AARP questions BGE's 'smart meter' plan
The Maryland AARP questions BGE's plan to install smart, computerized meters and increase June-September peak-time electricity rates by about a fourth to 16 cents per kilowatt-hour. Sez the AARP:
BGE recommends a pricing structure for all residential customers that would raise rates in the summer by to 16 cents per kWh for usage between 2 and 7pm every summer day. While BGE’s press releases have noted the potential for customers to earn a peak reward credit in the amount of $1.75 per kWh, that option would only exist for the estimated 12 critical peak day events that BGE projects will occur. As a result, residential customers will pay a higher price for essential electricity service for every summer day and only obtain any rewards or benefits if there is a critical peak event called by PJM and only for those few days in which such critical peak events are likely to occur.
BGE has said changing the summertime rates will be "revenue neutral." To me that means revenue neutral NOT COUNTING the $1.75 rebates for lowering your consumption on critical days. Under a real revenue-neutral program, the increase in summertime 2pm - 7pm rates would be 100% offset by a decrease in non-peak rates for everybody. Mrs. Jones in Hampden would see her everyday daytime kw expense go up, but her everyday non-peak kw expense would go down by a like amount -- even if she doesn't change her use pattern.
The rebates for consumption cutters should be financed externally -- through savings gained from not burning expensive peak kilowatts, capacity payments etc. They shouldn't be financed by taking money from Mrs. Jones and others who who don't cut consumption. As BGE's Mark Case explained it when I asked him about this last week, BGE's plan won't penalize Mrs. Jones. Case:
The worst a customer can do is to forfeit the opportunity to save money via the rebates. Our rebate level is not funded through base rates or any customer subsidy – rather it is funded by the PJM capacity and energy revenues which result from the load reductions.
The PSC needs to make sure this plays out the way he describes it. The full text of AARP's letter to the PSC is below the fold.
AARP's letter to the PSC:
AARP opposes the request made by Baltimore Gas & Electric (BGE) to expedite consideration and approval of its proposed ‘Smart Grid Initiative’ which is estimated to cost more than $800 million over 15 years and would impose mandatory time of use rates. Expedited approval of a significant investment and fundamental change in pricing is contrary to the public interest. Nor is it necessary, as BGE implies, to secure federal stimulus funding. This request, combined with a similar request from PHI for its service territory, would add more than $1 billion in costs to customer bills. AARP urges the Commission to give these cases the careful scrutiny the consumers of Maryland deserve and expect.It is unfair to parties, and the public, to fast track such a significant filing which would immediately approve a cost recovery tracker. BGE’s filing is more than 400 pages long and includes the testimony of five witnesses and extensive attachments and exhibits. AARP urges this Commission to establish a procedural schedule that will allow the full and fair opportunity for the parties to explore the evidentiary basis for BGE’s assertions about costs and benefits and provide testimony from parties other than BGE prior to any action by this Commission. To date there has not been any formal schedule or opportunity for an adjudicatory decision-making process on a proposal that is likely to have significant impacts on customer rates, terms and conditions of service. BGE’s proposed ‘legislative-style’ hearings are not adequate to fully investigate this level of investment.
As BGE notes in its July 22 letter, the Department of Energy requires utilities seeking federal funding under the American Recovery and Reinvestment Act (ARRA) must include in its application ‘correspondence from their local regulatory agency indicating when the approval process will begin and outlining the likely timeline.’ However, BGE does not need to have the cost tracker approved prior to applying for these federal funds. An expedited approval is not a requirement of the DOE guidance.
Of particular concern to AARP is fast-tracking BGE’s proposal to radically change the pricing structure in Maryland by instituting a mandatory time-based rate structure for all residential customers. BGE recommends a pricing structure for all residential customers that would raise rates in the summer to 16 cents per kWh for usage between 2 and 7pm every summer day. While BGE’s press releases have noted the potential for customers to earn a peak reward credit in the amount of $1.75 per kWh, that option would only exist for the estimated 12 critical peak day events that BGE projects will occur. As a result, residential customers will pay a higher price for essential electricity service for every summer day and only obtain any rewards or benefits if there is a critical peak event called by PJM and only for those few days in which such critical peak events are likely to occur. BGE’s proposal does not provide any bill impact analysis of this dramatic change in residential rate structure. Nor should such a dramatic change be rushed through the normal regulatory process.
Other concerns should also be explored in further detail and with an opportunity for formal discovery and opportunity to submit testimony on the record, such as the basis for BGE’s estimates of costs and benefits. AARP notes that BGE intends to implement remote disconnection of service as part of its metering proposal and this policy change also deserves careful review and consideration.
AARP supports grid modernization, efforts to improve efficiencies in the transmission and distribution systems, and demand response programs that are cost effective for ratepayers. However, the cost and magnitude of the proposed investment, coupled with BGE’s intention to establish mandatory time based rates, are compelling reasons to reject the proposed expedited schedule. A more reasonable schedule that allows for full and fair review of this proposal should be established and would be available for BGE to include in an application to DOE for federal stimulus funding.
AARP requests an opportunity to appear and speak at the Administrative meeting on July 29, 2009.
Comments
So overall the prices are going up, with 12 days to be able to regain costs? But not full costs only partial costs. I thought 2 weeks ago the people from BG&E, the CEO actually with a constellation email, stated on one of his comments that the price would be going down. Not going up. Im sure if these articles are archived we can easily go back and read that. So we proved that hes a liar, but we are still considering his options. They lied, they got caught, DENIED!!!!!
Posted by: Aaron Nocar | July 28, 2009 7:17 AM
So how does BGE's "smart meter" plan affect those residents who buy their electricity from other suppliers, WGE, PEPCO etc?
Posted by: Robert | July 28, 2009 8:44 AM
Robert - check out Jay's blog entry from 7/24. It touches on that very topic.
Posted by: Bob UU | July 28, 2009 10:41 AM
2/27/2010
I read that the AARP got a grant for $18 million dollar ?
And also they approved a $ 500 billion dollar cut within this Bill
And there are around 150 thousand people that pay over $500.00 per month to AARP for Medicare ?
I have been going to a great deal of trouble to show that this whole Health Care Package is a $100 Trillion dollar package.
Sooooo, this is why the AARP is in bed with the Government, wow, Welcome to the first steps for Force Pay in a split petition. wow ! this is what I get for staying out of issues for over 30 years...
This story is one of thousands of people who have been dumped on by Insurance Companies. So One day on a blog site i asked the big why... Why force pay into a failed system of Insurance Companies and at the same time tax that all ready burden system ?
It is because of a dirty little secret. This health care system is a $100 trillion dollar bread maker per year, and the tax lie was the secret of the 10% per cent tax across the board, so where does this secret tax money go ?....,....
I can show on page 100 at our site a conflict of information of numbers released by Officials, and it looks like a lot like borrowing from Paul to pay Petter... until I noted the balance of a number with just a top ten list of Health Care Insurance Companies, and this threw my mind off,
so at a kind of a low ball figure what is 100 milliom Health Care members x $100.00 per month x 12 months ?
Then I pulled a list of several hundred HCIC COs. It is stated that over 45 million people are not covered. So I did this at $5.00 per month for the poor x 12 ?
And last for this blog, I pulled the top 1000 Companies that face force pay. Please remember their are around 373 to 400 million people that are legal in the U.S. and around 117 million illeagle........
Soooo, some body is taking cookies out of the jar, ohhh yea the are only around 250 million people old enough to work at a job, but according to lay offs there are around 173 million + people still working....
Hmmmm I got a little more work to do,
Henry Massingale
FASC Concepts in and for Pay It forward
www.fascmovement.mysite.com on google page 1 american dream official site.
Posted by: Henry Massingale | February 27, 2010 5:36 PM
3/22/2010
I had to wait for this Bill to be passed in order to show the Republican Party and GOP and FRC Action that it is the voice of the people that guides the destiny of this Country.
As predicted , the first stages of the Health Care Bill was passed. Why, you ask ? It is because people wish to be seen for their in put of a view and not unite. What is lost is respect with in a concept of { Freedom Of Choice } to be a part of this system or not, with in this Health Care Force Pay Matrix.
What is offered by FASC Concepts is the Freedom Of Choice, because we feel it is unconstitutional to force pay into the failures of Health Care Insurance Companies and then Tax that money. As you can see our elected officials are paying little attention to the public. As I reach out to my computer and I knock , knock, knock on the screen, and I say is there any body out there?
This Health Care issue keeps taking turns and twist that bewilder the mind in thoughts. This $100 trillion dollar system ,as it would seem, I am counting up to $ 8 trillion 682 billion Dollars so far. One guy emailed me and he is up to $27 Trillion dollars.
You see when Harry Reid added a extra ....almost, $2 Trillion dollars in a tax forum, this through my numbers off with the 1 to 3 year spread of taxes.
Lets show you this way seeing how I run out of fingers to count on and I do not feel like taking my shoes off.....
to get a $4 Trillion dollar tax spread, it is based at a 0.25% up to 4 years.
To be able to see the amount taxed in one year as a whole at 50% is around $8.2 Trillion to $8.8 Trillion, please remember according to Government Officials this is to be a spread tax, 3 to 10 years.. There is over 10 thousand companies I have not even got to yet. So lets take this $ 8 trillion 682 billion Dollars and forget about the other figures, reach into your mind and say ,1 to 3 to 10 years Tax against the Health Care System, then take this 10% tax against the almost $4 Trillion Dollars, your factor must be a multiplication. Then you will see this Tax factor as net value of that system. But of course Government Officials will not show the a net value of a system or that one company, this wold make it to easy for the People to follow the Tax Dollar.
Remember this tax dollar does not include the split petition of the tax forum of increases in other areas, in the name of Health Care Reform. This tax forum I, or we can have very little effect against.
As for theses hidden taxes, they are not hidden. They are built into a split petition. They are meant not to be seen, only revealed as the Progressive Capital Tax Forum works the system in order to not over burden the money system. What is lost is trust because Government Officials by considering the public slow witted and as for this Bill, I want to read the Law that is to represent the Bill. This is because one word has a directive and a code and a sentence can lead to a different truth in concept.
So now it begins, the Civil Rights Law Suits and Constitutional Suits. We are not talking just a few law suits we are talking thousands will be filed because of the Freedom Of Choice is taken away and a Tax against money that is not Government Officials Rights to Tax, the Health Care Money for Coverage.
Within our web site we suggested to build a Government Web Site that will show the People the monthly income of this Health Care Dollar and what the dollar is used for. But of Course this can not be allowed this would audit the IRS and Government System.
So, what do you wish to do ? Sit back and complain or unite your voice as one and state that ,{ We believe in the Freedom Of Choice to be a Part Of this Health Care System or not. } We intend to give life to hope to where there is none.
FASC Concepts in and for Pay It Forward. Join the trickle effect and email President Obama .....
Our goal is to start a trickle effect and the goal is President Obama and this Bill to Law. To merge 250 million veiws for a honest Health Care reform. The trickle effect is , Email President Barack Obama
Mar 20, 2009 ... How to contact President Barack Obama and other White House Officials.
www.emailthepresident.com/ - Cached – Similar
and state we support FASC Concepts in part or in full, and share your views and be respectful in order to gain respect.
Health Care within a moral value, is to ,
{ GIVE LIFE TO HOPE WHERE THERE IS NONE }
Henry Massingale
FASC Concepts in and for Pay It Forward
www.fascmovement.mysite.com on google. yahoo, and aol.com
please take the time and visit all my new friends on the net and if you wish to post with FASC Concepts you will be most welcomed. So join us and share your ideas as one in one voice. Just type in the web address and you will see over Results 1 - 10 of about 6,730 for www fascmovement com and there is over 10,000 post that are 6 month old.
Posted by: Henry Massingale | March 22, 2010 2:24 PM
I am with AARP on this. And on AARP's argument on behalf of the consumer that 1) consumers would bear all the financial risk; 2) the majority of the promised benefits (cost savings) were based on assumptions that had no sound basis and were highly speculative; and 3) that consumers should not be forced into time-of-use rates.
There just isn't any favorable gain for the consumers with this so called smart meter.
Posted by: CCRx Part D | December 7, 2011 11:42 PM