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February 22, 2010
Brattle Principal Ahmad Faruqui Quoted in The Wall Street Journal on the Implementation of Smart Meters

Dr. Ahmad Faruqui, a principal in The Brattle Group’s San Francisco, CA office, was quoted in an article in The Wall Street Journal on February 22, 2010. The article, “What Utilities Have Learned From Smart-Meter Tests...And why they aren't putting those lessons to use,” discusses how although utilities have learned much about how smart meters can help consumer save energy, they aren’t putting this knowledge to good use. Utilities have run pilot tests that confirm that people cut power consumption when faced with higher peak-hour rates, but they have been reluctant to implement rate plans that penalize consumers for too much energy usage, fearing that higher bills will stall the implementation of smart meters. Instead, many utilities are offering rebates to customers who conserve energy during peak times of the day, a less controversial but less effective approach. In the article, Dr. Faruqui, who has designed and evaluated dozens of pilots around the country involving smart meters and pricing, said that to date 16,000 to 18,000 people have participated in five dozen pilot tests, and while it can be disheartening to see utilities ignore the findings, he understands why they want to move slowly until people become accustomed to smart meter technology. For more information, please visit The Wall Street Journal website.