Blog Post

Opower Lands Utilities PG&E, BG&E

Stay on Top of Enterprise Technology Trends

Get updates impacting your industry from our GigaOm Research Community
Join the Community!

Can Opower fix any of those pesky smart meter customer relation woes? The Arlington, Va.-based startup has two new utility customers, both of which have faced some hurdles with their smart meter deployments: California’s Pacific Gas & Electric, and Maryland’s Baltimore Gas & Electric.

The deal with PG&E isn’t exactly a surprise — we reported our hunch that OPower was working with PG&E back in November. But a Dow Jones VentureWire report this morning gave more details, including the fact that PG&E intended to roll out the Opower service to about 5 million electricity customers, most of whom now have the utility’s smart meters in place.

As for BG&E, the utility plans to eventually roll out Opower as the “front end solution” to the smart meters it’s giving to all 1.2 million of its residential and small business customers over time, the companies announced Thursday.

Both PG&E and BG&E have struggled with their smart meter deployments, though in different ways. PG&E, of course, has already installed nearly 8 million of the 10 million smart meters it has planned, but has faced complaints (from overcharging to the claim that wireless smart meters cause health problem) and an investigation showed PG&E failed to do adequate customer outreach. More recently, the utility has been ordered to offer an opt-out plan for customers who fear the radios inside the wireless smart meters are health risks.

BG&E has faced a different challenge in its $835 million, 1.2 million smart meter rollout. Last year, the Maryland Public Service Commission ordered the utility to take more of the cost burden of the smart meter rollout upon itself, rather than passing the rates through to customers, after declaring that BG&E’s plan didn’t make clear just how smart meters would drive down customer costs enough to justify the extra charges on their bills.

Opower should be able to help with both circumstances, since it doesn’t need smart meters to work with customers. Its main communications channel with customers is through mailed bill inserts that give energy information and tips on how to save energy, though it does also work through web sites, and is considering other in-home device options.

It sounds awfully old-fashioned compared to the smart meter-to-home networked energy dashboards, devices and automation platforms being pitched by startups and giants like GE (s GE) and Cisco (s CSCO). But Opower has gotten some of the most successful energy reduction results in the industry and says it can regularly drive 2 to 4 percent efficiency improvements, which has delivered more than 200 GW-hours in verified energy savings so far.

Investors and utilities seem to like Opower’s approach. The company has raised $65 million from investors including Kleiner Perkins, Accel Partners and New Enterprise Associates, and its customer list now stands at 55 utilities with about 10 million homes getting the startup’s service.

In the process, Opower has gotten its hands on a lot of meter data, whether from smart meters or “dumb” old-style electromechanical meters. Opower now has access to data from 43 million meters, and is doing about 56 billion meter reads a year, according to Om Malik’s latest report on the startup.

Opower’s Alex Laskey will be speaking with Control4 CEO Will West and myself at our third annual Green:Net event on April 21 in San Francisco. Silver Spring Networks will also be hosting a panel on smart energy communities featuring PG&E.

Image courtesy of Mark Florence via Creative Commons license.

2 Responses to “Opower Lands Utilities PG&E, BG&E”

  1. RobertWilliams


    And Insurance companies don’t sacrifice insurance premiums ($$$) for no reason.

    TV NEWS VIDEO – Insurance Companies Won’t Insure Wireless Device Health Risks (3 minutes, 13 seconds)

    2. WIRELESS SMART METERS TRANSMIT RADIATION APPROXIMATELY 25,000 TIMES PER DAY, 24/7, not 45 seconds per day as claimed by Utility Company.

    VIDEO – Radiation Measured From Smart Meter Mounted On A Home (6 minutes, 21 seconds)

    3. CELL DAMAGE, DNA BREAKS & BREACHES IN THE BLOOD-BRAIN BARRIER observed in laboratory tests from low levels of pulsed RF signal radiation as emitted by Wireless smart meters – reported by Top Wireless radiation scientists in the world at the Commonwealth Club in San Francisco Nov 18, 2010:
    VIDEO –

    2-page Press Release:

    …AND in the U.S. and UK and other countries where Wireless smart meters are being installed, energy use is NOT decreasing, customer UTILITY BILLS ARE INCREASING, there are additional PROBLEMS and COSTS incurred from increased SECURITY & HACKING PROBLEMS and the Wireless meters are creating ELECTRICAL INTERFERENCE PROBLEMS, motion detector device interference and even starting fires in homes.

    Wireless smart meters are NOT mandated by the US Federal Energy Program, but the utility companies are pretending that they are being forced by the Federal Government.

    But the Utility companies are salivating over eliminating the jobs of the full-time-with-benefit meter reader employees and replacing them with phone operators in India and the Philippines who read scripts to customers over the phone for $4 per day and NO Benefits.

    The monetary transfers from customers to utility companies are huge, the problems are real, but the advertised benefits are NOT occurring.