Smart gridPower companies seek federal funds for smart grid

& Power Company" href="http://www.courant.com/topic/economy-business-finance/connecticut-light-%26-power-company-ORCRP003789.topic">Connecticut Light & Power Co. and United Illuminating Co. are both applying for millions of dollars in federal stimulus money to develop a “smart grid” in Connecticut. If approved by federal and state regulators, the federal government would shoulder half the cost, and electricity customers would cover the rest. CL&P and UI say their plans would allow them to remotely monitor and control parts of the power grid and give customers the ability to cut down on their electricity use.

What will it take to make the grid smart? Hartford Courant’s Lynn Doan writes that it is a mix, the utilities say, of smart meters which that would be installed on customers’ homes to measure and report usage hourly, equipment attached to power lines to monitor and control the flow of electricity, and software that would pinpoint and fix the source of an outage before customers even notice.

“When you look at all these projects, it’s really about putting more sensors on the entire system and taking raw data from that and turning it into information that the customers, the companies and the grid operators can use,” said Joseph Thomas, UI’s vice president of client fulfillment.

Both utilities have submitted binders of paperwork to the U.S. Department of Energy outlining their proposals to install smart meters, remote-controlled thermostats, power line sensors, and other equipment. The Obama administration has placed a priority on such technology, and Congress has approved $3.4 billion in federal grants for smart grid projects nationwide.

Berlin-based Northeast Utilities, which is the parent company of CL&P, is asking the federal government to pay for half of its $253 million smart grid proposal that encompasses Connecticut, Massachusetts, and New Hampshire.

The company wants to install 200,000 smart meters on residential homes in Hartford, Wethersfield, Greenwich, and Stamford, and on commercial buildings throughout the state. The meters would tell the utilities and customers how much power is being used at any given time and would allow the company to charge rates based on the time of day.

CL&P is already running a pilot program in which 3,000 customers are being charged electricity rates based on the time of day they use power. They are generally paying the highest rates in the afternoon, when the region’s demand for electricity peaks.

The pilot program, which began in June and ends 31 August, is the largest of its kind in the country. The plan that NU submitted to the Department of Energy would be based on the results of the pilot. “This will be much more than a science experiment,” said James Rob, NU’s senior vice president of enterprise planning and development.

NU is also proposing to install sensors on its distribution lines that would automatically detect outages and, in some cases, restore power without dispatching crews.

The rest of the money would go to smaller things, such as stations where customers could charge their electric cars and to smart appliances such as washers, dryers and refrigerators purchased by the utility and programmed to use less power during times of peak demand. The first set of appliances would be installed in a 336-unit apartment complex being built in Stamford.

UI has filed an application for similar enhancements totaling $75 million. The utility is seeking $37.5 million in federal grants.

The Department of Energy is expected to decide on NU and UI’s funding requests in the next two months.