Smart Meters for Smart Consumers (Or Not); Some Silly Stuff with Serious Potential

By R. Bruce Wright, CPCU

The first time I heard it I laughed. The second time I heard it I cried. The third time it was in a claims file, and I am now reasonably sure the end of the world is nigh.

It cannot be denied, since it is now beyond any argument, that a select group of consumers out there, describe them as you will, believe that your Smart Meters are spying on them, irradiating them, and stealing personal information from their computers. If only this was a joke someone made up; unfortunately, it is not.

Yes folks, consumers sign up for social networks that comb through their email address books, they use Google for Web searches while it tracks every site they visit to sell the information on to advertisers, but then these people turn around and claim that your meters are prying into their lives. One lady said that she suffered radiation burns over 60% of her body due to the Smart Meter installed on her home. When it was pointed out that the meter had not yet been activated, she was forced to turn her claim’s sights on the owners of the nearby cellular tower. Another claimant alleged that he was being bombarded by RF radiation from the Smart Meter that was broadcasting his usage information. Fortunately for his mental health, if not for his claim, his meter was transmitting via the power lines.

We even have had allegations presented by people who think the meters are stealing information from their PCs, although how is unclear. Perhaps they believe the meter is accessing their local home wireless networks, or using Bluetooth. Others believe that the meters are collecting private and personal data on them, such as when they use their toasters, or dishwashers, or personal massagers. They seem to think these meters are smarter than SciFi robots!

Okay, you can now stop laughing. Here’s the sad truth. Anyone can sue anyone for anything, for only the cost of the filing fee. They may not win, but they can make life difficult for a while. Here’s the rub- if they claim bodily injury or property damage, liability insurance will likely step up to defend you, no matter how crazy the claim. But if the suit doesn’t make such a claim, and instead (for example) says that your meter is making them think weird thoughts, it’s going to be hard to find coverage.

So what can you do to protect yourself from the impact of claims from this type of person? Most of all, document, document, document. Throttle back your immediate reaction, respond to such claims politely, calmly, and with clear, logical facts. Then make sure you keep records of every such contact, every response, and every investigation you make. If you prepare from the start to defend each case of this type, you will increase the odds of getting a directed verdict or dismissal.

One other practical step you can take is to include a requirement in your supplier contracts that your vendors provide you with a standard insurance endorsement called “Additional Insured-Vendors” that will provide you with access to coverage under the suppliers insurance coverage for liability arising out of claims against products that they supply to you.

The purpose of this article is to share ideas, management concepts, and information which may be of interest to rural electric utilities companies. The ideas and concepts contained in these articles come from various sources and authors and are, therefore, individual opinions and/or conclusions, and should be viewed by the reader as such. Any information provided by the editors and companies responsible for these articles is believed to be accurate at the time of publication. The editors, contributors, and companies who collaborate to produce these articles assume no liability or other responsibility for the accuracy of the information or the results (or lack of results) which may be experienced by the readers in applying or using any ideas or opinions contained in the article.