.

By Jesse Berst

Two attorneys writing in behalf of the Prepay Energy Working Group have released position papers advocating prepay as a legitimate part of a utility's programs. One paper explains challenges and best practices for marrying prepay with low-income assistance programs. The other proposes policy changes to properly accommodate prepay, remote disconnect and other new capabilities made possible by the smart grid.

"We strongly believe that prepay represents the cutting edge for ANY enhanced transaction application," says Jamie Wimberly, CEO of DEFG EcoAlign, the consulting firm that leads the Working Group. That group includes utilities, vendors, marketers and representatives from roughly 15 or so state commissions. Wimberly stresses "the need for a fundamental transformation of the regulatory paradigm. Prepay and other enhanced transactions are forcing the issue of bringing regulatory rules and practices into the 21st century."

Many regulators have traditionally seen prepay as discriminatory against low-income customers. In my travels, however, I'm learning that optional prepay actually appeals to many low-income and transient populations. And to some assistance programs, who prefer to pay money directly rather than give it away and risk seeing it squandered for something other than basic energy needs.

Download the position papers:

·         Prepaid energy and low income assistance programs (pdf)

·         Prepaid energy: a regulatory path forward (pdf)

In our discussion forum:

Is it finally the right time for prepaid electricity services in the U.S.?

Jesse Berst is the founder and chief analyst of Smart Grid News.com, the industry's oldest and largest smart grid site. A frequent keynoter at industry events in the U.S. and abroad, he also serves on advisory committees for Pacific Northwest National Laboratory and the Institute for Electric Efficiency. He often provides strategic consulting to large corporations and venture-backed startups. He is a member of the advisory boards of GridGlo and Calico Energy Services.