Friday

The Smart Grid's Struggle

New power services must manage risk and complexity, and demonstrate scalability.


The Maryland Public Services Commission in June rejected a rate increase proposed as part of an $835 million plan by Baltimore Gas and Electric to install "smart meters" and a new communications network. The initial decision jeopardized a $200 million Energy Department grant award under President Barack Obama's 2009 stimulus package.

Similar utility rate increases for smart grid projects have been denied in other states. All stakeholders agree that improvements to the grid are urgently needed, but there is considerable controversy over whether the utility-proposed methodology benefits consumers or acts as a structural impediment to more fundamental reform.

Current North American electric power systems face various challenges:

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