Duke Energy to bring ‘smart grid’ to Indiana

Business Courier of Cincinnati
Monday, June 8, 2009, 11:24am EDT

Duke Energy Corp. said it will build a “smart grid” power delivery system in Indiana, after reaching a settlement with the Indiana Office of Utility Consumer Counselor and other groups.

The settlement also included Nucor Steel, the Duke Energy Indiana Industrial Group and the Citizens Action Coalition of Indiana Inc.

The $445 million project is subject to approval by the Indiana Utility Regulatory Commission and is expected to take five to six years. Duke said in a news release that it will apply for stimulus funds through the American Recovery and Reinvestment Act to help pay for the project.

The current analog system used by most energy companies delivers power and does little else, said Jim Stanley, president of Duke Energy Indiana.

“Smart grid, with its digital, two-way communication capabilities, will transform how we operate our system – improving customer service, power reliability and the efficiency of our transmission and distribution system,” he said in the release.

The smart grid's benefits that include:

• The ability of consumers to track their energy usage daily and use “smart” appliances as they come on the market. Eventually, consumers would be able to monitor and manage their energy use online, and use other cost- and energy-saving programs.

• A communications system that would allow Duke to detect trouble on power lines before outages develop and move to prevent them.

• Smart meters that reduce the expense of on-site reading, and provide more information to the company. Duke hopes to install 800,000 meters throughout its 69-county service area.

• Other technology to automate the power delivery system and increase its reliability.

The company has about 775,000 customers in Indiana, making it the largest electric supplier in the state.

Duke Energy (NYSE: DUK), based in Charlotte, N.C., includes the former Cincinnati Gas & Electric Co., Union Light, Heat and Power in Kentucky and PSI Energy in Indiana. The company also operates Duke Power in the Carolinas.