Energy Efficiency & Climate Change Law

At a meeting yesterday, the California Public Utilities Commission (CPUC) addressed its investigation into whether "smart meters" are improperly raising electricity prices.  Smart meters are a key technology in the overall plan to develop a national "smart grid."  A consumer advocacy group, the Utility Reform Network, has petitioned Pacific Gas & Electric (PG&E) to stop installing smart meters until the CPUC officially concludes its investigation.

PG&E costumers in San Joaquin Valley filed suit October 16 in Kern County Superior Court, claiming that the inaccuracies in the company’s newly-installed smart meters, which are part of a $2.2 billion program to widely install this technology in the state, result in bill increases of as much as 300 percent.   In response to the allegations, PG&E says the increase is the natural result of warmer weather and increases in electricity rates, which were approved by the state regulator.  In fact, the city of Bakersfield, where the suit originated, had 17 days in July over 100 degrees, compared to 6 days during the previous year.

The outcome of this case is significant because a finding that the smart meters led to inaccurate utility bills would pave the way for further litigation, which would hamper the multi-billion dollar effort to develop a national "smart grid."  However, the President of CPUC, Michael Peevey, assured consumers at yesterday’s meeting that there is nothing wrong with the smart meters and the purpose of its investigation is to "ensure maximum public education and support."