Southern California Edison is helping energy customers get a play-by-play analysis of their power usage with its new SmartConnectâ„¢ program. 

Five million smart meters will replace traditional home power meters and provide two-way communication between the meter and SCE.  "In the meter itself is a small radio chip that allows the communication inside the home," said Ken Devore, the director of the SmartConnectâ„¢ program.

The radio chip receives information on the usage of individual appliances and devices in a building. This usage information is transmitted over a secure connection to SCE. Customers can then log into their online account and look at their previous day's energy usage, broken down by hour and device.

"If you have information you allow yourself to make choices and to change your behavior, then you really do feel like you've taken control," said Devore.

The company's goal is to have every one of their residential and small-business customers have a smart meter installed. In phase two of the plan SCE will implement a variety of programs that will encourage customers to use the smart meters to save money by providing incentives and rebates for those who change their usage behavior.  The company estimates that they will see a one to two percent drop in monthly power usage once smart meters are installed.  

In addition to reducing usage, some residents see another advantage to smart meter technology. 

"My bill was 700 something dollars," said Magellan Berry, one of the first SCE customers to receive a smart meter, "and I questioned the meter reader and I found out that they hadn't read it right." Berry thinks that the new meter will allow him to catch incorrect meter reads sooner, preventing him from being overcharged. 

SCE technicians will not need to physically read the meters anymore, and SCE will have the capability to start and stop home and small business service remotely. 

However, the benefits of smart meters do not come without a cost. SmartConnectâ„¢ is a $1.6 billion program that was approved by the California Public Utilities Commission. 

Next year SCE customers can expect to see a 1 to 1.6 percent increase in their electricity rates. But Devore cautions customers not to panic. "The amount that they can save in energy efficiency and by taking advantage of the incentives far outweighs the cost of the program itself," Devore said.

SCE is not the only California utility company to start a smart meter program. Pacific Gas and Electric and San Diego Gas and Electric have similar programs launching as well.

The Los Angeles Department of Water and Power began piloting smart grid technology with its larger commercial and industrial customers in 2000 and showed a five percent reduction in energy usage as a result.