Naperville Smart Meter Awareness v. City of Naperville
Opinion
The City of Naperville owns and operates a public utility that provides electricity to the city's residents. The utility collects residents' energy-consumption data at fifteen-minute intervals. It then stores the data for up to three years. This case presents the question whether Naperville's collection of this data is reasonable under the Fourth Amendment of the U.S. Constitution and Article I, § 6 of the Illinois Constitution.
*524 I. BACKGROUND
The American Recovery and Reinvestment Act of 2009 set aside funds to modernize the Nation's electrical grid. The Act tasked the Department of Energy with distributing these funds under the Smart Grid Investment Grant program. Through this program, the City of Naperville was selected to receive $11 million to update its own grid. As part of these upgrades, Naperville began replacing its residential, analog energy meters with digital "smart meters."
Using traditional energy meters, utilities typically collect monthly energy consumption in a single lump figure once per month. By contrast, smart meters record consumption much more frequently, often collecting thousands of readings every month. Due to this frequency, smart meters show both the amount of electricity being used inside a home and when that energy is used.
This data reveals information about the happenings inside a home. That is because individual appliances have distinct energy-consumption patterns or "load signatures." Ramyar Rashed Mohassel et al., A Survey on Advanced Metering Infrastructure , 63 Int'l J. Electrical Power & Energy Systems 473, 478 (2014). A refrigerator, for instance, draws power differently than a television, respirator, or indoor grow light. By comparing longitudinal energy-consumption data against a growing library of appliance load signatures, researchers can predict the appliances that are present in a home and when those appliances are used. See id.; A. Prudenzi, A Neuron Nets Based Procedure for Identifying Domestic Appliances Pattern-of-Use from Energy Recordings at Meter Panel , 2 IEEE Power Engineering Soc'y Winter Meeting 941 (2002). The accuracy of these predictions depends, of course, on the frequency at which the data is collected and the sophistication of the tools used to analyze that data.
While some cities have allowed residents to decide whether to adopt smart meters, Naperville's residents have little choice. If they want electricity in their homes, they must buy it from the city's public utility. And they cannot opt out of the smart-meter program. 1 The meters the city installed collect residents' energy-usage data at fifteen-minute intervals. Naperville then stores the data for up to three years.
Naperville Smart Meter Awareness ("Smart Meter Awareness"), a group of concerned citizens, sued Naperville over the smart-meter program. It alleges that Naperville's smart meters reveal "intimate personal details of the City's electric customers such as when people are home and when the home is vacant, sleeping routines, eating routines, specific appliance types in the home and when used, and charging data for plug-in vehicles that can be used to identify travel routines and history." (R. 102-1 at 14.) The organization further alleges that collection of this data constitutes an unreasonable search under the Fourth Amendment of the U.S. Constitution as well as an unreasonable search and invasion of privacy under Article I, § 6 of the Illinois Constitution. 2
The district court dismissed two of Smart Meter Awareness's complaints without
*525
prejudice. Smart Meter Awareness requested leave to file a third, but the district court denied that request. It reasoned that amending the complaint would be futile because even the proposed third amended complaint had not plausibly alleged a Fourth Amendment violation or a violation of the Illinois Constitution. Smart Meter Awareness appealed. Because the district court denied leave to amend on futility grounds, we apply the legal sufficiency standard of Rule 12(b)(6)
de novo
to determine if the proposed amended complaint fails to state a claim.
See
,
e.g.
,
Gen. Elec. Capital Corp. v. Lease Resolution Corp.
,
II. ANALYSIS
The Fourth Amendment of the U.S. Constitution protects "[t]he right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures." Similarly, Article I, § 6 of the Illinois Constitution affords people "the right to be secure in their persons, houses, papers and other possessions against unreasonable searches, seizures, invasions of privacy or interceptions of communications by eavesdropping devices or other means."
We can resolve both the state and federal constitutional claims by answering the following two questions. 3 First, has the organization plausibly alleged that the data collection is a search? Second, is the search unreasonable? For the reasons that follow, we find that the data collection constitutes a search under both the Fourth Amendment and the Illinois Constitution. This search, however, is reasonable. 4
A. The collection of smart-meter data at fifteen-minute intervals constitutes a search.
"At the [Fourth Amendment's] very core stands the right of a man to retreat into his own home and there be free from unreasonable government intrusion."
Silverman v. United States
,
*526
Kyllo v. United States
,
"Where ... the Government uses a device that is not in general public use, to explore details of the home that would previously have been unknowable without physical intrusion, the surveillance is a 'search.' "
Id
. at 40,
The technology-assisted data collection that Smart Meter Awareness alleges here is at least as rich as that found to be a search in Kyllo . Indeed, the group alleges that energy-consumption data collected at fifteen-minute intervals reveals when people are home, when people are away, when people sleep and eat, what types of appliances are in the home, and when those appliances are used. 5 (R. 102-1 at 14.) By contrast, Kyllo merely revealed that something in the home was emitting a large amount of energy (in the form of heat).
It's true that observers of smart-meter data must make some inferences to conclude, for instance, that an occupant is showering, or eating, or sleeping. But
Kyllo
rejected the "extraordinary assertion that anything learned through 'an inference' cannot be a search."
Id
. at 36,
Under
Kyllo
, however, even an extremely invasive technology can evade the warrant requirement if it is "in general public use."
The ever-accelerating pace of technological development carries serious privacy implications. Smart meters are no exception. Their data, even when collected at fifteen-minute intervals, reveals details about the home that would be otherwise unavailable to government officials with a physical search. Naperville therefore "searches" its residents' homes when it collects this data.
Before continuing, we address one wrinkle to the search analysis. Naperville argues that the third-party doctrine renders the Fourth Amendment's protections irrelevant here. Under that doctrine, a person surrenders her expectation of privacy in information by voluntarily sharing it with a third party.
See
Carpenter v. United States
, --- U.S. ----,
This argument is unpersuasive. As a threshold matter, Smart Meter Awareness challenges the collection of the data by Naperville's public utility. There is no third party involved in the exchange.
6
Moreover, were we to assume that Naperville's public utility was a third party, the doctrine would still provide Naperville no refuge. The third-party doctrine rests on "the notion that an individual has a reduced expectation of privacy in information knowingly shared with another."
Carpenter
,
B. The data collection is a reasonable search.
That the data collection constitutes a search does not end our inquiry.
*528
Indeed, "[t]he touchstone of the Fourth Amendment is reasonableness."
Florida v. Jimeno
,
Residents certainly have a privacy interest in their energy-consumption data. But its collection-even if routine and frequent-is far less invasive than the prototypical Fourth Amendment search of a home. Critically, Naperville conducts the search with no prosecutorial intent. Employees of the city's public utility-not law enforcement-collect and review the data.
In
Camara v. Municipal Court
, the Supreme Court noted that this consideration lessens an individual's privacy interest.
Of course, even a lessened privacy interest must be weighed against the government's interest in the data collection. That interest is substantial in this case. Indeed, the modernization of the electrical grid is a priority for both Naperville, (R. 120-1, Smart Meter Agreement between Naperville and the Department of Energy), and the Federal Government, see Smart Grid , Federal Energy Regulatory Commission (Apr. 21, 2016), https://www.ferc.gov/industries/electric/indus-act/smart-grid.asp.
Smart meters play a crucial role in this transition.
See
id
. For instance, they allow utilities to restore service more quickly when power goes out precisely because they provide energy-consumption data at regular intervals.
See, e.g.
, Noelia Uribe-Pérez et al.,
State of the Art and Trends Review of
Smart Metering
in Electricity Grids
, 6 Applied Sci., no. 3, 2016, at 68, 82. The meters also permit utilities to offer time-based pricing, an innovation which reduces strain on the grid by encouraging consumers to shift usage away from peak demand periods.
With these benefits stacked together, the government's interest in smart meters is significant. Smart meters allow utilities to reduce costs, provide cheaper power to consumers, encourage energy efficiency, and increase grid stability. We hold that these interests render the city's search reasonable, where the search is unrelated to law enforcement, is minimally invasive, and presents little risk of corollary criminal consequences.
We caution, however, that our holding depends on the particular circumstances of this case. Were a city to collect the data at shorter intervals, our conclusion could change. Likewise, our conclusion might change if the data was more easily accessible to law enforcement or other city officials outside the utility.
III. CONCLUSION
Naperville could have avoided this controversy-and may still avoid future uncertainty-by giving its residents a genuine opportunity to consent to the installation of smart meters, as many other utilities have. Nonetheless, Naperville's warrantless collection of its residents' energy-consumption data survives our review in this case.
Even when set to collect readings at fifteen-minute intervals, smart meters provide Naperville rich data. Accepting Smart Meter Awareness's well-pled allegations as true, this collection constitutes a search. But because of the significant government interests in the program, and the diminished privacy interests at stake, the search is reasonable. We therefore AFFIRM the district court's denial of leave to amend.
Residents may request that Naperville replace their analog meters with "non-wireless" smart meters. But these alternatives are smart meters with wireless transmission disabled. They collect equally rich data. The difference is that the data must be manually retrieved. (R. 117 at 3.)
Smart Meter Awareness challenged the smart-meter program on a number of other grounds that are not relevant to this appeal.
The Illinois Supreme Court applies "a 'limited lockstep' approach when interpreting cognate provisions of [the Illinois] and federal constitutions."
See
,
e.g.
,
City of Chicago v. Alexander
,
Smart Meter Awareness also claims that smart meters are an invasion of privacy under Article I, § 6 of the Illinois Constitution. It's certainly possible that this is the case. But the Illinois Supreme Court conducts reasonableness balancing for the invasion of privacy under the same framework as searches under the Fourth Amendment.
In re May 1991 Will Cty. Grand Jury
,
Smart Meter Awareness directed the court to academic studies demonstrating the revealing nature of smart-meter data collected at fifteen-minute intervals, see , e.g. , Ramyar Rashed Mohassel et al., supra at 478; A. Prudenzi, supra , and to commercially available products that can identify what appliances are used in a home and when they are used based on smart-meter data. See Disaggregation , Ecotagious, https://www.ecotagious.com/disaggregation/ (last visited July 25, 2018).
This alone renders Naperville's reference to the Eighth Circuit's decision,
United States v. McIntyre
,
Reference
- Full Case Name
- NAPERVILLE SMART METER AWARENESS, Plaintiff-Appellant, v. CITY OF NAPERVILLE, Defendant-Appellee.
- Cited By
- 20 cases
- Status
- Published