Posted 10/30/2009
by David C. Hallquist, CEO Vermont Electric Cooperative

Earlier this week, the Department of Energy recognized the importance of building a smart grid to meet America’s future electricity needs when it awarded stimulus funds to utilities and related organizations throughout the United States. Vermonters will benefit from an award of $69M that will ultimately empower both consumers and utilities, like Vermont Electric Cooperative (VEC), to operate more efficiently. 

The importance of transforming the nation’s electric infrastructure with smart grid technology comes as no surprise to Vermont Electric Cooperative. Seeing significant benefits for consumers, VEC made the decision to build a smart grid in 2005. Several years later, more than 80% of VEC customers are being served by smart meters at a time when many utilities are just beginning to plan their first steps toward meter automation. By using computer technology to enable two-way communication between smart meters and VEC’s control center in Johnson, VT, VEC is leading the energy revolution. 

Initially, VEC was drawn to the benefits of smart meters because they enabled prompter responses to power outages.  Our conventional meters did not communicate or provide data to help identify outage locations. Instead, like most other utilities today, we had to send employees out into the field to investigate and locate the cause of an outage. Or, we had to rely on consumers to call in to report outage information. With smart meters diagnosing an outage can be done remotely taking minutes instead of hours to process outage information and restore power. 

Another significant advantage is that with smart meters, greater operating efficiencies can be achieved which ultimately help to control electric rates. Meter readings can now be done remotely by computer – eliminating the time and expense associated with sending field technicians on long routes to manually collect meter data. In VEC’s case, we have achieved a level of savings through smart meters that will enable us to recover our investment within seven years. 

This is just the beginning. The essence of smart grid technology is based on two-way communication which will enable consumers and utilities alike, to control how and when electricity is consumed. For example, VEC consumers with smart meters can now analyze their consumption patterns at any time on our website (www.vermontelectric.coop)  by using VEC wattWATCHERS, a web-based application, which displays hourly and daily usage over a 90 day period. 

Consumers will benefit as smart applications are rolled out. With smart grid technology, appliances can be programmed to automatically turn on when electricity prices are low and turn off when the prices are high.  In-home display units will show how much power is being used and how much it is costing. Electric vehicles will charge at night when demand on the power grid is low. 

For electric utilities, the potential of a smart grid is transformational. As future demand for electricity increases, we face the reality that without significant infrastructure investments in transmission and generation facilities, the United States will not have the capacity to meet electricity needs. Grid automation will help to lessen the need for costly, time consuming investments by reducing peak loads.  A smart grid will lead to increased efficiency and reliability. 

Smart technology is truly a win-win-win. It’s a win for consumers who can save money through more effective management of their electricity consumption; a win for power companies because they will be operating a more stable and efficient grid; and a win for society through reduced emissions and less dependence on fossil fuels. 

At VEC, we are proud to be leading the energy revolution. Serving 34,000 members throughout Northern Vermont, we are considered a relatively small power company by some standards, yet we possess the skills, knowledge and foresight to know that we can make a difference. By making smart energy choices today, VEC and utilities throughout the Untied States will save energy, reduce costs and improve the reliability of the electric grid of the future.