Sep. 6--Those new smart meters Peco Energy Co. and other utilities will install soon are being touted as money-savers that will give customers more control over their electric bills.

But for the utilities, the meters' real worth lies in the information generated, including details that some customers might prefer remained secret.

Already, Peco is analyzing daily readings to spot thieves who intermittently bypass the meters and steal power. And experts looking at meter data can discern the telltale signs of illicit activity, such as a marijuana "grow house."

But the new generation of smart meters that Pennsylvania utilities are required to install will produce far more data, generating readings at least hourly. The meters could record material so frequently that power flows could be interpreted like DNA to reveal unique electrical signatures of individual appliances.

Some experts imagine an Orwellian future in a carbon-constrained world, where consumers are cited for excessive electricity use, or divorce lawyers comb through meter records and ask: Who used the hot tub while the spouse was away?

"The privacy implications are astounding," said Susan L. Lyon, a Seattle lawyer who specializes in data-security issues. She compared the smart grid's potential benefits -- and risks -- with those of the Internet.

"The drive to retool the United States' electricity generation and distribution networks may inadvertently raise a monster with unparalleled abilities to invade residential privacy," Elias Leake Quinn, a research analyst at the Center for Energy and Environmental Security in Boulder, Colo., wrote in a recent paper on smart meters.

Last month, the Colorado Public Utilities Commission opened an inquiry into the privacy implications. Other states are expected to follow.

"I think smart meters do raise issues around cybersecurity and data security that the industry in general hasn't addressed fully yet," said Bernard Bujnowski, president of Utilimetrics, a utility-technology association.

Peco announced plans last month to spend $650 million in 10 years for improvements to its distribution system, including installing 1.6 million smart meters. It applied for a $200 million federal stimulus grant to accelerate the plan and deploy 600,000 meters in the next three years.

Smart meters, which Pennsylvania is requiring for all large electric utilities, allow for two-way wireless communication with customers. They will set the stage for time-of-day discount pricing to encourage off-peak consumption.