Maryland to Require Smart Meter Opt-Out

The Maryland PSC has ordered that further proceedings be held to develop a mechanism to allow customers to opt-out of the use of a smart meter, though a specific mechanism was not adopted.

Nevertheless, the Commission has concluded, "that the public interest requires that we provide ratepayers of Potomac Electric Power Company ('Pepco'), Baltimore Gas and Electric Company ('BGE') and Southern Maryland Electric Cooperative, Inc. ('SMECO') (collectively 'the Companies') with an additional option related to the installation of smart meters in their homes."

"We will conduct additional proceedings to determine whether the preferred course is either a) to allow customers the option of retaining their current analog meter, or b) to require all customers to receive a smart meter but with the option to have that meter installed to operate in an 'RF-free' or near RF-free manner," the PSC said.

"Whichever option we ultimately choose, we will require those ratepayers that exercise the option to bear appropriate costs," the PSC ordered.

"However, because we do not believe the record before us provides us with sufficient information regarding the overall system, as well as customer-specific, cost-differential between these two options, we will conduct additional proceedings to resolve these remaining issues. Until such time as we decide which option will be available to customers and the specific costs that will be associated with that option, our May 25, 2012 Interim Order remains in effect, and those ratepayers that have previously informed their utility that they do not wish to receive a smart meter need not take any additional action at this time. After we ultimately determine the nature of the 'opt-out' and its associated costs, all ratepayers will have the opportunity to provide their utility with their final decision," the PSC said.

Chairman Douglas Nazarian and Commissioner Kelly Speakes-Backman jointly filed a dissent in the case, in which they said, in order to achieve the policy goals that are reliant upon advanced meters, they would have decided in the instant proceeding to not allow complete opt-outs with the customer retaining an analog meter, instead directing that the utilities only provide customers with a significantly reduced or RF-free advanced meter installation alternative that would preserve a single metering system infrastructure

The majority noted that the Commission, "may ultimately determine that their proposed outcome [from the dissent] is the better path to take. However, we do not believe the current record adequately establishes that allowing customers to retain an analog meter would so increase costs either to the Companies or to individual customers that we should remove this option from consideration at this time."

Case 9207 et. al.