Adjustable Electric Rates Coming

Posted by Holly Martin Dec 12, 2007

If some electrical utilities have their way, new "smart meters" will be installed at every address, in hopes of reducing electrical power use during peak hours. By checking on the current electricity rates every few minutes, the meters will be programmable to automatically shut down the air conditioner, dishwasher or dryer when electricity demand is greatest--usually the middle of the day.

In another twist on smart technology, utilities could install a "smart thermostat" that receives radio signals from the utility to shut down appliances when prices go up.

This sounds like another great use of "green technology" to protect the environment. And smart meters will definitely increase consumer awareness of how much power they are consuming, so that they will work harder to conserve energy.

However, as with all technologies, the science is only part of the equation. According to an article in the Washington Post today, one utility plans to charge customers for the meters, which will cost around $200. (They predict that the customer's energy cost savings will more than pay for the new equipment.)

And what about those retirees, homemakers with small children, and self-employed entrepreneurs (such as yours truly), who NEED air conditioning during the middle of the day? Is it fair to charge us several times higher rates? That's a question for the regulators, not the technologists.