Baltimore Gas and Electric Co. (BGE) has filed with the Maryland Public Service Commission a comprehensive and advanced smart grid initiative, including the planned installation of 2 million residential and commercial smart meters that could potentially save BGE electric and gas customers in excess of $2.6 billion over the life of the project, the utility says.
In an extensive pilot program that began in 2008, smart meters and a new pricing plan have shown that customers can reduce peak electricity usage by about a third and enjoy significant savings. BGE is seeking prompt action by the Maryland PSC and federal approval of stimulus dollars to position the utility to move to the next phase of this potential smart grid investment.
‘Smart grid is the foundation from which we can build a more efficient and sustainable energy network in Maryland,’ says Kenneth DeFontes, president and CEO of BGE. ‘It enables large-scale penetration of renewable energy sources and allows us to begin the testing and research necessary to support next-generation transportation innovations, such as plug-in hybrid electric vehicles.’
The first phase of BGE's smart grid proposal would include the installation of 2 million smart electric and gas meters, operating through a robust utility-to-customer, two-way communications network, which forms the foundation for an automated, digital intelligent grid.
The utility is also planning to roll out a new smart energy pricing (SEP) program as its standard rate schedule, which would pay customers rebates for reducing power consumption during peak periods.
BGE anticipates filing a competitive Department of Energy grant for up to $200 million to partially fund the initiative. The utility estimates initial deployment and operating costs of nearly $500 million over five years, and expects that, over the project's life cycle customer savings will exceed costs by a ratio of more than 3:1.
SOURCE: Baltimore Gas and Electric Co.
