The growing voice of the consumer

Tuesday, February 9, 2010@ 7:16 AM
Author: donatdawn-->

Bart Thielbar

http://www.renewablesbiz.com/article/10/02/growing-voice-consumer

The consumer has had the softest voice so far in the pursuit of the smart grid and the National Association of State Utility Consumer Advocates (NASUCA) is working to change that — and rightly so. After all, we will be the ones who pay for it, either through taxes to support the American Reinvestment and Recovery Act (ARRA) funding, or through our utility rates. NASUCA’s recent efforts should be viewed as a welcome addition to the ongoing dialogue about smart grid.  

Last summer, NASUCA passed resolutions outlining principles related to the smart grid and advanced electric metering. Generally speaking, these resolutions outlined the need for prudent evaluations of the technology to ensure interoperability and performance, the use of pilot programs to provide foundation for cost/benefit analysis and, of course, a general desire to ensure that the benefits outweigh the costs — to name but a few. Importantly, NASUCA also advocates that advanced metering and smart grid initiatives

should not have the unexpected consequence of eroding existing consumer protections. These positions are reasonable and serve as important safeguards to help ensure that consumers and regulators have a better understanding of all issues related to smart grid and advanced metering deployments.

I recently had the pleasure of visiting with Mary Healey from the Connecticut Office of Consumer Counsel and the current president of NASUCA. Healey, along with the rest of NASUCA, is working diligently to ensure that the consumer’s voice is heard and receives important consideration with regulators and utilities. They are receiving a warm reception from FERC and other interested parties who are seeking to better understand the consumers’ perspective.

NASUCA is not alone in its efforts to raise the voice of the consumer. The utilities we work with everyday have long cautioned that feedback from consumers is a critical part of their decision-making process and that they are working with their respective regulators and state consumer counsels to ensure participation and feedback. Indeed, with nationwide estimates for smart grid build-out totaling in the trillions of dollars, it would be unwise not to include the voice of the consumer.

NASUCA certainly supports the concept of a more efficient energy sector, but simply wants to ensure that consumers have a good understanding of what smart grid and advanced metering infrastructure may really mean, what it costs and how they may be affected. Healey finds it analogous to the “truth in lending” requirements in the financial industry. Simply stated, consumers should be fully informed before being asked to fund it.

NASUCA’s recent undertakings provide cohesion to an otherwise fragmented voice and they should be commended for it. They are clearly becoming the go-to agency at the national level. Although it remains to be seen how strong that voice will become and what key issues of contention may surface, it remains abundantly clear that consumers desire to be heard on these issues. It is a welcome addition to the ongoing conversation.

I enjoy discussing industry issues with you. Please feel free to share your thoughts in the comments section, or reach me directly at bthielbar@energycentral.com

Bart Thielbar is a senior research analyst working on behalf of Sierra Energy Group, a division of Energy Central.

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