Potential costs for opting out of smart meters are identified

Feb 24 - McClatchy-Tribune Regional News - Cy Ryan Las Vegas Sun

Smart meters, which have stirred controversy, meet health and safety standards, but NV Energy should offer objecting homeowners an alternative, says a proposed decision by the state Public Utilities Commission.

But those residents who decide to take a digital-type meter should pay the extra cost, says the suggestive ruling authored by Commissioner David Noble.

The proposed ruling will be discussed by the full three-member commission at a special meeting on Feb. 29.

Company spokeswoman Faye Anderson said, "We don't comment on draft orders."

Noble recommends a trial period to see if the critics of the smart meters will decide to switch to the digital meter. NV Energy estimates 4,500 customers in Southern Nevada and 3,000 in Northern Nevada would change from the smart meters.

NV Energy estimates those who switch in Clark County would have to pay $178 for installation and an ongoing $14 a month. In Northern Nevada the upfront cost would be $212 and an ongoing $16 a month.

The ongoing costs would be for such things as meter reading, back office labor costs and annual hardware and software maintenance.

NV Energy, according to the proposed PUC order, plans to install 1.35 million smart electric meters with the total cost of $301 million, with $138 million coming from the federal government.

Some consumers are concerned that installation of the smart meters would result in another layer of radio frequencies in the home and cause a health hazard. Noble says the smart meters meet the standards of the Federal Communications Commission.

"It has not been established that cancer or other health effects result from long-term, low-level exposure to RF (radio frequency) signals," said the preliminary order.

Noble said the installers of smart meters have the same credentials as those required for the current analog meters. And there are regulations in effect prohibiting the release of customer information under the new meters.

"NV Energy has taken all reasonable measures to ensure customer privacy and security, but no system is totally safe," said Noble. But the company has hired an outside auditor to look at the security concerns raised by customers.

Customers also are worried about the accuracy of the smart meters. As of Nov. 1, 580,784 meters were installed in Southern Nevada and there have only been 1,356 failures. And there have been only 60 complaints of high bills.

Noble says data from the company show the smart meters have been as reliable as analog meters.

The draft PUC order says NV Energy should offer digital meters, which can be measured by a drive-by reading. Digital meters have relatively low cost and do not communicate or store interval data.

Noble said, "The cost of the trial opt-out tariff must be borne by the customers who demand, for whatever reason, the tariff that results in incremental costs to NV Energy."

NV Energy doesn't have an exact figure on how many customers will join the opt-out program so it can't estimate the cost.

And the PUC is rejecting the suggestion of AARP, the largest and most influential organization of older Americans, that low-income customers who decide to get the digital meter should have a discount. It said that no low-income subsidy should be borne by the general ratepayer.