Teviah Moro
The Orillia Packet & Times
October 2, 2007

Is it a money saver, environmental safeguard, or a profit generator?

One expert calls it a "wonderful" idea that may not pay off in the end.

Whatever the case, Orillia city councillors aren’t yet sold on the province’s plan to install 800,000 Smart Meters across Ontario by year end.

"I want to know that Ontario is getting the best bang for their buck," Coun. Michael Fogarty said after Monday’s council meeting.

He estimated with a $200 installation cost per household, and 12,000 in Orillia, it will cost $2.4 million in capital costs. "Is that $2.4 million better spent elsewhere?"

And one councillor, at least, believes the $1-billion plan is just a profit-driven scam that will drive up prices.

"It’s a target on the people and they brought the big guns out to sell it," Coun. Maurice McMillan bristled on Tuesday.

By Dec. 31, 2010, all consumers are to have one of the gizmos in place which discourage electricity consumption during peak times by tracking how much power is used and at what time of day.

Consumers will pay higher prices for electricity during periods of high demand, and lower prices during periods of low demand.

"The way they’re marketing it, there will be savings, if you can do this, if you can change your life, and I don’t know if there’s going to be a savings," Coun. Tim Lauer said after Monday night’s council meeting after a presentation about Ontario’s electricity sector.

Terry Young, director of external relations and communications for the Independent Electricity System Operator (IESO) fielded questions about the smart meter from councillors.

"Hopefully, with the right education, customers will be shifting their use of electricity," Young said.

Currently, residential users pay rates set by the Ontario Energy Board according to the Regulated Price Plan. This year, it hovered around 5 cents per kilowatt hour.

With Smart Meters, the rate will be 7.2 cents per kilowatt hour on weekdays 7-11 a.m., 9.2 cents, 11 a.m. – 5 p.m., 7.2 cents, 10 p.m.- 7 a.m., 3.2 cents, 10 p.m. – 7 a.m. and 3.2 cents on weekends.

Lauer questioned how Smart Meter rates would average out on any given day for conscientious consumers, compared with the current regulated rate. "When you average that all out, on an average kilowatt hour a day, I’m wondering how much saving it is?"

Fogarty asked if it makes sense to invest in more generation rather than installing Smart Meters.

Young suggested that it may not, environmentally or fiscally.

"It’s one less plant that you have that has an impact on the environment; it’s one less plant that you’re paying for."

As it stands, Ontario has 31,000 megawatts of installed capacity. The consumption peak set last year was 27,005 megawatts between 4 and 5 p.m. on Aug.1.

During only 32 of 9,000 hours, demand exceeded 25,000 megawatts, Young said. "But we have to have that 2,000 megawatts available for just 32 hours of the year," he said, explaining why shifting demand to different times can reduce the need at peaks.

Still, the province has 7,000 more megawatts of generation planned for installation by 2011. It plans to take coal plants off line.

Norm Rubin, a senior policy analyst with Energy Probe, a consumer and environmental research group, said the Smart Meter is a "wonderful" idea that empowers consumers.

"The problem is that they do it at a fairly high cost," Rubin said.

And it’s questionable if the average customer’s actions will translate into any significant savings, he said.

Moreover, "keeners" who hang their laundry up to dry instead of throwing it in the dryer won’t necessarily benefit but still have to pay for the meter’s data collection, Rubin said.

McMillan believes the gizmos are bad for the consumer, but great for bottom lines in a profit-hungry sector.

"This is a great tool to increase profits for the city," McMillan said, referring to revenue generated by the Orillia Power Corporation.

"If it costs $200 million for that (multi-use recreation facility), we’re going to raise it through your hydro bill."