Smart Grid: Test Customers Give Thumbs Up

The people have spoken, and they like smart grid. Customers in a trial conducted by Silver Spring Networks and OG&E said they began to change their behavior when they started to understand how much they were spending on power.

Smart grid technology makes at least one person swoon.

"My knees buckled when I looked at the meter," wrote a participant in a smart grid trial recently conducted by Silver Spring Networks and OG&E Electric Services. "We had twenty little kids running in and out. The air conditioner was running double time. It's convenient to have the ability to see how much you're spending versus normal times."

The two companies rigged up 6,600 apartments in Oklahoma City with smart meters and thermostats that provided tenants with how much power they were consuming and how much they were spending. One of the goals of the trial was to see whether consumers would actually pay attention to price signals from the thermostat and act on it. (OG&E also used the smart meters to turn service off and open new accounts remotely rather than send out a truck.)

Short answer, they will.

"I was not aware of the 2–7 p.m. rate increase or the  'critical' rate period," said another participant.

Skeptics have questioned whether Americans would change their lifestyle or adjust their air conditioners, particularly when the price changes can be measured in pennies. There have also been concerns about thermostat ennui settling in after the honeymoon period. Gas prices didn't become a concern until it approached $4 a gallon.

The results are good news for the smart grid industry and utilities, which can accumulate data like this to woo policy makers and investors. Pacific Gas & Electric, the large California utility, is installing hundreds of thousands of Silver Spring meters a month.

"There is price elasticity for electricity. If you send people information, they will act on it," said Eric Dresselhuys, vice president and co-founder of Silver Spring.

And here are more comments in response to the trial: