Report: Meters falling short
Jun 30 - McClatchy-Tribune Regional News - Jennifer Robison Las Vegas
Review-Journal
Smart meters are all the rage in utility circles these days.
The digital consumption counters are increasingly popular among power
companies because they allow back-and-forth communication between
utility and consumer. Companies say such two-way conversations will save
them on operational costs and let them create pricing programs for
consumers who want to shift power use to cheaper, off-peak hours.
Local power utility NV Energy has its own smart-meter proposal pending
before the Public Utilities Commission of Nevada. The company's $301
million Advanced Service Delivery initiative would replace all 1.45
million power meters in the state with digital meters. The move would
save the utility $35.6 million a year in operating costs.
But a Tuesday report found that smart-meter initiatives nationwide are
falling short of their potential to curb energy consumption, because
they don't include the technologies ratepayers need to take control of
their power use.
The American Council for an Energy-Efficient Economy, a
Washington, D.C., nonprofit, said utilities and consumers could be
leaving up to $35 billion in power-bill savings on the table over the
next 20 years. With the right technologies and programs, the council
said, consumers could cut residential power use by as much as 12 percent
nationwide.
"The bad news is, smart meters don't get the job done," said Steven
Nadel, the council's executive director. "The good news is, we have the
tools already in hand that can be combined with smart meters to achieve
significant new levels of energy efficiency."
The nonprofit evaluated 57 ratepayer-feedback programs between 1974 and
2010 to determine what types of plans curbed power consumption the most.
Their findings: The three best approaches included enhanced billing,
which shows ratepayers how their power use compares with consumption
among neighbors or other similar consumers; daily and weekly use
feedback via in-home energy displays; and real-time use data over the
Internet.
Robert Stewart, NV Energy's senior vice president of customer relations,
said the utility's executives agree with the council's findings on
energy conservation, and that they're working on some of the very
programs the group cited in its report.
The utility is developing a Web-based feedback system that will let
customers see their previous day's use by the hour and monitor their
bill to date. The Web application will be operational by April, when NV
Energy plans to have 130,000 ratepayers enrolled in a pilot program to
test smart meters and demand-response programs. Web tracking will be
available to all ratepayers once all smart meters have gone live in
2012. The utility is also looking at optional features to send alerts to
smart phones or other devices the minute a ratepayer's bill crosses a
certain threshold.
Ratepayers without computers would be able to phone the utility's
customer-service call center for information on their bill to date. NV
Energy is also considering enhanced billing for ratepayers without
Internet access.
Beyond the Web, NV Energy is weighing in-home energy displays that would
update ratepayers hourly on the cost and use of power and let them move
power use to off-peak times. The question is how to get the devices into
the hands of consumers most likely to use them. The displays cost around
$250 -- an expense that might turn away ratepayers. NV Energy conducted
a small trial in 2009 with the displays, and found that 40 percent of
users conserved around 10 percent, even without dynamic- pricing
signals. Another 30 percent saved roughly 5 percent. The remainder
didn't conserve.
"The issue here is to find ways to package this so it ends up with
people who will take action, and not just try to blanket the market with
(the displays)," Stewart said.
Among the possible solutions: Bundle displays with enrollments in
programs, perhaps in the same way NV Energy gives programmable
thermostats to the 60,000 volunteers in its Cool Share program to curb
air-conditioning use on hot summer days. The company might also let
customers defray the cost of a display with savings. The ratepayer who
saves $15 a month through conservation could apply those savings to the
display's purchase.
Despite efforts to promote demand-response measures, some consumer
advocates don't believe ratepayers will benefit from such programs over
the long haul.
During May's Public Utilities Commission hearings on NV Energy's
proposal, Patrick Morton, an economist with the state Bureau of Consumer
Protection, pointed to a different energy-saving technology that hasn't
fulfilled its promise. Just a third of Americans own programmable
thermostats, and fewer than a fifth of those owners use the devices to
change their home's temperature when they're away. And an analysis of
nearly 20 pricing studies nationwide found that time-of-use rates in
some studies were ineffective at sustaining new consumer behaviors.
"Our concern is, after two years, what happens? When people start on a
program, they're eager to change habits," Morton testified. "It's like a
race. You start out very fast, but you lose your interest and energy.
What's of concern is changing long-term behavior."
But Stewart said demand-conservation programs are effective if utilities
give "the right kind of information to the right market segments." Plus,
emerging technologies that automatically shut off pool pumps or other
appliances when power costs reach a certain hourly peak will make
conserving less of an effort, he said.
Contact reporter Jennifer Robison at jrobison @reviewjournal.com or
702-380-4512.
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