Smart Grid, Bad Effects; Part Two
In 2009, we warned that the move to a "Smart Grid" would run into public backlash from overpromising and overmarketing the benefits on customers. Make no mistake, the U.S. needs a massive upgrade in its energy system - new generation, more and more efficient transmission, improved control systems - for too long we have ignored the backbone of our economy, energy.
But as we wrote in 2009, utilities and regulators who overhype the benefits will face public scorn when people realize that new and better energy infrastructure isn't cheaper. In a Businessweek article last September, Hawaii was reported to have rejected smart meters; and almost a dozen California cities and counties have asked state regulators to halt smart meter installations. Indiana regulators rejected Duke Energy's plan to emplace 800,000 smart meters.
In the December 2010 edition of Public Utilities Fortnightly, Mike Rutkowski and Todd Lester write that in Texas, concerns have been raised over the 2.1 million smart meters emplaced since 2009. The Public Utility Commission in Texas hs noted an increase in customer complaints - alleging that the new meters are not accurate.
It is, in our opinion, absolutely not true that the meters are inaccurate. They are incredibly accurate - and they are replacing old, worn meters that are not accurate. That means the new meters are capturing all the energy usage while the old meters frequently missed usage.
Combine that with the next desired stage in smart grid, real-time pricing, and you have a recipe for a political firestorm.
Smart meters need to be emplaced. The grid needs to be strengthened and bolstered. But the hype and marketing that the sellers of that equipment have generated actually harm the utilities and regulators that would and should support its adoption.
But as we wrote in 2009, utilities and regulators who overhype the benefits will face public scorn when people realize that new and better energy infrastructure isn't cheaper. In a Businessweek article last September, Hawaii was reported to have rejected smart meters; and almost a dozen California cities and counties have asked state regulators to halt smart meter installations. Indiana regulators rejected Duke Energy's plan to emplace 800,000 smart meters.
In the December 2010 edition of Public Utilities Fortnightly, Mike Rutkowski and Todd Lester write that in Texas, concerns have been raised over the 2.1 million smart meters emplaced since 2009. The Public Utility Commission in Texas hs noted an increase in customer complaints - alleging that the new meters are not accurate.
It is, in our opinion, absolutely not true that the meters are inaccurate. They are incredibly accurate - and they are replacing old, worn meters that are not accurate. That means the new meters are capturing all the energy usage while the old meters frequently missed usage.
Combine that with the next desired stage in smart grid, real-time pricing, and you have a recipe for a political firestorm.
Smart meters need to be emplaced. The grid needs to be strengthened and bolstered. But the hype and marketing that the sellers of that equipment have generated actually harm the utilities and regulators that would and should support its adoption.
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