Is there a Smart, Real-Time Meter in your future?The gas and electric meter at your home is dumb. The power company guy walks up and reads the meter once per month. The price of the electricity does not change during the day and night, though the demand for electricity cycles through extreme changes during the hours of the day.
Consumers can save money, a lot of money, and prevent electrical power outages if they have the knowledge and control to do so. Smart meters and smart appliances hold the key to both knowledge and control. Real-Time Meters using software and computer technology, installed in homes, offices and factories, can receive a price signal from the utility, through the power grid, and return usage information to the utility. This capability would make possible a wide assortment of products and services that could take advantage of real-time electricity prices.
Smart appliances, smart buildings and smart factory equipment can be programmed to interact with the power grid to insure optimal power usage and give the consumer the best power price by "knowing" to shut-down or reduce consumption when prices increase. Smart meters can also measure and control water and gas consumption. www.AmericanEnergyIndependence.com/efficiency.htmlBut are the meters that SDG&E wants to install smart enough?
Time is moneySDG&E wants to replace traditional electric meters with high-tech devices capable of billing customers for power based on time of day it's used
By Craig D. Rose
STAFF WRITER
March 17, 2005
San Diego Gas & Electric is proposing to install a new generation of electricity meters that would match customers' bills with the wildly fluctuating rates that power fetches through the course of each day.
That could mean cheaper power at night and far more expensive power during hot summer afternoons, when many Californians want to crank up their air conditioners.
SDG&E, which this week submitted a detailed proposal to regulators for installing the new meters, is offering only a general outline of what it might propose regarding varying rates for power.

"Similar to higher-priced peak cellular phone minutes, energy used during certain peak periods would cost more, while energy used outside of those periods would cost less," said William Reed, an SDG&E vice president.
"Overall, the average rate would stay the same."
The plan that SDG&E has presented state utility regulators would require spending $420 million over four years to remove old power meters and install advanced meters for each of its 1.3 million customers. But the investment would provide savings of $660 million to customers over the long run, according to SDG&E.
The utility said the meters and new rate plan would trim peak power demand by 360 megawatts – equivalent to what's used by nearly 360,000 homes – and eliminate the need for several so-called peaker plants, units that are run only to meet demand on the hottest days of year.
The new meters also would eliminate the need for human meter readers and provide the utility with more immediate power-grid information, potentially reducing the likelihood or the duration of outages.
But the program would, for the first time, expose small business and residential consumers to fluctuating hourly prices of electricity, a commodity that can't be stored and with a price volatility that is legendary.
Even on cool days, with low power demand, the utility's hourly cost for electricity can double in the course of a 24-hour period. During the hottest days or when supplies are tight, far higher swings in power costs can occur.
On Sept. 8, a day of record electricity usage in the state, power prices fluctuated sixfold in the course of the day. Those costs were driven by the scarcity of electricity and by the increased cost of producing power from peaker plants, which are typically the most costly units to run.
Under current rates, the billed cost of running a central air conditioner in typical homes is 40 to 80 cents an hour, depending on system size.
Had high-tech meters been in place last Sept. 8, customers could have found themselves paying far more for using power during the hottest part of the day and perhaps less for using power in off hours, depending on what new rate plan is approved by the California Public Utilities Commission, which will review SDG&E's proposal.
The utility and other advocates of time-of-use meters believe that the devices, which flash signals indicating times of high power costs, will encourage customers to shift consumption to periods of lower demand and lower prices.
SDG&E says it expects that customers would delay doing laundry and other nonessential activities until off-peak hours, reducing the need for peaker plants.
Pacific Gas and Electric Co., which serves Bay Area customers, has reached the same conclusion and is making a similar proposal.
Southern California Edison, the state's third major electric utility, agrees that advanced meters could provide efficiencies and savings, but says it wants to wait for the development of lower-cost devices before moving to deploy them.
Consumer advocates said yesterday that they worry about customers who can't shift their power consumption because their primary usage is for refrigerators or badly needed air conditioning.
"They could be punished by time-of-use rates," said Michael Shames, executive director of the Utility Consumers' Action Network. "What can the owner of a 7-Eleven do to reduce peak demand?"
Shames also said the technology could bring real benefits, adding that he hopes to work with SDG&E on a proposal for advanced metering that would be beneficial to all.
If the California Public Utilities Commission approves the plan, SDG&E will expand an earlier pilot program and install advanced meters for 10,000 customers this year. After an assessment, the utility would begin permanent deployment of meters to customers in 2007 and complete the process in 2009.
The electric meters also would be able to monitor natural-gas consumption, eliminating the need for meter readers. SDG&E said it didn't anticipate the need for layoffs among the 160 part-and full-time meter readers and would instead eliminate the jobs through promotions, transfers and attrition.
SDG&E's proposal to provide the new meters to all customers is a shift from its earlier plan to deploy them for 40 percent of its ratepayers. It said customer fairness motivated the expansion.
The utility also said results from 300 customers in its first pilot program found that the customers used 14 percent less electricity during peak periods.
"We wanted to give all customers a chance to control their energy usage and opportunities to save," said Ed Van Herik, an SDG&E spokesman.
www.signonsandiego.com/uniontrib/20050317/news_1n17meters.html