MONTPELIER, Vt. (AP) — Gov. Peter Shumlin, electric and telecom utility officials announced an agreement Wednesday that they said would give Vermont more control over energy consumption, expand access to broadband and create jobs.
The agreement between Green Mountain Power, Central Vermont Public Service Corp., and Vermont Telephone Company calls for deployment of "smart grid" technology, in which information about electrical usage will be transmitted over a newly expanded broadband Internet system serving the state. It also will enable VTel to deploy broadband Internet access to a territory about 20 to 25 percent larger than was previously planned.
"What we are celebrating today is the operating agreement that supports the marriage of smart grid and our telecommunications infrastructure. Smart grid is a national and Vermont priority," Shumlin said.
One consumer advocate said skepticism was warranted, however. Philene Taormina, director of advocacy at AARP-Vermont, said she hoped the plan would get the full scrutiny of the state Public Service Board, which regulates utilities. She said she hoped the board would ensure that electric ratepayers don't end up paying for broadband Internet deployment.
Smart grids have been touted as a way to price electricity consumption depending on demand at different times of day, thus encouraging customers to lower costs both to the system and to themselves by limiting power use during times of peak demand. Supporters envision a host of uses, including dishwashers and other household appliances that automatically turn on when they get a signal that demand for power has slackened and the price has dropped.
Shumlin, Public Service Commissioner Elizabeth Miller and other officials said the agreement, which Vermont's 17 smaller municipal and cooperative utilities will be invited to join later, will have three key benefits:
— Cheaper deployment of smart grid technology: Brian Otley, chief operating officer with GMP, said the power companies were looking at spending about $10 million on building the communications infrastructure to support the technology — essentially adding a communications channel to existing power grids. Piggybacking on the VTel system expansion will enable the utilities to install their smart grid communications network for about $6.2 million, a significant savings, Otley said.
— Broadband deployment: The 4G internet technology being used by VTel will both provide better Internet speeds to many areas of Vermont and provide the bandwidth the power companies need to communicate with their smart grid network, Otley and Miller said.
— The larger broadband footprint. Shumlin, like his predecessor Gov. Jim Douglas, both have made statewide access to high-speed Internet service a top priority, and the partnership with the power companies will enable VTel to expand the geographic reach of its network, officials said.
Miller said the Public Service Board had reviewed the project during an informal workshop in January and was on record as supportive. She said her department, which represents consumers before the board, also had given it a thorough review.
"From the department's point of view, it's Vermont frugality at work and it's a win-win for the customers and the companies," Miller said. She said a national broadband plan endorsed at the federal level urged such cooperation between electric and telecom companies. "Vermont will be a leader in getting this done," Miller said.
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