Recently Commission staff provided a Briefing on Smart Meters: Technical Information and Regulatory Issues to the Florida Public Service Commission. As previously reported, the FPSC held a public workshop last year to gather information and address concerns raised by customers. The Briefing summarizes the workshop. Although many of the typical issues are raised, I think utilities will find staff’s conclusions most interesting. For example, tucked on pages 2 and 4 are insightful conclusions I consider headline-worthy:

The FPSC has jurisdiction over cost recovery of smart meters, but does not have specific statutory authority over the smart meters themselves... RF emission standards are established by the Federal Communications Commission (FCC).

Briefing, page 2

The FPSC does not have regulatory authority over any potential health effects from smart meters; the FCC is the entity that has jurisdiction over the issue.

Briefing, page 4

Yes, the Briefing is an interesting read. Staff also wonders what will happen to the 25,000^[1] customers FPL estimates are on its hold list because of smart meter concerns. Right now the costs to read these customers’ analog meters are socialized among most ratepayers, which can reduce the overall savings that may be achieved by smart meters. Staff expressly states it believes all charges should be cost-based to ensure any subsidization is kept to a minimum.

Finally, staff suggests that the Commission continue to monitor the issues, but not take any specific action at this time.

^[1] This figure represents .5% of all of FPL’s smart meter installations. Briefing page 6.

In the past, customer education typically meant nothing more than a bill insert and perhaps an additional public notice. Then came the smart grid and suddenly more is required… much more. Ameren Illinois conducted a quantitative study to measure its customers’ baseline awareness about AMI. Key findings revealed:

• 63% of customers have heard the term “smart grid.”
  Among the 63% hearing the term:
  • 40% don’t know much about what it means
  • 34% have a favorable impression
  • 29% are neutral
  • 16% have an unfavorable impression
  • 21% don’t know
• 45% of customers have heard the term “smart meter.”
  Among the 45% hearing the term:
  • 25% of those who have heard the term don’t know much about what it means
  • 35% have a favorable impression
  • 28% are neutral
  • 23% have an unfavorable impression
  • 14% don’t know
• 46% of all customers feel that smart meters would be “mostly an advantage,”
• 40% seeing the meters as “having no impact,” and
• 8% as “mostly a disadvantage.”

Customers indicated that improving reliability, bill accuracy and customer service and providing them with more control of home energy usage as the top smart meter benefits. The study will help guide the development of Ameren’s stakeholder and customer education plan. You can learn more about Ameren’s plan and ComEd’s plan by reading their Annual AMI Reports filed with the Illinois Commerce Commission on April 1, 2013. Ameren and ComEd also filed jobs creation reports as a result of the Energy Infrastructure Modernization Act.

A recent City of Naperville (“Naperville”) smart meter case is a flashback to first year constitutional law. The Naperville Smart Meter Awareness (“NSMA”) group and several of its members, citing numerous health, safety, security and privacy concerns over smart meters that wirelessly transmit data about electric use to Naperville, sued Naperville in the Eastern District of Illinois in a four count complaint raising the following constitutional issues regarding Naperville’s deployment of smart meters:

1. Federal rights under the Public Utility Regulatory Policies Act of 1978
2. Fourteenth Amendment due process rights
3. Fourteenth Amendment unreasonable search
4. Fifth Amendment government taking

Judge John Lee in a 24 page Memorandum Opinion and Order granted the City of Naperville’s motion to dismiss. In the opinion, Judge Lee writes that NSMA did not exhaust all state remedies for its claims and did not prove radio frequency from the meters is actually harming people. He also found the city has precautions in place to keep customer data from being disclosed without their consent and rejected the claim the city will collect personal details about customers' lives.

Even assuming that a smart meter is technically able to measure electrical usage and load to such minute detail, and one were able to ascertain personal details about a resident's life from such data, the mere existence of such a capability does not reasonably lead to an inference that it is actually being employed,

- Opinion, page 21.

The order provides excellent constitutional analysis on the smart meter issues that will be helpful to many utilities. However, stay tuned for part two because Judge Lee gave NSMA a big break; the group has 14 days to file an amended complaint to cure deficiencies. This may be a good but expensive decision for Naperville, since it may have to relitigate many of same issues when the amended complaint is filed.

The Federal Energy Regulatory Commission (“FERC”) will hold a technical conference focused on natural gas and electric scheduling. The conference also will explore coordination issues such as:

• would the establishment of a single “energy day” be beneficial;
• how would the scheduling leading up to that “energy day” be efficiently sequenced;
• how to manage scheduling gas in the evenings, on weekends and holidays;
• should electric scheduling to be done before or after gas and transportation scheduling; and
• do technological advances permit a reduction in the time between the electric bid or pipeline nomination and when they are scheduled?

The technical conference will take place at the Federal Energy Regulatory Commission, 888 First Street, NE, Washington, DC 20426 on April 25, 2013, beginning at 9:00am and ending at approximately 5:00pm. Those interested in speaking at the technical conference should notify the Commission by March 15, 2013, by completing the online registration form.

The New York State Smart Grid Consortium, a not-for-profit public-private partnership that promotes broad statewide implementation of the smart grid, contracted with the Electric Power Research Institute (EPRI) to engage the New York-based electric utilities and the New York Independent System Operator (NYISO) to determine the following:

• key technologies and capabilities needed for the foundation of a comprehensive grid modernization effort;
• high priority R&D gaps that need to be filled to enhance the ability of New York State to more effectively and reliably achieve grid modernization at reasonable cost and in timely fashion;
• key challenges and opportunities that impact New York State grid modernization;
• activities already underway in New York State to support grid modernization.

The recently issued white paper covers a lot of technical information that those outside of New York will find helpful and even provided a bit of history for trivia buffs: Did you know that Thomas Edison first provided electric lighting to a few dozen customers in lower Manhattan in 1882?[1] And what started as the first generator and several miles of wiring has grown into an interconnected electricity grid that covers the entire continent?

The electric grid that began in New York is essential to economic growth everywhere. In the early days of the Internet, I remember it being referred to as the information superhighway. You need energy to power the Internet. It is hard to imagine life without either. Understanding the importance of energy, New York’s Governor Cuomo launched the Energy Highway Initiative in 2012 with a goal of providing more reliable, lower cost power for New York’s homes and businesses, protecting and creating jobs, spurring new investment in New York State, generating economic growth and safeguarding the environment.

[1] Powering New York State’s Future Electricity Delivery System: Grid Modernization, page 2, January 2013

Due to the mounting public concern about smart meter generated radio frequency (“RF”) fields, the Vermont Department of Public Service (“VDPS”) commissioned a study aimed at assessing smart meter compliance with regulations established by the Federal Communications Commission (“FCC”). During November and December 2012, a comprehensive series of measurements was performed to evaluate RF emissions produced by electric smart meters deployed within Vermont. The study examined the strengths of the RF fields emitted by smart meters with attention to both the instantaneous peak values of field power density and average values. The work also included measurements of the duration of the brief emissions and the number of emissions that could be observed to occur over sampling intervals so the amount of time that the meters actually transmit could be determined. Here are a few of the findings:

• Exposure, in terms of instantaneous peak, as well as time-averaged RF fields, caused by deployed smart meters in Vermont is small in comparison to that related to many other sources of RF fields in the environment. For instance, local values of long term, time-averaged RF fields (as a fraction of the MPE) from FM radio broadcasting can, in some areas as found in this study, be as much as 10 to hundreds of times greater than those values found immediately near smart meters. The common use of normal appliances within a home or office, such as microwave ovens and wireless routers, can lead to RF fields that are comparable to or substantially greater than those produced by smart meters. This applies to the use of mobile phones as well; both mobile phones and smart meters operate with roughly the same transmitter peak powers. In this context, however, mobile phones are normally held against the head during use while smart meters are not.
• Using the highest indicated results from the measurements performed in this study, potential exposure of individuals to the RF fields associated with the currently deployed smart meters in the GMP and BED service territories is small when compared to the limits set by the FCC. It is concluded that any potential exposure to the investigated smart meters will comply with the FCC exposure rules by a wide margin.

The Challenges: Getting regulatory approval for smart grid projects. Monetizing benefits.

The Help: Electric Power Research Institute’s (“EPRI”) new guidebook for cost/benefit analysis of smart grid demonstration projects. Even utilities who are not doing stimulus demonstration projects can find the book beneficial. It presents a step-by-step framework and standardized approach for estimating the benefits and costs of smart grid demonstration projects. This volume, released last month, updates and supersedes the material in the original volume one published in 2011, but goes further by providing in-depth information on the monetization of benefits. According to EPRI, it contains detailed discussion of the first 21 steps, from initial project definition to monetization of benefits and applies these steps to a specific smart grid technology to illustrate how the methodology can be applied.

EPRI says the guidebook is unique in its level of technical specificity and in the range of technologies it is intended to cover. It will complement previous publications that deal with the concepts of cost/benefit analysis as applied to the smart grid. Finally, it is intended to help utilities produce evaluations that meet reporting requirements for DOE-funded smart grid projects, as well as provide the types of information that regulatory commissions are likely to require in order to approve the investments for cost recovery through regulated rates.

This graphic is from a presentation made by EPRI at the NARUC Annual Meeting on November 13, 2011 and it is still relevant:

In addition to the EPRI material, the Business Case/Cost Recovery Resources link on this blog has several additional resources utilities may find helpful. Happy 2013!

Earlier this year, the Federal Energy Regulatory Commission (“FERC”) began examining the issues related to the coordination between the natural gas and electric markets. After a series of technical conferences, FERC issued an order directing further conferences and reports. The next conference will focus on information sharing and communications issues between natural gas and electric power organizations. The technical conference will be held at FERC on February 13, 2013, beginning at 9:00 am and ending at approximately 4:00 pm. Interested parties are asked to file comments on the questions in the notice by January 7, 2013. Here are some of the questions asked:

Should natural gas pipeline and electric utility system operators be allowed to exchange information that is not publicly posted?

If so, what kinds of information should be permitted to be shared and under what circumstances?

If information is shared, is there a need for enhanced protections against the improper use of the material communicated and what protections would be appropriate?

Is the answer the same if a natural gas pipeline or its affiliate sells or buys wholesale electric power?

If there are concerns that the increased communications might cause potential harm to industry participants, please explain those concerns.

Please consider examples of information sharing that include both verbal and digital information.

FERC says responses to these and other questions in the notice will form the basis of the agenda for the February 2013 technical conference on communications and information-sharing.

Those also interested in speaking at the technical conference should notify the Commission by January 7, 2013 by completing the online form at the following webpage: https://www.ferc.gov/whats-new/registration/gas-elec-mkts-speaker-02-13-13-form.asp. 

I am glad FERC is examining the issues. Based on the questions above, I predict job security for those in compliance.

Thanksgiving is my favorite holiday. It crosses cultural and political boundaries. Gratitude never goes out of style. Given the utility related events we have experienced throughout the year, last year's post from November 23, 2011 is quite current. Happy Thanksgiving.

Thankful for the Smart Grid and So Much More

Thanksgiving is one of my favorite holidays because it causes me to reflect on life and the many things I often take for granted. Last year, as host of the family dinner, after everyone was fed and happy, we gathered for a presentation. I explained the crisis regarding fresh drinking water and challenged the 30-plus family members at my home to join me in raising money to provide a well for a village in Kenya. I am honored to say my family and friends rose to the occasion and as a result, my immediate family, including my 14-year-old son, recently took a church missions trip to help the natives living in a remote village about six hours from Nairobi, Kenya. While there, we were blessed to see the well we raised money for go live and produce fresh water. Below is a picture of a kid enjoying his first sips.

This Thanksgiving, many of us will have plenty of beverage options. The above picture serves as a reminder to be thankful for tap water. Prior to the well, kids in this village risked being attacked by crocodiles with every trip to the river to gather water. And while the American infrastructure can certainly be improved, the picture below provides one more reason to be thankful. I took it because the scaffolding caught my attention. How many safety concerns do you spot?

I am thankful our construction workers have laws designed to provide them with safe working conditions. I often lament the traffic on the Schuylkill Expressway in Philly. In the African desert and bush, there is little traffic but many of the roads are not roads but clearings. The terrain is beautiful red sand. Pretty, but horrible for driving. Our non-air-conditioned vans would often get stuck. Below is a woman passing us up on her donkey drawn cart!

The jumbo wheels on her cart remind us that it is 2011. I am thankful for innovation – Zip Cars, Smart Cars and cars powered by natural gas, as well as electric cars. Innovation exists in the desert, too. Below, an entrepreneur uses his solar panel for all it is worth. He has created a business charging cell phones for his neighbors.

Standing in a hut and watching the owner answer her cell phone was surreal. Although their grass hut homes do not have electricity or running water, many of the owners now carry cell phones. The chasm between old and new is stark. While the smart grid may not always be so smart and electric reliability is not perfect, percentage wise, we have a lot to be thankful for. As you enjoy the simple blessings of our infrastructure – running water, phone service, paved roads and electricity, have a HAPPY THANKSGIVING!

Recent weather events here on the East Coast have highlighted how much we depend on digital technology and energy. As previously stated, I along with many others prepare for weather events by charging our gadgets, sometimes to the neglect of some basic measures like filling up our gas tanks. Yes, digital steals the show. We focus on digital, sometimes to the point of addiction, and ignore energy...until it is not there. There to power our digital gadgets, our cars, etc., energy is essential. It is the driving force behind everything we do. While it is convenient and sometimes merited to blame the energy companies, as individuals we can't afford to take energy and our use of it for granted. We must develop an aptitude for how our use of energy impacts our energy future. Today I introduce two resources to help us develop digital and energy literacy.

Neustar has a great program powered by EverFi called My Digital Life. It is a school and, of course, an online curriculum designed to provide students with knowledge to leverage technology in a responsible way. Privacy, security, cyber-bullying, digital relationships and digital addiction are addressed. But it does not stop there. To power the next generation of leaders, many who may one day work at energy companies, the curiculum teaches digital skills such as maintaining a responsible social networking profile, blogging and evaluating online research sources for legitimacy. This is a wonderful product and Neustar provides it free of charge to schools in California, Kentucky and Virgina. I hope they launch an adult version as I know many who would benefit.

DOE released a guide, Energy Literacy: Essential Principles and Fundamental Concepts for Energy Education, that identifies seven Essential Principles and a set of Fundamental Concepts to support each principle. The guide focuses on essential energy issues relevant for all citizens K-Gray. It presents energy concepts that, if understood and applied, will help individuals and communities make informed energy decisions.

Today’s post also highlights the need for regulators to stay current as they address important cost recovery issues related to the smart grid. In a technology-driven information age, the measure for cost effectiveness may be different. Customer benefits may not mean an overall lower customer bill. I am sure I pay more for phone service today but I get many benefits, such as the abilty to type this blog and Facetime with my son.

I have heard great things about the informative and inspiring South By Southwest Conference (“SXSW”) but never had the privilege of attending. SXSW now has an ECO version. This year, SXSW Eco featured a hackathon, presented by the U.S. Department of Energy and Cleanweb Worldwide. The event brought together hackers from around the world to transform open and public datasets into new energy tools. Teams were given 24 hours to develop new tools to help customers make smarter energy choices. At the Hackathon Show and Tell, winners were chosen by popular vote. Some of the winners are:

• HOMEee, Winner, Energy Efficiency Category: This android application helps homeowners track regular maintenance and opportunities for energy efficiency in a fun way. The app provides the following real time feedback:
  • Real time energy use including alerts when spikes accrue, capture the alert so the program learns behavior or predicts
  • Time of use billing alerts with recommendations
  • How does my HOMEee compare?
• DriveBetter, Winner, Transportation Category: This app will provide direct, metric-based advice to drivers to increase their understanding of driving habits and suggest ways to improve their fuel economy. It will give them a way of judging their fuel consumption on trips, the cost of that fuel consumption and the cost of alternative methods of transportation. As a potential value-added application, it will provide users with the cost of refueling their vehicle using location-based real time data.
• The Book of Energy, Special Award for Consumer Impact: This platform provides online training modules and mobile tools regarding energy efficiency tailored to specific professions.

New Hampshire passed a law this summer that in my view provides the most restrictive approach to the deployment of smart meters: Customers must opt-in by providing written permission! RSA 374:62 states in part:

II.(a) No electric utility that sells or provides electricity within the state of New Hampshire shall install a smart meter gateway device on or in a person’s home or business without the written consent of the person or persons who own the home or business.
   (b) An electric utility selling or providing electricity shall create a form that the person or persons who own the home or business must sign to opt-in to having a smart meter gateway device installed on or in his or her home or business. The form shall, in at least 12-point bold face type, state that:

(1) The opt-in is optional and one’s service will not be affected if one elects not to
opt-in; and
(2) The device is a “smart meter gateway device,” and provide the definition in subparagraph I(a).

Given the percentages associated with successful opt-ins, kiss your business case goodbye. Sporadic deployment will erode most reliability, theft of service, environmental and energy efficiency related benefits associated with advanced smart meters.

This law came to my attention when reviewing a recent New Hampshire Public Utility Commission (“NHPUC” or “Commission”) order denying a request for hearing on the installation of smart meters. The case involved a request by Ms. Wirth, a residential electric customer served by the New Hampshire Electric Cooperative (“NHEC”), to have a hearing because she wanted to opt-out of the smart meter being installed by NHEC. While I was stunned to learn of the above law, the order is well written and is worth reading because of its unique approach to the RF issue. After determining the meters installed by NHEC are not subject to the opt-in requirements of RSA 374:62 because they are not “smart meter gateway devices” as defined in the law, the Commission found the meters met the FCC’s limits on exposure to RF radiation. The Commission then set out to determine whether or not to accept the FCC’s standard or adopt a separate RF standard for New Hampshire. The NHPUC relied on case law regarding RF limits and the cell phone industry to ultimately conclude that the FCC limits pre-empt a separate and potentially conflicting state standard.

In Farina v. Nokia Inc., 625 F3d 97 (3d Cir. 2010) the United States Court of Appeals for the Third Circuit upheld the dismissal of a case brought by a group of consumers claiming that cellular telephones caused adverse health effects due to their RF emissions. The court found that the FCC regulations required a balance between safety and the rapid development of an efficient communications system. As a result, the Farina court found that the FCC limits on RF radiation exposure, codified at 47 C.F.R. § 2.1093(d), pre-empted state guidelines.

On September 13, 2012, we experienced another smart grid first: Bangor Hydro Electric Company’s grid received electricity from Ocean Renewable Power Company's (ORPC’s) Cobscook Bay Tidal Energy Project. According to the press release, this is currently the only non-dam-based ocean energy project that delivers power to a utility grid anywhere in North, Central or South America! Additionally, in the United States, it is the first time power from any ocean energy project including offshore wind, wave and tidal was delivered to the electric utility grid. Below is a picture of the turbine before it was placed on the ocean floor.

ORPC received FERC approval in February 2012 to install turbine generator units on the ocean floor and operate the project for eight years. The Cobscook Bay Project will use the tidal currents of Cobscook Bay to generate electricity via cross-flow Kinetic System turbine generator units (TGUs) mounted on the sea floor. ORPC Maine’s TidGen™ Power System will capture energy from the flow of the tide. Like all smart pilots, the initial scope is limited. The project will initially produce 180 kilowatts at peak, enough to power 25-30 homes. After running and monitoring this initial system for a year, ORPC plans to install additional power systems over the next three years to increase the project's output to 5 megawatts -enough electricity to power 1,200 Maine homes and businesses with tidal energy. The ability for a project like this to connect to the electric grid is what the smart grid is all about.

With all the hype about smart meters, it is easy to forget that the smart grid is so much more. Today’s post is a refreshing break from the opt-out drama and provides insight into other innovations of the smart grid. Smart City San Diego and the San Diego Zoo recently announced they will install a solar photovoltaic canopy that will charge electric vehicles (EV) in the Zoo parking lot. The Solar-to-EV project began construction on September 4. One of the first of its kind in the region, the project will harness energy from the sun to directly charge plug-in electric vehicles (PEVs), store solar power for future use and provide renewable energy to the surrounding community. 

Located at the iconic San Diego Zoo in the heart of the city's world-renowned Balboa Park, the Solar-to-EV project will serve as a new energy infrastructure blueprint that can be replicated throughout the region and beyond. At peak production, the Solar-to-EV project will produce enough energy to power 59 homes. The clean energy produced is equivalent to removing 189,216 pounds of carbon dioxide from the atmosphere each year, or the same as planting 2,788 trees annually. For additional comparison, the greenhouse gas emissions savings from the electricity produced is equivalent to removing 21 cars from the road each year. Furthermore, PEVs when driven on electricity offer zero tailpipe emissions and no emissions overall when the electricity is directly from solar power.

Meanwhile, a few time zones away, the Black Bear Solar Institute is doing its part to help establish a Green Gateway to the Great Smoky Mountains National Park, bridging the gap between the Interstate Highways and major metropolitan areas of Tennessee to the National Park Gateway Community of Townsend, TN, with Electric Vehicle charging stations, enabling EV drivers to visit the National Park powered by clean, renewable solar-generated electricity. This unique nonprofit organization was selected to install charging stations at the Talley Ho Inn and the Carriage House Restaurant in Townsend, TN, as well as many others in the area. This is not only environmentally friendly but is also a strategic move that will encourage the growing number of electric vehicle owners to make these establishments a stop on a trip to the Great Smoky Mountains.

Like the San Diego Zoo’s project, the Black Bear Solar Institute is also participating in the U.S. Department of Energy's EV Project. Our industry is a bevy of acronyms. Here are a few basics as explained on the EV Project’s website:

What is an EV? - The term “EV” is used to denote all grid-connected electric vehicles, including plug-in hybrid (PHEV), range-extended (REEV) and battery electric vehicles (BEV).

What is a BEV? - A BEV, or battery electric vehicle, is a vehicle powered by an electric motor. BEVs run on batteries charged by electricity, similar to cell phones or digital cameras. Because BEVs run purely on electric charges, they emit no tailpipe emissions, making them a clean, environmentally friendly driving option. With the EV Project, consumers are able to charge their vehicles at home and on-the-go with our strategically placed charging stations. The Nissan LEAF is a BEV.

What is a PHEV? - A PHEV, or plug-in hybrid electric vehicle, has both an electric battery and a gasoline engine. PHEVs run on an electric charge and convert to gasoline when the battery runs down.

The EV Project’s website provides a wealth of information regarding electric vehicles. My favorite is the link to a cool blinking map that shows charging stations across the US. The grid is looking smarter already.

As we celebrate the beginning of our independence, I challenge Smart Grid Legal News readers to take one action this week that moves our country closer to energy independence. It can be something as simple as changing your light bulbs to compact florescent bulbs or unplugging the cell phone charger when it is not in use. We all know the smart grid is about innovation and cool new technology that will update our electric grid. However, since the 4th of July is about our beginning, I thought I would go back to basics today. For many in the power industry this might be a yawner, but think of this post as simple training for your new hires. Here are the basics of how the grid works as explained by NERC:

Unlike water or gas, electricity cannot be stored. It must be generated as it is needed, and supply must be kept in balance with demand. Furthermore, electricity follows the “path of least resistance,” so it generally cannot be routed in a specific direction. This means generation and transmission operations in North America must be monitored and controlled in real time, 24 hours a day, to ensure a consistent and ample flow of electricity. This requires the cooperation and coordination of hundreds of electricity industry participants.   

The diagram below depicts the basic flow of electricity: how it is created at power plants and other generating facilities, and transported across high-voltage transmission and lower-voltage distribution lines, to reach homes and businesses. Transformers at substations step the electric voltage up and down to efficiently deliver power to the customers.

The Generation and Transmission components make up the “bulk power system.”

If you put dozens or even hundreds of these assets together, you get a “Balancing Area”, in which the balancing authority matches generation with customer demand, and the transmission operator monitors the flows over the transmission system and voltages at substations. 

Balancing areas are defined by the electricity meters at their boundaries, which measure the power flowing into and out of the area. These areas are connected to each other by “tie lines.”

That was easy. Thanks NERC! NERC is responsible for aspects of an international electricity system that serves 334 million people, and has some 211,000 miles (340,000 km) of high-voltage transmission line.  

For those who have been surprised by the wave of opt-out rulings, buckle up! The California Public Utility Commission is about to begin Phase 2 of its opt-out proceedings and it promises to be a thriller. Of course the traditional issues such as cost and cost allocation will be addressed and while important, I believe these issues will be upstaged by two concepts I have yet to see explored: 1) A community
opt-out option and 2) the Americans with Disabilities Act’s Impact on Smart Meter Deployment.

In a recent ruling, Commissioner Peevey states: 

I believe that parties should brief the issue of whether the Americans with Disabilities Act or Pub. Util. Code § 453(b) limit the Commission’s ability to adopt opt-out fees for those residential customers who are required to have an analog meter for medical reasons. Consequently, parties are requested to brief the following questions. For each of the questions, the party shall cite to the specific legal or statutory authority in support of its response.

1. Does an opt-out fee, which is assessed on every residential customer who elects to not have a wireless smart meter installed in his/her location, violate the Americans with Disabilities Act or Pub. Util. Code § 453(b)?
2. Do the Americans with Disabilities Act or Pub. Util. Code § 453(b) limit the Commission’s ability to adopt opt-out fees for those residential customers who elect to have an analog meter for medical reasons?

Questions presented regarding the community opt-out include:

1. Should the opt-out option be extended to local governments and communities?
2. Will the costs associated with this option and the fees to be charged to community opt-out participants be different than those assessed for individual opt-out participants?
3. Are there statutory or contractual restrictions associated with allowing local governments or
   multi-unit dwellings to participate in a community opt-out option?
4. How would non-residential customers or customers who wish to have a wireless smart meter be accommodated?   

Wow! Very interesting. Quite a few additional questions immediately come to mind. Here are some of the more pressing: How will a community opt-out affect the utility's business case, including but not limited to reliability, environmental and billing system changes? Can a community opt in once it has opted out? How many times can a community or person opt in and out?

Opening Briefs on the questions raised by the Commission are due June 29, 2012, and Reply Briefs on July 13, 2012. With pleadings this interesting, who needs a summer reading list?

In the case of BONNIE MENTH AND VICKY DAVIS, COMPLAINANTS, VS. IDAHO POWER COMPANY, RESPONDENT (Case No. IPC-E-12-04), the Idaho Public Utilities Commission dismissed the complaints finding that the complainants have not provided sufficient demonstrable, credible, factual evidence to support a finding that meters present legitimate safety or potentially inappropriate communication concerns. The Commission’s order found the AMI meters installed by Idaho Power do not have the capability to control appliances or other devices, nor initiate surveillance of electrical usage at individual customer residences. It is important to note the AMI meters installed by Idaho Power are not wireless, yet they still offer many benefits.

In its answer to the complaints, Idaho Power does a great job of explaining the cost of a potential opt-out. It also explains the many benefits of the new meters, including the ability of customers to drill down to understand their energy use. The figure below is one of the examples provided. 

Some of the operating benefits cited by Idaho Power include:

• Elimination of billing estimations and meter read errors
• The removal of 75 vehicles from service
• A reduction in more than a million miles of driving each year
• Valuable outage scoping and restoration data
• Voltage monitoring and meter and service failure detection

The FCC, state utility commissions, rural customers and others have bemoaned the slow pace of rural broadband build-out and adoption. Some studies suggest that barely 50% of rural households in the U.S. currently utilize a broadband connection. Broadband adoption is an issue, but clearly the unavailability of fast and reliable broadband networks is a major source of the problem. Telecommunications carriers and broadband providers consistently remind regulators that it is simply not cost-effective to build out broadband networks in many rural areas in the U.S. The American Recovery and Reinvestment Act of 2009 and the FCC’s new “Connect America” initiative both include multi-billion dollar funding streams to address the high cost of rural build-outs. But the results of such government sponsored initiatives have been mixed at best, and it is unclear when ubiquitous broadband will arrive for the roughly 18 million rural households currently without it. Absent a critical mass of customers, many rural areas will likely be without broadband for the foreseeable future.

Utility smart grids could provide the critical mass needed to kick start rural broadband build-outs.

A new whitepaper by the National Telecommunications Cooperative Association (“NCTA”) highlights the potential game-changing impact the smart utility grid could have on the rural broadband problem. The whitepaper, entitled “The Smart Rural Community,” argues that the smart grid can help drive the expansion of broadband to underserved rural areas. NCTA encourages partnerships between rural utility companies and broadband companies to “leverage each others' strengths and share resources.” The NCTA whitepaper highlights one of the less-talked-about positive attributes of the smart utility grid: the smart grid as a driver of broadband build-out. It may be cost prohibitive to build out expensive broadband networks in many rural areas in order to serve a handful of households, some of which may not even choose to adopt broadband. However, if broadband providers partner with existing gas, water and electric utilities on smart grid projects, the network resources constructed for the smart grid projects could be leveraged to build the ubiquitous, fast and reliable networks that policymakers are struggling to get built.

Facebook, the Natural Resources Defense Council (NRDC) and Opower along with 16 utilities recently launched a social energy app to help customers become more energy efficient. Leveraging the Facebook platform, the app allows people to quickly and easily start benchmarking their home’s energy usage against similar homes, compare energy use with friends, enter energy-saving competitions and share tips on how to become more energy efficient. With an initial reach of 20 million households, the effort is one of the most significant to date, enabling people to take action and become more energy efficient.

Although anyone can use the app by logging in with a Facebook account, customers within the 16 participating utilities’ territories listed below will be able to take advantage of the app’s “Utility Connect” feature, allowing customers to choose to have their energy use automatically update each month. These utilities and energy providers include:

• Austin Utilities (Minnesota)
• Burbank Water & Power
• ComEd
• Connexus Energy
• Consumers Energy
• Direct Energy (coming soon in 2012)
• Glendale Water & Power
• Loveland Water and Power
• National Grid (New York and Massachusetts)
• New Jersey Natural Gas (coming in 2012)
• Owatonna Public Utilities
• Pacific Gas and Electric Company
• City of Palo Alto Utilities
• PPL Electric Utilities Corp.
• Rochester Public Utilities
• Utilities District of Western Indiana REMC

Hey, where is my utility?! Okay, I am feeling left out of the coolest thing to hit the energy scene. Hopefully the list of participating utilities will expand. With the growing need for energy efficiency and customer engagement by utilities, this product is a home run…just in time for Opening Day!

Rather than let the experts at the Georgia Public Service Commission address the issue, lawmakers in Georgia have decided to address consumer smart meter concerns with the passage of Senate Bill 459. What is most concerning about the bill is that it fails to acknowledge the financial implication of smart meter opt-outs. Well, that is not completely true. This bill goes where no state has gone before in that it recognizes there could be fiscal issues related to opting out of smart meters; it simply refuses to apportion any responsibility on those making the opt-out decision. Below is key language from the bill:

(i) Notwithstanding any other provision of this title, the commission is authorized to provide that consumers may elect not to use smart meters of any investor owned electric light and power company subject to regulation by the commission; provided, however, that the commission shall not create and regulate a surcharge for consumers who make such an election.

The National Institute of Standards and Technology (“NIST”) announced the release of Framework and Roadmap for Smart Grid Interoperability Standards 2.0. Framework 2.0 lays out a plan for transforming the nation's aging electric power system into an interoperable Smart Grid – a network that will integrate information and communication technologies with the power-delivery infrastructure, enabling two-way flows of energy and communications. It is the result of NIST’s ongoing work on standards for the Smart Grid. Among the stakeholder groups who may find Framework 2.0 most useful are the following:

• Utilities and suppliers concerned with how best to understand and implement the Smart Grid (especially Chapters 3, 4, and 6)
• Testing laboratories and certification organizations (especially Chapter 7)
• Academia (especially Section 5.5 and Chapter 8)
• Regulators (especially Chapters 1, 4, and 6)

The transition to the Smart Grid introduces new regulatory considerations and will require increased coordination among federal, state and local lawmakers and regulators. The conceptual model is intended to be a useful tool for regulators at all levels to assess how best to achieve public policy goals that, along with business objectives, motivate investments in modernizing the nation’s electric power infrastructure and building a clean energy economy. Figure 3.1 below provides a nice overview of the NIST Smart Grid Framework.

Figure 3-1. Interaction of Actors in Different Smart Grid Domains through Secure Communication (Page 42 of Release 2.0)

Recently the California Public Utility Commission issued an order that modifies PG&E’s SmartMeter Program, requiring the utility to include an opt-out option for residential customers. Here are the highlights of the 41-page decision:

• The opt-out option means offering an analog meter, not a radio-off option on the smart meter
• Customers can opt-out for any reason
• Customers electing the opt-out option will pay an initial fee of $75.00 and a monthly charge of $10.00. CARE customers will pay an initial fee of $10.00 and a monthly charge of $5.00
• There will be a phase II in order to determine who ultimately pays for the opt-out

“Issues concerning the actual costs associated with offering the analog opt-out option and whether some portion of these costs should also be allocated to all ratepayers or PG&E shareholders will be addressed in a separate phase of this proceeding.” Decision, page 2.

In spite of the above, I think it is worth highlighting some major points from Commissioner Simon’s Concurrence:

“Contrary to anti-wireless activist health concerns, as described in the Decision, neither the Institute of Electrical and Electronics Engineers (IEEE), the National Council on Radiation Protection and Measurements (NCRP), the California Council on Science and Technology (CCST), the U.S. Environmental Protection Agency (EPA), nor the Food and Drug Administration (FDA) have expressed concerns about human exposure to SmartMeter radio frequency emissions. I find no reason to distrust the data dismissing the existence of health impacts of this important global technology. I hope going forward, more awareness of the societal benefits will counterbalance the one-sided objections voiced at this Commission.

As I have pointed out in speeches and meetings in the Silicon Valley and in wireless industry forums, I am astonished that beneficiaries of wireless technologies—including, for example, programmers of iPhone and Android applications, analysts who mine and aggregate usage data to hedge commodity risks, retailers who offer internet access and their customers who seek out public WiFi—have been “radio silent” throughout this proceeding and in the general public forum. I urge them to come forward and to speak in support of their beneficial interests.” Commissioner Timothy Alan Simon

Wireless industry, where are you? I join Commissioner Simon in encouraging you to speak on this issue. It is an important component of our energy future.

Although PJM headquarters is just minutes from Steven & Lee's Valley Forge office, it took a recent trip to Washington, DC, for me to catch up with its President and CEO, Terry Boston. PJM manages the largest power grid in North America and the largest electricity market in the world. It is a regional transmission organization (RTO) that coordinates the movement of wholesale electricity, operates a competitive wholesale electricity market and manages the high-voltage electricity grid to ensure reliability for more than 58 million people. While attending PJM's conference, Grid 20/20: Focus on Markets, Terry made time to discuss some key issues with me.

Evers: I really appreciate you taking the time to meet with me. This is a real privilege. Terry, what is the most exciting thing about your job?

Boston: I guess dealing with all of the customers that we have. We’re up to 756 customers now and being able to have innovative markets that they can play in is probably the most exciting part. I love the technology. I’m a geek at heart. At the end of the day, the customer service function is probably the most fun part.

Evers: What keeps you up at night?

Boston: Cyber security. It has changed in the last three to four years. It’s no longer just a matter of trying to keep kids out of the system. Making sure we have security built in not bolted on to all of our networks and systems is probably the most important part of what we do. You have to realize this is a new world we’re in. We have to be very diligent, and we need resilience. Resilience is the ability to recover after a breach or intrusion.

Evers: I’m glad to hear you say that because after today’s session, I sat there thinking about distributed generation and I wondered whether or not cyber security a paradox. Is it even real? Can we ever really have cyber security? So I love the focus on the resiliency part.

Boston: That’s interesting. I was pleased to read a report that went to the President last year that basically came to the conclusion that you can’t protect against everything. The President had an interesting quote, and it goes something like this: “We have to accept the world as it is.” There will be hurricanes, there will be snowstorms like the October snowstorm, and we have to be realistic. Resiliency is about how well you recover after that big event, like Hurricane Irene or a cyber-attack.

Evers: That is a perfect transition into my next question. I heard you talk about some of extreme conditions in the past year: an earthquake, very hot days or the early snowstorm that I call the “October surprise.” As a result of the snowstorm that hit the Northeast, some top executives came under fire and one even resigned. I thought, “Is this fair? What if people could see what linemen have to go through to restore service? Often the conditions are not great.” What ideas or suggestions do you have that can help the public have realistic expectations for reliability?

Boston: First of all, there is the weather roulette wheel. You never know what you’re going to have thrown at you in terms of extreme weather. This year has been extreme as I mentioned in the meeting here today. We had an ice storm in February, tornadoes in mid-April, the hottest day of record on July 22 of this year, Hurricane Irene, Tropical Storm Lee, and then an “October surprise” as you call it. It was an unusual snowstorm. A combination of the leaves still on the trees, very wet snow and high winds. Electric distribution is going to be affected. The one thing that I’ve always done is to show the linemen out there working. Show what they have to go through to make a storm restoration work. You have to get good information out. Our staff learned from Texas where they had some problems in February in an extreme cold spell. The social media got the word out to lots of people. When they had rotating brownouts, they used social media to get to people, not just television.

Evers: You know I recently took a trip to Kenya this summer with my church. We were in remote villages six hours outside of Kenya where there is no infrastructure.

Boston: You were thankful for any grid.

Evers: Exactly. Reflecting on it caused me to think about the snowstorm and how we complain, how we’re a victim of our own really good reliability. Have we created the expectation of perfect service?

Boston: Generally speaking, worldwide you don’t have five nines — 99.999% reliable service on most of the transmission network.  We are very fortunate that we do have that here in this country. We have a digital economy, though, that runs on electricity. It is the fuel of the digital economy and it just shows the importance of what we have to do every day. And while the innovation summit we’re at here is about markets, it’s also very much about how to improve reliability. Electricity is the lifeblood of our economy and the lifelines to our homes.

Evers: Absolutely.

Boston: And it’s not fun when the power’s off.

Evers: Right. And you really can’t do anything without electricity. You need electricity just to innovate and create new products like the iPhone. 

So here is my last question. What does the man responsible for the largest power grid in the U.S. do for fun? How do you take vacation with such heavy responsibility?

Boston: We have three kids. Two on the West Coast and one on the far West Coast in Hawaii, and we travel with them. We love to go boating and water skiing. Unfortunately, the kids are so far away now and busy that we have them one at a time. But recently we went hiking in Hawaii with our son, and it was a good trip. Our daughter, Rachel, is an actress. We are very tightly tied to her career. We go to her shows. She’s coming to visit in December. She just won an award, the Emergent Talent Award in the New York Film Festival. Celebrating with her is another thing that we do for fun.

Evers: Wonderful.

Boston: I have a world class woodworking shop. I can’t think of a single tool that I do not own.

Evers: You make your own furniture and stuff like that?

Boston: I’ve made a lot of walnut furniture from kids’ cradles to grandfather clocks to some of the furniture in our house. As a matter of fact, I built a passive solar home, and I did all of the finished crown molding. The house has 6,000 square feet, and it uses about the economic equivalent of a cappuccino from Starbucks’ in terms of energy. So about less than $5.00 of electricity and energy a day. I built it in 1988, but it is designed-built to energy standards that people would be very pleased with today.

Evers: Terry, thank you so much for your time. I appreciate it.

November 29th and 30th, 2011, are high-powered days for those in the electric industry. Tuesday, FERC began its two-day technical conference on reliability and not too far away at the Grand Hyatt in DC, Pennsylvania-based PJM kicked off Grid 20/20, a forum to provide PJM members and policy makers with cutting-edge ideas, visions and technologies to transform electricity.

I decided to attend Grid 20/20 to learn about the innovative developments. I was encouraged to hear about the creative technologies being deployed, as well as those on the horizon. Opening remarks were given by PJM's CEO Terry Boston. It was interesting to hear the top executive of the mega RTO (Regional Transmission Operator) share his concerns regarding cyber security. He stressed that as we digitize the grid, "cyber security must be built into the new digital grid and not bolted on." 

ARPA-E's Arun Majumdar gave the Keynote Address showcasing some amazing new inventions including a battery that can run on water. I learned that Advanced Research Projects Agency - Energy (ARPA-E) is the country's only agency devoted to transformational energy research. These projects are risky, yet if successful, are game-changers capable of creating new industries and transforming our energy economy. Many will be showcased at the Energy Innovation Summit taking place on February 27-29, 2012. 

The afternoon also included two thought-provoking panels: Balancing Supply and Demand and Engaging the Customer. Demand Response (DR) has real value to those volunteering to participate. However, the cumulative effect benefits society as a whole and can eliminate the need for additional generation. The pilots, challenges and success shared by the panelists sparked a lively discussion. Everyone agrees customer education and engagement is critical and effective communication will require more than the traditional bill insert! 

Grid 20/20 and FERC's technical conference continues today. I am sure both will be energizing.

How does one governmental agency impact another? This question will be center stage as FERC examines the impact recent EPA regulations have on the reliability of the bulk power system at its upcoming technical conference. The Commission-lead day and a half agenda will include panelists addressing the Commission’s questions related to these topics:

Panel I: Identifying Priorities for NERC Activities
Panel II: Incorporating Lessons Learned into a More Reliable Grid
Panel III: Presentations and Discussion on the Current State of Processes for Identifying Unit-Specific Local or Regional Reliability Issues in Response to Final EPA Regulations
Panel IV: Discussion on multi-jurisdictional processes

While all of the above issues are important, judging from the additional questions being asked by Commissioner Moeller, panel III will be very popular. Here’s the first question:

“Can the Commission agree that upcoming EPA rules, if enacted, would present a reliability problem? What evidence supports the assertion of a reliability problem? What evidence mitigates concerns about reliability? Some view the recent study by FERC staff as “informal” or as “irrelevant” –but to the extent that staff’s study is informal or irrelevant, then what other evidence available at this time can FERC rely upon to consider reliability issues?”

- REQUEST FOR EVIDENCE OF COMMISSIONER PHILIP D. MOELLER ON EPA ISSUES FOR THE NOVEMBER 2011 RELIABILITY CONFERENCE

The conference will be held:
November 29, 2011 1:00 PM – 5:00 PM
November 30, 2011 9:00 AM – 4:00 PM
Federal Energy Regulatory Commission
Commission Meeting Room
888 First Street, NE
Washington, DC 20426 

The Commission will be accepting written comments regarding the matters discussed at this technical conference. Any person or entity wishing to submit written comments regarding the matters discussed at the conference should submit such comments in Docket No. AD12-1-000 on or before December 9, 2011.

The National Institute of Standards and Technology (NIST) seeks comments on the draft NIST Framework and Roadmap for Smart Grid Interoperability Standards, Release 2.0. Comments must be received on or before 5 p.m. Eastern time on November 25, 2011 and should be sent to the Office of the National Coordinator for Smart Grid Interoperability, National Institute of Standards and Technology, 100 Bureau Drive, Mail Stop 8100, Gaithersburg, MD 20899-8100 or by e-mail at nistsgfwcmts@nist.gov.

Figure 3-3 below is an illustration from the new report that shows the information networks where Smart Grid control and data messages are exchanged. Clouds are used to illustrate networks handling two-way communications between devices and applications. The devices and applications are represented by rectangular boxes and belong to the seven different domains: Customer, Generation, Transmission, Distribution, Operations, Markets and Service Provider.

I recently had a chance to talk with my friend, SaLisa Berrien, Senior Director of Business Development at ENBALA Power Networks to learn more about its grid balance service, also known as regulation service.

Evers: Please explain how Grid Balance services differ from DR. 

Berrien: The difference between Regulation Service (aka Grid Balance) and Demand Response is that Grid Balance works within the operational parameters of industrial and commercial clients. There are no curtailments for extended periods of time. Grid Balance is bi-directional, meaning clients add and take load off the grid, whereas Demand Response is only taking load off the grid. Grid Balance is capacity and energy neutral. Clients do not create a new peak or use more energy than they would typically use on a daily basis.

Evers: Who can participate in this?

Berrien: Ideal network participants have large electrical equipment that operates under relatively consistent workload and has some degree of process flexibility or functional range.

Evers: Will businesses have to shut down or limit their operations?

Berrien: No. The impact of the ENBALA Power Network is seamless to the client. Our technology respects the need for each asset to fulfill its primary duty and the network is designed to have no impact on process objectives, total energy consumption or operational costs.

Evers: How do they financially benefit?

Berrien: Clients are paid for the amount of Grid Balance their assets deliver to their regional electricity system operator. Each asset’s value is dependent on process flexibility, availability, and corresponding Grid Balance demand. The more flexible an asset, the more Grid Balance it can provide, and the more money the asset will make for the client. The average payment to clients is based on historical pricing, future projections and their asset availability. The estimated annual payment per MW is $35,000-$50,000.

Evers: Can you give us an example of how it works?

Berrien: Our videos walk visitors through exactly how the ENBALA Power Network consolidates asset flexibility to provide Grid Balance to regional electricity system operators.

Evers: Thank you SaLisa for taking the time to explain Grid Balance.

The Subcommittee on Technology and Innovation announced that it will hold smart grid hearings on September 8, 2011, from 10 a.m. - noon at 2318 Rayburn HOB, Washington, DC 20515. Chaired by Rep. Ben Quayle (R-AZ), this subcommittee has legislative jurisdiction, general oversight and investigative authority on all matters relating to competitiveness, technology, standards and innovation.

Witnesses:

• Dr. George Arnold, National Coordinator for Smart Grid Interoperability, National Institute of Standards and Technology
• The Honorable Donna Nelson, Chairman, Public Utility Commission of Texas
• Mr. John Caskey, Assistant Vice President, Industry Operations, National Electrical Manufacturers Association
• Mr. Rik Drummond, Chief Executive Officer and Chief Scientist, The Drummond Group

The hearing will be webcast live.

Considering all the potential benefits of the Smart Grid, what policies are needed to help it succeed? That's the question addressed in A Policy Framework for the 21st Century Grid: Enabling Our Secure Energy Future, a new report developed by a special White House subcommittee. The Federal Government, building on the policy direction set forth in the Energy Independence and Security Act of 2007 and the Recovery Act’s historic investments in innovation, offers this policy framework to chart a path forward on the imperative to modernize the grid to take advantage of opportunities made possible by modern information, energy, and communications technology. This framework is premised on four pillars:

1. Enabling cost-effective smart grid investments
2. Unlocking the potential for innovation in the electric sector
3. Empowering consumers and enabling them to make informed decisions
4. Securing the grid

Each pillar supports a set of policy recommendations that focus on how to facilitate a smarter and more secure grid. Progress in all four areas, as part of an overall grid modernization effort, will require sustained cooperation between the private sector, state and local governments, the Federal Government, consumer groups, and other stakeholders. The report describes how the pillars will assist in promoting benefits of the smart grid:

1. Scale what works to enable cost-effective smart grid investments
2. Unlock the innovation potential in the electricity sector with a continued focus on open standards
3. Empower consumers with education, access to their own energy usage information in   consumer- and computer-friendly formats, and improved privacy safeguards and consumer protections
4. Continue to secure the grid against natural or other disasters.

The White House believes advancement of the four pillars plays an essential role in helping the United States to lead the world in the 21st century economy.

The Department of Energy’s (DOE) National Energy Technology Laboratory (NETL) intends to issue, on behalf of the DOE Office of Electricity Delivery and Energy Reliability, a Funding Opportunity Announcement (FOA) entitled “Smart Grid Consumer Engagement.” The objective of this FOA is enhance the awareness and knowledge of smart grid attributes and benefits for consumers. Plans can be on a community level or encompass state-wide or regional programming. Consumer advocacy groups are expected to lead the application process and preference will be given coalitions with members from consumer advocacy groups, community groups, utilities, technology/application vendors, state and local governments.

Community-Level Smart Grid Consumer Engagement
These projects are expected to establish and carry out smart grid consumer engagement programs targeting all residential electricity consumers within a single utility service territory. Up to $300,000 will be provided to fund 50% of the costs for projects in this category.

State-Level or Regional-Level Smart Grid Consumer Engagement 
These projects are expected to establish and carry out smart grid consumer engagement programs targeting all residential electricity consumers, within a single state or across two or more states, served by two or more utilities. Up to $750,000 will be awarded to fund 50% of the costs for projects in this category.

The release of this FOA is subject to Congressional appropriations and should occur on or around April 15, 2011.

Update: DOE issued a revision to the Notice of Intent to change the expected issue date of the Funding Opportunity Announcement from April 15, 2011 to May 31, 2011.  The new notice is attached here.

Over 200 companies began showcasing their energy efficiency, conservation or management solutions in Philadelphia yesterday and will continue today. The event, presented by the Association of Energy Engineers and hosted by the Philadelphia Gas Works offers a cornucopia of great energy products and services.

Particularly noticeable were the efforts to develop unique products and services to capture new market segments. Crunch Energy, for example, offers fun, easy-to-use energy consumption diagnostics and management tools for companies that, according to its representative, “perhaps don’t need a full-time energy manager, but need 1/8 of a manager.”   

Old-fashioned ideas were given a new look – such as effectively transferring the solar heat on the building’s outer surfaces into the interior for heating purposes – offered by ATAS International, or making ice during off-peak hours to cool the building during peak hours, offered by Calmac. 

In addition to all the great products and services, seminars were held on the topics of energy policy, demand response, green buildings, alternative-fuel vehicles and energy management. So much to learn, so little time!

Contemplate this familiar scenario. You left for vacation a few hours ago. Unfortunately, you have that nagging feeling. Something was left undone or was forgotten. You get almost to the end of your mental checklist and then it hits you – you forgot to adjust the thermostat. If it’s summer the air conditioning is running at full tilt while the house is empty. If it’s winter, the heat is keeping your empty bed nice and toasty. You simply will not be able to enjoy your vacation while contemplating the energy being wasted in an empty house. If only you could adjust your thermostat!

You can. To borrow a very popular saying, there’s an app for that! All you need to do is purchase and install an IP (internet protocol) thermostat or a Radio (WiFi) Thermostat. With one installed you can access and control your thermostat from any computer with an internet connection. Additionally, some can be controlled with a smart phone application.

An IP thermostat can also email you when the temperature in your home drops to a preset low temperature. This alerts you to possible freezing temperatures in your home and allows you to take action before you have a significant problem. 

Now envision the energy efficiency possibilities for businesses and commercial entities, schools, multi-dwelling buildings, vacation properties, churches and synagogues. There are limitless possibilities to assist in making energy efficiency easier and more convenient.

For more detailed information, check out some of these sites and video demos:

http://www.proliphix.com
http://www.smarthome.com/learningcenter.html
http://itunes.apple.com/us/app/ip-thermostat-controller/id305122439?
http://www.thermapros.com
http://www.radiothermostat.com

This may not be legal news, but we think this line of  smart grid products are energy efficiency game-changers and worth reporting. You'll thank us the next time you leave the heat on.

On January 18, 2011, I attended a breakfast sponsored by the Energy Bar Association and the Federal Communications Bar Association where DOE’s general counsel, Scott Blake Harris, discussed two DOE reports released on October 5, 2010, on Smart Grid policy issues: Data Access and Privacy Issues Related to Smart Grid Technologies (See my blog entry of January 7, 2011 for a summary) and Communications Requirements of Smart Grid Technologies. In highlighting the need for smart grid advancements, Scott pointed out that our current electric infrastructure was created before the micro-processor. DOE has supported the cause by investing $4.5 billion dollars in smart grid issues. Of this amount, $3.5 billion were in American Recovery and Reinvestment Act grants. After the breakfast, I sat down with Scott to further discuss the issues:

Linda Evers: We’ve heard a lot about the Home Area Network and the benefits the Smart Grid is going to bring to residential customers. Can you talk about the benefits it will bring to businesses?

Scott Blake Harris: You don’t get benefits for consumers without benefitting the economy more broadly. The idea is that some Smart Grid Technologies will enable consumers to control their costs and monitor their energy usage. In doing so, consumers will be buying new devices, such as advanced electronics, which in turn will allow companies to offer new services. You will find that consumers and businesses both benefit. In addition, I think it will help all consumers, including businesses, control their energy costs and their energy usage. And as the smart grid adds intelligence to the network, you will find that power generator, transmission and distribution companies will receive will benefits as well.

Evers: 2010 was a really, really rough year for Smart Meters. In his Public Utilities Blog – PUB, Michael Burr referred to it as a “Smart Grid Smackdown.” Many electric distribution companies were forced to do additional filings to justify their Smart Meter Deployment Plans and also to address health concerns. Are there any plans to further educate the state commissions on some of these issues to possibly alleviate some of this going forward?

Harris: I don’t think anybody should be surprised that, as you roll out new technologies, a variety of questions will be asked. I also think it’s appropriate. I also think the utility sector has not had as much experience as other regulated sectors in terms of rolling out new technologies and answering all the questions that are raised by consumers and advocacy groups. So I think what we saw over the summer was not a “smack down,” but was a normal response to the roll-out of new technologies.

Moreover, although questions were raised and utilities ended up having to file more information with the State PUCs, in the end most PUCs allowed utilities to go forward with their plans. I don’t see anything terrible about the utilities having to provide additional justification to the PUCs to win public approval.  

I do believe these technologies are valuable, safe and economically viable. And I don’t think anyone needs to educate PUCs or educate state decision makers. These are very bright, very capable people. They will evaluate the evidence themselves, they will find precedents and they will inform themselves about the information that is available.

Having said that, I do think there is a role for the Department of Energy and the federal government. We have just created a web portal (www.gc.energy.gov/1592.htm) where we hope to bring together states, federal agencies, utilities, telecom companies and other stakeholders. We hope this site will become a resource for decision makers to learn about “best practices” and to access information – technical and otherwise – that will be of assistance.

Evers: Finally, you and I could probably talk about the Smart Grid for several hours and still have many things left to say about it. But the general public still may have no idea what we’re talking about when we say “Smart Grid.” Even many business owners, where having real time data can certainly help them manage their expenses and perhaps even become more profitable are not as aware of the Smart Grid as they should be. Share with me your ideas on what you think can be done to better inform the public?

Harris: There are two answers to that. First of all, for a roll-out of Smart Grid technologies to take off, particularly if you are talking about from the meter into the home, consumers are going to have to be more engaged.

Second, I don’t think consumers need to fully understand the Smart Grid. For example, I will be willing to bet that right now as you interview me on your iPhone, you don’t know what portion of the spectrum you will be transmitting on when you text or make your next call. I’m reasonably sure you can’t tell me how your text messaging is different from your phone transmission, which is different from how you send or receive your e-mail. It doesn’t matter, right? You have an iPhone and use these services because they are functional and they are cool.

Evers: And I don't need to know. It works when I need it. That’s all I care about, right?

Harris: That’s right. It meets your needs, it’s fun and it can do all this great stuff. Consumers will get engaged with the Smart Grid when they get the devices and services they want and need. I believe that’s coming. I also believe regulators, and government officials like me, tend to underestimate what consumers will be interested in and how they will react. And my guess is as we look to the future of the Smart Grid and home area networks, we are underestimating what businesses will offer to consumers and how consumers will react. They will offer, I believe, the Smart Grid equivalent of an iPhone. That’s when it’ll take off in consumer consciousness.