Jay:

Here's a tip: find someone with an hourly meter purchasing directly off the marketplace and ask what their rates are. Then read the RSA agreements on scheduling capacity and then figure out how much more a standard load profile for residences costs than unscheduled hourly service and do the math.

You really are barking up the wrong tree on this discussion and I can't even figure out how these comments are relevant.

These comments show a basic misunderstanding of the role of BGE and smart grid. BGE is not proposing to use smart grids to “ration” electricity or cut anyone’s electricity at peak times. In fact, they are not allowed to. The PSC requires that utilities provide enough electricity to cover their customer’s demand at any time. They cannot choose to turn people’s power off on a whim just because it is hot out. The current PeakRewards program allows them to remotely shut off air conditioners on certain days, but that is a completely voluntary program, and participants are compensated even if their A/C is not turned off.

Under the smart grid proposal, BGE will pay customers if they reduce their demand during “critical hours”, those hot afternoons when the overall system is close to its capacity. However, they don’t require customers to do anything, nor can they compel them to. If you want to run your A/C full blast during these times, BGE can’t do anything about it. Period.

Aside from the direct payments for cutting one’s energy use, we consumers also benefit from reducing the peak demand on the system. The main reason that we should want to cut our use during these critical periods is because the electric generation system has to be able to produce enough power to meet the highest electric load of the year, even if that load only lasts for a few hours. In 2009, the peak demand in the PJM (the marketplace where Maryland utilities buy power) was 126,805 mW. There were only 5 hours in the entire year when the PJM was within 3% of that figure. That means that the last 3,500 mW of power plant capacity in the system (more than double Calvert Cliff’s size) was only needed 0.06% of the time!

The existing electric grid can handle some increase in the total amount of power used – the average PJM load in 2009 was only 61% of the maximum. If the total power used went up by 10%, existing plants could run more often to meet the demand. But if peak demand went up 10%, then either new power plants have to be built just to run for those few hours a year, or we would have rolling blackouts. Neither is a good option.

The best way to keep costs out of the system is to shave the power needed during those few critical hours each year. Smart grid is only the first step to help curtail the growth in peak demand. Consumer education, enabling technology, and eventual replacement of inefficient appliances are all needed to keep peak demand from growing. It is a lot cheaper for us consumers to cut our energy use for a few hours a year than face rolling blackouts or pay for multi-billion power plants that are only on a few hours a year.

TM - you are right in pointing out electricity supply and regulation is one big mess. So slapping Smart Meters on houses is just stupid. There will be so many limitations put on their use now that it's just not worth now. A lack of planning and selling the electricity user base has backfired and now there will be many many people against Smart Metering and any attempt to close the loop between generation and consumption.

BGE/Constellation (for all intents and purposes other than taxes, they are one and the same) has PROVEN time and time again that they value their profits over any benefit to the people they are allegedly in existence to serve (remember what the term "public utitlity" USED to mean). ANYTHING they propose is merely to increase their profits - NOT to benefit the public! There was a time that the PSC used its proper authority to make sure that utilities existed to serve the interests of the public! No one asked BGE to provide gas and electric to the citizens of Maryland - if they don't like it, too bad! We've all paid many times over for Mayo Shattucks tens of millions in bonuses!

What benefit will this be to those of us who for YEARS have done EVERYTHING in our power to minimize our electric use to the point where there is NO WAY to get it lower other than just plain not using it at all?

Even if I tried I could not lower my electric by 2% to 5%. Its not possible other than to install very expensive PV or solar water heat.

What savings then will my family see?

Much of the proposed savings that will be enabled by Smart Meters will be a change in the pricing during peak periods. In this case, a consumer would not be charged more during peak times (hot summer days) if they did not reduce their consumption, but they would receive credits if they did. In my opinion, that is a win-win. If you do nothing, you will not be penalized, but if you reduce your consumption, you save money.

A consumer who changes nothing but currently uses power during peak periods will benefit as long as some fraction of people do cut their use at that time. If I do nothing, but 1% is cut off of peak demand, that's another generation unit that doesn't have to be built as demand expands. Building new capacity is passed along to all consumers to some extent.

Flattening the daily cycle of electricity use in the region (reducing the gap between the minimum in the wee hours of the morning and the afternoon or so maximum) means more of 'total' power is coming from cheaper base load generators, so everyone pays less - even those who don't reduce their peak demand.

I hate to sound so skeptical but I'm doing all I can to save money and I never see a difference in my BGE bill and think this smart meter thing is just another empty promise.

I already signed up for all there current energy savings programs BUT my bill keeps going up. I've heard over and over that BGE is finding ways to cut my bill but it never actually happens.

I saw in my BGE bill they were promoting the Ravens, may be that's why my bill is going up to pay for Ray Lewis salary! I guyess my BGE bill is paying for their skybox too?

Good lord, is the Tea Party getting into utility regulation now? This knee-jerk "big brother" thing is really getting out of hand. And all these claims the BGE is now going to start telling us when we can use electricity seem to be cut from the same mold as the (false) claims that health care regulation leads to death panels.