Smart Grid: More About Saving Green Than Going Green?

Although National Grid's smart grid pilot program in Worcester is touted as a way for customers to control energy consumption, those involved recognize that going green isn't always enough incentive for customers to cut back on usage.

"None of this stuff happens unless there are real dollars tied to it, and the dollars have to go to the end user," said Vincent DeVito, executive director of Worcester's Institute for Energy and Sustainability and an energy lawyer at Bowditch & Dewey.

So, part of the program's goal is for the average customer to save 5 percent per year on his or her energy bill. And along with the new meters, variable rates will be ushered in for peak and off-peak times, further motivating users to consider their energy use more wisely, and allowing the utility to charge rates more in line with what it pays energy generators.

Ed White, vice president of energy products for National Grid, said some customers will get a "significant" credit if they reduce usage during peak periods, in addition to any savings they generate just by reducing consumption.

The varied rates have yet to be determined; they are scheduled every six months based on the cost of energy at the given time, but White said National Grid is safeguarding against smart meter customers who are exposed to peak and off-peak rates having to pay more than customers on traditional meters or not actively trying to cut usage. If a customer who participates in the 12-month-long pilot ends up paying more during it than before, he or she won't have to pay the increase.

"That price protection is really just to guarantee that they don't lose for participating in the pilot," White said.

Although customers will be able to log in online, consult in-building devices, smartphone apps or even digital picture frames to track usage, many businesses won't simply be able to turn off the lights during peak periods.

"Our studies and our research and analysis show that just by making some simple changes, (customers) are going to save," White said.

DeVito said the combination of using energy efficient appliances and smart meters is the best way to see savings, while actions such as using light dimmers are helpful too.

Customers who opt in will be able to monitor their energy usage in near-real-time, instead of waiting until they get their next energy bills. Proponents of the smart meter say that's valuable because customers can actually see when they're using the most amount of energy, as opposed to just getting the total usage figure on a bill.

But the meters won't give users information from specific power outlets.

That causes John Murdoch, director of technology for EnergyTracking, a New Jersey-meter manufacturer, who has studied smart grid implementation, to say that the typical business owner will likely not see a lot of change.

Murdoch said one advantage the smart meters will give business owners is that they'll be able to see that electricity is being used when it shouldn't be, but not specifically how it's being used.

"You're not going to be able to tell that it's the lights that are left on as opposed to a machine," he said.

White said that type of technology is "next generation" and could be implemented eventually. Some pilot participants will have the ability to monitor one of their highest energy-using appliances or machines.

But DeVito said the information offered by the smart grid program should be enough for business owners to participate.

When it comes to a small business owner, it's almost more important. The return is the information they receive and saving money they can reinvest."

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