3. UCAN's Application

UCAN states that it has received numerous communications from consumers who have expressed aversion to the installation of wireless smart meters for a variety of reasons including health and privacy. It notes that Pacific Gas and Electric Company (PG&E) had been directed by Commission President Peevey to submit a proposal that would allow some form of opt-out for PG&E customers who did not wish to have a wireless smart meter based on similar concerns. PG&E filed an application in response to this directive on March 24, 2011. UCAN maintains that all utility customers should be provided an option to opt-out of the installation of a wireless smart meter.

UCAN states that it had formally requested SDG&E to consider an opt-out option for SDG&E customers. However, it contends that while SDG&E has conducted research to provide an opt-out option, the utility has refused to provide this data to UCAN. Consequently, UCAN has filed the instant application, requesting that the Commission modify D.07-04-043 and direct SDG&E to:

1. Preserve at least 5000 of its electromechanical meters that it is currently removing from its residential customers.

2. Develop a cost-based tariff by which residential customers may decline a smart meter installation or switch out the new smart meter with an old electromechanical meter, if the installation has already occurred. The old meters would be read monthly or bimonthly by SDG&E meter readers.

3. That the tariff also offers an option by which customers would read their own meters and notify SDG&E of the readings. This would reduce customers' costs of monthly meter reads and would be subject to spot checks by SDG&E meter readers.

4. Work with UCAN, DRA and Energy Division to finalize the tariffs that would accommodate those residential customers who do not desire smart meter service while not imposing any costs upon other residential customers.2

SDG&E opposes UCAN's application. It states that the health and privacy concerns raised by UCAN have already been addressed by the Commission or the Federal Communications Commission. SDG&E further contends that allowing customers to not have a wireless smart meter installed would impose additional costs and frustrate the objectives of SDG&E's AMI program. In particular, SDG&E states that UCAN's request to have the wireless smart meter replaced with the old electromechanical meter is not "sustainable from an ongoing operations and maintenance perspective because it is completely dependent on equipment considered by the utility industry as obsolete and technologically incompatible with the system being deployed."3 Finally, SDG&E asserts that the application should be dismissed as it is an impermissible collateral attack on a final decision.

DRA is generally supportive of the application. DRA notes that, pursuant to President Peevey's directive, PG&E had filed Application (A.) 11-03-014 seeking Commission approval of modifications to its SmartMeter program to allow customers wishing to opt-out of a wireless smart meter to turn the radio transmission off. DRA agrees with UCAN that all utilities should offer an alternative to opt-out of a wireless smart meter. However, DRA recommends that in addition to the electromechanical meter opt-out option proposed by UCAN, the Commission should consider the radio-off option proposed in PG&E's application. DRA further proposes that issues relevant to any smart meter opt-out program be addressed in a consistent manner for all the investor-owned electric and gas utilities. Finally, DRA identifies various issues that it believes should also be included in the scope of this proceeding.

2 UCAN Application at 3-4.

3 SDG&E Protest at 10.

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