
WASHINGTON — More than a century after Thomas Edison invented a reliable light bulb, the nation’s electricity distribution system, an aging spider web of power lines, is poised to move into the digital age.
The “smart grid” has become the buzz of the electric power industry, at the White House and among members of Congress.
What smart grid visionaries see coming are home thermostats and appliances that adjust automatically depending on the cost of power; where a water heater may get juice from a neighbor’s rooftop solar panel; and where on a scorching hot day a plug-in hybrid electric car charges one minute and the next sends electricity back to the grid to help head off a brownout. It is where utilities get instant feedback on a transformer outage, shift easily among energy sources, integrating wind and solar energy with electricity from coal-burning power plants, and go into homes and businesses to automatically adjust power use based on prearranged agreements.
“It’s the marriage of information technology and automation technology with the existing electricity network. This is the energy Internet,” said Bob Gilligan, vice president for transmission at GE Energy, which is aggressively pursuing smart-grid development.
Hundreds of technology companies and almost every major electric utility company see smart grid as the future. That interest got a boost with the availability of $4.5 billion in federal economic recovery money for smart-grid technology.
But smart grid won’t be cheap; cost estimates run as high as $75 billion. Who’s going to pay the bill? Will consumers get the payback they are promised? Might “smart meters” be too intrusive? Could an end-to- end computerization of the grid increase the risk of cyberattacks?
There are glimpses of what the future grid might look like.
On the University of Colorado campus in Boulder, the chancellor’s home has been turned into a smart-grid showhouse as part of a citywide $100 million demonstration project spearheaded by Xcel Energy. The home has a laptop-controlled electricity management system that integrates a rooftop solar panel with grid-supplied power and tracks energy use as well as equipment to charge a plug-in hybrid electric car.
“We’ve got about 70 (smart grid) pilots all over the country right now,” said Mike Oldak, an expert on smart grid at the Edison Electric Institute, which represents investor-owned power companies.
An Energy Department study projects energy savings of 5 percent to 15 percent from smart grid. But the cost and payback have some state regulators worried.
“We need to demonstrate to folks that there’s a benefit here before we ask them to pay for this stuff,” says Frederick Butler, New Jersey’s utility commission chair and president of NARUC, the group that represents these state agencies.



