Carl Chapman, president and COO of Vectren, said: “Smart grid technology creates a two-way digital communication link between Vectren and its customers as well as Vectren and its energy delivery infrastructure.
“Smart grid technology brings a clearer picture of how much and where energy is being consumed in real-time, which will help minimize excess generation, and thus, reduce carbon emissions. Furthermore, the technology improves our ability to pinpoint outages, including direct communication with substation equipment and individual smart meters, to ensure efficient restoration.”
Details of the filing include a request for project pre-approval and an ability to recover project costs as incurred as well as approval of pricing tariffs, which would provide the means for customers to manage energy costs by limiting energy use, for example, during higher-cost peak times in the summer.
Mr Chapman added: “If implemented, the project will also include new residential rate designs, which take advantage of smart meter technology and provide customers a tool to better manage their electric energy consumption and potentially reduce their electric bills.”
Later this month or in early November, the DOE may award up to $4.5 billion in smart grid grants nationwide as part of the economic stimulus and infrastructure bill passed earlier this year. Vectren’s proposal to the DOE includes a request for $45m, or roughly 50% of the project’s total cost.
