Progress Illinois

When consumer advocates and utility companies came together last year to form the Illinois Smart Grid Initiative (ISGI), coming up with a model for a smart electrical grid in the short-term seemed more visionary than practical. Nevertheless, stakeholders began hashing out their plan to update the state's system so it can efficiently accomodate increasing consumer demand. The Illinois Commerce Commission took it to the next level by collaborating with the state's largest utility companies to create a strategic plan that could be rolled out as early as 2013.

That sort of forward thinking, influenced by sensible growth advocates like those at the Center for Neighborhood Technology (CNT), has earned Illinois a reputation for being one of the "smartest" states in the nation. Now, it's a prime candidate to receive a chunk of the $4.5 billion in stimulus money earmarked for overhauling the electric grid. Later this week the U.S. Department of Energy (DOE) is expected to release guidelines for applying for the funds, and the St. Louis Post Dispatch reports on a homegrown pilot program that should boost Illinois' chances of snagging some of the federal money:

Much of what's leading the way in the smart grid movement are meters that allow for two-way communication between the customer and the electrical provider. These smart meters display the real-time electrical prices so customers could run appliances when it costs less and even program devices to run only at times when power is cheaper [...]

Commonwealth Edison in Illinois is planning a smart meter pilot program that could equip 100,000 homes by November.

While upgrading to digital meters represents the most recognizable improvement for consumers, the overarching goal is to replace a patchwork system with a seamless grid that is capable of powering the technology of the 21st Century.  In a report (PDF) released last week, CNT, a key member of ISGI, spells out a series of key elements that should be included in any modernized system:

- Smart electricity meters that automatically transmit time-of-use prices to consumers and their appliances;

- Electronic sensors and controls that reduce or even eliminate outages;

- Local or “distributed” power generation such as solar powered buildings;

- Infrastructure improvements that allow consumers to take advantage of plug-in hybrid electric vehicles.

With those mechanisms in place, consumers would have the chance to make intelligent decisions about their electricity consumption, including what energy source (wind, coal, or nuclear) fuels their household. The upgraded system would also mitigate environmental damage by capturing the five percent of electric power that's currently lost in the inefficient distribution process. And eliminating unecessary power outages could save Illinois another $6 to $11 billion annually.

While modernizing the grid will make the state's economy more competitive economically, policymakers must consider some long-term questions.  CNT poses one in its report:

Who will make the necessary investments that will sustain the system over the long-run? How will those investments be financed and what can be done to ensure that the necessary investments are utilized in the most efficient manner?

CNT's Anthony Star tells us that, in order to answer these questions, we need to determine who will benefit most from these advancements: "Is it the utility companies who save because they don't have to read meters, or consumers who [currently absorb the cost] of a lot of waste in the electric grid."

Image used under a Creative Commons license by twojciac.