9. Assignment of Proceeding

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

1. Joint Applicants request that D.08-09-039 be modified and that SCE be ordered to file an application for approval of a smart meter opt-out plan.

2. D.11-11-006 denied Joint Applicants' proposed modifications to D.08-09-039, but directed SCE to file a proposal for Commission consideration that would provide an alternative to 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.

4. SCE's preferred solution is a smart meter with the radio transmission turned off.

5. SCE currently has customers who have non-analog, non-smart digital meters installed in their locations.

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

7. The analog meter opt-out option would not allow customers to participate in time variant pricing tariffs, such as the Peak Time Rebate program.

8. If either the radio-off or radio-out options were adopted, SCE employees could still collect interval energy usage data as part of their monthly meter reads.

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

10. 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 SmartMeter.

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

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

13. SCE's cost estimates cover the 2012-2014 time period and are based on 61,000 customers selecting the opt-out option and assume that only one opt-out option will be offered.

14. There are currently no mandatory TOU tariffs for SCE's 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 opt-out option 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. Although a non-communicating smart 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.

6. Customers who participate in the opt-out option should retain the meter currently installed at their location or receive the meter form (i.e., an analog meter or a non-analog, non-smart digital meter) that had been at the customer's location prior to the installation of a wireless smart meter.

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

8. Since SCE's deployment of the Edison SmartConnect Program is consistent with the requirements of D.08-09-039, it should be allowed to recover the costs associated with offering the opt-out option to the extent those costs are found to be appropriate, reasonable and not already being recovered in rates.

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

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

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

12. It would be appropriate to include the substantive and procedural components of D.12-02-014 in this proceeding for purposes of statewide consistency.

13. The modifications to SCE's Edison SmartConnect Program to include an opt-out program should be implemented as quickly as possible.

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

15. SCE should be authorized to establish a new two-way memorandum account to track revenues and costs associated with providing the opt-out option until a final decision on cost and allocation issues is issued.

16. The September 21, 2011 Assigned Commissioner's Ruling directing the utilities to allow residential customers to be placed on a delay list should no longer be applicable for SCE.

17. Evaluation of the security practices and implementation of all utilities implementing wireless mesh networks is outside the scope of this proceeding.

18. SCWSSM's motion should be denied.

ORDER

IT IS ORDERED that:

1. Southern California Edison Company's Edison SmartConnect Program is modified to include an option for residential customers who do not wish to have a wireless smart meter installed at their location. This option shall have the customer retain the meter currently installed at their location or receive the meter form (i.e., an analog meter or a non-analog, non-smart digital meter) that had been at the customer's location prior to the installation of a wireless smart meter.

2. Within 15 days of the effective date of this order, Southern California Edison Company (SCE) 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 11-07-020. The advice letter shall include tariff sheets to modify SCE's Edison SmartConnect Program 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:

1. Establish procedures for residential customers to select the opt-out option if they do not wish to have a wireless smart meter.

2. Establish procedures to inform customers that the Edison SmartConnect Program has been modified to include an opt-out option for residential customers who do not wish to have a wireless smart meter at their location.

a. A customer currently on the delay list shall be informed that the customer will be scheduled to receive a wireless smart meter unless the customer elects to exercise the opt-out option.

b. Customers selecting the opt-out option shall be informed that they will receive the previous form of meter they had prior to the installation of a wireless smart meter. Therefore, an analog meter shall be the opt-out option for customers who previously had an analog meter at the time the wireless smart meter was installed, while the opt-out option for customers who previously had a non-analog, non-smart digital meter will be a non-analog, non-smart digital meter.

3. Adopt the following interim fees and charges for residential customers selecting the opt-out option:

A single interim fee and monthly charge shall apply to all electric meters at the customer's premise, provided the customer participating in the opt-out option is the customer of record.

4. Establish a new two-way memorandum account to track revenues and costs associated with providing the opt-out option until a final decision on costs and cost allocation issues is issued.

3. As part of the Tier 1 Advice Letter filing, Southern California Edison Company shall comply with the guidelines stated in Section 7 of this decision.

4. 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 be placed on a delay list shall no longer be in effect for Southern California Edison Company.

5. Southern Californians for Wired Solutions to Smart Meters' Motion to Request the California Department of Public Health to Review the Electric and Magnetic Fields Produced by Wireless Smart Meters is denied.

6. Application 11-07-020 remains open.

This order is effective today.

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

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