{"id":12491,"date":"2016-03-04T10:15:31","date_gmt":"2016-03-04T16:15:31","guid":{"rendered":"http:\/\/blogs.edf.org\/energyexchange\/?p=12491"},"modified":"2016-03-04T12:09:04","modified_gmt":"2016-03-04T18:09:04","slug":"firstenergy-comes-up-short-on-pennsylvania-grid-modernization-plan","status":"publish","type":"post","link":"https:\/\/blogs.edf.org\/energyexchange\/2016\/03\/04\/firstenergy-comes-up-short-on-pennsylvania-grid-modernization-plan\/","title":{"rendered":"FirstEnergy Comes up Short on Pennsylvania Grid Modernization Plan"},"content":{"rendered":"

\"ST001175\"<\/p>\n

Imagine a utility receives $57 million<\/a> from the Department of Energy and a matching amount from its customers, then uses that money to demonstrate how new technologies could save millions more. Sounds like a pretty sweet deal, right? Not if you\u2019re FirstEnergy, whose business model doesn\u2019t call for saving money.<\/p>\n

FirstEnergy \u2013 serving several states in the Mid-Atlantic region, including Ohio where the power company is currently requesting<\/a> a $4 billion bailout of its uneconomical power plants \u2013 recently filed a long-term infrastructure-improvement plan in Pennsylvania, setting out its strategy for modernizing the grid. And despite having seen the benefits firsthand, the utility didn\u2019t include voltage optimization<\/a> \u2013 or using technology to \u201cright-size\u201d the amount of voltage customers receive \u2013 in its plan.<\/p>\n

Since utilities likely won\u2019t modernize the grid on their own, Environmental Defense Fund (EDF) often intervenes before state public utility commissions. And in this case, EDF recommends the Pennsylvania Public Utilities Commission (PUC) should not approve FirstEnergy\u2019s grid modernization plan unless it includes voltage optimization.<\/p>\n

After getting the grant and great results, FirstEnergy gave up on voltage optimization<\/strong><\/p>\n

Many appliances work just as effectively, yet consume less energy, when the flow of electricity to them is reduced. Put another way, higher voltages generally make people and businesses use more energy than they need. Therefore, if voltage was \u201cright-sized,\u201d residents would get enough power to run their appliances efficiently, but not so much that they use more electricity than necessary. This increased efficiency saves money and cuts pollution.<\/p>\n

Over the past decade, voltage optimization has seen significant advancements. Improvements in sensors, communications, control algorithms, and information processing mean technologies now can monitor voltage levels throughout the distribution system, as well as make near real-time adjustments in response to changing conditions.<\/p>\n

[Tweet “FirstEnergy Comes up Short on Pennsylvania Grid Modernization Plan”]<\/p>\n

After receiving a federal grant, one of FirstEnergy\u2019s Pennsylvania subsidiaries, Met-Ed, recently tested new devices and approaches in order to optimize the voltage on its electric wires. Unsurprisingly, the utility found these practices cut peak demand, saved electricity overall, and reduced losses on its lines. Surprisingly, FirstEnergy has since abandoned the effort.<\/p>\n

With such results, wouldn\u2019t a rational utility continue to use voltage optimization? After the $57-million Department of Energy grant, and the technology in place, the tool is nowhere to be found in FirstEnergy\u2019s plan. We suspect this is because it would mean selling less electricity to customers, which equates to less revenue.<\/p>\n

Other utilities are seizing the opportunity<\/strong><\/p>\n

I\u2019ve often described<\/a> FirstEnergy as having a backward-looking approach. Rather than embrace modern technologies, it seems to allow the inefficient status quo to lumber along. Rather than eliminate waste, it seems to generate electricity for its own sake.<\/p>\n

In contrast, consider ComEd, a Chicago-based utility that also received a federal grant. It found<\/a> voltage optimization could reduce the need for almost 2,000 gigawatt-hours of electricity (enough to power 180,000 homes) each year at an amazingly low cost of less than two cents per kilowatt-hour. That\u2019s more than is achieved now from the utility\u2019s other efficiency programs, and translates to $240 million per year in savings for ComEd\u2019s customers.<\/p>\n

While FirstEnergy felt threatened by efficiency, ComEd saw the opportunity to save people money and improve the system. It is interested in rolling out voltage optimization across its territory.<\/p>\n

More and more utilities, in fact, are realizing voltage optimization is a lot less costly and risky than building new power plants and power lines.<\/p>\n<\/div>\n

More and more utilities<\/a>, in fact, are realizing voltage optimization is a lot less costly and risky than building new power plants and power lines. The introduction of smart meters<\/a> and advanced meter infrastructure \u2013 including microprocessor-based controls, modern sensor technology, and advanced software algorithms \u2013 enables utilities to virtually measure electricity use and vastly improve the efficiency of its flow. Combining this meter technology with voltage optimization allows utilities to:<\/p>\n