Pacific Gas and Electric (PG&E) customers have voiced complaints that their smart meters are charging them more for electricity than they paid before they were installed.  PG&E has been installing smart meters throughout its vast service territory since 2006.  The price tag of the smart meter installation project has been estimated at $2.2 billion.

Customers in the Bakersfield, California region have been complaining about higher bills.  In some cases, customers claim that their bills soared 100 percent or more.  Customers are concerned that PG&E’s smart meters may be extremely inaccurate.  During public hearings held in Bakersfield earlier in October, PG&E representatives were repeatedly booed.

State Senator Dean Florez, the Majority Leader, has demanded PG&E halt the smart meter installations.  State regulators agreed to look into the issue last week but stopped short of calling for a halt to PG&E’s ongoing smart meter project.

“People think these meters are fraud meters,” said Florez.  “They feel they’re being defrauded.  They’re getting no benefit from these things.”

Before California can have a smart grid, smart meters must first be installed.  However, smart meters must be installed correctly and must use accepted technologies or else the effort is worthless.  Smart meters that allow customers to monitor how they are using energy, in real time, are an essential tool for conserving energy and reducing carbon emissions.

“For this state and this nation to go where we want to go, we need smart meters,” said Michael Peevey, president of the California Public Utilities Commission (CPUC).  The CPUC gave its official approval to the PG&E effort before it began in 2006.  The regulatory body announced on October 14 that it would require independent testing of the devices for accuracy.  Representatives from PG&E said they will comply with the CPUC’s wishes.

PG&E executives have said that the smart meters are not to blame for the problems in Bakersfield.  They point to a hot summer and recent increases in electricity raises as the culprits.

The first rate increase came in October of 2008, followed by another in March of this year.  For some customers – those who make the most demands on the power grid – rates jumped a total of 22 percent over the last year.  The increase was hardly noticed in the spring but was easily noticeable in the summer when temperatures soared in Bakersfield.

“It’s primarily a heat and rate issue,” said Felecia Lokey, senior director of customer engagement at PG&E.  Lokey explained that the utility will inspect smart meters at the request of customers.  According to Lokey no malfunctioning meters have been found.

To date, PG&E has installed 3.7 million smart meters – 2 million for natural gas and 1.7 million to measure electricity.  By the time the project is finished in 2012 a total of 10 million will be in place.

PG&E switched to a newer type of smart meter earlier this year.  Some of the Bakersfield customers had an older one installed only to have it swapped with the newer model later on.  GE, Landis+Gyr, and Silver Spring Networks are the smart meter vendors.

Pacific Gas & Electric
PO Box 56
Avila Beach, CA 93424-0056
http://www.pge.com

General Electric
3135 Easton Turnpike
Fairfield, CT 06828
http://www.ge.com

Landis+Gyr AG
Feldstrasse 1
CH-6301 Zug
http://www.landisgyr.com

Silver Spring Networks
575 Broadway Street
Redwood City, CA 94063
http://www.silverspringnet.com

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