Melanie Wemple, research associate at E Source, presented at the Aclara Client Conference in April, 2012 about Smart Meter Backlash. Her presentation includes detailed information on what leads to customer backlash from AMI deployment (a/k/a smart meters) by electric utilities and how utilities deal with this backlash. For more information: http://www.esource.com/public/products/frs_tas.asp More about Melanie: http://www.esource.com/staff_bio/melanie_wemple

1. Smart Meter Backlash
Melanie Wemple
Associate, E Source
© Aclara Technologies LLC, 2012

2. By The Numbers
 50 Million
 $337 – 476 Billion
 $3.4 Billion
 8.4 %
 2.8-6.0
Sources:
EnergyBiz magazine, February 2012 Image source: epb.net
EPRI, Estimating the Costs and Benefits of the Smart Grid, 2011
© Aclara Technologies LLC, 2012

3. Source: Utility-Scale Smart Meter Deployments, Plans, & Proposals, IEE
© Aclara Technologies LLC, 2012

4. Challenges for the Smart Grid
Technology Policy
Innovation Rate Structures
Standards Program Incentives
Interoperability Regulatory Responses
Customer
Privacy
Safety
Value
© Aclara Technologies LLC, 2012

5. Customer Sentiment Cycle
Positive
Completion
Steady Deployment Activity
Uninformed Optimism
Informed Optimism
Excitement & intrigue
More realistic
Sentiment
planning
Time
Informed Pessimism
Negative
Technical, Policy and Consumer
Challenges
Model adopted from: http://changingminds.org/disciplines/change_management/psychology_change/positive_change.htm
© Aclara Technologies LLC, 2012

6. A Little Education Goes a Long Way
Percentage of People with
Positive “Smart Meter” Favorability Rating
72%
61%
46%
Little Basic Complete
Level of Consumer Understanding
Data source: 2012 State of the Consumer
Report, Smart Grid Consumer Collaborative
© Aclara Technologies LLC, 2012

7. What Leads to Customer Backlash?
Perceived Loss Who Pays and Privacy and
of Control How Much? Security
Associative Health and
Technologies
Blame That Fail Safety
Commission/ Lack of
Legislative Higher Bills Customer
Intervention Benefit/Value
© Aclara Technologies LLC, 2012

8. What Leads to Customer Backlash?
Perceived Loss Who Pays and Privacy and
of Control How Much? Security
Associative Health and
Technologies
Blame That Fail Safety
Commission/ Lack of
Legislative Higher Bills Customer
Intervention Benefit/Value
© Aclara Technologies LLC, 2012

9. What Leads to Customer Backlash?
Perceived Loss Who Pays and Privacy and
of Control How Much? Security
Associative Health and
Technologies
Blame That Fail Safety
Commission/ Lack of
Legislative Higher Bills Customer
Intervention Benefit/Value
© Aclara Technologies LLC, 2012

10. What Leads to Customer Backlash?
Perceived Loss Who Pays and Privacy and
of Control How Much? Security
Associative Health and
Technologies
Blame That Fail Safety
Commission/ Lack of
Legislative Higher Bills Customer
Intervention Benefit/Value
© Aclara Technologies LLC, 2012

11. What Leads to Customer Backlash?
Perceived Loss Who Pays and Privacy and
of Control How Much? Security
Associative Health and
Technologies
Blame That Fail Safety
Commission/ Lack of
Legislative Higher Bills Customer
Intervention Benefit/Value
© Aclara Technologies LLC, 2012

12. Perceived Loss of Control
Source: digitalart / FreeDigitalPhotos.net
© Aclara Technologies LLC, 2012

13. What Leads to Customer Backlash?
Perceived Loss Who Pays and Privacy and
of Control How Much? Security
Associative Health and
Technologies
Blame That Fail Safety
Commission/ Lack of
Legislative Higher Bills Customer
Intervention Benefit/Value
© Aclara Technologies LLC, 2012

14. What Leads to Customer Backlash?
Perceived Loss Who Pays and Privacy and
of Control How Much? Security
Associative Health and
Technologies
Blame That Fail Safety
Commission/ Lack of
Legislative Higher Bills Customer
Intervention Benefit/Value
© Aclara Technologies LLC, 2012

15. What Leads to Customer Backlash?
Perceived Loss Who Pays and Privacy and
of Control How Much? Security
Associative Health and
Technologies
Blame That Fail Safety
Commission/ Lack of
Legislative Higher Bills Customer
Intervention Benefit/Value
© Aclara Technologies LLC, 2012

16. Privacy
What customers want to know: What the customer hears:
• What happens to my usage data • “Your smart meter shows… if you
collected from the smart meter? were home on the night of the
• Who owns my usage data? murder.”
• Who has access to my usage data? • “This is a search without a warrant
• What are your privacy policies and everyday.”
how are you protecting my personal • “This is your personal private life
energy information? 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

17. Security
© Aclara Technologies LLC, 2012

18. What Leads to Customer Backlash?
Perceived Loss Who Pays and Privacy and
of Control How Much? Security
Associative Health and
Technologies
Blame That Fail Safety
Commission/ Lack of
Legislative Higher Bills Customer
Intervention Benefit/Value
© Aclara Technologies LLC, 2012

19. Health & Safety
Courtesy: sfcitizen.com/blog
© Aclara Technologies LLC, 2012

20. Health & Safety
Source: Is smart meter RF exposure safe? Yes., Central Maine Power
© Aclara Technologies LLC, 2012

21. What Leads to Customer Backlash?
Perceived Loss Who Pays and Privacy and
of Control How Much? Security
Associative Health and
Technologies
Blame That Fail Safety
Commission/ Lack of
Legislative Higher Bills Customer
Intervention Benefit/Value
© Aclara Technologies LLC, 2012

22. Customer Benefit/Value
© Aclara Technologies LLC, 2012

23. How Utilities Deal with Backlash
Proactive &
Multi-channel Show Value Transparency
Communication
Dedicated
One-on-one AMI Opt-Out
Community
Discussions
Engagement
© Aclara Technologies LLC, 2012

24. How Utilities Deal with Backlash
Proactive &
Multi-channel Show Value Transparency
Communication
Dedicated
One-on-one AMI Opt-Out
Community
Discussions
Engagement
© Aclara Technologies LLC, 2012

25. Dealing with Backlash: Opt-Out
© Aclara Technologies LLC, 2012

26. MELANIE WEMPLE
RESEARCH ASSOCIATE
E SOURCE
MELANIE_WEMPLE@ESOURCE.COM
303.345.9149
© Aclara Technologies LLC, 2012