Many consumers wonder : What makes a smart meter “smart” ? And what’s in it for me ?
The staff at the California Public Utilities Commission recently published a white paper explaining how consumers benefit from smart meters. Here are some highlights…
According to this white paper:
“Utilities and regulators have not done an adequate job of explaining how these new devices will benefit consumers.”
“An advanced meter provides more detailed information about electricity usage and costs… it can make informed decisions on how to better manage energy consumption and potentially reduce energy bills. Today, customers have to wait for the end of their billing cycle to receive usage information; but customers with an advanced meter can track electricity use as frequently as they choose… Having more accessible information and feedback on electricity usage will help customers find the right balance between electric usage, enjoyment from that usage, and amount paid for that usage.”
“Today, customers with an advanced meter can access their prior day’s energy usage through their utility’s web site. Within the next several years, by installing an in-home display device a customer could monitor their electricity usage and costs in real time (similar to the price and quantity displays on a gas pump), allowing them to adjust their usage instantaneously in response to changes in prices or signals from their utility by delaying the use of a high-energy appliance or shutting them off. This could be done manually or automatically by pre-programming the device or appliance. Customers will decide when and how to use their electricity before they get a bill that is beyond their monthly budget.”
“With a dynamic rate and with more consumption information, customers can better manage or budget for their monthly electricity bill. However, it is entirely possible that there will be customers who will want to use the information from the advanced meter to save money on their bill, but simply do not have the time to dedicate to managing their energy bill. Using the data from the advanced meter combined with the prices from the dynamic rate, third parties can introduce new ways to customers to help save money. These third-party services can vary from a cell phone application to an integrated communication device in an appliance.”
“Another benefit of advanced meters is that they provide better information about when and how electricity is consumed. This information can reduce the need to build a new power plant or avoid the use of an older, less efficient power plant.”
“Additionally, the advanced meter’s enhanced communication capabilities allow for faster outage detection.”
And in the big picture:
“Ultimately, the additional information about when and where electricity gets used will allow state regulators to make a more informed decision in how to set prices and what types of resources should make up the supply of the state’s electric infrastructure. Best matching consumption of electricity and electricity production will reduce the number of stranded resources and minimize electricity costs. This transition will lead to more reliable, cost-effective, and environmentally responsible infrastructure.”
Source: http://www.emeter.com/2010/how-do-smart-meter-benefits-consumers-california-puc-explains/
