is going to be a tough row to hoe for the company for some time. It's doing its best to repair the damage, but voters in particular have strong and emotional memories, and getting the messages through clearly is going to be tougher.

Kate

A Solution to the Leadership Crisis in California and the World

Hi again Kate,

 

My suggestion in the EWPC post The New California Capitalist Model to Initiate the Transformation of the Global Power Industry is the solution to solve a huge leadership crisis in California. That crisis is well supported by my interpretation of what Jack wrote is that California is not in a position to face Darbee’s challenge, less “to serve as the model for the rest of the United States when the United States has said it's not ready to move forward.”  

 

Jack wrote that “I predict they are not going to be handled very well, but I also hope PG&E will prove me very wrong.  If they mess up on the home gateway piece, which takes PG&E to a place they've never really been before, what's happened with the meters is going to seem like a little dustup by comparison.”

 

Darbee said "As we go forward, I think the stakes are very great because once again, California is in the position to serve as the model for the rest of the United States when the United States has said it's not ready to move forward. And the challenge that we have is, are we going to be a good model, or a bad model, or an indifferent model?"

Best regards,

 

José Antonio Vanderhorst-Silverio, Ph.D. - LinkedIn