Smart meters: will they convince people to save energy
Baltimore Gas & Electric wants all its customers to have "smart meters", which they say will help people save by telling them how much energy they're using on a hour-by-hour basis. Under their plan, people would earn rebates by conserving energy on critical peak period days --- days of highest energy demand. And BGE would save through automated meter reading and automated disconnection/reconnection of service.
The Maryland Public Service Commission has the final say in the $500 million proposal, which BGE predicts will save the company millions and consumers billions. BGE has requested to speed up the review process, which the company feels would helps its application for federal stimulus grants for smart grid investments. That money is to be awarded in October. Check out the BGE proposal submitted to the PSC here.
AARP Maryland and the state Office of the People's Counsel, which advocates for consumers, feel that a full hearing with sworn witnesses and on-the-record testimony by experts would better serve Maryland residents. They want time to vet the savings claims that BGE has made. And AARP worries that proposals to charge higher rates for peak use in the summer would adversely affect sensitive populations such as seniors, as Jay Hancock explains over at his blog.
How much could you really save?
Annapolis resident Shirley Norlem, a retiree who volunteered for BGE's "smart meter" pilot last summer, said she saved about $15 for each critical peak period last year (about 12 total). She would turn off appliances and unplug chargers when she knew the peak period was coming. Then Norlem would check the meter right before 2 p.m. and after 7 p.m. to see what she used. BGE would also send her letters and emails detailing her savings.
“I think if you’re going to offer money for what they save, then people will do it,” Norlem told me. “You can enlist the children and make it a game for them.”
But will other Maryland residents like Norlem?
Erfan Ibrahim of the Electric Power Research Institute was doubtful. Most people don’t have a true financial incentive to make a change, he said.
“As long as electric bills are in the 5 to 10 percent range of take-home income, it’s not going to be a big deal to override,” Ibrahim said.
And Richard Bingham, who writes for Electric Contractor magazine, agreed. These meters require people to change their lifestyles to save, and most don't go out of their way to conserve as it is. People aren't home at 2 p.m. to turn off their appliances, and they're not likely to avoid watching TV or put off cooking dinner to save money, he predicts.
Neither of the two men say they oppose smart grid improvements --- they just want everyone to have realistic expectations.
BGE says that customers could automate some of their savings by also signing up for Peak Rewards and getting "smart" thermostats that would communicate with their new meters, adjusting temperatures based on the electric prices, as well as switches for their air conditioning and hot water heaters.
What do you think? Would knowing how much you were spending affect how you consumed energy? Would you be able to reduce your bills with the help of a smart meter?
(photo: Kim Hairston/Baltimore Sun)
Comments
While I thoroughly disagree with a lot of BGE's rates and practices, smart meters are a good thing. I operate three industrial power plants that use meters similar to this. It enables us to watch the hourly pricing and determine if it economical to generate power during the day when prices are high or bring in power at night when prices are very inexpensive. As an example, last May 21 at Brandon Shores, power was $0.014/kw at 3AM and $0.123/kw at 4PM. Put a timer on your washing machine, and you are paying 1/10 the amount for power. Remember, this does not include the transmission and distribution costs of BGE, which are regulated and terribly expensive. But the way to take advantage of the low cost of energy at off peak periods is through smart meters.
There are some things wrong with this proposal though. Why is BGE quotiong a cost per kwh? They only distribute, they are not a supplier. There are many suppliers, and they shouldn't be one of them. Here they are absolutely trying to get back into the supply side again. Also, why are there only two prices? The smart meters can just as easily tell you what the cost of power is at that hour in addition to an idiot light. You can make your choice based on your own budget. Power supply prices can actually be free at certain times during the fall and winter (before BGE puts their costs on it). At the high end, it can actually be as high as $1 per kwh, although not very often.
I believe the smart meters are a good idea, but we have to watch how they are being applied. It is a lot easier for people to shut a few things off for a few hours than build more power plants that will run about a month a year.
If anyone needs more details on power pricing, go to www.pjm.com. To see the price of power (in megawatts, not kilowatts) go to http://www.pjm.com/pub/account/lmpgen/lmppost.html. Remember, the price does not include the outrageous BGE fees for getting it to your house!
Posted by: Chuck Edwards | July 28, 2009 9:30 AM