The Smart Grid and the Stimulus

Between 2007 and 2009, the state of the American economy took a decidedly undesirable direction. In an attempt to get the economy growing at a healthier rate, the Bush Administration initiated the American Recovery and Reinvestment Act of 2009, more popularly known as the Stimulus Bill. (The Obama Administration continued the policy.) One of the noblest intentions of the bill is the emphasis on infrastructure development. Many of the roads and bridges in greatest need of repair are getting the top-to-bottom makeover that will keep them in use for another hundred years. American business, after all, is stifled without safe and adequate roads and bridges. There's another part of infrastructure that's sometimes overlooked, but no less important: the electric grid.

The electric grid is the extensive network of hardware that creates and distributes the electricity that keeps our appliances humming. It all starts at power plants that burn natural gas, coal, oil or split atoms. These processes generate steam that spins powerful turbines. Transformer substations then regulate the voltage that flows through the electrical lines and connect (above or below ground) to your home. The grid performed well during America's first electric century, but some changes are needed to improve the grid for the second.

The Department of Energy (DoE) is the government agency charged with overseeing all aspects of the way Americans use energy sources. When it comes to residential electricity, the DoE has expressed the need to revitalize the way we get our juice. The American population continues to grow and probably won't stop doing so. This necessitates more energy to maintain an increasingly digital lifestyle. That's why the DoE believes a smart grid is necessary; it enables the economy to grow while preserving and improving the environment.

One of the most important reasons to put stimulus dollars toward a smart electric grid was made clear in 2003, when certain transmission lines in Ohio were hit by a tree. Unfortunately, the grid in Ohio and surrounding states could not adapt quickly enough to the drops and surges in voltage that resulted. The power went out across the eastern seaboard, in Ohio and Michigan and even in the Canadian province of Ontario. The power grid, according to the DoE, consists of "more than 1,000,000 megawatts of generating capacity connected to more than 300,000 miles of transmission lines." In many places, however, power utilities don't know when the power is out until a homeowner calls to inform them about the outage. A smart grid is different; utilities are able to see interruptions in real time.

While many don't believe that government spending can lead to long-term economic benefit, upgrading the American electric grid would have clear benefits for business. When the power goes out, business shuts down, too. Productivity is important to any business, and these outages have dire financial consequences. For example, the Department of Energy claims that the 2003 blackout in the Northeast resulted in a loss of $6 billion.

Most importantly for homeowners, a smart grid allows individual power consumers to better monitor and reduce their use of electricity. A smart grid, coupled with smart electric meters, makes it easier for people to fit their electricity bill into their monthly budget. As electric cars start to make their way to American driveways, this kind of control will become more crucial than ever. After all, you will want to charge your car at night, when kilowatt/hour rates are lower. A smart grid makes these kinds of savings possible.

Texans will be happy to know that the federal stimulus money has found its way to the Lone Star State. The bill set aside over $200 million in funds to allow Texas electricity companies to complete their smart meter program and shore up any weak links in the Texas energy grid. In fact, instead of waiting for customers to inform the utility company about outages, the grid will be able to automatically adapt; in effect, the grid will heal itself to ensure continuity of service. Smart Grid News, an Internet information resource, points out that the project resulted in the creation of 300 jobs. Even better, the total rises to 2,500 jobs when you consider the indirect positions created by such a big, complicated project.

Taking on any massive national undertaking can be nerve-wracking for Americans on both sides of the aisle. The worst course of action in this case, however, is inaction. Thanks to projects funded by the stimulus, Americans should have fewer worries about their electricity in the future.