Safeguarding the Rights of Vulnerable Populations During Modernization of Electricity Distribution

In an effort to save energy, stem rising costs, and increase reliability of the electricity distribution system, many public utilities are or are planning to upgrade to “smart grid” technology. The smart grid, which is supported by a 2007 federal law and a $3.4 billion federal investment, enables utilities to better monitor electricity demand. By permitting consumers to more closely monitor their real-time usage, smart meters encourage them to reduce electricity usage during peak demand through dynamic pricing, in which electricity rates vary based on demand. Yet the cost of smart grid technology and dynamic pricing methods may impose a disproportionate burden on low-income, disabled, and elderly people, who have already reduced their usage to a minimum and may be less able to shift their electricity usage to off-peak times. Unless adequate protections are built into the planning and implementation of smart grid technology upgrades, these vulnerable populations may face termination of service, hunger, health risks, or even death.

At this webinar, conducted on December 1, 2010, Julie Nepveu, Senior Attorney with AARP Foundation Litigation, offered an introduction to smart grid technology and its impact on low-income. elderly, and disabled people. Dan Lesser, Senior Attorney at the Shriver Center also offered a brief update on pending climate change legislation at the federal level.

Webinar Recording (Windows Media Player format; 55MB)

Julie Nepveu's slides

Resources on Smart Grid Technology

Julie Nepveu and Nicole Diaz, What Is the Smart Grid and Why Should We Care?, 44 Clearinghouse Review 302 (Sept.-Oct. 2010).

AARP et al., The Need for Essential Consumer Protections: Smart Metering Proposals and the Move to Time-Based Pricing (2010).

AARP Public Policy Institute, Can Advanced Metering Help Reduce Electricity Costs for Residential Consumers? (2008)

Center for Neighborhood Technology: search “smart grid”

National Consumer Law Center: Energy, Utilities & Communications: Consumer Protection

National Consumer Law Center: Climate Change Justice

National Energy Assistance Directors’ Association & AARP Public Policy Institute, Affordable Home Energy and Health: Making the Connections(2010)

Ohio Partners for Affordable Energy

The Utility Reform Network (TURN in California)

The Impact of Dynamic Pricing on Low-Income Consumers: Evaluation of the IEE Low Income Whitepaper

Decision of the California Public Utilities Commission Implementing Methods to Decrease the Number of Gas and Electric Utility Service Disconnections (Feb. 4, 2010)

Government Resources

Energy Independence and Security Act of 2007 §§ 1301–1309, 42 U.S.C. § 17381, Pub. L. No. 110-140, 121 Stat. 1492 (2007) (statute codified in scattered sections of the U.S. Code)

National Energy Technology Laboratory’s Reference Shelf on Smart Grid Implementation Strategy

U.S. Department of Energy, The Smart Grid: An Introduction (2008)

U.S. Department of Energy, Data Access and Privacy Issues Related to Smart Grid Technologies (2010)

Regulatory Orders

Order of the Massachusetts Department of Public Utilities on NSTAR Electric Company's Petition for Approval of a Smart Grid Pilot Program (Mar. 15, 2010)

Order of the Massachusetts Department of Public Utilities on Western Massachusetts Electric Company's Petition for Approval of a Smart Grid Pilot Program (July 21, 2009)

Order of the Nevada Public Utilities Commission on Investigation Regarding Energy Use by Low Income Consumers (May 17, 2010)

Order of the Maryland Public Service Commission on the Application of Baltimore Gas and Electric Company for Authorization to Deploy a Smart Grid Initiative and to Establish a Surcharge for the Recovery of Cost (June 21, 2010)

Resources on Climate Change Update

How Low-Income Consumers Fare in the House Climate Bill

How Low-Income Consumers Would Fare in the Kerry-Lieberman Climate-Change Bill