A secure energy future requires that we use energy more efficiently and responsibly and improve the performance of the energy delivery system. We launched gridSMART® in 2007 to give customers greater control over their energy usage, increase the efficiency of the electric grid, improve service to our customers and lead us to a new era of energy delivery.

From a technology standpoint, gridSMART® incorporates a two-way communications system between AEP and our customers that facilitates the more efficient use of electricity. For example, gridSMART® may allow us to send price signals to customers so they can decide when to run home appliances. It can also allow us to adjust customer thermostats automatically, with their pre-approval, when demand is high and we need to lessen the stress on the electric grid.

AEP Ohio is pursuing a comprehensive gridSMART® project involving 110,000 smart meters and distributed grid management technologies on 70 circuits. The $150 million project was funded with a $75 million grant from the DOE, in-kind contributions from vendors and regulatory recovery support from Ohio regulators. The project features smart meters, time-of-use tariffs, home energy use display devices, smart grid-enabled appliances, plug-in electric vehicles, distributed automation equipment, community energy storage devices and a cyber security center.

Our most extensive smart meter deployment project is in Texas, where we are installing close to 1 million smart meters. In addition, Indiana Michigan Power Co. (I&M) and Public Service Company of Oklahoma (PSO) are deploying smart grid technology pilots in their states.

Our initial goal was to install 5 million smart meters by 2015 throughout the AEP system. Through our early deployments we hope to determine if the expense of the meters is offset by the benefits. We will continue to pursue the deployment of these smart grid technologies where regulators are supportive and there is a proven business case. We believe modernizing the grid is critical to reducing demand and energy consumption, contributing to energy reliability and security, and preparing for the future needs of customers.

Get a state-by-state breakdown of gridSMART initiatives

We believe gridSMART® will transform our relationship with our customers and through our current projects we are learning more about how that will occur. For example, we have learned that:

• The technology that allows us to manage the grid from our back office systems, such as remote operation of the meter and distribution automation equipment, works as expected. The technology that goes beyond the meter, into the customers’ home, is still evolving.
• A significant number of customers who participated in the time-of-day rate plan did shift their demand to different times. In a larger scale deployment, this program could provide relief to the distribution systems during peak times.
• Better system management, fewer crew trips, reduced fuel consumption, better energy theft detection and streamlined billing can create cost savings.
• When customers agree to the program, we can directly control electric use through wireless technology (e.g. a two-way communicating thermostat) which allows us to raise the temperature in homes to ease stress on the grid and help customers save energy during the cooling season.
• More education of consumers will be needed in future projects.
  

AEP is a founding member of the SmartGrid Consumer Collaborative