REGULATORS PREDICT SMART GRID R&D FUNDING FOR BPL

UPLC PowerLine 1-16-08

REGULATORS PREDICT SMART GRID R&D FUNDING FOR BPL

State regulators told Communications Daily this month that the Broadband over Power Line (BPL) industry stands to benefit from funding for Smart Grid R&D provided under the Energy Independence and Security Act of 2007, signed into law in mid-December. Tony Clark, Commissioner of the North Dakota Public Service Commission and Chair of NARUC's Telecommunications Committee, said that the big driver for BPL communications capabilities for consumers would be utilities first building the system to benefit the operations of the grid itself, with the communications aspect being a "free rider" on the system. James Ervin of the North Carolina Utilities Commission, who earlier headed the NARUC electricity committee, added that, "[t]o the extent that the electric utility is using BPL also for broadband services, the electric utility customers shouldn't be required to subsidize that activity because it provides unfairness among broadband providers." Specifically, the law authorizes $100,000,000 each year from 2008 to 2012 for the U.S. Department of Energy to implement a regional demonstration initiative for Smart Grid in up to five electricity control areas. Both regulators liked the idea of federal funding, but bristled about provisions in the bill that require states to consider Smart Grid investments by utilities. They noted that states already are seeing momentum for Smart Grid, even before the federal legislation, and they resisted federal government intrusion into matters of cost-recovery. In the words of Tony Clark, "[w]hat will drive the state commission to allow recovery on it [Smart Grid] is going to be whether it saves consumers money and is in the public interest." For more information on the Energy Independence and Security Act of 2007 and its Smart Grid provisions, contact the UPLC Legal/Regulatory Department.




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