3. PG&E's Application

PG&E's electric SmartMeters include two low-power radios embedded in the meter that are capable of both transmitting and receiving a signal through the radio.  One radio is used to communicate with PG&E over its SmartMeter electric mesh network.  This radio communicates to local collectors called Access Points which communicate that information back to PG&E's system. The second radio is currently off and would be used only if the customer affirmatively decides to implement an integrated Home Area Network (HAN).  PG&E's gas SmartMeters have a single radio, which is used to transmit a low power radio frequency signal to a Distribution Collection Unit (DCU). The DCU collects data from local meters and then communicates back to PG&E's systems.

PG&E proposes to offer the following opt-out options to customers:4

1. Radio off - Residential electric and gas customers would be eligible to request that the wireless radios embedded in the SmartMeter be "turned off" (deactivated).

2. Relocation - Electric customers may request that PG&E relocate the electric SmartMeter to a different location on the customer's property.5

PG&E estimates the costs to implement the radio off option to be $113.4 million for the years 2012 and 2013, assuming 148,500 customers will elect to opt out.6 It proposes that these costs be recovered from those customers choosing to opt-out of a wireless SmartMeter through the assessment of an up-front fee covering all or a portion of PG&E's immediate costs of implementing the opt-out option, monthly fees covering ongoing monthly expenses and an "exit fee" upon termination of participation in the opt-out option.

4 PG&E Testimony at 1-5 - 1-6.

5 The relocation option is an existing option and shall continue to be offered pursuant to Electric Rule 16. Under Rule 16, relocation costs could be between $2,500 and $11,000 depending on the specific characteristics of the relocation. Relocation costs would be paid by the customer requesting this option.

6 PG&E Testimony at 3-2.

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