STATES: REGULATORS PREDICT SMART GRID R&D FUNDING FOR BPL

State regulators told Communications Daily this month that the Broadband over Power Line (BPL) industry stands to benefit from funding for Smart Grid R&D provided under the Energy Independence and Security Act of 2007, signed into law in mid-December. Tony Clark, Commissioner of the North Dakota Public Service Commission and Chair of NARUC's Telecommunications Committee, said that the big driver for BPL communications capabilities for consumers would be utilities first building the system to benefit the operations of the grid itself, with the communications aspect being a "free rider" on the system. James Ervin of the North Carolina Utilities Commission, who earlier headed the NARUC electricity committee, added that, "[t]o the extent that the electric utility is using BPL also for broadband services, the electric utility customers shouldn't be required to subsidize that activity because it provides unfairness among broadband providers." Specifically, the law authorizes $100,000,000 each year from 2008 to 2012 for the U.S. Department of Energy to implement a regional demonstration initiative for Smart Grid in up to five electricity control areas. Both regulators liked the idea of federal funding, but bristled about provisions in the bill that require states to consider Smart Grid investments by utilities. They noted that states already are seeing momentum for Smart Grid, even before the federal legislation, and they resisted federal government intrusion into matters of cost-recovery. In the words of Tony Clark, "[w]hat will drive the state commission to allow recovery on it [Smart Grid] is going to be whether it saves consumers money and is in the public interest." For more information on the Energy Independence and Security Act of 2007 and its Smart Grid provisions, contact [1] the UPLC Legal/Regulatory Department.

STATES: MASSACHUSETTS ENERGY BILL WOULD REQUIRE
SMART GRID PILOT/TIME OF USE PRICING

This month, the Massachusetts State Senate Ways and Means Committee voted to approve revised energy bill S.2457; which includes provisions for Smart Grid and time of use pricing. By September 1, 2008, section 77 of the bill requires utilities to submit a proposed plan to the state PUC establishing a 6-month pilot program for a "Smart Grid" which utilizes the electric delivery system, advanced "smart" meters, and other advanced technology to operate an integrated grid network communication system in a limited geographic area. According to the bill, each Smart Grid pilot program includes, advanced "smart" meters which provide real time measurement and communication of energy consumption, implementation of phone and e-mail notification systems to warn those customers of high prices so they can reduce their usage accordingly, automated load management systems embedded within current demand-side management programs and remote status detection and operation of distribution system equipment. The bill also necessitates utilities file a proposal by September 1, 2008 for a 6 month pilot program that requires time of use or hourly pricing for commodity service for a minimum of 0.5% of the company's customers. According to the bill, those customers who actively participate in the pilot would reduce peak loads by a minimum of 5%. Under the provisions of the bill, the state PUC would be required to review and approve or modify these proposals on or before January 1, 2009; detailing the operation and results of such programs, including information concerning changes in consumer's energy use patterns, any identified disincentives to the deployment of Smart Grid systems throughout the Commonwealth, an assessment of the value of the program to both participants and non-participants, and recommendations concerning modification or expansion of the programs and further deployment and implementation.

INDUSTRY: BPL MAKES SPLASH AT CES

There was plenty of BPL equipment at the Consumer Electronics Show last week, and UPLC was there to check it out. HomePlug had its own booth; and Arkados, Yitran and Asoka were showing off
their latest products, including audio systems that play whole-house synchronized music from an iPod, network testers and home networking adapters. Meanwhile, DS2 had its own booth
and was promoting several different chipsets, including its latest 400 Mbps chipset. Also, the HD-PLC Alliance, which includes major consumer electronics companies like Panasonic, had a
huge booth that demonstrated BPL-enabled products such as a powerline photo printer, Ethernet bridges, a USB hub, a Wi-Fi router, a WiMax router, an MP4 player and a point-of-sales computer. Robin Sweeten, group manager of strategic marketing for Panasonic, said that Panasonic has 100% of the market for BPL products in Japan, adding "[i]t's kind of a running joke that we've kept this kind of a secret here." Sweeten also said that Panasonic plans to market its power line products in the US for consumers to stream HD content around their homes. "That's the starting point: to give consumers the ability to link whatever they want in the house." Meanwhile Sharp introduced a technology called Aquos Net that brings Internet content and remote diagnostics to Aquos LCD TVs using powerline adapters. The adapters allow consumers to connect multiple devices, such as TVs, set-top boxes, gaming consoles, PCs and routers, using Sharp's PLC adapters wherever there are power outlets in the home.

INDUSTRY: TELKONET INTRODUCES NEXT GENERATION
200 MBPS PRODUCT LINE

Telkonet held a conference call this week to unveil its Gen5 200 Mbps product line. It reported that it will be taking orders immediately and ship in March. This product line will target both the SOHO and consumer market. The new product line is 14 times faster than its current product line. It provides video surveillance, which is hot for its government customers. Secondly, the product line has more security – 128 AES encryption – which is again targeted towards its government market. Finally, there are other features to target certain verticals. The new product line will work in both AC and DC environments. Also, it is ruggedized to operate in hot and cold environments and includes additional interfaces such as RS232, RS485 and Ethernet. Telkonet is targeting the energy management and utility substation markets with this product line. Following the announcement, Telkonet stock rose almost 40%.