Business Insider called Pepco “the most hated business in America” last July after a nationwide survey revealed the utility’s customers experienced 70 percent more power outages than residents of other big cities, and that the outages lasted twice as long on average. A year later, Pepco seems determined to retain this dubious distinction.
Citing the authority granted to it by the D.C. Public Service Commission, Pepco has threatened to cut off power to 600 local customers within 10 days simply because they had not yet had “smart meters” installed. All residential customers in D.C. must have smart meters installed by 2013, financed by a $44.6 million federal stimulus grant.
Some of the customers now being threatened simply did not take the time to schedule the mandatory installation. Others cited health, safety and privacy concerns. Pepco is installing the same brand of meters used by in California by Pacific Gas and Electric Co., which admitted last May that 1,600 of its smart meters malfunctioned when they got too hot, charging customers for electricity they never used. Last August, a power surge in East Palo Alto caused 80 recently installed smart meters to catch fire. The same utility shut off power to half a dozen homes in Santa Cruz two weeks before Christmas after residents, complaining of adverse health effects, hired their own electricians to replace the meters.
Whether or not these concerns are overblown, privacy remains a major issue with “smart meters” as well. The technology will enable Pepco to collect data on residential energy usage on an hourly basis — an enormous amount of what should be private information about residents’ habits and behavior. The meters will supposedly help customers cut back, but Pepco is not saying what will happen if they don’t. Whether or not Pepco ever chooses to exercise it, the 261,861 smart meters already installed will give them the capability of remotely switching off power to households consuming “too much” energy.
Pepco, which says it has received no reports of fire or safety issues, has repeatedly promised District customers the devices will save them money. But this remains an open question, since according to the Office of the People’s Counsel, the Public Service Commission “has not made a decision on the proposed new rates that will accompany the new network,” which go into effect next year.
Pepco responded to an inquiry by The Washington Examiner saying it has “temporarily suspended” the cut-off letter campaign. But that’s hardy enough to win the out-of-favor utility any popularity prizes.
