Energy is leading many agendas these days, and, indeed, the energy landscape is changing-taking it a step further, it is actually transforming. This could be as big a transformation for the electric utility industry as the automated teller machine was for the banking industry and the cell phone was for telecommunications

Yackira, Michael W.

English

University of Richmond

University of Richmond Law ReviewVolume 44Issue 3 Allen Chair Issue 2010 Article 73-1-2010Smart Grid Technology: The Future of the ElectricUtility IndustryMichael W. YackiraPresident and Chief Executive Officer, NV EnergyFollow this and additional works at: https://scholarship.richmond.edu/lawreviewPart of the Courts Commons, Judges Commons, State and Local Government Law Commons,and the Supreme Court of the United States CommonsThis Essay is brought to you for free and open access by the Law School Journals at UR Scholarship Repository. It has been accepted for inclusion inUniversity of Richmond Law Review by an authorized editor of UR Scholarship Repository. For more information, please contactscholarshiprepository@richmond.edu.Recommended CitationMichael W. Yackira, Smart Grid Technology: The Future of the Electric Utility Industry, 44 U. Rich. L. Rev. 1145 (2010).Available at: https://scholarship.richmond.edu/lawreview/vol44/iss3/7COMMENTARYSMART GRID TECHNOLOGY: THE FUTURE OF THEELECTRIC UTILITY INDUSTRYMichael W. Yackira *Energy is leading many agendas these days, and, indeed, theenergy landscape is changing-taking it a step further, it is ac-tually transforming. This could be as big a transformation for theelectric utility industry as the automated teller machine was forthe banking industry and the cell phone was for telecommunica-tions.We have all heard about different ways to produce electricity,from traditional sources, such as natural gas, to renewablesources, such as solar and wind. While new, more efficient waysof producing electricity have always been top of mind, communi-ties across the United States have recently begun investing in in-frastructure referred to as smart grid and smart meters, a tech-nology that enables customers to actively manage their energyexperience in an unprecedented, hands-on manner.'In October of 2009, NV Energy was fortunate to have receiveda $138 million grant in stimulus funding from the U.S. Depart-ment of Energy ("DOE") to put towards a $298 million smartgrid/smart meter project called Advanced Service Delivery* President and Chief Executive Officer, NV Energy. B.S., Lehman College. Mr.Yackira, a Certified Public Accountant, spent more than a decade as an executive withFPL Group, serving in several positions, including President of FPL Energy.1. See, e.g., OFFICE OF ELEC. DELIVERY & ENERGY RELIABILITY, U.S. DEP'T OFENERGY, THE SMART GRID: AN INTRODUCTION (2008), available at http://www.oe.energy.gov/DocumentsandMedia/DOESGBookSinglePages.pdf.1145UNIVERSITY OF RICHMOND LAW REVIEW("ASD"). 2 This project will allow for the implementation of smartgrid/smart meter technology throughout Nevada.3This is a game changer for our industry, and it is especiallyimportant for Nevada. For one, NV Energy electrically servesmost of the state, and that scope sets apart our ASD project frommany of the other existing and planned smart grid projects. 4 Thisnew technology will stretch across our 54,600 square-mile serviceterritory and reach nearly ninety-five percent of Nevada's popula-tion, giving almost 2.5 million people the opportunity to createtheir own energy experience.5Nevada's smart grid will feature home-area networks thatcombine two-way advanced metering via smart meters, which aresmall in-home displays that provide customers with real-time in-formation about their energy usage.6 Through smart meters, cus-tomers will be able to see both the current cost of power per kilo-watt hour and what it will be in the next hour, so that they mayadjust usage accordingly. 7 In many instances, the differences aresignificant, and customers who choose to conserve power duringhigher-priced hours will see the savings on their power bill.8 NVEnergy customers will also be able to see where they stand on2. Press Release, NV Energy, NV Energy Selected for Smart Grid InfrastructureGrant (Oct. 27, 2009), available at http://investors.nvenergy.comphoenix.zhtml?c=117698&p=irol-newsArticle&ID=1347163&highlight=. The grant was awarded under DOE'sSmart Grid Investment Grant Program, which will provide approximately $3.3 billion infunds from the American Recovery and Reinvestment Act of 2009, Pub. L. No. 111-5, 123Stat. 115, to "support manufacturing, purchasing and installation of existing smart gridtechnologies than can be deployed on a commercial scale." Press Release, U.S. Dep't ofEnergy, Obama Administration Announces Availability of $3.9 Billion to Invest in SmartGrid Technologies and Electric Transmission Infrastructure (June 25, 2009), available athttp://www.energy.gov/news2009/7503.htm.3. Press Release, NV Energy, supra note 2.4. See U.S. Dep't of Energy, Recovery Act Selections for Smart Grid InvestmentGrant Awards-By Category, Category 6: Integrated and/or Crosscutting Systems (Oct.27, 2009), http://www.energy.gov/recovery/smartgrid-maps/SGIGSelectionsCategory.pdf.5. See News Release, U.S. Dep't of Labor, U.S. Secretary of Labor Hilda L. Solis An-nounces $138 Million for Smart Grid Technology (Oct. 28, 2009), available at http://www.dol.gov/opa/media/press/opa/opa20091326.htm.6. See Jennifer Robison, Smart Meters Suggest Savings, LAS VEGAS REV. J., Oct. 28,2009, at Al.7. See id.; see also OFFICE OF ELEC. DELIVERY AND ENERGY RELIABILITY, U.S. DEP'TOF ENERGY, supra note 1, at 10-11.8. See Robison, supra note 6; see also OFFICE OF ELEC. DELIVERY AND ENERGYRELIABILITY, U.S. DEP'T OF ENERGY, supra note 1, at 13-14.1146 [Vol. 44:1145FUTURE OF ELECTRIC UTILITY INDUSTRYtheir current monthly bill in real time, which may also affect howthey use their energy.9Smart meters also provide more choices to our customers. Forexample, customers can elect to supply their homes with electrici-ty generated from renewable energy sources, but if the price be-comes too high they can switch to more traditional sources, andvice versa. 10 NV Energy customers will also enjoy the effects ofoperation savings associated with this new technology. ASD willlower operational costs and allow for better demand manage-ment, possibly curtailing the need for investment in new powerplants."The smart grid infrastructure project brings with it the addedbonus of economic stimulus. It is estimated that the installationof new smart meters alone will create approximately 200 jobs inthe early stages, and this only skims the surface of other jobs thatwill be needed to plan, deploy, install, and market the benefits ofthis new technology.'2NV Energy will begin implementing a pilot program for itsASD system within the next few months, with the ultimate goalof 1.45 million smart meters in homes and businesses across thestate by 2012.13 Smart grid technology will dramatically redefinethe relationship between utilities and their customers, makingthe effects of conservation on energy use much more tangible.This is a game changer for all of us, and NV Energy will help leadthe way.9. See Robison, supra note 6.10. Id.11. Id. See generally OFFICE OF ELEC. DELIVERY AND ENERGY RELIABILITY, U.S. DEP'TOF ENERGY, supra note 1, at 13-14.12. Robison, supra note 6.13. Press Release, NV Energy, supra note 2.2010] 1147

Smart Grid Technology: The Future of the Electric Utility Industry

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Smart Grid Technology: The Future of the Electric Utility Industry

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