The growing voice of the consumer
The consumer has had the softest voice so far in the pursuit of the smart grid and the National Association of State Utility Consumer Advocates (NASUCA) is working to change that -- and rightly so. After all, we will be the ones who pay for it, either through taxes to support the American Reinvestment and Recovery Act (ARRA) funding, or through our utility rates. NASUCA’s recent efforts should be viewed as a welcome addition to the ongoing dialogue about smart grid.
Last summer, NASUCA passed resolutions outlining principles related to the smart grid and advanced electric metering. Generally speaking, these resolutions outlined the need for prudent evaluations of the technology to ensure interoperability and performance, the use of pilot programs to provide foundation for cost/benefit analysis and, of course, a general desire to ensure that the benefits outweigh the costs -- to name but a few. Importantly, NASUCA also advocates that advanced metering and smart grid initiatives should not have the unexpected consequence of eroding existing consumer protections. These positions are reasonable and serve as important safeguards to help ensure that consumers and regulators have a better understanding of all issues related to smart grid and advanced metering deployments.
I recently had the pleasure of visiting with Mary Healey from the Connecticut Office of Consumer Counsel and the current president of NASUCA. Healey, along with the rest of NASUCA, is working diligently to ensure that the consumer’s voice is heard and receives important consideration with regulators and utilities. They are receiving a warm reception from FERC and other interested parties who are seeking to better understand the consumers’ perspective.
NASUCA is not alone in its efforts to raise the voice of the consumer. The utilities we work with everyday have long cautioned that feedback from consumers is a critical part of their decision-making process and that they are working with their respective regulators and state consumer counsels to ensure participation and feedback. Indeed, with nationwide estimates for smart grid build-out totaling in the trillions of dollars, it would be unwise not to include the voice of the consumer.
NASUCA certainly supports the concept of a more efficient energy sector, but simply wants to ensure that consumers have a good understanding of what smart grid and advanced metering infrastructure may really mean, what it costs and how they may be affected. Healey finds it analogous to the "truth in lending" requirements in the financial industry. Simply stated, consumers should be fully informed before being asked to fund it.
NASUCA’s recent undertakings provide cohesion to an otherwise fragmented voice and they should be commended for it. They are clearly becoming the go-to agency at the national level. Although it remains to be seen how strong that voice will become and what key issues of contention may surface, it remains abundantly clear that consumers desire to be heard on these issues. It is a welcome addition to the ongoing conversation.
I enjoy discussing industry issues with you. Please feel free to share your thoughts in the comments section, or reach me directly at bthielbar@energycentral.com
Bart Thielbar is a senior research analyst working on behalf of Sierra Energy Group, a division of Energy Central.
Comments
Consumer voices
The consumer voice is important, unfortunately they are all way behind the learning curve. Most would like to know energy usage and how it relates to their costs. Most consumers do not understand how the consumer/utility relationship actually works. Working for a utility for over 27 years, I have to explain to customers how the state is their representative and works through tariffs in our states. The rate structure is different amongst utilities and doesn't include monies for installations of Smart Grid technologies. From my perspective, only progressive utilities have set aside or applied for funding that would advance their Smart Grid technology and realize the importance of educating the customers on usage and cost. The more we educate our customers, the more they will understand the waste and be able to conserve.
I am concerned over all the market available programs for monitoring and reporting usage but consumers do not realize the need for a meter that captures the data needed for the programs. In some cases it appears America has the cart before the horse. Having a data source to feed the programs that are written for consumers to understand is first. Marketing these products before the data is available seems like the marketing groups are driving the cart. I agree utilities should get on the wagon and commit to installing meters that provide not only the customer but themselves with valluable data to improve operating efficiencies on both sides of the fence.
Until customers understand their rate structure, the technology needed to get the data to support this technology and the cost associated with doing it, it only appears to be another appplication to add to the list of cool things on your iPod.