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July 24, 2009

What do BGE smart meters mean for those who buy electricity from WGES and other third parties?

A reader has a question about this column, which said, "BGE's ambitious 'smart meter' program promises to bring the electrical grid up to the technology standards we expect from bank accounts, cell phones and coffee makers." She asks:

One issue you didn't address in your article the other day is that those so-called "smart meters" won't buy a thing for those of us who took your earlier advice and who are now buying our electricity from another supplier. So, we end up paying BGE for meters we don't want and don't need. We have always been frugal with electricity. That's why we have solar heating and have only turned on the AC about twice in 30-some years. There is a minimum amount of electricity we must use, to run the fans and pumps and whatnot that make this system work. And now, what we do use comes not from them but somebody else. So, we would like to opt out. How much you want to bet that's not an option?

My reply:

You’re right. Opting out will probably not be an option. The only way to make the system work well is to install meters for everybody. But it’s a great investment for society. It’s unclear whether we’ll still be able to buy from WGES in the future. Policymakers are talking about prohibiting all shopping and making everybody buy BGE’s standard product. But in any event 1) The smart meter rebates are supplier neutral. They’ll be passed thru the BGE portion of your bill, which you always pay. You’ll get them no matter who your suppier is. 2) None of this is going to get launched for a year or two. Your WGES contract will probably expire before you get a smart meter.
Posted by Jay Hancock at 10:26 AM | | Comments (2)
Categories: BGE/electricity
        

Comments

"Smart" meters relate to distribution technology; not to the commodity.

Thanks for clearing up the supplier-independent nature of the rebates for the group. I also like that Smart Meters will alert BGE when there is an outage at your residence. I wonder if the majority of the public knows that the current infrastructure that BGE is targeting for replacement has to rely on people calling in outages.

I also like that I’ll have closer to real-time feedback on my energy usage. Getting your monthly usage after the period is up does little to help you identify the spikes in your energy usage. Along those same lines, estimated bills will no longer be necessary from what I hear. The potential for automation that the new meter will provide is attractive to the gadget/tech crowd folks like myself.

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About Jay Hancock
Jay Hancock has been a financial columnist for The Baltimore Sun since 2001. He has also been The Baltimore Sun's diplomatic correspondent in Washington and its chief economics writer. Before moving to Baltimore in 1994 he worked for The Virginian-Pilot of Norfolk and The Daily Press of Newport News.

His columns appear Tuesdays and Sundays.
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