NATIONAL ASSOCIATION OF STATE UTILITY CONSUMER ADVOCATES

RESOLUTION 2011-08

URGING STATE AND FEDERAL OFFICIALS TO ADOPT LAWS AND REGULATIONS REQUIRING ELECTRIC UTILITIES TO PROTECT

THE PRIVACY RIGHTS OF CUSTOMERS

BY PROHIBITING UNAUTHORIZED DISCLOSURE OF PERSONAL INFORMATION, INCLUDING ENERGY USAGE DATA

Whereas, American common law, state and federal constitutions, legislative enactments and public opinion recognize the individual’s basic human right to privacy with respect to personal information; and

Whereas, the National Association of State Utility Consumer Advocates (“NASUCA”) has an earnest and long-standing interest in issues and policies that affect the privacy rights of utility consumers, including the right to control personal identifying information such as name, address, telephone number, account number, billing history and usage information; and

Whereas, new technologies, particularly grid modernization technologies, present scenarios in which a utility’s proposed disclosure to a third party of “smart meter” usage data, in conjunction with disclosure of personally identifying information such as name, address, telephone number, billing history and account number, would pose substantially increased risks to customer privacy and safety; and

Whereas, smart meter data, including real-time household energy usage data, can reveal how many people are present in a particular household, when people are present, activities that are occurring at a given time, what appliances are in use, the characteristics of the appliances being used, and the like; and

Whereas, the disclosure of such data, in conjunction with the disclosure of location or identifying information, would make energy customers more vulnerable to privacy invasions, criminal activity and other security risks; and

Whereas, NASUCA supports the development of effective privacy and security policies and the protection of such private information as essential components of cost-effective successful grid modernization technologies; and

Whereas, NASUCA supports cost-effective grid modernization technologies, provided they include effective consumer safeguards to protect privacy and prevent increased security risks to customers; and

Whereas, NASUCA supports effective privacy protections that will enhance customer confidence that utilities will refrain from unauthorized disclosure of personal information, including energy usage data and also supports effective remedies for unauthorized disclosures;

Now, therefore, be it resolved, that the following principles are essential to successful grid modernization, protection of private customer information, and public safety:

  1. Individual personal consumer information such as name, address, account number and energy usage, particularly customer-specific energy usage obtained through “smart meters,” must be protected from unauthorized disclosure;
  2. Privacy of such information should be the default; consumers should not have to take action in order to protect their privacy;
  3. Responsible state and federal officials, including state public utility commissions, should adopt rules requiring utilities and others to protect the privacy of customer information, including rules informing consumers of the nature and scope of any information that may be disclosed to others, to whom the information will be disclosed and the intended uses for such information by the recipients;
  4. Before requesting a customer’s consent to disclosure of customer information, a utility should be required to make a full disclosure to the customer of the nature and scope of the information proposed to be disclosed, the identity of the proposed recipient and the intended use of the information by the proposed recipient;
  5. Utilities must not disclose customer information, particularly customer-identified energy usage data, to any third party without the specific affirmative written consent of the consumer after receipt of complete information relevant to the disclosure and the intended uses of the information;
  6. Utilities must be required to limit their uses of personal customer information to those uses that are required for the provision of utility service, unless after full disclosure, the customer affirmatively consents to the use of the customer’s information for other purposes;
  7. Third parties whom the customer has authorized to have access to personal information, including customer-specific energy usage information, must be required to treat this information in a manner that protects the information and privacy rights of the consumer, and should be required to limit the use of such information for the specific purposes the customer authorized;

Be it further revolved, that NASUCA authorizes its Executive Committee to develop specific positions and to take appropriate actions consistent with the terms of this resolution.  The Executive Committee shall advise the membership of any proposed action prior to taking such action, if possible.  In any event, the Executive Committee shall notify the membership of any action taken pursuant to the resolution.

Submitted by Consumer Protection Committee

Approved November 15, 2011

St. Louis, Missouri

Abstention:  District of Columbia