Central Hudson Applies for Federal Funds to Support Smart Grid Initiative

Central Hudson Gas & Electric Corporation is seeking funds through the U.S. Department of Energy as part of the American Recovery and Reinvestment Act to support a smart grid project. The initiative will test and evaluate smart grid applications to increase electric system operating capabilities, reduce operating costs, improve service reliability and provide customers with real-time information on energy use and prices. The project will be implemented in a limited area to help determine the costs and benefits of installing a smart grid system throughout the entire Mid-Hudson Valley region.

“Our proposal recently received approval from the New York State Public Service Commission, pending receipt of federal funds that will pay for half of the investment,” said Charles A. Freni, Senior Vice President of Customer Services. The 30-month project will test smart grid equipment on select distribution circuits, install 10,000 smart meters on homes and businesses, and offer some residences the opportunity to have Home Area Network equipment installed to monitor and control energy usage in real time. The initiative also funds installation of a small number of recharging stations for Plug-in Hybrid Electric Vehicles.

Freni indicated that the project, which involves 10 of the approximately 275 distribution circuits in the utility’s Mid-Hudson service area, is expected to annually save 6,500 megawatt-hours of electricity and $562,000 in electric purchases through improved operating efficiencies, reduce operating and maintenance costs by $260,000, and reduce carbon emissions by 3,600 metric tons.

 “This initiative is the first step in bringing the latest smart grid technology to the Mid-Hudson Valley, and will provide new ways of exchanging information with our customers and monitoring the electric system itself,” said Freni. “Two-way communications, for example, can provide customers with real-time information on electricity usage and prices, and Central Hudson with instantaneous and more specific information on conditions with the electric distribution system. This will help our customers make more informed decisions about their energy use, improve system operating efficiencies and shorten restoration times during power outages.” The improvements would also facilitate connection of distributed generation, such as renewable energy, to the electric grid.

If approved, the federal funding would pay $8.6 million of the $17.3 million proposed project. “This is a unique opportunity to access federal funding for an important initiative that should prove to lower costs, improve service, and benefit the environment,” said Freni. “The project offers solutions for increasing operating efficiencies and addressing capacity constraints, which could delay the need for installing new infrastructure and prepare the system for future load growth.” 

The Department of Energy will be providing $3.9 billion to smart grid projects across the nation. Responses to applications are expected within 90 days.

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