AEP Awarded $75M in Stimulus Funding for GridSmart Program

The Department of Energy (DOE) has announced that AEP Ohio will receive $75 million in stimulus funding to go towards the establishment of the utility’s GridSmart project.  The company received the award based on its demonstration of how smart grid technology can boost the safety and reliability of energy nationwide through regional projects.  The funding will support a program that is expected to kick off next month in Central Ohio with the installation of 110,000 “smart meters” in residences and businesses.

 “Smart meters” act as a two-way communication between customers and the AEP gird which allows for real-time distribution management.  AEP can use the information to improve performance of the grid, track outages, measure peak usages in certain locations and other functions to enhance the efficiency of energy as it is used.  Customers can use the system for real-time tracking of their energy usage.  They can log into a Web portal which shoes them how much energy they are using and for what purposes so that they can cut down on wasted energy usage and energy costs.  The program is expected to have wide implications on energy efficiency. 

AEP also plans to fund the testing of plug-in hybrid electric vehicles and energy efficient appliances as part of the  GridSmart project.

In total the GridSmart initiative is expected to cost $150 million.  AEP has dedicated $54.5 million of its own money toward the program which will be added to the federal funding.  The additional $20 million will be financed with help of corporate partners including Battelle and General Electric.

According to the story in Business First, the project is expected to create more than 500 jobs.
For more details, see the story in Business First.