HELENA, Mont. (Jan. 28, 2019) – A bill introduced in the Montana House would restrict the sharing of “smart meter” data and set the stage to allow utility customers to opt out of the technology altogether.ย Passage of this bill would protect privacy, and it would take a step toward blocking a federal program in effect.

Rep. Daniel Zolnikov (R-Billings) introduced House Bill 267 (HB267) on Jan. 22. The legislation would prohibit utility companies from disclosing smart meter data and require them to ensure all such data be “sufficiently secured” so that it cannot be intercepted. The proposed law would also require utilities to give customers written notice before installing smart meters on their property.

Additionally, HB267 would require theย public service commission to determine whether an opt-out program for advanced metering devices should be established.

Smart meters monitor home energy usage in minute detail in real time. The devices transmit data to the utility company where 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.

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 โ€œunusualโ€ energy use, and could someday serve to help enforce โ€œenergy usageโ€ regulations. The ACLUย summarized the privacy issuesย surrounding smart meters in a recent report.

โ€œThe temptation to use the information that will be collected from customers for something other than managing electrical loads will be strong โ€“ as it has been for cell phone tracking data and GPS information. Police may want to know your general comings and goings or whether youโ€™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 โ€˜granularโ€™ as the system develops.โ€

The privacy issues arenโ€™t merely theoretical. According to information obtained by the California ACLU, utility companies in the state have disclosed information gatheredย 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 โ€œoften in drug enforcement cases or efforts to find specific individuals,โ€ย according to SFGate.

โ€œMark 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.โ€

No Smart Meter, No Data

Refusing to allow a smart meter on your property is the only sure-fire way to ensure your energy use data wonโ€™t fall into the hands of government agents or private marketers, or end up stored in some kind of government database. Passage of HB267 would take the first step by limiting data-sharing and would set the stage to allow property owners to opt out completely.

Impact on Federal Program

The federal government serves asย 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. SB1128 would make that possible. If enough states pass similar legislation, and enough people opt out, the program will go nowhere.

Weโ€™ve seen aย similar opt-out movement undermining Common Core in New York. Opting out follows a strategy James Madison advised inย Federalist #46. โ€œRefusal to cooperate with officers of the Unionโ€ 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.

WHATโ€™S NEXT

HB267 was referred to the House Energy, Technology and Federal Relations Committee where it must pass by a majority vote before moving forward in the legislative process.

Mike Maharrey
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