So we see that utilities first start to invest in smart metering programs at the residential & commercial sector. But why would utilities do that when immediate benefits can occur by clawing back the $52 Billion loses due to short momentary power interruptions or disturbances.Perhaps the explanation could be as simple as by deploying metering programs 1st, it has been argued by us (Meter-to-Cash - Electricity Use & Optimization Benefit) that two-way communications (AMI Network) all across the grid will let utilities:
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However, we do question utilities’ revenue protection and creation techniques by attempting to institute demand response initiatives like time-of-use (TOU) and demand pricing (DP) into the smart metering programs. Instead of using static tiered rates to promote off-peak energy, dynamic pricing gives the utilities the power that they need to change the billing rate to the customer at any time.
Of course the increase in billing price justification will be based on the fact that PUC had given the utilities the latitude to increase the charge according to actual real time cost of energy production and consumption.
Moreover, if utilities can identify the actual appliance being used (AMI-HAN Interface) during restricted or blackout time period. The utilities can levy serious penalty fees on top of that peak price.
How can the utilities do this? The utilities can show that during that period of time in question they had to go to the spot market to satisfy the energy demand placed by customers in violation.
One might ask: are there exceptions for the elderly or the sick needing medical equipment in their residence? The answer is ‘we don’t know’. It will be up to the utilities’ discretion. The utilities could argue that the customer did not properly register the medical equipment or did not properly receive medical documents for consumption peak-time usage.
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