Transcript Consumer Rights & Responsibilities, Protections

Consumer Rights &
Responsibilities, Protections
Energy Regulatory Partnership Program
Abuja, Nigeria
July 14-18, 2008
Robert W. Kehres
Director, Regulatory Affairs Division
Michigan Public Service Commission
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Consumer Rights
Responsibilities and Protections
• MPSC developed the Consumer Standards and
Billing Practices for Electrical and Gas
Residential Services Rules
• Purpose of rules:
 Provide protection from utility practices harmful to
residential customers
 Determine utility company and customer rights and
responsibilities
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Customer Rights
• Residential gas and electric customers
have the right to have:
 Safe and reliable service
 Fair and equitable treatment
 Utility meters read accurately monthly
 Accurate bills by mail or electronically (if company
can provide)
 Prompt and courteous handling of questions and /or
problems
 Protection from unfair security deposits or guarantee
terms and conditions
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Customer Rights (Continued)
• Customers also have the right to energy
assistance programs:
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Budget Billing Plans
Winter Protection Program
Home Heating Credit
Earned Income Credit
State Emergency Relief Program
Medical Emergency
Protection for Active Military Duty
Weatherization Assistance
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Customer Protections
Budget Billing Plans
CONTACT: Local utility company
 Offered by utilities (required by the MPSC)
 Assists customers with household budgets
 Allows customers to pay their estimated annual bill in equal
monthly payments
 Review is done at the end of 11/12 months and monthly
payment amount may be adjusted up or down
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Customer Protections (Continued)
Heating Assistance Programs
Winter Protection Plan (WPP)
CONTACT: Local utility company
 Required by state law and MPSC rules
 Low income and senior citizens will not be shut off during
heating season if they meet the requirements
 Heating season is November 1 – March 31
 Pay all amounts not paid during heating season in summer
months
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Customer Protections (Continued)
Winter Protection Plan (WPP)Benefits
Low Income Customers
CONTACT: Local utility company
 Income at 150% of Federal Poverty Level
 Pay 7% of estimated annual bill each month November 1 –
March 31
 Pay 1/12 of past due bills at enrollment November 1- March
31
 Shutoff protection for natural gas and electric service
 Can be used to restore or initiate participation in the program.
Pay 1/12 of past due bill but no deposit or reconnect fee
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Winter Protection Plan (WPP) Income
Guidelines 2007-2008
Household Members
1
2
3
4
5
6
7
8
Maximum Income
$15,315
$20,535
$25,755
$30,975
$36,195
$41,415
$46,635
$51,855
Add $5,220 for each additional household member
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Winter Protection Program (WPP) for
Seniors
CONTACT: Local utility company
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Notify company if 65 or older
Enroll between November 1 and March 31
No specific payment amounts required
Encouraged to pay what they can.
Must repay amounts owing at end of shut off protection period
Payments can be spread from April to beginning of next
heating season (November 1)
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Customer Protections (Continued)
Home Heating Credit (HHC)
CONTACT: Michigan Department of Treasury or
Local utility company
 Administered by MI Department of Treasury
 Income guidelines (extra exemption for seniors and disabled
persons)
 Customer must complete form to get credit but not required to
file income tax form
 Local agencies and sometimes utilities will help complete form
 Shut off protection provided while form being processed by
Treasury
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Customer Protections (Continued)
Home Heating Credit
Income Guidelines
Household
Exemptions
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2
3
4
5
6
Income Ceiling
$11,243
$15,072
$18,900
$22,729
$26,558
$30,386
For each exemption over 6 add $3,829
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Customer Protections (Continued)
Earned Income Credit (EIC)
CONTACT: Internal Revenue Service (IRS)
 Administered by IRS
 Federal income tax credit for low-income working individuals
and families
 Do not have to owe income tax to qualify but you must file
federal income tax return
 If raising qualifying child in home, may be able to get part of
credit in your paycheck during the year with Advance EIC
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Customer Protections (Continued)
Crisis Assistance Program (State Emergency
Relief)
CONTACT: Michigan Department of Human Services (MDHS)
 Do not have to be an MDHS client
 Must meet income guidelines but do not have to be DHS
client
 Year round help available
 Assists households with heat or electric shutoff notice or who
need deliverable fuel
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Customer Protections (Continued)
Medical Emergency Protection
CONTACT: Local utility company
 Required by MPSC rule
 Protected from shutoff of electric or natural gas up to 21 days
 Must have doctor or public health official statement re: nature of
emergency and time shutoff will aggravate emergency
 Shutoff may be extended up to 63 days with additional certificates
 Annually extensions may be up to 126 days per household
 If shutoff without postponement utility shall unconditionally restore
service for not more than 21 days not to exceed 63 days for a
household member
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Customer Protections (Continued)
Customers on Active Military Duty
 Required by state law and MPSC rules.
 Customer or spouse of customer called to full-time active
duty may request shutoff protection up to 90 days with
extensions.
 Required to repay entire amount billed within 12 months.
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Customer Protections (Continued)
Weatherization Program
Contact: Local Community Action Agency
 Federally funded, free conservation services to low-income
 Helps reduce energy use and lowers utility bills
 DHS clients and individuals at 150% of Federal Poverty Level
eligible
 May include:
 Caulking and weatherstripping
 Wall, basement and attic insulation
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Demand Response
Energy Regulatory Partnership Program
Abuja, Nigeria
July 14-18, 2008
Ikechukwu N. Nwabueze, Ph.D.
Director, Regulated Energy Division
Michigan Public Service Commission
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Definition of Demand Response
• The reduction of customer energy usage at
times of peak usage in order to help address
system reliability, reflect market conditions and
pricing, and support infrastructure optimization
or deferral.
• Programs may include dynamic pricing/tariffs,
price-responsive demand bidding, contractually
obligated and voluntary curtailment and direct
load control/cycling.
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Smart Power Grid
• General concept for the process of transforming
the nation’s electric power grid into an intelligent
network by applying computers, electronics, and
advanced materials to implement advanced
communications, automated controls and other
forms of information technology to improve the
economics, reliability and safety of the grid.
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20th Century Grid
21st Century Smart Grid
Electromechanical
One-way communications (if any)
Digital
Two-way communication
Built for centralized generation
Radial topology
Few sensors
“Blind”
Manual restoration
Prone to failures and blackouts
Accommodates distributed generation
Network topology
Monitors and sensors throughout
Self-monitoring
Semi-Automated restoration and, eventually self-healing
Adaptive protection and islanding
Check equipment manually
Emergency decisions by committee and phone
Limited control over power flows
Limited price information
Few customer choices
Monitor equipment remotely
Decision support systems, predictive reliability
Pervasive control systems
Full and transparent price information
Many customer choices
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Advanced Metering Infrastructure
(AMI)
• Enhancements to transmission-level
developments, which improve grid stability
• Enable demand response programs at a
customer level
• Michigan utilities are investigating AMI as
a platform to implement demand response
programs and other Smart Grid initiatives
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No Major Utility in the USA Has Yet
Deployed Full AMI
• Full AMI includes an in-home wireless network
allowing real-time two-way communication
between the utility and customers.
• Enabling technology consists of the following:
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Internet accessed consumption and price data
Programmable communicating thermostat
Intelligent appliances
In home monitor
Pre-paid services
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AMI/Dynamic Pricing
Creates a Workable Path
to the Smart Home …
Through
Enabling
Technologies
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Solar
Integration
On-line Energy
Management
PHEV
Integration
Digital Kitchen
Energy
Storage
Power Flow
Two-way
Information
Thermostat
A/C
Water Heater
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Utility of the Future
Smart Meters
Advanced Metering
Infrastructure (AMI)
Automatic Meter
Reading (AMR)
Manual meter reading
Monthly kWh reads
> One-way or two-way
> Monthly kWh reads
> Interval data
> Basic theft detection
> Outage/Restoration
Detection
> On-demand reads
> Programmable load
intervals
> Bi-directional and net
metering
> Time of Use, Real
Time Pricing, Critical
Peak Pricing options
> Demand response
> Solid-state platform
Integrated
communications
> Integrated disconnect
switch
> Remotely disconnect
> Remotely connect
Power quality data
> Voltage readings
> Current readings
> Power Factor
> Frequency
> Detailed power outage
data
> Remote programmable
> Remotely upgradeable
> Internal expansion port
> Future functionality
Energy Management
Services
> Residential, Commercial
Home area network
gateway
> PLC (i.e. LONWORKS)
> RF (Bluetooth)
Web-based applications
> Demand response
> Prepayment
> Load control
> Revenue protection
> Web move in/out
Distribution
> Load
profiling/engineering
> Phase balancing
> Transformer optimization
> Energy forecasting
> Outage and GIS
> Work force management
> Asset management
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Pilot Programs/Research
• Inexperience
combining utility AMI
technologies with
innovative dynamic
pricing structure.
• Voluntary
experimentation
through the use of
pilot programs prior to
widespread adoption.
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AMI Pilots and Standards
• Pilots are scheduled to commence in 2008
• Commission guidance is needed to
establish:
– Minimum functionality criteria and standards
necessary for the rate recovery of this
infrastructure development
• Flexibility is critical to allow efficient smart grid
infrastructure development for AMI and other smart
grid developments
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Investigation of Minimum AMI
Functionality Standards
• Commission invited comments on preliminary
questions (Commission Own Motion in Case No.
U-15620):
– How should costs & benefits to utilities and
customers be considered?
– To what extend should advanced-metering
technologies and functions be standardized
and utilities be able to select functions on
behalf of customers?
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Investigation of Minimum AMI
Functionality Standards (Continued)
– Should functionality standards and criteria on AMI
deployment approaches, technologies and functions
be prescribed?
– To what extent should standard protocols produced
by advanced meter output be prescribed?
– Should the Commission establish minimum
functionality for the recovery of AMI investment by
utilities?
– Has open architecture been successfully
implemented elsewhere? If guidelines are
prescribed, what should they say?
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Investigation of Minimum AMI
Functionality Standards (Continued)
– Should guidelines to deal with information
transmission and storage issues be
prescribed?
– Should it require a pilot project or gradual
deployment of advanced meters, in
recognition of the volume of information that
the market participants will have available
from advanced meters?
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AMI Case
• Commission’s Own Motion, Case No. U-15620
• Investigate development of minimum
functionality standards and criteria for advanced
metering infrastructure
• Public comments due August 1, 2008
• Staff shall summarize findings and file a report to
the Commission by August 29, 2008
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Questions?
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