Independent auditor named to check SmartMeters

Summary

The California Public Utilities Commission has finally named an independent auditor to evaluate the SmartMeters installed by Pacific Gas and Electric Co.

Story Created: Mar 30, 2010 at 5:45 PM PDT

Story Updated: Mar 31, 2010 at 1:49 PM PDT

Independent auditor named to check SmartMeters
BAKERSFIELD, Calif. -- The California Public Utilities Commission has finally named an independent auditor to evaluate the SmartMeters installed by Pacific Gas and Electric Co.

A company called The Structure Group will do the review, which is supposed to take about four months.

It will check the meters and look into complaints from customers about very high bills.

Eyewitness News had put in daily calls CPUC, after they missed their own deadline to have an evaluator selected by March 12. They announced the selection on March 30.

"I share the concerns expressed by consumers and members of the Legislature that this independent evaluation get underway," reads a statement from CPUC President Michael R. Peevey. "So, I am pleased to announce our progress today and our emergence from the red tape of state contracting processes."

Starting last summer, PG&E customers began complaining about power bills that were much higher than previous years. Many customers blamed the new SmartMeters.

In October, State Senator Dean Florez (D-Shafter) hosted a packed-house public meeting where people demanded answers about the SmartMeters. On November 20 the CPUC voted to hire an independent consultant, and they put out bids for that work on Dec. 7.

According to the announcement Tuesday from the CPUC, the evaluation by Structure will cover three basic areas.

"Whether PG&E's Smart Meter system is measuring and billing electric usage accurately, both now and since meter deployment began. (And) Independent analysis of the high bill customer complaints."

That will include looking at "industry accepted" practices for estimating customer use, and take into account changes in rates being charged by PG&E, according to the announcement.

The review will also analyze how PG&E has operated and rolled out the SmartMeter program, now and in the past -- and compare that against industry best practices.

In their statement on Tuesday, P-G&E said they "wholeheartedly support the CPUC's independent third-party evaluation." The company says SmartMeters are designed to give customers more control over energy use and costs, by giving them hourly information about how they use power.

"As with any initiative rollout of this magnitude, one would expect to run into challenges, whether physical, technological, customer acceptance or human error," reads the statement from PG&E Senior Director of Customer Care Andrew Tang. "As we address those challenges, we will identify any issues and make them right for our customers."

The CPUC reported the evaluation will start with a focus on customer complaints from the San Joaquin Valley, but also include the entire SmartMeter system, and other areas served by PG&E.

They report the devices have been installed by several companies, including PG&E. The CPUC has authorized Southern California Edison to put in about 5.3 million Smart Meters. San Diego Gas and Electric has installed 1.4 million electric Smart Meters and 900,000 natural gas meters, according to the CPUC.

And, they say PG&E has installed about 5 million electric meters and 4.2 million natural gas meters.

"As these Smart Meters have been rolled out, the CPUC has received just over 600 complaints, almost all from PG&E's service area," states the announcement.

Sen. Florez had complained about the SmartMeters, and about delays in starting the independent review. In his statement Tuesday, Florez warned he'll still hold hearings on Smart Grid, and said he's taking a wait-and-see approach to the announcement of an evaluator.

"I've said from day one, simply interviewing customers will not be enough," Florez said. "Structure officials will need to conduct a forensic analysis of individual homes to show what really happened at these locations that resulted in bills doubling and tripling."
The CPUC said it simply took a long time to name this evaluator because of government contracting requirements. They had to review all materials presented by all 15 companies that bid for the work, narrow down a list of five finalists, and at every step, document and justify the evaluation.

The agency said if consumers have billing concerns, or high bill they questions, they can call the CPUC's Consumer Affairs Branch at 1-800-649-7570.

The CPUC said the review is expected to cost about $1.4 million, and they have ordered PG&E to reimburse them for that expense. The investigation should be done in four months.

"Structure will provide CPUC staff with weekly updates and interim preliminary reports that summarize the results of their evaluation at that time," reads the announcement.

Now that the evaluator has been picked, Eyewitness News asked when the work will actually start. CPUC spokeswoman Susan Carothers replied in an email, "now that the contract has been signed, the process begins today."