Smart meters are a win-win prospect for state

Don Reid, Las Vegas

Monday, May 31, 2010 | 2:01 a.m.

Regarding Thomas Shubbuck Sr.’s Thursday letter to the editor — headlined “Wins for NV Energy are losses for ratepayers” — about the installation of new electric meters by the utility:

I have been involved in the power industry as a banker and developer for more than 20 years and I believe it is important to understand the facts and processes involved in the electric sector so that we all can make the best decisions possible.

The writer asserts that there won’t be a win for him. That is not necessarily so. The goal of the installation of the new meters (smart meters that display usage in real time) is to create a win-win for all parties, not just one party.

By using smart meters coupled with time-of-day rates, Nevadans will know when to shift usage to the less expensive periods of the day, thus saving money.

In turn, NV Energy will be able to cut back on building power plants to meet peak load demand and thus cut back on the need for future rate increases. The overall economic objective of smart meters is to lower electric bills by reducing expenditures on power plants.

To prove this benefit, NV Energy will conduct a trial in the north and south in Nevada to test how its participants will modify their behavior based on the current usage and cost information displayed by the meters.

The trial results, if positive, will then be followed by a formal request to the Nevada Public Utilities Commission to implement the metering program on a statewide basis. The PUC will approve the program on the basis that it is a win-win for both the utility and the consumer, not a win-loss.