Challenging times

With the initial launches of the new meter systems now unfolding across the country, representing its members and ensuring their capability for this change is vital for Edison Electric Institute (EEI), the largest electric utility trade association. “We represent around 75 percent of the electricity sector nationally, those who are investor-owned on the public stock exchange,” explains the Institute’s Jim Owen. In his role at the association, Owen discusses the importance of ensuring its members are supported by new government regulations or legislation – such as the Energy Independence and Security Act of 2007 – when they adopt smart grid technologies.

The association itself has dramatically changed as its industry has grown. EEI was originally founded in New York in 1933 with a financial emphasis, until its strategic move to Washington some 46 years later. “For most of the history of our organization, we focused significantly on financial matters, whereas since the move, we are now much more involved in federal government relations, be it regulatory or legislative.” Financial issues are still of high importance for EEI, but as Owen makes clear, its primary role is to represent its members in the full spectrum of federal activity in times of change.

Technological change is viewed by Owen as less dramatic and more gradual, allowing all of the EEI’s members to progress at a pace that reflects value for customers and the utilities that serve them: “At this point, the number of smart meters and the actual rollout of AMI technology, as we know it, is relatively modest.” Owen says that some states, such as California, have adopted a more aggressive approach, but even so, there is still much ground to be covered. “Within the next 10 to 20 years, we fully expect to see how AMI and Smart Grid is going to make a big impact on the way people use electricity and how much of it they use. Of course, this is once all the components are more commonplace and even more pervasive and utility companies have moved forward from pilot schemes.”

Owen views the impact to be threefold, affecting not only the consumers themselves but also the utility companies and in turn, the environment. He notes Electric Power Research Institute’s view of AMI. “They have some exciting ways to discuss what they call ‘prices to devices’. Assuming we have the rate structures, it would include real-time pricing. The customer can program his home to his own preferences, in ways that are also going to recognize and be sensitive to important swings in real-time prices.”

Owen said that in time the typical customer could have a smart meter in his or her home that’s connected to a broadband power line, allowing for an internet connection to the utility that makes this real-time pricing more feasible.

Staying in control

Owen says that controlling usage will be increasingly important for customers as energy prices continue to increase. “We’re in a rising cost environment for electricity, with rates going up and almost certainly will continue to do so for the foreseeable future. This is why it is important to make sure we are able to equip customers with all the tools that we can, so they can manage their energy more wisely. It’s a win-win proposition.”

Utility companies also will come out ahead, Owen believes, because AMI will “allow for utility companies to control their usage and become more efficient. Our utilities are working very aggressively with their state regulators and other stakeholders to try to find the common vision that’s going to allow us to do this.”

Increased control over energy use through AMI will contribute to getting a handle on carbon emissions. “It’s going to allow us to have a reasonable and sensible mechanism for establishing a price on carbon, and beginning the difficult but necessary process of slowing and then stopping, and then eventually reversing the growth of CO 2 emissions.”

The EEI celebrates its 75 th year anniversary in the industry this year, and it is clear there are more exciting and challenging times ahead for the association. Owen explains that one of those challenges will be ensuring adequate investment in the utility sector as it expands and grows to meet customer needs. “As an association, it is our role to help foster a regulatory and political climate in which utilities are going to have the capital they need to make all the necessary investments, making sure that we can make the progression we need in technology, to upgrade and expand the transmission grid and bring more renewable energy sources to the power grid.”

Central to the actualisation of technological changes and the implementation of policies such as AMI and smart grid is the increasing importance of energy efficiency. “This is why our utilities are working very aggressively with their state regulators and other stakeholders to find the common vision that’s going to allow us to become ever more efficient,” he said. “Smart grid and AMI are going to become critical components of that.”

“AMI will allow for utility companies to control their usage and become more efficient”

About EEI

The Edison Electric Institute (EEI) is the association of US shareholder-owned electric companies. Its members serve 95 percent of the ultimate customers in the shareholder-owned segment of the industry, and represent approximately 70 percent of the U.S. electric power industry.

It has more than 65 International electric companies as affiliate members, and more than 170 industry suppliers and related organizations as associate members.

Organized in 1933, EEI works closely with all of its members, representing their interests and advocating equitable policies in legislative and regulatory arenas.

In its leadership role, EEI provides advocacy, authoritative analysis, and critical industry data to its members, Congress, government agencies, the financial community and other opinion-leader audiences.

EEI provides forums for member company representatives to discuss issues and strategies to advance the industry and to ensure a competitive position in a changing marketplace.

EEI award programs

The Edison Award, EEI’s most coveted award – presented to one US shareholder-owned electric company and one international affiliate each year for distinguished leadership, innovation, and contribution to the advancement of the electric industry for the benefit of all.

Index of Investor-Owned Electric Utilities Award – acknowledges outstanding corporate financial performance.

Emergency Response Awards – recognize extraordinary efforts to restore power in times of crisis (Emergency Recovery Award) and efforts of other companies to assist fellow utilities in times of need (Emergency Assistance Award).

Advocacy Excellence Awards – recognize EEI member companies’ engagement and activism in public policy advocacy at the federal, state, and local levels.

National Accounts Outstanding Customer Service Awards – given to recipients who are chosen by major national multi-site electric customers for dedicated and superior customer service.

Safety Awards – presented in recognition of accident-free operations.

Supplier Diversity Awards, begun in 1985 – recognize EEI member companies for their outstanding achievements in the advancement of Supplier Diversity.