9. Assignment of Proceeding

Michael R. Peevey is the assigned Commissioner and Amy C. Yip-Kikugawa is the assigned ALJ in this proceeding.

1. UCAN requests that D.07-04-043 be modified to provide residential SDG&E customers an alternative to installation of a wireless gas or electric smart meter.

2. D.11-11-007 directed SDG&E to file a proposal for Commission consideration that would provide an alternative to those residential customers who do not wish to have a smart meter with wireless radio transmission.

3. The four possible alternatives for an opt-out option are: (1) smart meter with the radio transmission turned off; (2) digital meter with no radio installed; (3) analog meter; and (4) wired smart meter with wired transmission capability.

4. SDG&E's preferred solution is a non-communicating solid state meter with interval read capability.

5. Analog meters are unable to track interval energy consumption data.

6. A non-communicating opt-out option would disable certain electric smart meter functions.

7. Interval energy consumption data is a key component to attaining California's overall energy objectives.

8. A wired smart meter option is not available for gas smart meters.

9. D.12-02-014 modified PG&E's SmartMeter Program and adopted an analog meter opt-out option for residential PG&E customers who do not wish to have a wireless smart meter.

10. The issues and concerns raised by parties in this proceeding are similar to those addressed in D.12-02-014.

11. Further review of the feasibility of continuing to offer an analog meter opt-out option may be warranted in the future to ensure that this opt-out option does not impede the full implementation of net metering, demand response and smart grid.

12. The issue of whether RF emissions from smart meters have a health impact on individuals is outside the scope of this proceeding.

13. SDG&E's cost estimates are based on 3,000 customers selecting the option and assume that a single opt-out option would be offered.

14. There are currently no mandatory TOU tariffs for residential customers.

1. A residential customer should be allowed to opt out of a wireless smart meter for any reason, or for no reason.

2. The best opt-out option to be adopted must balance the concerns expressed by customers against California's overall energy policy.

3. Allowing residential customers an opportunity to opt out of receiving a wireless smart meter should not impede ongoing state energy objectives.

4. It is important that the selected opt-out option has the capability to allow customers to take advantage of smart grid benefits.

5. The wired smart meter opt-out option is not cost effective or currently technologically feasible compared to the other options.

6. Although a non-communicating meter is the preferred opt-out option, an analog meter opt-out option could be offered at this time as there are no mandatory residential TOU rates.

7. It would not be reasonable to extend the opt-out option to commercial customers.

8. Until there is additional information on the costs to offer multiple opt-out options, only a single opt-out option should be offered.

9. Since SDG&E's deployment of its AMI Project is consistent with the requirements of D.07-04-043, it should be allowed to recover the costs associated with the opt-out option to the extent those costs are found to be appropriate, reasonable and not already being recovered in rates.

10. A residential customer selecting the opt-out option should be assessed an initial charge and a monthly charge.

11. A discount should be provided to customers enrolled in the CARE program.

12. There should be a second phase in this proceeding to consider cost and cost allocation issues associated with offering an opt-out option.

13. It would be appropriate to consider whether to allow the opt-out option to be exercised by local entities and communities in the second phase of this proceeding.

14. The modifications to the SDG&E's AMI Project to include an opt-out option should be implemented as quickly as possible.

15. An interim initial fee and monthly charge for customers electing the opt-out-option should be assessed until final decision on cost and allocation issues is issued.

16. SDG&E should be authorized to establish new two-way electric and gas memorandum accounts to track revenues and costs associated with providing the opt-out option until final decision on cost and allocation issues is issued.

17. The September 21, 2011 ACR directing the utilities to allow residential customers to be placed on a delay list should no longer be applicable for SDG&E.

18. SCWSSM's motion should be denied.

ORDER

IT IS ORDERED that:

1. San Diego Gas & Electric Company's Advanced Metering Infrastructure Project is modified to include an option for residential customers who do not wish to have a wireless smart meter installed at their location to have an analog meter.

2. Within 15 days of the effective date of this order, San Diego Gas & Electric Company (SDG&E) shall file a Tier 1 advice letter in compliance with General Order 96-B. The advice letter shall be served on the service list in Application 11-03-015. The advice letter shall include tariff sheets to modify SDG&E's Advanced Metering Infrastructure Project to include an opt-out option for customers who do not wish to have a wireless smart meter installed at their location and to implement a Smart Meter Opt-Out Tariff. The Advice Letter filing shall:

a. Establish procedures for residential customers to select the option to have an analog meter if they do not wish to have a wireless smart meter.

b. Establish procedures to inform customers currently on the delay list that a smart meter opt-out option is available and that the customer will be scheduled to receive a wireless smart meter unless the customer elects to exercise the opt-out option.

c. Adopt the following interim fees for residential customers selecting the opt-out option:

d. Establish new two-way electric and gas memorandum accounts to track revenues and costs associated with providing the smart meter opt-out option.

3. The September 21, 2011 Assigned Commissioner's Ruling directing the utilities to allow residential customers who had not yet received a wireless smart meter to retain their analog meter and to be placed on a delay list shall no longer be in effect for San Diego Gas & Electric Company.

4. San Diego Gas & Electric Company shall comply with the guidelines stated in Section 7 of this decision.

5. The motion of Southern Californians for Wired Solutions to Smart Meters to have the Commission ask the California Department of Public Health to participate in this proceeding is denied.

6. Application 11-03-015 remains open.

This order is effective today.

Dated April 19, 2012, at San Francisco, California.

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