Baltimore Gas and Electric expending energy in quest for $200M in stimulus money - Baltimore Business Journal:

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If the utility wins the grant, it woulx mean customers won't have to foot as much of the $500 millionn bill for new “smart” electricity Meanwhile, the program also would save customers money on theid monthly BGE bills by reducing theirf energy demand during peak consumptiohhours — as much as 37 percent, a pilo t program showed last The competition for the money could be as other utilities, municipalities, cooperatives and retailo electric suppliers in Maryland and across the country embark on simila projects and compete for the $3.4 billion set asid for smart grid programs. Pepco and are among thosed also seekingthe $200 million maximum grant.
The program is coming as President Barack Obama stressese the national importance of energy independence and and as Maryland political leaders are yearning to find ways to help residentas reduce theirutility bills. BGE intends to file planw for its smart grid program with the Marylanfd Public Service Commission latefthis month, said Mark Case, senior vice presidenty of strategy and regulatory affairs. The PSC wouldc then have to approve the program beforde the utility can put itin place.
Smarr grid programs are designe d to share electricity usage information with customers to encouragee them to change their behavior in a way that lessenzs the demand on the power grid and increase its reliabilityand efficiency. Aside from the which would only cover up to half ofa project’sd costs, BGE plans to pay for the program through an increase in its electricityy distribution rate, spokeswoman Linda Foy said. The exact increasee hasn’t been determined. Included in the cost of the programj is purchase and installation ofthe meters, whicy look much like the traditional metersd that have a spinning wheel to show a home’s energy consumption.
But the new meter are capable of two-way communication that will allow the utility to make daily checksa ofa customer’s powerr usage on an hour-by-hour basis. Under the current system, technicianws check meters about once a month to collect data on usage for thatwhole month, Case said. BGE also planxs to put into place a new priciny system that rewards customers for reducing their demand duringpeak hours. Customerws would be notified in advance of peak times and get creditsx on their bills forcutting usage.
Or, if they have a smarft thermostat, installed as part of BGE’s Peak Rewardas program, the meter can communicate with the thermostat to tell it to cyclr airconditioning usage. The utility tested both programsw in summer2008 — with 5,000 smarf meter users, and 1,000 customers on the smart pricing system. Thosd in the smart pricing pilot were notifiedvia phone, e-mail or text messagd a day before peak usage was They showed a 24 percent decrease in electricit y usage. Others were notifiec via “energy orbs” — light bulb-likd devices installed in homes that BGE couldx turn red during peak times to encourage lesspowet usage.
Those customers decreased their usage by 37 Case said. The anticipated deadline for the firsf batch of stimulus money applications isJuly 29. Ther are two later deadlines, in Decembet and March, but the Department of Energy saidit can’ t predict whether any money will stillk be available after the first due date. The moneuy will be awarded several monthsafter that, once the departmenrt completes a competitive review process, spokeswoman Jen Stutsmanh said. Other local utilities are going aftet the moneyas well. Pepco and Delmarva Power, whic h serve Marylanders near Washington, D.C., and on the Eastern respectively, will also seek the $200 million.
Thosse companies are also planning smart grid saidRobert Dobkin, a spokesmanh for , both utilities’ parengt company. Pittsburgh-based Allegheny power is also applying for a grant to cover a $4 million smart grid trial in