Proposed Position Paper:

Presented by the UTILITY SOLUTIONS Partnership, Inc., a nonprofit corporation representing the end-user stakeholder interests of hospitals in California.

Issue:

Meter ownership and customer information.

Position Statement:

There is concern by many informed utility customers that the final CPUC rules governing California's restructured electricity industry will not adequately unbundle essential features of the state's Open Access program. Perhaps no issue is more important than the one pertaining to the metering system. If UDC's are allowed to continue to own meters and to control the meter data, the results of that decision will stifle competition. If California is to be a model for the nation of superior Open Access, we will fail unless customers have the option to choose and own their meters, and have the right to control whatever data is available from those meters. Customers who are not satisfied with the value of services from their vendor should be allowed to shop the market for a competitive meter, or return to their UDC. At this critical time, the CPUC should not close the option for customers to own their meters or to control their electricity usage data. To assume that only the utility monopoly is capable of satisfying customer meter needs appears to be totally inconsistent with the fundamental principles of Open Access.

To succeed, Open Access requires an informed and involved customer. The customer must make choices that were never available under monopoly control. For example, the end-user currently has absolutely no metering decisions to make. They do not own it, read it, program it, replace it or interact with any of the information created by the device. They simply receive a bill and are expected to pay for whatever consumption at whatever rate is assigned to their account. Open Access should completely change that scenario by allowing the customer the right to meter ownership and the privilege to shop for any "value added" feature available. If the cost of meters are excessive and reliability is low, the customer will respond. That is the function of the "marketplace."

However, even in a restructured utility environment, the customer needs to rely on regulated safeguards to assure that meter certification and minimum manufacture standards are established and enforced. Also, to assure the integrity of the Open Access system, meter data must conform to universal standards and be available to all who need timely and accurate information. No other restraints need occur.

Position:

End-use customers shall have the option to decide if they want to own their meters and control the meter data, or select a company to provide that service, or allow their UDC to provide all metering functions.

Pros:

1) The customer's right to select, own and control meters and meter information is fundamental to Open Access.

2) Improvements in meter technology will advance at a greater pace and to higher levels if the meter industry must respond to millions of customers rather than a few UDC's.

Cons:

1) In general, customers are not knowledgeable in the sophisticated, technological aspects of metering equipment and, therefore, may make poor decisions.

2) UDC's are in the best position to provide large volume of metering equipment and can bargain for superior price and value.

Note: This position is in support of Section 11.4 of the final DAWG report due August 30, 1996.