Smart Meter Data Privacy Act

Full Title:
Smart Meter Data Privacy Protection Act

Summary#

This bill limits how certain state-regulated electric utilities may use data collected by smart meters. It prohibits using, licensing, selling, or otherwise monetizing a customer’s personal consumption data except for specified operational reasons. The bill requires each covered utility to file an annual report with the Federal Trade Commission (FTC) listing what smart meter data it collected, how it used that data, and with whom it shared the data. If the FTC finds a utility used personal consumption data in violation of the rule, the utility must credit the affected customer’s bill an amount equal to three times the revenue tied to that improper use. Utilities may not recover those credit costs from customers. The FTC enforces the rule under its unfair or deceptive acts authority and will set reasonable data security and retention standards for permitted uses. The law creates a federal baseline but does not stop States from keeping stronger protections. The bill defines key terms, including authorized operational purposes (billing, outage management, grid reliability, regulatory compliance, and consumer-authorized demand response), covered utility, electric consumer, personal consumption data, and smart meter.

What it means for you#

  • If your home or business is served by a covered utility, your smart meter data generally cannot be sold or monetized by that utility unless it is used for billing, outage response, grid reliability, regulatory compliance, or a demand-response program you authorize.
  • Utilities must report annually to the FTC about the smart meter data they collect and share.
  • If the FTC finds a violation, you could receive a bill credit equal to three times the revenue the utility got from the improper use.
  • State attorneys general can bring cases on behalf of residents, and the FTC can intervene in those cases.

Expenses#

  • No publicly available information on overall federal costs or savings.
  • The bill requires covered utilities to provide bill credits equal to three times the revenue from improper data uses and prohibits utilities from charging customers for those credits.
  • Utilities will need to prepare annual reports to the FTC and meet FTC security and data-retention standards, which could involve compliance costs.

Proponents' View#

The bill limits commercialization of smart meter data, increases transparency through annual FTC reporting, creates a financial remedy for improper use of data, and directs the FTC to set security and retention standards. These provisions are framed as protections for consumers’ smart meter information.

Opponents' View#

No publicly available information.