Texas Staff Seek Commission Guidance on Smart Meter Opt-Out, Report Potential Options

Staff of the Public Utility Commission of Texas have requested guidance from the Commission as to how to proceed with a project reviewing the potential for customers to be provided with an opt-out from advanced meter deployment.

Through Staff's internal deliberations, comments from stakeholders and the public, as well as a number of meetings and a public forum, Staff has received a number of proposals for implementing an opt-out option for the installation of advanced meters.

Though Staff offered no recommendation in its memo, Staff reported that it has identified several potential opt-out options, some or all of which could be made available to customers wishing to avoid a full smart meter deployment.

First, for customers who have not yet received a smart meter, the Commission could simply provide them with the option of retaining their current non-smart meter on their premises.

Additionally, customers may be able to choose from: (1) having an electronic, non-communicating meter installed; (2) retaining the currently installed smart meter but with the radio(s) turned off; or (3) moving the point of delivery off the customer's building.

The costs for each of these items will vary based on the number of customers electing to opt-out of advanced meter deployment, as well as the type of program elected, Staff noted.

Staff recommended that if the Commission wishes to move forward with an advanced meter opt-out program, it should direct Staff to draft a proposed rule for publication or take any other action the Commission deems appropriate.

Staff further noted various market impacts from the introduction of any opt-out, including potential impacts to retail electric provider operations and the products and services REPs can offer to customers who opt-out.

"For instance, if a customer is on a prepaid product today and wants to opt-out, that customer will no longer be able to take prepaid service because it requires an advanced meter," Staff noted.

Staff also noted that an opt-out may create the potential need for two separate sets of Discretionary Service Charges (DSCs) -- one for AMS customers and one for non-AMS customers.

Other potential impacts include:

• the potential reduction in meter reading and other operational savings previously incorporated by the utility in the Advanced Metering System (AMS) surcharges;

• the additional costs to customers associated with various opt-out program options;

• the loss of outage notification and tampering alerts; and

• utility operational impacts;

Staff is also in the process of preparing a report on the health concerns surrounding advanced meters. Staff anticipates the final report to be ready for publication by the end of November.

Project: 40190