Market Info, Pennsylvania

PSC considers approval of BGE $500M Smart Grid Project

In the summer of 2009, BGE announced a smart grid initiative intending to reduce peak electricity usage and increase savings for residential and commercial customers. The first phase of the program includes the installation of 2 million smart meters that will be able to reduce energy usage when demand is highest.

Is the program effective?

The overall cost of the initiative is $500 million dollars, in which $200 million BGE has already received in federal stimulus money. The customer surcharge will pay for the remaining $300 million by charging customers a few dollars a month. The Maryland Energy Administration and the PSC initially backed the initiative and indicted that the expected customer surcharge is cost-effective.  However, the Office of People’s Counsel suggests that the program is too risky and based heavily on assumptions. The OPC represents rate payers in the state and continuously monitors the adjustments in the industry.

Maryland Energy Initiatives

In 2008, Maryland came up with the EmPOWER Energy Efficiency Act with the ultimate goal of achieving a 15% reduction in per capita electricity consumption and peak demand by the end of 2015. BGE believes that the Smart Grid Initiative will be a vehicle to address the long-term energy and environmental objectives of the act, as well as be a “foundation from which we can build a more efficient and sustainable energy network in Maryland.”

Our Dedication to You

Regardless of whether the PSC and other parties approve the Smart Grid Initiative, Smart Choice Energy Services, LLC is committed to helping BGE commercial and industrial customers achieve savings. Contact us for more information on how you can reduce energy consumption and save money on your electric and gas bills.