National Grid Responds to New York State Public Service Commission Request for Projects Suitable for Federal Stimulus Funding

SYRACUSE, N.Y--(BUSINESS WIRE)--Note to Editors: National Grid will host a media conference call today at 11 a.m. to provide a briefing on today’s announcement. Media representatives can participate in the call by dialing 888-266-1206 and requesting conference I.D. number 95913271 (National Grid PSC Stimulus/ Smart Grid Filing). A replay of the call will be available until midnight on April 21 by dialing 800-642-1687 and entering conference I.D. number 95913271.

“National Grid applauds the New York State Public Service Commission for taking a comprehensive approach to matching the needs of the state’s energy consumers with the need to create jobs and stimulate economic activity”

In response to a New York State Public Service Commission request for projects suitable for funding through the American Recovery and Reinvestment Act of 2009, National Grid is proposing two smart grid technology demonstration projects in Upstate New York and other investments to modernize and enhance its transmission and distribution system.

In National Grid’s filing to be submitted today, the company proposes to build and operate two 40,000-customer smart grid demonstration projects in the Syracuse area and the Capital District, as well as implement additional reliability enhancements throughout the state.

“National Grid applauds the New York State Public Service Commission for taking a comprehensive approach to matching the needs of the state’s energy consumers with the need to create jobs and stimulate economic activity,” said Tom King, president of National Grid in the U.S. “Through the power of action, National Grid strives to be a leader in energy management and work closely with regulators as they plan the energy future of the states and customers we serve. We believe our proposal supports the essential efforts to improve energy efficiency, enhance network reliability, and address climate change.”

King added that the proposal, which is subject to federal and state support, aligns with Gov. David A. Patterson’s New York Green Energy Vision’s goal of calling for 45 percent of the state’s electricity needs to be met through improved efficiency and green renewables by 2015.

A smart grid is a network for electricity transmission and distribution systems that uses two-way, state-of-the-art communications, advanced sensors, and specialized computers to improve the efficiency, reliability and safety of electricity delivery and use. Smart grids also provide environmental benefits by helping to reduce energy use during peak hours and facilitating the connection and addition of distributed generation facilities and renewables to the grid.

On April 2, the PSC issued a request to National Grid and other utilities planning to apply to the U.S. Department of Energy to receive grants under the Electricity Delivery and Energy Reliability (EDER) competitive program within ARRA, to file proposals with the state. Under the program, the DOE may provide grants to successful applicants of up to 50 percent of the costs of qualifying investments. The PSC seeks to determine whether the remaining costs of these investments would be reasonable for New York ratepayers. Applications that already contain the secured, non-federal funding portion of investment costs may have an added advantage in the competitive EDER program, the PSC noted.

National Grid’s proposal to the PSC involves multiple, shovel-ready projects that are designed to benefit customers, invest in the future energy landscape and improve reliability in the company’s vital energy networks. In addition to the smart grid programs, the proposal contains transmission, sub-transmission, and distribution network improvement projects.

The smart grid programs represent the first step toward creating a more efficient, environmentally responsible modern grid. Smart grid will provide customers improved energy use information, automation, and savings as well as an unprecedented amount of choice and control over how they use energy. Implementing smart grid technology also will enhance the reliability of electric system. National Grid hopes to gain valuable information from the programs that it can use in the future to develop a smart grid on a wider scale.

Earlier this month, National Grid filed a proposal with the Massachusetts Department of Public Utilities for a similar smart grid program in Worcester, Mass., as requested by the Commonwealth’s Green Communities Act.

Under the programs, all customers will receive a ‘smart’ meter, and as an option, customers can have additional equipment installed in their homes that includes special programmable thermostats and other devices that provide data and support energy management.

Eventually, the company envisions that customers will be able to purchase ‘smart’ appliances that will connect to the smart grid and start or stop when programmed to do so. Participating customers will be asked how they prefer to receive their energy information – via text message, from the Internet, or on a PDA – and arrangements will be made for them to view and monitor energy consumption on a real-time basis, providing information that allows customers to use less energy during peak periods when electricity use is at its highest. Additionally, customers will have the option to receive a new rate plan that allows them to save money during periods when electricity use is at its highest across the region.

National Grid is one of the largest investor-owned energy companies in the world. It is an international energy delivery company. In the U.S., National Grid delivers electricity to approximately 3.3 million customers in Massachusetts, New Hampshire, New York and Rhode Island, and manages the electricity network on Long Island under an agreement with the Long Island Power Authority (LIPA). It is the largest distributor of natural gas in the northeastern U.S., serving approximately 3.4 million customers in Massachusetts, New Hampshire, New York and Rhode Island. National Grid also owns over 4,000 megawatts of contracted electricity generation that provides power to over one million LIPA customers.