POWER July 2011 - 54

POWER VIEWS
Modernizing the Grid,
Modernizing Our Industry
David K. Owens, executive vice president, Business Operations Group for the
Edison Electric Institute, comments on the progress U.S. utilities are making
toward a smarter electrical power grid.
E
veryone talks about the importance of a
stronger and smarter transmission system,
but it often seems that little is being
done. To get a read on the current state of
grid modernization, POWER Editor-in-Chief
Dr. Robert Peltier, PE talked with David K.
Owens, who has a unique overview of the
grid landscape thanks to his position at the
Edison Electric Institute (EEI).
What is the role of the electric utility
industry in this century?
Owens: The job of every electric company remains
the same as it has for the past 100 years-
delivering a reliable, affordable electricity
supply. But the world in which we are performing
that job continues to change dramatically.
We are moving toward a clean energy future.
We are building advanced generating
stations. We are expanding the use of renewables.
And we are creating a smarter grid.
What role is EEI playing in a clean
energy future?
Owens: Edison Electric Institute and its member
electric companies are particularly excited
by the potential that modernizing the grid has to
offer the industry and its customers. More than
90% of EEI's members already are working to
modernize their grid. These efforts will:
■ Empower customers to better control their
electricity use.
■ Encourage the development of renewable
energy sources.
■ Expand the use of distributed generation
sources.
■ Support the use electricity as a fuel for
cars and trucks.
■ Enhance the reliability and efficiency of
the power grid.
■ Improve service restoration.
■ Provide the framework and foundation for
future economic growth and global competitiveness.
In
particular, though, modernizing the grid
will help us to transform how we serve our
54
customers. For example, many EEI member
companies are now installing advanced metering
infrastructure and information technologies
to improve their call center functions. These
technologies will enable us to push more information
out to customers about their electricity
service-information about outage response/
restoration times, energy usage, and price alerts.
And the modern grid will enable us to use multiple
modes of communication to do so, including
phone, email, and text messaging.
What is a modernized electric grid
going to cost?
Owens: As part of its overall efforts to modernize
the grid, the electric power industry is
matching $3.4 billion in grant awards that the
U.S. Department of Energy (DOE) disbursed
as part of the American Reinvestment and
Recovery Act (ARRA) in 2009. This publicprivate
investment will total over $8 billion in
new investment in the grid.
As of early February 2011, EEI members
have spent approximately $577 million, or
about a third of their awarded smart grid
ARRA funds. This was a $58 million increase
over early January 2011. Con Edison
of New York offers one example of how these
funds are being spent.
Con Edison is using the approximately $192
million in funding it received from DOE to pursue
a number of projects to modernize both its
underground distribution system, which spans
more than 90,000 miles, and its overhead wire
system, which totals more than 30,000 miles.
The funding will help Con Edison to reduce
costs and improve operational flexibility.
The modernization projects include installing
state-of-the-art control and monitoring
equipment, as well as new underground
switches. Each switch has sensors that measure
a variety of information about the power
being distributed to customers. This data will
be transmitted back to their control centers,
where it will be analyzed and the switches
will be remotely controlled, as warranted.
As Con Edison completes the installation of
a wireless mesh communication system, which
www.powermag.com
will enable data collection and control of underground
transformers and network protector
switches, the company will be better equipped
to prioritize its operational workload and proactively
address its findings.
In its continuing effort to engage customers,
Con Edison also is developing ways to integrate
the control of building management systems,
battery storage units, distributed generation,
and electric vehicle charging stations. Successfully
combining these advanced technologies
will enable Con Edison to lower costs, improve
reliability and customer service, and reduce its
impact on the environment. (For more information,
please visit www.coned.com.)
Southern Company is another industry leader
that is modernizing its grid to improve performance
and reliability. The company is matching
a $165 million DOE investment grant to complete
a three-year project to modernize the grid
across the company's four-state service territory.
This funding will enable the company to continue
its long history of investment in its transmission
and distribution infrastructure, ensuring
that its robust electric grid becomes smarter,
more resilient, and more efficient through the
application of intelligent electronic devices.
In particular, by applying advanced technologies
to reduce stress on the system, increase the
control of power flow, and improve power quality
and environmental impact, Southern Company
will create new opportunities to become
even more efficient and better serve its customers.
(For more information, please visit www
.southerncompany.com.)
How do you gauge public acceptance
of a new smart grid?
Owens: The customer is in favor of us moving
ahead with smart grid and smart meter
technology. In fact, our latest research found
that over two-thirds of consumers nationwide
want us to move ahead. And one in four
wants us to do so quickly. But we recognize
that we will run into problems if we push the
smart grid technology too far too fast.
Although our research found great interest
in moving ahead with the smart grid, it
POWER | July 2011
http://www.coned.com http://www.southerncompany.com http://www.powermag.com
POWER July 2011

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