Google urges Barack Obama to promise smart meters for every US home

Internet giant joined by Nokia, General Electric and Intel in calling on US goverment to upgrade electricity grid using IT
Suzanne Goldenberg, US environment correspondent
guardian.co.uk, Thursday 8 April 2010 11.02 BST

American presidents used to promise a chicken in every pot. If it were up to Google it would be a smart meter in every home.
In an initiative with the Climate Group, the company this week wrote a letter and hosted a summit at its Washington DC offices to urge Barack Obama to adopt a goal of providing every household with real time information about their electricity use.
"By giving people the ability to monitor and manage their energy consumption, for instance, via their computers, phones or other devices, we can unleash the forces of innovation in homes and businesses," says the letter, signed by more than 40 leading businesses and environmental groups.
As the roster of signatures - which includes Nokia, General Electric, AT&T, Intel and Hewlett Packard - suggests Google is not the only company to see huge potential in upgrading America's antiquated grid with modern information technology.
More than 200 start-ups are now working on energy information devices to provide consumers with actionable information on how their electricity is generated, eg coal or solar; the cost of running appliances; and the price according to the time of day.
Google has already launched its PowerMeter, a free web device that allows people to track their electricity use from their computers.
The companies claim devices such as these can make an immediate difference in behaviour, getting people to switch off lights or do their laundry at night, when electricity is cheaper.
Charlene Begley, the chief executive officer of GE's home and business solutions, said they were finding a 7% to 10% reduction in energy use after installation of real-time metering devices.
But there is a lot the companies still don't know. How much information do consumers really want? Do they want to be nagged to switch off the lights every night, or will they rebel? It's not even clear how they want that information delivered: by smart phone, computer widget, or television (if at all). "We are not ready to place a bet on any one format," said Lorie Wigle, the head of Intel's eco-technology unit.
Who owns the highly personal information collected in private homes? How do you protect consumers' privacy? "It could be very attractive to package this and sell it in all kinds of ways," said Leslie Harris, president of the Centre for Democracy and Technology. Then there is the problem of hackers.
And, even as the Obama administration funds the roll-out of some 18 million smart meters (with some $3.4bn alloted under last year's economic recovery plan) it remains unclear who is to pay for the transition.
The summit was told the administration has to do more to promote the deployment of new technologies, such as offering rebates to consumers and helping companies with the initial expense of smart technology.
Begley said it could cost GE more than $200m to develop a refrigerator capable of automatically adjusting functions according to the time of day. "We have to be able to show shareholders a promising return," she said.
It is also crucial to reassure consumers that they will indeed be better-off having the new technology in their home. In Texas and California, initial limited rollouts of smart meters have generated thousands of complaints and even lawsuits claiming that the meters led to much higher electricity prices.
California's regulatory authority ordered an independent audit of the smart meters deployed by one company, Pacific Gas & Electricity. In some cases, customers reported bills three times higher than normal even when they were away on holiday.
For the rollout of a new technology that doesn't look very smart.