Regulators allow NV Energy customers to opt out of smart meters — for a price

By Cy Ryan

Wednesday, Feb. 29, 2012 | 4:12 p.m.

CARSON CITY — By a 2-1 vote, the state Public Utilities Commission has decided to allow unhappy NV Energy customers opt out of having smart meters installed on their homes.

A number of the more than 35 speakers, all opposed to the smart meters, said during the four-hour hearing today that the issue would end up in the courts.

Critics of the smart meters claim radiation from the devices can cause cancer, miscarriages and birth defects. One opponent said they would cause more damage than the tobacco industry.

The majority decision, supported by Chairwoman Alaina Burtenshaw and Commissioner Rebecca Wagner, gives NV Energy 60 days to file the proposed additional rates a consumer will pay to have the alternate digital meter installed and how much more their monthly bill will be.

Commissioner David Noble dissented, favoring instead a plan that would allow no one to opt out of having a smart meter installed on their home.

NV Energy plans to install 1.3 million smart meters. In Clark County, 750,000 already installed and 10,000 in Northern Nevada. The meters allow electrical use data to be transmitted to NV Energy without a meter reader going around every month to check on use.

Gary Smith, director of customer energy solutions for NV Energy, said about 6,000 customers have requested the utility delay installation because they're opposed to smart meters.

Smith said the smart meter is modernizing the electrical grid and will give consumers "a better awareness of their energy use." The meters can be read every 15 minutes.

The commission's order says the alternative digital meters must be read by drive-by electronics.

This didn't satisfy opponents, who said they did not want to be guinea pigs for these new smart meters. They suggested it would be a violation of their constitutional rights to force them to take the smart meter. And if they were permitted to refuse the smart meter, they said they should not be charged extra for the digital meter.

The PUC in its order estimated that 4,500 customers in Clark County and 3,000 in Northern Nevada would decline to take the smart meters. It's unclear whether this opposition will continue after the additional rates are posted for the alternate digital meter.

Angel DeFazio of Las Vegas said smart meters emit radiation that is dangerous. She urged the PUC to be "benevolent" in permitting consumers a choice.

One speaker said the PUC was "out of its element" in making this decision and that it should have been put to a public vote but now it will have to be fought out in the courts.

The PUC in its decision said the smart meter meets the radio frequency standard of the Federal Communications Commission.

Many of the speakers complained that the energy use information could be stolen from the computer system of the two utilities. The PUC said NV Energy has taken reasonable measures to ensure customer privacy and security.

But the PUC said it will continue to monitor the issue and whether additional rules are needed to keep the customer information confidential.

NV Energy estimates the cost of the smart meter system will be $301 million of which $138 million came from the federal government. There is some concern that if an extraordinary number of customers withdraw, the government may want its money back.