Westar Energy is looking to the federal government to help finance a $40 million “smart grid” that would serve power customers in Lawrence and its immediate surroundings.
The project, dubbed SmartStar Lawrence, would replace all 43,000 electric meters at houses, offices, businesses and commercial locations in the city and portions of rural areas in Douglas County. Nearly $27 million of the financing would go for upgrading computer and software in Topeka, which would be able to accommodate systemwide upgrades in the future.
Westar officials say the new equipment and associated online resources would be expected to help Lawrence residential customers shave as much as 5 percent to 15 percent off their monthly electric bills. Results for commercial customers could vary even more, depending on their usage.
By monitoring their daily usage online, customers could learn how much money they might save by employing a variable thermostat, for example. Or by switching to compact fluorescent light bulbs. Or even by running a clothes dryer in the morning, instead of the heat of the afternoon.
In future years, Westar might choose to use the system to introduce variable pricing, so that customers could pay less for power during non-peak periods. Such “price signals,” spokesman Chad Luce said, could convince customers to voluntarily reduce demand, and therefore ease pressure for building more power plants in the future.
‘Essential factor’
Bill Moore, president and CEO of Topeka-based Westar, said that the Lawrence project would represent a “responsible yet meaningful approach” to deploying smart-grid technology in the company’s service area. Westar chose Lawrence because of its size and wide range of customers, including a mobile student population.
“This technology may be the essential factor in giving customers better choice and control over their energy usage, as well as allowing Westar to introduce programs to help curb demand and costs during times of peak usage,” he said, in a statement.
Westar’s responses to power failures also would become more effective, said Kevin Heimiller, the utility’s director for advanced metering infrastructure. Because the meters automatically would provide two-way communication between the utility and the customer’s home or business, Westar would know precisely which customers did not have power and when, allowing for restoration of service more quickly.
Even setting up an account — a common task this time of year in Lawrence, as thousands of college students change leases and addresses — would be more convenient for all parties involved, said Michelle Delka, who is set to manage information technology for the program in Topeka.
“It’ll take seconds” to switch an account, Delka said, instead of the few days it normally takes to arrange a service call.
Stimulus project
Westar would invest $20 million in the project, with the remaining $20 million expected from the U.S. Department of Energy through a Smart Grid Investment Grant, a federal stimulus program designed to improve efficiencies in the country’s energy system and among individual customers.
Westar’s investment in SmartStar Lawrence would be financed by all 684,000 Westar customers in Kansas, and would not require an immediate rate increase, said Karla Olsen, a Westar spokeswoman. Extending the smart grid throughout the Westar service area would be estimated to cost $150 million, and could be included applications for future rate plans.
While Westar is confident it will receive the full $20 million grant — which would be the maximum possible per applicant competing for a share of $1.32 billion available — the utility would need to reassess its plans if the federal share either was reduced or did not materialize, said Hal Jensen, a member of the SmartStar Lawrence team.
Westar submitted its application Tuesday afternoon, and anticipates hearing back about its prospects within three months. Actual financing could arrive by the beginning of February.
Installation of the new meters and related systems would be expected to take 10 months, with the entire SmartStar Lawrence program to be fully operational within two or three years.
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Skeptic (anonymous) says…
We don't need a $40M infrastructure investment to tell us that we would save money by running the dryer in the morning or using efficient light bulbs.
This must ostensibly be to allow for variable rates during peak and low times. The real question is, will the low usage rates be BELOW our current rates (that is, what I pay at 2 am now will be less than what I pay t 2 am after "smart grid") or will the rate the be same and just peak rates are higher?
Probably the latter.
Bob_Keeshan (anonymous) says…
This is all very confusing. It would appear that $20 million of stimulus funding is going to create several very direct benefits as well as the large amount of work it will take to switch out 43,000 meters.
I hope Westar gets the money before our Kansas delegation in Congress has its way and halts all stimulus funding. I wonder how Sen. Brownback, who wants to be Governor of Kansas, feels about this.
average (anonymous) says…
Well, no, Skeptic. Without smart metering, you *don't* save any money by using a dryer in the morning. (I have $6 worth of linear solar/wind-operated clothes drying tech, myself).
Presumably, Westar would put in peak-time surcharges in lieu of their regular highwayman rate increases for a few years. You don't think rates would go down, do you? Their profit margin is guaranteed by regulation. Must be nice. Other businesses have at least some risk that they might lost money some quarter.
roger_o_thornhill (anonymous) says…
Rates go down? That does not compute! This money will be used to improve business to the benefit of those who run the business. $40mil in tax money so Westar can more efficiently gouge us all even more! Riddle me this someone: If electricity is cheaper at night, why do many (if not all) buildings @ KU turn off their ac overnight just to have them run overtime to catch up in the morning?
consumer1 (anonymous) says…
They have already installed one at my home. They did it last month. Doesn't look much different.
grammaddy (anonymous) says…
Smart Grid has to start somehwere! I'm proud to have it start here!!
mommaeffortx2 (anonymous) says…
Well This is the first I heard it was a done deal not sure how this is going to save money and as for changing my meater well ok but knock on the door forst or you might get a surpise with big teeth.
terrapin2 (anonymous) says…
Logrithmic-This jail time you refer to only has to do with Wittig in a separate case. Has nothing to do with Lake or Westar for that matter. If you committed the same crime you would go to the same type of prison. It has nothing to do with how much money he has or his lawyers. It is based on the jail system itself and the type of crime committed. And for your information, Wittig did spend time in Leavenworth until the government and the board of prisons decided where they had room for him. Most of his time was spent in Sandstone correctional facility in MN. It is a medium security prison. You are right that it is not maximum security, but it is no "club fed". The time he was serving was for a bank fraud conviction in which no money was stolen. No one lost money, and in fact, the bank in question made money. As far as the Westar case goes, you are getting your information from the paper I assume. And you always believe everything in the paper right? The reason he and Lake have not been convicted is because they can't prove they did anything illegal. The so called "technicality" you are referring to is 42 pages of explanation from the 10th circuit court of appeals. It outlines many things, but in essence, they didn't break any laws. I'm not saying anyone has to like the way the company was run, I was a share holder too, but you can't put people in prison for taking advantage of their employment contracts. It is a complete waste of time and tax payer money for the government to retry these men. Ever heard of double jeopardy?
terrapin2 (anonymous) says…
What I'm saying is, Westar has spent a lot of money and FAILED to put them in jail at all. If you read your own post it says the first trial ended in a mistrial and the second was overturned. No jail time has ever, or will ever be spent over the Westar case so get over it. Do you know how hard it is to get a unanimous verdict from a court of appeals in a complicated case? Apparently not. They obviously had legal reasons to throw it out. Maybe you should read the 42 page account more, and the capitol journal and journal world a little less.