For a Smart Grid, Look to Smart States

Empowered by Washington’s fiscal infusion, the states must now transform this vision into reality. That means using stimulus funds effectively and efficiently while kick-starting the economy, so that a foundation for future growth and improved quality of life can be built. In the end, the goal is to help consumers, utilities, the nation and the planet win.

But which states have made the most progress on smart-grid policy, planning and implementation, and which are now in the best position to deploy recently released stimulus dollars productively?

I consulted a handful of the brightest smart-grid experts around the country for the 10 “smartest” states in America and, much to my surprise and delight, there was a strong consensus about who’s leading the charge toward a modernized and digitized electricity system. So, without further hesitation, here are the top 10 smart-grid states, according to a cross section of influential smart-grid players:

Tier 1

California: The Golden State is at the top of everyone’s list. On the policy side, regulators are way out in front, pushing new smart-grid practices. For their part, the state’s three big utilities — Southern California Edison, San Diego Gas and Electric and Pacific Gas & Electric — have each developed best practice studies and frameworks that can help the rest of the country grasp the benefits of smart-grid improvements. All three utilities also have smart meter programs in place. And in terms of stimulus readiness, the state’s governor, Arnold Schwarzenegger, has vowed to get more smart-grid stimulus money than any other state in the nation.

Texas: The Lone Star State is just behind California as the current smart-grid leader. From a policy perspective, Texas is not a pioneer like California. But three of its utilities — CenterPoint Energy, Oncor and Austin Energy — are as progressive as any in the country, and they are well under way with smart meter rollouts. The next breakthrough here will be integrating a host of digital tools for the smart grid.

Tier 2

Florida: The Sunshine State has established a strong build-out for the smart grid — especially in the area of load control and communications infrastructure. A major utility, Florida Power & Light, has many substantive programs and is planning a number of new rollouts that will advance smart-grid efforts.

Illinois: The Prairie State has been cited for its collaborative approach to the smart grid. This involves and engages communities up and down and all across the state. Tight community linkage is crucial for optimal smart-grid success.

Pennsylvania: The Keystone State is the nation’s leader when it comes to smart meter installation; a 2008 report from the Federal Energy Regulatory Commission indicates that advanced metering penetration has reached nearly 25 percent in Pennsylvania.

West Virginia: The Mountain State is about to unveil a fully integrated statewide smart-grid plan. Experts are impressed by this comprehensive approach at such an early stage.

Ohio: The Buckeye State has a group of enlightened policy makers who have stressed smart-grid education.

Tier 3

New Jersey: The Garden State’s guiding light on smart grid, Commissioner Fred Butler of the New Jersey Public Utilities Commission, is highly regarded and well known as a progressive pragmatist.

Connecticut: The Constitution State is considered a smart-grid policy and build-out leader; a supporter of Energy Improvement Districts, Connecticut has begun to increase use of distributed generation and demand response programs.

Colorado: The Centennial State has lots going for it in the smart grid world. First, Xcel Energy’s 100,000-person SmartGridCity project; second, the National Renewable Energy Laboratory in Golden, a driving force in smart-grid thinking; and lastly, Governor Bill Ritter, who is a big believer in Colorado’s new energy economy.

States to Watch

Michigan: DTE Energy is a strong and forward-thinking utility that will enhance smart-grid upgrades.

New York: Utilities in the state have done innovative research on the smart grid and how it would fare in dense urban areas.

Hawaii: The Department of Energy has selected Hawaii as a smart-grid test case because of fossil-fuel dependence.

These informal smart-grid rankings are meant to be a snapshot in time, because our electricity system is about to undergo major changes, thanks — in part — to federal stimulus funding.

In such a dynamic environment, it’s unclear who will become the smart-grid leaders, and who will be the followers, in 2010. It’s also hard to say which states will be able to forge and stay ahead in all three major smart-grid categories — policy making, planning and implementation.

That said, there’s much to be learned right now from regulators and utilities in states like California, Texas, Florida, Pennsylvania, West Virginia, Illinois, Ohio, New Jersey, Connecticut and Colorado.

Like all the states, these 10 smart-grid leaders have their work cut out for them in this recession. With unemployment increasing and incomes stagnant or declining, recovery seems a long way off. But there are glimmers of hope and light, and the concerted effort to upgrade and rebuild our nation’s electricity infrastructure — state by state — could generate some of the jobs and part of the opportunity that will be necessary to see us through. 

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About the author: Jesse Berst is head of GlobalSmartEnergy (globalsmartenergy.com), an internationally recognized consulting firm, and author of the forthcoming book, Electronomics — How The Smart Grid Will Power American Prosperity.

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