SMART METERS

What are smart meters?

Smart meters, a common form of smart grid technology, are digital meters that replace
the old analog meters used in homes to record electrical usage. Digital meters can
transmit energy consumption information back to the utility on a much more frequent
schedule than analog meters, which require a meter reader to transmit information.
Electric energy use will be recorded every hour or less at your home. Smart meters
will enable you to monitor your consumption more precisely so you can make more
informed energy choices. Depending on the feature set, the meter may also notify the
utility of a power outage or allow the utility to remotely switch electricity service on
or off. Learn more from the U.S. Department of Energy.
How do I know if I have a smart meter?
If your electricity meter has been replaced since January 2009 with a digital meter, it
is likely a smart meter. Smart meters have a white face, with an LCD display, short
for liquid crystal display, which is similar to the display used in digital watches and
many portable computers and televisions. If you still have a meter reader visiting your
house to take regular readings then you don’t yet have a smart meter. Another way is
to check is that sometimes, depending on your utility, your monthly utility bill will
have a statement in the "Notes" section indicating that your home is equipped with a
smart meter.

Privacy and smart meters

Who has the control over my energy consumption with smart meters? Advanced
metering gives you more control. Participating in residential energy management and
other energy efficiency programs is completely optional. Customers who participate
can use the information they receive to manage their energy usage day by day. Or,
they can set preferences and let the system automatically make adjustments based on
the cost or availability of energy. Either way, the customer is in complete control and
will have the option to override signals or not participate in energy-efficiency
programs at all. Learn more here.
With everything happening with the “cloud,” how can I be sure my stored data and
information are safe?
When data is collected from a meter and transmitted wirelessly to the utility, the data
contains specific unique identifiers associated with the customers meter number and
service address. More information here.
Security is a top priority for utilities. Utilities have extensive experience maintaining
security on the information systems needed to operate the electrical grid. See some
examples.
Understanding smart meters & radio frequency
Some people have expressed concerns about the possibility of negative health effects
from the radio frequency (RF) waves that smart meters use to communicate. Learn
the truth here.
Consumer benefits and the smart grid
You’ll agree that there are many reasons why the new plan to modernize the
electricity grid deserves to be called smart. See benefits here.
 CONSUMER BENEFITS
Technology has transformed our way of life, but our electric grid — which we trust
to keep power flowing to our homes, schools, workplaces, and hospitals — hasn’t
been modernized to match. Now it can be, with a new investment in our nation’s
energy infrastructure called smart grid. It combines information technology with
power transmission to benefit your home, your community, and your nation. Read
on, and you’ll agree that there are many reasons why this new plan for the grid
deserves to be called smart.
Smart grid keeps your lights on.

It overhauls aging equipment.

The current electrical system is decades old and dependent upon equipment that is
approaching the end of its usable life. Smart grid updates this infrastructure, ensuring
that safety standards continue to be met, that power is delivered consistently, and that
the system is managed efficiently.

It equips the grid to meet increasing demand.

As Americans today use more electronic devices than ever, the demand for power
continues to grow rapidly. Without smart grid improvements, the old system, already
strained to near-capacity, will be unable to meet the challenges of the future.

It decreases brownouts, blackouts, and surges.

You don’t always know when a brownout or power surge is happening, but they can
leave damaged TVs, audio equipment, and computers in their wake. Smart grid
applications smooth the flow of power, and when aberrations do occur, they are more
quickly and easily dealt with.

Smart grid lowers energy costs.

It gives you control over your power bill.

Smart grid makes it possible to monitor and adjust your energy use through smart
meters and home energy management systems that offer 24/7 rate and usage readings.
That means no surprises on your electric bill and even better, you can schedule your
most energy-intensive tasks for low-demand periods when you pay less. Control of
your electric usage is in your hands and dollars stay in your wallet, month after month.

It facilitates real-time troubleshooting.

When something goes wrong in today’s electrical system, a utility worker must drive
to the location of the problem to collect data before a solution can be devised. Smart
grid improvements convert system events into instantly-retrievable digital
information, so that problem solving can begin immediately. With such improved
efficiency comes reduced producer costs — savings that will be passed on to you.
 It reduces expenses to energy producers.
To meet spikes in energy consumption, today’s system relies on the building and
maintenance of expensive standby plants which sit idle except during rare critical
demand periods. Smart grid allows direct communication with end-user equipment to
reduce consumption during these peak periods, lowering the need for costly standby
power plants.

Smart grid secures America’s energy independence.

It facilitates broad-scale electric vehicle charging.

Like many Americans, you may be contemplating replacing your gas guzzler with an
efficient electric vehicle. Once you do make the switch, you’ll need a reliable, low-
cost way to recharge it anytime, anywhere. When you and millions of
other owners plug in to charge your electric vehicles, smart grid will be ready to
handle the new demand.

It makes renewable power feasible.

Sophisticated smart grid systems are needed in order to strategically manage the
diverse and geographically scattered renewable power sources like wind farms, solar
plants, and hydro stations. Smart grid will ensure that this energy can be stored safely
and distributed where and when it’s needed.

It maintains our global competitiveness.

Today, even developing countries are building their energy infrastructure on faster,
more modern technologies. Our electric grid once gave us a competitive advantage,
but now it’s causing us to fall behind. Smart grid safeguards our nation’s position at
the forefront of the world’s transition toward a clean energy future.

Reliability, cost savings, and energy independence are just three of the many
benefits of smart grid. These and more make it the energy technology not just for
the future, but for today.

SMART GRID GLOSSARY

A
Advanced Metering Infrastructure (AMI): Advanced Metering Infrastructure is
another term for smart meters—electricity meters that automatically measure and
record usage data at regular intervals and provide the data to consumers and energy
companies at least once daily. The opposite is Automated Meter Reading (AMR)—
meters that collect data for billing purposes only and transmit this data one way,
usually from the customer to the distribution utility.
Automated Meter Reading (AMR): Automated meter reading (AMR) is a
technology used in utility meters for collecting the data that's needed for billing
purposes. AMR, which works by translating the movement of the mechanical dials
on a meter into a digital signal, does not require physical access or visual inspection.
The data can be transmitted from the meter to the utility company by telephone,
power line, satellite, cable or radio frequency.
D
Distribution automation: Distribution Automation (DA) is a family of
technologies including sensors, processors, communication networks and switches
that can perform a number of distribution system functions depending on how they
are implemented. Over the last 20 years, utilities have been applying DA to improve
reliability, service quality and operational efficiency. More recently, DA is being
applied to perform automatic switching, reactive power compensation coordination
and other feeder operations/control.
Distributed generation: Distributed generation (DG) refers to power generation at
the point of consumption. Generating power on-site, rather than centrally,
eliminates the cost, complexity, interdependencies, and inefficiencies associated
with transmission and distribution. Like distributed computing (i.e. the PC) and
distributed telephony (i.e. the mobile phone), distributed generation shifts control to
the consumer.
Demand response: Demand response refers to the capability of smart grid
technologies to allow for reductions in electricity use targeted at times when
demand is highest. These peak reductions can reduce the strain placed on the
electrical grid and decrease the need for high-cost generation resources. Consumers
participating in demand response activities are compensated for the service. When a
utility issues a call for demand response, consumers do not have to take an action;
the utility can simply send a signal to smart-capable appliances that take action
based on pre-programmed consumer preferences.
Demand-side management: The term for all activities or programs undertaken
by Load-Serving Entity or its customers to influence the amount or timing of
electricity they use.
Dynamic pricing: Dynamic pricing refers to the family of rates that offer customers
time-varying electricity prices on a day-ahead or real-time basis.
E
Electric grid: A network of synchronized power providers and consumers that are
connected by transmission and distribution lines and operated by one or more
control centers. When most people talk about the power "grid," they're referring to
the transmission system for electricity.
H
Home Area Network (HAN): A communication network within the home of a
residential electricity customer that allows transfer of information between
electronic devices, including, but not limited to, in-home displays, computers,
energy management devices, direct load control devices, distributed energy
resources, and smart meters. Home area networks can be wired or wireless.
K
Kilowatt hour (kWH): A kilowatt hour is the amount of energy you get from one
kilowatt for one hour. Electricity use over time is measured in kilowatt hours. Your
electric company measures how much electricity you use in kilowatt hours,
abbreviated "kWh". A kilowatt is a unit of power equal to 1000 watts.
 L
Load: The amount of electric power delivered or required at any specific point or
points on a system. The requirement originates at the energy-consuming equipment
of the consumers.
O
On-peak hours: Those hours or other periods defined by NAESB business
practices, contract, agreements, or guides as periods of higher electrical demand.
Off-peak hours: Those hours or other periods defined by NAESB business
practices, contract, agreements, or guides as periods of lower electrical demand.
Outage: The period during which a generating unit, transmission line, or other
facility is out of service.
P
Peak load: The maximum load during a specified period of time.
Peaker plant/peak load plant: A plant usually housing old, low-efficiency steam
units, gas turbines, diesels, or pumped-storage hydroelectric equipment normally
used during the peak-load periods.
S
Smart cities: A city that harnesses digital technology and intelligent design to
create a sustainable city where services are seamless, efficient and provide for a
high quality of life for citizens.
Smart devices: Typically an electronic device, generally connected to other devices
or networks via different protocols such as Bluetooth, NFC, WiFi, 3G, etc., that can
operate to some extent interactively and autonomously.
Smart grid: The “grid” refers to our nation’s electric power infrastructure. Smart
grid is the application of information technology, tools and techniques like smart
meters, sensors, real-time communications, software and remote-controlled
equipment to improve grid reliability and efficiency.
Smart home: The integration of a smart meter along with Wi-Fi enabled
appliances, lighting and other devices that conveniently changes the way a family
interacts with its home and optimizes home energy consumption.
Smart meter: Smart meters, a common form of smart grid technology, are digital
meters that replace the old analog meters used in homes to record electrical usage.
Digital meters can transmit energy consumption information back to the utility on a
much more frequent schedule than analog meters, which require a meter reader to
transmit information.
T
Time of use pricing: Time-of-use pricing (TOU) typically applies to usage over
broad blocks of hours (e.g., on-peak=6 hours for summer weekday afternoon; off-
peak= all other hours in the summer months) where the price for each period is
predetermined and constant.
V
Variable peak pricing: Variable Peak Pricing (VPP) is a hybrid of time-of-use
and real-time pricing where the different periods for pricing are defined in advance
(e.g., on-peak=6 hours for summer weekday afternoon; off-peak= all other hours in
the summer months), but the price established for the on-peak period varies by
utility and market conditions.