JEFFERSON CITY, Mo. (Dec. 16, 2016) – A bill prefiled in the Missouri legislature for the 2017 session would ensure customers can opt out of installing “smart meter” technology on their homes and businesses. Passage of the bill would allow Missourians to protect their own privacy, and it would take a step toward blocking a federal program in effect.
Rep. Tim Remole (R- Excello) prefiled House Bill 196 (HB196) on Dec. 12. The legislation would require utilities regulated by the Public Service Commission to allow customers to choose between smart meters and traditional meters, and would prohibit utilities from disincentivizing traditional meter usage.
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.
HB196 would require utilities to encrypt data communicated by a smart metering network. Law enforcement agencies would be required to get a warrant of lawful court order before accessing any such data.
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.”
No Smart Meter, No Data
While encrypting smart meter data and warrant requirements for law enforcement address some of the privacy issues, 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 HB196 would make opting out an option for Missourians and give them control over their own privacy.
Impact on Federal Program
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. HB196 would make that possible. If enough states pass similar legislation, and enough people opt out, the program will go nowhere.
We’ve seen a similar opt out movement undermining Common Core in New York. 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.