Utility Regulators Vote on Smart Grid Privacy Resolution

This week, the National Association of Regulatory Utility Commissioners (NARUC) is holding their annual meeting in Chicago. On Wednesday, the Commissioners will vote on passing a new resolution that will address privacy concerns and the development of the Smart Grid. We applaud the proposed resolution (see pg. 16) which will call for clear notices, consent, opt-in requirements, and “the minimum amount of data necessary…to be collected” for the use of personally-identifiable information in Smart Grid technologies. We are pleased to see that utility regulators are considering privacy issues as Smart Grid development moves forward. We hope that regulators will look to experts in the privacy and technology community, as well as consumer advocates, as they grapple with the data challenges created by the Grid.

Here is the relevant text of the resolution –

“RESOLVED, That NARUC agrees that the new smart meters and accompanying potential and actual uses create the need for utilities to be more transparent and clearly provide notice documenting the types of information items collected, and the purposes for collecting the data, and that NARUC agrees to recommend that its member States will so require; and be it further

RESOLVED, That NARUC will recommend that member States require within the smart grid implementation that a clearly-specified notice must describe the purpose for any collection, use, retention, and sharing of personally identifiable information (PII), and that the consumer will have the choice to provide or to not provide such PII; and be it further

RESOLVED, That NARUC will recommend that member States require that with the smart grid implementation the utilities must give residents a choice about the types of data collected and that utilities must obtain consent from residents before using the collected data for other purposes, and as a requirement before data can be shared with any other entities; and be it further

RESOLVED, That NARUC acknowledges that in the current operation of the electric grid, data taken from meters consists of basic data usage readings required to create bills, but under a smart grid implementation, meters will collect other types of data as well, much of which will be personally identifiable information with associated privacy risks, and that, therefore NARUC further resolves to recommend that only the minimum amount of data necessary for the utility companies to use for energy management and billing should be allowed to be collected; and be it further

RESOLVED, That NARUC agrees that system-wide smart grid deployment should not jeopardize an individual’s privacy as that deployment is used to improve the system’s reliability, reduce overall costs and improve customer service.”