BILL ANALYSIS 1
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SENATE ENERGY, UTILITIES AND COMMUNICATIONS COMMITTEE
ALEX PADILLA, CHAIR
SB 1476 - Padilla Hearing Date:
April 6, 2010 S
As Amended: April 5, 2010 FISCAL B
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DESCRIPTION
Current rules of the California Public Utilities Commission
(CPUC) require the state's largest investor-owned electrical and
gas corporations (IOUs) to replace traditional utility meters
with an advanced metering infrastructure (AMI) or "smart
meters."
Current law requires the CPUC to conduct a pilot study on rate
design and metering innovations to assist residential and small
commercial customers with better management of their electricity
use. Consumption data obtained in the pilot study cannot be
used for any commercial purposes unless specifically authorized
by the customer
This bill requires an IOU or a local publicly owned electric
utility that utilizes an AMI with customer interface to
consumption data to provide that customer with a means to access
data that does not require disclosure of personally identifiable
information or consumption data to a third party.
BACKGROUND
Smart Meter Roll-Out - The smart meter is a two-way communcation
device which transmits data back to the utlity and negates the
need for manual meter readings. It also allows the utility to
remotely disable and enable supply and is the foundation for
demand response programs such as critical peak pricing which is
designed to reduce electrical consumption during times of peak
demand. With additional software smart meters open the door for
a consumer to access consumption data in real time and to manage
their energy use more proactively.
In California, the CPUC authorized Southern California Edison to
install approximately 5.3 million smart meters, San Diego Gas
and Electric Company 1.4 million electric smart meters and
900,000 natural gas meters, and Pacific Gas and Electric Company
approximately 5 million electric meters and 4.2 million natural
gas meters.
CPUC Rulemaking - The CPUC has initiated a rulemaking
(R.08-12-009) to consider policies for IOUs to develop a smarter
electric grid in the state. The proceeding will consider
setting policies, standards and protocols to guide the
development of a smart grid system and facilitate integration of
new technologies such as distributed generation, storage,
demand-side technologies, and electric vehicles. The rulemaking
will investigate the contact between the smart grid and
consumers, including residential, commercial, industrial, and
agricultural consumers and cyber-security issues including
policies to ensure customer privacy.
COMMENTS
1) Author's Purpose . The author has been a strong advocate
of the development of a smart grid, a component of which is
smart meters. However he notes that the use of new
technology in conjunction with the state's energy supply
infrastructure requires added diligence over the protection
of a customer's personally identifiable information
including electrical and gas consumption data. Information
should be kept securely and customers should have the
ability to withhold data without disrupting their ability
to manage their energy consumption. Consumption data can
reveal sensitive personal information about a customer's
schedule and intimate details about their lives such as
their medical needs and personal habits. The disclosure
becomes more acute with time as appliances become "smarter"
and interact with the smart meter and utility.
2) Software Interface . The first California utility of
which the committee is aware that has provided customers
with the opportunity to access their consumption data is
San Diego Gas & Electric. Its customers with a smart meter
can access the Google Powermeter for free and monitor their
energy use from anywhere online. However, in order to
participate the customer must relinquish access to their
consumption data for use by Google through a standard
"notice and consent." The author does not intend to
disrupt this arrangement. In its application, this bill
will however require Sempra to provide customers with an
additional means of accessing consumption data without
allowing a third party to collect, retain, share or reuse
their electric or gas consumption information.
3) Related Legislation . SB 837 (Florez) more broadly
address issues of confidentiality of consumption data and
release of that data to third parties.
POSITIONS
Sponsor:
Author
Support:
None on file.
Oppose:
None on file.
Kellie Smith
SB 1476 Analysis
Hearing Date: April 6, 2010