Smart Grid

Smart Grid is a combination of equipment, communications and processes that utilities use to enhance internal operations and customer service. Smart Grid includes smart meters, distribution system automation, demand response and other features that provide information for customers to lower their energy use. Many believe that AMI (Advanced Metering Infrastructure) - simply called "smart meters" - is synonymous with Smart Grid, but that is not fully accurate. There are many Smart Grid projects that do not involve meters at all.

Smart Grid includes smart meters under its umbrella, but it also includes switches, monitors, analysis software, and other communications equipment between the utility and customers. The basic concept of Smart Grid is to add monitoring, analysis, control, and communication capabilities to the national electrical delivery system to maximize its capabilities while simultaneously helping consumers to control their energy consumption.


SMART GRID DEMONSTRATION

Smart Meter

The Memphis Light, Gas and Water electric smart meter replaces the previous mechanical electric meter. Aside from its digital display, the smart meter looks very similar to the old meter, but it has many features that benefit customers and MLGW. The old meter was read manually, once per billing period, to calculate the customer's MLGW bill. The smart meter records electric information every 15 minutes, stores it and communicates that string of information to MLGW once per day. MLGW imports that information for monthly billing and processes it for use by new customer tools offered through the Smart Grid Demonstration.

The new smart meter's digital display is easy for customers to read. The display automatically alternates between two modes, changing approximately every 5 seconds:

"Segment check mode" shows all 8s across the display and serves to verify that all line segments of the numeric display panel are working.

"Consumption mode" reflects cumulative electricity use since the meter was installed. It measures in kilowatt-hours (kWh), which is the same as 1,000 watt-hours.

This example shows consumption of 5,063 kWh.

Here's how to read the smart meter and calculate the electricity cost:

1. Note the digital reading from the smart meter display, as well as the date and time.

2. Wait an hour or more, then repeat step 1.

3. Subtract the older reading from the newer reading to calculate the consumption, in kWh, during that time period.

4. Find the applicable electric cost for each billing period. There are two components: energy charge and Fuel Cost Adjustment. Look for the current seasonal period in the energy charge section of the residential rate (Schedule RS) and add it to the amount shown for that period's Fuel Cost Adjustment listed under TVA FCA. The sum is the cost per kWh consumed.

5. Multiply consumption (step 3) by cost per kWh (step 4), to calculate the electric consumption cost. If you want to calculate total electricity charges for the billing period, add the $9.60 monthly customer service charge.


In Home Display

Half of Smart Grid Demonstration participants also will test the benefits of a free In Home Display. The display communicates wirelessly with the smart meter, providing almost instantaneous feedback on each participant’s electricity status.

The IHD has several screens to show consumption, demand, cost, trends and other information, plus capabilities to receive customized messages from MLGW. The device has a battery and a plug-in charger, so it can be carried throughout the house, placed on a table or countertop, or hung on a wall for easy viewing.

MLGW began distributing In Home Displays in June 2011 with plans to complete in July. If you haven't received yours yet, the person assigned to deliver in your area will contact you soon. Download the owner's manual.






My Account Website

MLGW expanded its popular My Account website to include new tools that help Smart Grid Demonstration participants track electricity usage, power demand and electricity costs online. The meter information is uploaded once a day and will grow to contain two years of smart meter history for detailed analysis. With smart meter highlights and multiple graphs, participants see how their electricity usage changes throughout the day and month, providing greater information for better control over when and how electricity is used. Click here to see example graphs and meter highlights.

To access smart meter information and graphs, participants login to My Account at www.mlgw.com using the personal username and password. (Not a My Account user? Register today at www.mlgw.com)


Pilot Time-of-Use Rate Option

MLGW presented details of its Temporary Pilot Time-of-Use Residential Rate option to the MLGW Board in April, with presentations to the Memphis City Council beginning in May. (See slides here) Since a smart meter is required, the optional rate will only be available to participants of the Smart Grid Demonstration. Among Smart Grid Demonstration participants, 85% expressed interest in Time-of-Use rates when completing the volunteer application, so we're happy to make this new voluntary rate option available.

The Time-of-Use rate enables interested participants to pay less for electricity used during off-peak hours (when electricity demand and costs are lower), while paying more for electricity used during on-peak hours (when demand and costs are higher). The rate would be effective October 2011 through September 2012.





MLGW added a Rate Comparison Calculator to the My Account web tools June 30 to help participants determine whether adopting the optional Time-of-Use rate would be beneficial based on your household’s electricity use and your ability to change consumption patterns, either by using less electricity or using it at different times. While the Time-of-Use rate may not be beneficial for everyone, it will provide money savings for many households. To access the Rate Comparison Calculator, login to My Account at www.mlgw.com.  Smart Grid Demonstration participants have through Labor Day, 9/5/2011, to enroll in the optional rate pilot using the web form accessible through My Account. The Time-of-Use rate will be effective 10/1/2011 through 9/30/2012.


New Electricity Terms

Time-of-Use rates are common in other parts of the U.S., but new to the Mid-South. The concept requires understanding a few terms that also may be new to you.

• Conservation: An action that results in less energy being consumed. Examples include: raising your thermostat for cooling, turning off unnecessary lights and electronics, closing the exterior door when the furnace or air conditioner is operating, and closing the refrigerator door quickly
   
• Efficiency: A purchase of equipment, appliance or material that uses less energy than the unit it replaces. Examples: replacing your old air conditioning system with a newer version, adding attic insulation, replacing standard incandescent lights bulbs with compact fluorescent light bulbs, and replacing windows and doors with more energy-efficient ones. Buying an Energy Star refrigerator would also apply, but only if the old refrigerator is discarded. (Moving the old one to the garage or utility room actually consumes more electricity, so consider whether the convenience of two units is worth the higher MLGW bill!)
   
• Demand Response, also known as Load Shifting: An action that results in changing the time during which electricity is consumed, often without changing the total amount of electricity consumed. Typically involves moving consumption from on-peak periods (when demand and costs are higher) to off-peak periods (when demand and costs are lower). Household examples: running the dishwasher at bedtime instead of immediately after dinner or washing and drying clothes on weekends instead of weekday afternoons. Many local businesses, organizations and schools participate in the TVA/EnerNOC Demand Response program, where they adjust thermostats and lighting systems, change production schedules and make other operational decisions when alerted by TVA of the need to lower peak demand during specific hours on specific days. Find tips to maximize your load shifting strategy for Time-of-Use rates.
   
• Generation Costs: The cost of generating electricity varies on a daily—and even hourly—basis, depending on the fuel source, total electric demand and weather. MLGW's power generator, TVA, actually owns generation plants that operate for only a few hours a year in order to meet peak demand. Peak demand typically occurs on weekday afternoons in the Summer when temperatures are highest, driving air conditioning use in both homes and businesses. (A smaller peak demand occurs on Winter weekday mornings and is attributed to electricity use for heating and water heating across the region.) When TVA generation isn’t enough to meet peak demand, TVA also buys power from other suppliers. Learn more about TVA generation and purchased power here.
   
• MLGW's retail electric rates have always reflected the average cost of TVA power, whereas the Time-of-Use rate option recognizes when power is needed and rewards customers who consume less electricity during expensive on-peak hours and more electricity during off-peak hours.

Smart Grid Questions

MLGW will continue to update its project website, www.mlgw.com/smartgrid, with news and information about the Smart Grid Demonstration. For questions about the project, contact the team at SmartGrid@mlgw.org. For faster service with billing and general service requests, please continue to contact MLGW's Customer Care Center at (901) 544-6549 or MLGWCustomerCare@mlgw.org.

You can also visit MLGW's online Smart Grid Q & A page for more information.