Smart meters will allow the electric companies to charge more for electricity during peak usage. About 5% of PG&Es Large corporate customers have volunteered for the program. This may help prevent blackouts, and they are saying residents will be able to choose. California tends to be a trend setter for technology like this.

Even if businesses are forced to use the smart meters, home users seem likely to have a choice. PG&E and other energy providers favor making the flexible pricing optional, and say they believe they can line up enough power to avoid blackouts in Northern California for the next four years. The utilities do, however, want the smart meters installed at every home, and hope regulators will approve a rate increase in July to pay for installation starting in the fall. PG&E said the project would cost about $1.6 billion over several years, adding about 69 cents per month to household bills.

The meters would transmit the data through either phone or power lines to PG&E. Customers would be able to go online the next day and monitor their energy consumption. In many cases, energy experts say the pricing system used in conjunction with the meters could lower household electricity bills by helping them shift their use to times when power costs less. Those who can't adjust during high-rate hours would see higher bills.