Press Release

PUC Establishes Smart Meter Technology Procurement Standards for Large Electric Utilities

Published on 6/18/2009

Filed under: Electric

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today established smart meter technology procurement standards that the state’s large electric distribution companies (EDCs) must meet.

The Commission voted 5-0 to approve a motion by Commission Vice Chairman Tyrone J. Christy that establishes the procedures for submittal, review and approval of all aspects including costs of each EDC’s smart meter procurement and installation plan.  Commissioner Robert J. Powelson issued a statement.

The Commission established minimum smart meter capabilities, guidance on deployment of smart meter technology, requirements for cost data and a timeline for implementation of the EDC plans. According to the motion, a stakeholder meeting will be held by July 17, 2009, to facilitate the discussion on the cost of smart meter technology verses the benefits.

Act 129 of 2008 required EDCs with more than 100,000 customers to file by Aug. 14, 2009, a smart meter technology procurement and installation plan for Commission approval.  EDCs are to furnish smart meter technology upon request from a customer that agrees to pay the cost of the smart meter at the time of the request; in new building construction; and in accordance with a depreciation schedule not to exceed 15 years. Each smart meter plan is to include:

• A summary of the EDC’s current deployment of smart meter technology, if any;
• A plan for future deployment, complete with dates for key milestone and measurable goals;
• A proposal for access to data for third parties including electric generation suppliers and providers of conservation and load management services; and
• A plan for cost recovery either through base rates or a reconcilable automatic adjustment clause.

Act 129 defined smart meter technology as that capable of bidirectional communication that records electricity usage on at least an hourly basis, including related electric distribution system upgrades to enable the technology. The Act also directed that smart meter technology must provide customers with direct access to and use of price and consumption information, such as hourly consumption; the ability to support time-of-use rates and real-time price programs; and automatic control of electric consumption by the customer.

The Commission said it views the requirements in the law as minimum requirements and directed that the smart meter technology must also support other capabilities, such as remote disconnection and reconnection; ability to upgrade as technology advances; and ability to communicate outages and restorations.

On March 30, 2009, the PUC issued a Secretarial Letter seeking comments to help guide the implementation of Act 129’s smart meter provisions.  More than 15 parties provided comments and reply comments on the smart meter provisions of the Act, including specific smart meter deployment and capabilities. 

Act 129 expanded the PUC’s oversight responsibilities and imposed new requirements with the overall goal of reducing energy consumption and demand. It added several new sections to and amended several existing sections of the Public Utility Code.  The Commission is implementing the Act in phases that address EDC responsibilities to implement energy efficiency and conservation programs; smart meter technology; time-of-use rates; real-time pricing plans; default service procurement; market misconduct; alternative energy sources; and cost recovery.

 The Pennsylvania Public Utility Commission balances the needs of consumers and utilities to ensure safe and reliable utility service at reasonable rates; protect the public interest; educate consumers to make independent and informed utility choices; further economic development; and foster new technologies and competitive markets in an environmentally sound manner.

For recent news releases, audio of select Commission proceedings or more information about the PUC, visit our website at www.puc.state.pa.us.

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Docket No. M-2009-2092655

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