PG&E probe of SmartMeters to start soon
David R. Baker, Chronicle Staff Writer

Tuesday, March 9, 2010

California energy regulators said Monday that they will soon start investigating the accuracy of Pacific Gas and Electric Co.'s controversial SmartMeters, after a state senator complained that they had been dragging their feet.

The California Public Utilities Commission promised in October to have an independent evaluator test the meters. But so far, the commission has not hired a consultant to do the work. Spokeswoman Terrie Prosper said Monday that the commission expects to name a consultant later this week.

Many customers have complained that their gas and electric bills soared after PG&E installed the digital meters, which transmit data to the utility via wireless signals. PG&E, based in San Francisco, insists the meters are accurate, blaming most of the higher bills on hot weather and rate increases.

Consumer advocates have grown increasingly frustrated waiting for the investigation to begin. On Monday morning, Sen. Dean Florez, sent the commission's president a letter demanding to know why a consultant hadn't been hired. He noted that PG&E recently told analysts and investors that it plans to speed up SmartMeter installations this year.

Florez has called for a moratorium on SmartMeter installation until questions about the devices' accuracy are resolved, an idea the utilities commission has resisted. PG&E, he said, is trying to deploy as many meters as possible before independent testing can find any problems with them.

"I think PG&E is intentionally trying to get them in the ground as fast as possible to render this moot," Florez, D-Shafter (Kern County), said in an interview.

Prosper said the commission needed time to solicit bids from consultants, interview them and compare their costs.

"We recognize the urgent need to begin this investigation and have been expediting the process as much as possible within the confines of our competitive bidding requirements," she said.

PG&E has installed 5 million SmartMeters to date and expects to reach 8 million by the end of this year.

But company spokesman Jeff Smith said Monday that this year's deployment schedule was set last summer - before the investigation was announced - and has not changed. He dismissed the senator's suggestion that PG&E wanted to install as many meters as possible before the investigation got under way.

"With all due respect to the senator, we don't believe his speculation deserves a response," Smith said.

E-mail David R. Baker at dbaker@sfchronicle.com.

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This article appeared on page DC - 1 of the San Francisco Chronicle