2. Background
On March 24, 2011, Pacific Gas and Electric Company (PG&E) filed Application (A.) 11-03-014 seeking Commission approval of modifications to its SmartMeter Program, and an increase in revenue requirements to recover the costs of implementing the modifications. PG&E's application was filed in response to a directive by Commissioner Peevey to submit a proposal that would allow some form of opt-out for PG&E customers who did not wish to have a SmartMeter with radio frequency (RF) transmission. This is referred to in this proceeding as "opting out."
PG&E proposes that the SmartMeter Program be modified to provide residential customers the choice to request that PG&E "turn-off"/disable the radio inside their gas and/or electric SmartMeters, thus eliminating the RF communications from the SmartMeters. This has been referred to as the "radio off" option. It further proposes that it be allowed to recover the associated costs from customers electing to opt out through an up-front fee, monthly charges, and an "exit" charge when a customer leaves the premises. The revenue requirements to recover these costs are estimated to be $113.4 million for the two-year period of 2012-2013.
Timely protests were filed by the Ecological Options Network (EON), County of Lake (Lake), County of Mendocino (Mendocino), Aglet Consumer Alliance (Aglet), EMF Safety Network (Network), The Utility Reform Network (TURN), jointly by the Town of Fairfax, the Alliance for Human and Environmental Health and the County of Marin (jointly, Fairfax), Wilner and Associates (Wilner), and Alameda County Residents Concerned About Smart Meters (Alameda). The Division of Ratepayer Advocates (DRA) filed a timely response to PG&E's application.
A prehearing conference (PHC) was held on May 6, 2011. Shortly thereafter, an Assigned Commissioner Ruling and Scoping Memo (Scoping Memo) was issued on May 25, 2011. As identified in the Scoping Memo, the issues to be considered are:1
1. Whether PG&E's proposed radio-off option is reasonable.
2. Whether the proposed costs for PG&E's opt-out proposal are reasonable.
3. Whether PG&E's proposed cost recovery is reasonable.
A second PHC was held on July 27, 2011. Based on discussion at this second PHC, a combined workshop was scheduled to discuss the possible opt-out options for PG&E, Southern California Edison Company (SCE), San Diego Gas & Electric Company (SDG&E) and Southern California Gas Company (SoCalGas).
The combined workshop was held on September 14, 2011. At the workshop, parties discussed the following possible options, in addition to the radio off option, that might be offered to customers wishing to opt out of having a wireless SmartMeter installed:
1. Install a digital meter with no communication capability (referred to as "radio out" option).
2. Analog meters - retention where a wireless SmartMeter has not been installed or installation of analog meters to replace a wireless SmartMeter.
3. Install a digital meter with wired (e.g., copper wire, fiber optic) transmission capability.
This discussion included the estimated costs and the technological feasibility of offering each of the different options.
In response to comments made at the workshop, the assigned Administrative Law Judge (ALJ) issued rulings directing PG&E to provide additional information concerning costs and RF emissions.2 Additionally, the assigned Commissioner issued a ruling on September 21, 2011 specifying the minimum requirements that PG&E, SCE and SDG&E must follow in response to customer requests to delay the installation of a wireless SmartMeter.3
1 Assigned Commissioner Ruling and Scoping Memo, issued May 25, 2011 at 3-4.
2 See Administrative Law Judge's Ruling Directing Pacific Gas and Electric Company to File Additional Cost Information, issued October 12, 2011; Administrative Law Judge's Ruling Seeking Clarification, issued October 18, 2011. This second ruling also applied to SCE, SDG&E and SoCalGas.
3 See, Assigned Commissioner's Ruling Concerning Customer Requests to Delay Installation of a Smart Meter, issued September 21, 2011.
