An Important Lesson for the Smart Grid Industry
Last week, the Maryland Public Services Commission rejected the Baltimore Gas and Electric company’s proposal to implement smart meters in its service territory[1],[2]. BGE’s proposal would have passed on the cost of the new meters to the rate-payers. This, along with the potential for early obsolescence of the technology, were among the reasons cited by the MPSC for the rejection, which came as shock to the advanced metering infrastructure (AMI) industry.
The MPSC is very rightly concerned about the evolving nature of the technology and its implications for the consumer. In its role as state utility watchdog, the MPSC is simply rejecting the possibility of the rate-payer’s being charged twice as smart meter technology goes from proprietary to standards-based in the next few years, as the National Institute for Standards and Technology (NIST) is requiring.
The MPSC ruling noted that the technology on which the proposed meters are based is “dominant in the AMI market” yet has not yet been adopted by any appliance manufacturers[3]. This apparent contradiction simply reflects the fact that the AMI industry has been developed by a few pioneering vendors and industry organizations that have developed proprietary technology and communications protocols; and a few early-adopter utilities that have deployed it. This is always the case with innovative new technologies.
But in order to lower the cost of AMI and thus promote the rapid growth of the Smart Grid with all attendant benefits to consumers and the economy, we need open standards. Standards that have powered the growth of the Internet and associated data links such as 802.3 (Ethernet), 802.11 (WiFi) and 802.15.4 (used by 6LoWPAN) — established by IETF and IEEE - are now being mandated for AMI by NIST. (A previous blog entry[4] has outlined these new standards.)
The MPSC’s ruling is a reminder to us all that open and durable standards are a must for the AMI and Smart Grid to move forward.
Notes:
- MPSC ruling: http://webapp.psc.state.md.us/Intranet/Casenum/NewIndex3_VOpenFile.cfm?ServerFilePath=C:\Casenum\9200-9299\9208\\59.pdf
- NY Times commentary: http://www.nytimes.com/cwire/2010/06/23/23climatewire-mds-veto-of-advanced-meter-deployment-stuns-95998.html
- MPSC Ruling. Page 39.
- Arch Rock blog on Smart Grid standards: http://www.archrock.com/blog/2010/06/07/from-phynet-architecture-to-smart-grid-standards/
Tags: 6lowpan, AMI, Baltimore Gas and Electric, BG&E, IEEE, IETF, Maryland Public Services Commission, MPSC, NIST, smart-grid