Environmental Engineering Reference
In-Depth Information
Not all state PUCs are created equally. In some cases, the PUCs are statutorily limited
as to what information they are allowed to consider when approving projects or making
rate-case decisions. Statutory language may not allow them to consider the benefits of
multistate transmission lines on other states or to the electric system. The PUCs evaluate
the legality, business case, and technical aspects of utility investments in smart grid
technologies. In some jurisdictions PUCs have denied smart meter investment, finding the
benefit-to-cost ratio unfavorable. This has sometimes been the case when utilities have
already invested in remote meter reading and demand management with cycling of air
conditioners, and cannot present a strong business case. Other PUCs have raised concerns
about consumer privacy and are questioning how utilities use and manage data collected by
smart meters. Additionally, the institutional capacity of PUCs varies. Commissioners may
be appointed or elected, staff size and support varies, and a PUC's ability to analyze and
evaluate new projects varies significantly from state to state. While the role of PUCs in the
nineteen restructured states is different than in traditionally regulated states, PUCs remain
key actors in smart grid deployments.
Other state-level actors include state agencies focusing on energy and natural resources,
as well as those concerned with economic development, commercial interests, low-income
customers, and the impact of electric rates on these groups. For example, forty-one states
and the District of Columbia have a publicly supported Rate Payer Advocate. This person
works to ensure that rates remain stable and fair and represents consumer interests in rate
hearings (National Association of State Utility Consumer Advocates
2013
). This position
was established by state legislatures in the 1970's as energy prices rapidly increased and
it became clear that the setting of electricity rates often conflicts directly with other state
offices pursuing other goals.
4.3.4 Local Government and Community Actors
Smart grid has the potential to empower individuals and communities to have more
localized control and engagement in their energy choices. Some local governments are
directly involved in electricity generation and distribution; some local-level munis and
co-ops have been leaders in installing smart grid technologies.
Chapter 7
focuses in more
detail on local actors and the links between smart grid and community energy systems.
4.4 Consumers of Electricity
Smart grid promises consumers new ways to control and manage their electricity use, but
skepticism about benefits to consumers is strong in some places. The value of smart grid
to electricity users varies in part because different types of consumers are more or less able
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