Can anyone in #energytwitter explain how the federal govt is supposed to ‘modernize the electric grid’ or support a ‘smart-grid’? I don’t get it. Grid modernization is a state issue. Feds can only encourage TL dev & mkt competition @ElephantEating @JesseJenkins
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Replying to @mc2maven @JesseJenkins
I agree that states are the center, but the Feds have some role. Example: a lot of the smart meters deployed in the 2009+ era were funded (or subsidized) through the ARRA Federal stimulus.
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Replying to @ElephantEating @JesseJenkins
Why did the smart meters need to be subsidized? The business case of reducing meter reads seems clear enough. Do you think a carbon tax would have encouraged the same deployment or utility organizational barriers would still be a hurdle?
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Replying to @mc2maven @JesseJenkins
I don't think smart meters have much of anything to do with carbon emissions, at least today. The business case is mostly based on the savings from meter reading.
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But why subsidize? Because most utilities that have installed them don't really use them for much yet. The government wanted shovel- ready "infrastructure", and AMI has it right in the name. SMs are useful, but I think utilities are only now starting to really use them.
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Smart meters will allow innovation in rate design. For instance, here in New York, National Grid and others have new rates to better allocate costs for those who adopt #BeneficialElectrification. (i.e. exploring demand-based rather than volumetric pricing.)
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