Smart Meters, Smart Future

 

What is the electric grid?
The electric grid is the path over which electricity flows from power generating facilities across high-voltage, high volume transmission lines to local communities where substations feed distribution circuits directly to consumers. The grid interconnects generators, power transmission systems, local distribution utilities and end users of electricity. The system is designed and operated for safe, reliable electric reliability under constantly changing load conditions.

What makes it a smart grid?
Smart grid is an umbrella term for the modernization of electric transmission and distribution. It is an integration of a more modern electric grid with communications and information systems to better monitor and control the flow and consumption of energy. A smart grid delivers electricity from suppliers to consumers using advanced digital technology to save energy, reduce cost and increase reliability. The smart grid can better accommodate more distributed generation and alternative energy sources, such as solar, wind, battery storage and plug-in hybrid electric vehicles. A smart grid features more sensors, relays and intelligence to be “self healing” – automatically reacting to changing conditions and operating to avoid service interruptions and reduce outages and their duration.

What are the benefits?
A smart grid is more secure, interactive, can allow for “interoperability” with numerous generators, operators, and communications systems, and can deliver power with higher quality and better reliability. 
A smart grid can accommodate more diverse sources of electric generation like distributed (or on-site) generation, battery storage, and renewable energy like solar, wind, biomass, etc. These sources of generation tend to be distributed more locally rather than fewer centralized sites and operate more intermittently due to natural phenomena (like sun and wind).
A smart grid provides more real-time information to alert operators of outages or other changing conditions, compared to some cases when a customer must notify the utility about a service interruption.
Combined with advanced two-way meters, consumers can get more detailed and timely information about energy usage and be more motivated to take advantage of incentives to reduce consumption, especially during peak demand periods, and save money.

What are smart meters and its benefits?
A “smart” or advanced meter is an electric meter that acts as a gateway for two-way communications or information exchange between the consumer and the utility. In contrast to the conventional meter, it can measure energy usage in greater detail and provide usage data to the customer and utility in real time via in-home displays or Web-based programs. The utility can remotely activate or terminate service for new or moving customers, immediately be notified of interruptions, detect possible meter tampering, and offer new pricing programs to encourage peak load reduction and reduced overall energy usage. As consumers receive timely price signals, energy users can respond to higher prices, shift or change use of certain appliances, ease load on the electric grid, save money, and greatly lower wholesale power purchase costs.

How are smart meters different than current meters?
PECO currently operates with automated electric and gas meters, which can provide usage data via a wireless network to the company’s information systems for monthly billing.  The automated meters also can provide customer service representatives and account managers with daily or hourly energy usage.  Additionally, they can provide “last gasp” notification of outages and detect possible theft. The newer, advanced meters are considered “bi-directional” or two-way and can be linked to the utility’s communications network and smart grid, as well as a consumer’s home area network, programmable thermostat, and smart appliances.  In the largest utility installation at the time, PECO began installation of AMR in 1999.

What does automated metering infrastructure (AMI) mean?
The advanced metering infrastructure refers to the multi-tiered communications network and information systems to enable the capabilities and benefits of smart meters.

Who will pay for this large investment?
The total investment for AMI, smart meters and smart grid will be spread out over a period of 10 years, most likely.  PECO is seeking a federal stimulus grant that allow for faster, wider deployment of smart meters and at a lower cost to customers. A $200 million grant could reduce the cost by $125 per customer.  The actual amount and timing of rate recovery for this investment will be decided by the state Public Utility Commission. PECO believes the additional cost would be offset by better electric reliability and the opportunity to save as much as 15 percent on energy bills – or an aggregate of more than $1.5 billion over the life of the system.  The investment also will create hundreds of jobs for the meter and network installation and modernize the electric delivery system for the Greater Philadelphia region, which benefits the region’s economic development.

How will the smart meters be installed?
Under the federal stimulus program, PECO has proposed a targeted smart meter deployment initially with low income customers, as well as participating universities and commercial customers.  PECO’s plan calls for deployment of 600,000 meters by 2012.  Following regulatory approval, PECO plans full deployment for all customers over 10 years. The PUC also requires that smart meters to be available to any new customers and any customers who requests them within 30 months of state approval.

How soon will I be able to benefit from the smart meters?
By year end 2012, pending state and federal approval of proposed plans that will allow meter deployment and new pricing programs to allow cost savings for shifting or reducing energy usage. The PUC requires smart meters to be available to any new customers and any customers who requests them within 30 months of state approval. PECO anticipates full deployment over 10 years.

How will PECO decide where the first meters will be installed?
PECO will outline its deployment timeline and plans with the state PUC and U.S. DOE.  Smart meter installation will occur across the region with customers of all types.

What’s the role of each of the project partners?
PECO has partnered with Drexel University/Viridity Energy, Liberty Property Trust, Philadelphia Housing Authority, Ben Franklin Technology Partners, University of Pennsylvania, and the Delaware Valley Planning Commission. 

How will this project benefit customer service and reliability?
Smart meters and smart grid technology enables improved power quality, more efficient and secure power delivery, and enhanced electric reliability. The smart grid features transmission, substation and distribution circuit upgrades with automated sensors, relays and switches to better monitor and control power voltage and energy flow to customers. The smart grid is automated, integrated and self healing to sense and correct problems without operator involvement, in many cases. The more modern grid can provide more accurate and timely assessments of damage from storms and notify the utility immediately about outages.
From a customer service perspective, PECO will be able to remotely connect or terminate service for new or moving customers.  Additionally, participating customers can receive energy usage in real-time via in-home displays or Web-based programs to take advantage of new rate options and shift or reduce energy usage to save money.  The enhanced reliability and potential energy savings will provide substantial benefits to consumers and the regional economy – estimated to exceed $1.5 billion over the life of the system.

What savings will PECO realize from these investments?
PECO will be able to realize savings from more reliable operations, reduced peak load and overall energy consumption, and lower power supply purchases. The smart meters and smart grid can detect possible theft of electric service and remotely connect or terminate service for operation savings as well.

If the stimulus grant is received, how much will customers save?
If PECO receives a federal stimulus grant, the overall project cost could be reduced by as much as $200 million and PECO could accelerate deployment and bring benefits to customers more quickly.  From a customer perspective, the potential savings could be $125 a year.

When does PECO expect to receive responses from DOE/PUC?
The state PUC is expected to act on the PECO proposals by March 2010.

When will deployment start?
Upon regulatory approval, PECO will begin deployment of the communications networks and information systems in 2010 and 2011 and begin installation of the advanced meters in late 2011 and 2012.

How will customers/PECO use smart meters?
Customers can use the new smart meters to better understand how they usage energy, shift or reduce use of certain appliances, and save money under new rate options and pricing programs, including time of use rates, real time prices, and rebates for peak load reduction.  Customers can also take advantage of in-home displays or Web-based programs to review energy usage in real time or in hourly and daily internals, rather than getting only a monthly bill.  This way, consumers can react to price signals when wholesale or retail electric prices fluctuate, control appliance use, and save money. In the future, customers may also take advantage of on-site power generation and plug-in hybrid electric vehicles.