Example of “smart meter”
New power meters may save JCPB customers some cash
By Jeff KeelingPress Business Editor
jkeeling@johnsoncitypress.com
The “smart grid” is coming to Johnson City, and along with new electric meters for all 74,000 Johnson City Power Board customers by the end of next year, it could eventually bring lower energy costs for some.
The $10 million project won’t require a rate increase — JCPB already has money from a bond issuance to pay for it — and should create savings for customers willing to embrace new “time-of-use” technologies.
“This will allow us to do things that will help save money for somebody who’s willing to teach themselves how to use energy during off-peak times,” JCPB Chief Public Relations Officer Robert White said.
That push for “time-of-use” billing is coming from the Tennessee Valley Authority, which wants its power distributors to help reduce “peak load.” During high-demand periods across the TVA system, the utility has to turn to its most expensive fuels, or even purchase very expensive power from other companies, and this increases cost for everyone. Conversely, in the middle of the night TVA can get by with its lowest cost sources, such as hydroelectric and nuclear.
JCPB’s smart-metering project, which is being installed by Tantalus Systems Corp., of Vancouver, B.C., will pave the way for each household or business to “talk to” the power board’s control center. One potential cost-saver for customers will be the “tiered pricing” that benefits those who change habits enough to take advantage of lower rate periods.
Another advantage is the ability to have customers help with “load shedding” to “shave” the peak demand level across the TVA service area. For instance, customers may opt to connect their water heaters directly to the grid so that JCPB could remotely shut them off during peak demand times.
JCPB knows customers will be asking “what’s in it for me,” and White said the answer could be significant savings.
“It will not make a difference to you until we start offering financial incentives, and we’re studying right now what will work best in that regard,” White said. “There’s going to have to be a really good financial incentive for people to start changing their use habits, but I think you’ll find there will be really good discount opportunities for users who are willing to use off-peak.”
The Tantalus meter installation will begin this spring. White said it will be most effective working in concert with JCPB’s planned fiber-optic “backbone” that will connect its 30 substations and JCPB’s operations center. That system should get started this year, as well.
Without the fiber backbone, JCPB could still offer smart grid-type services, but data can’t be transmitted as fast, White said.
Together, JCPB CEO Homer G’Fellers said, the two systems will create “a significant opportunity to enhance service while continuing to provide cost-effective power to our customers.”
The Power Board may begin test projects with groups of volunteer customers by late this year, White said. And though a heat pump’s got to run when it’s bitterly cold, White said even high winter costs could be lowered for customers willing to make adjustments.
Peak load in winter usually comes between 5 and 8 a.m., “when people are getting up, taking hot showers, wanting to be real warm because it’s cold outside and sometimes even running extra space heaters.” The same is true between about 5 and 7 p.m. during hot summer months, when folks crank up air conditioners.
Once the smart metering system and time-of-use billing are fully in place, customers should have no difficulty learning the difference in what they’ll pay by adjusting their habits, White said — and then it will be up to them.
“Some people will do it because they love the environment, but some will only make changes because they feel like it’s going to be less money out of their wallet. From the retail side, I do believe that if we don’t make incentives worthwhile, you’re not going to see customers making these changes, which is what we want.”
White said JCPB plans to spend a lot of time over the next year “coming up with mechanisms to better educate our customers about how this can help them and us.”