problem areas before power is lost, to restore service outages more quickly and efficiently,
enhance Pepco s ability to serve and communicate with its customers.The Company does not support opt out from smart meter deployment. Smart meters arean essential element
Pepco's overall Smart Grid strategy. As will be discussed in more detailbelow, allowing customers to opt out would eliminate many
AMI system for those customers and could adversely affect the way the system performs for thecustomers who have smart meters and erode operating efficiencies for the Company. However,
the Commission ultimately decides to allow opt out, customers who make this election shouldpay the full incremental costs associated with requesting this non-standard service option. Pepcoaddresses below each
the specific issues identified in the Commission's Notice.
such an option on the overall smart meter project's costs andbenefits, including the effect
energy savings, outage detection,
management andincremental costs.
Establishing an opt out provision for smart metering will increase the cost
theCompany's AMI system and it may reduce the expected benefits in aggregate and for individualcustomers. Smart meters and AMI are the foundational element
the Smart Grid, and providethe platform necessary to optimize the grid integration
Demand Response, energyconservation, and renewable energy use.
Overall Smart Meter Project Cost
have an opt out program, the Company would incur the followingfixed cost: development
a system to track opt outs, IT system modifications, customereducation material development including new customer information package, increasedprogram management expense and increased staffing for customer contact. These costs areincurred regardless
customers that actually elect
opt out. Opt out customers