“What the record sadly lacks is a discussion of competing considerations regarding the program or the necessity of the program and its costs as related to any net benefit to customers.”
~ Michigan Attorney General Bill Schuette

Warren Woodward

55 Ross Circle

Sedona, Arizona 86336

928 204 6434

April 20, 2013

Arizona Corporation Commission (ACC)

Docket Control Center

1200 West Washington Street

Phoenix, Arizona 85007

Re: Docket # E-00000C-11-0328

Commissioners;

           In addition to both the Attorneys General of Illinois and Connecticut, the Attorney General of Michigan has also issued a statement calling into question the efficacy of “smart” meters and the “smart” grid.

           Salient excerpts:

·         “A net economic benefit to electric utility ratepayers from ... smart meter programs has yet to be established.”

·         “Any assumption that large numbers of residential customers will have the time, ability and motivation to attend to, and act upon daily or even hourly changes in their electrical is questionable.”

·         “What the record sadly lacks is a discussion of competing considerations regarding the program or the necessity of the program and its costs as related to any net benefit to customers.” [italics in original]

           The Michigan Attorney General's statement (enclosed and available online here: http://efile.mpsc.state.mi.us/efile/docs/17000/0408.pdf) reinforces what I have said repeatedly: the only benefit of the “smart” grid is to utilities, not ratepayers. Utilities are gaming the system through their 8 to 10% guaranteed rate of return on so-called “capital investments”.

           Of course another part of the scam is the proven over-billing of “smart” meters. California's KION/FOX35 TV did a three month side-by-side comparison of a “smart” meter and a calibrated mechanical analog meter. After three months the “smart” meter showed an extra 37 kilowatt hours. The test is consistent with anecdotal over-billing reports I receive from Arizonans. Do the math. I calculate a similar rip-off in Arizona would net APS over $20 million more per year. (“PG&E Smart Meter Side By Side Test Final Results” – http://www.kionrightnow.com/Global/story.asp?S=14016659)

           What a miserable pity for Arizona ratepayers that the ACC never followed through on its 2007 decision that called for the costs and benefits of the “smart” grid to be considered. Indeed, “What the record sadly lacks is a discussion of competing considerations regarding the program or the necessity of the program and its costs as related to any net benefit to customers.”

           When will it be admitted that the ACC made a colossal mistake by allowing the utilities to install “smart” meters without any regulatory oversight or examination? How much more ratepayer money will be wasted on this utility scam, while the already bloated salaries of APS executives are set to double and triple? (“APS offering executives potential bonuses for 2013” - http://www.bizjournals.com/phoenix/news/2012/12/28/aps-offering-executives-potential.html?ana=yfcpc)

Sincerely,

 Warren Woodward

Cc: Governor Jan Brewer, Attorney General Tom Horne