FCC: COURT AFFIRMS/REMANDS FCC'S BPL RULES

Last month, the U.S. Court of Appeals for the District of Columbia handed down at least a partial victory for the FCC concerning its Broadband over Power Line (BPL) rules. The court's decision in the ARRL's challenge of BPL rules affirmed the FCC on two substantive points, but remanded two other issues regarding the Commission's handling of the proceeding in which it adopted the rules. The court agreed with the FCC that it had the authority to authorize BPL on an unlicensed basis, and that it did not violate Section 301 of the Communications Act in the process, denying ARRL's claim that BPL should be licensed due to an interference-causing potential. Second, the court agreed with the FCC that it acted reasonably by rejecting ARRL's proposal to restrict BPL operations to the 30-50 MHz band.

However, the decision finds that the FCC violated the Administrative Procedures Act (APA) by failing to fully disclose internal studies on BPL interference, and by failing to reasonably explain its decision to adopt a 40 dB extrapolation factor instead of the 20 dB extrapolation factor proposed by ARRL. The case is remanded to the FCC to fully disclose the internal studies and to open them up for public notice and comment. Also, the FCC must provide a reasoned explanation in support of the 40 dB extrapolation factor. Following the decision, the FCC is expected to re-open its BPL proceeding to carry out the court's decision.

In the meantime, the FCC rules remain in effect because the court remanded them, rather than vacated them. As a practical matter, that means that BPL operators should continue to follow the rules, including the extrapolation factor. As a procedural matter, the FCC has 30 days (i.e. until May 25, 2008) in which to appeal the case, either to the DC Circuit Court or to the Supreme Court. If it does not appeal, it must act on the issues that were remanded by the Court, but it is under no deadline to do so.

CONGRESS: COMMITTEE PASSES ENERGY AND TAX EXTENDERS ACT OF 2008
WITH SMART METER PROVISIONS

Last week, the House Ways and Means Committee passed legislation entitled the "Energy and Tax Extenders Act of 2008" (H.R. 6049), which includes provisions for accelerated depreciation for smart electric meters and smart electric grid systems. Under current law, utilities are generally able to recover the cost of meters over the course of 20 years. The bill would cut the cost recovery time in half by allowing taxpayers to recover the cost of this property over a 10-year period. This could significantly encourage utilities to invest in and deploy smart meters and smart electric systems.

In order to qualify as a "smart electric meter", the meter must be able to 1) measure and record electricity usage data on a time-differentiated basis in at least 24 separate time segments per day, 2) provide for the exchange of information between supplier or provider and the customer's electric meter in support of time-based rates or other forms of demand response, 3) provide data to such supplier or provider so that the supplier or provider can provide energy usage information to customers electronically, and 4) provide net metering. In order to qualify as a smart grid electric system, the electronics and related equipment must be capable of 1) sensing, collecting, and monitoring data of or from all portions of a utility's electric distribution grid, 2) providing real-time, two-way communications to monitor or manage such grid, and 3) providing real time analysis of and event prediction based upon collected data that can be used to improve electric distribution system reliability, quality, and performance. For more information, please contact [4] the UPLC Legal/Regulatory Department.

INDUSTRY: BPL GLOBAL EXPANDS BPL IN CARACAS

BPL Global, Ltd. announced this week that its BPL implementation in Caracas, Venezuela has been deemed successful by La Nueva Electricidad de Caracas (EDC), and that EDC will be expanding the deployment. The BPL deployment in Petare, a popular community in the East side of Caracas, has been operating in a trial mode serving numerous multi-dwelling units (MDU) and providing Internet service to low-income areas that are underserved. Reportedly, enrollment of the broadband-enabled buildings has exceeded the 20 percent goal for the pilot. This project also includes an elementary school with more than 1,000 students, enabling children access to the Internet. EDC is now expanding the served area in Petare to other primary schools and to Barrio Adentro, which provides medical assistance to the community.

"Our broadband solutions allow for much broader access to high-speed Internet," said Geraldo Guimaraes, executive director, Latin America for BPL Global. "We're excited about the economic and quality-of-life benefits these kinds of programs can bring to entire cities. The sophistication and versatility of our design makes it possible to work with a range of electrical infrastructures, operating environments and service requirements."

As part of the engagement, BPL Global:

• Analyzed the Caracas electrical infrastructure, operating environment and service requirements presented by EDC.
• Evaluated several best-of-breed BPL vendor solutions and designed the best solution based upon the requirements of EDC and the characteristics of the local electrical grid.
• Managed equipment sourcing from ordering, importing and inventorying, to acceptance testing.
• Trained network operation center employees and field technicians.
• Provided ongoing back-up support to the EDC field team.

 

INDUSTRY: ONCOR BUYS BPL NETWORK IN DALLAS FROM CURRENT

Last month, Oncor Electric Delivery (Oncor) and Current Group, LLC (Current) announced that Oncor has agreed to purchase Current's existing Smart Grid network in Dallas, Texas as well as additional equipment for approximately $90 million. Current and Oncor expect to close the transaction in the second quarter of 2008. Under the agreement, Oncor acquired the rights to deploy BPL over one-sixth of its service territory, and it has the option of expanding the BPL network to up to one-half of its service territory, if it chooses to do so. Current will license its Smart Grid software systems and sell additional products to Oncor. Oncor will use the network for Smart Grid applications.

Jim Greer, Oncor Senior Vice President of Asset Management and Engineering explained that, "[t]hrough our use of the Smart Grid network, we have been able to detect distribution network issues before they impacted our customers," and that the "Smart Grid network has become an integral part of our operations by providing us new and valuable real-time information on our distribution network. As such, we determined we want to own the Smart Grid network."

Tom Casey, Current's President & CEO stated that "[t]hrough its Smart Grid leadership Oncor has validated the benefits of monitoring and managing the distribution of electricity through a widely deployed Smart Grid," and that "Current intends to use the proceeds of this transaction to continue to expand our deployments and enhance our Smart Grid portfolio."

INDUSTRY: MANASSAS SELLS BPL FRANCHISE TO GRIDPLEX

The City of Manassas has entered into an agreement with GridPlex, which will own and operate the BPL network previously owned and operated by ComTek. According to GridPlex's Web site, "GridPlex is leading the global Green revolution with innovative, patented energy and conservation products and services that increase electric system efficiency and reliability, can save billions for utilities and consumers, and will also reduce greenhouse gas emissions." GridPlex is headed by Lawrence Silverman, who has been involved in BPL for several years through his company, Broadband Energy Networks.

Mike Moon, Director of Utilities for the City of Manassas, stated that "[W]e are pleased to see [Smart Grid] being realized in the unique systems and services that GridPlex has developed and plans to use to enhance our citywide network. Not only will it help us, as a utility, to deliver better and more reliable electricity and water supplies to our community but we can foresee additional opportunities to use this network to promote energy and water conservation, help reduce greenhouse gas emissions and provide other customer services that will continue to position Manassas as a leader among 'green communities' around the nation." For more information about Manassas' BPL deployment and GridPlex, contact [5] the UPLC Legal/Regulatory Department.