Smart meters: How much should utilities charge customers who want to opt out?

By Jesse Berst

Some utilities want to insist that every customer get a smart meter. Others are willing (if not happy) to let those who object use an old-style meter instead - provided they pay for it.

·         But how much should they pay?

·          Should they be charged for the installation?

·          For the full cost of sending out a manual meter reader?  

Below are a few examples of what several utilities and PUCs are suggesting.

Nevada Power, which says less than 1 percent of its customers have objected to installation of its smart meters in the Las Vegas area, recently filed comments with its PUC suggesting customers who don't want a smart meter should pay for the initial installation charge and a monthly fee. It is proposing a one-time charge of $110 in Southern Nevada and a monthly bill of $14.86. In Northern Nevada, the one-time cost for a change-over would be $130 and the monthly charge would be $13.

In neighboring California, PG&E last March proposed an opt-out plan that had the utility installing smart meters but shutting off the wireless transmitters inside them for customers who requested it – for an upfront fee of $270 plus an additional $14 per month to cover the costs of hiring people to read the meters. That didn't fly with smart meter opponents. The California PUC, meanwhile, floated t a similar – but cheaper – proposal involving a $90 fee and an ongoing monthly charge of $15 with even lower charges for low-income residents. But then in December, PG&E had a change of heart, proposing customers could keep their old meters – for a 'comparable fee.' Stay tuned.

And in Maine, a PUC decision gave Central Maine Power customers who don't want smart meters two options: They can keep their analog meters (or have them re-installed) for an upfront fee of $40 and an additional $12 per month charge. The other option is for customers to simply keep the smart meters and have the transmitters shut off, for an initial cost of $20 and a $10.50 monthly charge.

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What do you think is fair? How much – if anything – should opt-out customers have to pay? That's the Tuesday Topic in our discussion forum this week. Click now to add your comments and to see what others are saying >>

Jesse Berst is the founder and chief analyst of Smart Grid News.com. He consults to smart grid companies seeking market entry advice and M&A advisory. A frequent keynoter at industry events in the US and abroad, he also serves on the Advisory Council of Pacific Northwest National Laboratory's Energy & Environment directorate.