smart meters faq

7/29/2019 Smart Meters Faq

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FREQUENTLY ASKED QUESTIONS

1. Smart Meters and Ontarios Energy Plan

Why is Ontario introducing Smart Meters and Time-Of-Use Rates?

Why does our peak demand matter so much?

How will Smart Meters help?

2. Smart MetersThe Basics

What is a Smart Meter?

Why is it important to know when electricity is used?

Why would I want a Smart Meter? What are the benefits of Smart Meters forme?

Will I receive a Smart Meter if I am currently with, or moving to, a retailer?Will I pay Time-Of-Use Rates?

Will I be able to see the Time-Of-Use (TOU) Rates or my hourlyconsumption data on my meter?

Do Smart Meters need to be activated to work?Will I see a Smart Meter charge on my bill?

Are Smart Meters safe? What about RF emissions?

3. Time-Of-Use Pricing

What are Time-Of-Use (TOU) Rates?

What are the current TOU Prices for Smart Metering?

What holidays are designated for the purposes of Smart Metering?

When will I move to Time-of-Use Rates?

Will my electricity bill automatically go down once I have a Smart Meter and

Im on Time-Of-Use Rates?Will my electricity bill go up?

TOU sounds complicated?

Im a senior, disabled person, low-income, stay-at-home parent or a personreliant on medical equipment who is home during weekdays. Will I bedisadvantaged by TOU Prices because of the power I use during the day?

4. The Meter Data Management/Repository (MDM/R)

Where will all the Smart Meter data be stored?

Is my usage information secure and will it remain confidential?

5. Conservation Strategies and Energy-Saving Tips

How can I manage my electricity use and costs?


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6. Time-Of-Use Implementation

Why are different communities being switched to Time-Of-Use Rates monthsapart?

I dont think these rates will work in my favour. Do I have another option?


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1. Smart Meters and Ontarios Energy Plan.

Q. Why is Ontario Introducing Smart Meters and Time-of-Use Rates?

A. Ontario is introducing Smart Metersalong with a Time-of-Use ElectricityPrice Structure to help you manage your electricity costs, while helpingOntario to build a more efficient, more environmentally sound electricity

system. Heres more:

Between now and 2025, Ontario will replace about 80% of its electricitysystem. There are several ways to do that:

1. Building new generating facilities;2. Refurbishing current facilities (where that makes economic sense), and;3. Investing in conservation and energy management tools so that we require

less new electricity generating capacity.

Smart Meters measure hourly electricity use, so prices can be set based on

the time of day. That better matches the way prices work in the electricitymarket, and will encourage us to think more about how and when we useelectricity. As we move consumption away from the more expensive (peak)times of the day, we can help Ontario reduce its peak demand, which canhelp limit the building and operation of peak generating facilities.

Q. Why does our Peak Demand matter so much?

A. Supplying electricity at peak times (those times when were all using a lot ofelectricity) has a range of impacts:

1. It adds to our electricity costs because higher demand often means highermarket prices;

2. Its hard on the environment because more of the less attractive forms ofgeneration must be run to meet them.

3. It adds to the amount that Ontario needs to invest in the system becausemeeting the peaks means building even more new generating facilities, andmore transmission and distribution infrastructure and that also adds toelectricity costs.

Q. How will Smart Meters help?

A. Smart Meters plus Time-Of-Use Rates will provide you with aconsumption management tool. Smart metering can also help Ontario buildan efficient, cost-effective and more environmentally sound electricitysystem:

1. Smart metering can help reduce the total electricity capacity we need now,and the amount of new capacity we need to build for the future. SmartMeters provide you with a clear incentive to shift consumption away from thedaily peaks.


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2. Smart metering can help Ontario to reduce its environmental footprint. Byreducing our peak demand, well reduce our use of the less environmentallyattractive resources that are called on when demand is high.

3. A Smart Meter system will open up the opportunity for new kinds ofconservation and demand management programs and tools in the future. Inthe future Smart Meters could allow the introduction of different time-basedincentive programs, or the opportunity for you to control your energy usethrough energy management devices or smart appliances.

4. A Smart Meter system will provide comprehensive, detailed information forelectricity system planning. Smart Meter data will allow Ontario to identifywhere future generation, transmission and distribution investments arerequired.

2. Smart MetersThe Basics.

Q. What is a Smart Meter?

A. A Smart Meter is a meter that can record and automatically report electricityconsumption information. In Ontario, our Smart Meters will record electricity

consumption on an hourly basis, and, typically, report that information via awireless technology.

Conventional (our old electromechanical) meters only measure totalelectricity consumption from one reading to the next, and they have to beread manually in order to report that information.

Smart Meters measure how much electricity is used and when and willautomatically send that information to your utility, via wireless and othercommunication technologies.

With that information and an understanding that electricity prices can varythroughout the day you will have a new way to manage costs. You might,for example, choose to reduce your electricity use during the higher rateperiods (on and mid-peak) periods, and aim to shift some consumption tothe off-peak hours when rates are lower.

Q. Why is it important to know when electricity is used?

A. Knowing when electricity is used allows for the introduction of Time-Of-Use(TOU) Electricity Rates and that will give you a new way to manage andpotentially reduce costs.

Previously we had very little incentive to manage our electricity use becauseelectricity prices remained the same no matter what the time of day simplybecause the meters could not report when electricity was used.

TOU rates will vary over the day the highest rate will be in place duringtimes of peak demand (when we tend to use a lot of electricity) and thelowest rate during the off-peak periods. With TOU rates, your choices abouthow and when you use electricity can have a positive impact on your costs.


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Q. Why would I want a Smart Meter? What are the benefits of SmartMeters for me?

A. Here are two of the major new benefits that youll see as soon as Time-Of-Use Rates are in effect:

1. Youll be able to take new actions to manage your energy bill. With a Smart

Meter and Time-Of-Use Rates, youll be able to take advantage of two cost-cutting strategies. These include:

Reducing your electricity use during the higher rate (on-peak and mid-peak) periods; and

Shifting your electricity use to lower rate (off-peak) periods.2. Your electricity bills will reflect the readings taken by your Smart Meter over

the previous period. That means your bills will be as up-to-date as possible.

Q. I already use off-peak electricity, why do I need a Smart Meter?

A. With a Smart Meter and the implementation of TOU rates, you will pay less

for the electricity you consume during off-peak periods. Your local electricalutility will have the data consumption required to bill you at off-peak rates.

Q. Will I receive a Smart Meter if I am currently with, or moving to, aretailer? Will I pay TOU rates?

A. Yes, you will receive a Smart Meter. Your electricity rates, however, will bedetermined by the terms and conditions of the contract you choose to sign.

Q. Will I be able to see the Time-Of-Use (TOU) rates or my hourlyconsumption data on my meter?

A. No. TOU rates and consumption data do not appear on the meter. YourSmart Meter will show your current meter reading, just as your old meter did.The TOU rate periods and costs will also be on your bill for easy reference,along with your total consumption during each period over the billing period.

Q. Do Smart Meters need to be activated to work?

A. No. Once your new Smart Meter is installed, you dont need to take anyfurther specific steps for the meter to work.


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Q. Will I see a Smart Meter charge on my bill?

A. There will not be a specific Smart Meter line item on your bill. The cost of theSmart Meter Initiative will be recovered through the electricity distributionrates paid by all customers in the same way that costs for existing metersand services are recovered today.

Q. Are Smart Meters safe? What about RF emissions?

A. With regard to exposure to electromagnetic frequencies, the Ontariogovernment in partnership with local electricity distributors, has takensignificant efforts to ensure that Smart Meters will not only help householdsmanage their electricity consumption, but are also safe and reliable.

The government has established a regulation to outline the minimumstandards for the Smart Meter system also referred to as the AdvancedMetering Infrastructure (AMI). In this regulation, requirements have beenincluded to ensure safety laws are adhered to:

For greater certainty, the AMI shall meet all applicable Laws that arenecessary for the measurement of data and/or the transmission of data toand from the consumers within the Province of Ontario, including Lawsapplicable to metering, safety and telecommunications.

As such, Smart Meters are well within the safety guidelines for exposure toradio frequencies established by Health Canada. These safety guidelinesare outlined in Limits of Human Exposure to Radiofrequency ElectromagneticFields in the Frequency Range from 3 KHZ to 300 GHZ, also known asSafety Code 6.

For more information about Safety Code 6, you may contact the Consumerand Clinical Radiation Protection Bureau, Health Canada, 775 BrookfieldRoad, Ottawa ON K1A 1C1, telephone (613) 954-6699.

If you have access to the Internet, Industry Canada has compiled answers tofrequently asked questions about radio frequency fields, which you may viewat the following link:www.ic.gc.ca/epic/site/smt-gst.nsf/en/sf08792e.html

3. TIME-OF-USE RATES (TOU)

Q. What are Time-Of-Use (TOU) Rates?

A. TOU Rates vary over the day better reflecting the way electricity priceswork in the electricity market. Depending on our demand and the availabilityof supply, electricity market prices rise and fall over the day and tend to dropovernight. Thats why TOU rates vary depending on the time of day, theday of week (week or weekend, and holidays) and the season summer orwinter.
http://www.ic.gc.ca/epic/site/smt-gst.nsf/en/sf08792e.htmlhttp://www.ic.gc.ca/epic/site/smt-gst.nsf/en/sf08792e.htmlhttp://www.ic.gc.ca/epic/site/smt-gst.nsf/en/sf08792e.html


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With rates that vary, well all have an incentive to shift and/or reduceelectricity consumption at times of peak demand. Here are the three TOUperiods:

On Peak the cost of energy and demand are highest

Mid-Peak the cost of energy and demand are moderate.

Off-Peak the cost of energy and demand are lowest.

Q. What are the current TOU Prices for smart metering?

A. In Ontario, the Ontario Energy Board (OEB) is responsible for setting ourelectricity commodity prices including Time-Of-Use Rates for smart meters.Heres what the current periods look like:

Summer (May 1s to October 31s )

Day of

Week

Time Period

Weekdays 7:00 am to 11:00 am Mid-Peak

11:00 am to 5:00 pm On-Peak

5:00 pm to 7:00 pm Mid-Peak

7:00 pm to 7:00 am Off-Peak

Weekends Sat. 7 am to Monday 7 am Off-Peak

Winter (November 1s to April 30 )

Day ofWeek

Time Period

Weekdays 7:00 am to 11:00 am On-Peak

11:00 am to 5:00 pm Mid-Peak

5:00 pm to 7:00 pm On-Peak

7:00 pm to 7:00 am Off-Peak

Weekends Sat. 7 am to Monday 7 am Off-Peak

*The most current rates for these time periods can be found on our websiteunder Customer Care and then Rates.

Q. What holidays are designated for the purposes of smart metering?

A. The days considered holidays and so days when off-peak rates apply arefor the most part statutory holidays when a majority of Ontarians are absentfrom work. Thats because on those days demand for electricity is muchlower than a normal weekday. That is also why Easter Monday andRemembrance Day do not qualify for off-peak pricing. A list of holidays for2012 is provided on the chart below.


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2012 Holiday Schedule for Smart Meter (Time-of-Use) Prices

Holiday Date Actual Day Day for Off-PeakTOU Pricing

New Years Day January 1 Sunday Monday Jan 2

Family Day February 20 Monday Same

Good Friday April 6 Friday Same

Victoria Day May 21 Monday SameCanada Day July 1 Sunday Monday July 2

Civic Holiday August 6 Monday Same

Labour Day September 3 Monday Same

Thanksgiving Day October 8 Monday Same

Christmas Day December 25 Tuesday Same

Boxing Day December 26 Wednesday Same

Q. When will I move to Time-Of-Use Rates?

A. You will be notified by mail approximately two-weeks prior to receiving yourfirst Time-Of-Use bill.

Q. Will my electricity bill automatically go down once I have a SmartMeterand Im on Time-Of-Use Rates?

A. Not automatically. What Time-Of-Use Rates do is provide you with a newway to think about and manage electricity costs. Under TOU, there will bedifferent rates for the electricity you use during the on-peak, mid-peak andoff-peak hours. So, it will make sense to aim, for example, to scheduleenergy-intensive activities to the off-peaks (after 7 pm during the week, allweekends and on holidays).

Q. Will my electricity bill go up?

A. That will depend, in part, on you. Once you are billed on a Time-Of-Usebasis, depending how and when you use electricity, you may pay a bit moreor less or see very little difference. With Smart Meters, those who work toconserve and shift their usage to off-peak, weekends or holidays may benefitthe most. Currently those customers see no price advantage no matter whattime of the day they use power.

Q. TOU sounds complicated?

A. Its true that, at first, youll need to be more aware of how and when you useenergy, but over time, it will simply become a habit. Smart metering will giveyou a tool and better information to help you make informed decisions aboutyour electricity usage. With this information in hand, youll be able to developthe best strategies for you.


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Q. Im a senior, disabled person, low-income, stay-at-home parent or aperson reliant on medical equipment who is home during weekdays.Will I be disadvantaged by TOU Prices because of the power I useduring the day?

A. Time-Of-Use prices have not been designed to penalize consumers who forwhatever reason have difficulty shifting consumption.

Testing and piloting under Time-Of-Use Pricing to date has shown that formost customers, if they do not change their consumption patterns, then theywill pay about the same price for electricity that they did under the currenttiered pricing model.

This is due in part to the fact that there are many more off-peak hours thanthere are on-peak in a given week (all hours of the weekend are off-peak). Inthe summer for instance, for every hour of the week that your fridge isrunning on-peak, there are more off-peak hours when youre payingsignificantly less than the current tiered rates.

Key message: Remember too that there are almost 65% more off-peakhours in the week than there are mid-peak hours.

In this way, the Time-Of-Use Prices tend to off-set one another so thatcustomers are not penalized by this rate but are still given incentives toreduce or shift some of their discretionary consumption if they are able.

Regarding electric heat: Similarly, in winter months, electric heaters run 24hours a day. In fact to the extent night-time temperatures are often colderthan during the day, there may even be some small advantage for electricheat consumers because heaters may run more frequently in the off-peak

evening.

4. THE METER DATA MANAGEMENT/REPOSITORY (MDM/R)

Q. Where will all the Smart Meter data be stored?

A. An independent central meter data repository has been developed to storeand process the hourly consumer consumption data transmitted daily byeach of Ontarios Local Distribution Companies (LDCs). There are currentlymore than 90 LDCs in the province.

Q. Is my usage information secure and will it remain confidential?

A. Yes. Ontarios electricity distribution companies are required, by law, toensure that the Smart Meters and communication networks that are put intoplace are equipped with security features to prevent unauthorized access.They must also comply with federal laws regarding the privacy, protectionand disclosure of personal information. Any data that is sent to the centraldata repository will be provided in such a way as to prevent identification ofany individual customer.


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5. CONSERVATION STRATEGIES AND ENERGY-SAVING TIPS

Q. How can I manage my electricity use and costs?

A. There are lots of simple things that we can do to save electricity and reduceelectricity costs. Your best strategy might combine some or all of thefollowing:

1. Shift some electricity use to off-peak periods. Under TOU rates, shiftingactivities that are energy-intensive to the lower rate mid-peak and off-peakhours will be to your advantage.

2. Reduce electricity use across all periods of the day. Conservation alwaysmakes good sense. This includes activities like turning off lights andequipment that are not in use, and turning your air conditioner up a fewdegrees.

3. Ensure youre not paying for nothing. Many electronic items including, forexample, computers, TVs and cell phone chargersarent fully off unlessyou pull the plug, so try to plug them into a power bar that you can turn off.

4. Opt for energy-efficient products, wherever you can. Energy Star appliancesand compact fluorescent light bulbs (CFLs) use less power, reducing bothyour electricity consumption and your costs.

5. Take advantage of conservation promotions. Many utilities, and the OntarioPower Authority (OPA), are creating programs that can help you conserve.Call your local utility.

6. TIME-OF-USE RATE IMPLEMENTATION

Q. Why are different communities being switched to Time-Of-Use Ratesmonths apart?

A. Each utility decides when it is able to start switching its customers to Time-Of-Use Rates. This depends on when they think they have enough metersinstalled to offer Time-Of-Use Rates, and when they have sufficiently testedthe meter reading and data systems to ensure accurate customer billing.

Ontarios electricity commodity rates are set by the Ontario Energy Board tobe fair to customers using either TOU or the older two-tiered electricityprices.

Q. I dont think these rates will work in my favour. Do I have another

option?

A. Time-Of-Use Rates will fully replace the two-tiered rate system that Ontarioutilities have been using for their residential and small business customers.

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