What is the future of SmartGridCity Boulder?

Smart grid is a term used to describe upgrading the electric power system with the capacity to provide more reliable and cost-effective service, accommodate renewable energy sources and give customers tools for saving on their electric usage.

It is a huge effort that will take many years and billions of dollars to implement. The smart grid is an essential ingredient to the future of the United States for reasons of efficiency, reliability and national security. Recent power failures like the one in San Diego last summer highlight all of these concerns.

SmartGridCity is an Xcel Energy Inc. demonstration project imposed upon the city of Boulder in 2008, with no notice before hand, which tried to implement a smart-grid platform in an environmental friendly population with the expressed goal of energy savings, improved service and the opportunity to reduce emissions.

There is no official report by Xcel, and its dozen partners on what energy savings have been achieved or how much money was invested by whom for what purposes. Xcel told me that it plans to provide the results of a third party evaluation to the Colorado PUC.

Former Boulder mayor Will Toor told me that SmartGridCity is not what Boulder expected and not what it wants because it failed to show residents how to conserve energy, utilize renewable energy and has had no public transparency for the program.

According to Boulder city council member Matt Applebaum, this program lacks the ability to automate home-energy usage so that energy savings that are programmed once by the home owner instead of leaving it to his memory when to turn on or off home appliances.

In addition, Applebaum told me that the SmartGridCity effort may have little or no value to the city of Boulder if it does go forward with its municipalization effort, but that this determination would have to be made on a technical basis by consultants delving into SmartGridCity with details known only to Xcel. The SmartGridCity system may be incompatible with current smart-grid technology and may need replacing to meet the goals of Boulder.

Xcel gave me statistics on SmartGridCity efforts including 23,000 smart meters installed, 46,664 premises equipped with power line communications and 3,400 residents enrolled in a new pricing plans unavailable anywhere else.

There are also a number of equipment upgrades that Xcel said provides better reliability for its power network. In addition, there is a MyAccount program that lets smart-meter customers see power usage data by going online. Xcel told me it is looking for some of the 3,400 smart-meter customers on the special billing program to participate in its in-home smart device pilot that includes in home-energy displays and wireless control for a thermostat.

If Boulder municipalizes its electric utility, where will this leave SmartGridCity?

Boulder’s smart-grid consultants will have to get detailed technical and performance data from Xcel on what has been done to determine what value SmartGridCity might have moving forward, and this will not be an easy process for the city if Xcel does not cooperate. Xcel recently threatened to turn off solar- and energy-efficiency incentives if it doesn’t have a franchise agreement with the city.

If Boulder does renew a franchise agreement with Xcel, then Xcel may pursue SmartGridCity to qualify with the PUC to receive its final $15 million still being held back. The PUC allows Xcel Energy, an investor owned utility, to return more than 10 percent to its investors for capital expenses so the investors will make this same profit for a failed SmartGridCity project or a successful one; the rate payers in Colorado will pick up the tab either way.

The question for Boulder voters is whether Xcel is too slow in moving away from coal and toward riskier but cleaner renewable energy sources when there are no financial incentives.

When Boulder defines its goals and preferences for its electrical power system regarding renewable sources versus coal and how this relates to consumer behavior and billing rates, the smart grid will become the focus once again to make this happen in practice, whether SmartGridCity program components are used or replaced.

Tendril Networks Inc., a Boulder based smart-grid technology company serving more than 35 energy providers, told me that it would be willing to work with the city of Boulder in taking advantage of existing investments to help consumers improve their insight into, choice and control over their home energy use, regardless of provider.

According to Tendril, “We’ve found that when empowered with choices that meet their unique lifestyles and information, most consumers will take steps to save energy.”

Carl Kalin is a Boulder-based clean-tech entrepreneur who focuses on energy efficiency work. He can be reached at 720-771-7350 or e-mail carl.kalin@gmail.com.

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