Dominion Virginia Power, a subsidiary of Dominion (NYSE: D) plans to invest about $600 million to create a "smart" electric grid that it said will produce environmental benefits while providing customers with substantial cost savings.
The smart grid is part of a larger conservation plan, called "Powering Virginia," which was approved by company leadership last week, and must be approved by the Virginia State Corporation Commission. The company hopes to begin implementing programs next year.
"This plan will provide a jump-start toward meeting the 10% conservation goal enacted last year by the Virginia General Assembly and the governor, getting the Commonwealth more than one-third of the way there within five years," said David A. Heacock, president of Dominion Virginia Power.
The smart grid will allow energy to be delivered more efficiently and will result in significant energy savings by allowing more precise control of the energy flow, Dominion said.It plans to replace all of its existing electric meters with Advanced Metering Infrastructure (AMI), capable of two-way communications, as well as additional equipment to monitor and control the electric distribution system.
The resulting fuel savings for customers will more than offset the cost of the new equipment, Dominion said. The technology also is expected to lead ultimately to improvements in service reliability and the ability of customers to monitor and control their electricity use.
Over the next 15 years the plan is expected to result in customer savings in excess of $1 billion through lower electricity use, avoiding the need for two future power stations and delaying the need for two others.
However, the demand from Dominion Virginia Power customers for reliable, around-the-clock electricity that can be provided only by power stations still exists and is projected to grow by 4,000 megawatts (MW) over the next decade.
"This is a significant step toward meeting Virginia’s electricity conservation goal in a way that will deliver real and measurable benefits," Heacock said. "We plan to develop additional initiatives aimed at reaching the full 10% goal by the 2022 target in a cost-effective manner."
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