smart meter backlash for the aclara client conference by melanie wemple

© Aclara Technologies LLC, 2012

Smart Meter Backlash

Melanie WempleAssociate, E Source

© Aclara Technologies LLC, 2012

By The Numbers

50 Million $337 – 476 Billion $3.4 Billion 8.4 % 2.8-6.0

Sources: EnergyBiz magazine, February 2012 EPRI, Estimating the Costs and Benefits of the Smart Grid, 2011

Image source: epb.net

© Aclara Technologies LLC, 2012

Source: Utility-Scale Smart Meter Deployments, Plans, & Proposals, IEE

© Aclara Technologies LLC, 2012

Challenges for the Smart Grid

TechnologyInnovationStandards

Interoperability

Policy Rate Structures

Program IncentivesRegulatory Responses

Customer Privacy Safety Value

© Aclara Technologies LLC, 2012

Customer Sentiment Cycle

Model adopted from: http://changingminds.org/disciplines/change_management/psychology_change/positive_change.htm

Technical, Policy and Consumer Challenges

Positive

Negative

Senti

men

t

Time

Uninformed Optimism

Informed Pessimism

Informed Optimism

Completion

Excitement & intrigue More realistic planning

Steady Deployment Activity

© Aclara Technologies LLC, 2012

A Little Education Goes a Long Way

Little Basic Complete

46%

72%

61%

Percentage of People with Positive “Smart Meter” Favorability Rating

Level of Consumer UnderstandingData source: 2012 State of the Consumer Report, Smart Grid Consumer Collaborative

© Aclara Technologies LLC, 2012

What Leads to Customer Backlash?

Who Pays and How Much?

Higher Bills

Technologies That Fail

Associative Blame

Privacy and Security

Health and Safety

Perceived Loss of Control

Commission/ Legislative

Intervention

Lack of Customer

Benefit/Value

© Aclara Technologies LLC, 2012

What Leads to Customer Backlash?

Who Pays and How Much?

Higher Bills

Technologies That Fail

Associative Blame

Privacy and Security

Health and Safety

Lack of Customer

Benefit/Value

Perceived Loss of Control

Commission/ Legislative

Intervention

© Aclara Technologies LLC, 2012

What Leads to Customer Backlash?

Who Pays and How Much?

Higher Bills

Technologies That Fail

Associative Blame

Privacy and Security

Health and Safety

Lack of Customer

Benefit/Value

Perceived Loss of Control

Commission/ Legislative

Intervention

© Aclara Technologies LLC, 2012

What Leads to Customer Backlash?

Who Pays and How Much?

Higher Bills

Technologies That Fail

Associative Blame

Privacy and Security

Health and Safety

Lack of Customer

Benefit/Value

Perceived Loss of Control

Commission/ Legislative

Intervention

© Aclara Technologies LLC, 2012

What Leads to Customer Backlash?

Who Pays and How Much?

Higher Bills

Technologies That Fail

Associative Blame

Privacy and Security

Health and Safety

Lack of Customer

Benefit/Value

Perceived Loss of Control

Commission/ Legislative

Intervention

© Aclara Technologies LLC, 2012

Perceived Loss of Control

Source: digitalart / FreeDigitalPhotos.net

© Aclara Technologies LLC, 2012

What Leads to Customer Backlash?

Who Pays and How Much?

Higher Bills

Technologies That Fail

Associative Blame

Privacy and Security

Health and Safety

Lack of Customer

Benefit/Value

Perceived Loss of Control

Commission/ Legislative

Intervention

© Aclara Technologies LLC, 2012

What Leads to Customer Backlash?

Who Pays and How Much?

Higher Bills

Technologies That Fail

Associative Blame

Privacy and Security

Health and Safety

Lack of Customer

Benefit/Value

Perceived Loss of Control

Commission/ Legislative

Intervention

© Aclara Technologies LLC, 2012

What Leads to Customer Backlash?

Who Pays and How Much?

Higher Bills

Technologies That Fail

Associative Blame

Privacy and Security

Health and Safety

Lack of Customer

Benefit/Value

Perceived Loss of Control

Commission/ Legislative

Intervention

© Aclara Technologies LLC, 2012

Privacy

What customers want to know:• What happens to my usage data

collected from the smart meter?• Who owns my usage data?• Who has access to my usage data?• What are your privacy policies and

how are you protecting my personal energy information?

What the customer hears:• “Your smart meter shows… if you

were home on the night of the murder.”

• “This is a search without a warrant everyday.”

• “This is your personal private life going… to your power company, to your government, to the police, to the insurance company…to anyone who cuts a deal with you power company to look at your life under a microscope.”

Source: AMI Misinformation, Cleveland Utilities AMI Implementation

© Aclara Technologies LLC, 2012

Security

© Aclara Technologies LLC, 2012

What Leads to Customer Backlash?

Who Pays and How Much?

Higher Bills

Technologies That Fail

Associative Blame

Privacy and Security

Health and Safety

Lack of Customer

Benefit/Value

Perceived Loss of Control

Commission/ Legislative

Intervention

© Aclara Technologies LLC, 2012

Health & Safety

Courtesy: sfcitizen.com/blog

© Aclara Technologies LLC, 2012

Health & Safety

Source: Is smart meter RF exposure safe? Yes., Central Maine Power

© Aclara Technologies LLC, 2012

What Leads to Customer Backlash?

Who Pays and How Much?

Higher Bills

Technologies That Fail

Associative Blame

Privacy and Security

Health and Safety

Lack of Customer

Benefit/Value

Perceived Loss of Control

Commission/ Legislative

Intervention

© Aclara Technologies LLC, 2012

Customer Benefit/Value

SO WHAT IS THE SMART GRID ANYWAY AND WHY SHOULD I

CARE?

© Aclara Technologies LLC, 2012

How Utilities Deal with Backlash

Show Value

Dedicated Community Engagement

One-on-one Discussions

Transparency

AMI Opt-Out

Proactive & Multi-channel

Communication

© Aclara Technologies LLC, 2012

How Utilities Deal with Backlash

Show Value

Dedicated Community Engagement

One-on-one Discussions

Transparency

AMI Opt-Out

Proactive & Multi-channel

Communication

© Aclara Technologies LLC, 2012

Dealing with Backlash: Opt-Out

© Aclara Technologies LLC, 2012

MELANIE WEMPLERESEARCH ASSOCIATEE SOURCEMELANIE_WEMPLE@ESOURCE.COM303.345.9149