Duke Energy Case Study
Duke Energy
New Project Background and Analysis
As we are all keenly aware, the answer to efficient, clean, profitable power is comparable to searching for the Holy Grail. Strong headwinds face any power utilities efforts to build more carbon based power plants. Nuclear power, while clean in a sense, faces community shouts of “Not in my backyard.” Duke Energy, and several other players in the power industry, has embraced the idea of more efficient delivery of its current power production, and, real time monitoring of power usage throughout its established grid. This efficiency and monitoring capability has been labeled “Smart Grid Technology” by the power industry. While not alone in their quest, Duke is the largest investor in the …show more content…
These devices are the “brains” of the smart grid system. They create a virtual energy network – collecting data from “smart meters” installed at the end user locations as well as data from other digital equipment on the power lines, then send it over a wireless network back to Duke Energy and then back to the customer. The “smart meters” installed at the end user locations give the communication nodes, installed on the transformers, something to talk about. Valuable data about a home or business usage is in constant streaming mode to Duke Energy. This data allows Duke to lower or raise production during high or low usage times. Without the Smart Grid, Duke’s output is at best a guessing game, and in fact during the day, up to 30% of electricity produced by Duke can go …show more content…
Annually Duke will file a request with Power Utility Commission for the cost of their smart grid efforts less any savings realized from the use of the technology. Currently the PUC has capped the amount the customers will pay for the program, so increases in residential customers’ monthly bills will not exceed $0.50 in year one, $1.50 in year two, $3.25 in years three, $5.25 in year four, and capping at year five and forward at a maximum of $5.25. These increases are not cumulative and are still subject to regulatory approval. While these amounts have not been approved by the regulatory commission, they are the maximum amounts the customers will be able to be
New Project Background and Analysis
As we are all keenly aware, the answer to efficient, clean, profitable power is comparable to searching for the Holy Grail. Strong headwinds face any power utilities efforts to build more carbon based power plants. Nuclear power, while clean in a sense, faces community shouts of “Not in my backyard.” Duke Energy, and several other players in the power industry, has embraced the idea of more efficient delivery of its current power production, and, real time monitoring of power usage throughout its established grid. This efficiency and monitoring capability has been labeled “Smart Grid Technology” by the power industry. While not alone in their quest, Duke is the largest investor in the …show more content…
These devices are the “brains” of the smart grid system. They create a virtual energy network – collecting data from “smart meters” installed at the end user locations as well as data from other digital equipment on the power lines, then send it over a wireless network back to Duke Energy and then back to the customer. The “smart meters” installed at the end user locations give the communication nodes, installed on the transformers, something to talk about. Valuable data about a home or business usage is in constant streaming mode to Duke Energy. This data allows Duke to lower or raise production during high or low usage times. Without the Smart Grid, Duke’s output is at best a guessing game, and in fact during the day, up to 30% of electricity produced by Duke can go …show more content…
Annually Duke will file a request with Power Utility Commission for the cost of their smart grid efforts less any savings realized from the use of the technology. Currently the PUC has capped the amount the customers will pay for the program, so increases in residential customers’ monthly bills will not exceed $0.50 in year one, $1.50 in year two, $3.25 in years three, $5.25 in year four, and capping at year five and forward at a maximum of $5.25. These increases are not cumulative and are still subject to regulatory approval. While these amounts have not been approved by the regulatory commission, they are the maximum amounts the customers will be able to be