Dawson PPD Consumers & Smart Grid

For the past few months, Dawson Public Power District has been working with Nebraska Public Power District and 14 other utility systems in Nebraska to put together a joint grant application for stimulus funds designed to assist us (financially) in building a regional smart grid structure. The entire process has been an impressive endeavor in teamwork.

I’ll be honest… I struggled with the additional costs a smart grid system will impose on our consumers. However, as I’m working through the definition and expectation of smart grid services, I’m beginning to realize the benefits far outweigh the costs.

Reason #1 Whether we (as a utility or a consumer) approve of the smart grid concept or not, it is the way all utilities will be operating in the very near future. Under President Obama’s vision for our energy system, it will be imperative that a smart grid be in place that will allow each consumer to have better control and understanding of their electricity use.

Reason #2 If a cap and trade system is passed by the Senate, even with significant modifications, consumers will need to be able to control usage in order to reduce their electricity costs. Consumers will not be interested in controlling their usage unless it is a simple, easy to understand process.

Reason #3 System reliability will improved based on our ability to detect problem areas before they become outage areas.

Reason #4 Line loss can decrease significantly. Line loss is the amount of electricity “lost” through the system based on resistance on the line (or other line interferences). Interference can be detected through a smart grid system. Reduction of line loss can save thousands of dollars each month.

Reason #5 The bigger picture means our generator (NPPD) can more effectively monitor statewide loads. It allows them to better manage their generating options.

Reason #6 A smart grid system will modernize our electric grid to improve economic and national security. (DOE-GRID 2030)

The request for stimulus funding was $63 million dollars total. Of that, about $9 million was for Dawson PPD. The Department of Energy (DOE) could fund up to 50% of our total request. For those utilities who know that smart grid services will be required in the near future, this is our way of possibly saving 50% of the cost by having the funds granted by DOE. Funding announcements will be made in mid to late October.

Thursday’s blog (What’s In It For Me) will tell our customers how a smart grid could directly affect them.

Gwen Kautz, Customer Service Manager
Dawson Public Power District