The future of electricity is the smart grid and an essential piece of the smart grid is the smart meter. What is a smart meter? It?s a device that allows both the consumer and the electric company to access real time information about your electricity usage.

But in California the reputation of smart meters has been tainted by numerous instances of incorrect readings. Those issues resurfaced again when over 1,500 consumers under the Pacific Gas and Electric Company were overcharged this spring. Meters manufactured by Landis+Gyr malfunctioned when they got too hot, and charged consumers for more electricity than they actually used. In context, the faulty meters represent less than 1% of the 2.2 million meters PG&E has purchased from Landis+Gyr.

Ironically, ?smart meters? were installed with the expectation that they would reduce electricity prices as consumers responded to market fluctuations and conserved accordingly.

Smart meters were installed by major investor-owned utilities throughout California and were at least partially paid for by rate-payers through additional fees. PG&E has installed about 8 million smart meters as part of a statewide rollout of the technology.

The backlash against smart meters in California began in 2009 with a class-action lawsuit claiming rate-payers were overcharged with bills up to 300% higher than normal in Bakersfield.  In January of this year, two women were arrested in a Park for blocking a truck carrying smart meters. The arrests follow two earlier, similar ones in the area.

In addition, a study by the Ponemon Institute found that the more people know about smart meters, the more likely they are to worry about the impact these meters will have on their privacy. The survey of more than 25,000 adult-aged individuals in the United States found 39 percent believe the smart grid will diminish their privacy, 37 percent believe it will not impact or improve their privacy, and 24 percent are unsure. The primary concern among those surveyed is the use of personal information on lifestyle by the government. Adding to this concern is the fact that many consumers do not realize they have a smart meter until it is installed.

The integration of smart meters vastly expands the information that may be created, collected and analyzed. Their advancement is a central piece of creating an efficient smart grid for the 21^st century. Therefore, the regulatory process which established protocols for approving metering systems and expanded efforts to educate consumers on the impact of smart meters are essential. Sharing data management practices and assuring consumers their information will remain anonymous and secure would go a long way to quelling fears over the smart meter transition.