April 23, 2010 - Baltimore Gas and Electric Company (BGE), has finalized an agreement with the U.S. Department of Energy (DOE) for the awarding of a $200 million federal stimulus grant in support of a comprehensive Smart Grid initiative. When fully implemented, Smart Grid will result in an estimated $2.6 billion in customer savings over the life of the project.
"Finalization of this agreement between BGE and the Department of Energy is a major step forward in making this highly competitive and coveted grant of $200 million a reality," said Kenneth W. DeFontes Jr., president of BGE. "This agreement is further affirmation of the comprehensive nature of BGE's multi-year approach to implementing Smart Grid. While there are certain operational benefits to be realized, the true beneficiaries of this grant and technology will be BGE's customers. To that end, we look forward to the Maryland Public Service Commission (PSC) issuing its decision soon."
Implementation of the Smart Grid initiative is contingent upon approval by the Maryland PSC, which has concluded its hearing process and is now deliberating the matter. Approval by the Maryland PSC would pave the way for the flow of the $200 million, and with it, the multi-year phasing-in of a long-term transformation in the way BGE customers utilize and conserve energy on a day-to-day basis
The new Smart Grid technology, once fully implemented, is expected to transform the way BGE customers consume and conserve electricity, and in the process, allow them greater control of their monthly energy bills. Examples of customer benefits include bill credits for reduced energy consumption during periods of peak demand, enhanced information about energy usage and costs along with opportunities to save, improved system reliability and significant environmental benefits.
Finally, Smart Grid will play a meaningful role in helping BGE customers achieve required energy savings under the state of Maryland's EmPOWER Maryland law, which was passed in 2008. The law calls for a 15 percent reduction in energy use and peak demand statewide by 2015.