Environmental Impact
Energy Independence
Green Jobs
Power Reliability
Modern Infrastructure
Modern Infrastructure
Issues

Most consumers don't know that it costs much more to produce energy during the peak hours of the day— typically between 2 p.m. and 7 p.m.—than it does at any other time. Because so many people use electricity at these hours, utility companies must activate additional plants, called peaking plants, to ensure everyone keeps their lights on. Unfortunately, these plants are only used to help meet peak demand.

Another difficulty America faces is the price of coal, which powers half of America's power plants and costs 40% more than it did in 1995.1 Even the cost of building power plants is rising dramatically. And legislation is predicted to enact a federal carbon tax on coal power plants as early as 2010.

All of these issues add up to one major problem: extra costs for the utility company that could potentially be reflected in your power bill.
 
 
  Opportunities

Smart grid technologies would empower you to manage energy usage and save money, giving you the power to choose when and how to use your electricity. A year-long study by the U.S. Department of Energy showed that real-time pricing information provided by the smart meter helped consumers reduce their electricity costs 10% on average and their peak consumption by 15%.2

With smart meters and enhanced net metering, consumers who generate their own power—using solar panels on their rooftops, for example—could sell back to the grid during peak hours, if this option were made available through their utility. This would help consumers offset rising power bills and their initial investment in solar panels.

However, one major problem stands between you and smarter energy choices. Utilities get paid for selling more electricity, and in most states there is no incentive for utilities to provide consumers with the option to better manage—and likely lower—their energy consumption. With changes in legislation and regulation, utilities could be given incentives for helping consumers use less and save more.

  
 
  1) Energy Information Administration. “Coal prices.” Average Open Market Mine Price of U.S. Coal 1995-2007. February 2009 .
2) DOE Pacific Northwest Laboratory, GridWise project. "Department of Energy Putting Power in the Hands of Consumers Through Technology." January 9, 2008.