MASSACHUSETTS ENERGY BILL WOULD REQUIRE SMART GRID PILOT/TIME OF USE PRICING !!!

MASSACHUSETTS ENERGY BILL WOULD REQUIRE
SMART GRID PILOT/TIME OF USE PRICING

This month, the Massachusetts State Senate Ways and Means Committee voted to approve revised energy bill S.2457; which includes provisions for Smart Grid and time of use pricing. By September 1, 2008, section 77 of the bill requires utilities to submit a proposed plan to the state PUC establishing a 6-month pilot program for a "Smart Grid" which utilizes the electric delivery system, advanced "smart" meters, and other advanced technology to operate an integrated grid network communication system in a limited geographic area. According to the bill, each Smart Grid pilot program includes, advanced "smart" meters which provide real time measurement and communication of energy consumption, implementation of phone and e-mail notification systems to warn those customers of high prices so they can reduce their usage accordingly, automated load management systems embedded within current demand-side management programs and remote status detection and operation of distribution system equipment. The bill also necessitates utilities file a proposal by September 1, 2008 for a 6 month pilot program that requires time of use or hourly pricing for commodity service for a minimum of 0.5% of the company's customers. According to the bill, those customers who actively participate in the pilot would reduce peak loads by a minimum of 5%. Under the provisions of the bill, the state PUC would be required to review and approve or modify these proposals on or before January 1, 2009; detailing the operation and results of such programs, including information concerning changes in consumer's energy use patterns, any identified disincentives to the deployment of Smart Grid systems throughout the Commonwealth, an assessment of the value of the program to both participants and non-participants, and recommendations concerning modification or expansion of the programs and further deployment and implementation.