How Should Customer Electricity Data Be Shared in Maryland?
April 10, 2017
Maryland is in the midst of a process to determine how all types of electricity customer data are shared, a process that could be critically important to the success of competitive electricity markets and consumer choice for that state. Interested parties should consider participating in the process of establishing the key elements of comprehensive data sharing procedures.
On January 31, 2017, the Maryland Public Service Commission (“MDPSC”) issued a Notice in Case No. PC44 – In the Matter of Transforming Maryland’s Electric Distribution Systems To Ensure That Electric Service Is Customer-Centered, Affordable, Reliable and Environmentally Sustainable in Maryland (“Notice”). The MDPSC provided some guiding principles for the future of Maryland’s electric distribution systems in the Notice, based, in part, upon the feedback from a public hearing that was held on December 8-9, 2016.
The MDPSC concluded that a key element in achieving the goals in the proceeding was to ensure “competitive markets and customer choice.” In the Notice, the MDPSC explained that a customer data sharing policy was needed, as follows:
[E]nhancing competitive markets and customer choice may be key components of modernizing Maryland’s electric distribution systems. Markets and choice can help ensure that Marylanders are receiving the services they desire at an affordable cost. One critical component to achieving this is to ensure that the market has appropriate access to data. (Notice at p. 10) (Emphasis added).
The Notice concluded that Maryland should develop customer data sharing procedures which will consider the following possible actions: (1) developing a statewide standard data sharing format for implementation by utilities that have deployed AMI; and (2) considering changes to retail choice that will create a more competitive, transparent and customer-friendly market in Maryland. The Notice also recognized the link between data sharing and effective competitive markets by concluding that “[n]ow is the right time to reexamine certain aspects of Maryland’s retail choice market, particularly those administrative or process burdens (not related to consumer protection) that discourage customers from selecting a retail supplier.” (Id.)
A Maryland Grid Modernization working group was established to address competitive markets and particularly third-party access to meter data. To date, the structure within which the State will allow “unregulated” third parties to access meter data has yet to gain much clarity. A basic principle that should be incorporated in any policy is recognition that customer data, particularly from smart meters, fundamentally belongs to the customer. Customers, therefore, should be able to share data with third parties as easily as is safely possible. The MDPSC policies should recognize that cybersecurity is a threat that must be taken seriously. Cybersecurity, however, should not be used as a deterrent to providing customers, and appropriate third parties, with reasonable, convenient access to such data. Of course, customer privacy is a key concern; but protocols can be established which assure that data is accessible while also protecting the privacy of individual customer data.
Some of the items that should be considered for inclusion in a data access policy would include procedures for standardization of:
- Data content, format, transmission protocol (for example, usage data, billing data, etc.)
- Third party eligibility criteria (such as those criteria that have been developed in California)
- Contractual terms between third parties and utilities that would set boundaries for access and use of data and breach. This could include, for example, authorization language regarding: (i) the length of authorization (1-yr, 2-yr, unlimited term); (ii) the purpose specification (the allowed uses of your energy data, defined by the third party); (iii) the prohibited uses (if any); and (iv) other terms (for example, the customer should not call the utility for help with your third party, utility waiver of liability as between utility and the customer, etc.)
- Standardization of the data authorization process
- Standardization of the data revocation process
- Standardization of the data enforcement process
- Quality of service matters
The next public workshop to discuss customer data sharing will be held on April 13, 2017 in the offices of the MDPSC. Interested parties should plan to actively participate in helping to create the essential elements of an effective customer data sharing program in Maryland.
This Eckert Seamans Energy Blog is intended to keep readers current on matters affecting businesses and is not intended to be legal advice. If you have any questions, please contact Charlie Zdebski at (202) 659-6605 – czdebski@eckertseamans.com; or Dan Clearfield at (717) 237-7173 –mailto:dclearfield@eckertseamans.com.