Smart Meters Save Money, But Erode Privacy
Posted on: Saturday, 7 November 2009, 05:50 CST
Those new smart meters that Peco Energy Co. and other utilities will install soon are being touted as money-savers that will give customers more control over their electric bills.
But for the utilities, the meters' real worth lies in the information generated, including details that some customers might prefer remained secret.
"The collection and storage and retention of the data makes it vulnerable to security breaches as well as to government access," Christopher Wolf, the co-chairman and founder of the Washington-based Future of Privacy Forum, told AFP.
Smart meters, which Pennsylvania is requiring for all large electric utilities, allow for two-way wireless communication with customers. They will set the stage for time-of-day discount pricing to encourage off-peak consumption. And for customers who consent, utilities can control some home appliances, such as air conditioners, remotely by sending a signal to a smart meter.
More than eight million "smart meters" have already been installed in the United States and the number is projected by the government to rise to 52 million by 2012.
Last month US President Barack Obama announced $3.4 billion in grants to modernize the country's electricity grid, part of which will pay for about 18 million "smart meters."
Elias Leake Quinn, a research analyst at the Center for Energy and Environmental Security in Boulder, Colo., said, "Utilities tend to be very protective of their information, especially for big users where electrical usage is a trade secret."
Still, he recalled that in 2007, the day after Al Gore's climate-change documentary, An Inconvenient Truth, received an Oscar, Tennessee political activists released the purloined electric billings for Gore's Nashville mansion to embarrass him - his usage was nearly 20 times the national average.
"The personal benefits of the 'smart meters' outweigh the risks. The real danger is that people do not know what the risks are," said Quinn, who recommends laws that restrict the resale of data as a way to prevent abuses.
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On the Net:
- Peco Energy Co.
- Future of Privacy Forum - Smart Grid Privacy
- Center for Energy and Environmental Security
Source: RedOrbit Staff & Wire Reports
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