One of the biggest challenges facing the deployment of smart grids is inadequate consumer education, which is in some cases is worsened by "over-hyping" the benefits of the smart grid. This general consensus came from UTC Smart Grid Policy Summit, a two-day conference held this week in Washington, DC that featured panel discussions with key policy makers, regulators, utilities and industry associations. While the panels debated issues such as the role of state vs. federal regulators in setting smart grid policy and the pressures of cost-recovery, many of the panels often returned to the need for consumer awareness and trust. Opening Keynote Speaker, Joe Rigby, CEO and Chairman of PEPCO, addressed this concern by discussing his utility's successful pilot programs that were implemented in collaboration with state regulators and consumer groups and showed that consumers do respond positively to dynamic pricing. However, he did note that duplicating the results of a pilot in a larger territory roll-out was not easy.

A panel comprised of policy leaders from the Federal Communications Commission, the National Association of Regulatory Utility Commissioners, the Federal Energy Regulatory Commission and the Department of Energy agreed that when it came to consumer-education, self-education was the most effective way to reach that goal. Furthermore, all stakeholders are responsible for clarifying what problems are solved by the smart grid, and working together to present that case to consumers. The D.C. Public Service Commission's Chairwoman Betty Ann Kane further noted that over-hyping the dramatic benefits of the smart grid is what is leading to retaliatory backlashes in places like Marin County, CA. She gave the example of a D.C. municipal utility that started its smart grid roll-out about five years ago without any hype or publicity and kept regular rate-payment systems did not receive any opposition. When customers gradually learned about the change, there were no strong concerns like what is being seen in some parts of the country now.

The panel on Consumer Acceptance addressed the question of whether utilities or states should be allowing states to opt-out of smart meter programs. GridWise Alliance's Rob Wihilite expressed concern that allowing consumers to opt-out sets a dangerous precedent in that it would problematic if customers chose to opt-out of every capital expenditure or upgrade that utilities invest in. Chairwoman Kane reminded the panel to not be quick to pre-judge consumers' reasons to opt-out but also pointed out that consumers need to realize this not a choice; it’s part of the service. EnerNex's Erich Gunther gave an example of the paradigm shift that came with rural electrification where many consumers were hesitant to sign up because they were concerned that "electricity could kill people". Thus, utilities, with the support of their regulators, need to work on building a consumer base and get their acceptance before rolling out sweeping changes.