NORTHEAST Utilities and the Connecticut Municipal Electrical Energy Cooperative aim to tap federal stimulus money for 'smart grid'

Utilities aim to tap federal stimulus money for 'smart grid'
Thu. July 16, 2009; Posted: 06:33 AM

Jul 16, 2009 (New Haven Register - McClatchy-Tribune Information Services via COMTEX) -- CNLPM | Quote | Chart | News | PowerRating -- Northeast Utilities and the Connecticut Municipal Electrical Energy Cooperative said Wednesday they are each seeking millions of dollars in federal stimulus money through the federal Department of Energy to pay for technology that will help consumers use electricity more wisely.
NU will apply for between $50 million and $75 million in DOE grant money to install so-called "smart grid" technology at its subsidiaries in New Hampshire and Western Massachusetts, as well as expand the use of the equipment at the Connecticut Light & Power Co., said Al Lara, a spokesman for the Berlin, Conn.-based corporate parent.

At the same time NU was announcing its plans, Norwichbased CMEEC was in Wallingford outlining its plans to seek $5 million in federal money to cover half the cost of a $10.3 million plant to launch a smart grid pilot program among the seven communities it serves.

Wallingford is one of those seven communities with public power companies, and would be responsible for coming up with roughly $1.5 million of the project cost that wouldn't be covered by the grant, said George Adair, the town's public utilities director.

Smart grid technology refers to devices that transmit real-time price information for electricity or sends some other kind of signal directly to consumers, allowing them to determine how to use energy more efficiently, CMEEC officials explained to Wallingford's Public Utilities Commission.

"What we are doing is allowing customers ... to help themselves," said Maurice Scully, CMEEC executive director. Scully said initial estimates are that the 3,000 commercial and industrial customers and the 2,000 residential consumers who participate in the pilot program could collectively avoid $7.4 million in electric costs over 10 years, compared to those who didn't participate in the program.

CL&P is already in the midst of a three-month pilot program called Plan-It Wise that is testing the technology in 1,500 businesses around the state, and in 1,500 homes in the Hartford and Stamford areas, Lara said.

The program began June 1 and runs through August, Lara said. The federal grant money would be used to install the smart grid devices in additional homes.

"We do expect the majority of the money to be used in Connecticut because we've already laid a foundation for a smart grid there," Lara said.

The installation and expansion of smart grid technology by CL&P, as well as by sister companies Public Service Co. of New Hampshire and Western Massachusetts Electric Co. will cost between $100 million and $175 million, Lara said. If NU is awarded the grant, it would pay the remaining 50 percent of the costs associated with the project, he said.

The smart grid technology in use in the CL&P pilot program includes a device that changes color as the actual cost that the utility pays to supply the electricity changes from hour to hour, Lara said. When the device glows red, that signals to the consumer that the cost of electricity being used is at a peak, he said.

But smart grid technology is not without its detractors.

The plan that WMECO officials have presented to Bay State utility regulators would have some lowincome customers pay for electricity in advance, while others would be charged a premium for any power used beyond 300 kilowatt hours per month.

The pilot program, which WMECO hopes to roll out next summer, is drawing criticism from Massachusetts Attorney General Martha Coakley.

In Greater New Haven, two Wallingford PUC commissioners expressed misgivings about smart grid technology.

"My concern is it's a step towards having the RTOs (Regional Transmission Organizations like grid operator ISONew England) tell us when we can run things," said Robert Beaumont, PUC chairman. "I see the feds pushing this and I'm skeptical."