PG&E reports discuss SmartMeter problems
Bakersfield Californian, The (CA) - Wednesday, May 12, 2010
Author: JOHN COX, Californian staff writer jcox@bakersfield.com

Reports made public Monday by Pacific Gas and Electric Co. outline previously undisclosed SmartMeter problems -- most of them unresolved -- raising the possibility of billing errors, added costs and delays in the technology's promised benefits.

Meanwhile, PG&E's admission Monday that tens of thousands of the remote devices have malfunctioned for one reason or another led to renewed calls Tuesday for a moratorium on the meters' installation.

"How much worse does it have to get before the (state Public Utilities Commission) will do something?" asked Mindy Spatt, a spokeswoman for the consumer advocacy organization TURN.

Both developments pointed to continuing public relations trouble for PG&E, which before releasing four years and 667 pages worth of reports Monday issued a sweeping apology for the way it handled customer questions and complaints about its SmartMeters, designed to help people better manage their energy usage.

Various challenges

The problems outlined in the previously confidential reports range from an ongoing inability to recover real-time readings data, to hardware problems originating with PG&E vendors, to questions about how much time and money it will cost the company to defend itself against a lawsuit and other accusations that its SmartMeters are flawed.

Other issues identified in the reports are more hypothetical, such as risks that PG&E's billing systems may not keep pace with meter installations and the possibility that its computers won't be able to handle the high volume of expected meter readings data.

"There are things we're keeping an eye on just in case," local PG&E spokesman Denny Boyles said Tuesday.

He added that customers should feel "pretty confident" that the company will solve the problems before they become bigger challenges.

He said PG&E will continue to update the public on its progress toward resolving each of the challenges.

Classified as either "risks" or "issues," the problems were identified by PG&E technical staff and included in the reports as updates to the commission and its consumer advocacy arm.

Vendor problem solved

At least one of the problems listed in an April progress report has been put to rest, according to one of PG&E's vendors, Redwood City-based Silver Spring Networks, maker of a second-generation SmartMeter.

The problem stemmed from a faulty electrical component inside the device's radio transmitter. Silver Springs Executive Vice President Eric Dresselhuys said the company noticed the problem in 290,000 SmartMeters before they were delivered to PG&E.

Silver Spring has switched out the part and resumed deliveries, Dresselhuys said.

"We're back in business in terms of shipping product," he said.

Another problem has to do with unforeseen barriers to getting readings from meters placed in basements, cabinets and even agricultural areas.

Boyles said the company is working to resolve this issue by, in some cases, putting in extra signal relay stations. The April report cited the problem's potential impact as affecting scheduling, costs and realization of customer benefits.

Calls for a moratorium

TURN and state Sen. Majority Leader Dean Florez , D-Shafter, a frequent critic of PG&E, took the opportunity Tuesday to push again for a moratorium on meter installations.

"I've been advocating for a moratorium on the installation of smart meters since the first day that I heard directly from PG&E customers about the problems they are facing," Florez wrote in an e-mail. "I believe that a moratorium made sense months ago and it makes even more sense now given the public release of information confirming the problems PG&E is experiencing."

For months the commission, PG&E's primary regulator, has rejected the idea of a moratorium.

It has said such a move would be premature until it receives results of an outside SmartMeter investigation it contracted. Results of the inquiry are expected in late summer.

Asked Tuesday whether it was time to reconsider calls for a moratorium, a commission spokesman referred to a March statement by the commission that "there are millions of Smart Meters installed and operating around the globe with no complaints.

"In addition, a moratorium would involve costs to consumers for ramping down installation and re-starting at a later date that we cannot determine are warranted at this time."

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