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Fixed Mobile Convergence

TMCNet:  AEP gets stimulus grant for $150 million 'smart-grid' project

[November 25, 2009]

AEP gets stimulus grant for $150 million 'smart-grid' project

Nov 25, 2009 (The Columbus Dispatch - McClatchy-Tribune Information Services via COMTEX) -- About 110,000 central Ohio customers of American Electric Power soon will have advanced-technology meters, giving them the ability to track when they use the most power and thus reduce their electricity bills.


It's all part of a $150 million demonstration project to install "smart-grid" technology for customers across a 150-square-mile swath of AEP's service area, an effort government and company officials say will reduce energy consumption, save money and create jobs.

U.S. Energy Secretary Steven Chu, joined by several Democratic elected officials for a ceremony at the company's Dolan Technology Center in Groveport, announced yesterday that AEP has been awarded $75 million in federal stimulus funds to match the amount the company earmarked for the project.

As a result, from mid-December through April, customers in Columbus and other communities will receive new meters as part of an integrated system that has the potential to reduce energy consumption by about 15 percent a year, saving $5.8 million. That's enough to power 1,800 homes for a year.

The technology allows customers to track their electricity usage via a wireless Internet connection. Future versions may allow utilities to charge lower rates during the times of day with the lowest usage. That would encourage customers to do certain tasks, such as running the dishwasher and washing machine, at different times to reduce stress on the power grid.

Any change in rates would require the approval of state regulators.

Other communities in the project area include Gahanna, New Albany, Bexley, Whitehall, Reynoldsburg, Westerville, Blacklick, Johnstown, Alexandria, Minerva Park and Pataskala.

"I believe we can take this technology to the world," said Michael Morris, AEP's chairman, president and CEO.

The grant to AEP is part of $3.8 billion in stimulus money the Obama administration is spending on smart-grid technology. Chu lauded AEP and the state for their efforts to land the federal funding.

"Ohio has recognized an opportunity as we transition to the clean-energy economy to be the leader in the United States, as the United States should be the leader in the world," he said.

Lt. Gov. Lee Fisher, joined by U.S. Sen. Sherrod Brown and U.S. Rep. Mary Jo Kilroy, credited AEP for its "visionary" use of technology, saying, "This was competitive. This doesn't happen by accident." AEP estimates that the smart-grid technology could create 500 jobs beginning next year, primarily for workers to install and maintain the meters and program the communication technology they use.

Chu said the technology will enhance energy reliability: "We don't want any more blackouts. We want the consumers to have real-time, minute-by-minute information so they (don't) use electricity at the most expensive times." Along with the new meters, AEP's demonstration project will encourage customers to use plug-in hybrid vehicles and energy-efficient "smart" appliances.

Joe Hamrock, president and chief operating officer of AEP Ohio, said the project will help the utility reduce the amount of power it must generate and cut emissions, but "more importantly, it will give customers the tools and information they need to make choices to use electricity more efficiently." Dispatch reporter Dan Gearino contributed to this story.

jhallett@dispatch.com To see more of The Columbus Dispatch, or to subscribe to the newspaper, go to http://www.columbusdispatch.com. Copyright (c) 2009, The Columbus Dispatch, Ohio Distributed by McClatchy-Tribune Information Services. For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.

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