Smart Meters How We Got Them and Why They Became Controversial by David Sheldon

1. Smart MetersHow We Got Them and Why They Became Controversialby David Sheldon

2. Overview of Program This talk will be to get an overview of how we got to the smart meter controversy, and a discussion of recent and upcoming events that may have a bearing on this whole issue.

3. New DTE Policy on Meters Before getting into all the harms that a “smart” meter can cause, we think everyone needs to understand that our Public Services Commission has decided, as of May 15th, that anyone who wishes to avoid those harms must pay an initial fee plus a monthly fee of about $10/month indefinitely.

4. DTE policy continued We think it is reasonable for an organization that provides a service or a benefit to charge customers for that benefit. We think it is not reasonable to charge a fee for the ‘privilege’ of escaping from a known harm that organization has chosen to inflict upon the public.

5. DTE policy continued As we explore in this program the nature of those harms, we hope you will, by the end, agree that charging these fees is not right and be ready to join with us in the fight to do something about it.

6. What is an analog meter? Traditional meters for electricity, gas and water are mechanical in nature. They have dials that slowly turn to indicate how much has been consumed.

7. Typically, since the meters must be manually read, they only provide the utility with the homeowners total usage for the month. Many feel that should be enough!

8. Appearance of Smart Meter • No longer has the familiar big wheel or the clock dials. • Has an electronic digital display that flashes different numbers in sequence.

9. Functions of Smart Meter • Can measure and store, or transmit, usage information in intervals of an hour or less, enabling the utility to see your usage broken down, in some cases, to the exact time of day. • Uses radio waves, or a hard wired internet connection for real-time transmission of the data to the utility.

10. Uses two way communication so that the utility can send signals to the meter as well as receive signals from the meter. • Often has the ability to turn service on or off remotely – when a bill has not been paid, or at time of move-in or move-out. • Acts as a gateway for communication by the electric utility to and from individual appliances within the home – once the home has installed the next generation of appliances that will contain ‘smart chips’.

11. Is All This Data Collection Really Necessary? • It reveals information to the utility, and possibly others, about your lifestyle and heretofore private activities within the home. • Let us examine the arguments of the utilities to see if they really need all this data.

12. Why do utilities say they need smart meters? • To encourage customers to conserve energy AND to shift some of their energy demand to off-peak times of day. • Conservation to be encouraged by providing customers the ability to see their energy usage by the hour thru an internet display or in real time on a home monitor.

13. Do Smart Meters Really Conserve Energy? NO – Only the customer can do that by making changes in lifestyle. No study to date has shown real evidence that customers change their behavior because a smart meter was installed.

14. A pilot program by Detroit Edison a few years back failed to show results. • The Michigan Public Service Commission authorized mass deployment of ‘smart meters’ even though pilot program did not show an economic benefit to customers.

15. As a result, Michigan’s Attorney General sued the Public Service Commission and won a judgment from Michigan Court of Appeals requiring a re-do of the general rate case that had authorized the meters. • This case is proceeding now but results won’t be in until next summer.

16. Why else do utilities need all this data? • To implement ‘time of use pricing’. This means the customer may be charged more when electricity is used during times of peak demand, and less for off-peak usage. • This is supposed to provide incentive for customers to shift some of their demand to off peak times of day.

17. Does this Work? • NO! Again, Detroit Edison’s pilot study did not show enough change in behavior to pay for the ‘smart meters’. We are not aware of any study done anywhere in the United States that demonstrates these incentives are working.

18. But let’s say there is a way to make these incentives work. • NO – All that would be needed is dual register meters that accumulate peak time usage in one register and off peak usage in the other register. • Does that mean we need ‘smart meters’?

19. Dual Register Electric Meter Utility would send signal to meter during time of peak demand to turn on the peak usage counter.

20. Why else do utilities say they need all this data? • To eliminate the cost of meter readers. • But there are systems in use by other utilities called “AMR” systems, which automatically transmit monthly reads to a drive by vehicle. These systems transmit a radio signal only once/month.

21. Are smart meters necessary to promptly report power outages? • Utilities want to be alerted to power outages and be able to dispatch service personnel quickly to correct these. • All that would be needed is a radio signal (battery powered) transmitted ONLY when there is an outage!

22. Who Pays for Smart Meters? • We all do – through our federal taxes and through the extra costs that will be passed on to us through our monthly utility bills.

23. Where else are these meters being installed?

24. Why are Smart Meters so controversial? • Invasion of privacy – our Fourth Amendment rights are being violated. • Health – electro-sensitive people become sick almost immediately. • Health – entire population at risk long term for cancer and neurological illness. • Canary in Mine???

25. Why controversial – cont. • Interference with medical devices – such as pacemakers and implants.

26. Why controversial – cont. • Damage to household appliances – reports of refrigerators burning out, expensive high end stereo equipment being destroyed. • Making entire electrical grid as vulnerable to hackers and terrorists as the internet already is. • Risk of house fires.

27. House Fire Caused by Smart Meter

28. How did it all get started? • At the Rio environmental conference in 1992, the first President Bush ‘informally commits’ this nation to international environmental programs designed to reduce this nation’s use of energy.

29. Three successive U.S. Presidents continue the ‘informal’ commitment that first President Bush made. • In 2005 Congress passed the ‘Energy Policy Act’ – stated purpose being to reduce our carbon footprint. • In 2007 Congress passed the ‘Energy Independence Act’ – purpose being to reduce our dependence on mideast oil.

30. In 2009 Congress passes the ‘stimulus bill’. Included are 3.5 billion dollars to promote ‘smart grid initiatives’ • Utilities all over U.S. rush smart meter programs in order to cash in. • In Michigan there were two pilot projects done by Detroit Edison that were supposed to culminate in a cost-benefit study.

31. No cost-benefit studies done at end of pilot projects. • 2010 – Michigan Public Service Commission issues order that if utilities choose to deploy smart meters, they can charge the costs back to their customers. • Then Attorney General Mike Cox sues the MPSC for that decision, arguing there can be no justification to burden customers for unproven technology.

32. Detroit Edison begins massive rollout in Oakland County and parts of Detroit. • These installations are forced. Everyone is told they must accept a smart meter or their electrical power will be terminated. Nobody allowed to opt-out. • In April of last year, the Michigan Appeals Court rules against MPSC.

33. What is the REAL reason for this worlwide push? We think it is about controlling people in how they can use energy in their homes and businesses. First put in a detailed monitoring system, and then impose energy rationing.

34. McMillin Bill Later this evening we will discuss a new bill that has been introduced in the legislature known as the “McMillin bill”. We will explain how this new bill protects utility customers and how we can all help to get it passed.

35. The End