Smart Talk: Economic impact of smart meters

In 2010, Younger Associates completed an impact study, integrating statistics and data from the U.S. Bureau of Economic Analysis, to calculate the economic impact of smart meters on our local economy.  The study revealed that $10 million in utility bill savings for MLGW customers equates to 152 new jobs for our community, fueled by increased discretionary spending.

Attaining $10 million in savings is highly feasible considering area population and electric usage patterns that are far above the national average. An across the board reduction of 2.5 percent in electricity usage by all MLGW’s residential customers could easily surpass $10 million in savings.  A 2.5 percent reduction in consumption is realistic and achievable—backed by actual results from the three-year, 1,000-volunteer Smart Grid Demonstration project.

Empowered by their personal usage data, Smart Grid Demonstration volunteers averaged a 2.3 percent reduction in their electric consumption.  For time-of-use rate participants, the savings were greater as TOU households' consumption declined by 5.62 percent.

Reducing energy consumption, and thereby customers’ utility bills, means more disposable income for Memphis and Shelby County residents and potentially more jobs for our local economy.

Mark Herbison, Senior Vice President, Economic Development, Greater Memphis Chamber, gives his perspective on the impact of increased disposable income on job creation for the City of Memphis and Shelby County in the video below.