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1 Insert Cover Page Karen Made. 2 Why is Privacy an Issue with Smart Grid?  Smart Grid presents new privacy threats through its enhanced collection and.

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Presentation on theme: "1 Insert Cover Page Karen Made. 2 Why is Privacy an Issue with Smart Grid?  Smart Grid presents new privacy threats through its enhanced collection and."— Presentation transcript:

1 1 Insert Cover Page Karen Made

2 2 Why is Privacy an Issue with Smart Grid?  Smart Grid presents new privacy threats through its enhanced collection and transmission of more detailed energy usage data than traditionally collected.  Privacy concerns exist wherever personal identifiable information is collected and stored.  Data wants to be free – once information is released, it is practically impossible to retract. The Voice of Consumers, Making a Difference!

3 3 How Data Changes with Smart Grid  Quantity and type of data: ►Data from smart meters is highly granular.  In California, data collection increments range between 15 minutes to 1 hour. ►Entirely new types of revealing data is collected:  Identifiable appliances.  Location information of plug-in electric vehicles.  Temperature inside the home.  Data flow shifting away from traditional consumer-to-utility relationship.  Patchwork of existing laws doesn’t cover a Smart Grid environment.  Must find a balanced solution that allows data to flow and be used, but also protects customer privacy. The Voice of Consumers, Making a Difference!

4 4 Highlights – Data Usage  Data may have important uses for energy conservation, for those customers with the ability to load shift.  Data has possible value to utility business enterprises.  Data can also be compiled for various discriminatory, anti-competitive, and/or illegal uses.  Privacy protections have been circumvented by user error, disgruntled employees, and hackers. The Voice of Consumers, Making a Difference!

5 5 Privacy Concerns Regarding Data Usage  Customer energy usage data may disclose intimate personal details related to: ►Customer’s presence in, or absence from, the home. ►Purchasing preferences. ►Health. ►Co-habitation arrangements. The Voice of Consumers, Making a Difference!

6 6 Examples of Private Information Revealed by Energy Usage Data  Scant energy usage may allow third parties, and potentially criminals, to determine which homes are empty.  Hackers have used poorly secured networks to: ►Pass their utility charges to other customers. ►Disconnect customers from the grid. ►Steal customer identification information. The Voice of Consumers, Making a Difference!

7 7 Examples of Private Information Revealed by Energy Usage Data  Law enforcement agencies in Texas have mined thousands of customers’ energy usage information – without their consent – to identify and target potential marijuana operations, raising Fourth Amendment concerns.  Landlords may be able to determine how many people live in a home, perhaps in violation of a leasing agreement.  Disclosure of occupant’s prescription data to third parties: ►In-home devices may allow two-way communication and facilitate the reading of Radio Frequency Identification (RFID) tags.  If data is stored at the meter, and it is not de-energized when one tenant leaves, the next tenant could have access to that data. The Voice of Consumers, Making a Difference!

8 8 Examples of Privacy Concerns About Energy Usage Data Collection  There is a greater risk of compromising customer privacy if data leaves the home to be processed.  Data sent over wireless devices is easily intercepted by drive-by data collectors and must be securely encrypted to prevent interception. ►All smart meters have home area network (HAN) functionality. ►Once activated, they enable wireless transmission of data with consequent risks.  Entities with access to usage data may gain a competitive edge over other market players.  If unregulated third parties obtain customer data, they may: ►Sell the data. ►Use it for advertising purposes. ►Barrage customers with unwanted or even nefarious advertisements and promotions. The Voice of Consumers, Making a Difference!

9 9 Fair Information Practice Principles (FIPPs)  Transparency – Provide clear, meaningful notice about collection, uses, and disclosure.  Individual Participation – Consent to collect, use, and/or disclose data, required any time changes are made, and revocable at any time.  Purpose Specification – Articulate specific purpose(s) for which data will be used.  Data Minimization – Collect only data necessary to fulfill specific purpose(s) and keep only as long as needed.  Use Limitation – Use data only for specified purpose(s).  Data Quality and Integrity – Ensure data is accurate, relevant, timely, and complete and provide tools to correct mistakes or challenge errors.  Data Security – Must protect customer data with appropriate security safeguards.  Accountability and Auditing – Must comply, audit for compliance, and provide employee and contractor training. The Voice of Consumers, Making a Difference!

10 10 Privacy and Smart Grid in California  The California Public Utilities Commission (CPUC) opened a Rulemaking to consider and evaluate policies related to Smart Grid in December 2008 (R ).  In December 2009, the CPUC adopted a decision that set as policy objectives: ►Ensure all information is secure and a customer’s privacy is protected. ►Require that utilities have operations in place by the end of 2010 allowing customers to access their information through an agreement with a third party (delayed).  In June 2010, the CPUC adopted a decision that established FIPPs as the appropriate framework for privacy rules, with those rules to be determined later.  California was the first state to pass a bill directly related to energy usage data: ►Senate Bill 1476 (Padilla) was passed and codified as Public Utilities Code Section 8380 (December 2010). ►While being touted as a “landmark privacy bill,” it does little to protect consumers and does not adequately address data sharing with third parties. The Voice of Consumers, Making a Difference!

11 11 Current Status of Privacy Rules for Smart Grid in California  Center for Democracy and Technology and the Electronic Frontier Foundation developed a very specific set of polices and procedures that translated FIPPs into practical and useable rules: ►Submitted to the CPUC in October  DRA provided input to the proposed rules and supported them with a couple amendments: ►Limit appropriate uses of data to those purposes specifically related to fulfilling energy policy goals and operational needs. ►The rules should follow the data, regardless of what entity accesses the data.  The CPUC issued a proposed decision adopting privacy rules for California's three large investor owned utilities on May 6, ►Parties will submit comments on that proposed decision on May 26, The Voice of Consumers, Making a Difference!

12 12 Thank You Contact Information: Karin Hieta Smart Grid Project Lead (415) California Public Utilities Commission Division of Ratepayer Advocates Fourth Floor 505 Van Ness Avenue San Francisco, CA The Voice of Consumers, Making a Difference!


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