Officials think again about what to charge if customer rejects utility smart meter

By Tara Fischer

Staff Writer

(Oct. 1, 2026) Berlin officials are rethinking their approval of an opt-out fee for residents who choose not to participate in the municipality’s advanced metering system for electric utilities. Nevertheless, halting the process now could be costly and time-consuming.

In March, the Town Council endorsed opt-out charges for Berlin electric customers who decline new Advanced Metering Infrastructure (AMI) and retain the existing, manual system.

Under the policy, those who forgo AMI must pay a one-time fee of $50, payable in three installments, and a monthly $17 fee. These payments would cover additional labor costs associated with manually reading meters, a task automated by the smart metering system, which allows utility employees to access these devices remotely.

The Maryland Public Service Commission is now reviewing the town’s request to impose these rates. The PSC is expected to make a decision by Dec. 11.

However, some on the Berlin Town Council would like to rescind the monthly fee and enact only a one-time charge for AMI opt-outs. Councilman Steve Green asked this week if town staff and legal counsel could explore a way to delay or modify the PSC’s review proceeding so municipality officials may reconsider the recurring $17.

The Town of Berlin will not be able to deviate from the opt-out fee amounts if the PSC approves them, Green said, citing this as a reason for his request.

“I voted in favor of the policy including the $17 monthly opt-out fee, and I regret it,” Green said. “… My understanding now is that if the PSC approves the $17 monthly charge as part of our tariff, the town will be required to charge that amount … With the process continuing and a decision expected by Dec. 11, I don’t think we should allow the process to reach a point where this council no longer has the flexibility to reconsider the fee.”

Green maintained that he supports the $50 one-time opt-out charge, but takes issue with the ongoing cost imposed on customers who, for personal preference reasons, don’t want an AMI system attached to their household. He also argued that manual meter reading is less time-consuming than he previously believed.

“I have since reconsidered that position after watching a 55-second video of a meter being read from a resident, all the ongoing legal expenses to effect such a change, and the $151,000-plus we are spending to allow for efficiencies associated with the new meters …

“My concern is with charging residents $17 every month indefinitely for choosing to opt out. That’s $204 a year and more than $2,000 over 10 years,” Green added.

There are currently 10 electric utility customers in Berlin who have declined the smart meters.

Other councilmembers agreed with Green that these residents should be required to pay only the one-time fee.

“I would like to see that monthly fee repealed,” Councilman Jay Knerr said.

However, Town Administrator Mary Bohlen said the rate is meant to place the financial burden incurred by the town on the property owner who opts out of the higher-tech devices, rather than taxpayers who accept the AMI system.

Berlin Mayor Zack Tyndall added that the fees act as a financial safeguard in case more residents choose to opt out and increase the labor costs the municipality must pay.

“Let’s say there are five, 10, 15 today, you have no mechanism for cost recovery when you could one day have more,” he said. “There are costs that go into that. There is a job at PSC to make sure subsidies are not being shared with other customers who do not share that load.”

Finance Director Natalie Saleh said keeping manual meters requires effort that would otherwise be eliminated with the AMI systems. She maintained that the town would likely need to train all new hires on the mechanical devices and create special files and bills for the few who turn down the smart technology.

Saleh added that halting the process with the PSC now and reconsidering the rates would require more staff time and legal fees.

“I don’t think going backward is the right step,” she said.

The proposed fee rates have drawn criticism from resident Bartosz Rafiński.

Rafiński, one of the customers who has opted out of the smart meters, argued the time it takes staff to read the meters manually is mere seconds. He maintained that the $ 17-a-month fee is an overcharge.

However, town staff said that the recurring rate is based on what other Maryland utilities charge. For instance, Delmarva Power has imposed a $17 monthly fee.

Following Monday night’s discussion, Tyndall said he would direct legal counsel to determine whether the municipality could halt the PSC’s review process so that it can reconsider the opt-out rates.