Upstate New York Smart Meters

I live in the Upstate New York National Grid service territory and recently received a notice that Smart Meters are coming.  Because I am aware of issues associated with this technology, I decided to research what this is all about.  My particular concern is that it could enable involuntary demand response capabilities associated with the New York State’s Climate Leadership & Community Protection Act (Climate Act) net zero transition.

Cutting to the chase: I have decided to let them install the smart meter in my home.  The costs to opt-out of them is greater than the risks that they will be used to potentially control my energy use someday in the future. 

I have followed the Climate Act since it was first proposed, submitted comments on the Climate Act implementation plan, and have written over 350 articles about New York’s net-zero transition.  I have devoted a lot of time to the Climate Act because I believe the ambitions for a zero-emissions economy embodied in the Climate Act outstrip available renewable technology such that the net-zero transition will do more harm than good by increasing costs unacceptably, threatening electric system reliability, and causing significant cumulative environmental impacts.  The opinions expressed in this post do not reflect the position of any of my previous employers or any other organization I have been associated with, these comments are mine alone.

Climate Act Background

The Climate Act established a New York “Net Zero” target (85% reduction and 15% offset of emissions) by 2050.  It includes an interim 2030 reduction target of a 40% reduction by 2030 and a requirement that all electricity generated be “zero-emissions” by 2040. The Climate Action Council is responsible for preparing the Scoping Plan that outlines how to “achieve the State’s bold clean energy and climate agenda.”  In brief, that plan is to electrify everything possible using zero-emissions electricity. The Integration Analysis prepared by the New York State Energy Research and Development Authority (NYSERDA) and its consultants quantifies the impact of the electrification strategies.  That material was used to develop the Draft Scoping Plan.  After a year-long review, the Scoping Plan recommendations were finalized at the end of 2022.  In 2023 the Scoping Plan recommendations are supposed to be implemented through regulation, utility rate cases, and legislation. 

The Scoping Plan is more of a list of potential strategies than an implementation plan because it does not provide a blueprint of the steps needed to implement the strategies proposed to meet the reduction targets.  The building sector currently has the highest Greenhouse Gas (GHG) emissions.  The strategies proposed to reduce greenhouse gas emissions include electrification, energy efficiency, energy conservation, and demand response shifts.  According to the Department of Energy: “Demand response provides an opportunity for consumers to play a significant role in the operation of the electric grid by reducing or shifting their electricity usage during peak periods in response to time-based rates or other forms of financial incentives”.   The Scoping Plan suggests using this as a resource option for balancing supply and demand.  I have no problem with voluntary demand response programs but given the challenge of balancing supply and demand when electric generation is weather-dependent, I worry that these programs could get to the point that the utility can control my energy use without my permission.

What is Happening? 

National Grid’s Upstate New York Rate Case Settlement Agreement (Cases 20-E-0380 and 20-G-381) included rate increases that “reflect incremental IT-related capital investments” for Advanced Metering Infrastructure (AMI).  The discussion in the Order Authorizing Implementation of Advanced Metering Infrastructure With Modifications that was issued on November 20, 2020 describes the rationale for AMI, aka smart meters (modified to label acronyms):

With Advanced Metering Infrastructure (AMI), National Grid can improve its response to power outages, as the Company will have more accurate and granular information regarding the voltage and current status of customers’ services. AMI can empower customers by providing them with information about their energy usage and allowing them to take action to manage their electric and gas costs. The AMI meter and communication system can be used to enhance the safety of the electric and gas system by allowing National Grid to remotely monitor facilities and receive alerts when abnormal conditions are detected. Moreover, AMI is an important and valuable contribution to enabling the Company to assume the role of the Distributed System Platform (DSP), to increasing use of Distributed Energy Resources (DERs) to support system operation, to increasing the use of measures such as Volt-Var Optimization (VVO) to reduce energy use and emissions, and to facilitating customer access to products and services provided by third-parties.

The first major benefit category is Avoided Operation and Maintenance (O&M) Costs, estimated at $188 million. This includes operational savings from remote customer connects and disconnects, better storm response with the integration of Outage Management Systems (OMS) and AMI, reduced meter reading costs, and reduced meter investigation costs.

The second major benefit category is Avoided Program Costs, estimated at $354 million. This includes avoided costs of replacing automated meter reading (AMR) meters, avoiding additional sensors to support the DSP, and metering for customers eligible for Value of Distributed Energy Resources (VDER) according to the Company’s tariff.

The third major benefit category is Customer Benefits, estimated at $251 million for the time varying pricing (TVP) rate opt-out scenario and $165 million for the TVP rate opt-in scenario. This includes reduced energy from Volt-Var Optimization (VVO); customer response to granular energy usage information communicated via the Company’s website and through high-usage alerts, and to the TVP rate; and reduced demand costs for customers who charge electric vehicles during off-peak periods.

Proponents of the electric grid transition away from centralized power plants burning fossil fuels argue that it is more efficient to use on-site energy production using wind and solar.  The idea to use Distributed Energy Resources (DER) in the electric system has been around for a while but so far, the generators primarily use fossil fuels.  In the future, the theory says DER and the Distributed System Platform (DSP) described will accommodate intermittent wind and solar resources in the so-called “smart grid”.  Volt/VAR optimization (VVO) is another aspect of the smart grid.  It is a process of optimally managing voltage levels and reactive power to achieve more efficient gird operation by reducing system losses, peak demand, or energy consumption or a combination of the three.

National Grid Voluntary Peak Demand Program

Upstate New York National Grid has voluntary programs for energy consumption incentives on high energy demand days in place today.  These programs control the thermostats at participant homes rather than controlling the meter for the house.  The Connected Solutions program description notes that:

Energy use peaks during certain seasons, especially on the hottest and coldest days of the year.  When you cool your home or small business using electricity during summer or keep it warm using natural gas in winter, Connected Solutions will reward you for using less energy during those peak times. 

When you use less energy on peak demand days you help manage the cost of energy, protect the environment and infrastructure, and you help our communities stay safe and comfortable.

In Upstate New York there are programs for the summer and winter.  The summer description states:

On hot summer days, when the grid is stressed, it is important to conserve energy. Reducing energy at these times reduces energy costs and decreases pollution.

National Grid has made it easy for you to conserve energy at these peak times. After you enroll your qualified thermostat, National Grid will automatically send a signal to your thermostat to precool your home or small business before the peak event and increase your thermostat setting during the peak event.

Here is some information on when peak events may occur:

• May-September
• Non-holidays
• There are typically 10 – 15 peak events every summer.

The winter description states:

On extremely cold days, when the demand for natural gas is at its highest in Upstate New York, it is important to conserve energy. Reducing your natural gas use at these times reduces energy costs. By shifting your energy use for a couple of hours during peak demand days you can help lower the stress on our system, save money and ensure our communities are safe and comfortable.

Connected Solutions Gas has made it easy for you to conserve energy during these times and will reward you for your participation. After you enroll a qualified, wi-fi enabled thermostat connected to your boiler or furnace, we will automatically send it a signal to preheat your home or small business before the peak event times and then temporarily decrease the temperature by a couple of degrees for the duration of the event. After the event has passed, your thermostat will automatically go back to your preferred temperature.

Here is some information on when peak events may occur:

• November-March on days when temperatures drop well below average
• 6 a.m. to 10 a.m. or 4 p.m. to 8 p.m.
• There are typically 2 – 5 peak events every winter.

It is possible to opt out of a peak event anytime by changing your thermostat setting for both programs.  However, if you opt out of peak events National Grid may unenroll participants from the program for the following year.

National Grid Smart Meters

Against this backdrop I was interested when National Grid recently sent a bill insert, Smart meters are coming soon, that describes what is coming.  The information provided states:

• MORE CUSTOMER CONTROL: continuous, secure access to your energy data—for more insight into your energy efficiency and usage decisions.  
• FASTER, NEAR REAL-TIME ENERGY READINGS: available within minutes, through your My Account portal.
• FASTER RESPONSE: enhanced outage monitoring and storm response.
• AND MORE FEATURES — still to come

It’s all part of our ongoing commitment to empower customers—while working to build a more reliable, robust and climate-friendly energy grid for the future. Learn about your new smart meter at ngrid.com/smartmeter.

This webpage describes the rollout:

Like any aging appliance, your existing utility meter will need to be replaced soon. We are in the process of replacing current meters with smart meters in many of the regions we serve.

These smart meters incorporate proven, sophisticated technology which will improve service and reliability, while also giving you more control over your energy usage, faster, near real-time energy readings and an overall faster response. Smart meters are part of our ongoing commitment to empower our customers while working to build a more reliable, robust, and climate-friendly energy grid for the future.

One of the things that really isn’t explained clearly is that the smart meters will be installed unless the customer opts out.  There is a link to opt-out of a smart meter buried in the National Grid web page.  However, there are fees if a customer chooses to opt-out.  The enrollment fee is $44.63 for an electric customer, $61.19 for a gas customer or $89.03 for both.  The monthly fee for manual meter reads is $11.64 for electric or gas customers or $17.71 for both.

Concerns

If the only purpose of the smart meters was to automatically read my meters I would not be concerned.  However, I know that the challenge to reduce building sector emissions is so great that I worry that I will be involuntarily affected by the smart meters.

The description of smart meters claims that the smart meters will determine whether an outage is caused by the system or something within a home.  If it is a system outage, then National Grid will be informed quickly. 

The meters will provide hourly usage data.  I think it is inevitable that utility bills will be based on the time of the day rates with higher prices during peak demand times.  I can choose to save money by running my appliances when rates are lower.  As long as I get to choose when I can run my appliances, I can begrudgingly live with that.

It is not clear to me how the planned smart meters installations affect the Distributed System Platform and the Volt/VAR optimization benefits described above.  I do not know if my smart meter will be used to involuntarily control my energy consumption.  All the information provided so far indicates that there is no plan to do that yet.

However, I wondered whether the proposed smart meters had the capability to do that in the future.  I thought I would try to find out if that was the case.  I called National Grid and asked if the meters being installed could be used for involuntary demand response now or could be upgraded to do that later.  Once I got through to a human I was told “I don’t think so”.  I asked if I could talk to the folks doing the installations.  It turns out that National Grid has partnered with Utility Partners of America to do the installations. 

I ended up submitting the question to Utility Partners of America.  I asked “Can National Grid control my energy usage with this new smart meter?”  I received the following response: 

No, the smart meter will not give National Grid access to control your energy usage. We collect the same usage data we have always collected through existing meters just in more frequent intervals. However, National Grid does have Demand Response programs available for customers and while participation in those programs is voluntary, signed consent is required by the customer.

Conclusion

In brief, National Grid is installing smart meters to eliminate manual meter reading and automate outage reporting.  It will also provide more detailed energy use information that will enable them to start time varying pricing which will mean higher costs if you want to run appliances at peak energy use times.  There are other alleged technical advantages associated with the Climate Act transition plan.

My major concern was that they could involuntarily control my energy use.  I accept that this is not part of the current plan.  Everyone denies this could be possible with these meters.  However, I remain unconvinced that someday down the road, that such a program could be implemented. 

I have decided to let them install the smart meter in my home.  The costs to opt-out of them is greater than the risks that they will be used to potentially control my energy use someday in the future.