Michigan Bill Would Allow People To Opt Out Of Smart Meters, Undermine Federal Program

By Shane Trejo

A bill introduced in the Michigan House would allow customers to opt out of installing “smart meter” technology on their homes and businesses. Passage of this bill would allow Michigan residents to protect their own privacy, and it would take a step toward blocking a federal program in effect.

Rep. Gary Glenn (R-Midland) introduced House Bill 4220 (HB4220) along with 17 bipartisan co-sponsors on Feb. 15. The legislation would allow Michigan residents to opt out of any utility company smart meter program with no penalty.

Smart meters monitor home energy usage in minute detail in real time. The devices transmit data to the utility company were it gets stored in databases. Anybody with access to the data can download it for analysts. Without specific criteria limiting access to the data, these devices create significant privacy issues. Smart meters can also be used to remotely limit power usage during peak hours.

HB4220 provides a comprehensive smart meter opt-out right for utility customers.

A utility shall not do any of the following:

(a) Make the provision of any portion of utility service to a customer contingent on the customer receiving service through any meter or similar device other than a traditional meter. a utility may prohibit a customer with a traditional meter from participating in certain time-of-day tariff discounts.

(b) Except as otherwise provided in this section, impose any fee or disincentive on a customer for opting out of or not accepting the installation of an advanced meter or hub meter or the use of an advanced meter function.

(c) Install an advanced meter or upgrade the functionality of the advanced meter after the effective date of the amendatory act that added this section unless the customer has been properly notified and has not opted out of the installation or upgrade.

The legislation would also require utility companies to give customers 45 days notice before installing smart meter technology with a right to decline installation. If a smart meter were installed before the legislation was enacted, the utility company would have to remove it free of charge.

PRIVACY CONCERNS

The proliferation of smart meters creates significant privacy concerns. The data collected can tell anybody who holds it a great deal about what goes on inside a home. It can reveal when residents are at home, asleep or on vacation. It can also pinpoint “unusual” energy use, and could someday serve to help enforce “energy usage” regulations. The ACLU summarized the privacy issues surrounding smart meters in a recent report.

The temptation to use the information that will be collected from customers for something other than managing electrical loads will be strong – as it has been for cell phone tracking data and GPS information. Police may want to know your general comings and goings or whether you’re growing marijuana in your basement under grow lights. Advertisers will want the information to sell you a new washing machine to replace the energy hog you got as a wedding present 20 years ago. Information flowing in a smart grid will become more and more ‘granular’ as the system develops.

The privacy issues aren’t merely theoretical. According to information obtained by the California ACLU, utility companies in the state have disclosed information gathered by smart meters on thousands of customers. San Diego Gas and Electric alone disclosed data on more than 4,000 customers. The vast majority of disclosures were in response to subpoenas by government agencies “often in drug enforcement cases or efforts to find specific individuals,” according to SFGate.

Mark Toney, executive director of the Utility Reform Network watchdog group, said the sheer number of data disclosures made by SDG&E raised the possibility that government agencies wanted to sift through large amounts of data looking for patterns, rather than conducting targeted investigations.

Refusing to allow a smart meter on your property is the only sure-fire way to ensure your energy use data won’t fall into the hands of government agents or private marketers, or end up stored in some kind of government database. Passage of HB4220 would make opting out a legal option for New Yorkers and give them control over their own privacy.

IMPACT ON FEDERAL PROGRAMS

The federal government serves as a major source of funding for smart meters. A 2009 program through the U.S. Department of Energy distributed $4.5 billion for smart grid technology. The initial projects were expected to fund the installation of 1.8 million smart meters over three years.

The federal government lacks any constitutional authority to fund smart grid technology. The easiest way to nullify such programs is to simply not participate. HB4220 would make that possible. If enough states pass similar legislation, and enough people opt out, the program will go nowhere. Opting out follows a strategy James Madison advised in Federalist #46. “Refusal to cooperate with officers of the Union” provides a powerful means to fight back against government overreach. Such actions in multiple states would likely be effective in bringing down federal smart meter programs.

UP NEXT

HB4220 will need to pass the House Committee On Energy Policy before it can be considered by the full House. Stay in touch with our Tenther Blog and our Tracking and Action Center for the latest updates.

Shane Trejo writes for the Tenth Amendment Center, where this article first appeared.