Fast Facts: "Soon, approximately 2 million consumers in Texas will have the option to purchase BPL technology services,

which will include not only high-speed Internet access, but also voice and television services."
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Live Wires

April 2006 By Sherry Watkins
Power lines are starting to buzz with more than just electricity.

With broadband over power line (BPL) technology, voice and data traffic can travel through existing electricity infrastructures, providing power-packed, high-speed Internet access to consumers through every electrical outlet in their homes or businesses.

Soon, approximately 2 million consumers in Texas will have the option to purchase BPL technology services, which will include not only high-speed Internet access, but also voice and television services.

In December 2005, TXU Electric Delivery partnered with Current Communications Group in an agreement to deploy BPL technology throughout the Dallas-Fort Worth metro area and other areas serviced by TXU, which delivers electricity to approximately 2.7 million customers of retail electric providers across parts of Texas.

The rollout is expected to begin in October 2006 and take three to four years to complete.

Over the next few months, Current and TXU will work out implementation details, including a starting point, although the metro area would provide a dense customer base for Current to initially offer broadband services.

"We won't be working in stages, we'll just start moving through the service territory as fast as we can with the crews Current hires and install in a continuous three- to four-year effort," said Steve Houle, vice president of technology for TXU Electric Delivery.

The partnership contains clearly defined roles: TXU is a Current customer using the company's BPL technology to monitor and control the electrical network, and read meters through an automated process. On the flip side, Current gains access to the power lines and the ability to commercialize broadband services through BPL technology.


Electrified Broadband
BPL technology involves changing digital signals generated by consumers into radio frequencies that traverse the same twisted pair copper wiring that delivers electricity. Inversely, for consumers to access the data traveling the wires, the radio signal is transformed back into a digital format appropriate for personal computers, voice over Internet protocol (VoIP) telephones or television cable.

Broadband signal transmission over twisted pair wiring is not new. For instance, phone companies provide DSL over twisted pair, installing a modem at the customer site to take the signal off the wire once the signal arrives.

"The innovation is not to put broadband signals on the copper pair, but to put them on the electric power grid without interfering with the electric power distribution, and therefore, have a joint use," said Houle.

To achieve joint operability, Current will install the necessary BPL equipment on TXU's electric grid. "The communications signal will be every place our electric facilities are without us having to do a thing," said Houle.

The equipment looks similar to the electric equipment already installed throughout the grid and includes a coupler, which enables broadband traffic over the medium-voltage primary lines; a backhaul point, which is the primary data router that connects the BPL system to the local point of presence (or Internet service provider); a bridge, which routes and controls data traffic and serves as a gateway to customers; and a network management system that enables TXU to monitor and control the BPL system, conduct automated provisioning processes and manage network information.

For Current's broadband service customers, the only device needed is a BPL modem from HomePlug Powerline Alliance Inc., which resembles a cell phone charger. The modem can be plugged into any outlet where BPL service is received and connects computers to the Internet via USB, Ethernet or 802.11 Wi-Fi technology. With the BPL modem, no installation or inside wiring is required.

"You don't need to have telephone or cable outlets if you have BPL because you can run both over the BPL system," said Jay Birnbaum, vice president and general counsel for Current Communications. "Unlike cable and DSL, it works at every outlet in the house. You can pick up the computer and the modem, and plug it into another wall in the house and you're ready to go -- you're not fettered to one location."


More Knowledge, More Power
Current's Smart Grid Services will provide TXU with enhanced service capabilities, which include the ability to monitor the electric distribution network remotely, to quickly resolve customer outages by identifying them early on, and to perform automated meter reading.

BPL technology allows TXU to see network status in real time through two-way communication -- a big advantage according to Houle. Without BPL, communication travels in one direction and TXU cannot receive automatic outage notifications. A customer must call in for TXU to know that a problem exists, and even then, isolating the issue requires employees to physically investigate the source of the problem. In addition, major blackouts can occur when electrical problems are left untended, which can cost the government and economy money.

"With BPL, we'll know when a piece of equipment is out before a customer calls in," he said, adding that TXU can then dispatch crews more effectively when a problem occurs.

TXU's electric meters can be managed remotely through the Smart Grid Services, so employees no longer have to travel from site to site to read each meter, or use special equipment such as cell phone modems.

Automated service administration will allow TXU to perform service changes when customers relocate. Customers won't have to wait for someone to come out and start their service, Houle explained.


Sparking New Legislation
The Texas Legislature played a key role approving the introduction of BPL technology services in the state. Without any existing rules, new technology must receive necessary regulations from government before anyone invests in it, Houle said.

In Texas, that's exactly what happened. The Legislature approved the use of BPL technology in Texas through SB 5 in July 2005, and outlined the necessary guidelines for electric utility companies seeking to own or operate BPL systems while ultimately giving them control.

"The electric utility shall have the right to decide, in its sole discretion, whether to implement BPL, and may not be penalized for deciding to implement or not to implement BPL," according to the bill.

The bill also acknowledges the anticipated statewide benefits of BPL: "The Legislature finds that access to quality, high-speed broadband services is important to this state. BPL deployment in Texas has the potential to extend broadband service to customers where broadband access is currently not available, and may provide an additional option for existing broadband consumers in Texas, resulting in a more competitive market for broadband services."

Sen. Troy Fraser, who authored the bill, stated, "This is a huge step forward for Texas consumers and the communications industry."

Fraser also said that BPL technology will bring more revenue and jobs to the state through fair competition in the communications industry.

BPL technology is quickly gaining attention throughout America.

"Broadband over power lines is a powerful new technology that has enabled many communities and citizens to receive communications services that otherwise would be unavailable, unreliable or very costly," said Michael Hyland, vice president of engineering services for the American Public Power Association, which represents more than 2,000 community- and state-owned electric utilities. "BPL has developed into a niche market, and may continue to grow in popularity in certain circumstances."

Although Hyland recognizes the emerging popularity of BPL technology, he adds that it may not be the best solution for every circumstance.

"In areas where fiber-optic cables are already installed, or multiple cable operators are vying for existence, BPL might not make as much sense," he said. "We also see Wi-Fi and Wi-Mesh systems as possible alternatives to BPL in many communities."

BPL did, however, seem the best solution for TXU, Houle said.

"We're in the smart grid business," he said. "We're trying to improve our reliability and customer service to be the best possible -- that's our focus. This is an excellent partnership and tool to help us get to the next step."