Many strides have been made since we last reviewed advanced electric metering in this column in 2001. The concept of "demand response" using such meters (wherein a power user reduces his load when called upon to do so by a utility or grid operator) is being accepted as an adjunct to the permanent demand reductions common under demand-side management.
Amidst the fallout from the California power debacle is an expanded understanding of the need to make power loads responsive to power pricing and grid reliability. In its 2001 report to the California state legislature, the California Energy Commission indicated that: "Electricity and other markets function efficiently only when customers have access to timely price information and the capability to adjust their purchases accordingly....Providing customers with the necessary price information and demand response tools will moderate excessive price increases and improve system reliability...."