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NIST MAKING PROGRESS DEVELOPING STANDARDS FOR ‘SMART GRID’ ELECTRICITY DISTRIBUTION
Witnesses say consumer privacy must be protected

Washington, D.C. – July 1, 2010 - The Subcommittee on Technology and Innovation today held a hearing to examine the progress of the National Institute of Standards and Technology (NIST) in coordinating an effort to develop a common framework and interoperability standards for the next generation electricity delivery system, referred to as a “smart grid.” Witnesses today discussed how standards affect the development of the smart grid, deployment of smart grid technologies, and consumer privacy issues associated with these standards.

 

“On its face, using macro and micro consumer data to optimize the generation and distribution of electricity is a logical step we can take to improve the efficiency of our system,” said Subcommittee Ranking Member Adrian Smith (R-NE).  “However, we should also know at what level of granularity this data will be gathered and used, and who will be using it.  We should also ensure this data is used to enable smarter consumer decision-making, not to force false choices on consumers or to cut off access to electricity.”

 

Modernizing the electric grid to incorporate digital computing, microprocessor-based measurement and control, and communication technology could enable greater two-way communication between consumers and electricity providers.  This could then enable consumers to adjust their electricity usage in response to real-time demand and price information. 

 

While supportive of a more efficient electricity grid, Ranking Member Smith today raised concerns with how we get to that point and at what cost – financially, privacy-wise, and security-wise.  “The American taxpayers must be confident that a smart grid will enhance their daily lives and not infringe on their privacy, freedoms, and personal choice,” Smith noted.

 

The 2009 Stimulus bill provided $4 billion for smart grid technologies, most of which is paying utilities to purchase Advanced Metering Infrastructure, or “smart meters.”  NIST is in the process of developing interoperability standards for energy storage and smart meters. Since these standards have not yet been completed, Ranking Member Smith raised concerns that stimulus dollars dedicated to smart grid could be wasted on infrastructure which won’t meet the forthcoming standards.

 

Along with developing interoperability standards, NIST is also coordinating the development of cyber security standards to ensure the security and privacy of smart grid data and systems. This issue of privacy is one that both Members and witnesses stressed as being critical to the success of a new grid.  Testifying today, Ms. Lillie Coney, Associate Director of the Electronic Privacy Information Center, said “Only by building privacy protection into the Smart Grid from the outset can the NIST defend the privacy interests long protected by our legal system. Thus, NIST should establish comprehensive privacy regulations that limit the collection and use of consumer data.”

 

The following witnesses also testified today before the Subcommittee:

Dr. George Arnold, National Coordinator for Smart Grid, National Institute of Standards and Technology;

Mr. Mason Emnett, Associate Director of the Office of Energy Policy and Innovation, Federal Energy Regulatory Commission;

Mr. John McDonald, Director of Technical Strategy and Policy Development, GE Energy; and

Mr. Conrad Eustis, Director of Retail Technology Development, Portland General Electric.

 

For more information on today’s markup, please visit the GOP Science and Technology Committee website.

 

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