Smart grid and economic development in Illinois

By Anne Pramaggiore
Contributing Writer

The Business Ledger (suburban Chicago paper)

September 10, 2009


Environmentalists and utility industry experts alike have been anticipating the development of a "smart grid"-an electricity distribution system using digital technology to improve reliability communications and customer energy management.

Modernizing the electric grid with intelligent features will bring about a number of societal, consumer and commercial benefits, and the Illinois Commerce Commission (ICC) has initiated a process for exploring the implementation of a smart grid in northern Illinois.

Smart Grid in Illinois
Around the turn of the 20th century, Chicago became the birthplace of today's electric grid.  Today, Illinois has the potential to be at the forefront of the development of a smart grid, which is an information-rich system that empowers customers with real-time data, allowing them to make the smartest, most cost-effective energy decisions for their families. It is a system so smart that, in some cases, it can automatically restore power, employing the most advanced technology to dramatically reduce the number and duration of outages.

In the early 20th century, regional electricity grids-like the one developed here in northern Illinois-were connected with other regional grids, developing into a complex and vast system that covers the country. Largely powered by coal, these grids provided the electricity that helped run the burgeoning steel, auto and manufacturing businesses in the U.S., upon which the nation's industrial economy was built.

The structure of the economy is changing, however, as are the economy's energy needs. Ten years ago, ComEd's largest customer was a steel mill. A power interruption could cause the loss of a shift, a loss that could possibly be made up by the customer.

Today, data centers are among ComEd's largest customers. These types of "information age" businesses have lower tolerance for interruptions. Electrical distribution system reliability is essential to gaining and retaining businesses and enhancing the business climate in northern Illinois. Additionally, businesses are looking for more control over their energy costs.

Our challenge has been to identify opportunities to evolve and innovate in order to meet customer needs in the new economy, and smart grid offers the potential for a response.

The First Steps
On June 1, ComEd took the first step by filing a petition with the ICC recommending a one-year Advanced Metering Infrastructure (AMI) pilot-one of the most comprehensive customer pricing and technology experiments of its kind.

AMI meters, also known as smart meters, can provide real-time information to customers and utilities about energy consumption and have the potential to transform the energy experience for customers by opening a world of choices.

This smart meter project also comprehensively tests the full customer experience with this new technology, including how its use will change consumer energy consumption.

When fully operational, smart meters allow customers to take true control of their bills by providing information about how much energy they use and how much it costs before they receive a bill at the end of the month, which means no more blind energy consumption.

A variety of Web interfaces and in-home displays can be tested with a number of the meters, enabling information-based decisions about energy usage to improve energy efficiency, cut greenhouse gas emissions and reduce energy bills.

If approved by the ICC, approximately 141,000 smart meters will be deployed in 11 suburban communities and Chicago as part of one of the most comprehensive tests of smart meters in the nation.

Meters and associated infrastructure will be studied, along with field testing and analysis of AMI systems and their ability to deliver operational and reliability benefits to customers.

Eventually, the ability to remotely monitor the health of the electric distribution grid will enable improved service by recognizing power outages faster through increased operational efficiencies.

Improved system reliability would play a key role in attracting and retaining businesses to northern Illinois, as well as enhancing the overall business climate.

"Businesses of all sizes are looking at efficiency and conservation measures to save money on energy costs," said Tom Wolf, executive director of the Energy Council at the Illinois Chamber of Commerce.

"Businesses will want to come to and grow in states that have tools like smart meters and infrastructure like a smart grid system. It is critical that this kind of investment is made in Illinois so we can stay competitive and spur economic development."

If the ICC approves the pilot, new meter installation in pilot communities could begin as early as November 2009. The ICC will assess the technology's value to customers, and could allow ComEd to deploy smart meters throughout the company's service territory as part of a full smart grid system over the next few years.



Anne Pramaggiore is president and chief operating officer of ComEd, where she is responsible for overseeing the day-to-day operations of the company, which delivers electric service to customers throughout northern Illinois. ComEd is a unit of Chicago-based Exelon Corporation.