Benson utility will receive $32.2 million in national effort to modernize electric meters and distribution system
WASHINGTON – U.S. Rep. Gabrielle Giffords today enthusiastically welcomed President Obama’s announcement that a Benson utility will receive more than $32 million as part of a sweeping federal project to modernize the nation’s aging electric grid.
Southwest Transmission Cooperative Inc., based in Benson, will receive $32,244,485 in federal stimulus funding from the U.S. Department of Energy. The cooperative is among 100 utility projects that will share $3.4 billion in federal money to speed deployment of advanced technology designed to cut energy use and make the electric-power grid more robust.
President Obama announced the awards during a visit today to a solar array in Acadia, Fla. Giffords, a member of the House Science and Technology Committee, is one of Congress’ leading proponents of solar energy.
“This critical investment by the federal government will be key in the large-scale use of solar energy,” Giffords said. “We need a 21st century distribution system to bring the full benefits of solar and other renewable energy sources to as many people as possible. Domestic renewable energy, such as solar, is essential to helping us reduce our dependence on imported foreign energy.”
Southwest Transmission will use the money to upgrade and automate its transmission, distribution and customer service systems. As part of the project, “smart meters” will be installed for more than 44,150 customers. The funding also will pay for installation of communication and digital infrastructure to support a two-way flow of information between the utility and its customers.
Smart meters deliver detailed usage data to customers, including the addition of displays in homes that provide customers with information on their electricity use. Smart meters will allow consumers to view their electricity use in real-time and take advantage of reduced utility prices when there is less demand on the system.
The meters also send additional information to utilities that allow them to improve technology in substations, transformers and other parts of the grid. The Electric Power Research Institute estimates that smart-grid measures could cut electricity use by more than 4 percent by 2030.
The federal award announced today will pay half of Southwest Transmission’s total project cost of $64,488,970. Southwest Transmission Electric Cooperative Inc. was formed in 1999 to distribute electricity generated by Arizona Electric Power.
Southwest operates and maintains a delivery system of 613 miles of transmission lines and 21 substations. It delivers power into areas served by its member cooperatives, located throughout Arizona and southern California.
Its member cooperatives include Arizona Electric Power in Benson, Sulphur Springs Valley Electric in Willcox, Trico Electric in Marana, Graham County Electric in Pima, Duncan Valley Electric in Duncan and Mohave Electric in Bullhead City. It also delivers power for Anza Electric in Anza, Calif.
Two other Arizona electric utilities received more than $60 million under grants announced today. The Salt River Project, based in Tempe, will receive $56,859,359 to add 540,000 smart meters. And the Navajo Tribal Utility Association in Fort Defiance will receive $4,991,750 to install a smart-grid network and data management system for all of its 38,000 customers.
According to Energy Department officials, consumers will see benefits from the projects. The new meters and energy monitoring systems will give consumers better information to manage their energy use and make it easier for power companies to use more renewable energy.
Electricity from wind turbines or solar power systems tend to come in bursts – when the wind is strong or the sun is bright. A digital grid would be better able to handle those ups and downs.
Last month, Giffords introduced the Solar Technology Roadmap Act, which boosts federal research for the development of solar energy technology and authorizes $2.25 billion for solar research over the next five years. The act was approved by the House last week by a 3-to-1 margin.
The project awards announced today come from stimulus funds made available through the American Recovery and Reinvestment Act, which was signed into law on Feb. 17, 2009 as the country faced the greatest economic crisis in a generation.
The act is creating jobs and driving economic growth through a combination of tax relief for individuals and businesses, aid to hard-hit families and state and local governments and funding for science, technology and infrastructure projects across the country. The Council of Economic Advisors estimates that the Recovery Act is responsible for approximately 1 million jobs so far.