LANSING, MI —The debate over smart meters continues as
Michigan’s major utilities deploy the new generation of
electric meters.
The Michigan Public Service Commission recently released a
staff report that generally supported smart meter
deployment but recommended utilities allow customers to opt
out of using the new technology.
Some state lawmakers, the Attorney General, several
municipalities and many customers have expressed concerns
over health risks and privacy issues associated with the
meters.
Smart meters record near real-time electric power
consumption and use wireless signals to transmit the data
directly to utility companies. They also notify the utility
of an outage and allow utilities to remotely turn service on
and off.
Critics contend the meters' wireless radiation is harmful to
health and are concerned about customer privacy. Of nearly
400 consumer comments submitted to the MPSC, 84 percent
addressed opt-outs, 77 percent covered health issues and 49
percent mentioned privacy concerns.
The MPSC determined that health risks associated with meters
that use radio frequency are “insignificant.” Devices such
as cell phones, microwaves and garage door openers all use
radio frequency. A Consumers Energy spokesman said a
smart meter emits frequencies that would be equivalent
to a cell phone sending six, small text messages a day.
As for privacy issues, it said Michigan utilities already
have “large amounts of critical customer information that
they have safeguarded for years and will continue to
adequately safeguard.”
Still, the MPSC recognized customer concerns and recommended
that utilities offer an opt-out program for customers who
don’t want the meters at their homes or businesses. It said
that any rates associated with different types of meters
should be based on the cost of providing the service. That
means customers may be charged more if they choose not to
use a smart meter.
Consumers Energy and DTE Energy Co., Michigan’s largest
electric companies, plan to offer opt-out programs but have
not yet released details.
State Rep. Paul Opsommer, R-DeWitt, wants to go a step
further and require utilities to offer opt-out programs.
Bills introduced by Opsommer and Rep. Tom McMillin,
R-Rochester Hills, would prohibit incentives for using smart
meters or disincentives for not using smart meters, ban
utilities from obtaining data from the meter more than once
per month unless requested by the customer, and require
utilities to notify customers of their plans to install the
meters, allowing customers to decline installation.
Proposed legislation also would ban utilities from
installing the meters if the local municipality has issued a
moratorium on the devices.
Opsommer said he doesn’t like that the devices allow for
two-way communication and doesn't want utilities controlling
his use of electricity or even knowing exactly how he uses
his power.
“In other states, the attempt is to have your thermostat
controls from the central office,” he told MLive.
There are also security concerns,
"I don't want the next blackout we have to be the result of
a terrorist hacking into the remote shut-off systems of our
utilities," he said in a statement.
The Attorney General’s office also wants customers to be
able to decide whether they want a smart meter.
Schuette wants evidence that smart meters will provide cost
benefits to consumers before the state approves any more
deployments of the devices.
“A net economic benefit to electric utility ratepayers from
Detroit Edison’s and Consumers smart meter programs has yet
to be established. In the absence of such demonstrated
benefit, the Attorney General has opposed, and will oppose
any Commission action that unjustly and unreasonably imposes
the costs of such programs upon ratepayers,” Attorney
General Bill Schuette and his staff wrote in comments to
the MPSC.
DTE argues that if it weren’t for cost benefits, the utility
wouldn’t bother with the program. Rate payers will have to
cover most of the cost of the new meter system, but it will
result in operational efficiencies and eventual cost
savings, said DTE Energy spokesman Scott Simons.
For example, the new meters eliminate the need for meter
readers to stop by each month. That’s why customers who
stick with the old meters will have to pay more, he said.
Charges have not been released.
DTE has installed more than 800,000 smart meters in
southeastern Michigan. It plans to have a total of 1.2
million meters installed by the end of 2013. DTE estimates
it will cost $447 million for 2.6 million meters to serve
its electric customers, according to the MPSC. A federal
grant will cover a portion of the costs.
The utility estimates it will save about $65 million per
year with the new technology. That figure includes both
electric and gas meters. Those savings will be passed onto
customers, but may not necessarily result in lower rates,
since rates depend on several factors, including utility
costs and projects.
Jackson-based Consumers Energy is in the process of
installing smart meters and plans to install meters for its
1.8 million customers by 2019, according to the MPSC. Total
project cost is projected at $750 million. The utility
expects to save $2 billion in costs over the 20-year life of
the meters.
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