But it also reflected the commission's doubts about the potential benefits of time-of-use electricity rates, Nadel said. "Yeah, there's some skepticism there," he said. The BGE's proposal "gave them a convenient hook to just say, 'Sorry.'" The Maryland commission invited BG&E to submit a revised plan, but it said it would not approve mandatory time-of-use rates.

How do you make consumers smarter?
The commission concluded that BG&E's proposal "contains no concrete, detailed customer education plan, includes no orbs or other in-home displays, and provides for grossly inadequate messaging, in our view, to trigger the behavior changes contemplated under the proposal." BG&E said it was stunned by the decision, particularly in light of its successful pilot programs to test consumer responses to household electricity conservation programs.

The challenge of winning consumer support for smart meter strategies and real time pricing has loomed larger and larger in energy forums over the past year, particularly after smart meter installations in Bakersfield, Calif., triggered consumers' complaints that their bills had shot up after the new equipment was installed.

State regulators want some certainty that time-of-use rates will work for consumers, Nadel said. "They don't want to be perceived as just rolling the dice" on the question, he said.

Nadel noted that 24 states have clean energy policies calling for increased energy efficiency and conservation. A full-fledged consumer education program supports these policies, he said.

Utilities with smart meter strategies, and vendors who make the equipment, agree that consumer education is essential. But smart meter advocates say new pricing policies are equally necessary as the nation moves toward a future of distributed rooftop solar units and plug-in electric hybrid vehicles -- technologies that are inseparably linked to hourly changes in energy use.

Reprinted from Climatewire with permission from Environment & Energy Publishing, LLC. www.eenews.net, 202-628-6500

5 Comments

1. 1. candide 02:09 PM 6/30/10

   I have a "time of use" meter and even with the exact same energy usage I will receive up to $500 per year savings - as most of my usage is "off peak" anyway.
   
   Assuming I attempt to actually reduce my electricity usage my savings can be even greater.
   
   

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2. 2. borrows1 07:57 AM 7/1/10

   The technology should be cost effective (save money) out of the box. If the administrative cost savings to the utility is sufficient to pay for the technology over its expected life -- its a no brainer -- deploy. If, in order to be cost effective, assumptions must be made about changes in customer behavior as a result of the information, then those assumptions must be examined, perhaps by experiment. There is no room in this decision for "doing it for the environment" or "don't do it because meter readers will lose their jobs." Cold - hard dollars and cents is where the sensible answer will be found.

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3. 3. mathor 09:45 AM 7/1/10

   In Ontario, we are billed by "time of Use", with peak hours almost double $/kWh. In summer the peak hours are 11am to 5pm and off-peak from 9pm to 7am. Mid-peak fills in the difference. Weekends and holidays are 24h off-peak times.I am retired so I'm home
   much of the time. By running my pool-pump at night only and by setting my air to 24-25 (Celsius) during the day and 21 for 11pm to 7:30 am, I have gone from 53% peak hours to 7% peak and 73% off-peak use. I believe that My bills this year will be down from previous years before the smart meters came on line.

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4. 4. olderone 10:18 AM 7/1/10

   I live in San Pablo, Ca, we just got the smart meters and I've already noticed that my bill is lower than before the installation. I haven't experienced the peak hour rates, but knowing P.G.&E., I'm sure it will be a whopper if & when they get the chance to implement such rates. The are notorious for raising the rates, yet slow to drop them. Not sure how I'll be able to respond to the increase, other than become a night owl & sleep during the day. Indeed, it will be an adjustment.

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5. 5. Keller 12:10 PM 7/1/10

   The driving force behind "smart" meters is to enable utility companies to make more money by selectively charging higher rates, pure and simple. To suggest otherwise is disingenuous.
   
   For the consumer, the bulk of energy usage is heating and cooling related, which is more or less not particularly affected by "time-of-use". When it is too hot in your home, you want the air conditioner “on”. Running a dish washer or washing machine in the middle of the night is an inconsequential use of electrical energy.
   
   Rather than waste money on smart meters, a significantly more rationale policy would be to replace the vast numbers of older and inefficient heating & cooling machines.
   

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