I love my electricity company's app – but the FBI says the nuclear industry bribed politicians $60m to kill it
- Reference: 1601492917
- News link: https://www.theregister.co.uk/2020/09/30/ohio_energy_saving/
- Source link:
“I do not use it all the time,” he told us, “but if I have questions about my usage I can go back and see what happened and try to figure out what I was doing to run my bill up at that time.” It’s the kind of app people find incredibly useful and has a real impact on their lives - and finances.
So Steve was annoyed when out of the blue, his electricity company AEP Ohio told him after three years of service the app would stop working this week. He asked for an explanation, and AEP told him it was because they "no longer have regulatory approval,” to offer the software. Which makes no sense.
Except, incredibly, it’s true. But the issue goes way deeper than that. Because this is a story of what happens when smart homes and modern technology meet dumb bureaucracies, entrenched interests, and cash donations.
What Steve may not have known is that his smartphone app was the result of a law passed in 2008 aimed at tackling climate change by requiring Ohio to get 12.5 per cent of its power from renewable sources by 2027, while at the same time reducing overall power usage by 22 per cent through energy-efficiency programs.
It wasn’t a massively ambitious program but it was something. Thanks to partisan politics, however, ever since the law was passed in the US state, a group of lawmakers – mostly Republican but some Democrats – have been trying to kill it. They have given a wide variety of reasons why: it is government overreach, it raises the price of electricity, it’s no longer needed for various reasons, and so on.
Last year, after 11 years of trying, they finally got their way. [1]House Bill 6 passed by a 51-38 vote in April 2019, and governor Mike DeWine (R) signed it off on July 23.
The new law was effectively a $1.3bn bailout for power plant operators in the state. It removed the measures designed to tackle climate change, which were costing 4.3 million Ohioan households between $3 and $4 each month (depending on who you ask), and replaced them with $2.35 in monthly charges that will be used to overwhelmingly subsidize coal and nuclear plants instead.
Let's really screw this up
In the way that only truly dysfunctional politics can, the new law didn’t actually remove the thing that lawmakers were most focused on – the 12.5 per cent renewable energy requirement. Those mandates stay. Instead, the law killed off the 22 per cent energy reduction through efficiency programs.
And one of those programs, you may have guessed, was the smartphone app that allowed millions of Ohio residents to see what electricity they were actually using and how much it cost them so they were able to make smart decisions about how to save money.
Amazon staffers took bribes, manipulated marketplace, leaked data including search algorithms – DoJ claims [2]READ MORE
And if all that sounds like terrible law, it gets worse: this July, more than a year after the law passed, Ohio House Speaker Larry Householder (R) and four others were [3]arrested on suspicion of taking [4]a $60m bribe to pass the bill.
"These allegations are bribery pure and simple," said US Attorney David DeVillers. "This was quid pro quo. This was pay to play."
According to the FBI, two nuclear power plants that were due to close in 2020 and 2021 were saved by the legislation, and were given millions in redirected funds under the new law. The Feds tracked some $60m flowing from a nuclear energy giant FirstEnergy and its affiliates into an outfit called Generation Now, set up as a 501(c)(4) social cause organization, and claimed at least $500,000 of that eight-figure sum ended up in House speaker Householder's bank account.
The federal government's investigation is still ongoing. In a further twist, it turns out even AEP [5]contributed money to Generation Now. And in the past month, an Ohio House select committee has held three hearings over whether to repeal and replace the law at the center of it all.
Many months before the bribery allegations emerged, Ohio's Public Utilities Commission, following a [6]contentious public comment process [PDF], decided it had no choice but to end the energy-efficiency mandates as a result of HB6, winding them down on September 30, and ending them completely on December 31.
It's not just smartphone apps that'll be unplugged as a consequence of this shut down and withdrawal of regulatory approval: the doomed [7]energy-efficiency programs included things like reducing the price of LED bulbs – which are much more efficient and last much longer than traditional incandescent bulbs but cost more at purchase – as well as rebates on smart thermostats, energy-saving devices and various financial incentives to make home more energy efficient – insulation, recycling old appliances, and the like.
Luddites
In effect, the drive to support inefficient bulbs and other old technology undercut modern tech, such as apps and smart thermostats, even though the latter results in people using and paying less for their energy.
The smartphone app was developed and run by a company called Powerley, based in Michigan, and when it was announced, its CEO Manoj Kumar was excited that it AEP Ohio would be “one of the first utilities globally to deliver the energy-driven smart home experience,” by “going beyond the meter” to give customers a real-time insight into their energy usage.
The app was free and take-up was huge. The service was branded It’s Your Power and both Android and iOS apps were produced that worked with a hub, called the Energy Bridge, that also allowed for the addition of other smart home devices like bulbs and sensors.
Unlike the systems being increasingly pushed by Apple, Amazon, and Google, the system was designed to add new technology in a way that is useful to homeowners without it leaking data to huge tech giants who then build advertising and sales systems around them.
The It’s Your Power website is now dead, and millions of unhappy customers were informed that their app will no longer work from Thursday, although Steve since tells us the cut-off has been [8]extended to the end of October. We asked Powerley on his behalf if there’s a way he can still keep the app working and if so how much it will cost: the company, stuck in the middle of a political scandal while simply trying to put an app in people's hands, was understandably cautious.
"I would refer to AEP Ohio’s program website for the latest information on the app and availability," its marketing director Matt Mowat told The Register . "I know the site will be updated once additional information becomes available."
Earlier this month, Householder, 61, who was stripped of his House speaker role after his arrested, [9]pleaded not guilty to a federal racketeering charge.
The other four collared by the Feds – lobbyists Neil Clark and Juan Cespedes, Ohio GOP ex-chairman Matt Borges, and political strategist Jeff Longstreth – have also pleaded not guilty. ®
Get our [10]Tech Resources
[1] https://www.legislature.ohio.gov/legislation/legislation-summary?id=GA133-HB-6
[2] https://www.theregister.com/2020/09/21/amazon_fraud_bribery_charges/
[3] https://www.daytondailynews.com/news/us-attorneys-office-to-discuss-charges-tied-to-60-million-bribe/B453UKQLGJA53IRSUKJY2HAE5M/
[4] https://www.justice.gov/usao-sdoh/pr/ohio-house-speaker-former-chair-ohio-republican-party-3-other-individuals-501c4-entity
[5] https://www.energyandpolicy.org/aep-generation-now/
[6] http://dis.puc.state.oh.us/TiffToPDf/A1001001A20B26B44242H02561.pdf
[7] https://www.aepohio.com/save/residential/programs/EEPrograms.aspx
[8] https://ohio-aep.com/IYP_Extension
[9] https://www.journal-news.com/news/ex-ohio-house-speaker-pleads-not-guilty-in-bribery-scandal/ML5V3W7FLFGBRMILD7JHQUGDBY/
[10] https://whitepapers.theregister.com/
Re: Scandal, but not this
"No one uses them. Well, one Reg Reader uses it, but no one else."
It was downloaded more than 10000 times on Google Play.
Re: Scandal, but not this
downloads != active users
10k downloads is nothing on Play
Re: Scandal, but not this
"10k downloads is nothing on Play"
Well, it is only available to Ohio residents, for a start.
Re: Scandal, but not this
There are about 11.7 million people in Ohio, and 4.6 million households, so 10K downloads is very small. Also, AEP has been sending out monthly usage (by snail mail!) statistics in addition to the monthly bills, which seems like a total waste.Other than the fact that my usage is always less than "similar" efficient homes, I couldn't tell you one fact from these notices.
By the way, the gas company does the same thing, so I assume it is a state requirement. I suppose killing a few trees is considered a small price to pay to send mail that most people will just ignore.
Re: Scandal, but not this
"So if unprofitable apps got cancelled, it's no great loss."
Maybe not everything beneficial to society as a whole should be "profitable" as in putting money in some corporation or individual's pocket, especially when it's in the area of public utilities or basic infrastructure[1]. If it's helpful to consumers and results in decreased electricity usage, it's a boon to everyone and maybe the utilities should be actively encouraged or perhaps even required to provide such useful apps by the agencies that regulate them, rather than forbidding them.
[1] Postal service, anyone?
Re: Scandal, but not this
Careful, that sounds like socialism.
Re: Scandal, but not this
Sorry, "Nobody uses them"? Of course we did. I wondered why it just went away.
Utilities collect meter readings every hour or so because they're into 'time of use' tariffs, its the key to maximizing profits. Like all old school profiteers they don't like consumers having access to the same information, it levels the playing field somewhat. This information becomes indispensable when you install solar panels because it helps you balance consumption with production -- but then these old school profiteers don't like panels either, it represents competition.
These days a lot of America resembles a banana republic -- its frankly quite embarassing at times having to explain to people that, honestly, we're not all like that.
Re: Scandal, but not this
Those energy monitoring apps do seem a bit gimmicky - an interesting thing to download and play with for a week or so, but once you have unravelled the mystery of why your Direct Debit to the power company is what it is, that will be it.
Now, where they would come into their own, and be of practical use, is if the cost changed by the hour as supply and demand fluctuate. I know this is already a thing, but availability is limited to a very small scope of clients. With the expanding infrastructure of smart meters, I can see the day where some of my electrical items have an electronic finger on the switch. The charger for my electric wheelchair probably, as I tend to wait until after the news headlines of "Power app shuts off ventilators to save money and kills 20", before buying into such things.
Re: Scandal, but not this
@TPHB "I work in this industry"
Hmm! Your only post, do you work in the Ohio power industry and who pays you?
Old tech
Since when is nuclear power 'old tech'?
Isn't NuScale's SMR cool and hip? What about the dozens of other SMR designs in various stages of development and certification?
Just because a company which also owns two nuclear plants gets caught up in this bribery scandal seems like a weird reason to go off on a tangent about nuclear power like this. Especially when it's the fastest growing source of low-carbon power in Asia, Arabic world, Africa and Europe.
None of this bribery scandal should reflect on the nuclear power industry as a whole.
Re: Old tech
We're referring to LEDs v bulbs, smart thermostats v unconnected gear, etc, not nuclear power.
I'd say most of us at El Reg are in favor of nuclear power, when done right and all above board. It is a global tragedy that we're still reliant on coal and other fossil fuels for electricity IMHO.
C.
Re: Old tech
"It is a global tragedy that we're still reliant on coal and other fossil fuels for electricity IMHO."
There has been no excuse for this for the whole of my adult life. By and large it's self-styled greens who have been responsible AFAICS. Now, at last, it appears that a few of them are catching on.
Re: Old tech
None of this bribery scandal should reflect on the nuclear power industry as a whole.
Well, since they were the ones doing the bribing, some blame must fall...
.
FirstEnergy --- I just love meaningless new names, particularly in CamelCase --- gave elected legislators money taken from consumers, specifically to promote Nuclear Power and ditch environmental protections. It's not like they were bribing them to give free power to the homeless or battered wives.
Illinois ComEd in a similar quagmire....
Getting caught bribing congress critters seems to be en vogue this year with power companies.... something similar went down in Illinois with ComEd and "Public Official A", who is Michael Madigan earlier this year.
You'd think being given a government sanctioned monopoly, there'd be no reason for this type of crap. I guess power begets power (pun intended).
We've said for years that Ohio has the best politicians money can buy. On both sides of the aisle but primarily the right side.
Ohio Register reader Steve Ringley loves his electricity company’s smartphone app: it shows his usage in real time in 15-minute increments along with its cost in a simple and easy-to-understand graphic.
My Smart Meter --- and I can't say I have noted any of the dire consequences forboded for Smart Meters by deep thinkers, but maybe I'm just oblivious --- from Ecotricity [ Power company ] shows usage and cost and all the other things in real time, albeit with a 30 second lag.
I can't imagine why Ohio's should be so slow.
.
All that's lacking is discrete use by each appliance, but I find it very helpful.
I can see the point of such apps if variable pricing is in operation. In fact, it ought to be mandatory to provide them is such circumstances. But I can work out for myself that if I turn on the toaster and electric kettle that my electricity use goes up.
My utility has or had a usage graphing on their website.
But it was really limited because they didn't present an average, which is what I want to see. And really, that's what I think people should want.
When I was trying to figure out whether I wanted to go back to TOU it was easier to use the data download option.
Bribery?
No, this is federally protected FREE SPEECH!
~Citizens United~
Scandal, but not this
The bribery scandal is indeed shocking, but the loss of the app is not. I work in this industry. Companies large and small have built realtime usage monitoring apps. No one uses them. Well, one Reg Reader uses it, but no one else. I've built these apps, and I don't use them after testing. No one is into looking at their realtime electricity usage on a regular basis.
So if unprofitable apps got cancelled, it's no great loss.