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The energy utilities industry may be one of the last great technological frontiers
of North America. This industry has experienced little innovation over its 100-year
lifespan.
But now the utility industry is about to embark on a revolutionary journey:
the Smart Grid. Utilities and information technology companies will be surrounding
the nation's electric grid with a digital grid that will provide consumers and
businesses with many value propositions.
One of the key components to this "smart" electric grid is the upgrade
of conventional mechanical electric meters at homes and businesses to new digital
"smart meters" armed with wireless two-way communications technology.
This technology -- partially fueled by the Obama administration's $3.4 billion
in stimulus dollars supporting the "modernization" of the nation's
electric grid -- requires one of the largest IT "upgrades" that the
nation will see in decades, and provides new product, service and market opportunities
for utilities, generators, power traders and information technology companies.
So the big question is, "When will the Smart Grid be available?"
Smart meter implementations have already been underway across the United States
for the past two years, led largely by the efforts of California and Texas.
Consider these programs now underway:
- Dallas-based Oncor Energy, with a meter base of roughly two million, expects
600,000 smart meters in place by the end of this year.
- Houston-based CenterPoint Energy will have 145,000 smart meters deployed
by the end of 2009, and all 2.4 million meters in CenterPoint's region will
be upgraded by 2014.
- Austin Energy, the city-owned utility based in the Texas capital, completed
all 410,000 smart meter upgrades before the end of 2009.
- Pacific Gas & Electric (PG&E) of California has received approval
from the California Public Utilities commission for a $2.4 billion smart meter
upgrade. PG&E estimates by the end of 2011, 5.2 million electricity meters
in California will be "smart."
- Five New England states have also received $226 million from the federal
stimulus bill to implement 832,000 smart meters in their regions.
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