Pennsylvania bill would mandate use of smart meters

In Pennsylvania, just like the rest of America, the rising cost of energy is felt most at the gas pump.  Recently, however, gasoline prices have fallen by up to 50 cents a gallon, or more.  Within Pennsylvania the price for gas has fallen 22 cents a gallon over the last two weeks.  The biggest reason given for the falling price of gas is that people are driving less than they once did.

Similarly, legislators in the state want to see electrical rates fall.  That could happen if a bill that is currently tied up in the state Senate wins approval according to supporters of the legislation.
The bill was introduced by state Representative Camille “Bud “ George, a Democrat from Clearfield, and it would require that Pennsylvania reduce its total energy consumption by 2.5 percent cumulatively by the year 2013 in addition to a 4 percent reduction in peak consumption by the year 2012.

The legislation would also require the introduction of smart meters that would enable energy customers to save money on their electric bills by allowing them to monitor the current price of energy.  With a smart meter in place, consumers can learn to use energy-intensive appliances, such as dishwashers or clothes dryers, during off-peak times, typically at night.

“Conservation is the fastest way to keep prices down,” commented Jan Jerrett.  Jerrett is the vice president of PennFuture, a policy group that backed an effort launched on August 13 that is pressuring state Senators to pass the bill.

PennFuture has enlisted the help of more than 50 businesses in addition to civic and religious groups in the effort to pressure the state Senate.  The group has said that failing to pass the bill in the spring earlier this year will cost residents and businesses money because they won’t have the ability to reduce their energy consumption before rate caps expire in 2010.  Rates are quickly expected to surge between 20 and 60 percent when they expire.

The bill was quickly passed in the state House, but state Senators have stated that they want more time to debate the particulars contained within the legislation.  Senate leaders said they expect to renew debate on the bill during the fall session.

Specifics on how the bill will be carried out are yet to be written, but provisions would give the Public Utility Commission the ability to hand out contracts to power providers that would work with the state’s largest industrial firms to help them reduce their energy consumption by 2.5 percent, according to Representative Greg Vitali, a Democrat who co-sponsored the bill.

Vitali also says the legislation won’t require any additional taxes from taxpayers.  He said the costs associated with installing the energy saving technologies, including smart meters, would all be offset by the savings generated on reduced energy bills.

“It’s cheaper to conserve,” added Vitali.  “You’re saving companies big money when these energy companies come in.”

Michael Love, executive director of the industry representative group Energy Association of Pennsylvania said that details still need to be worked out but there is a great need for the conservation bill to pass.

The primary questions regarding the proposed legislation have to do with whether residents and businesses would have the option to install smart meters of if their installation will become mandatory.  The bill, as proposed by Representative George, would require the installation of smart meters.

Another concern has been voiced over what qualifies as a smart meter.  Love says that both PPL and PECO have already switched to a device that performs some of the functions that smart meters are capable of.

Rushforth Solar part-owner Jan Rushforth says she supports the bill.  Her company installs water heating systems powered by solar energy in the Philadelphia area.

Installing smart meters would go a long way towards a significant reduction in peak-hour energy consumption as consumers would have the information they need to curtail electricity usage during particular times of the day.  Once aggregate demand for power begins a downward slope, there will be no need to construct new power plants or distribution infrastructure, said Rushforth.

PennFuture
http://www.pennfuture.org

PPL Corporation
Two North Ninth Street
Allentown, PA 18101
http://www.pplweb.com

Exelon (PECO)
Customer Care Center
P.O. Box 805379
Chicago, IL 60680-5379
http://www.exeloncorp.com

Rushforth Solar LLC
3700 Darby Road
Bryn Mawr, PA 19010
http://www.rushforthsolar.com