The Maryland Public Service Commission (PSC) on Monday rejected a massive smart-grid project proposed by Baltimore Gas & Electric Co., a unit of the Constellation Energy Group (NYSE: CEG).
The decision may represent an emerging trend among state commissions that could stand in the way of smart grid deployments nationwide.
BG&E had already received a $200 million committment for a DOE grant–one of the six largest smart grid grants.
The utility planned to install 1.36 million smart electric meters and 730,000 smart gas meters to allow advanced communication options between customers and the utility. The entire cost of the program was estimated at $835 million.
Maryland’s PSC opposed the creation of a surcharge to help cover the cost of the program, stating that long-term ratepayer benefits did not seem to correspond with short-term rate hikes.
Demand response consultant Ahmad Faruqui told the New York Times the PSC decision refrelects a trend in which commissions are hesitant to support real-time pricing.
Real-time pricing is seen as one of the greatest benefits of smart metering in that it allows for higher rates to be charged during times of peak electricity usage and lower rates during off-peak times. The dynamic nature of the pricing would encourage consumers to shift non-essential energy use to off-peak hours, thereby reducing the need for additional power generation.
But consumer rights groups have been warning of increased power bills, and politically appointed commissioners appear to be listening.
Katherine Hamilton, president of the GridWise Alliance, said the Maryland decision highlights the need for greater outreach to "quantify the consumer benefits of the smart grid."
BG&E said the smart grid plan may be dead.
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REGULATORY AGENCIES – The challenge for the Smart Grid…
Regarding the decision of the Regulatory Agency in Maryland – BGE – follows below some comments, with no value judgments.
The mission of a Regulatory Agency is to provide favorable conditions for the electric power market to develop a balance between the agents and the benefit of society.
It is of fundamental importance for the development and deployment of Smart Grid work within the Regulatory Agency, if this work is not done with intelligence, knowledge, and especially transparency, we will not have a smart network.
The Regulatory Agencies will only be respected if the independence of the decision of its leaders and the technical capabilities of their servers are respected.
I believe it is fate of a Regulatory Agency does not please everyone and that no decision, is also a decision.
So the words abstention and procrastination should not appear in the dictionary of a Regulatory Agency.
Thus, collaborates with the government, providing suggestions for the improvement of the Power Sector, and when necessary, signals with loyalty and public spirit for problems that may negatively affect the consumer of electricity, gas, water, etc..
Regarding the transparency of their actions, and by operation of law must always submit a Public Hearing on proposed regulations affecting the rights of others.
That’s because the work done ensures the provision of an essential Public Utility service, which is the supply of electricity. Represents the state’s effort to ensure the fundamental principles, important in the social and economic life.
The regulatory processes should be the new challenges and opportunities that arise as a result of the dynamics of their own electricity sector in a context of growing economic integration, but always based on transparency, independence and better technique.
Unfortunately, the regulatory agencies around the world are influenced government, some more and some less, depending on the democratic institutions and the conscientization of its citizens.
The deployment of Smart Grid, as something new, for agencies, utilities, governments and consumers will still have far to go.
Each of them trying to understand their role, and defending their positions.