| NARUC 2010 Smart Grid Recap: Think Globally But Listen To Consumers |
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By Don McDonnell ATLANTA – Nov 18, 2010 – At NARUC this week federal and state regulators were thinking micro for a change. The annual conference had all the usual adjoining FERC/NARUC sessions, remarks by big-name federal regulators, and regional transmission planning meetings that brought out the traditional NARUC strategic/big picture perspective. But incoming Southern Company CEO and Chairman Thomas Fanning’s keynote remarks may have summed it up best when he referred to “Southern Style” as its “Circle of Life” putting customers at the center of their strategy.
Coming on the heels of a lengthy but important policy address by FCC Chairman Julius Genachowski on the need to expand broadband infrastructure for consumers, the rest of the conference reinforced and validated Fanning’s main point. And if that didn’t, Southern Company’s stock closing in on a ten year peak valuation this week in the wake of Fanning’s remarks may have. Everyone who covers smart grid or works in the industry has spent a lot of time talking about “educating consumers,” but what struck me about the NARUC theme “Keeping The Focus: Serving the Consumer Interest in Changing Times” and the meeting’s co-location with the annual meeting of NASUCA (National Association of State Utility Advocates) consumer advocates was the time and attention given to the important act of simply listening to consumers.The industry’s need to better listen to end-consumers and understand their varied needs recently inspired formation of the Smart Grid Consumer Collaborative, which will have its first major event on January 31, 2011. This event will share the results of the industry’s first cross-stakeholder (utilities, vendors, regulators, consumer advocates) research collaboration and intentionally active listening efforts. NARUC panels on this theme included “Smart Meters? Smart Rates? What really works for consumers?” where the results of an important consumer advocate study: “The Need For Essential Consumer Protections: Smart Metering Proposals and the Move to Time-Based Pricing” was given a lot of airtime. Notwithstanding a few wildly inappropriate utility conspiracy theories shared by some panelists, overall it was a great chance to tackle tough issues around smart meters and smart rates. Here is a summarized list of key findings from the report:
Tough issues face utilities and regulators as needed investments put inevitable and unavoidable pressure on rates. Consumers enjoy electric power that on average against inflation has fallen in costs compared to other necessities like milk and bread. Nevertheless a consumer refrain I heard many times in talks and in personal conversations was basically: “Hey, I want cheap, reliable power and if the smart grid thingabobs can save me money and they are easy then great… otherwise what have you done for me lately? Candidly, my kids need new shoes and times are tight.” The main impression from the meeting? In some sense, it was as if top down regulatory policy-driven approaches to societal well being, system and rate design were running straight into the buzz saw of bottoms-up individual consumer pressure. But consider this: Southern Company is rolling out smart meters across its service territory and there have been no moments of consumer “barbarians at the gate,” or consumers complaining in mass. An Unlikely Smart Grid Pioneer: Georgia Takes a Lead Role, an article written by Phil Hall in the November 2010 In my second NARUC blog post next week, I’ll cover a great session called “The Climate Syndrome: Without Congressional Action, What Do Regulators Need to Know?” Hint: state and local policies and integrated resource planning returns to center stage to address CO2 and a lack of domestic and international action. 
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Renew Grid, provides some interesting color and detail around this including some efforts we've been proud to sponsor and support with the Smart Grid Society of Georgia.Bonus Navitas Signup
