SMARTER Act: No More Smart Grid Costs on Your Electric Bill, Starting Now

The "Stop Misappropriating Ratepayer Tariffs for Excessive Resources Act" (SMARTER Act) just dropped, and it's all about keeping your electric bill from going up because of new smart grid tech. Basically, this bill says electric companies can't charge you for the costs of deploying smart grid systems.

No More Charges

The core of the SMARTER Act is pretty straightforward: it stops utilities from adding smart grid deployment costs to your monthly bill. The bill repeals a section of the Public Utility Regulatory Policies Act of 1978 (Section 111(d)(21) to be exact), which previously dealt with how these costs could be recovered. Now, utilities are directly prohibited from passing these costs on to consumers (SEC. 2).

For example, if a utility installs new smart meters or other grid modernization tech, they can't tack that expense onto your bill. This could mean lower bills, or at least, prevent them from rising due to these specific upgrades.

State-by-State Rollout

States have to get on board with this, but there's a timeline. State regulatory authorities (or nonregulated utilities) have one year from the bill's enactment to consider this new standard. They then have two years to actually make a decision on it (SEC. 2). So, we're looking at a potential three-year window for full implementation, depending on where you live.

However, if your state has already looked at this issue or voted on it in the past three years, they're off the hook. They don't have to redo their process (SEC. 2). This could mean a patchwork of rules across the country, at least initially.

Real-World Impact and Potential Challenges

This is where things get interesting. On one hand, the SMARTER Act could save you money. No more hidden fees for grid upgrades.

On the other hand, utilities might be less eager to invest in smart grid tech if they can't recover the costs. Think of it like this: if a restaurant can't charge for renovations, they might be less likely to upgrade their kitchen. This could slow down the modernization of the electric grid, which some argue is needed for reliability and integrating renewable energy.

Another challenge is the state-by-state approach. If some states are exempt, you might see different levels of smart grid adoption and different bill impacts depending on where you live. This could create inconsistencies, especially for people who move or for companies operating in multiple states.

Finally, the bill clarifies some legal language about when prior proceedings related to smart grid costs took place. This basically ensures that everyone's playing by the same rules, even if they started looking at this issue before the SMARTER Act became law (SEC. 2). It's a bit of legal housekeeping, but it matters for consistency.