BILL ANALYSIS
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|SENATE RULES COMMITTEE | SB 1476|
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THIRD READING
Bill No: SB 1476
Author: Padilla (D)
Amended: 4/20/10
Vote: 21
SENATE ENERGY, U.&C. COMMITTEE : 10-0, 4/6/10
AYES: Padilla, Dutton, Corbett, Cox, Kehoe, Lowenthal,
Oropeza, Simitian, Strickland, Wright
NO VOTE RECORDED: Florez
SENATE JUDICIARY COMMITTEE : 4-0, 4/13/10
AYES: Corbett, Hancock, Leno, Walters
NO VOTE RECORDED: Harman
SENATE APPROPRIATIONS COMMITTEE : 10-0, 5/3/10
AYES: Kehoe, Cox, Corbett, Denham, Leno, Price, Walters,
Wolk, Wyland, Yee
NO VOTE RECORDED: Alquist
SUBJECT : Public utilities: smart meters: privacy
SOURCE : Author
DIGEST : This bill requires investor owned utilities and
publicly owned utilities that use smart meters to allow
customers to access their consumption data without
requiring the disclosure of personally identifiable
information or consumption data to a third party.
ANALYSIS : Existing law provides that, among other
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rights, all people have an inalienable right to pursue and
obtain privacy. (Section 1, Article I, California
Constitution)
Existing law requires the Public Utilities Commission (PUC)
to determine the requirements for a smart grid deployment
plan. (Section 8360 et seq. of the Public Utilities Code.)
Current PUC rules require California's largest
investor-owned electrical and gas corporations to replace
traditional utility meters with "smart meters."
This bill requires a local publicly owned electric utility
or an electrical or gas corporation that uses smart meter
technology that allows a customer to access his/her
electrical or gas consumption data to ensure that the
customer has an option to access that data without being
required to agree to the sharing of his/her personally
identifiable information, including electrical consumption
data, with a third party. This bill provides that the local
publicly owned electric utility shall not partner with any
third party that facilitates access to electrical
consumption data that provides an incentive or discount to
the customer for accessing their electrical consumption
data.
This bill provides that a local publicly owned electric
utility shall not share, sell, disclose, or otherwise make
accessible to any third party a customer's electrical
consumption data, except as provided in paragraph (2).
This bill provides that a local publicly owned electric
utility may make a customer's electrical consumption data
accessible to a third party in either of the following
circumstances:
1. The customer was given the option, pursuant to
subdivision (b), to access electrical consumption data
without being required to share personally identifiable
information with a third party, the customer has
declined that option, and the customer has instead
chosen, without revoking that choice, to access his or
her electrical consumption data from that third party.
2. The electrical consumption data is accessed or shared by
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a third party or local publicly owned electric utility
with the customer's prior express written consent for a
demand response program that manages the customer's
consumption of electricity in response to electrical
supply or pricing conditions.
This bill provides that a local publicly owned electric
utility shall use reasonable security procedures and
practices to protect a customer's electrical consumption
data from unauthorized access, destruction, use,
modification, or disclosure.
This bill provides that nothing in this bill shall preclude
a local publicly owned electric utility from using customer
aggregate electrical consumption data for analysis,
reporting, or program management if all information has
been removed regarding the individual identity of a
customer.
This bill provides that nothing in this bill shall preclude
a local publicly owned electric utility from disclosing a
customer's electrical consumption data to a third party for
billing purposes.
This bill provides that "electrical or gas consumption
data" means data about a customer's electrical or natural
gas usage that is made available as part of an advanced
metering infrastructure.
This bill specifies that the electrical corporation or gas
corporation shall not partner with any third party that
facilitates access to electrical or gas consumption data
that provides an incentive or discount to the customer for
accessing their electrical or gas consumption data.
This bill provides that an electrical corporation or gas
corporation shall not share, sell, disclose, or otherwise
make accessible to any third party a customer's electrical
or gas consumption data, with specified exceptions.
This bill provides that an electrical corporation or gas
corporation may make a customer's electrical or gas
consumption data accessible to a third party in either of
the following circumstances:
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1. The customer was given the option to access electrical
or gas consumption data without being required to share
personally identifiable information with a third party,
the customer has declined that option, and the customer
has instead chosen, without revoking that choice, to
access his/her electrical or gas consumption data from
that third party.
2. The electrical or gas consumption data is accessed or
shared by a third party, electrical corporation, or gas
corporation with the customer's prior express written
consent for a demand response program that manages the
customer's consumption of energy in response to supply
or pricing conditions.
This bill provides that an electrical corporation or gas
corporation shall use reasonable security procedures and
practices to protect a customer's electrical or gas
consumption data from unauthorized access, destruction,
use, modification, or disclosure.
This bill provides that nothing in this bill shall preclude
an electrical corporation or gas corporation from using
customer aggregate electrical or gas consumption data for
analysis, reporting, or program management if all
information has been removed regarding the individual
identity of a customer.
This bill provides that nothing in this bill shall preclude
an electrical corporation or gas corporation from
disclosing a customer's electrical or gas consumption data
to a third party for billing purposes.
Comments
The author writes: "Sempra (San Diego Gas & Electric) is
the only California utility of which we are aware that has
a meter interface allowing the customer to access their
electrical use data. Sempra confirms that the customer
cannot use this tool unless the customer relinquishing
control of the data through the standard website "I agree"
which the consumer clicks and in doing so allows Google to
use consumption data for a commercial purpose. Sempra
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confirms they have no other tool available to the customer
for data interaction."
The author has indicated that it is not his intent to
disrupt the arrangement between Sempra and Google.
Instead, this bill is intended to provide a customer 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."
Purpose of the bill . The author has been a strong advocate
of the development of a smart grid, a component of which is
smart meters. However, the author 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.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: Yes
According to the Senate Appropriations Committee:
Fiscal Impact (in thousands)
Major Provisions 2010-11 2011-12
2012-13 Fund
PUC enforcement $115
Special*
* Public Utilities Commission Utilities Reimbursement
Account
The PUC indicates that it will require one additional staff
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position to implement the bill. According to the PUC, an
additional position is needed to review utility marketing
materials, review utility contracts with any third parties
that provide consumption data to customers, and review
utility practices to ensure customer information is
protected.
RJG:mw 5/5/10 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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