Including the Customer
Policy makers and utilities have been aware of the
opportunities that the smart grid can create for customers, and
have been discussing these ideas for some time. However,
until recently, customers were not a part of this conversation.
As a result, there has been considerable backlash over some
early meter installations.
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While many in the industry are
ready to move past these early problems, we believe they
offer a critical lesson. Customers have to be included in the
modernization of the system, and the change in technology
creates an opportunity to begin engaging customers.
However, as discussed in Chapter 15 the idea of getting
consumers to become active participants in the market is still
novel to many, and is a completely new idea to the average
consumer who has been successfully trained to be a passive
consumer.
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Pacific Gas and Electric (PG&E), a utility in northern California, and
Oncor, a Texas utility, both ran into opposition when customers began
reporting bills that seemed considerably higher than usual. While both
cases were later found to be caused by a confluence of events, the
industry and its regulators have begun to learn a valuable lesson:
customer engagement is an important and necessary part of making the
grid smarter. See http://www.bakersfield.com/news/business/economy/
x1305354119/Bakersfields-SmartMeter-trouble-worries-industry.
A recent example helps illustrate the point. Commonwealth
Edison Company has recently completed a pilot project in
Northern Illinois testing in-home devices that allow
customers to monitor their energy usage. In the early days of
the pilot, only a handful of customers responded to prices, and
only a small handful of customers even bothered to enable
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