The power company will begin replacing gas and electricity usage
meters with remotely readable
”
SmartMeters
”
in Morgan Hill next month, amid criticism about the utility’s
customer service practices and skepticism about the new meters’
accuracy.
The power company will begin replacing gas and electricity usage meters with remotely readable “SmartMeters” in Morgan Hill next month, amid criticism about the utility’s customer service practices and skepticism about the new meters’ accuracy.
PG&E will install the digital meters, which use radio frequencies to allow its employees as well as customers to read their daily energy and gas consumption, for all its residential and commercial customers in Morgan Hill, according to PG&E spokesman Jeff Smith.
That includes all 30,661 of PG&E’s customers in Morgan Hill.
The meters will replace existing analog meters, which require an employee to visit the site to read the energy use.
The new devices will transmit customers’ energy usage through a wireless network of receivers and routers to PG&E’s billing center. They will allow rate payers to check their previous day’s consumption by logging onto a PG&E website, Smith explained.
Installation has already begun in some areas of town, and is expected to be completed citywide by Oct. 2011, Smith said. In Gilroy, the SmartMeter plan began earlier this year and about 37,000 SmartMeters have been installed there.
The rollout of the new meters, which are an international trend in utility service, is intended to upgrade the grid with more advanced technology in order to improve energy efficiency.
“The direct benefit to our customers (is) it gives greater insight and control over their bills and energy use,” Smith said. “The SmartMeter devices are a vital technology for California’s energy future, and they make the electrical system smarter and more reliable.”
Customers can use their detailed energy consumption data to adjust their daily use, and make informed decisions whether or not to replace their appliances, Smith said.
PG&E has already installed more than 6.9 million SmartMeters for its customers in northern California, and plans to replace all its 10 million customers’ meters with the new devices by 2012.
The California Public Utilities Commission, the agency which regulates energy companies, also encourages the use of SmartMeters as part of its long-term plan to improve energy efficiency.
“SmartMeters are a way to become more energy efficient, and for people to monitor their energy usage,” said CPUC spokesman Chris Chow.
And despite some skepticism from residents, and even cities in California, the CPUC concluded in a study last month that PG&E’s SmartMeters, as well as their associated software and billing systems, are accurate and in compliance with industry standards. Plus, the wireless technology employed by PG&E’s SmartMeters transmits information securely.
The independent study was conducted by energy and utility contractor Structure.
The city of Watsonville is among several municipalities in California that have formally protested against the use of SmartMeters. Earlier this year Watsonville officials enacted a moratorium on the installation of SmartMeters. City officials did not return phone calls by press time.
Morgan Hill resident Connie Pelayo thought of these recent complaints when she received a letter from PG&E Friday, letting her know that an employee from the company will come by her Paradise Valley home to install the new device.
She is mostly concerned about the possibility of a rate increase associated with the new meters.
“I guess we don’t have any choice if they will come in and install them,” Pelayo said. “A lot of people are out of jobs, and they’re concerned about their utility bill.”
The CPUC study found that SmartMeters installed in other communities did not contribute to rate increases, as some customers alleged.
PG&E predicts that not only customers, but the company itself will save money in “operational efficiencies and benefits” through the integration of SmartMeters – and that savings will eventually be passed along to customers, Smith said. The total cost of its territory-wide installation plan – about $2.2 billion – has already been factored into existing rates.
About 80 percent of PG&E’s former “meter reader” employees have been reassigned to other positions within the company, while “the majority” of the rest were offered retirement and similar buyout packages as a result of the installation of SmartMeters, Smith added.
While the CPUC study found no problems with the accuracy or billing systems on SmartMeters, it did note that the utility company’s customer service practices have been sub-par when responding to complaints and questions about SmartMeters.
The study said that PG&E did not address customer concerns with SmartMeter changes enacted in other communities, and customer skepticism prior to installation was ignored.
Overall, PG&E agrees with the CPUC’s report, including the customer service admonishment.
“What we learned is we need to do a better job of listening to customers and addressing their concerns,” Smith said.
All local PG&E customers should receive a letter and a door hanger from the utility in the next few days, notifying them that the new meters will be installed, Smith said.
