Progress Energy’s Smart Grid grant application was selected by the U.S. Department of Energy for award negotiations as part of the federal stimulus package. The $200 million grant application proposes to use grant funds, combined with $320 million in matching dollars from Progress Energy, for several system and equipment upgrades in the Carolinas and Florida that will enable the utility to control voltage levels and will facilitate a more efficient flow of electricity across power lines.
“Progress Energy is currently investing in several Smart Grid initiatives to meet our customer’s changing electricity needs throughout the communities that rely on us for reliable power,” said Bill Johnson, Progress Energy chairman, president and CEO. “This is an exciting opportunity that has the potential to expand investments necessary to transform the electric grid to give customers greater control of their energy use, enable utilities to harness the potential of renewable energy and electric vehicles and improve power quality and service reliability.”
Grant funds, combined with the company’s matching dollars, would be used for planned projects in Progress Energy’s Florida and Carolinas service areas. In the Carolinas, a distribution system initiative will enable Progress Energy to isolate power outages and equipment problems faster, resulting in fewer and shorter outages for customers. In Florida, a residential load control upgrade will make equipment compatible with future Smart Grid technologies.
Progress Energy also proposed to use funds for the installation of 160,000 “smart” meters that are capable of two-way communication. Smart meters capture information which, once new technology becomes available, will allow customers to view and control their energy use. Information also flows to the utility, alerting dispatchers to power outages and other problems, making it unnecessary for the customer to call and allowing the utility to begin repairs and restore service more quickly.
Federal funds would also allow Progress Energy to invest in some additional public infrastructure for plug-in electric vehicles (PEV) to encourage faster adoption in our service territories. Progress Energy is a utility partner in several PEV grants awarded by the federal government earlier this year.
The Electric Power Research Institute estimates that the nationwide implementation of smart grid technologies could reduce electricity consumption by more than 4 percent by 2030, representing a savings of more than $20 billion for American businesses and consumers.
About Progress Energy
Progress Energy (NYSE: PGN), headquartered in Raleigh, N.C., is a Fortune 500 energy company with more than 22,000 megawatts of generation capacity and $9 billion in annual revenues. Progress Energy includes two major electric utilities that serve approximately 3.1 million customers in the Carolinas and Florida. The company has earned the Edison Electric Institute’s Edison Award, the industry’s highest honor, in recognition of its operational excellence, and was the first utility to receive the prestigious J.D. Power and Associates Founder’s Award for customer service. The company is pursuing a balanced strategy for a secure energy future, which includes aggressive energy-efficiency programs, investments in renewable energy technologies and a state-of-the-art electricity system. Progress Energy celebrated a century of service in 2008. Visit the company’s Web site at www.progress-energy.com.
