PG&E Sued for Alleged Smart Meter-Related Overcharges

Pacific Gas & Electric (PG&E) has been sued by a Bakersfield, California man who says the smart meter the utility installed at his home is responsible for drastic increases in his electric bill. The class-action suit alleges that the meters are inaccurate and that the utility should refund the overcharges.

The plaintiff, Pete Flores, claims the meter is responsible for more than doubling his utility bill—from less than $200 per month to over $500.

Complaints against PG&E's electric rates had been flooding the office of State Senator Dean Florez (D-Shafter), the senator said in late September. Those complaints led him to set up hearings which were held in October with participants including PG&E, California state regulators and angry customers.

However, the hearings accomplished little. Customers continued to blame the new meters (installed as part of a long-term rollout of the new technology) and PG&E officials continued to insist there was nothing wrong with them. Utility officials said if anything should be blamed it was extreme weather and recent increases in electricity costs. The California Public Utilities Commission (CPUC) agreed to look into the issue but stopped short of ordering PG&E to suspend its deployment of the meters.

PG&E spokesman Paul Moreno was quoted in the San Francisco Chronicle as saying the utility stands behind its smart meter program and that the allegations in the Flores suit are untrue. He added that PG&E routinely tests roughly 10% of the meters before installation and compares data from the new meters with earlier data.

Attorney Michael Louis Kelly, who is representing Flores, was quoted as saying the problem "needs to be sorted out and fixed now."

PG&E has deployed 3.7 million meters so far and plans to have 10 million meters installed by 2012.

   Quick Take:  Here comes the consumer backlash we've been warning about for the past 18 months, and most regulated utilities are woefully unprepared to deal with it. Because they have never had to fight to get and keep customers, they literally don't know how to engage and persuade consumers. Urgent recommendation to our utility readers: Buy, beg or borrow consumer engagement expertise at your earliest opportunity. 

   San Francisco Chronicle news article

   PG&E profile on SGN

   No Relief Yet for PG&E Customers