The smart grid is a suite of customer programs and advanced
technology initiatives that will transport us into a new era of energy
delivery and customer service. Electric vehicles, smart appliances,
energy storage and distributed solar generation are among the
technologies being adapted and incorporated into our current
infrastructure. This evolution of technology has occurred in every
industry; the electric industry is no exception.
The new technologies can help improve efficiency, identify and
respond to outages more quickly, and better monitor and control
operation of the distribution system. It can also provide customers
with new and innovative programs and pricing options that allow
them to monitor and control their own energy use, saving resources
and money. Additionally, the way our nation generates electricity is
changing rapidly. Deployment of smart grid technology and
transmission expansion may help us to address changes in
gridSMART® projects in progress
- AEP Ohio’s first phase of its gridSMART® demonstration project deployed a
comprehensive suite of innovative smart grid technologies on 70 circuits serving 132,000
customers in Central Ohio. The $150 million project was funded through a $75 million
federal grant, cost recovery support from the Public Utilities Commission of Ohio and in-kind
vendor contributions. AEP Ohio has proposed to extend gridSMART® with a Phase 2
deployment that will include Advanced Metering Infrastructure (AMI) for approximately
894,000 customers, Distribution Automation Circuit Reconfiguration (DACR) for
about 250 priority circuits, and VVO for roughly 80 circuits. The company is proposing to
recover the $295 million project cost over five years.
- AEP Texas has completed installation of a 1 million meter smart grid network. Cost of the
$308 million project is being recovered through an approved 11-year regulatory surcharge.
The company is also deploying DACR on 15 circuits.
- Indiana Michigan Power (I&M) has deployed a smart grid network to about 10,000
customers. The $7 million project was funded through a settlement agreement approved by
the Indiana Utility Regulatory Commission. I&M has installed VVO on nine circuits and
received approval for its use as an energy efficiency program through filings in Indiana and
Michigan. I&M is upgrading DACR on 11 circuits and installing it on 11 additional circuits.
- Public Service Company of Oklahoma’s (PSO) initial gridSMART® project included
approximately 31,000 customers with AMI, 14,000 of whom are served on 13 circuits
equipped with advanced grid management technologies, such as VVO and DACR. The
project was financed through an $8.75 million American Reinvestment and Recovery Act
low-interest loan from the Oklahoma Department of Commerce, along with $2 million in
annual revenues approved by the Oklahoma Corporation Commission. In January 2014, the
OCC approved PSO’s application to broaden its AMI deployment to cover its entire 30,000-
square-mile service territory. This will include its remaining 520,000 customers, with
deployment over three years. The timing for the completion of this $135 million project could
change pending the regulatory review process.
- Kentucky Power Company is deploying advanced grid technology on approximately 30
circuits. The company is also installing distribution Supervisory Control and Data Acquisition
(SCADA) on these circuits to provide greater visibility for dispatchers and to allow for the
remote control of equipment. The existing technology investment is expected to be
recovered in customer rates.
- Appalachian Power Company (APCo) has installed three circuits with DACR and is
installing the technology on four more circuits. APCo is also upgrading some circuits with
SCADA. APCo was the first utility in North America to deploy a 1-megawatt-scale sodium
sulfur (NaS) battery at its Chemical Station in Charleston, W.Va., and has since deployed
another 2-MW battery at Balls Gap Station near Milton, W.Va.
- Southwestern Electric Power Company (SWEPCo) has DACR technology on two circuits, is
upgrading the technology on 14 circuits, and installing the technology on an additional three
Smart grid programs can
improve service quality
and reliability, lower
energy consumption, and
offer additional customer
AEP is deploying smart
grid technologies in
several states, with