State Approves PG&E;’s Plan to Upgrade Meters

California regulators approved a plan by Pacific Gas & Electric Co. to equip its 9.3 million customers with “smart meters” that could help conserve power in peak demand periods.

The high-tech equipment, to be added to existing meters over the next five years under a $1.7-billon plan, will enable Pacific Gas, a subsidiary of San Francisco-based PG&E; Corp., to offer “time-of-use” pricing to residential customers who volunteer to shift energy use to off-peak hours in the morning or evening in return for lower rates.

PG&E; will be able to more quickly identify power outages and dispatch crews to make repairs and restore service, and it will not have to estimate bills when meter readers cannot get access to a customer’s meter.

California Public Utilities Commission President Michael Peevey said the new meters could help reduce electricity demand by 448 megawatts, equivalent to the output of one medium-sized generating plant.