Power from restless sea stirs the imagination

By New York Times


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For years, technological visionaries have painted a seductive vision of using ocean tides and waves to produce power. They foresee large installations off the coast and in tidal estuaries that could provide as much as 10 percent of the nationÂ’s electricity.

But the technical difficulties of making such systems work are proving formidable. Last year, a wave-power machine sank off the Oregon coast. Blades have broken off experimental tidal turbines in New YorkÂ’s turbulent East River. Problems with offshore moorings have slowed the deployment of snakelike generating machines in the ocean off Portugal.

Years of such problems have discouraged ocean-power visionaries, but have not stopped them. Lately, spurred by rising costs for electricity and for the coal and other fossil fuels used to produce it, they are making a new push to overcome the barriers blocking this type of renewable energy.

The Scottish company Pelamis Wave Power plans to turn on a small wave-energy farm — the world’s first — off the coast of Portugal by year’s end, after fixing the broken moorings. Finavera Renewables, a Canadian company that recently salvaged its sunken, $2.5 million Oregon wave-power machine, has signed an agreement with Pacific Gas & Electric to produce power off the California coast by 2012. And in the East River, just off Manhattan, two newly placed turbines with tougher blades and rotors are feeding electricity into a grocery store and parking garage on Roosevelt Island.

“It’s frustrating sometimes as an ocean energy company to say, yeah, your device sank,” said Jason Bak, chief executive of Finavera. “But that is technology development.”

Roughly 100 small companies around the world are working on converting the seaÂ’s power to electricity. Many operate in Europe, where governments have pumped money into the industry. Companies and governments alike are betting that over time, costs will come down. Right now, however, little electricity is being generated from the ocean except at scattered test sites around the world.

The East River — despite its name, it is really a tidal strait with powerful currents — is the site of the most advanced test project in the United States.

Verdant Power, the company that operates it, was forced to spend several years and millions of dollars mired in a slow permit process, even before its turbine blades broke off in the currents. The company believes it is getting a handle on the problems. Verdant is trying to perfect its turbines and then install 30 of them in the East River, starting no later than spring 2010, and to develop other sites in Canada and on the West Coast.

Plenty of other start-ups also plan commercial ocean-power plants, at offshore sites such as Portugal, Oregon and Wales, but none have been built.

Ocean-power technology splits into two broad categories, tidal and wave power. Wave power, of the sort Finavera is pursuing, entails using the up and down motions of the waves to generate electricity. Tidal power — Verdant’s province — involves harnessing the action of the tides with underwater turbines, which twirl like wind machines.

(Decades-old tidal technologies in France and Canada use barrage systems that trap water at high tide; they are far larger and more obtrusive than the new, below-waterline technologies.)

A third type of power, called ocean thermal, aims to exploit temperature differences between the surface and deep ocean, mainly applicable in the tropics.

Ocean power has more potential than wind power because water is about 850 times denser than air, and therefore packs far more energy. The oceanÂ’s waves, tides and currents are also more predictable than the wind.

The drawback is that seawater can batter and corrode machinery, and costly undersea cables may be needed to bring the power to shore. And the machines are expensive to build: Pelamis has had to raise the equivalent of $77 million.

Many solar start-ups, by contrast, need as little as $5 million to build a prototype, said Martin Lagod, co-founder of Firelake Capital Management, a Silicon Valley investment firm. Mr. Lagod looked at investing in ocean power a few years ago and decided against it because of the long time horizons and large capital requirements.

General Electric, which builds wind turbines, solar panels and other equipment for virtually every other type of energy, has stayed clear of ocean energy. “At this time, these sources do not appear to be competitive with more scalable alternatives like wind and solar,” said Daniel Nelson, a GE spokesman, in an e-mail message. (An arm of GE has made a small investment in Pelamis.)

Worldwide, venture capital going to ocean-power companies has risen from $8 million in 2005 to $82 million last year, according to the Cleantech Group, a research firm. However, that is a tiny fraction of the money pouring into solar energy and biofuels.

This month the Energy Department doled out its first major Congressionally-funded grants since 1992 to ocean-power companies, including Verdant and Lockheed Martin, which is studying ocean thermal approaches.

Assuming that commercial ocean-power farms are eventually built, the power is likely to be costly, especially in the near term. A recent study commissioned by the San Francisco Public Utility Commission put the cost of harnessing the Golden GateÂ’s tides at 85 cents to $1.40 a kilowatt-hour, or roughly 10 times the cost of wind power. San Francisco plans to forge ahead regardless.

Other hurdles abound, including sticky environmental and aesthetic questions. In Oregon, crabbers worry that the wave farm proposed by Ocean Power Technologies, a New Jersey company, would interfere with their prime crabbing grounds.

“It’s right where every year we deploy 115,000 to 120,000 crab pots off the coast for an eight-month period to harvest crab,” said Nick Furman, executive director of the Oregon Dungeness Crab Commission. The commission wants to support renewable energy, but “we’re kind of struggling with that,” Mr. Furman said.

George Taylor, chief executive of Ocean Power Technologies, said he did not expect “there will be a problem with the crabs.”

In Washington State, where a utility is studying the possibility of installing tidal power at the Admiralty Inlet entrance to Puget Sound, scuba divers are worried, even as they recognize the need for clean power.

Said Mike Racine, president of the Washington Scuba Alliance: “We don’t want to be dodging turbine blades, right?”

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Electricity Regulation With Equity & Justice For All

Energy equity in utility regulation prioritizes fair rates, clean energy access, and DERs, addressing fixed charges and energy burdens on low-income households through stakeholder engagement and public utility commission reforms.

 

Key Points

Fairly allocates clean energy benefits and rate burdens, ensuring access and protections for low-income households.

✅ Reduces fixed charges that burden low-income households

✅ Funds community participation in utility proceedings

✅ Prioritizes DERs, energy efficiency, and solar in impacted areas

 

By Kiran Julin

Pouring over the line items on your monthly electricity bill may not sound like an enticing way to spend an afternoon, but the way electricity bills are structured has a significant impact on equitable energy access and distribution. For example, fixed fees can have a disproportionate impact on low-income households. And combined with other factors, low-income households and households of color are far more likely to report losing home heating service, with evidence from pandemic power shut-offs highlighting these disparities, according to recent federal data.

Advancing Equity in Utility Regulation, a new report published by the U.S. Department of Energy’s (DOE’s) Lawrence Berkeley National Laboratory (Berkeley Lab), makes a unifying case that utilities, regulators, and stakeholders need to prioritize energy equity in the deployment of clean energy technologies and resources, aligning with a people-and-planet electricity future envisioned by advocacy groups. Equity in this context is the fair distribution of the benefits and burdens of energy production and consumption. The report outlines systemic changes needed to advance equity in electric utility regulation by providing perspectives from four organizations — Portland General Electric, a utility company; the National Consumer Law Center, a consumer advocacy organization; and the Partnership for Southern Equity and the Center for Biological Diversity, social justice and environmental organizations.
 
“While government and ratepayer-funded energy efficiency programs have made strides towards equity by enabling low-income households to access energy-efficiency measures, that has not yet extended in a major way to other clean-energy technologies,” said Lisa Schwartz, a manager and strategic advisor at Berkeley Lab and technical editor of the report. “States and utilities can take the lead to make sure the clean-energy transition does not leave behind low-income households and communities of color. Decarbonization and energy equity goals are not mutually exclusive, and in fact, they need to go hand-in-hand.”

Energy bills and electricity rates are governed by state laws and utility regulators, whose mission is to ensure that utility services are reliable, safe, and fairly priced. Public utility commissions also are increasingly recognizing equity as an important goal, tool, and metric, and some customers face major changes to electric bills as reforms advance. While states can use existing authorities to advance equity in their decision-making, several, including Illinois, Maine, Oregon, and Washington, have enacted legislation over the last couple of years to more explicitly require utility regulators to consider equity.

“The infrastructure investments that utility companies make today, and regulator decisions about what goes into electricity bills, including new rate design steps that shape customer costs, will have significant impacts for decades to come,” Schwartz said.

Solutions recommended in the report include considering energy justice goals when determining the “public interest” in regulatory decisions, allocating funding for energy justice organizations to participate in utility proceedings, supporting utility programs that increase deployment of energy efficiency and solar for low-income households, and accounting for energy inequities and access in designing electricity rates, while examining future utility revenue models as technologies evolve.

The report is part of the Future of Electric Utility Regulation series that started in 2015, led by Berkeley Lab and funded by DOE, to encourage informed discussion and debate on utility trends and tackling the toughest issues related to state electric utility regulation. An advisory group of utilities, public utility commissioners, consumer advocates, environmental and social justice organizations, and other experts provides guidance.

 

Taking stock of past and current energy inequities

One focus of the report is electricity bills. In addition to charges based on usage, electricity bills usually also have a fixed basic customer charge, which is the minimum amount a household has to pay every month to access electricity. The fixed charge varies widely, from $5 to more than $20. In recent years, utility companies have sought sizable increases in this charge to cover more costs, amid rising electricity prices in some markets.

This fixed charge means that no matter what a household does to use energy more efficiently or to conserve energy, there is always a minimum cost. Moreover, low-income households often live in older, poorly insulated housing. Current levels of public and utility funding for energy-efficiency programs fall far short of the need. The combined result is that the energy burden – or percent of income needed to keep the lights on and their homes at a healthy temperature – is far greater for lower-income households.

“While all households require basic lighting, heating, cooling, and refrigeration, low-income households must devote a greater proportion of income to maintain basic service,” explained John Howat and Jenifer Bosco from the National Consumer Law Center and co-authors of Berkeley Lab’s report. Their analysis of data from the most recent U.S. Energy Information Administration’s Residential Energy Consumption Survey shows households with income less than $20,000 reported losing home heating service at a pace more than five times higher than households with income over $80,000. Households of color were far more likely than those with a white householder to report loss of heating service. In addition, low-income households and households of color are more likely to have to choose between paying their energy bill or paying for other necessities, such as healthcare or food.

Based on the most recent data (2015) from the U.S. Energy Information Administration (EIA), households with income less than $20,000 reported losing home heating service at a rate more than five times higher than households with income over $80,000. Households of color were far more likely than those with a white householder to report loss of heating service. Click on chart for larger view. (Credit: John Howat/National Consumer Law Center, using EIA data)

Moreover, while many of the infrastructure investment decisions that utilities make, such as whether and where to build a new power plant, often have long-term environmental and health consequences, impacted communities often are not at the table. “Despite bearing an inequitable proportion of the negative impacts of environmental injustices related to fossil fuel-based energy production and climate change, marginalized communities remain virtually unrepresented in the energy planning and decision-making processes that drive energy production, distribution, and regulation,” wrote Chandra Farley, CEO of ReSolve and a co-author of the report.


Engaging impacted communities
Each of the perspectives in the report identify a need for meaningful engagement of underrepresented and disadvantaged communities in energy planning and utility decision-making. “Connecting the dots between energy, racial injustice, economic disinvestment, health disparities, and other associated equity challenges becomes a clarion call for communities that are being completely left out of the clean energy economy,” wrote Farley, who previously served as the Just Energy Director at Partnership for Southern Equity. “We must prioritize the voices and lived experiences of residents if we are to have more equity in utility regulation and equitably transform the energy sector.”

In another essay in the report, Nidhi Thaker and Jake Wise from Portland General Electric identify the importance of collaborating directly with the communities they serve. In 2021, the Oregon Legislature passed Oregon HB 2475, which allows the Oregon Public Utility Commission to allocate ratepayer funding for organizations representing people most affected by a high energy burden, enabling them to participate in utility regulatory processes.

The report explains why energy equity requires correcting inequities resulting from past and present failures as well as rethinking how we achieve future energy and decarbonization goals. “Equity in energy requires adopting an expansive definition of the ‘public interest’ that encompasses energy, climate, and environmental justice. Energy equity also means prioritizing the deployment of distributed energy resources and clean energy technologies in areas that have been hit first and worst by the existing fossil fuel economy,” wrote Jean Su, energy justice director and senior attorney at the Center for Biological Diversity.

This report was supported by DOE’s Grid Modernization Laboratory Consortium, with funding from the Office of Energy Efficiency and Renewable Energy and the Office of Electricity.

 

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Solar-powered pot: Edmonton-area producer unveils largest rooftop solar array

Freedom Cannabis solar array powers an Acheson cannabis facility with 4,574 rooftop panels, a 1,830-kilowatt system by Enmax, cutting greenhouse gas emissions, lowering energy costs, and advancing renewable energy, sustainability, and operational efficiency in Edmonton.

 

Key Points

A 1,830-kW rooftop solar system with 4,574 panels, cutting GHG emissions and energy costs at the Acheson facility.

✅ 1,830-kW array offsets 1,000+ tonnes GHG annually

✅ Supplies ~8% of annual power; saves $200k-$300k per year

✅ 4,574 rooftop panels installed by Enmax in Acheson

 

Electricity consumption is one of the biggest barriers to going green in the cannabis industry, where the energy demands of cannabis cultivation often complicate sustainability, but an Edmonton-area pot producer has come up with a sunny solution.

Freedom Cannabis unveiled the largest rooftop solar system used by a cannabis facility in Canada at its 126,000-square foot Acheson location, 20 kilometres west of Edmonton, as solar power in Alberta continues to surge, on Tuesday.

The "state-of-the-art" 1,830-kilowatt solar array—made up of 4,574 panels—was supplied by Enmax and will offset more than 1,000 tonnes of greenhouse gas emissions each year, reflecting how new Alberta solar facilities are undercutting natural gas on price, the company said.

The state-of-the-art solar array—made up of 4,574 panels—was supplied by Enmax and will offset more than 1,000 tonnes of greenhouse gas emissions at Freedom Cannabis every year. Nov. 12, 2019. (Freedom Cannabis)

That will supply roughly eight per cent of the building's annual power consumption and reduce costs by $200,000 to $300,000 annually.

"This strategy will supplement our operating costs for power by up to eight to 10 per cent, so it is something that in time will save us costs on power requirements," said Troy Dezwart, co-founder of Freedom Cannabis.

Dezwart said sustainability was an important issue to the company from its outset, aligning with an Alberta renewable energy surge that is expected to power thousands of jobs.

"We're fortunate enough to be able to have these types of options and pursue them," said Dezwart.

The entire system cost Freedom Cannabis $2.6 million to build, but nearly a million of that came from a provincial rebate program that has since been cancelled by the UCP government, even as a federal green electricity deal with an Edmonton company signals ongoing support.

The company cited a 2017 report that found cannabis growers in the U.S. used enough electricity to power 1.7-million homes, and said cannabis-related power consumption is expected to increase by 1,250 per cent in Ontario over the next five years, even though Canadian solar demand has been lagging overall.

“It’s more important than ever for businesses to manage their energy footprint, and solar is an important part of that solution,” Enmax director Jason Atkinson, said. “This solar installation will help reduce operating costs and offset a significant portion of GHG emissions for decades to come.”

Freedom says it has other initiatives underway to reduce its footprint, in a region planning the Edmonton airport solar farm among other projects, including water remediation and offering 100 per cent recyclable cannabis packaging tins.

The company's first crops are expected to go to market in December.

 

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Toshiba, Tohoku Electric Power and Iwatani start development of large H2 energy system

Fukushima Hydrogen Energy System leverages a 10,000 kW H2 production hub for grid balancing, demand response, and renewable integration, delivering hydrogen supply across Tohoku while supporting storage, forecasting, and flexible power management.

 

Key Points

A 10,000 kW H2 project in Namie for grid balancing, renewable integration, and regional hydrogen supply.

✅ 10,000 kW H2 production hub in Namie, Fukushima

✅ Balances renewable-heavy grids via demand response

✅ Supported by NEDO; partners Toshiba, Tohoku Electric, Iwatani

 

Toshiba Corporation, Tohoku Electric Power Co. and Iwatani Corporation have announced they will construct and operate a large-scale hydrogen (H2) energy system in Japan, based on a 10,000 kilowat class H2 production facility, which reflects advances in PEM hydrogen R&D worldwide.

The system, which will be built in Namie-Cho, Fukushima, will use H2 to offset grid loads and deliver H2 to locations in Tohoku and beyond, while complementary approaches like power-to-gas storage in Europe demonstrate broader storage options, and will seek to demonstrate the advantages of H2 as a solution in grid balancing and as a H2 gas supply.

The product has won a positive evaluation from Japan’s New Energy and Industrial Technology Development Organisation (NEDO), and its continued support for the transition to the technical demonstration phase. The practical effectiveness of the large-scale system will be determined by verification testing in financial year 2020, even as interest grows in nuclear beyond electricity for complementary services.

The main objectives of the partners are to promote expanded use of renewable energy in the electricity grid, including UK offshore wind investment by Japanese utilities, in order to balance supply and demand and process load management; and to realise a new control system that optimises H2 production and supply with demand forecasting for H2.

Hiroyuki Ota, General Manager of Toshiba’s Energy Systems and Solutions Company, said, “Through this project, Toshiba will continue to provide comprehensive H2 solutions, encompassing all processes from the production to utilisation of hydrogen.”

Manager of Tohoku Electric Power Co., Ltd, Mitsuhiro Matsumoto, added, “We will study how to use H2 energy systems to stabilize electricity grids with the aim of increasing the use of renewable energy and contributing to Fukushima.”

Moriyuki Fujimoto, General Manager of Iwatani Corporation, commented, “Iwatani considers that this project will contribute to the early establishment of a H2 economy that draws on our experience in the transportation, storage and supply of industrial H2, and the construction and operation of H2stations.”

Japan’s Ministry of Economy, Trade and Industry’s ‘Long-term Energy Supply and Demand Outlook’ targets increasing the share of renewable energy in Japan’s overall power generation mix from 10.7% in 2013 to 22-24% by 2030. Since output from renewable energy sources is intermittent and fluctuates widely with the weather and season, grid management requires another compensatory power source, as highlighted by a near-blackout event in Japan. The large hydrogen energy system is expected to provide a solution for grids with a high penetration of renewables.

 

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US looks to decommission Alaskan military reactor

SM-1A Nuclear Plant Decommissioning details the US Army Corps of Engineers' removal of the Fort Greely reactor, Cold War facility dismantling, environmental monitoring, remote-site power history, and timeline to 2026 under a deactivated nuclear program.

 

Key Points

Army Corps plan to dismantle Fort Greely's SM-1A reactor and complete decommissioning of remaining systems by 2026.

✅ Built for remote Arctic radar support during the Cold War

✅ High costs beat diesel; program later deemed impractical

✅ Reactor parts removed; residuals monitored; removal by 2026

 

The US Army Corps of Engineers has begun decommissioning Alaska’s only nuclear power plant, SM-1A, which is located at Fort Greely, even as new US reactors continue to take shape nationwide. The $17m plant closed in 1972 after ten years of sporadic operation. It was out of commission from 1967 to 1969 for extensive repairs. Much of has already been dismantled and sent for disposal, and the rest, which is encased in concrete, is now to be removed.

The plant was built as part of an experimental programme to determine whether nuclear facilities, akin to next-generation nuclear concepts, could be built and operated at remote sites more cheaply than diesel-fuelled plants.

"The main approach was to reduce significant fuel-transportation costs by having a nuclear reactor that could operate for long terms, a concept echoed in the NuScale SMR safety evaluation process, with just one nuclear core," Brian Hearty said. Hearty manages the Army Corps of Engineers’ Deactivated Nuclear Power Plant Program.

#google#

He said the Army built SM-1A in 1962 hoping to provide power reliably at remote Arctic radar sites, where in similarly isolated regions today new US coal plants may still be considered, intended to detect incoming missiles from the Soviet Union at the height of the Cold War. He added that the programme worked but not as well as Pentagon officials had hoped. While SM-1A could be built and operated in a cold and remote location, its upfront costs were much higher than anticipated, and it costs more to maintain than a diesel power plant. Moreover, the programme became irrelevant because of advances in Soviet rocket science and the development of intercontinental ballistic missiles.

Hearty said the reactor was partially dismantled soon after it was shut down. “All of the fuel in the reactor core was removed and shipped back to the Atomic Energy Commission (AEC) for them to either reprocess or dispose of,” he noted. “The highly activated control and absorber rods were also removed and shipped back to the AEC.”

The SM-1A plant produced 1.8MWe and 20MWt, including steam, which was used to heat the post. Because that part of the system was still needed, Army officials removed most of the nuclear-power system and linked the heat and steam components to a diesel-fired boiler. However, several parts of the nuclear system remained, including the reactor pressure vessel and reactor coolant pumps. “Those were either kept in place, or they were cut off and laid down in the tall vapour-containment building there,” Hearty said. “And then they were grouted and concreted in place.” The Corps of Engineers wants to remove all that remains of the plant, but it is as yet unclear whether that will be feasible.

Meanwhile, monitoring for radioactivity around the facility shows that it remains at acceptable levels. “It would be safe to say there’s no threat to human health in the environment,” said Brenda Barber, project manager for the decommissioning. Work is still in its early stages and is due to be completed in 2026 at the earliest. Barber said the Corps awarded the $4.6m contract in December to a Virginia-based firm to develop a long-range plan for the project, similar in scope to large reactor refurbishment efforts elsewhere. Among other things, this will help officials determine how much of the SM-1A will remain after it’s decommissioned. “There will still be buildings there,” she said. “There will still be components of some of the old structure there that may likely remain.”

 

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New Hampshire rejects Quebec-Massachusetts transmission proposal

Northern Pass Project faces rejection by New Hampshire regulators, halting Hydro-Quebec clean energy transmission lines to Massachusetts; Eversource vows appeal as the Site Evaluation Committee cites development concerns and alternative routes through Vermont and Maine.

 

Key Points

A project to transmit Hydro-Quebec power to Massachusetts via New Hampshire, recently rejected by state regulators.

✅ New Hampshire SEC denied the transmission application

✅ Up to 9.45 TWh yearly from Hydro-Quebec to Massachusetts

✅ Eversource plans appeal; alternative routes via Vermont, Maine

 

Regulators in the state of New Hampshire on Thursday rejected a major electricity project being piloted by Quebec’s hydro utility and its American partner, Eversource.

Members of New Hampshire’s Site Evaluation Committee unanimously denied an application for the Northern Pass project a week after the state of Massachusetts green-lit the proposal.

Both states had to accept the project, as the transmission lines were to bring up to 9.45 terawatt hours of electricity per year from Quebec’s hydroelectric plants to Massachusetts as part of Hydro-Quebec’s export bid to New England, through New Hampshire.

The 20-year proposal was to be the biggest export contract in Hydro-Quebec’s history, in a region where Connecticut is leading a market overhaul that could affect pricing, and would generate up to $500 million in annual revenues for the provincial utility.

Hydro-Quebec’s U.S. partner, Eversource, said in a new release it was “shocked and outraged” by the New Hampshire regulators’ decision and suggested it would appeal.

“This decision sends a chilling message to any energy project contemplating development in the Granite State,” said Eversource. “We will be seeking reconsideration of the SEC’s decision, as well as reviewing all options for moving this critical clean energy project forward, including lessons from electricity corridor construction in Maine.”

The New Hampshire Union Leader reported Thursday the seven members of the evaluation committee said the project’s promoters couldn’t demonstrate the proposed energy transport lines wouldn’t interfere with the region’s orderly development.

Hydro-Quebec spokesman Serge Abergel said the decision wasn’t great news but it didn’t put a end to the negotiations between the company and the state of Massachusetts.

The hydro utility had proposed alternatives routes through Vermont and Maine amid a 145-mile transmission line debate over the corridor should the original plan fall through.

“There is a provision included in the process in the advent of an impasse, which allows Massachusetts to go back and choose the next candidate on the list,” Abergel said in an interview. “There are still cards left on the table.”

 

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Texas Utilities back out of deal to create smart home electricity networks

Smart Meter Texas real-time pricing faces rollback as utilities limit on-demand reads, impacting demand response, home area networks, ERCOT wholesale tracking, and thermostat automation, reducing efficiency gains promised through deregulation and smart meter investments.

 

Key Points

A plan linking smart meters to ERCOT prices, enabling near real-time usage alignment and automated demand response.

✅ Twice-hourly reads miss 15-minute ERCOT price spikes.

✅ Less than 1% of 7.3M meters use HAN real-time features.

✅ Limits hinder automation for HVAC, EV charging, and pool pumps.

 

Utilities made a promise several years ago when they built Smart Meter Texas that they’d come up with a way for consumers to monitor their electricity use in real time. But now they’re backing out of the deal with the approval of state regulators, leaving in the lurch retail power companies that are building their business model on the promise of real time pricing and denying consumers another option for managing their electricity costs.

Texas utilities collected higher rates to finance the building of a statewide smart meter network that would allow customers to track their electricity use and the quickly changing prices on wholesale power markets almost as they happened. Some retailers are building electricity plans around this promise, providing customers with in-home devices that would eventually track pricing minute-by-minute and allow them to automatically turn down or shut off air conditioners, pool pumps and energy sucking appliances when prices spiked on hot summer afternoons and turn them back on when they prices fell again.

The idea is to help save consumers money by allowing them to shift their electricity consumption to periods when power is cheaper, typically nights and weekends, even as utility revenue in a free-power era remains a debated topic.

“We’re throwing away a large part of (what) ratepayers paid for,” said John Werner, CEO of GridPlus Texas, one of the companies offering consumers a real-time pricing plan that is scheduled to begin testing next month. “They made the smart meters dumb meters.”

When Smart Meter Texas was launched a decade ago by a consortium of the state’s biggest utilities, it was considered an important part of deregulation. The competitive market for electricity held the promise that consumers would eventually have the technology to control their electricity use through a home area network and cut their power bills.

Regulators and legislators also were enticed by the possibility of making the electric system more efficient and relieving pressure on the power grid as consumers responded to high prices and cut consumption when temperatures soared, with ongoing discussions about Texas grid reliability informing policy choices.

One study found that smart meters coupled with smart real time consumption monitors could reduce electricity use between 3 percent and 5 percent, according to Call Me Power, a website sponsored by the European electricity price shopping service Selectra.

But utilities complained that the home area network devices were expensive to install and not used very often, and, with flat electricity demand weighing on growth, they questioned further investment. CenterPoint manager Esther Floyd Kent filed an affidavit with the commission in May that it costs the utility about $30,000 annually to support the network devices, plus maintenance.

Over a six-year period, CenterPoint paid $124,500, or about $20,000 a year, to maintain the system. As of April, there were only 4,067 network devices in CenterPoint’s service area, meaning the utility pays about $30.70 each year to maintain each device.

Centerpoint last year generated $9.6 billion in revenues and earned a $1.8 billion profit, according to its financial filings. CenterPoint officials did not respond to requests for comment.

Other utilities that are part of the Smart Meter consortium also complained to the Public Utility Commission that, up to now, the system hasn’t developed. All told, Texas has 7.3 million meters connected to Smart Meter Texas, but less than 1 percent are using the networking functions to track real-time prices and consumption, according to the testimony of Donny R. Helm, director of technology strategy and architecture for the state’s largest utility Oncor Electric Delivery Co. in Dallas.

The isssue was resolved recently through a settlement agreement that limits on-demand readings to twice an hour that Smart Meter Texas must provide customers. The price of power changes every 15 minutes, so a twice an hour reading may miss some price spikes.

The Public Utility Commission signed off on the deal, and so did several other groups including several retail electricity providers and the Office of Public Utility Counsel which represents residential customers and small businesses.

Michele Gregg, spokeswoman for the Public Utility Counsel, testified in December that the consumer advocate supported the change because widespread use of the networks never materialized. Catherine Webking, an Austin lawyer who represents the Texas Energy Association for Marketers, a group of retail electric providers, said she believes the deal was a reasonable resolution of providing the benefits of Smart Meter Texas while not incurring too much cost.

But Griddy, an electricity provider that offers customers the opportunity to pay wholesale power prices, which also issued a plea to customers during a price surge, said the state hasn’t given the smart-meter networks a chance and could miss out on its potential. Griddy was counting on the continued adoption of real time pricing as the next step for customers wanting to control their electricity costs.

Right now, Griddy sends out price alerts from the grid operator Electric Reliability Council of Texas so businesses like hotels can run washers and dryers when electricity prices are cheapest. But the company was counting on a smart-meter program that would allow customers to track wholesale prices and manage consumption themselves, making Griddy’s offerings attractive to more people.

Wholesale prices are generally cheaper than retail prices, but they can fluctuate widely, especially when the Texas power grid faces another crisis during extreme weather. Last year, wholesale prices averaged less than 3 cents per kilowatt hour, much lower than than retail rates that now are running above 11 cents, but they can spike at times of high demand to as much as $9 a kilowatt hour.

What customers want is to be able to use energy when it’s cheapest, said Greg Craig, Griddy’s CEO, and they want to do it automatically. They want to be able to program their thermostat so that if the price rises they can shut off their air conditioning and if the price falls, they can charge their electric-powered vehicle.

Griddy customers may still save money even without real time data, he said. But they won’t be able to see their usage in real time or see how much they’re spending.

“The big utilities have big investments in the existing way and going to real time and more transparency isn’t really in their best interest,” said Craig.

 

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