Utilities say smart meter concerns are overblown; they'll let consumers opt out for a fee

Utilities say smart meter concerns are overblown; they'll let consumers opt out... for a fee

Aug 02 - Detroit Free Press

The short intervals between charging your electric car alert the insurance company that you might be a speeder. That 2 a.m. batch of microwave popcorn outs you to pharmaceutical companies looking to peddle their insomnia medications.

Some people fear utilities or anyone with access to their data are using new smart electricity meters to peer into your home and create a usage profile that can be sold.

DTE Energy and other utilities say privacy concerns are overblown and that they like the cost savings that come with automated billing because smart meters can transmit usage remotely over radio waves.

They say customers who don't want their smart meters turned on -- or opt out under a state rule -- should cover the cost of human meter reading, an initial $87 fee, plus $15 a month.

DTE submitted the proposal Tuesday to the Michigan Public Service Commission, which regulates utilities and sets rates and fees. DTE was the first major utility in the state to submit its plan for handling these ratepayers.

The news elicited strong reaction on either side of the issue from those commenting on Freep.com and the Free Press Facebook page, most disagreeing that the utility should charge to opt out. However, others commented that opting out creates extra expense and that those customers should pay.

DTE has installed 825,000 smart meters on customers' homes so far, mostly in Oakland County, spokesman Scott Simons said Wednesday. The plan is to have 1.2 million in place by the end of 2013; next up are Washtenaw and Monroe counties.

The company launched a smart meter pilot program in 2008, but ramped up installation in 2009 after getting a grant from the U.S. Department of Energy, according to Simons.

Among those who do not like smart meters is David Lonier, 73, of Auburn Hills, who has installed a lock to keep his old meter attached to his house, put up a sign reminding DTE workers not to replace the meter and also threatened to sue the utility over the matter.

"They invade our privacy. They can monitor use, what's being used in your home, a whole bunch of Fourth Amendment privacy violations. The data can be sold for marketing," said the retired remodeler, who also is worried about radiation some say smart meters give off. "They'll know more about your private life than you wish to disclose. You're not asked if you want to disclose it. They simply take it from you. You have no option."

State Attorney General Bill Schuette joined the conversation in the spring, when he told the commission in a letter that customers should be able to opt out at a reasonable price.

Kevin Doran, a research professor of energy policy at the University of Colorado-Boulder, dismissed the safety concerns, but understands why certain people see the Big Brother implications of utilities' collecting such detailed user information.

"If I give all the smart grid data to a utility, from a consumers' perspective, you'd be potentially worried that if the utility's profits are down (they'll say,) 'Let's (collect) the data and sell it to a third-party data provider,' " he said. "You can really start putting together a digital doppelgänger of somebody."

According to a December 2010 AT&T-sponsored study by Traverse City's Ponemon Institute, which conducts privacy and security research, 39% of respondents believe smart meters working in conjunction with a smart grid will decrease their privacy, compared with 24% who are unsure and 37% who think it will have no impact or a positive impact.

Jackson-based Consumers Energy plans to start installing smart meters for its customers during the third week in September, aiming for 53,000 in Muskegon County by the end of this year and 500,000 by the end of 2014, spokesman Roger Morgenstern said.

The utility plans to submit its pledged opt-out plan to the commission later this year and to date, has received 125 opt-out requests out of 1.8 million customers.

Anyone can send comments about this DTE case, U-17053, or any other to the Executive Secretary, Michigan Public Service Commission, P.O. Box 30221, Lansing, MI 48909. Electronic comments may be emailed to: mpscedockets@michigan.gov

Contact Zlati Meyer: 313-223-4439 or zmeyer@freepress.com

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