The DOE grant represents an estimated 50 percent reimbursement for the project, with the state and local communities kicking in the remainder. The total cost for Burlington should be around $14.3 million. Last June, local voters approved $7.15 million in bonds to pay the city’s share. According to Ken Nolan, manager of power resources for BED, the bonds are scheduled to be issued in early October.
Nolan briefed the City Council on Sept. 26 prior to its unanimous approval of 14 contracts. The largest amounts are $3.49 million to Itron, Inc., mostly for the meters themselves; $1.05 million to Siemens Energy and eMeter for the data management system; and $877,215 to Telvent for upgrading the Utilities Group for Supervisor Control and Data Acquisition (SCADA) system, known as the “brains” of energy distribution.
The new meters will relay electrical use over a two-way system, allowing utilities and customers to monitor energy use without employees who physically read meters. Vermont is touted as a leader in energy innovation, with efforts under way to improve efficiency, develop renewable sources and convert to smart grid technology. This reputation has attracted Sandia National Laboratories, which has launched the Vermont-Sandia Partnership (http://www.uvm.edu/~vtsandia/) with the University of Vermont, Vermont Law School and Norwich University.
On Sept. 15, the Public Service Board led an interactive hearing in Brattleboro to collect public input on the privacy and security issues raised by installing smart meters in private homes. The board is also assessing a controversial “opt-out” policy under which homeowners who don’t want the meters would be forced to pay a monthly fee, estimated at $10, if they stick with traditional electric meters.
Burlington has so far spent $4.4 million on conversion, mostly on substation improvements, a fiber-optics loop and construction of a backup operations center. In order to leap forward from here, BED asked the council to approve most of the major expenditures as a package. However, some vendors haven’t been selected yet, and other contracts are expected to follow. The City Council will also face decisions “around future efforts surrounding customer education and phone replacement,” according to BED’s report.
Asked by the council to provide a timeline and describe the benefits, Nolan said that installation of smart meters in Burlington will begin next January. By April, many local homeowners will “start seeing how they use energy.” New rates will be developed, based on use analysis, and presented to the PSB by 2013. Those who are able to shift their energy use are expected to save money.
Beyond that, Nolan mentioned new appliances that can be turned on and off by the meter. In the long term, utilities will be able to use the data collected by the meters to “work with customers on usage,” he said.
Central Vermont Public Service and Green Mountain Power, the state’s two largest electric utilities, are also gearing up to install the new meters. In Rutland, installation should also be under way by January. But some consumers are concerned about who would have access to the information collected and whether it would be secure.
ACLU Director Allen Gilbert warns that in the past, GPS information, cell phone use and other electronic data have been obtained without proper warrants. He argues that any personal information collected by a smart meter should be protected, and customers should be informed if anyone gains access.
One of the weak links is SCADA, the “brain” that collects data and sends it to a central computer. In 1999, when a pipeline burst in Bellingham, Wash., a SCADA failure was implicated. SCADA network and control systems also run dams, power plants and gas and oil refineries.
“BED presently utilizes a SCADA system created by Telvent Utilities Group,” states the memo on Burlington’s smart-grid contracts, “but this software is several versions old and is designed to communicate utilizing radio technology.” The local utility plans to upgrade to the latest software, convert most of its communication systems to fiber-optics, and install a “video wall” distribution map. Remote terminals will allow the software to “speak with equipment on the distribution system.”
Security is a major focus for Sandia National Laboratories, a Lockheed Martin subsidiary headquartered in New Mexico with roots in the Manhattan Project during World War II. In fact, Sandia has long called itself a “national security lab.” But its 21st century mission also includes “security of the smart grid.”
According to Les Shephard, Sandia’s vice president for energy, resources and nonproliferation, Vermont will be a “test bed” for “how to bring these technologies to bear.” The state is appealing not only because of its leadership on energy issues, he told the Burlington Free Press in 2010, but also because of its climate.
“We could develop, deploy and assess various types of technology in cold weather,” Shephard said. “Our test facilities here are in the bright skies of New Mexico, where we have over 300 days of sunshine.”
The relationship with Sandia took off in 2008 when U.S. Sen. Bernie Sanders, I-Vt., began to push for a Vermont satellite lab. By early this year, it had evolved into a full-fledged public-private partnership that includes educational institutions and leading businesses. A $1 million grant from the Department of Energy is funding the initial development, including student internships and visits to Sandia’s home base by UVM professors.
In July, the project offered a series of short courses on smart-grid modernization for Vermont utility staff, energy-tech company management and other stakeholders to examine and promote conversion. A series of fall seminars, mainly focusing on the same issues, is under way in cooperation with the Gund Institute. On Oct. 11, Dr. Rush Robinett III will discuss “Integrating Renewables into the Electric Grid” on the UVM campus as part of the series. Sandia’s senior manager in the Grid Modernization and Military Energy Systems Group, Robinett began working with Sandia in the 1980s as part of the staff developing the Star Wars (Ballistic Missile Defense) program. Since then he has concentrated on robotics and power infrastructure.
According to its website, the Sandia-Vermont partnership was created to “enhance multidisciplinary education and workforce development” related to smart grid, promote research collaboration and “form liaisons with private and public stakeholders.” Sandia projects that more than 80 percent of Vermont consumers will be using smart meters by 2015.
Sanders envisions Vermont transformed “into a real-world lab for the entire nation” through its partnership with Sandia. “We’re at the beginning of something that could be of extraordinary significance to Vermont and the rest of the country,” he has stated. “This state is leading the country in energy efficiency. Period. We are No. 1.”
