Ask The Energy Expert
Will prepaid electricity be offered?By Kevin Hurd, Manager of Member Services
We've just concluded our pilot program for prepaid account management, and are pleased to announce it was a success. We learned important lessons that will help us get the program in full swing, with open enrollment beginning April 1.
What is prepaid electricity? It's a new way you can purchase electricity before you use it, through our new Prepaid Account Management System (PAMS). This software-based program lets consumers who choose this payment method manage their energy use and purchases.
It works similar to a debit card. You put money into your Cuivre River account, using any payment method currently available, to purchase electricity before you use it. You establish a credit balance. As you use electricity, your credit is reduced each day until either your money runs out or you add more funds. If your credit balance is exhausted, your electricity is disconnected until you add funds to purchase more.
You can manage your prepaid account through an easy-to-use internet website, MyUsage.com. You receive daily information including your account balance, energy use, and alerts if your account is running low or a disconnect is pending. You can either log into MyUsage.com and view the data, or use a telephone system with 24-hour interactive voice response (IVR) in lieu of the Internet. You decide the type, frequency and delivery methods for your account alerts. If you do not have Internet service, a Cuivre River representative can assist you during normal business hours.
What lessons did we learn from the pilot program? We were able to field test solutions to problems we anticipated.
Lesson #1: Technology can be a wonderful tool when all the pieces communicate. It took months to interface PAMS software and our Consumer Information System software with our smart meter equipment. Cuivre River has several meter types, each with different communication capabilities. Integration is critical. We needed to develop a data communication strategy for certain pieces of equipment.
Meters are similarly effective at communicating the daily meter readings essential for managing energy use and planning payments. PAMS software must be able to “see” your account information to post your payments correctly and know when to begin a new "rate block cycle" (traditionally called a "billing period").
If your credit balance reaches "zero" and no funds are added, PAMS must communicate "disconnect" and "reconnect" information based on whether or not you deposit funds into your account.
Here's where meters vary. About 50% of our smart meters will have the capability to automatically communicate "disconnect" and "reconnect" commands based on your payments 24/7/365. The remaining 50% of our meters lack this feature; as a result, they require a service crew to disconnect and reconnect electricity.
Why not simply make all meters match? It would take a substantial monetary investment to convert to a single smart meter infrastructure. Upgrades cannot be cost-justified at this time.
Lesson #2: Consumers like choices, and PAMS offers many. Volunteers experienced a learning curve as they became accustomed to (1) not receiving a monthly bill, (2) paying as much or as little as they wished, and (3) paying more or less often. Most came to appreciate the freedom and flexibility the PAMS program allowed.
Other electric utilities using the PAMS program report that many participants gain important knowledge from daily energy use alerts and data, and reduce their electric consumption by as much as 15%. They more easily recognize the correlation between certain activities or HVAC settings and the weather, make more informed decisions, and manage daily energy use better.
Many consumers also report it's easier to manage their household budgets because they can schedule smaller, more frequent payments. And, since a prepaid account always has a positive balance (or it is disconnected) no security deposit is required. Many consumers enjoy the freedom to use that money for other needs.
Lesson #3: The PAMS program is not suited for everyone. A few volunteers were anxious to return to the traditional billing system. A major drawback: they neither wished to nor had time to monitor their energy use and make multiple payments to prevent power disruption.
In some cases, the program may not be advantageous. To enroll, past due plus current energy charges must be paid in full, with a $50 minimum start-up credit. If you have a large past due balance, you may find no immediate advantage to participate. And since the Cooperative incurs added costs for PAMS participation, a portion of those costs are passed on to participants — an additional 20¢ per day.
Lesson #4: There is something in this for everyone. Cuivre River’s participation in the PAMS program gives all Cuivre River members the ability to monitor their daily energy use, regardless of their interest in PAMS participation.
Through MyUsage.com, all members have easy Internet access to daily energy use, and can receive e-mail alerts on maximum and daily kWh use. There is no cost for this service. Some cell phone “apps” are also available to monitor home energy use remotely.
Cuivre River is excited to offer this new payment option to members who choose to participate. It is a win-win for the member and the Cooperative.
Internal procedures are being finalized and employee training is concluding. The official start date is set for April 1, 2011. However, if you wish to enroll early or would like additional information, you may contact Doug Hutton at doughutton@cuivre.com anytime or call 800.392.3709, ext. 250, 3:30 p.m. — 10:30 p.m.
Smart Meter Myths Debunked
Internet sites and a recent radio program have provided inaccurate and unsubstantiated information about smart meter technology. These resources imply that smart meters (1) increase home energy use, (2) cause negative health effects and emit radio frequency (RF) energy, and (3) tell your utility exactly which items you're using inside your home.
At Cuivre River, those statements are False, False and False.
What is a smart meter? In today’s world, any automated meter is considered “smart”. There are different types of "smart" meter technologies, but most meters primarily provide a meter reading to the utility and let the utility know if the meter has power flowing through it.
Smart meters inform the utility if power is flowing in the correct direction, or if it's being diverted by someone attempting to “steal” energy. Many smart meters also record a home’s voltage at specific intervals, if two-way communication capabilities exist.
(1) Energy use. The automated meters Cuivre River deploys use smart technology that is up-to-date, and affordably meets our needs and your needs. We've had smart meters in the field for nearly 15 years, and no longer install mechanical meters. The technology we use is not new, but remains very effective in helping us operate with a high degree of efficiency and accuracy.
Many utilities are just now replacing mechanical meters with the electronic smart meters. They found that aging mechanical meters were no longer recording all of the electricity flowing through them. The newer meters simply record the energy use more accurately.
(2) Health effects. A report by the California Council of Science and Technology, published in January, 2011, concludes that smart meters result in much smaller levels of radio frequency (RF) exposure than many existing common household electronic devices, particularly cell phones and microwave ovens. They meet the FCC standard, which provides an adequate factor of safety against known thermally induced health impacts. To date, scientific studies have not identified or confirmed negative health effects from potential non-thermal impacts of RF emissions, such as those produced by existing common household electronic devices and smart meters. (To view the full report, go to www.ccst.us.)
(3) Privacy. An electric meter, whether it uses the most advanced smart technology or not, cannot provide information that allows the utility to discern if specific items are being used in a home. The meter records overall electricity use.
For more information about your meter, contact a representative in the Member Services Department at 800.392.3709, ext. 272, 231, 233, or 334.