Smart Grid Provisions in H.R. 6, 110th Congress (CRS Report for Congress)
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| Release Date |
Revised Feb. 13, 2008 |
| Report Number |
RL34288 |
| Report Type |
Report |
| Authors |
Amy Abel, Resources, Science, and Industry Division |
| Source Agency |
Congressional Research Service |
| Older Revisions |
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Summary:
The term Smart Grid refers to a distribution system that allows for flow of information from a customer's meter in two directions: both inside the house to thermostats and appliances and other devices, and back to the utility. This could allow appliances to be turned off during periods of high electrical demand and cost, and give customers real-time information on constantly changing electric rates. Efforts are being made in both industry and government to modernize electric distribution to improve communications between utilities and the ultimate consumer. The goal is to use advanced, information-based technologies to increase power grid efficiency, reliability, and flexibility, and reduce the rate at which additional electric utility infrastructure needs to be built.
Both regulatory and technological barriers have limited the implementation of Smart Grid technology. At issue is whether a distinction for cost allocation purposes can be made between the impact of Smart Grid technology on the wholesale transmission system and its impact on the retail distribution system. Another issue limiting the deployment of this technology is the lack of consistent standards and protocols. There currently are no standards for these technologies. This limits the interoperability of Smart Grid technologies and limits future choices for companies that choose to install any particular type of technology.
H.R. 6, as signed by the President, contains provisions to encourage research, development, and deployment of Smart Grid technologies. Provisions include requiring the National Institute of Standards and Technology to be the lead agency to develop standards and protocols; creating a research, development, and demonstration program for Smart Grid technologies at the Department of Energy; and providing federal matching funds for portions of qualified Smart Grid investments.
